Proposed Rules 9-4-13

7/30/2019 Proposed Rules 9-4-13

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Chapter 314-55 WACMARIJUANA LICENSES, APPLICATION PROCESS, REQUIREMENTS, AND REPORTING

NEW SECTI ON

WAC 314-55-005 What is the purpose of this chapter? The pur poseof t hi s chapt er i s t o out l i ne t he appl i cat i on pr ocess, qual i f i cat i onsand requi r ement s t o obt ai n and mai nt ai n a mar i j uana l i cense and ther epor t i ng r equi r ement s f or a mar i j uana l i censee.

NEW SECTI ON

WAC 314-55-010 Definitions. Fol l owi ng ar e def i ni t i ons f or t hepur pose of t hi s chapt er . Ot her def i ni t i ons ar e i n RCW 69. 50. 101.

( 1) "Appl i cant " or "mar i j uana l i cense appl i cant " means any per sonor busi ness ent i t y who i s consi der ed by t he boar d as a t r ue par t y ofi nt er est i n a mar i j uana l i cense, as out l i ned i n WAC 314- 55- 035.

( 2) "Batch" means a quant i t y of mar i j uana- i nf used pr oduct con-t ai ni ng mat er i al f r om one or mor e l ot s of mar i j uana.

( 3) "Busi ness name" or " t r ade name" means t he name of a l i censedbusi ness as used by t he l i censee on si gns and adver t i si ng.

( 4) "Chi l d car e cent er " means an ent i t y t hat r egul ar l y pr ovi deschi l d day car e and ear l y l ear ni ng ser vi ces f or a gr oup of chi l dr en f orper i ods of l ess t han t went y- f our hour s l i censed by t he Washi ngt onst at e depar t ment of ear l y l ear ni ng under chapt er 170- 295 WAC.

( 5) "El ement ar y school " means a school f or ear l y educat i on t hat

pr ovi des t he f i r st f our t o ei ght year s of basi c educat i on and r ecog-ni zed by t he Washi ngt on st at e super i nt endent of publ i c i nst r uct i on.( 6) "Fi nanci er " means any per son or ent i t y, ot her t han a banki ng

i nst i t ut i on, t hat has made or wi l l make an i nvest ment i n t he l i censedbusi ness. A f i nanci er can be a per son or ent i t y t hat pr ovi des money asa gi f t , l oans money to t he appl i cant / busi ness and expect s t o be pai dback t he amount of t he l oan wi t h or wi t hout i nt er est , or expect s anyper cent age of t he pr of i t s f r om t he busi ness i n exchange f or a l oan orexper t i se.

( 7) "Game arcade" means an ent ert ai nment venue f eat ur i ng pr i mar i -l y vi deo games, si mul at ors, and/ or ot her amusement devi ces where per -sons under t went y- one year s of age ar e not r est r i ct ed.

( 8) "Li br ar y" means an or gani zed col l ect i on of r esour ces made ac-

cessi bl e t o t he publ i c f or r ef er ence or bor r owi ng suppor t ed wi t h moneyder i ved f r om t axat i on.

( 9) " Li censee" or "mar i j uana l i censee" means any per son or ent i t yt hat hol ds a mar i j uana l i cense, or any per son or ent i t y who i s a t r uepar t y of i nt er est i n a mar i j uana l i cense, as out l i ned i n WAC314- 55- 035.

( 10) "Lot " means ei t her of t he f ol l owi ng:( a) The f l ower s f r om one or mor e mar i j uana pl ant s of t he same

st r ai n. A si ngl e l ot of f l ower s cannot wei gh mor e t han f i ve pounds; or

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( b) The t r i m, l eaves, or ot her pl ant mat t er f r om one or mor e mar -i j uana pl ant s. A si ngl e l ot of t r i m, l eaves, or ot her pl ant mat t ercannot wei gh more t han f i f t een pounds.

( 11) "Mar i j uana st r ai n" means a pur e br eed or hybr i d var i et y ofCannabi s ref l ect i ng si mi l ar or i dent i cal combi nat i ons of pr oper t i essuch as appear ance, t ast e, col or , smel l , cannabi noi d pr of i l e, and po-t ency.

( 12) "Member" means a pr i nci pal or governi ng person of a gi ven

ent i t y, i ncl udi ng but not l i mi t ed t o: LLC member / manager , pr esi dent ,vi ce- pr esi dent , secret ar y, t r easur er , CEO, di r ect or , st ockhol der ,par t ner , gener al par t ner , l i mi t ed par t ner . Thi s i ncl udes al l spousesof al l pr i nci pal s or gover ni ng per sons named i n t hi s def i ni t i on andr ef erenced i n WAC 314- 55- 035.

( 13) "Pest i ci de" means, but i s not l i mi t ed t o: ( a) Any subst anceor mi xt ur e of subst ances i nt ended t o pr event , dest r oy, cont r ol , r epel ,or mi t i gat e any i nsect , r odent , snai l , sl ug, f ungus, weed, and anyot her f or m of pl ant or ani mal l i f e or vi r us, except vi r us on or i n al i vi ng per son or ot her ani mal whi ch i s nor mal l y consi der ed t o be apest ; ( b) any subst ance or mi xt ur e of subst ances i nt ended t o be usedas a pl ant r egul at or , def ol i ant , or desi ccant ; and ( c) any spr ay adj u-vant . Pest i ci des i ncl ude subst ances commonl y ref er r ed t o as her bi -ci des, f ungi ci des, and i nsect i ci des.

( 14) "Per i meter " means a pr oper t y l i ne t hat encl oses an area.( 15) "Pl ant canopy" means t he square f oot age dedi cated t o l i ve

pl ant pr oduct i on, such as mai nt ai n mother pl ant s, pr opagat i ng pl ant sf r om seed t o pl ant t i ssue, cl ones, veget at i ve or f l ower i ng ar ea. Pl antcanopy does not i ncl ude areas such as space used f or t he st orage off er t i l i zer s, pest i ci des, or ot her pr oducts, quar ant i ne, of f i ce space,et c.

( 16) "Pl aygr ound" means a publ i c out door r ecr eat i on ar ea f orchi l dr en, usual l y equi pped wi t h swi ngs, sl i des, and ot her pl aygr oundequi pment , owned and/ or managed by a ci t y, count y, st ate, or f eder algover nment .

( 17) "Publ i c park" means an area of l and f or t he enj oyment of t hepubl i c, havi ng f aci l i t i es f or r est and/ or r ecreat i on, such as a base-bal l di amond or basket bal l cour t , owned and/ or managed by a ci t y,count y, st at e, f eder al gover nment , or met r opol i t an par k di st r i ct . Pub-l i c par k does not i ncl ude t r ai l s.

( 18) "Publ i c t r ansi t cent er " means a f aci l i t y l ocat ed out si de oft he publ i c r i ght of way t hat i s owned and managed by a t r ansi t agencyor ci t y, count y, st at e, or f eder al gover nment f or t he expr ess pur poseof st agi ng peopl e and vehi cl es wher e sever al bus or ot her t r ansi tr out es conver ge. They ser ve as ef f i ci ent hubs t o al l ow bus r i der s f r omvar i ous l ocat i ons t o assembl e at a cent r al poi nt t o t ake advant age ofexpr ess t r i ps or ot her r out e t o r out e t r ansf er s.

( 19) "Recr eat i on cent er or f aci l i t y" means a super vi sed cent er

t hat pr ovi des a br oad r ange of act i vi t i es and event s i nt ended pr i mar i -l y f or use by per sons under t went y- one years of age, owned and/ or man-aged by a char i t abl e nonpr of i t or gani zat i on, ci t y, count y, st at e, orf ederal government .

( 20) "Resi dence" means a person' s addr ess where he or she physi -cal l y r esi des and mai nt ai ns hi s or her abode.

( 21) "Secondary school " means a hi gh and/ or mi ddl e school : Aschool f or st udent s who have compl et ed t hei r pr i mary educat i on, usual -l y at t ended by chi l dr en i n gr ades seven t o t wel ve and r ecogni zed byt he Washi ngt on st at e super i nt endent of publ i c i nst r uct i on.

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( 22) "Uni t " means an i ndi vi dual l y packaged mar i j uana- i nf used sol -i d or l i qui d pr oduct meant t o be eaten or swal l owed, not t o exceed t enservi ngs or one hundr ed mi l l i gr ams of act i ve t et r ahydr ocannabi nol( THC) , or Del t a 9.

NEW SECTI ON

WAC 314-55-015 General information about marijuana licenses. ( 1)A per son or ent i t y must meet cer t ai n qual i f i cat i ons t o recei ve a mar i -j uana l i cense, whi ch ar e cont i nui ng qual i f i cat i ons i n or der t o mai n-t ai n t he l i cense.

( 2) Al l appl i cant s and empl oyees wor ki ng i n each l i censed est ab-l i shment must be at l east t went y- one years of age.

( 3) Mi nor s r est r i ct ed si gns must be post ed at al l mar i j uana l i -censed premi ses.

( 4) A mar i j uana l i cense appl i cant may not exer ci se any of t hepr i vi l eges of a mar i j uana l i cense unt i l t he boar d appr oves t he l i censeappl i cat i on.

( 5) The boar d wi l l not appr ove any mar i j uana l i cense f or a l oca-t i on wher e l aw enf or cement access, wi t hout not i ce or cause, i s l i mi -t ed. Thi s i ncl udes a per sonal r esi dence.

( 6) The boar d wi l l not appr ove any mar i j uana l i cense f or a l oca-t i on on f eder al l ands.

( 7) The boar d wi l l not appr ove any mar i j uana r et ai l er l i cense f ora l ocat i on wi t hi n anot her busi ness. Mor e t han one l i cense coul d be l o-cat ed i n t he same bui l di ng i f each l i censee has t hei r own ar ea separ a-t ed by f ul l wal l s wi t h thei r own ent r ance. Product may not be commi n-gl ed.

( 8) Ever y mar i j uana l i censee must post and keep post ed i t s l i -cense, or l i censes, and any addi t i onal cor r espondence cont ai ni ng con-

di t i ons and r est r i ct i ons i mposed by t he boar d i n a conspi cuous pl aceon t he premi ses.( 9) I n appr ovi ng a mar i j uana l i cense, t he boar d r eser ves t he

r i ght t o i mpose speci al condi t i ons as t o t he i nvol vement i n t he oper a-t i ons of t he l i censed busi ness of any f or mer l i censees, t hei r f or merempl oyees, or any per son who does not qual i f y f or a mar i j uana l i cense.

( 10) A mar i j uana pr ocessor or r et ai l er l i censed by t he boar dshal l conduct t he pr ocessi ng, st or age, and sal e of mar i j uana- i nf usedpr oduct s usi ng sani t ar y pr act i ces and ensur e f aci l i t i es ar e const r uc-t ed, kept , and mai nt ai ned i n a cl ean and sani t ar y condi t i on i n accor d-ance wi t h rul es and as pr escr i bed by t he Washi ngt on st at e depar t mentof agr i cul t ure under chapters 16- 165 and 16- 167 WAC.

( 11) Mar i j uana l i censees may not al l ow t he consumpt i on of mar i -

j uana or mar i j uana- i nf used product s on t he l i censed premi ses.

NEW SECTI ON

WAC 314-55-020 Marijuana license qualifications and applicationprocess. Each mar i j uana l i cense appl i cat i on i s uni que and i nvest i gat edi ndi vi dual l y. The boar d may i nqui r e and r equest document s r egardi ngal l mat t er s i n connect i on wi t h t he mar i j uana l i cense appl i cat i on. The

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appl i cat i on r equi r ement s f or a mar i j uana l i cense i ncl ude, but ar e notnecessar i l y l i mi t ed t o, t he f ol l owi ng:

( 1) Per RCW 69. 50. 331, t he boar d shal l send a not i ce t o ci t i esand count i es, and may send a not i ce t o t r i bal gover nment s or por t au-t hor i t i es r egar di ng t he mar i j uana l i cense appl i cat i on. The l ocal au-t hor i t y has t went y days t o r espond wi t h a recommendat i on t o appr ove oran obj ect i on t o t he appl i cant , l ocat i on, or bot h.

( 2) The boar d wi l l ver i f y t hat t he pr oposed busi ness meet s t he

mi ni mum r equi r ement s f or t he t ype of mar i j uana l i cense request ed.( 3) The boar d wi l l conduct an i nvest i gat i on of t he appl i cant s'

cr i mi nal hi st or y and admi ni st r at i ve vi ol at i on hi st or y, per WAC314- 55- 040 and 314- 55- 045.

( a) The cr i mi nal hi st or y backgr ound check wi l l consi st of compl e-t i on of a per sonal / cr i mi nal hi st or y f or m pr ovi ded by t he boar d andsubmi ssi on of f i nger pr i nt s t o a vendor appr oved by t he boar d. The ap-pl i cant wi l l be r esponsi bl e f or payi ng al l f ees r equi r ed by t he vendorf or f i nger pr i nt i ng. These f i nger pr i nt s wi l l be submi t t ed t o t he Wash-i ngt on st at e pat r ol and t he Feder al Bur eau of I nvest i gat i on f or com-par i son t o thei r cri mi nal r ecor ds. The appl i cant wi l l be r esponsi bl ef or payi ng al l f ees r equi r ed by t he Washi ngt on st at e pat r ol and t heFeder al Bur eau of I nvest i gat i on.

( b) Fi nanci er s wi l l al so be subj ect t o cri mi nal hi st or y i nvest i -gat i ons equi val ent t o t hat of t he l i cense appl i cant . Fi nanci er s wi l lal so be r esponsi bl e f or payi ng al l f ees r equi r ed f or t he cr i mi nal hi s-t ory check. Fi nanci er s must meet t he t hr ee mont h resi dency r equi r e-ment .

( 4) The boar d wi l l conduct a f i nanci al i nvest i gat i on i n or der t over i f y t he sour ce of f unds used f or t he acqui si t i on and st ar t up of t hebusi ness, t he appl i cant s' r i ght t o t he r eal and per sonal pr oper t y, andt o ver i f y t he t r ue par t y( i es) of i nt er est .

( 5) The boar d may r equi r e a demonst r at i on by t he appl i cant t hatt hey ar e f ami l i ar wi t h mar i j uana l aws and r ul es.

( 6) The boar d may conduct a f i nal i nspect i on of t he pr oposed l i -

censed busi ness, i n or der t o det er mi ne i f t he appl i cant has compl i edwi t h al l t he r equi r ement s of t he l i cense request ed.( 7) Per RCW 69. 50. 331 ( 1) ( b) , al l appl i cant s appl yi ng f or a mar i -

j uana l i cense must have r esi ded i n t he st at e of Washi ngt on f or atl east t hr ee mont hs pr i or t o appl i cat i on f or a mar i j uana l i cense. Al lpar t ner shi ps, empl oyee cooper at i ves, associ at i ons, nonpr of i t cor por a-t i ons, cor por at i ons and l i mi t ed l i abi l i t y compani es appl yi ng f or amar i j uana l i cense must be f ormed i n Washi ngt on. Al l members must al someet t he t hree mont h resi dency r equi r ement . Managers or agent s whomanage a l i censee' s pl ace of busi ness must al so meet t he t hr ee mont hr esi dency r equi r ement .

( 8) Submi ssi on of an oper at i ng pl an t hat demonst r at es t he appl i -cant i s qual i f i ed t o hol d t he mar i j uana l i cense appl i ed f or t o the

sat i sf act i on of t he boar d. The oper at i ng pl an shal l i ncl ude t he f ol -l owi ng el ement s i n accor dance wi t h t he appl i cabl e st andar ds i n t heWashi ngt on Admi ni st r at i ve Code ( WAC) .

( 9) As par t of t he appl i cat i on pr ocess, each appl i cant must sub-mi t i n a f or mat suppl i ed by t he boar d an oper at i ng pl an det ai l i ng t hef ol l owi ng as i t per t ai ns t o t he l i cense t ype bei ng sought . Thi s oper -at i ng pl an must al so i ncl ude a f l oor pl an or si t e pl an dr awn t o scal ewhi ch i l l ust r at es t he ent i r e oper at i on bei ng pr oposed. The oper at i ngpl an must i ncl ude the f ol l owi ng i nf or mat i on:

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Producer Processor Retailer

Security Security Security

Traceability Traceability Traceability

Employee qualifications and training Employee qualifications and training Employee qualifications and training

Transportation of product includingpackaging of product for transportation

Transportation of product

Destruction of waste product Destruction of waste product Destruction of waste product

Description of growing operation in-clude growing media, size of growspace allocated for plant production,space allocated for any other businessactivity, description of all equipmentused in the production process, and alist of soil amendments, fertilizers, oth-er crop production aids, or pesticides,utilized in the production process

Description of the types of products tobe processed at this location togetherwith a complete description of allequipment and solvents, gases, chemi-cals and other compounds used to cre-ate extracts and for processing of mar-ijuana-infused products

Testing procedures and protocols Testing procedures and protocols

Description of the types of products tobe processed at this location togetherwith a complete description of pro-cessing of marijuana-infused products

Description of packaging and labelingof products to be processed

What array of products are to be soldand how are the products to be dis-played to consumers

Af t er obt ai ni ng a l i cense, t he l i cense hol der must not i f y t heboar d i n advance of any subst ant i al change i n t hei r oper at i ng pl an.Dependi ng on t he degree of change, pr i or approval may be r equi r ed be-f ore t he change i s i mpl ement ed.

( 10) Appl i cant s appl yi ng f or a mar i j uana l i cense must be cur r enti n any t ax obl i gat i ons t o t he Washi ngt on st ate depart ment of r evenue,as an i ndi vi dual or as par t of any ent i t y i n whi ch t hey have an owner -

shi p i nt er est . Appl i cant s must si gn an at t est at i on t hat , under penal t yof deni al or l oss of l i censur e, t hat r epr esent at i on i s cor r ect.( 11) The i ssuance or appr oval of a l i cense shal l not be const r ued

as a l i cense f or , or an appr oval of , any vi ol at i ons of l ocal r ul es oror di nances i ncl udi ng, but not l i mi t ed t o: Bui l di ng and f i r e codes,zoni ng or di nances, and busi ness l i censi ng r equi r ement s.

( 12) Upon f ai l ur e t o r espond t o t he boar d l i censi ng and r egul a-t i on di vi si on' s r equest s f or i nf or mat i on wi t hi n t he t i mel i ne pr ovi ded,t he appl i cat i on may be admi ni st r at i vel y cl osed or deni al of t he appl i -cat i on wi l l be sought .

NEW SECTI ON

WAC 314-55-035 What persons or entities have to qualify for amarijuana license? A mar i j uana l i cense must be i ssued i n t he name(s)of t he t r ue par t y( i es) of i nt er est .

( 1) True parties of interest - For pur poses of t hi s t i t l e, "t r uepar t y of i nt er est " means:

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True party of interest Persons to be qualified

Sole proprietorship Sole proprietor and spouse.

General partnership All partners and spouses.

Limited partnership,limited liability partner-ship, or limited liabilitylimited partnership

All general partners andtheir spouses.

All limited partners andspouses.

Limited liability compa-ny

All members and theirspouses.

All managers and theirspouses.

Privately held corpora-tion

All corporate officers(or persons with equiva-lent title) and theirspouses.

All stockholders andtheir spouses.

Publicly held corpora-tion

All corporate officers (or per-sons with equivalent title)and their spouses.

All stockholders and theirspouses.

Multilevel ownershipstructures

All persons and entities thatmake up the ownership struc-ture (and their spouses).

Any entity or person(inclusive offinanciers)that are expecting a per-centage of the profits inexchange for a mone-tary loan or expertise.

Any entity or person who isin receipt of, or has the rightto receive, a percentage ofthe gross or net profit fromthe licensed business duringany full or partial calendar orfiscal year.

Any entity or person who ex-ercises control over the li-

censed business in exchangefor money or expertise.

For the purposes of this chap-ter:

"Gross profit" includesthe entire gross receiptsfrom all sales and serv-ices made in, upon, orfrom the licensed busi-ness.

"Net profit" meansgross sales minus costof goods sold.

Nonprofit corporations All individuals and spouses,and entities having member-ship rights in accordancewith the provisions of the ar-ticles of incorporation or thebylaws.

( 2) For pur poses of t hi s sect i on, "t r ue par t y of i nt er est " doesnot mean:

( a) A per son or ent i t y recei vi ng r easonabl e payment f or r ent on af i xed basi s under a bona f i de l ease or r ent al obl i gat i on, unl ess t he

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l essor or proper t y manager exer ci ses cont r ol over or par t i ci pat es i nt he management of t he busi ness.

( b) A per son who r ecei ves a bonus as an empl oyee, i f : The empl oy-ee i s on a f i xed wage or sal ary and t he bonus i s not more than t went y-f i ve per cent of t he empl oyee' s prebonus annual compensat i on; or t hebonus i s based on a wr i t t en i ncent i ve/ bonus pr ogr am t hat i s not out oft he or di nar y f or t he ser vi ces r ender ed.

( c) A per son or ent i t y cont r act i ng wi t h t he appl i cant ( s) t o sel l

t he pr oper t y, unl ess t he cont r act hol der exer ci ses cont r ol over orpart i ci pates i n t he management of t he l i censed busi ness.

( 3) Financiers - The boar d wi l l conduct a f i nanci al i nvest i gat i onas wel l as a cr i mi nal backgr ound of f i nanci er s.

( 4) Persons who exercise control of business - The boar d wi l lconduct an i nvest i gat i on of any per son or ent i t y who exer ci ses anycont r ol over t he appl i cant ' s busi ness oper at i ons. Thi s may i ncl udebot h a f i nanci al i nvest i gat i on and/ or a cr i mi nal hi st or y backgr ound.

NEW SECTI ON

WAC 314-55-040 What criminal history might prevent a marijuanalicense applicant from receiving or keeping a marijuana license? ( 1)When the boar d pr ocesses a cr i mi nal hi st or y check on an appl i cant , i tuses a poi nt syst em t o det er mi ne i f t he per son qual i f i es f or a l i -cense. The boar d wi l l not nor mal l y i ssue a mar i j uana l i cense or r enewa l i cense t o an appl i cant who has accumul ated ei ght or more poi nt s asi ndi cat ed bel ow:

Description

Time periodduring whichpoints will be

assigned Points assigned

Felony convic-tion

Ten years 12 points

Gross misde-meanor convic-tion

Three years 5 points

Misdemeanorconviction

Three years 4 points

Currently underfederal or statesupervision for afelony convic-tion

n/a 8 points

Nondisclosure

of any of theabove

n/a 4 points each

( 2) I f a case i s pendi ng f or an al l eged of f ense t hat woul d ear nei ght or mor e poi nt s, t he boar d wi l l hol d t he appl i cat i on f or t he di s-posi t i on of t he case. I f t he di sposi t i on i s not set t l ed wi t hi n ni net ydays, t he boar d wi l l admi ni st r at i vel y cl ose t he appl i cat i on.

( 3) The boar d may not i ssue a mar i j uana l i cense t o anyone who hasaccumul ated ei ght or more poi nt s as ref er enced above. Thi s i s a di s-cr et i onar y t hr eshol d and i t i s f ur t her r ecommended t hat t he f ol l owi ngexcept i ons t o t hi s s t andar d be appl i ed:

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Exception to criminal history point assignment. Thi s except i on t ot he cr i mi nal hi st or y poi nt assi gnment wi l l expi r e on J ul y 1, 2014:

( a) Pr i or t o i ni t i al l i cense appl i cat i on, t wo f eder al or stat emi sdemeanor convi ct i ons f or t he possessi on onl y of mar i j uana wi t hi nt he pr evi ous t hr ee year s may not be appl i cabl e t o t he cr i mi nal hi st or ypoi nt s accumul at ed. Al l cr i mi nal hi st or y must be r epor t ed on t he per -sonal / cri mi nal hi st or y f or m.

( i ) Regardl ess of appl i cabi l i t y, f ai l ure t o di scl ose f ul l cr i mi -

nal hi st or y wi l l r esul t i n poi nt accumul at i on;( i i ) St at e mi sdemeanor possessi on convi ct i ons accrued af t er De-

cember 6, 2013, exceedi ng t he al l owabl e amount s of mar i j uana, usabl emar i j uana, and mar i j uana- i nf used pr oduct s descr i bed i n chapt er 69. 50RCW shal l count t owar d cr i mi nal hi st or y poi nt accumul at i on.

( b) Pr i or t o i ni t i al l i cense appl i cat i on, any si ngl e st at e orf eder al convi ct i on f or t he gr owi ng, possessi on, or sal e of mar i j uanawi l l be consi der ed f or mi t i gat i on on an i ndi vi dual basi s. Mi t i gat i onwi l l be consi der ed based on the quant i t y of pr oduct i nvol ved and ot herci r cumst ances sur r oundi ng t he convi ct i on.

( 4) Once l i censed, mar i j uana l i censees must r epor t any cr i mi nalconvi ct i ons t o t he boar d wi t hi n f our t een days.

NEW SECTI ON

WAC 314-55-045 What marijuana law or rule violation history mightprevent an applicant from receiving a marijuana license? The boar dwi l l conduct an i nvest i gat i on of al l appl i cant s' mar i j uana l aw or r ul eadmi ni st r at i ve vi ol at i on hi st or y. The boar d wi l l not nor mal l y i ssue amar i j uana l i cense t o a per son, or t o an ent i t y wi t h a t r ue par t y ofi nt er est , who has t he f ol l owi ng vi ol at i on hi st or y; or t o any per sonwho has demonst r at ed a pat t er n of di sr egard f or l aws or r ul es.

Violation Type(see WAC 314-55-515) Period of Consideration

Three or more publicsafety violations;

Violations issuedwithin three years ofthe date the applica-tion is received by theboard's licensing andregulation division.

Four or more regulato-ry violations; or

One to four, or morelicense violations.

Violations issuedwithin the last threeyears the true par-ty(ies) of interest were

licensed.

NEW SECTI ON

WAC 314-55-050 Reasons the board may seek denial, suspension, orcancellation of a marijuana license application or license. Fol l owi ngi s a l i st of r easons t he boar d may deny, suspend, or cancel a mar i j ua-

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na l i cense appl i cat i on or l i cense. Per RCW 66. 50. 331, t he boar d hasbr oad di scr et i onar y aut hor i t y t o appr ove or deny a mar i j uana l i censeappl i cat i on f or r easons i ncl udi ng, but not l i mi t ed t o, t he f ol l owi ng:

( 1) Fai l ur e t o meet qual i f i cat i ons or r equi r ement s f or t he spe-ci f i c mar i j uana pr oducer , pr ocessor , or r et ai l l i cense, as out l i ned i nt hi s chapter and chapt er 69. 50 RCW.

( 2) Fai l ur e or r ef usal t o submi t i nf or mat i on or document at i on r e-quest ed by t he boar d dur i ng t he eval uat i on pr ocess.

( 3) The appl i cant makes a mi sr epr esent at i on of f act , or f ai l s t odi scl ose a mat er i al f act t o t he boar d dur i ng t he appl i cat i on pr ocessor any subsequent i nvest i gat i on af t er a l i cense has been i ssued.

( 4) Fai l ur e t o meet t he cr i mi nal hi st or y st andar ds out l i ned i nWAC 314- 55- 040.

( 5) Fai l ur e t o meet t he mar i j uana l aw or r ul e vi ol at i on hi st or yst andards out l i ned i n WAC 314- 55- 045.

( 6) The sour ce of f unds i dent i f i ed by the appl i cant t o be usedf or t he acqui si t i on, st ar t up and oper at i on of t he busi ness i s ques-t i onabl e, unver i f i abl e, or det er mi ned by the boar d t o be gai ned i n amanner whi ch i s i n vi ol at i on by l aw.

( 7) Deni es t he boar d or i t s aut hor i zed r epr esent at i ve access t oany pl ace wher e a l i censed act i vi t y t akes pl ace or f ai l s t o pr oduceany book, r ecor d or document r equi r ed by l aw or boar d r ul e.

( 8) Has been deni ed or had a mar i j uana l i cense or medi cal mar i -j uana l i cense suspended or cancel ed i n anot her st at e or l ocal j ur i s-di ct i on.

( 9) Wher e t he ci t y, count y, t r i bal gover nment , or por t aut hor i t yhas submi t t ed a subst ant i ated obj ect i on per t he r equi r ement s i n RCW69. 50. 331 ( 7) and ( 9) .

( 10) The boar d shal l not i ssue a new mar i j uana l i cense i f t hepr oposed l i censed busi ness i s wi t hi n one t housand f eet of t he per i me-t er of t he gr ounds of any of t he f ol l owi ng ent i t i es. The di st anceshal l be measur ed al ong t he most di r ect r out e over or across est ab-l i shed publ i c wal ks, st r eet s, or ot her publ i c passageway bet ween t he

pr oposed bui l di ng/ busi ness l ocat i on t o t he per i met er of t he gr ounds oft he ent i t i es l i st ed bel ow:( a) El ement ary or secondary school ;( b) Pl aygr ound;( c) Recreat i on cent er or f aci l i t y;( d) Chi l d car e cent er ;( e) Publ i c par k;( f ) Publ i c t r ansi t cent er ;( g) Li br ar y; or( h) Any game ar cade ( wher e admi ssi on i s not r est r i ct ed t o per sons

age t went y- one or ol der ) .( 11) Has f ai l ed t o pay t axes or f ees r equi r ed under chapt er 69. 50

RCW or f ai l ed t o pr ovi de pr oduct i on, pr ocessi ng, i nvent or y, sal es and

t r anspor t at i on r epor t s t o document at i on r equi r ed under t hi s chapt er .( 12) Fai l ur e t o submi t an at t est at i on t hat t hey ar e cur r ent i n

any t ax obl i gat i ons t o t he Washi ngt on st ate depart ment of r evenue.( 13) Has been deni ed a l i quor l i cense or had a l i quor l i cense

suspended or r evoked i n thi s or any ot her st at e.( 14) The oper at i ng pl an does not demonst r at e, t o t he sat i sf act i on

of t he boar d, t he appl i cant i s qual i f i ed f or a l i cense.( 15) Fai l ur e t o oper at e i n accor dance wi t h t he boar d appr oved op-

er at i ng pl an.

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( 16) The boar d det er mi nes t he i ssuance of t he l i cense wi l l not bei n t he best i nt er est of t he wel f ar e, heal t h, or saf et y of t he peopl eof t he st at e.

NEW SECTI ON

WAC 314-55-070 Process if the board denies a marijuana licenseapplication. I f t he boar d deni es a mar i j uana l i cense appl i cat i on, t heappl i cant s may:

( 1) Request an admi ni st r at i ve hear i ng per chapt er 34. 05 RCW, t heAdmi ni st r at i ve Pr ocedur e Act .

( 2) Reappl y f or t he l i cense no sooner t han one year f r om t he dat eon t he f i nal or der of deni al .

NEW SECTI ON

WAC 314-55-075 What is a marijuana producer license and what arethe requirements and fees related to a marijuana producer license? ( 1)A mar i j uana pr oducer l i cense al l ows t he l i censee t o pr oduce mar i j uanaf or sal e at whol esal e t o mar i j uana pr ocessor l i censees and t o ot hermar i j uana pr oducer l i censees. Mar i j uana pr oduct i on must t ake pl acewi t hi n a f ul l y encl osed secur e i ndoor f aci l i t y or gr eenhouse wi t h r i g-i d wal l s, a roof , and door s. Out door pr oduct i on may t ake pl ace i n non-r i gi d gr eenhouses, other st r uct ur es, or an expanse of open or cl ear edgr ound f ul l y encl osed by a physi cal bar r i er . To obscur e publ i c vi ew oft he pr emi ses, out door pr oduct i on must be encl osed by a si ght obscurewal l or f ence at l east ei ght f eet hi gh. Out door pr oducers must meet

secur i t y r equi r ement s descr i bed i n WAC 314- 55- 083.( 2) The appl i cat i on f ee f or a mar i j uana pr oducer l i cense i s t wohundr ed f i f t y dol l ar s. The appl i cant i s al so r esponsi bl e f or payi ngt he f ees r equi r ed by t he appr oved vendor f or f i nger pr i nt eval uat i on.

( 3) The annual f ee f or i ssuance and r enewal of a mar i j uana pr o-ducer l i cense i s one t housand dol l ar s. The boar d wi l l conduct r andomcr i mi nal hi st or y checks at t he t i me of r enewal t hat wi l l r equi r e t hel i censee t o submi t f i nger pr i nt s f or eval uat i on f r om t he appr oved ven-dor . The l i censee wi l l be r esponsi bl e f or al l f ees r equi r ed f or t hecr i mi nal hi st or y checks.

( 4) The boar d wi l l i ni t i al l y l i mi t t he oppor t uni t y t o appl y f or amar i j uana pr oducer l i cense t o a t hi r t y- day cal endar wi ndow begi nni ngwi t h t he ef f ect i ve dat e of t hi s sect i on. I n or der f or a mar i j uana pr o-

ducer appl i cat i on l i cense to be consi der ed i t must be r ecei ved no l at -er t han t hi r t y days af t er t he ef f ect i ve dat e of t he r ul es adopt ed byt he boar d. The boar d may r eopen t he mar i j uana pr oducer appl i cat i onwi ndow af t er t he i ni t i al eval uat i on of t he appl i cat i ons r ecei ved andat subsequent t i mes when t he board deems necessar y.

( 5) Any ent i t y and/ or pr i nci pal s wi t hi n any ent i t y ar e l i mi t ed t ono more t han t hr ee mar i j uana pr oducer l i censes.

( 6) The maxi mum amount of space f or mar i j uana pr oduct i on i s l i mi -t ed t o t wo mi l l i on squar e f eet . Appl i cant s must desi gnat e on t hei r op-er at i ng pl an t he si ze cat egor y of t he pr oduct i on pr emi ses and t he

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amount of act ual squar e f oot age i n t hei r pr emi ses t hat wi l l be desi g-nat ed as pl ant canopy. Ther e ar e t hr ee cat egor i es as f ol l ows:

( a) Ti er 1 Less t han t wo t housand square f eet ;( b) Ti er 2 Two t housand square f eet t o t en thousand square

f eet ; and( c) Ti er 3 Ten t housand squar e f eet t o t hi r t y thousand squar e

f eet .( 7) The boar d may reduce a l i censee' s or appl i cant ' s squar e f oot -

age desi gnat ed t o pl ant canopy f or t he f ol l owi ng r easons:( a) I f t he amount of squar e f eet of pr oduct i on of al l l i censees

exceeds t he maxi mum of t wo mi l l i on square f eet t he boar d wi l l r educet he al l owed squar e f oot age by t he same percent age.

( b) I f f i f t y per cent pr oduct i on space used f or pl ant canopy i nt he l i censee' s oper at i ng pl an i s not met by the end of t he f i r st yearof oper at i on t he boar d may reduce t he t i er of l i censur e.

( 8) I f t he t ot al amount of squar e f eet of mar i j uana pr oduct i onexceeds t wo mi l l i on squar e f eet , t he boar d r eser ves t he r i ght t o re-duce al l l i censee' s product i on by t he same per cent age or r educe l i cen-see pr oduct i on by one or more t i er s by t he same percent age.

( 9) The maxi mum al l owed amount of mar i j uana on a producer ' s prem-i ses at any t i me i s as f ol l ows:

( a) Out door or gr eenhouse gr ows One and one- quar t er of a year ' shar vest ; or

( b) I ndoor gr ows Si x mont hs of t hei r annual har vest .

NEW SECTI ON

WAC 314-55-077 What is a marijuana processor license and what arethe requirements and fees related to a marijuana processor license?( 1) A mar i j uana pr ocessor l i cense al l ows t he l i censee t o pr ocess,

package, and l abel usabl e mar i j uana and mar i j uana- i nf used pr oduct s f orsal e at whol esal e t o mar i j uana r et ai l er s.( 2) A mar i j uana pr ocessor i s al l owed t o bl end t est ed useabl e mar-

i j uana f r om mul t i pl e l ot s i nt o a si ngl e package f or sal e t o a mar i j ua-na r et ai l l i censee pr ovi di ng t he l abel r equi r ement s f or each l ot usedi n t he bl end are met and t he percent age by wei ght of each l ot i s al soi ncl uded on t he l abel .

( 3) The appl i cat i on f ee f or a mar i j uana pr ocessor l i cense i s t wohundr ed f i f t y dol l ar s. The appl i cant i s al so r esponsi bl e f or payi ngt he f ees r equi r ed by t he appr oved vendor f or f i nger pr i nt eval uat i on.

( 4) The annual f ee f or i ssuance and r enewal of a mar i j uana pr o-cessor l i cense i s one t housand dol l ar s. The boar d wi l l conduct r andomcr i mi nal hi st or y checks at t he t i me of r enewal t hat wi l l r equi r e t he

l i censee t o submi t f i nger pr i nt s f or eval uat i on f r om t he appr oved ven-dor . The l i censee wi l l be r esponsi bl e f or al l f ees r equi r ed f or t hecr i mi nal hi st or y checks.

( 5) The boar d wi l l i ni t i al l y l i mi t t he oppor t uni t y t o appl y f or amar i j uana pr ocessor l i cense to a t hi r t y- day cal endar wi ndow begi nni ngwi t h t he ef f ect i ve dat e of t hi s sect i on. I n or der f or a mar i j uana pr o-cessor appl i cat i on l i cense to be consi der ed i t must be recei ved nol at er t han t hi r t y days af t er t he ef f ect i ve dat e of t he r ul es adopt edby the boar d. The boar d may r eopen t he mar i j uana pr ocessor appl i cat i onwi ndow af t er t he i ni t i al eval uat i on of t he appl i cat i ons t hat ar e r e-

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cei ved and pr ocessed, and at subsequent t i mes when the boar d deemsnecessar y.

( 6) Any ent i t y and/ or pr i nci pal s wi t hi n any ent i t y ar e l i mi t ed t ono more t han t hr ee mar i j uana pr ocessor l i censes.

( 7) Mar i j uana pr ocessor l i censees are al l owed t o have a maxi mumof si x mont hs of t hei r aver age useabl e mar i j uana and si x mont hs aver -age of t hei r t ot al pr oduct i on on t hei r l i censed pr emi ses at any t i me.

NEW SECTI ON

WAC 314-55-079 What is a marijuana retailer license and what arethe requirements and fees related to a marijuana retailer license? ( 1)A mar i j uana ret ai l er l i cense al l ows t he l i censee t o sel l onl y usabl emar i j uana, mar i j uana- i nf used pr oduct s, and mar i j uana par apher nal i a atr et ai l i n r et ai l out l et s t o per sons t went y- one year s of age and ol der .

( 2) Mar i j uana ext r act s, such as hash, hash oi l , shat t er , and waxcan be i nf used i n pr oduct s sol d i n a mar i j uana r et ai l st or e, but RCW69. 50. 354 does not al l ow t he sal e of ext r act s t hat ar e not i nf used i npr oduct s. A mar i j uana ext r act does not meet t he def i ni t i on of a mar i -

j uana- i nf used product per RCW 69. 50. 101.( 3) I nt er net sal es and del i ver y of pr oduct i s pr ohi bi t ed.( 4) The appl i cat i on f ee f or a mar i j uana r et ai l er ' s l i cense i s t wo

hundr ed f i f t y dol l ar s. The appl i cant i s al so r esponsi bl e f or payi ngt he f ees r equi r ed by t he appr oved vendor f or f i nger pr i nt eval uat i on.

( 5) The annual f ee f or i ssuance and r enewal of a mar i j uana re-t ai l er ' s l i cense i s one t housand dol l ar s. The boar d wi l l conduct r an-dom cr i mi nal hi st or y checks at t he t i me of r enewal t hat wi l l r equi r et he l i censee t o submi t f i nger pr i nt s f or eval uat i on f r om t he appr ovedvendor . The l i censee wi l l be r esponsi bl e f or al l f ees r equi r ed f or t hecr i mi nal hi st or y checks.

( 6) Mar i j uana r et ai l er s may not sel l mar i j uana pr oduct s bel owt hei r acqui si t i on cost .( 7) Mar i j uana r et ai l er l i censees are al l owed t o have a maxi mum of

f our mont hs of t hei r aver age i nvent or y on t hei r l i censed pr emi ses atany gi ven t i me.

NEW SECTI ON

WAC 314-55-081 Who can apply for a marijuana retailer license?( 1) Usi ng est i mated consumpt i on data and popul at i on data obt ai ned f r om

t he of f i ce of f i nanci al management ( OFM) popul at i on data, t he l i quorcont r ol boar d wi l l det er mi ne t he maxi mum number of mar i j uana ret ai ll ocat i ons per count y.

The number of r et ai l l ocat i ons wi l l be deter mi ned usi ng a met hodt hat di st r i but es t he number of l ocat i ons propor t i onat e to t he mostpopul ous ci t i es wi t hi n each count y. Locat i ons not assi gned t o a spe-ci f i c ci t y wi l l be at l ar ge. At l ar ge l ocat i ons can be used f or uni n-cor por at ed ar eas i n t he count y or i n ci t i es wi t hi n t he count y thathave no ret ai l l i censes desi gnat ed. Once t he number of l ocat i ons perci t y and at l ar ge have been i dent i f i ed, t he el i gi bl e appl i cant s wi l lbe sel ect ed by l ot t er y i n t he event t he number of appl i cat i ons exceeds

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t he al l ot t ed amount f or t he ci t i es and count y. Any l ot t er y conduct edby the boar d wi l l be wi t nessed by an i ndependent t hi r d part y.

( 2) The number of mar i j uana r et ai l l i censes det er mi ned by t heboar d can be f ound on t he l i quor cont r ol boar d web si t e atwww. l i q. wa. gov.

( 3) Any ent i t y and/ or pr i nci pal s wi t hi n any ent i t y ar e l i mi t ed t ono mor e t han t hr ee r et ai l mar i j uana l i censes wi t h no mul t i pl e l ocat i onl i censee al l owed mor e t han t hi r t y- t hr ee per cent of t he al l owed l i cen-

ses i n any count y or ci t y.( 4) The boar d wi l l i ni t i al l y l i mi t t he oppor t uni t y t o appl y f or a

mar i j uana r et ai l er l i cense t o a t hi r t y- day cal endar wi ndow begi nni ngwi t h t he ef f ect i ve dat e of t hi s sect i on. I n or der f or a mar i j uana r e-t ai l er l i cense appl i cat i on t o be consi der ed i t must be r ecei ved nol at er t han t hi r t y days af t er t he ef f ect i ve dat e of t he r ul es adopt edby t he boar d. The boar d may r eopen t he mar i j uana r et ai l er appl i cat i onwi ndow af t er t he i ni t i al eval uat i on of t he appl i cat i ons r ecei ved andat subsequent t i mes when t he board deems necessar y.

NEW SECTI ON

WAC 314-55-082 Insurance requirements. Mar i j uana l i censees shal lpr ovi de i nsur ance cover age as set out i n t hi s sect i on. The i nt ent oft he r equi r ed i nsurance i s t o pr otect t he consumer shoul d t her e be anycl ai ms, sui t s, act i ons, cost s, damages or expenses ar i si ng f r om anynegl i gent or i nt ent i onal act or omi ssi on of t he mar i j uana l i censees.Mar i j uana l i censees shal l f ur ni sh evi dence i n t he f or m of a cer t i f i -cat e of i nsur ance sat i sf act or y t o t he boar d t hat i nsur ance, i n t hef ol l owi ng ki nds and mi ni mum amount s, has been secur ed. Fai l ur e t o pr o-vi de pr oof of i nsur ance, as r equi r ed, may resul t i n l i cense cancel l a-t i on.

( 1) Commer ci al gener al l i abi l i t y i nsur ance: The l i censee shal l atal l t i mes car r y and mai nt ai n commer ci al gener al l i abi l i t y i nsur anceand i f necessar y, commer ci al umbr el l a i nsur ance f or bodi l y i nj ur y andpr oper t y damage ar i si ng out of l i censed act i vi t i es. Thi s i nsur anceshal l cover such cl ai ms as may be caused by any act , omi ss i on, or neg-l i gence of t he l i censee or i t s of f i cer s, agent s, r epr esent at i ves, as-si gns, or ser vant s. The i nsur ance shal l al so cover bodi l y i nj ur y, i n-cl udi ng di sease, i l l ness and deat h, and pr oper t y damage ar i si ng out oft he l i censee' s pr emi ses/ oper at i ons, pr oduct s, and per sonal i nj ur y. Thel i mi t s of l i abi l i t y i nsur ance shal l not be l ess t han one mi l l i on dol -l ar s .

( 2) I nsur ance car r i er r at i ng: The i nsur ance r equi r ed i n subsec-t i on ( 1) of t hi s sect i on shal l be i ssued by an i nsur ance company au-

t hor i zed t o do busi ness wi t hi n t he st at e of Washi ngt on. I nsur ance i st o be pl aced wi t h a car r i er t hat has a r at i ng of A - Cl ass VI I or bet -t er i n t he most r ecent l y publ i shed edi t i on of Best's Reports. I f ani nsur er i s not admi t t ed, al l i nsur ance pol i ci es and pr ocedur es f or i s-sui ng t he i nsurance pol i ci es must compl y wi t h chapt er s 48. 15 RCW and284- 15 WAC.

( 3) Addi t i onal i nsur ed. The boar d shal l be named as an addi t i onali nsur ed on al l gener al l i abi l i t y, umbr el l a, and excess i nsur ance pol i -ci es. Al l pol i ci es shal l be pr i mar y over any ot her val i d and col l ect a-bl e i nsur ance.

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NEW SECTI ON

WAC 314-55-083 What are the security requirements for a marijuanalicensee? The secur i t y requi r ement s f or a mar i j uana l i censee are asf ol l ows:

( 1) Display of identification badge. Al l empl oyees on t he l i -censed pr emi ses shal l be requi r ed t o hol d and pr oper l y di spl ay an

i dent i f i cat i on badge i ssued by t he l i censed empl oyer at al l t i meswhi l e on t he l i censed pr emi ses.

( 2) Alarm systems. At a mi ni mum, each l i censed pr emi ses must havea secur i t y al ar m syst em on al l per i met er ent r y poi nt s and per i met erwi ndows. Mot i on det ect or s, pr essure swi t ches, dur ess, pani c, and hol d-up al arms may al so be ut i l i zed.

( 3) Surveillance system. At a mi ni mum, a compl ete vi deo sur vei l -l ance wi t h mi ni mum camera resol ut i on of 640x470 pi xel and must be i n-t er net pr ot ocol ( I P) compat i bl e and r ecor di ng syst em f or cont r ol l edar eas wi t hi n t he l i censed pr emi ses and ent i r e per i met er f enci ng andgat es encl osi ng an out door gr ow oper at i on, t o ensur e cont r ol of t hear ea. The r equi r ement s i ncl ude i mage acqui si t i on, vi deo r ecor di ng,management and moni t or i ng har dware and suppor t syst ems. Al l r ecordedi mages must cl ear l y and accur atel y di spl ay t he t i me and date. Ti me i st o be measur ed i n accor dance wi t h t he U. S. Nat i onal I nst i t ut e St and-ards and Technol ogy st andards.

( a) Al l cont r ol l ed access areas, secur i t y rooms/ ar eas and al lpoi nt s of i ngr ess/ egr ess t o l i mi t ed access ar eas, al l poi nt s of i n-gr ess/ egr ess t o t he ext er i or of t he l i censed pr emi ses, and al l poi nt -of - sal e ( POS) areas must have f i xed camer a cover age capabl e of i dent i -f yi ng act i vi t y occur r i ng wi t hi n a mi ni mum of t went y f eet of al l ent r yand exi t poi nt s.

( b) Camer a pl acement shal l al l ow f or t he cl ear and cer t ai n i den-t i f i cat i on of any i ndi vi dual on t he l i censed pr emi ses.

( c) Al l ent r ances and exi t s t o t he f aci l i t y shal l be r ecor ded

f r om bot h i ndoor and out door vant age poi nt s, and capabl e of cl ear l yi dent i f yi ng any acti vi t i es occur r i ng wi t hi n t he f aci l i t y or wi t hi n t hegr ow r ooms i n l ow l i ght condi t i ons. The sur vei l l ance syst em st or agedevi ce must be secur ed on- si t e i n a l ock box, cabi net , cl oset , or se-cur ed i n anot her manner t o pr otect f r om empl oyee t amper i ng or cr i mi nalt hef t .

( d) Al l per i met er f enci ng and gates encl osi ng an out door gr ow op-er at i on must have f ul l vi deo sur vei l l ance capabl e of cl ear l y i dent i f y-i ng any act i vi t i es occur r i ng wi t hi n t went y f eet of t he ext er i or of t heper i met er . Any gat e or ot her ent r y poi nt t hat i s par t of t he encl osur ef or an out door growi ng operat i on must have f i xed camera cover age capa-bl e of i dent i f yi ng act i vi t y occur r i ng wi t hi n a mi ni mum of t went y f eetof t he ext er i or , t went y- f our hour s a day. A mot i on det ect i on l i ght i ng

syst em may be empl oyed t o i l l umi nate the gat e ar ea i n l ow l i ght condi -t i ons.

( e) Ar eas where mar i j uana i s gr own, cur ed or manuf actur ed i ncl ud-i ng dest r oyi ng wast e, shal l have a camer a pl acement i n t he room f aci ngt he pr i mar y ent r y door , and i n adequat e f i xed posi t i ons, at a hei ghtwhi ch wi l l pr ovi de a cl ear , unobst r uct ed vi ew of t he r egul ar act i vi t ywi t hout a si ght bl ockage f r om l i ght i ng hoods, f i xt ur es, or ot herequi pment , al l owi ng f or t he cl ear and cer t ai n i dent i f i cat i on of per -sons and act i vi t i es at al l t i mes.

( f ) Al l mar i j uana or mar i j uana- i nf used pr oduct s t hat ar e i nt endedt o be r emoved or t r anspor t ed f r om mar i j uana pr oducer t o mar i j uana pr o-

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cessor and/ or mar i j uana pr ocessor t o mar i j uana r et ai l er shal l be st ag-ed i n an area known as t he "quarant i ne" l ocat i on f or a mi ni mum oft went y- f our hour s. Tr anspor t mani f est wi t h pr oduct i nf or mat i on andwei ght s must be af f i xed t o the pr oduct . At no t i me dur i ng t he quaran-t i ne per i od can t he pr oduct be handl ed or moved under any ci r cumst an-ces and i s subj ect t o audi t i ng by t he l i quor cont r ol boar d or desi gn-ees.

( g) Al l camer a recordi ngs must be cont i nuousl y recorded t went y-

f our hour s a day. Al l sur vei l l ance r ecor di ngs must be kept f or a mi ni -mum of f or t y- f i ve days on t he l i censee' s r ecor di ng devi ce. Al l vi deosar e subj ect t o i nspect i on by any l i quor cont r ol boar d empl oyee or l awenf orcement of f i cer , and must be copi ed and pr ovi ded t o t he boar d orl aw enf orcement of f i cer upon r equest .

( 4) Traceability: To pr event di ver si on and t o pr omot e publ i csaf et y, mar i j uana l i censees must t r ack mar i j uana f r om seed t o sal e.Li censees must pr ovi de t he requi r ed i nf or mat i on on a syst em speci f i edby t he boar d. Al l cost s r el at ed t o t he r epor t i ng r equi r ement s ar ebor ne by t he l i censee. Mar i j uana seedl i ngs, cl ones, pl ant s, l ot s ofusabl e mar i j uana or t r i m, l eaves, and ot her pl ant mat t er , bat ches ofext r act s and mar i j uana- i nf used pr oduct s must be t r aceabl e f r om pr oduc-t i on t hr ough pr ocessi ng, and f i nal l y i nt o t he r et ai l envi r onment i n-cl udi ng bei ng abl e to i dent i f y whi ch l ot was used as base mat er i al t ocr eat e each bat ch of ext r act s or i nf used pr oduct s. The f ol l owi ng i n-f ormat i on i s r equi r ed and must be kept compl et el y up- t o- date i n a sys-t em speci f i ed by the boar d:

( a) Key not i f i cat i on of "event s, " such as when a pl ant ent er s t hesyst em ( moved f r om t he seedl i ng or cl one ar ea to t he veget at i on pr o-duct i on area at a young age) ;

( b) When pl ant s ar e t o be par t i al l y or f ul l y har vest ed or de-st r oyed;

( c) When a l ot or bat ch of mar i j uana- i nf used pr oduct i s t o be de-st r oyed;

( d) When usabl e mar i j uana or mar i j uana- i nf used pr oduct s ar e

t r anspor t ed;( e) Any t hef t of mar i j uana seedl i ngs, cl ones, pl ant s, t r i m orot her pl ant mat er i al , ext r act , i nf used pr oduct , or ot her i t em cont ai n-i ng mar i j uana;

( f ) Ther e i s a sevent y- t wo hour mandat or y wai t i ng per i od af t ert he not i f i cat i on descr i bed i n t hi s subsect i on i s gi ven bef or e anypl ant may be dest r oyed or a l ot or bat ch of mar i j uana or mar i j uana- i n-f used product may be dest r oyed;

( g) Ther e i s a t went y- f our hour mandat or y wai t i ng per i od af t ert he not i f i cat i on descri bed i n t hi s subsect i on t o al l ow f or i nspect i onbef or e a l ot of mar i j uana i s t r anspor t ed f r om a pr oducer t o a pr ocess-or ;

( h) Ther e i s a t went y- f our hour mandat or y wai t i ng per i od af t er

t he not i f i cat i on descri bed i n t hi s subsect i on t o al l ow f or i nspect i onbef or e useabl e mar i j uana, or mar i j uana- i nf used pr oduct s ar e t r anspor -t ed f r om a pr ocessor t o a r et ai l er .

( i ) Pr i or t o r eachi ng ei ght i nches i n hei ght or wi dt h, each mar i -j uana pl ant must be t agged and t r acked i ndi vi dual l y, whi ch t ypi cal l yshoul d happened when a pl ant i s moved f r om t he seed germi nat i on orcl one ar ea to the veget at i on pr oduct i on ar ea;

( j ) A compl et e i nvent or y of al l mar i j uana seedl i ngs, cl ones, al lpl ant s, l ot s of usabl e mar i j uana or t r i m, l eaves, and ot her pl ant mat -t er , bat ches of ext r act and mar i j uana- i nf used pr oduct s;

( k) Al l poi nt of sal e r ecor ds;

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( l ) Mar i j uana exci se t ax r ecor ds;( m) Al l sampl es sent t o an i ndependent t est i ng l ab and t he qual i -

t y assur ance t est r esul t s;( n) Al l f r ee sampl es provi ded t o anot her l i censee f or pur poses of

negot i at i ng a sal e;( o) Al l sampl es used f or t est i ng f or qual i t y by t he pr oducer or

pr ocessor ;( p) Sampl es cont ai ni ng usabl e mar i j uana pr ovi ded t o ret ai l er s;

( q) Sampl es pr ovi ded t o the boar d or t hei r desi gnee f or qual i t yassur ance compl i ance checks; and

( r ) Ot her i nf or mat i on speci f i ed by t he boar d.( 5) Start-up inventory for marijuana producers. Wi t hi n f i f t een

days of st ar t i ng pr oduct i on oper at i ons a pr oducer must have al l non-f l ower i ng mar i j uana pl ant s physi cal l y on t he l i censed pr emi ses. Thepr oducer must i mmedi at el y r ecord each mar i j uana pl ant t hat ent er s t hef aci l i t y i n t he t r aceabi l i t y system dur i ng t hi s f i f t een day t i mef r ame. No f l ower i ng mar i j uana pl ant s may be br ought i nt o t he f aci l i t ydur i ng t hi s f i f t een day t i me f r ame. Af t er t hi s f i f t een day t i me f r ameexpi r es, a pr oducer may onl y st ar t pl ant s f r om seed or cr eat e cl onesf r om a mar i j uana pl ant l ocat ed physi cal l y on t hei r l i censed pr emi ses,or pur chase mar i j uana seeds, cl ones, or pl ant s f r om anot her l i censedpr oducer .

( 6) Samples. Fr ee sampl es of usabl e mar i j uana may be pr ovi ded bypr oducer s or pr ocessors , or used f or pr oduct qual i t y t est i ng, as setf or t h i n t hi s sect i on.

( a) Sampl es ar e l i mi t ed t o t wo gr ams and a pr oducer may not pro-vi de any one l i censed pr ocessor more than f our gr ams of usabl e mar i -

j uana per mont h f r ee of char ge f or t he pur pose of negot i at i ng a sal e.The producer must r ecor d t he amount of each sampl e and t he processorr ecei vi ng t he sampl e i n t he t r aceabi l i t y syst em.

( b) Sampl es are l i mi t ed t o t wo gr ams and a pr ocessor may not pro-vi de any one l i censed r et ai l er mor e t han f our gr ams of usabl e mar i j ua-na per mont h f r ee of char ge f or t he pur pose of negot i at i ng a sal e. The

pr ocessor must r ecor d t he amount of each sampl e and t he r etai l er r e-cei vi ng t he sampl e i n t he t r aceabi l i t y syst em.( c) Sampl es ar e l i mi t ed to t wo uni t s and a pr ocessor may not pr o-

vi de any one l i censed r et ai l er mor e t han si x ounces of mar i j uana i n-f used i n sol i d f or m per mont h f r ee of char ge f or t he pur pose of nego-t i at i ng a sal e. The pr ocessor must r ecor d the amount of each sampl eand t he r et ai l er r ecei vi ng t he sampl e i n t he t r aceabi l i t y syst em.

( d) Sampl es ar e l i mi t ed to t wo uni t s and a pr ocessor may not pr o-vi de any one l i censed r et ai l er mor e t han twent y- f our ounces of mar i -j uana- i nf used l i qui d per mont h f r ee of char ge f or t he pur pose of nego-t i at i ng a sal e. The pr ocessor must r ecord the amount of each sampl eand t he r et ai l er r ecei vi ng t he sampl e i n t he t r aceabi l i t y syst em.

( e) Sampl es ar e l i mi t ed t o one- hal f gr am and a pr ocessor may not

pr ovi de any one l i censed r et ai l er mor e t han one gr am of mar i j uana- i n-f used ext r act meant f or i nhal at i on per mont h f r ee of char ge f or t hepur pose of negot i at i ng a sal e. The pr ocessor must r ecord t he amount ofeach sampl e and t he r et ai l er r ecei vi ng t he sampl e i n t he t r aceabi l i t ysyst em.

( f ) Producer s may sampl e one gr am of useabl e mar i j uana perst r ai n, per mont h f or qual i t y sampl i ng. Sampl i ng f or qual i t y may nott ake pl ace at a l i censed pr emi ses. Onl y t he pr oducer or empl oyees oft he l i censee may sampl e the useabl e mar i j uana f or qual i t y. The pr oduc-er must r ecord t he amount of each sampl e and t he empl oyee( s) conduct -i ng t he sampl i ng i n t he t r aceabi l i t y syst em.

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( g) Processors may sampl e one uni t , per batch of a new edi bl emar i j uana- i nf used pr oduct t o be of f er ed f or sal e on t he mar ket . Sam-pl i ng f or qual i t y may not t ake pl ace at a l i censed pr emi ses. Onl y t heprocessor or empl oyees of t he l i censee may sampl e t he edi bl e mar i j ua-na- i nf used pr oduct . The pr ocessor must r ecor d t he amount of each sam-pl e and t he empl oyee( s) conduct i ng t he sampl i ng i n t he t r aceabi l i t ysyst em.

( h) Processors may sampl e up t o one quar t er gr am, per bat ch of a

new mar i j uana- i nf used ext r act f or i nhal at i on t o be of f er ed f or sal e ont he mar ket . Sampl i ng f or qual i t y may not t ake pl ace at a l i censedpr emi ses. Onl y the pr ocessor or empl oyee( s) of t he l i censee may sampl et he mar i j uana- i nf used ext r act f or i nhal at i on. The pr ocessor must r e-cor d the amount of each sampl e and t he empl oyee( s) conduct i ng t he sam-pl i ng i n t he t r aceabi l i t y syst em.

( i ) The l i mi t s descri bed i n subsect i on ( 3) of t hi s sect i on do notappl y t o t he usabl e mar i j uana i n sampl e j ars t hat may be pr ovi ded t or et ai l er s descr i bed i n WAC 314- 55- 105( 8) .

( j ) Ret ai l er s may not pr ovi de f r ee sampl es t o cust omer s.

NEW SECTI ON

WAC 314-55-084 Production of marijuana. Onl y t he f ol l owi ng speci -f i ed soi l amendment s, f er t i l i zer s, ot her crop pr oduct i on ai ds, andpest i ci des may be used i n t he pr oduct i on of mar i j uana:

( 1) Mat er i al s l i st ed or r egi st er ed by t he Washi ngt on st at e de-par t ment of agr i cul t ur e ( WSDA) or Or gani c Mat er i al s Revi ew I nst i t ut e( OMRI ) as al l owabl e f or use i n or gani c pr oduct i on, pr ocessi ng, andhandl i ng under t he U. S. Depar t ment of Agr i cul t ur e' s nat i onal or gani csst andar ds, al so cal l ed t he Nat i onal Or gani c Pr ogr am ( NOP) , consi st entwi t h r equi r ement s at 7 C. F. R. Par t 205.

( 2) Pest i ci des r egi st er ed by WSDA under chapt er 15. 58 RCW as al -l owed f or use i n t he pr oduct i on, pr ocessi ng, and handl i ng of mar i j ua-na. Pest i ci des must be used consi st ent wi t h t he l abel r equi r ement s.

( 3) Commer ci al f er t i l i zer s r egi st er ed by WSDA under chapt er 15. 54RCW.

( 4) Pot t i ng soi l and ot her gr owi ng medi a avai l abl e commer ci al l yi n t he st ate of Washi ngt on may be used i n mar i j uana pr oduct i on. Pro-ducer s gr owi ng out door s ar e not r equi r ed t o meet l and el i gi bi l i t y re-qui r ement s out l i ned i n 7 C. F. R. Part 205. 202.

NEW SECTI ON

WAC 314-55-085 What are the transportation requirements for amarijuana licensee? ( 1) Notification of shipment. Upon t r anspor t i ngany mar i j uana or mar i j uana pr oduct , a pr oducer , pr ocessor or r et ai l ershal l not i f y t he boar d of t he t ype and amount and/ or wei ght of mar i -j uana and/ or mar i j uana product s bei ng t r anspor t ed, t he name of t r ans-por t er , t i mes of depar t ur e and expect ed del i ver y. Thi s i nf or mat i onmust be r epor t ed i n t he t r aceabi l i t y syst em descr i bed i n WAC314- 55- 083( 4) .

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( 2) Receipt of shipment. Upon r ecei vi ng t he shi pment , t he l i cen-see r ecei vi ng t he pr oduct shal l r epor t t he amount and/ or wei ght ofmar i j uana and/ or mar i j uana pr oduct s r ecei ved i n t he t r aceabi l i t y sys-t em.

( 3) Transportation manifest. A compl et e t r anspor t mani f est con-t ai ni ng al l i nf or mat i on r equi r ed by t he boar d must be kept wi t h t hepr oduct at al l t i mes.

( 4) Records of transportation. Recor ds of al l t r anspor t at i on must

be kept f or a mi ni mum of t hr ee year s at t he l i censee' s l ocat i on.( 5) Transportation of product. Mar i j uana or mar i j uana pr oduct s

t hat are bei ng t r anspor t ed must meet t he f ol l owi ng r equi r ement s:( a) Onl y t he mar i j uana l i censee or an empl oyee of t he l i censee

may t r anspor t pr oduct ;( b) Mar i j uana or mar i j uana pr oduct s must be i n a seal ed package

or cont ai ner approved by t he board pursuant t o WAC 314- 55- 105;( c) Seal ed packages or cont ai ner s cannot be opened dur i ng t r ans-

port;( d) Mar i j uana or mar i j uana pr oduct s must be i n a l ocked, saf e and

secur e st orage compart ment t hat i s secur ed t o t he i nsi de body/ compart -ment of t he vehi cl e t r anspor t i ng t he mar i j uana or mar i j uana pr oduct s;

( e) Any vehi cl e t r anspor t i ng mar i j uana or mar i j uana pr oduct s mustt r avel di r ectl y f r om t he shi ppi ng l i censee t o t he r ecei vi ng l i censeeand must not make any unnecessary st ops i n bet ween except t o ot her f a-ci l i t i es r ecei vi ng pr oduct .

NEW SECTI ON

WAC 314-55-086 What are the mandatory signs a marijuana licenseemust post on a licensed premises? ( 1) Notices regarding persons undertwenty-one years of age must be conspi cuousl y post ed on t he premi ses

as f ol l ows:

Type of licenseeSign must contain thefollowing language:

Required locationof sign

Marijuana produc-er, marijuana pro-cessor, and mari-

juana retailer

"Persons under twenty-one years of age not

permitted on thesepremises."

Conspicuous loca-tion at each entry to

premises.

The boar d wi l l pr ovi de t he requi r ed not i ces, or l i censees maydesi gn t hei r own not i ces as l ong as t hey ar e l egi bl e and cont ai n t her equi r ed l anguage.

( 2) Signs provided by the board prohibiting opening a package ofmarijuana or marijuana-infused product in public or consumption ofmarijuana or marijuana-infused products in public, must be post ed asf ol l ows:

Type of premises Required location of sign

Marijuana retail Posted in plain view at the mainentrance to the establishment.

( 3) The premises' current and valid master license with appropri-ate endorsements must be conspi cuousl y post ed on t he premi ses andavai l abl e f or i nspect i on by l i quor enf or cement of f i cer s.

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NEW SECTI ON

WAC 314-55-087 What are the recordkeeping requirements for mari-juana licensees? ( 1) Mar i j uana l i censees are r esponsi bl e t o keep r e-cor ds t hat cl ear l y r ef l ect al l f i nanci al t r ansacti ons and t he f i nan-ci al condi t i on of t he busi ness. The f ol l owi ng r ecor ds must be kept andmai nt ai ned on t he l i censed pr emi ses f or a t hr ee- year per i od and must

be made avai l abl e f or i nspect i on i f r equest ed by an empl oyee of t hel i quor cont r ol boar d:

( a) Pur chase i nvoi ces and suppor t i ng document s, t o i ncl ude thei t ems and/ or servi ces pur chased, f r om whom t he i t ems wer e pur chased,and t he dat e of pur chase;

( b) Bank st at ement s and cancel ed checks f or any account s r el at i ngt o t he l i censed busi ness;

( c) Account i ng and tax recor ds r el at ed to t he l i censed busi nessand each t r ue par t y of i nt er est ;

( d) Recor ds of al l f i nanci al t r ansact i ons rel at ed t o t he l i censedbusi ness, i ncl udi ng cont r act s and/ or agr eement s f or servi ces per f or medor r ecei ved t hat r el at e t o the l i censed busi ness;

( e) Al l empl oyee r ecor ds, t o i ncl ude t r ai ni ng;( f ) Recor ds of each dai l y appl i cat i on of pest i ci des appl i ed t o

t he mar i j uana pl ant s or gr owi ng medi um. For each appl i cat i on, t he pr o-ducer shal l r ecord t he f ol l owi ng i nf ormat i on on t he same day t he ap-pl i cat i on i s made:

( i ) Ful l name of each empl oyee who appl i ed t he pest i ci de;( i i ) The dat e the pest i ci de was appl i ed;( i i i ) The name of t he pest i ci de or pr oduct name l i st ed on t he

r egi st r at i on l abel whi ch was appl i ed;( i v) The concent r at i on and t ot al amount of pest i ci de per pl ant ;

and( v) For out door pr oduct i on, t he concent r at i on of pest i ci de that

was appl i ed t o the f i el d. Li quor appl i cat i ons may be recor ded as, but

are not l i mi t ed t o, amount of pr oduct per one hundr ed gal l ons of l i q-uor spray, gal l ons per acr e of out put vol ume, ppm, per cent pr oduct i nt ank mi x ( e. g. , one per cent ) . For chemi gat i on appl i cat i ons, r ecor d" i nches of wat er appl i ed" or ot her appr opr i at e measure.

( g) Soi l amendment , f er t i l i zer s, or ot her crop pr oduct i on ai dsappl i ed t o the gr owi ng medi um or used i n t he pr ocess of gr owi ng mar i -j uana;

( h) Pr oduct i on and pr ocessi ng r ecor ds, i ncl udi ng har vest and cur -i ng, wei ghi ng, dest r uct i on of mar i j uana, cr eat i ng bat ches of mar i j ua-na- i nf used pr oduct s and packagi ng i nt o l ot s and uni t s;

( i ) Recor ds of each bat ch of ext r act s or i nf used mar i j uana pr od-uct s made, i ncl udi ng at a mi ni mum, t he l ot s of usabl e mar i j uana ort r i m, l eaves, and ot her pl ant mat t er used ( i ncl udi ng t he t ot al wei ght

of t he base pr oduct used) , any sol vent s or ot her compounds ut i l i zed,and t he pr oduct t ype and t he t ot al wei ght of t he end pr oduct pr oduced,such as hash oi l , shat t er , t i nctur e, i nf used dai r y but t er , et c. ;

( j ) Transpor t at i on r ecords as descr i bed i n WAC 314- 55- 085;( k) I nvent or y recor ds;( l ) Al l sampl es sent t o an i ndependent t est i ng l ab and t he qual i -

t y assur ance t est r esul t s;( m) Al l f r ee sampl es provi ded t o anot her l i censee f or pur poses of

negot i at i ng a sal e;( n) Al l sampl es used f or t est i ng f or qual i t y by t he pr oducer or

pr ocessor ;

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( o) Sampl e j ar s cont ai ni ng usabl e mar i j uana pr ovi ded t o r et ai l -er s; and

( p) Recor ds of any t hef t of mar i j uana seedl i ngs, cl ones, pl ant s,t r i m or ot her pl ant mat er i al , ext r act , mar i j uana- i nf used pr oduct , orot her i t em cont ai ni ng mar i j uana.

( 2) I f t he mar i j uana l i censee keeps r ecor ds wi t hi n an aut omat eddat a pr ocessi ng (ADP) and/ or poi nt - of - sal e ( POS) syst em, t he syst emmust i ncl ude a met hod f or pr oduci ng l egi bl e r ecor ds t hat wi l l pr ovi de

t he same i nf or mat i on r equi r ed of t hat t ype of r ecor d wi t hi n t hi s sec-t i on. The ADP and/ or POS syst em i s accept abl e i f i t compl i es wi t h t hef ol l owi ng gui del i nes:

( a) Pr ovi des an audi t t r ai l so t hat det ai l s ( i nvoi ces and vouch-ers) under l yi ng t he summary account i ng dat a may be i dent i f i ed and madeavai l abl e upon r equest .

( b) Pr ovi des t he oppor t uni t y t o t r ace any t r ansact i on back t o t heor i gi nal sour ce or f or war d t o a f i nal t ot al . I f pr i nt out s of t r ansac-t i ons ar e not made when they are pr ocessed, t he syst em must have t heabi l i t y t o r econst r uct t hese t r ansact i ons.

( c) Has avai l abl e a f ul l descr i pt i on of t he ADP and/ or POS por -t i on of t he account i ng syst em. Thi s shoul d show t he appl i cat i ons bei ngper f ormed, t he pr ocedur es empl oyed i n each appl i cat i on, and t he con-t r ol s used t o ensur e accur at e and r el i abl e pr ocessi ng.

( 3) The pr ovi si ons cont ai ned i n subsect i ons ( 1) and ( 2) of t hi ssect i on do not el i mi nate t he requi r ement t o mai nt ai n sour ce document s,but t hey do al l ow t he source document s t o be mai ntai ned i n some ot herl ocat i on.

NEW SECTI ON

WAC 314-55-089 What are the tax and reporting requirements for

marijuana licensees? ( 1) Mar i j uana l i censees must submi t mont hl y re-por t ( s) and payment s t o t he boar d. The requi r ed mont hl y repor t s mustbe:

( a) On a f or m or el ect r oni c syst em desi gnat ed by the boar d;( b) Fi l ed ever y mont h, i ncl udi ng mont hs wi t h no act i vi t y or pay-

ment due;( c) Submi t t ed, wi t h payment due, t o t he boar d on or bef ore t he

t went i et h day of each mont h, f or t he pr evi ous mont h. ( For exampl e, ar epor t l i st i ng t r ansact i ons f or t he mont h of J anuar y i s due by Febr u-ary 20t h. ) When the t went i et h day of t he mont h f al l s on a Sat ur day,Sunday, or a l egal hol i day, t he f i l i ng must be post mar ked by t he U. S.Post al Ser vi ce no l at er t han t he next post al busi ness day;

( d) Fi l ed separ at el y f or each mar i j uana l i cense hel d; and

( e) Al l r ecor ds must be mai nt ai ned and avai l abl e f or r evi ew f or at hr ee- year per i od on l i censed pr emi ses ( see WAC 314- 55- 087) .

( 2) Marijuana producer licensees: On a mont hl y basi s, mar i j uanapr oducer s must mai nt ai n r ecor ds and r epor t pur chases f r om ot her l i -censed mar i j uana pr oducer s, cur r ent pr oduct i on and i nvent ory on hand,sal es by pr oduct t ype, and l ost and dest r oyed pr oduct i n a manner pr e-scr i bed by t he boar d.

A mar i j uana pr oducer l i censee must pay t o t he boar d a mar i j uanaexci se t ax of t went y- f i ve per cent of t he sel l i ng pr i ce on each whol e-sal e sal e t o a l i censed mar i j uana pr ocessor.

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( 3) Marijuana processor licensees: On a mont hl y basi s, mar i j uanapr ocessor s must mai nt ai n r ecor ds and r epor t pur chases f r om l i censedmar i j uana pr oducer s, pr oduct i on of mar i j uana- i nf used pr oduct s, sal esby pr oduct t ype t o mar i j uana r et ai l er s, and l ost and/ or dest r oyedpr oduct i n a manner pr escr i bed by t he boar d.

A mar i j uana pr ocessor l i censee must pay t o t he boar d a mar i j uanaexci se t ax of t went y- f i ve per cent of t he sel l i ng pr i ce on each whol e-sal e sal e of usabl e mar i j uana and mar i j uana- i nf used pr oduct t o a l i -

censed mar i j uana ret ai l er .( 4) Marijuana retailer's licensees: On a mont hl y basi s, mar i j uana

r et ai l er s must mai nt ai n r ecor ds and repor t pur chases f r om l i censedmar i j uana pr ocessors, sal es by pr oduct t ype t o consumer s, and l ostand/ or dest r oyed pr oduct i n a manner pr escr i bed by t he boar d.

A mar i j uana ret ai l er l i censee must pay t o t he boar d a mar i j uanaexci se t ax of t went y- f i ve per cent of t he sel l i ng pr i ce on each r et ai lsal e of usabl e mar i j uana or mar i j uana- i nf used pr oduct s.

NEW SECTI ON

WAC 314-55-092 What if a marijuana licensee fails to report orpay, or reports or pays late? ( 1) I f a mar i j uana l i censee does notsubmi t i t s mont hl y r eport s and payment ( s) t o t he boar d as requi r ed i nWAC 314- 55- 089: The l i censee i s subj ect t o penal t i es.

Penalties: A penal t y of t wo percent per mont h wi l l be assessed onany payment s post marked af t er t he t went i et h day of t he mont h f ol l owi ngt he mont h of sal e. When t he t went i eth day of t he mont h f al l s on a Sat -ur day, Sunday, or a l egal hol i day, t he f i l i ng must be post mar ked byt he U. S. Post al Ser vi ce no l at er t han t he next post al busi ness day.

( 2) Fai l ur e t o make a r epor t and/ or pay t he l i cense taxes and/ orpenal t i es i n the manner and dates out l i ned i n WAC 314- 55- 089 wi l l be

suf f i ci ent gr ounds f or t he boar d t o suspend or r evoke a mar i j uana l i -cense.

NEW SECTI ON

WAC 314-55-095 Marijuana servings and transaction limitations.Mar i j uana dosage and t r ansact i on l i mi t at i ons ar e as f ol l ows:

( 1) Single serving. A si ngl e ser vi ng of a mar i j uana- i nf used pr od-uct amount s t o ten mi l l i gr ams act i ve t et r ahydr ocannabi nol ( THC) , orDel t a 9.

( 2) Maximum number of servings. The maxi mum number of ser vi ngs i nany one si ngl e uni t of mar i j uana- i nf used pr oduct meant t o be eaten orswal l owed i s t en servi ngs or one hundr ed mi l l i gr ams of act i ve THC, orDel t a 9. A si ngl e uni t of mar i j uana- i nf used ext r act f or i nhal at i oncannot exceed one gram.

( 3) Transaction limitation. A si ngl e t r ansacti on i s l i mi t ed t oone ounce of usabl e mar i j uana, si xteen ounces of mar i j uana- i nf usedpr oduct i n sol i d f or m, seven gr ams of mar i j uana- i nf used ext r act f ori nhal at i on, and sevent y- t wo ounces of mar i j uana- i nf used pr oduct i nl i qui d f or m f or per sons t went y- one year s of age and ol der .

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NEW SECTI ON

WAC 314-55-097 Marijuana waste disposalLiquids and solids. ( 1)Sol i d and l i qui d wast es gener ated dur i ng mar i j uana pr oduct i on and pr o-cessi ng must be st ored, managed, and di sposed of i n accor dance wi t happl i cabl e st at e and l ocal l aws and r egul at i ons.

( 2) Wast ewat er generat ed dur i ng mar i j uana pr oduct i on and process-

i ng must be di sposed of i n compl i ance wi t h appl i cabl e st at e and l ocall aws and r egul at i ons.

( 3) Wast es f r om t he pr oduct i on and pr ocessi ng of mar i j uana pl ant smust be eval uat ed agai nst t he st ate' s danger ous wast e r egul at i ons( chapt er 173- 303 WAC) t o determi ne i f t hose wast es desi gnat e as dan-ger ous wast e. I t i s t he r esponsi bi l i t y of each wast e gener at or t opr oper l y eval uat e t hei r wast e t o det er mi ne i f i t desi gnat es as a dan-ger ous wast e. I f a gener ator ' s wast e does desi gnate as a danger ouswast e, t hen t hat wast e( s) i s subj ect t o t he appl i cabl e managementst andar ds f ound i n chapter 173- 303 WAC.

( a) Wast es t hat must be eval uat ed agai nst t he dangerous wast er egul at i ons i ncl ude, but ar e not l i mi t ed t o, t he f ol l owi ng:

( i ) Wast e f r om mar i j uana f l ower s, t r i m and sol i d pl ant mat er i alused to cr eat e an ext r act ( per WAC 315- 55- 104) .

( i i ) Wast e sol vent s used i n t he mar i j uana pr ocess ( per WAC315- 55- 104) .

( i i i ) Di scar ded pl ant wast e, spent sol vent s and l abor at or y wast esf r om any mar i j uana pr ocessi ng or qual i t y assur ance t est i ng.

( i v) Mar i j uana ext r act t hat f ai l s t o meet qual i t y t est i ng.( b) Mar i j uana wast es t hat do not desi gnate as danger ous shal l be

managed i n accor dance wi t h subsect i on (4) of t hi s sect i on.( c) A mar i j uana pl ant , usabl e mar i j uana, t r i m and ot her pl ant ma-

t er i al i n i t sel f i s not consi der ed danger ous wast e as def i ned underchapt er 173- 303 WAC unl ess i t has been t r eat ed or cont ami nat ed wi t h asol vent .

( 4) Mar i j uana wast e t hat does not desi gnat e as dangerous wast e( per subsect i on ( 3) of t hi s sect i on) must be r ender ed unusabl e f ol l ow-i ng t he met hods i n subsect i on ( 5) of t hi s sect i on pr i or t o l eavi ng al i censed pr oducer , pr ocessor , r et ai l f aci l i t y, or l abor at or y. Di sposalof t he mar i j uana wast e render ed unusabl e must f ol l ow t he met hods undersubsect i on ( 6) of t hi s sect i on.

( a) Wast es t hat must be render ed unusabl e pr i or t o di sposal i n-cl ude, but ar e not l i mi t ed t o, t he f ol l owi ng:

( i ) Wast e eval uat ed per subsect i on ( 3) of t hi s sect i on and det er -mi ned t o not desi gnat e as " Danger ous Wast e. "

( i i ) Mar i j uana pl ant wast e, i ncl udi ng r oot s, st al ks, l eaves, andst ems t hat have not been pr ocessed wi t h sol vent .

( i i i ) Sol i d mar i j uana sampl e pl ant wast e possessed by t hi r d- par t y

l abor at or i es accr edi t ed by t he boar d t o test f or qual i t y assur ancet hat must be di sposed of .

( i v) Ot her wast es as det ermi ned by t he LCB.( b) A pr oducer or pr ocessor must pr ovi de the boar d a mi ni mum of

sevent y- t wo hour s not i ce i n t he t r aceabi l i t y syst em descr i bed i n WAC314- 55- 083( 4) pr i or t o render i ng the pr oduct unusabl e and di sposi ng ofi t .

( 5) The al l owabl e method t o r ender mar i j uana pl ant wast e unusabl ei s by gr i ndi ng and i ncor por at i ng t he mar i j uana pl ant wast e wi t h ot hergr ound mat er i al s so t he r esul t i ng mi xt ur e i s at l east f i f t y per cent

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nonmar i j uana wast e by vol ume. Ot her met hods t o r ender mar i j uana wast eunusabl e must be approved by LCB bef or e i mpl ement at i on.

Mat er i al used t o gr i nd wi t h t he mar i j uana f al l s i nt o t wo cat ego-r i es: Compost abl e wast e and noncompost abl e wast e.

( a) Compost abl e mi xed wast e: Mar i j uana wast e t o be di sposed ascompost f eedst ock or i n anot her organi c wast e method ( f or exampl e,anaer obi c di gest er) may be mi xed wi t h t he f ol l owi ng t ypes of wast e ma-t er i al s:

( i ) Food wast e;( i i ) Yar d wast e;( i i i ) Veget abl e based gr ease or oi l s; or( i v) Ot her wast es as appr oved by t he LCB.( b) Noncompost abl e mi xed wast e: Mar i j uana wast e t o be di sposed i n

a l andf i l l or anot her di sposal met hod ( f or exampl e, i nci ner at or ) maybe mi xed wi t h t he f ol l owi ng t ypes of wast e mat er i al s:

( i ) Paper wast e;( i i ) Car dboar d wast e;( i i i ) Pl ast i c waste;( i v) Soi l ; or( v) Ot her wast es as appr oved by t he LCB.( 6) Mar i j uana wast es r endered unusabl e f ol l owi ng t he method de-

scr i bed i n subsect i on ( 4) of t hi s sect i on can be di sposed.( a) Di sposal of t he mar i j uana wast e rendered unusabl e may be de-

l i ver ed t o a per mi t t ed sol i d wast e f aci l i t y f or f i nal di sposi t i on. Ex-ampl es of accept abl e per mi t t ed sol i d wast e f aci l i t i es i ncl ude:

( i ) Compost abl e mi xed wast e: Compost , anaer obi c di gest er , or oth-er f aci l i t y wi t h appr oval of t he j ur i sdi ct i onal heal t h depar t ment .

( i i ) Noncompost abl e mi xed wast e: Landf i l l , i nci ner at or , or ot herf aci l i t y wi t h appr oval of t he j ur i sdi ct i onal heal t h depar t ment .

( b) Di sposal of t he mar i j uana wast e render ed unusabl e may be man-aged on- si t e by the generator i n accor dance wi t h t he st andards ofchapt er 173- 350 WAC.

( c) A r ecor d of t he f i nal dest i nat i on of mar i j uana wast e r ender ed

unusabl e.

NEW SECTI ON

WAC 314-55-099 Standardized scales. ( 1) Mar i j uana pr oducer andpr ocessor l i censees must have at l east one scal e on t he l i censed pr em-i ses f or t he t r aceabi l i t y and i nvent or y of pr oduct s.

( 2) The scal es and ot her measur i ng devi ces ar e subj ect t o chapt er19. 94 RCW, and must meet t he r equi r ement s of t he most cur r ent versi onof chapt er s 16- 662 and 16- 664 WAC.

( 3) Li censees must r egi st er scal es on a busi ness l i cense appl i ca-t i on wi t h busi ness l i cense ser vi ces t hr ough t he depar t ment of r evenueas r equi r ed under chapter 19. 94 RCW.

NEW SECTI ON

WAC 314-55-102 Quality assurance testing. ( 1) A per son wi t h f i -nanci al i nt er est i n an accredi t ed t hi r d- par t y t est i ng l ab may not have

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di r ect or i ndi r ect f i nanci al i nt er est i n a l i censed mar i j uana pr oduceror pr ocessor f or whom t hey ar e conduct i ng r equi r ed qual i t y assurancetests.

( 2) As a condi t i on of accredi t at i on, each l ab must empl oy a sci -ent i f i c di r ect or r esponsi bl e t o ensur e t he achi evement and mai nt enanceof qual i t y st andar ds of pr act i ce. The sci ent i f i c di r ect or shal l meett he f ol l owi ng mi ni mum qual i f i cat i ons:

( a) Has ear ned, f r om a col l ege or uni ver si t y accredi t ed by a na-

t i onal or r egi onal cer t i f yi ng aut hor i t y a doct or at e i n t he chemi cal orbi ol ogi cal sci ences and a mi ni mum of t wo year s' post - degr ee l abor at or yexper i ence; or

( b) Has ear ned a mast er ' s degr ee i n the chemi cal or bi ol ogi calsci ences and has a mi ni mum of f our year s' of post - degr ee l aborat or yexper i ence; or

( c) Has ear ned a bachel or ' s degr ee i n t he chemi cal or bi ol ogi calsci ences and has a mi ni mum of si x year s of post - educat i on l aborat or yexper i ence.

( 3) As a condi t i on of accredi t at i on, l abs must f ol l ow t he mostcur r ent ver si on of t he Cannabi s I nf l orescence and Leaf monogr aph pub-l i shed by t he American Herbal Pharmacopoeia or not i f y t he boar d whatal t er nat i ve sci ent i f i cal l y val i d t est i ng met hodol ogy t he l ab i s f ol -l owi ng f or each qual i t y assurance t est . The boar d may r equi r e t hi r d-part y val i dat i on of any monogr aph or anal yt i cal met hod f ol l owed by thel ab t o ensur e t he met hodol ogy pr oduces sci ent i f i cal l y accur at e r esul t spr i or t o t hem usi ng t hose st andar ds when conduct i ng r equi r ed qual i t yassurance t est s.

( 4) As a condi t i on of accredi t at i on, t he boar d may r equi r e t hi r d-par t y val i dat i on and ongoi ng moni t or i ng of a l ab' s basi c pr of i ci encyt o cor r ect l y execut e t he anal yt i cal met hodol ogi es empl oyed by t he l ab.

( 5) Labs must adopt and f ol l ow mi ni mum good l ab pr act i ces ( GLPs) ,and mai nt ai n i nt er nal st andar d oper at i ng pr ocedur es ( SOPs) , and aqual i t y cont r ol / qual i t y assur ance ( QC/ QA) pr ogr am as speci f i ed by t heboar d. The boar d or aut hor i zed t hi r d- par t y or gani zat i on can conduct

audi t s of a l ab' s GLPs, SOPs, QC/ QA, and i nspect al l ot her r el at ed r e-cor ds.( 6) The gener al body of r equi r ed qual i t y assurance t est s f or mar -

i j uana f l ower s, i nf used pr oduct s, and ext r act s may i ncl ude moi st ur econt ent , pot ency anal ysi s, f or ei gn mat t er i nspect i on, mi crobi ol ogi calscr eeni ng, pest i ci de and ot her chemi cal r esi due and met al s scr eeni ng,and r esi dual sol vent s l evel s.

( 7) Tabl e of r equi r ed qual i t y assur ance t est s.

Product Test(s) Required Sample Size Needed to Complete all Tests

Flowers to be sold as usable marijuana (see notebelow)

1. Moisture content2. Potency analysis3. Foreign matter inspection4. Microbiological screening

Up to 7 grams

Flowers to be used to make an extract (nonsol-

vent) like kief, hashish, bubble hash, or infuseddairy butter, or oils or fats derived from naturalsources

None None

Extract (nonsolvent) like kief, hashish, bubblehash or infused dairy butter, or oils or fats de-rived from natural sources

1. Potency analysis2. Foreign matter inspection3. Microbiological screening

Up to 7 grams

Flowers to be used to make an extract (solventbased), made with a CO2 extractor, or with afood grade ethanol or glycerin

1. Foreign matter inspection2. Microbiological screening

Up to 7 grams

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Product Test(s) Required Sample Size Needed to Complete all Tests

Extract (solvent based) made using n-butane,isobutane, propane, heptane, or other solvents orgases approved by the board of at least 99% pu-rity

1. Potency analysis2. Residual solvent test3. Microbiological screening (only if usingflowers and other plant material that failed ini-tial test)

Up to 2 grams

Extract made with a CO2 extractor like hash oil 1. Potency analysis2. Microbiological screening (only if usingflowers and other plant material that failed ini-tial test)

Up to 2 grams

Extract made with food grade ethanol 1. Potency analysis2. Microbiological screening (only if usingflowers and other plant material that failed ini-tial test)

Up to 2 grams

Extract made with food grade glycerin or propy-lene glycol

1. Potency analysis Up to 1 gram

Infused edible 1. Potency analysis2. Microbiological screening

1 unit

Infused liquid like a soda or tonic 1. Potency analysis2. Microbiological screening

1 unit

Infused topical 1. Potency analysis 1 unit

( 8) I ndependent t est i ng l abs may r equest addi t i onal sampl e mate-r i al i n excess of amount s l i st ed i n t he t abl e i n subsect i on ( 7) oft hi s sect i on f or t he pur poses of compl et i ng r equi r ed qual i t y assur ance

t est s. Labs meet i ng t he boar d' s accr edi t at i on requi r ement s may r e-t r i eve sampl es f r om a mar i j uana l i censee' s l i censed pr emi ses andt r anspor t t he sampl es di r ect l y t o t he l ab.

( 9) Labs meet i ng the boar d' s accr edi t at i on requi r ement s ar e notl i mi t ed i n t he amount of useabl e mar i j uana and mar i j uana pr oduct s t heymay have on t hei r premi ses at any gi ven t i me, but t hey must have r e-cor ds t o pr ove al l mar i j uana and mar i j uana- i nf used pr oduct s onl y f ort he t est i ng pur poses descr i bed i n WAC 314- 55- 102.

( 10) At t he di scr et i on of t he boar d, a pr oducer or pr ocessor mustpr ovi de an empl oyee of t he boar d or t hei r desi gnee sampl es i n theamount l i st ed i n subsect i on ( 7) of t hi s sect i on f or r andom compl i ancechecks. Sampl es may be scr eened f or pest i ci des and chemi cal r esi dues,unsaf e l evel s of met al s, and used f or ot her qual i t y assur ance t est s

deemed necessar y by t he board. Al l cost s of t hi s t est i ng wi l l be bor neby t he pr oducer or pr ocessor .

( 11) No l ot of usabl e f l ower or bat ch of mar i j uana- i nf used pr od-uct may be sol d or t r anspor t ed unt i l t he compl et i on of al l r equi r edqual i t y assur ance t est i ng.

( 12) Any useabl e mar i j uana or mar i j uana- i nf used pr oduct t hatpassed t he r equi r ed qual i t y assur ance t est s may be l abel ed as "Cl assA. " Onl y "Cl ass A" useabl e mar i j uana or mar i j uana- i nf used pr oduct wi l lbe al l owed t o be sol d.

( 13) I f a l ot of mar i j uana f l ower s f ai l a qual i t y assur ance t est ,any mar i j uana pl ant t r i m, l eaf and ot her usabl e mat er i al f r om t he samepl ant s aut omat i cal l y f ai l s qual i t y assur ance t est i ng al so. Upon appr o-val of t he boar d, a l ot t hat f ai l s a qual i t y assur ance t est may beused t o make a CO2 or sol vent based ext r act . Af t er pr ocessi ng, t he CO2or sol vent based ext r act must st i l l pass al l r equi r ed qual i t y assur -ance t est s i n WAC 314- 55- 102.

( 14) At t he r equest of t he pr oducer or pr ocessor , t he boar d mayaut hor i ze a r et est t o val i dat e a f ai l ed t est r esul t on a case- by- casebasi s. Al l cost s of t he r et est wi l l be bor ne by t he pr oducer or t hepr ocessor .

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NEW SECTI ON

WAC 314-55-104 Marijuana processor license extraction require-ments. ( 1) Pr ocessors are l i mi t ed t o cer t ai n met hods, equi pment , sol -vent s, gases and medi ums when cr eat i ng mar i j uana ext r act s.

( 2) Processors may use t he hydr ocar bons N- but ane, i sobut ane, pr o-pane, or hept ane or ot her sol vent s or gases exhi bi t i ng l ow t o mi ni mal

pot ent i al human heal t h- r el at ed t oxi ci t y appr oved by t he boar d. Thesesol vent s must be of at l east ni net y- ni ne per cent pur i t y and a pr ocess-or must use them i n a pr of essi onal gr ade cl osed l oop ext r act i on syst emdesi gned t o recover t he sol vent s, work i n a spark f r ee envi r onmentwi t h pr oper vent i l at i on, and f ol l ow al l appl i cabl e l ocal f i r e, saf et yand bui l di ng codes i n pr ocessi ng and t he st or age of t he sol vent s.

( 3) Processors may use a pr of essi onal gr ade cl osed l oop CO2 gasext r act i on syst em wher e ever y vessel i s r at ed t o a mi ni mum of ni nehundr ed pounds per squar e i nch and f ol l ow al l appl i cabl e l ocal f i r e,saf et y and bui l di ng codes i n pr ocessi ng and t he st or age of t he sol -vent s. The CO2 must be of at l east ni net y- ni ne per cent pur i t y.

( 4) Pr ocessor s may use heat , screens, pr esses, st eam di st i l l a-

t i on, i ce wat er , and other met hods wi t hout empl oyi ng sol vent s or gasest o creat e ki e

Proposed Rules 9-4-13

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Transcript of Proposed Rules 9-4-13