WSLCB Approves Filing of I-502 Proposed Rules
Since the Fed's announced last week that they have zero intention to sue Washington State (and Colorado) over legalizing Marijuana growing, processing, retailing, and usage, The Washington State Liquor Control Board (WSLCB) has quickly moved forward with plans to issues licenses to businesses in the State.
Today the WSLCB issued the following press release:
Board Approves Filing of Proposed Rules to Implement Initiative 502
Recreational marijuana market to be tightly regulated to prevent diversion, impact to minors
OLYMPIA – The Washington State Liquor Control Board (Board) today approved the filing of proposed supplemental rules that, if ultimately enacted, will help govern Washington State’s system of producing, processing and retailing recreational marijuana. The Board earlier this summer filed proposed rules on July 3, 2013. The Board chose to revise and re-file its rules after receiving public input at five public hearings across Washington.
“These rules fulfill the public expectation of creating a tightly-regulated and controlled system while providing reasonable access to participation in the market, said Board Chair Sharon Foster. “Importantly, we believe these rules meet the eight federal government enforcement priorities within Thursday’s guidance memo from the Department of Justice.”
Key Public Safety Elements
Public safety is the top priority of the Washington State Liquor Control Board.
· All grows must meet strictly controlled on-site security requirements;
· Strict surveillance and transportation requirements;
· Robust traceability software system that will track inventory from start to sale;
· Criminal background checks on all license applicants;
· Tough penalty guidelines for public safety violations including loss of license;
· Restricting certain advertising that may be targeted at children.
Key Consumer Safety Elements
The proposed rules provide a heightened level of consumer safety that has not existed previously.
· Packaging and label requirements including dosage and warnings;
· Child-resistant packaging for marijuana in solid and liquid forms;
· Only lab tested and approved products will be available;
· Defined serving sizes and package limits on marijuana in solid form;
· Store signage requirements to educate customers.
The press release includes the following rules revisions:
Revisions to the Rules
Below are selected highlights found in the revised rules.
· Limits the total amount of marijuana to be produced at 40 metric tons
· Sets the maximum amount of space for marijuana production at two million square feet
· Creates three production tiers based on square footage
o Tier 1 – less than 2000 square feet
o Tier 2 – 2000 to 10,000 square feet
o Tier 3 – 10,000 to 30,000 square feet
Market Control Limits
· Limited any entity and/or principals within any entity to three producer or processor licenses
· Limited any principal and or entity to no more than three retail licenses with no multiple location licensee allowed more than 33 percent of the allowed licenses in any county or city
On-Site Product Limits
· Established the maximum amount of marijuana allowed on a producer licensee’s premises at any time based on the type of grow operation (indoor, outdoor, greenhouse)
1,000 Foot Buffer Measurement
· Changed the way the 1,000 foot buffer is measured from to “along the most direct route over or across established public walks, streets, or other public passageway between the proposed building/business locations to the perimeter of the grounds of the entities listed”
· Added a definition for “plant canopy” to clarify what area is considered in the square footage calculation for marijuana producers
· Revised the definition of “Public Park” to include parks owned or managed by a metropolitan park district. Clarified that trails are not included in the definition of “Public Park ”
· Revised the definition of “recreation center or facility.” Added the language “owned and/or managed by a charitable non-profit organization, city, county, state, or federal government”
· Added language requiring all advertising and labels of useable marijuana and marijuana infused products may not contain any statement or illustration that is false or misleading.
The number of retail stores has also been clarified:
In addition to the revisions to the rules, the Board today also identified the number and allocation of retail stores. Per Initiative 502, the WSLCB applied a method that allocates retail store locations using Office of Financial Management (OFM) population with a cap on the number of retail stores per county.
Using OFM population data as well as adult consumption data supplied by the state’s marijuana consultant – BOTEC Analysis Corporation -- the Board allocated a maximum of 334 outlets statewide. The most populous cities within the county are allocated a proportionate number of stores and at-large stores available to serve other areas of the county.
December 6, 2012 Effective date of new law
September 4, 2013 File Supplemental CR 102 with revised proposed rules
October 9, 2013 Public hearing(s) on proposed rules (time and location TBD)
October 16, 2013 Board adopts or rejects proposed rules (CR 103)
November 16, 2013 Rules become effective
November 18, 2013 Begin accepting applications for all three licenses (30-day window)
December 1, 2013 Deadline for rules to be complete (as mandated by law)
December 18, 2013 30-day window closes for producer, processor and retailer license applications
The WSLCB will hold more public hearings in the future which we'll report to you here as they break, or you can get info straight from the WSLCB website:
One or more public hearings on the proposed rules will be scheduled soon. The WSLCB will post the dates and locations on its website at www.liq.wa.gov
Note that December 18 2013 is when the window closes for businesses to apply for a Cannabis business application.
I'd advise that you make sure you have all your ducks in a row with respect to compliance, so be sure to send a message if you have any questions or concerns.