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; prescribing penalties.

BE IT ENACTED BY THE PEOPLE 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, the leaves, flowers, stems, stalks, seeds and resin. Hemp is commonly referred to as "marijuana."
4. "Hemp paraphernalia" is paraphernalia designed for use in smoking intoxicating or medicinal hemp.
5. "Industrial hemp" means any hemp containing .5 percent or less THC.
6. "Intoxicating hemp" means hemp containing over .5 percent of the psychoactive chemical compound THC. "Intoxicating hemp" does not include "medicinal hemp."
7. "Intoxicating hemp establishment" means an establishment with special space and accommodation for sale and consumption of intoxicating hemp on the premises not in violation of this title.
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 wholesaler" means a person who buys either or both intoxicating and medicinal hemp from a grower, wholesaler, pharmacy, drug store, state liquor store, intoxicating hemp establishment, or the board for the purposes of selling either or both intoxicating and medicinal hemp to a pharmacy, drug store, wholesaler, state liquor store, intoxicating hemp establishment, or the board, or who represents the wholesaler as agent not in violation of this title.
10. "Medicinal hemp" means hemp containing over .5 percent THC that is sold:
    1. From a licensed intoxicating and medicinal hemp grower or wholesaler to a drug store or pharmacy; or
    2. from a drug store or pharmacy to individuals with a medicinal hemp prescription.
11. "Medicinal hemp prescription" means a memorandum signed by a physician given by the physician to a patient authorizing the patient to obtain medicinal hemp under this title for medicinal purposes.
12. "Minor" means a person under twenty-one years of age.
13. "Package" means a sealed container or receptacle used for holding medicinal or intoxicating hemp.
14. "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.
15. "Public places" has the same meaning as defined in RCW 66.04.010 and 66.04.011.
16. "Retail sale" means the sale of medicinal or intoxicating hemp to the general public.
17. "Sale" means the sale of medicinal or intoxicating hemp to a licensed grower, wholesaler, pharmacy, drug store, state liquor store, the board, or intoxicating hemp establishment.
18. "Stamp" means the stamp or stamps by use of which the production tax levy under this chapter is paid.
19. "THC" means the psychoactive chemical compound THC (the tetrahydrocannabinols).

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 tax upon the production of intoxicating and medicinal hemp in an amount equal to the rate of twenty dollars per packaged ounce.
2. 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 department. The stamps must be affixed on the smallest container or package that will be handled, sold, used, consumed, or distributed, to permit the department to readily ascertain by inspection, whether or not the tax has been paid.
3. Stamps shall be affixed in such a manner as they cannot be removed from the package or container without being mutilated or destroyed, which stamps so affixed are evidence of the tax imposed.
4. It is the responsibility of the intoxicating and medicinal hemp grower to purchase and properly affix stamps before a sale of the intoxicating or medicinal hemp.

1. There is levied and shall be collected as provided in this section, a tax upon each retail sale of intoxicating hemp at the rate of forty-five 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 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 have not been paid. Cultivation or harvest of more than a personal use quantity of intoxicating hemp by a person without a license in violation of section 705 is prohibited. This section is not intended to limit the amount of intoxicating or medicinal hemp an adult may purchase and possess from a licensed retailer.

NEW SECTION 402. INTOXICATING AND MEDICINAL HEMP GROWER LICENSE.

1. There shall be a grower's license to sell intoxicating and medicinal hemp to holders of intoxicating and medicinal hemp grower's, wholesaler's, or establishment's licenses, and to pharmacies, drug stores, state liquor stores, and the board.
2. It is the grower's responsibility to purchase and affix tax stamps as designated in this chapter.
3. The annual fee for a grower's license shall be seventy-five dollars.

1. There shall be a wholesaler's license to sell intoxicating and medicinal hemp to holders of intoxicating and medicinal hemp grower'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. It is the responsibility of the intoxicating hemp establishment to collect and provide to the board the tax on consumption under this chapter.
3. The annual fee for an intoxicating hemp establishment license shall be two thousand dollars.
4. 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.

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

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

NEW SECTION 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, except that a minimum fine of two hundred fifty dollars shall be imposed and a sentence requiring community service shall require not fewer than twenty-five hours of service.

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 under an intoxicating hemp establishment license, shall be permitted within the unit.

NEW SECTION 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 non-intoxicating agricultural commodity and shall not be treated as a controlled substance.

NEW SECTION 702. INTOXICATING HEMP REGULATIONS.

1. The consumption of intoxicating hemp 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 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 or medicinal hemp is grown, nontransparent material must be used on the sides and roof.

NEW SECTION 704. PARAPHERNALIA. The sale of hemp paraphernalia is allowed and is subject to the same restrictions of access by minors as provided for intoxicating hemp under this chapter.

NEW SECTION 705. RESTRICTIONS ON PERSONAL USE QUANTITY.

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 three 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 harvested plant must be rendered uningestible and discarded in a responsible manner within two weeks of the date of harvest.

1. A person who is in a position to profit from the sale of intoxicating or medicinal hemp or its paraphernalia may not create, display, perform, or distribute advertising or promotional material for intoxicating or medicinal hemp or its paraphernalia 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 its paraphernalia presented so that it cannot be perceived by minors; and
   6. On the exterior of stores where intoxicating or medicinal hemp or its paraphernalia is sold, a sign indicating with words only that intoxicating or medicinal hemp or its paraphernalia is sold in the store, or words to that effect, but not otherwise depicting or promoting intoxicating or medicinal hemp or its use. By local option, a local government may prohibit advertising on the exterior of a store where intoxicating or medicinal hemp or its paraphernalia is sold.
2. For the purposes of this section, a "person in a position to profit from the sale of intoxicating or medicinal hemp" is a business enterprise that, for pay or other consideration, cultivates, processes, transports, or sells intoxicating or medicinal hemp, or whose property is used for cultivation, processing, transport, or sale of intoxicating or medicinal hemp, or a beneficial owner of a five percent or greater interest in such an enterprise.
3. For the purposes of this section, a "person in a position to profit from the sale of hemp paraphernalia" is a business enterprise that, for pay or other consideration, manufactures or sells hemp paraphernalia, or a beneficial owner of a five percent or greater interest in such an enterprise.
4. 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 802. FURNISHING INTOXICATING OR MEDICINAL HEMP TO MINORS.

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

NEW SECTION 804. CONSUMING INTOXICATING HEMP IN PUBLIC PLACES. Except as permitted by this chapter, a person may not consume intoxicating hemp 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 805. UNLAWFUL SALE OF INTOXICATING OR MEDICINAL HEMP WITHOUT A STAMP. A person who shall sell or offer for sale, or transport in any manner, any intoxicating or medicinal hemp without a government stamp attached thereto is guilty of a gross misdemeanor and upon conviction thereof shall upon the person's first conviction be fined not less than five hundred dollars and confined in the county jail not less than six months, and upon a second and subsequent conviction shall be fined not less than one thousand dollars and confined in the county jail not less than one year.

NEW SECTION 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 807. BUYING INTOXICATING OR MEDICINAL HEMP ILLEGALLY. If an unlicensed person buys intoxicating or medicinal hemp 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 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, it 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 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 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 t he 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 o f 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:
• 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;

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 1001. INTENT. No provision of this act may be executed in a manner that violates the intent of this act to end hemp prohibition in this state.

NEW SECTION 1002. 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 1003. CODIFICATION. Sections 101, 201, and 301 through 809 of this act shall constitute a new chapter in Title 66 RCW.

NEW SECTION 1004. PART HEADINGS AND CAPTIONS NOT LAW. Part headings and captions used in this act do not constitute any part of the law.