The 1997 Washington Hemp Intiative

Shall the industrial, medicinal, and personal use of hemp (cannabis or marijuana) be permitted under some conditions, taxed, and regulated by the liquor control board?

OFFICIAL BALLOT SUMMARY:

This measure would regulate and permit the possession of hemp (cannabis or marijuana) for industrial purposes, medicinal use requiring physician prescription, and personal use by adults over twenty-one. Growing, selling, and using intoxicating hemp would be restricted to places not accessible to minors. Advertising would be restricted. Taxes would be levied on production and sale. The liquor control board would be authorized to license and regulate production, sale, and use. Criminal penalties would be revised.

BRIEF TITLE:

AN ACT Relating to regulation and taxation of hemp; amending RCW 69.50.101, 69.50.102, 69.50.201, 69.50.204, 69.50.206, 69.50.401, 69.50.408, 69.50.410, 69.50.414, 69.50.435, 69.50.505, and 69.52.030; adding a new chapter to Title 66 RCW; creating new sections; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

• PART 1--DEFINITIONS
• PART 2--ADMINISTRATION
• PART 3--TAXATION AND TAX STAMPS
• PART 4--LICENSING
• PART 5--MINORS
• PART 6--LOCAL OPTION
• PART 7--MISCELLANEOUS REGULATORY PROVISIONS
• PART 8--ENFORCEMENT--PENALTIES
• PART 9--REVISIONS
• PART 10--CONSTRUCTION

NEW SECTION 101. DEFINITIONS The definitions in this section apply throughout this chapter unless the context requires otherwise.

1. "Adult" means a person that is twenty-one years of age or older.
2. "Board" means the Washington state liquor control board, as defined in Title 66 RCW.
3. "Hemp" means any form of the cannabis plant including, but not limited to, leaves, flowers, stems, stalks, seeds, and resin. Hemp is commonly referred to as "marijuana."
4. "Industrial hemp" means any hemp or hemp product containing one percent or less THC.
5. "Intoxicating hemp" means any hemp containing over one percent of the psychoactive chemical compound THC. "Intoxicating hemp" does not include "medicinal hemp."
6. "Intoxicating hemp establishment" means an establishment with special space and accommodation for sale and consumption of intoxicating hemp or intoxicating hemp products on the premises not in violation of this title.
7. "Intoxicating and medicinal hemp product" means any hemp product containing over one percent of the psychoactive chemical compound THC.
8. "Intoxicating and medicinal hemp grower" means a person who grows intoxicating or medicinal hemp for the purpose of selling the hemp not in violation of this title.
9. "Intoxicating and medicinal hemp manufacturer" means a person who produces intoxicating or medicinal hemp products for the purpose of selling them not in violation of this title.
10. "Intoxicating and medicinal hemp wholesaler" means a person who buys intoxicating or medicinal hemp or intoxicating or medicinal hemp products from a grower, manufacturer, wholesaler, pharmacy, drug store, state liquor store, intoxicating hemp establishment, or the board for the purposes of selling it to a pharmacy, drug store, wholesaler, manufacturer, state liquor store, intoxicating hemp establishment, or the board, or who represents the wholesaler as agent not in violation of this title.
11. "Medicinal hemp" means any hemp or hemp product containing over one percent THC that is sold:
    1. From a holder of an intoxicating and medicinal hemp grower's, manufacturer's, or wholesaler's license to a drug store or pharmacy; or
    2. from a drug store or pharmacy to individuals with a medicinal hemp prescription.
12. "Medicinal hemp prescription" means a memorandum signed by a physician given by the physician to a patient authorizing the patient to obtain medicinal hemp or medicinal hemp products under this title for medicinal purposes.
13. "Minor" means a person under twenty-one years of age.
14. "Package" means a sealed container or receptacle used for holding intoxicating or medicinal hemp or intoxicating or medicinal hemp products.
15. "Personal use quantity" is the amount of intoxicating hemp that an adult can grow and retain for the adult's own personal use each year without a license.
16. "Public places" has the same meaning as defined in RCW 66.04.010 and 66.04.011.
17. "Retail sale" means the sale of intoxicating or medicinal hemp or intoxicating or medicinal hemp products to the general public.
18. "Sale" means the sale of intoxicating or medicinal hemp or intoxicating or medicinal hemp products to a holder of a grower's, manufacturer's, or wholesaler's license, or to a pharmacy, drug store, state liquor store, the board, or intoxicating hemp establishment.
19. "Stamp" means the stamp or stamps by use of which the board administers the production tax levy under this chapter.
20. "THC" means the psychoactive chemical compound THC (the tetrahydrocannabinols) or any of its analogs.

NEW SECTION 201. ROLE OF LIQUOR CONTROL BOARD.

1. The administration of this chapter is vested in the board.
2. For the purpose of carrying into effect this chapter according to its true intent or of supplying any deficiency in this chapter, the board may adopt such rules as are consistent with the spirit of this chapter as are deemed necessary or advisable.

NEW SECTION 301. TAX ON PRODUCTION.

1. There is levied and shall be collected, as provided in this section, a one time tax on production in an amount equal to the rate of twenty dollars per ounce upon intoxicating or medicinal hemp when it is sold or transferred from a grower to a holder of an intoxicating and medicinal hemp grower's, manufacturer's, wholesaler's, or establishment's license, or to pharmacies, drug stores, state liquor stores, or the board.
2. There is levied and shall be collected, as provided in this section, a tax upon the importation of intoxicating or medicinal hemp or intoxicating or medicinal products in an amount equal to the rate of twenty dollars per packaged ounce.
3. It is the responsibility of the intoxicating and medicinal hemp grower or importer to pay the tax on production.
4. In order to enforce collection of the tax levied under this section, the board shall design and have printed stamps of such size and denominations as may be determined by the board and administered in a manner to ensure the tax has been collected.

1. There is levied and shall be collected as provided in this section, a tax upon each retail sale of intoxicating hemp or intoxicating hemp products at the rate of 19.7 percent of the selling price.
2. The taxes imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable retail sale under this section.

1. Twenty-five percent of the tax revenues raised under this chapter shall be deposited in the health services account created under RCW 43.72.900.
2. The balance of the tax revenues raised under this chapter shall be deposited in the state general fund.

NEW SECTION 401. PERSONAL USE QUANTITY EXEMPTION. An adult may, without a license, cultivate and harvest a personal use quantity of intoxicating hemp that was cultivated without a license and on which taxes need not be paid. Cultivation or harvest of more than a personal use quantity of intoxicating hemp by a person without a license in violation of section 704 of this act is prohibited. This section does not limit the amount of intoxicating or medicinal hemp an adult may purchase and possess not in violation of this title.

NEW SECTION 402. INTOXICATING AND MEDICINAL HEMP GROWER LICENSE.

1. There shall be a grower's license to grow intoxicating and medicinal hemp and sell it to holders of intoxicating and medicinal hemp grower's, manufacturer's, wholesaler's, or establishment's licenses, and to pharmacies, drug stores, state liquor stores, and the board.
2. The annual fee for a grower's license shall be seventy-five dollars.

1. There shall be a manufacturer's license to produce intoxicating or medicinal hemp products and sell them to holders of intoxicating and medicinal hemp grower's, manufacturer's, wholesaler's, or establishment's licenses, and to pharmacies, drug stores, state liquor stores, and the board.
2. This license also allows the manufacturer to purchase intoxicating or medicinal hemp from licensed intoxicating and medicinal hemp grower's, wholesaler's, or the board.
3. The annual fee for a manufacturer's license shall be seventy-five dollars.

1. There shall be a wholesaler's license to buy intoxicating or medicinal hemp or intoxicating or medicinal hemp products and sell them to holders of intoxicating and medicinal hemp grower's, manufacturer's, wholesaler's, or establishment's licenses, and to pharmacies, drug stores, state liquor stores, and the board.
2. The annual fee for a wholesaler's license shall be five hundred dollars for each distributing unit.

1. There shall be an intoxicating hemp establishment's license to sell intoxicating hemp to the general public not in violation of this chapter.
2. A holder of an intoxicating hemp establishment license may buy intoxicating hemp or intoxicating hemp products from holders of an intoxicating and medicinal hemp grower's, manufacturer's, wholesaler's, or establishment's license, state liquor stores, and the board.
3. It is the responsibility of the intoxicating hemp establishment to collect and provide to the board the tax on retail sale of intoxicating hemp under this chapter.
4. The annual fee for an intoxicating hemp establishment license shall be two thousand dollars.
5. The board shall determine all other conditions placed on the issuance of intoxicating hemp establishment licenses including restrictions on location and number of licenses granted according to the same restrictions placed on class H liquor licenses in RCW 66.24.420.

NEW SECTION 501. MINORS' RESTRICTIONS TO INTOXICATING HEMP. A minor may not use, possess, purchase, or attempt to purchase intoxicating hemp or intoxicating hemp products.

NEW SECTION. Sec. 502. MINORS' RESTRICTIONS TO MEDICINAL HEMP. A minor may not use, possess, purchase, or attempt to purchase medicinal hemp or medicinal hemp products except a minor who has been prescribed medicinal hemp or medicinal hemp products by a licensed physician.

NEW SECTION. Sec. 503. ACCEPTABLE IDENTIFICATION. If there might be a question of a person's right to purchase intoxicating or medicinal hemp or intoxicating or medicinal hemp products by reason of age, the person must be required to present valid identification as required under chapter 66.20 RCW.

NEW SECTION. Sec. 504. PENALTIES APPLIED TO MINORS. A minor who is convicted of a violation of section 501 or 502 of this act is guilty of a misdemeanor punishable as provided by RCW 9A.20.021.

NEW SECTION 601. ENACTMENT OF LOCAL REGULATION OPTION. Within any local option unit as defined in RCW 66.40.010, there may be held a separate election upon the question of whether the sale of intoxicating hemp or intoxicating hemp products under an intoxicating hemp establishment license shall be permitted within the unit.

NEW SECTION. Sec. 602. ADMINISTRATION OF LOCAL REGULATION OPTION. The conditions and procedure for holding an election and administering the local option under section 601 of this act shall be the same as under chapter 66.40 RCW.

NEW SECTION 701. INDUSTRIAL HEMP REGULATIONS. Industrial hemp shall be regulated as any other nonintoxicating agricultural commodity and shall not be treated as a controlled substance.

NEW SECTION. Sec. 702. INTOXICATING HEMP REGULATIONS.

1. The consumption of intoxicating hemp or intoxicating hemp products in public places shall be limited to intoxicating hemp establishments.
2. The sale or consumption of alcohol is prohibited in intoxicating hemp establishments.
3. The retail sale of intoxicating hemp or intoxicating hemp products is limited to intoxicating hemp establishments and state liquor stores.
4. Intoxicating and medicinal hemp must be grown indoors with restrictions on entry. Access by minors is prohibited.
5. Intoxicating and medicinal hemp plants must be grown out of public view. For greenhouses in public view where intoxicating and medicinal hemp are grown, nontransparent material must be used on the sides and roof.

1. The retail sale of medicinal hemp or medicinal hemp products is limited to drug stores and pharmacies.
2. Medicinal hemp and medicinal hemp products are hereby restored to the list of available medicines in Washington state. Licensed physicians shall not be penalized for, nor restricted from, prescribing medicinal hemp or medicinal hemp products for medical purposes to any patient.

1. The personal use quantity of intoxicating hemp is twelve ounces or less of intoxicating hemp that is harvested and retained per year per adult.
2. No more than five intoxicating hemp plants per adult may be growing at any given time.
3. On harvest of any given personal use quantity hemp plant the owner must set aside the personal use quantity amount to be retained and the rest of the intoxicating hemp portion of the plant must be rendered uningestible and discarded in a responsible manner within two weeks of the date of harvest.
4. The amount of intoxicating or medicinal hemp or intoxicating or medicinal hemp products possessed by an adult that was purchased not in violation of this title is not limited.

1. A person who is in a position to profit from the sale of intoxicating or medicinal hemp or intoxicating or medicinal hemp products may not create, display, perform, or distribute advertising or promotional material for intoxicating or medicinal hemp or intoxicating or medicinal hemp products within the state of Washington, other than:
   1. In medical journals directed to and distributed principally to licensed physicians;
   2. In catalogs directed to and distributed solely to adults;
   3. In magazines directed to and distributed solely to adults;
   4. Package labeling;
   5. Point-of-sale advertising on the premises of sellers of intoxicating or medicinal hemp or intoxicating or medicinal hemp products presented so that it cannot be perceived by minors; and
   6. On the exterior of stores where intoxicating or medicinal hemp or intoxicating or medicinal hemp products are sold, a sign indicating with words only that intoxicating or medicinal hemp or intoxicating or medicinal hemp products are sold in the store, or words to that effect, but not otherwise depicting or promoting intoxicating or medicinal hemp or intoxicating or medicinal hemp products or its use. By local option, a local government may prohibit advertising on the exterior of a store where intoxicating or medicinal hemp or intoxicating or medicinal hemp products are sold.
2. For the purposes of this section, a "person in a position to profit from the sale of intoxicating or medicinal hemp or intoxicating or medicinal hemp products" is a business enterprise that, for pay or other consideration, cultivates, processes, transports, or sells intoxicating or medicinal hemp or intoxicating or medicinal hemp products, or whose property is used for cultivation, processing, transport, or sale of intoxicating or medicinal hemp or intoxicating or medicinal hemp products, or a beneficial owner of a five percent or greater interest in such an enterprise.
3. A violation of this section is punishable by a fine of up to five thousand dollars or four times the amount paid to procure the advertising in violation of this section, whichever is greater.

NEW SECTION 801. ROLE OF STATE AGENCIES. State agencies shall refrain from enforcing any provision of United States criminal law not consistent with the purposes of this chapter.

NEW SECTION. Sec. 802. FURNISHING INTOXICATING OR MEDICINAL HEMP TO MINORS.

1. It is unlawful for a person to sell, give, or otherwise supply intoxicating hemp or intoxicating hemp products to a minor.
2. It is unlawful for a person to sell, give, or otherwise supply medicinal hemp or medicinal hemp products to a minor who is not in possession of a medicinal hemp prescription.

NEW SECTION. Sec. 804. CONSUMING INTOXICATING HEMP IN PUBLIC PLACES. Except as permitted by this chapter, a person may not consume intoxicating hemp or intoxicating hemp products in a public place. A person who violates this section is guilty of a misdemeanor, and on conviction must be fined not more than one hundred dollars.

NEW SECTION. Sec. 805. UNLAWFUL SALE OF INTOXICATING OR MEDICINAL HEMP. A person who shall sell or offer for sale, or transport in any manner, any intoxicating or medicinal hemp or intoxicating or medicinal hemp products upon which the tax on production has not been paid is guilty of a gross misdemeanor and upon conviction thereof shall upon the person's first conviction be fined not more than five hundred dollars and confined in the county jail not more than six months, and upon a second and subsequent conviction shall be fined not more than one thousand dollars and confined in the county jail not more than one year. The transport of a "personal use quantity" of intoxicating hemp upon which taxes need not be paid is an exception to this provision as long as the "personal use quantity" of intoxicating hemp is kept in the trunk of the vehicle or in some other area of the vehicle not normally occupied by the driver or passengers if the vehicle does not have a trunk. A utility compartment or glove compartment is deemed to be within the area occupied by the driver and passengers.

NEW SECTION. Sec. 806. ACTING WITHOUT LICENSE. A person doing an act required to be licensed under this chapter without having in force a license issued to the person is guilty of a gross misdemeanor.

NEW SECTION. Sec. 807. BUYING INTOXICATING OR MEDICINAL HEMP ILLEGALLY. If an unlicensed person buys intoxicating or medicinal hemp or intoxicating or medicinal products from a person other than the board, a state liquor store, a pharmacy, a drug store, a licensed intoxicating hemp establishment, or a person authorized by the board, the person is guilty of a misdemeanor.

NEW SECTION. Sec. 808. GENERAL PENALTIES. A person guilty of a violation of this title for which a penalty has not been specifically provided is liable, on conviction: For a first offense, for a penalty of not more than five hundred dollars, or for imprisonment for not more than two months, or both; for a second offense, for imprisonment for not more than six months; and for a third or subsequent offense, for imprisonment for not more than one year. If the offender convicted of an offense referred to in this section is a corporation, the offender is liable for a first offense for a penalty of not more than five thousand dollars, and for a second or subsequent offense, for a penalty of not more than ten thousand dollars or for forfeiture of its corporate license, or both.

NEW SECTION. Sec. 809. JURISDICTION OF COURTS. Every district judge and municipal judge has concurrent jurisdiction with superior court judges for all violations of this chapter and may impose any punishment provided for the violations.

NOTE: PART 9 contains the revisions to RCW 69.50, The Uniform Controlled Substances Act. Actual initiative text must contain complete sections and as a result is very long. This is a summary of the changes with links to the actual revised text.

RCW 69.50.101 Definitions. is revised by adding the following bold text to the definition of "controlled substance":

(d) "Controlled substance" means a drug substance, or immediate precursor included in Schedules I through V as set forth in federal or state laws, or federal or board rules unless exempted in section 1001 of this act.

and removing the following bold text:

• "Marijuana" or "marihuana" means all parts of the plant Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.

• Separation gins and sifters used, intended for use, or designed for use in removing twigs and seeds from, or in otherwise cleaning or refining, marihuana;
• Objects used, intended for use, or designed for use in ingesting, in haling, or otherwise introducing marihuana, cocaine , hashish, or hashish oil into the human body, such as:
  • hashish heads
  • Roach clips: Meaning objects used to hold burning material, such as a marihuana cigarette, that has become too small or too short to be held in the hand; bongs
• (11) Whether the owner, or anyone in control of the object, is a legitimate supplier of like or related items to the community, such as a licensed distributor or dealer of tobacco or hemp products.

RCW 69.50.201 Enforcement of chapter--Authority to change schedules of controlled substances. is revised by adding the following bold text:

• Authority to control under this section does not extend to distilled spirits, wine, malt beverages, hemp (commonly referred to as "marijuana") as defined in section 101 of this act or tobacco as those terms are defined or used in Titles 66 and 26 RCW.

• Dronabinol (synthetic) in sesame oil and encapsulated in a soft gelatin capsule in a United States Food and Drug Administration approved drug product. (Some other names for dronabinol [6aR-trans]-6a,7,8,10a-tetrahydro-6,6,9-trimethyl-3-pentyl-6H-dibenzo[b,d]pyran-i-ol, or (-)-delta-9-(trans)-tetrahydrocannabinol.)

• Except as provided for in subsection (a)(1)(ii) of this section any person found guilty of possession of forty grams or less of marihuana shall be guilty of a misdemeanor.

• For purposes of this section, an offense is considered a second or subsequent offense, if, prior to his conviction of the offense, the offender has at any time been convicted under this chapter or under any statute of the United States or of any state relating to narcotic drugs, marihuana, depressant, stimulant, or hallucinogenic drugs.

• Except as authorized by this chapter it shall be unlawful for any person to sell for profit any controlled substance or counterfeit substance classified in Schedule I, RCW 69.50.204, except leaves and flowering tops of marihuana.

• No conveyance is subject to forfeiture under this section if used in the receipt of only an amount of marijuana for which possession constitutes a misdemeanor under RCW 69.50.401(e);
• The possession of marijuana shall not result in the forfeiture of real property unless the marijuana is possessed for commercial purposes, the amount possessed is five or more plants or one pound or more of marijuana, and a substantial nexus exists between the possession of marijuana and the real property. In such a case, the intent of the offender shall be determined by the preponderance of the evidence, including the offender's prior criminal history, the amount of marijuana possessed by the offender, the sophistication of the activity or equipment used by the offender, and other evidence which demonstrates the offender's intent to engage in commercial activity;
• The unlawful sale of marijuana or a legend drug shall not result in the forfeiture of real property unless the sale was forty grams or more in the case of marijuana or one hundred dollars or more in the case of a legend drug, and a substantial nexus exists between the unlawful sale and the real property; and

NEW SECTION. Sec. 1001. HEMP EXEMPTION. This act means that "hemp," as defined in section 101 of this act, is not a "controlled substance," as defined in chapter 69.50 RCW. The regulation of hemp is defined by this chapter.

NEW SECTION. Sec. 1101. INTENT. No provision of this act may be executed in a manner that violates the intent of this act to end hemp prohibition in Washington state.

NEW SECTION. Sec. 1102. SEVERABILITY. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 1103. PART HEADINGS AND CAPTIONS NOT LAW. Part headings and captions used in this act do not constitute any part of the law.

NEW SECTION. Sec. 1104. CODIFICATION. Sections 101 through 809, 1001, and 1101 through 1103, of this act constitute a new chapter in Title 66 RCW.