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Home My WebLink AboutCity Council Committees - Land Use and Planning Board - 05/12/2014 •NT Land Use and Planning Board KE wAsHINGToN Agenda LUPB MEMBERS: •Frank Cornelius •Navdeep Gill •Alan Gray •Katherine Jones .Randall Smith .Barbara Phillips, Vice Chair .Jack Ottini, Chair WORKSHOP AGENDA May 12, 2014 7:00 p.m. Item Description ActionSpeaker(s) Time Pace 1. Discussion on zoning regulations NO Fred Satterstrom 60 min 1 Related to production, processing, and Katie Graves retail sale of recreational marijuana David Galazin 2. Discussion on the Pedestrian Overlay NO Gloria Gould-Wessen 30 min 73 Map, KCC 15.09.046 and Revisions to the Downtown Design Guidelines. Unless otherwise noted, the Land Use and Planning Board meets the 2nd and 4t' Monday of each month at 7:00 p.m. in Council Chambers East and West, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. No public testimony is taken at workshops, although the public is welcome to attend. For information on the above workshop item(s), the City of Kent's Website can be accessed at http://kentwa.igm2.com/citizens/Default.aspx?DepartmentID=1004 on Thursday, May 8, 2014 or contact Julie Pulliam, Pam Mottram or the respective project planner in the Planning Division at (253) 856-5454 or as indicated on the agenda. Any person requiring a disability accommodation should contact the City in Advance for more information. For TDD relay service for Braille, call 1-800-833-6385, for the hearing impaired, call 1-800-833-6388 or call Economic & Community Development directly at(253) 856-5499 (TDD) or the main line at(253) 856-5454. 1 ECONOMIC and COMMUNITY DEVELOPMENT Ben Wolters, Director PLANNING DIVISION Fred N. Satterstrom, AICP, Planning Director KENT Charlene Anderson, AICP, Manager wAs�, ��.o� Phone: 253-856-5454 Fax: 253-856-6454 Address: 220 Fourth Avenue S Kent, WA 98032-5895 May 7, 2014 TO: Chair Jack Ottini and Land Use & Planning Board Members FROM: Katie Graves, Planner RE: Recreational Marijuana Zoning For the May 12, 2014 Workshop ISSUE: How should the City address and establish zoning regulations for recreational marijuana producers, processors, and retailers? BACKGROUND: Initiative I-502 (I-502) was passed by Washington voters in November 2012 which legalized the use of recreational marijuana. I-502 directed the Washington State Liquor Control Board (LCB) to develop rules for the implementation of the licensing provisions of I-502 for recreational marijuana producers, processors, and retailers, and be the entity to issue state licenses. The LCB has since passed rules to regulate of these uses. In general, these rules address the following (see also Attachment 5.A and 53): General requirements that apply to all licensees, such as: o No licenses issued for personal residences o Consumption of marijuana may not be permitted at the business locations o No marijuana business may be within 1,000 feet of the following uses: • Elementary or secondary school; • Playground; • Recreational center or facility; • Child care center; • Public park; • Public transit center; • Library; • Any game arcade (where admission is not restricted to persons age 21 or older o Security measures that include alarm system with sensors on all perimeter entry points and windows, and video surveillance systems MEMORANDUM: 2 Land Use and Planning Board Workshop May 12, 2014 Page 2 • Requirements for marijuana producers, such as: o Production may occur within a fully enclosed secure indoor facility; a greenhouse with rigid walls, a roof, and doors; or outdoors with an 8' sight obscuring wall or fence o Maximum amounts of marijuana plant cover and maximum amount of marijuana kept on-site o Pesticide, fertilizers, and soil regulations o Can only sell product at wholesale to marijuana processors • Requirements for marijuana processors, such as: o Maximum amounts of marijuana allowed on the premises o Solid and liquid waste must be stored, managed, and disposed of in a specified manner o Restrictions on the solvents, equipment and methods used to make marijuana extracts o Packaging and labeling requirements o Can only sell product to marijuana retailers • Requirements for marijuana retailers, such as: o No internet sales, delivery, mail orders, and drive-up window sales o Not allowed within the location of another business o Hours of operation limited to Sam — 12am o Maximum 4 months of inventory allowed onsite o Sign limitations (one sign, maximum 1,600 square inches) The LCB also determined the maximum number of retail outlets to be licensed, per jurisdiction. Kent is allotted up to three retailers. There is no maximum number of licenses that will be issued by the LCB for marijuana producers and processors; however, the maximum statewide production is limited to 2,000,000 square feet of plant canopy. It is important to note that I-502 is separate from medical marijuana regulations, and the City is only considering zoning options at this time for recreational marijuana producers, processors, and retailers. Medical marijuana collective gardens are not permitted within City of Kent, per Kent City Code 15.08.290. Possession, use, growth, and distribution of marijuana, whether it is for recreational or medical use, are still illegal under Federal law. Marijuana remains a Schedule 1 drug under the Federal Controlled Substance Act. Kent has a moratorium in place for recreational marijuana uses, in order to allow the City of consider zoning options for marijuana producers, processors, and retailers. The moratorium expires on November 27, 2014. DISCUSSION: The production, processing, and retail sale or marijuana has only recently become a permitted activity under Washington state law. Colorado is the only other state that permits the retail production, processing and sale of marijuana. Thus, the land MEMORANDUM: 3 Land Use and Planning Board Workshop May 12, 2014 Page 3 use impacts associated with state licensed production, processing and retail sale of marijuana have not been definitively established, but do have potential impacts that need to be taken into consideration. These may include the need for increased security, ventilation, electricity, and safety. Odors impacting offsite or neighboring uses may also be a concern. Retail locations may be a hot spot for increased crime, especially since these businesses operate with cash only. Ultimately, the impacts from commercial-scale marijuana uses are unknown at this time. Neither I-502 nor the rules adopted by the LCB address the proper location within a city for state licensed production, processing or retail sales facilities, other than a 1,000 foot buffer from elementary schools, secondary schools, playgrounds, recreation centers, child care centers, public parks, transit centers, libraries, or game arcades. In Washington State, many other cities have passed moratoriums, established interim zoning regulations, established permanent zoning regulations, or have decided to not allow recreational marijuana uses at all (see Attachment 4 for a summary chart). The City of Kent has the authority to determine the appropriate uses of land through its zoning authority. Staff has compiled several preliminary zoning options as a starting point for the discussion of the regulation of recreational marijuana uses. These options address the three types of marijuana business use (i.e., production, processing, and retail) separately. There is also an option to disallow all types of marijuana use (see Attachment 1). Staff has prepared a map that illustrates the locations that marijuana uses would be restricted by the LCB buffers (Attachment 2). Also included are maps identifying crime "hot spots," prepared by the Kent Police Department (Attachment 3). The purpose of this workshop is to educate the Board on I-502, the Liquor Control Board rules, and potential impacts and zoning options for recreational marijuana. Staff will be available at the workshop to further these items. KG\pm S:\Permit\Plan\ZONING_CODE_AMENDMENTS\2014\ZCA-2014-2 Marijuana\LUPB\Wrkshp5-12-14\05-12-14_LUP13_Memo.doc Enc: Attach 1-Draft Zoning Options Attach 2-Kent Buffers Map Attach 3-Kent Crime Hot Spot Maps Attach 4-Ordinance Comparison Chart Attach 5.A&5.B-WAC 314-55/LCB regulations cc: Ben Wolters, Economic and Community Development Director Fred Satterstrom,AICP, Planning Director Charlene Anderson,AICP, Planning Manager David Galazin,Assistant City Attorney Project File ZCA-2014-2 4 ATTACHMENT 1 5 ATTACHMENT C Recreational Marijuana - Potential Zoning Options Production: WAC 314-55-075: "A marijuana producer license allows the licensee to produce marijuana for sale at wholesale to marijuana processor licensees and to other marijuana producer licensees. Marijuana production must take place within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. Outdoor production may take place in nonrigid greenhouses, other structures, or an expanse of open or cleared ground fully enclosed by a physical barrier. To obscure public view of the premises, outdoor production must be enclosed by a sight obscure wall or fence at least eight feet high. Outdoor producers must meet security requirements described in WAC 314- 55-083. Option A: do not allow marijuana production in any zoning district Option B: allow marijuana production only in M3 General Industrial District Kent City Code 15.03.010: "The purpose of the M3 district is to provide areas suitable for the broadest range of industrial activities, and to specify those industrial activities having unusual or potentially deleterious operational characteristics, where special attention must be paid to location and site development. Light industrial uses which require restrictive standards on the part of adjoining uses and non-industrial uses are discouraged from locating in this district, in accordance with the manufacturing/industrial center designation in the comprehensive plan." Option C: allow marijuana production in the same zoning districts as an existing use in the zoning code: "Manufacturing, processing, blending, and packaging of drugs, pharmaceuticals, toiletries, and cosmetics": CM-1, CM-2, M1, M1-C, M2, M3, GWC Processing: WAC 314-55-077: "A marijuana processor license allows the licensee to process, package, and label usable marijuana and marijuana-infused products for sale at wholesale to marijuana retailers." Option A: do not allow marijuana processing in any zoning district Option B: allow marijuana processing only in M3 General Industrial District Kent City Code 15.03.010 definition of M3: "The purpose of the M3 district is to provide areas suitable for the broadest range of 6 industrial activities, and to specify those industrial activities having unusual or potentially deleterious operational characteristics, where special attention must be paid to location and site development. Light industrial uses which require restrictive standards on the part of adjoining uses and non- industrial uses are discouraged from locating in this district, in accordance with the manufacturing/industrial center designation in the comprehensive plan." Option C: allow marijuana processing in the same zoning districts as an existing use in the zoning code: "Manufacturing, processing, blending, and packaging of drugs, pharmaceuticals, toiletries, and cosmetics": CM-1, CM-2, M1, M1-C, M2, M3, GWC Retail: WAC 314-55-079: "A marijuana retailer license allows the licensee to sell only usable marijuana, marijuana-infused products, and marijuana paraphernalia at retail in retail outlets to persons twenty-one years of age and older." Option A: do not allow marijuana retail sales in any zoning district Option B: allow marijuana retail sales in the M1-C (Industrial Park/ Commercial) zoning district (definition of this zone is part of the M1 definition): Kent City Code 15.03.010 definition of M1-C: "...It is also the purpose of this zone to allow certain limited commercial land uses that provide necessary personal and business services for the general industrial area. Such uses are allowed in the M1 district, through the application of the "C"suffix, at centralized, nodal locations where major arterials intersect." Option C: allow marijuana retail sales in the same zoning districts as an existing use in the zoning code: "liquor store": NCC, CC, DC, DCE, MTC-1, MTC-2, MCR, CM-2, GC, M1-C, GWC Other restrictions to consider: a) "Marijuana producers, processors, and retailers shall not operate as an accessory to a primary use or as a home occupation." This restriction would prohibit operations from circumventing the zoning districts in which these uses may be allowed by preventing them from being a part of another use or operating out of a home, as a home occupation. This additional language has been proposed in other jurisdictions as well. 7 b) "All activities shall occur within an enclosed structure and shall be designed, located, constructed, and buffered to blend in with its surrounding and mitigate significant adverse impacts on adjoining properties and the community, and special attention shall be given to minimizing odor, noise, light, glare, and traffic impacts. Marijuana uses shall be designed to include controls and features to prevent odors from travelling off-site and being detected from a public right-of- way, or other properties or uses." Marijuana production and processing may create odor impacts to the surrounding area. "The pungent odor from marijuana cultivation operations is objectionable to many people. Offensive odors can easily migrate in and around the marijuana cultivation site and some strains product odors that are detectable in the surrounding neighborhood as well as adjacent tenants" (Best Management Practices: Commercial Medical Marijuana Cultivation, City of Denver, April 2011). Indoor facilities may be more equipped to properly vent odors, as well as address security concerns. Similar additional language has been proposed in other jurisdictions as well. 8 Viz" W N � >'� Y ° ❑ � m - a+ a o w U o N E E JLL a) o P o L " u E `-� - E > E E .° n.- -° E m m ' O a+ v m o -2 `m o E 3 _ E E E E E E YI„ _m ° ° m o m a - - o E E " o 21 E m ° �.� o m m N ob-p w"O J a _ o U N m m `o ° `m `o v - - E E U v >U n 2` U `m E 3 cE E U a U. w E $ 1? _ � u Y � � � � � cE � � u � w `� � u � u � u u o a h µJ ; Iw7k,r'It� L.... A,�"'®'">e° n•av^cwul�..,�,.�•^�� ®`e\ /� ry I iryi Pii 'IV un— Q pee�� ``. aW gyp' ne�mi�ns. 6nmix�odw�w x e n III y ky® Ul 4�y II = t � r y.ew V +a r 1 +'vx 5 ry a e V i ......... � I r7 'rl+nll IS " +^•-v 1101 i WI n r u •� �x®xx®.�m 1�o! a e For a� r"P�" FUl46 s,Ft g `" rerr !n I IIG�j � nl \//\R 1 x r n,+d��u,y:, I t v v� Ml me f � B o� " i !�� is ®x• ® e � .,9�x .,a. r I NWf „mxx� 4 R,W nm.FIY IYY Yhil!p M u �•®rvi6 '� xxN J ✓S O ATTACHMENT 3 11 Kent Police Department Reported ILP Case Reports: May 1, 2013 - April 30, 2014 ILP crimes shown below include Theft from Vehicle, Vehicle Theft, Robbery and Residential Burglary. Each dot on the below map represents one or more reported crimes at that specific location in the past year. ♦ ♦ j J A jj j I The above dots represent the location of 2,767 reported crimes over the past year. 12 The below density map represents the same reported crimes as above, but shows the density of those crimes relative to location. The more crimes in close proximity to each other, the darker the red. Yellow represents a very high concentration of reported crimes. s i Uv� F The above red hued areas reflect a high density of reported ILP crimes. The "Hot Spot" areas include: 27th Place on the West Hill 64/Smith in the Valley Kent Station area in the Valley North Central Apartments in the Valley 104/256 area on the East Hill 108/240 area on the East Hill 108/208 area on the East Hill 13 Finally, the below density map reflects higher concentrations of 911 calls received by Valley Comm over the past year. The "Hot Spots" generally reflect the same area's as the ILP Crime "Hot Spots", but with higher concentrations/density, due to other crimes being reported as well. M ;j ell f I . . .......... rIL The above areas are Kent PID's "Hot Spots" of 911 calls received by Valley Comm. They can be quickly labeled the following: 27 th Place on the West Hill — the bright yellow area. 252/Pac Hwy on the West Hill 64/Smith in the Valley — another yellow spot Kent Station area in the Valley 108/240 on the East Hill 104/256 on the East Hill 14 ATTACHMENT 4 15 ATTACHMENT B I-502 Ordinance Comparison Tables Compiled by Municipal Research Services Center County Allow Under Moratorium Interim Permanent Prohibition Existing Laws Zonir Zoning (Chelan County X (Clark Count v X Columbia ...., Countv X (Cowlitz Count v X (Douglas County X ...., (Franklin Count v X (Garfield County X (Grant County X ...., Grays Harbor X Countv (Island County X (King County., X ...., IKitsap County X ...., (Lewis Countv X (Mason County X ...., �Okanagon ...., X ...., Countv (Pacific County X (Pierce Count v X San Juan County X ...., Skamania Countv X (Skagit County X ...., Snohomish...., Countv X (Spokane Count v X. (Stevens County X (Thurston County X Walla Walla.. X County Whatcom ...., X County (Yakima County X 16 1. San Juan County will accommodate state licensed marijuana businesses under its existing zoning regulations. 2. In Skagit County, licensed marijuana businesses are permitted in established county zones, in accordance with the Guidance Memo. See also the county's Press Release from December 5th, 2013. City Allow Under Moratorium Interim Permanent Prohibition Existing Laws Zoning Zoning (Aberdeen ...., X., IAnacortes ...., X (Arlington ...., X ...., (Auburn X Bainbridge ...., X Island (Bellevue X., (Bellingham...., X., (Black Diamond X (Blaine X ...., IBonney Lake. X IBurien X ...., Burlington X (Camas X ICarbonado ...., X (Carnation ...., X ...., (Centralia ...., X (Chehalis X IChene X., (Clarkston ...., X ICle Elum ...., X (College Place X (Concrete X ...., (Covington X., (Davenport ...., X IDa.. on X (Des Moines.... X ...., (DuPont X 17 (East Wenatchee X IEatonville X., IEdgewood ...., X., (Edmonds ...., X (Ellensburg ...., X ...., (Enumclaw ...., X IEphrat X., (Everett X., (Everson X (Fairfield X (Federal Way., X (Ferndale X ...., (Fife X IFriday Harbor X ...., (Gig Harbor...., X ...., (Grandview ...., X (Granite Falls., X IHoguiam ...., X (Issaquah X IKalama X ...., (Kelso X (Kenmore ...., X (Kennewick...., X (Kent X (Kirkland X., ILA X ...., Lake Forest.... X Park (Lake Stevens X (Lakewood ...., X (Leavenworth. X (Liberty Lake., X (Lone Beach..., X Longview ...., X Lynde X (Lynnwood ...., X., 18 (Mar s� ...., X (Medical Lake X (Mesa X (Mill Creek ...., X (Millwood ...., X ...., (Milton X (Monroe X., (Moses Lake..., X ...., IMossyrock ...., X (Mount Vernon X ...., Mountlake ...., Terrace X IMukilteo ...., X ...., Napavine ...., X (Normand X., (North Bend...., X (Oak Harbor.... X IOaksdale ...., X (Ocean Shores X (Olympia X (Othello X (Pasco X (Port Orchard,,, X., (Port Townsend X IPoulsbo X., (Prosser X (Pullman X ...., IPuyallup X uinc X (Raymond ...., X ...., (Redmond ...., X (Renton X (Richland ...., X (Rockford ...., X X IRoyal City X., 19 ISammamish... X ISeaTac X (Seattle X ...., ISedro-Woollen X ISM X (Shelton X ...., (Snohomish...., X (Spokane X ...., (Stanwood ...., X ISumas X ISu sue...., X (Tacoma X., IToppenish ...., X (Tukwila X ...., Tumwater ...., X ...., (University Place X Nader X., (Vancouver ...., X IW aitsburg X., (Walla Walla.. X., W enatcheez.... X (West Richland X (Woodinville.., X (Woodland ...., X (Yakima X (Zillah X 1. On September 30, 2013, the Sunnyside city council voted to extend the city's moratorium on the producing, processing and selling of recreational marijuana within city limits to 12 months from its original six months. 2. On October 24, 2013, the Wenatchee city council voted against an ordinance that would have exempted marijuana businesses from the city requirement that all businesses comply with federal laws, so marijuana businesses are now prohibited from siting in the city. 20 ATTACHMENT 5.A 21 Chapter 314-55 WAC MARIJUANA LICENSES, APPLICATION PROCESS, REQUIREMENTS, AND REPORTING NEW SECTION WAC 314-55-005 What is the purpose of this chapter? The purpose of this chapter is to outline the application process, qualifications and requirements to obtain and maintain a marijuana license and the reporting requirements for a marijuana licensee. NEW SECTION WAC 314-55-010 Definitions. Following are definitions for the purpose of this chapter. Other definitions are in RCW 69 . 50 . 101 . ( 1 ) "Applicant" or "marijuana license applicant" means any person or business entity who is considered by the board as a true party of interest in a marijuana license, as outlined in WAC 314-55-035 . ( 2 ) "Batch" means a quantity of marijuana-infused product con- taining material from one or more lots of marijuana . ( 3 ) "Business name" or "trade name" means the name of a licensed business as used by the licensee on signs and advertising. ( 4 ) "Child care center" means an entity that regularly provides child day care and early learning services for a group of children for periods of less than twenty-four hours licensed by the Washington state department of early learning under chapter 170-295 WAC. ( 5 ) "Elementary school" means a school for early education that provides the first four to eight years of basic education and recog- nized by the Washington state superintendent of public instruction. ( 6) "Financier" means any person or entity, other than a banking institution, that has made or will make an investment in the licensed business . A financier can be a person or entity that provides money as a gift, loans money to the applicant/business and expects to be paid back the amount of the loan with or without interest, or expects any percentage of the profits from the business in exchange for a loan or expertise. ( 7 ) "Game arcade" means an entertainment venue featuring primari- ly video games, simulators, and/or other amusement devices where per- sons under twenty-one years of age are not restricted. ( 8 ) "Library" means an organized collection of resources made ac- cessible to the public for reference or borrowing supported with money derived from taxation. ( 9 ) "Licensee" or "marijuana licensee" means any person or entity that holds a marijuana license, or any person or entity who is a true party of interest in a marijuana license, as outlined in WAC 314-55-035 . ( 10 ) "Lot" means either of the following: ( a ) The flowers from one or more marijuana plants of the same strain. A single lot of flowers cannot weigh more than five pounds; or 1 1 1 OTS-5501 . 4 22 (b) The trim, leaves, or other plant matter from one or more mar- ijuana plants . A single lot of trim, leaves, or other plant matter cannot weigh more than fifteen pounds . ( 11 ) "Marijuana strain" means a pure breed or hybrid variety of Cannabis reflecting similar or identical combinations of properties such as appearance, taste, color, smell, cannabinoid profile, and po- tency. ( 12 ) "Member" means a principal or governing person of a given entity, including but not limited to : LLC member/manager, president, vice-president, secretary, treasurer, CEO, director, stockholder, partner, general partner, limited partner. This includes all spouses of all principals or governing persons named in this definition and referenced in WAC 314-55-035 . ( 13 ) "Pesticide" means, but is not limited to : ( a ) Any substance or mixture of substances intended to prevent, destroy, control, repel, or mitigate any insect, rodent, snail, slug, fungus, weed, and any other form of plant or animal life or virus, except virus on or in a living person or other animal which is normally considered to be a pest; (b) any substance or mixture of substances intended to be used as a plant regulator, defoliant, or desiccant; and ( c) any spray adju- vant . Pesticides include substances commonly referred to as herbi- cides, fungicides, and insecticides . ( 14 ) "Perimeter" means a property line that encloses an area . ( 15 ) "Plant canopy" means the square footage dedicated to live plant production, such as maintaining mother plants, propagating plants from seed to plant tissue, clones, vegetative or flowering area . Plant canopy does not include areas such as space used for the storage of fertilizers, pesticides, or other products, quarantine, of- fice space, etc. ( 16) "Playground" means a public outdoor recreation area for children, usually equipped with swings, slides, and other playground equipment, owned and/or managed by a city, county, state, or federal government . ( 17 ) "Public park" means an area of land for the enjoyment of the public, having facilities for rest and/or recreation, such as a base- ball diamond or basketball court, owned and/or managed by a city, county, state, federal government, or metropolitan park district . Pub- lic park does not include trails . ( 18 ) "Public transit center" means a facility located outside of the public right of way that is owned and managed by a transit agency or city, county, state, or federal government for the express purpose of staging people and vehicles where several bus or other transit routes converge. They serve as efficient hubs to allow bus riders from various locations to assemble at a central point to take advantage of express trips or other route to route transfers . ( 19 ) "Recreation center or facility" means a supervised center that provides a broad range of activities and events intended primari- ly for use by persons under twenty-one years of age, owned and/or man- aged by a charitable nonprofit organization, city, county, state, or federal government . ( 20 ) "Residence" means a person ' s address where he or she physi- cally resides and maintains his or her abode. ( 21 ) "Secondary school" means a high and/or middle school : A school for students who have completed their primary education, usual- ly attended by children in grades seven to twelve and recognized by the Washington state superintendent of public instruction. [ 2 1 OTS-5501 . 4 23 ( 22 ) "Unit" means an individually packaged marijuana-infused sol- id or liquid product meant to be eaten or swallowed, not to exceed ten servings or one hundred milligrams of active tetrahydrocannabinol (THC) , or Delta 9 . NEW SECTION WAC 314-55-015 General information about marijuana licenses. ( 1 ) A person or entity must meet certain qualifications to receive a mari- juana license, which are continuing qualifications in order to main- tain the license. ( 2 ) All applicants and employees working in each licensed estab- lishment must be at least twenty-one years of age. ( 3 ) Minors restricted signs must be posted at all marijuana li- censed premises . ( 4 ) A marijuana license applicant may not exercise any of the privileges of a marijuana license until the board approves the license application. ( 5 ) The board will not approve any marijuana license for a loca- tion where law enforcement access, without notice or cause, is limi- ted. This includes a personal residence. ( 6) The board will not approve any marijuana license for a loca- tion on federal lands . ( 7 ) The board will not approve any marijuana retailer license for a location within another business . More than one license could be lo- cated in the same building if each licensee has their own area separa- ted by full walls with their own entrance. Product may not be commin- gled. ( 8 ) Every marijuana licensee must post and keep posted its li- cense, or licenses, and any additional correspondence containing con- ditions and restrictions imposed by the board in a conspicuous place on the premises . ( 9 ) In approving a marijuana license, the board reserves the right to impose special conditions as to the involvement in the opera- tions of the licensed business of any former licensees, their former employees, or any person who does not qualify for a marijuana license. ( 10 ) A marijuana processor or retailer licensed by the board shall conduct the processing, storage, and sale of marijuana-infused products using sanitary practices and ensure facilities are construc- ted, kept, and maintained in a clean and sanitary condition in accord- ance with rules and as prescribed by the Washington state department of agriculture under chapters 16-165 and 16-167 WAC. ( 11 ) Marijuana licensees may not allow the consumption of mari- juana or marijuana-infused products on the licensed premises . NEW SECTION WAC 314-55-020 Marijuana license qualifications and application process. Each marijuana license application is unique and investigated individually. The board may inquire and request documents regarding all matters in connection with the marijuana license application. The [ 3 1 OTS-5501 . 4 24 application requirements for a marijuana license include, but are not necessarily limited to, the following: ( 1 ) Per RCW 69 . 50 . 331, the board shall send a notice to cities and counties, and may send a notice to tribal governments or port au- thorities regarding the marijuana license application. The local au- thority has twenty days to respond with a recommendation to approve or an objection to the applicant, location, or both. ( 2 ) The board will verify that the proposed business meets the minimum requirements for the type of marijuana license requested. ( 3 ) The board will conduct an investigation of the applicants ' criminal history and administrative violation history, per WAC 314-55-040 and 314-55-045 . ( a ) The criminal history background check will consist of comple- tion of a personal/criminal history form provided by the board and submission of fingerprints to a vendor approved by the board. The ap- plicant will be responsible for paying all fees required by the vendor for fingerprinting. These fingerprints will be submitted to the Wash- ington state patrol and the Federal Bureau of Investigation for com- parison to their criminal records . The applicant will be responsible for paying all fees required by the Washington state patrol and the Federal Bureau of Investigation. (b) Financiers will also be subject to criminal history investi- gations equivalent to that of the license applicant . Financiers will also be responsible for paying all fees required for the criminal his- tory check. Financiers must meet the three month residency require- ment . ( 4 ) The board will conduct a financial investigation in order to verify the source of funds used for the acquisition and startup of the business, the applicants ' right to the real and personal property, and to verify the true party( ies ) of interest . ( 5 ) The board may require a demonstration by the applicant that they are familiar with marijuana laws and rules . ( 6) The board may conduct a final inspection of the proposed li- censed business, in order to determine if the applicant has complied with all the requirements of the license requested. ( 7 ) Per RCW 69 . 50 . 331 ( 1 ) (b) , all applicants applying for a mari- juana license must have resided in the state of Washington for at least three months prior to application for a marijuana license. All partnerships, employee cooperatives, associations, nonprofit corpora- tions, corporations and limited liability companies applying for a marijuana license must be formed in Washington. All members must also meet the three month residency requirement . Managers or agents who manage a licensee ' s place of business must also meet the three month residency requirement . ( 8 ) Submission of an operating plan that demonstrates the appli- cant is qualified to hold the marijuana license applied for to the satisfaction of the board. The operating plan shall include the fol- lowing elements in accordance with the applicable standards in the Washington Administrative Code (WAC) . ( 9 ) As part of the application process, each applicant must sub- mit in a format supplied by the board an operating plan detailing the following as it pertains to the license type being sought . This oper- ating plan must also include a floor plan or site plan drawn to scale which illustrates the entire operation being proposed. The operating plan must include the following information: [ 4 1 OTS-5501 . 4 25 Producer Processor Retailer Security Security Security Traceability Traceability Traceability Employee qualifications and training Employee qualifications and training Employee qualifications and training Transportation of product including Transportation of product packaging of product for transportation Destruction of waste product Destruction of waste product Destruction of waste product Description of growing operation Description of the types of products to including growing media, size of grow be processed at this location together space allocated for plant production, with a complete description of all space allocated for any other business equipment and solvents,gases, activity, description of all equipment chemicals and other compounds used used in the production process, and a to create extracts and for processing of list of soil amendments, fertilizers, marijuana-infused products other crop production aids, or pesticides,utilized in the production process Testing procedures and protocols Testing procedures and protocols Description of the types of products to be processed at this location together with a complete description of processing of marijuana-infused products Description of packaging and labeling of products to be processed What array of products are to be sold and how are the products to be displayed to consumers After obtaining a license, the license holder must notify the board in advance of any substantial change in their operating plan. Depending on the degree of change, prior approval may be required be- fore the change is implemented. ( 10 ) Applicants applying for a marijuana license must be current in any tax obligations to the Washington state department of revenue, as an individual or as part of any entity in which they have an owner- ship interest . Applicants must sign an attestation that, under penalty of denial or loss of licensure, that representation is correct . ( 11 ) The issuance or approval of a license shall not be construed as a license for, or an approval of, any violations of local rules or ordinances including, but not limited to : Building and fire codes, zoning ordinances, and business licensing requirements . ( 12 ) Upon failure to respond to the board licensing and regula- tion division ' s requests for information within the timeline provided, the application may be administratively closed or denial of the appli- cation will be sought . NEW SECTION WAC 314-55-035 What persons or entities have to qualify for a marijuana license? A marijuana license must be issued in the name ( s ) of the true party( ies ) of interest . ( 1 ) True parties of interest - For purposes of this title, "true party of interest" means : 5 1 OTS-5501 . 4 26 True party of interest Persons to be qualified Sole proprietorship Sole proprietor and spouse. General partnership All partners and spouses. Limited partnership, All general partners and limited liability their spouses. partnership, or limited All limited partners and liability limited partnership spouses. Limited liability All members and their company spouses. All managers and their spouses. Privately held All corporate officers corporation (or persons with equivalent title)and their spouses. All stockholders and their spouses. Publicly held All corporate officers(or corporation persons with equivalent title) and their spouses. All stockholders and their spouses. Multilevel ownership All persons and entities that structures make up the ownership structure(and their spouses). Any entity or person Any entity or person who is (inclusive of financiers) in receipt of, or has the right that are expecting a to receive, a percentage of percentage of the profits the gross or net profit from in exchange for a the licensed business during monetary loan or any full or partial calendar or expertise. fiscal year. Any entity or person who exercises control over the licensed business in exchange for money or expertise. For the purposes of this chapter: "Gross profit" includes the entire gross receipts from all sales and services made in,upon, or from the licensed business. • "Net profit" means gross sales minus cost of goods sold. Nonprofit corporations All individuals and spouses, and entities having membership rights in accordance with the provisions of the articles of incorporation or the bylaws. ( 2 ) For purposes of this section, "true party of interest" does not mean: ( a ) A person or entity receiving reasonable payment for rent on a fixed basis under a bona fide lease or rental obligation, unless the [ 6 1 OTS-5501 . 4 27 lessor or property manager exercises control over or participates in the management of the business . (b) A person who receives a bonus as an employee, if: The employ- ee is on a fixed wage or salary and the bonus is not more than twenty- five percent of the employee ' s prebonus annual compensation; or the bonus is based on a written incentive/bonus program that is not out of the ordinary for the services rendered. ( c) A person or entity contracting with the applicant ( s ) to sell the property, unless the contract holder exercises control over or participates in the management of the licensed business . ( 3 ) Financiers - The board will conduct a financial investigation as well as a criminal background of financiers . ( 4 ) Persons who exercise control of business - The board will conduct an investigation of any person or entity who exercises any control over the applicant ' s business operations . This may include both a financial investigation and/or a criminal history background. NEW SECTION WAC 314-55-040 What criminal history might prevent a marijuana license applicant from receiving or keeping a marijuana license? ( 1 ) When the board processes a criminal history check on an applicant, it uses a point system to determine if the person qualifies for a li- cense. The board will not normally issue a marijuana license or renew a license to an applicant who has accumulated eight or more points as indicated below: Time period during which points will be Description assigned Points assigned Felony Ten years 12 points conviction Gross Three years 5 points misdemeanor conviction Misdemeanor Three years 4 points conviction Currently under n/a 8 points federal or state supervision for a felony conviction Nondisclosure n/a 4 points each of any of the above ( 2 ) If a case is pending for an alleged offense that would earn eight or more points, the board will hold the application for the dis- position of the case . If the disposition is not settled within ninety days, the board will administratively close the application. ( 3 ) The board may not issue a marijuana license to anyone who has accumulated eight or more points as referenced above. This is a dis- cretionary threshold and it is further recommended that the following exceptions to this standard be applied: [ 7 ] OTS-5501 . 4 28 Exception to criminal history point assignment. This exception to the criminal history point assignment will expire on July 1, 2014 : ( a ) Prior to initial license application, two federal or state misdemeanor convictions for the possession only of marijuana within the previous three years may not be applicable to the criminal history points accumulated. All criminal history must be reported on the per- sonal/criminal history form. ( i ) Regardless of applicability, failure to disclose full crimi- nal history will result in point accumulation; ( ii ) State misdemeanor possession convictions accrued after De- cember 6, 2013, exceeding the allowable amounts of marijuana, usable marijuana, and marijuana-infused products described in chapter 69 . 50 RCW shall count toward criminal history point accumulation. (b) Prior to initial license application, any single state or federal conviction for the growing, possession, or sale of marijuana will be considered for mitigation on an individual basis . Mitigation will be considered based on the quantity of product involved and other circumstances surrounding the conviction. ( 4 ) Once licensed, marijuana licensees must report any criminal convictions to the board within fourteen days . NEW SECTION WAC 314-55-045 What marijuana law or rule violation history might prevent an applicant from receiving a marijuana license? The board will conduct an investigation of all applicants ' marijuana law or rule administrative violation history. The board will not normally issue a marijuana license to a person, or to an entity with a true party of interest, who has the following violation history; or to any person who has demonstrated a pattern of disregard for laws or rules . Violation Type (see WAC 314-55-515) Period of Consideration • Three or more public Violations issued safety violations, within three years of the date the application is received by the board's licensing and regulation division. • Four or more regulatory violations, or • One to four, or more Violations issued license violations. within the last three years the true party(ies)of interest were licensed. NEW SECTION WAC 314-55-050 Reasons the board may seek denial , suspension, or cancellation of a marijuana license application or license. Following 1 8 1 OTS-5501 . 4 29 is a list of reasons the board may deny, suspend, or cancel a marijua- na license application or license. Per RCW 69 . 50 . 331, the board has broad discretionary authority to approve or deny a marijuana license application for reasons including, but not limited to, the following: ( 1 ) Failure to meet qualifications or requirements for the spe- cific marijuana producer, processor, or retail license, as outlined in this chapter and chapter 69 . 50 RCW. ( 2 ) Failure or refusal to submit information or documentation re- quested by the board during the evaluation process . ( 3 ) The applicant makes a misrepresentation of fact, or fails to disclose a material fact to the board during the application process or any subsequent investigation after a license has been issued. ( 4 ) Failure to meet the criminal history standards outlined in WAC 314-55-040 . ( 5 ) Failure to meet the marijuana law or rule violation history standards outlined in WAC 314-55-045 . ( 6) The source of funds identified by the applicant to be used for the acquisition, startup and operation of the business is ques- tionable, unverifiable, or determined by the board to be gained in a manner which is in violation by law. ( 7 ) Denies the board or its authorized representative access to any place where a licensed activity takes place or fails to produce any book, record or document required by law or board rule. ( 8 ) Has been denied or had a marijuana license or medical mari- juana license suspended or canceled in another state or local juris- diction. ( 9 ) Where the city, county, tribal government, or port authority has submitted a substantiated objection per the requirements in RCW 69 . 50 . 331 ( 7 ) and ( 9 ) . ( 10 ) The board shall not issue a new marijuana license if the proposed licensed business is within one thousand feet of the perime- ter of the grounds of any of the following entities . The distance shall be measured along the most direct route over or across estab- lished public walks, streets, or other public passageway between the proposed building/business location to the perimeter of the grounds of the entities listed below: ( a ) Elementary or secondary school; (b) Playground; ( c) Recreation center or facility; (d) Child care center; ( e) Public park; ( f) Public transit center; (g) Library; or (h) Any game arcade (where admission is not restricted to persons age twenty-one or older) . ( 11 ) Has failed to pay taxes or fees required under chapter 69 . 50 RCW or failed to provide production, processing, inventory, sales and transportation reports to documentation required under this chapter. ( 12 ) Failure to submit an attestation that they are current in any tax obligations to the Washington state department of revenue . ( 13 ) Has been denied a liquor license or had a liquor license suspended or revoked in this or any other state. ( 14 ) The operating plan does not demonstrate, to the satisfaction of the board, the applicant is qualified for a license. ( 15 ) Failure to operate in accordance with the board approved op- erating plan. 1 9 1 OTS-5501 . 4 30 ( 16) The board determines the issuance of the license will not be in the best interest of the welfare, health, or safety of the people of the state . NEW SECTION WAC 314-55-070 Process if the board denies a marijuana license application. If the board denies a marijuana license application, the applicants may: ( 1 ) Request an administrative hearing per chapter 34 . 05 RCW, the Administrative Procedure Act . ( 2 ) Reapply for the license no sooner than one year from the date on the final order of denial . NEW SECTION WAC 314-55-075 What is a marijuana producer license and what are the requirements and fees related to a marijuana producer license? ( 1 ) A marijuana producer license allows the licensee to produce marijuana for sale at wholesale to marijuana processor licensees and to other marijuana producer licensees . Marijuana production must take place within a fully enclosed secure indoor facility or greenhouse with rig- id walls, a roof, and doors . Outdoor production may take place in non- rigid greenhouses, other structures, or an expanse of open or cleared ground fully enclosed by a physical barrier. To obscure public view of the premises, outdoor production must be enclosed by a sight obscure wall or fence at least eight feet high. Outdoor producers must meet security requirements described in WAC 314-55-083 . ( 2 ) The application fee for a marijuana producer license is two hundred fifty dollars . The applicant is also responsible for paying the fees required by the approved vendor for fingerprint evaluation. ( 3 ) The annual fee for issuance and renewal of a marijuana pro- ducer license is one thousand dollars . The board will conduct random criminal history checks at the time of renewal that will require the licensee to submit fingerprints for evaluation from the approved ven- dor. The licensee will be responsible for all fees required for the criminal history checks . ( 4 ) The board will initially limit the opportunity to apply for a marijuana producer license to a thirty-day calendar window beginning with the effective date of this section. In order for a marijuana pro- ducer application license to be considered it must be received no lat- er than thirty days after the effective date of the rules adopted by the board. The board may reopen the marijuana producer application window after the initial evaluation of the applications received and at subsequent times when the board deems necessary. ( 5 ) Any entity and/or principals within any entity are limited to no more than three marijuana producer licenses . ( 6 ) The maximum amount of space for marijuana production is limi- ted to two million square feet . Applicants must designate on their op- erating plan the size category of the production premises and the [ 10 ] OTS-5501 . 4 31 amount of actual square footage in their premises that will be desig- nated as plant canopy. There are three categories as follows : ( a ) Tier 1 - Less than two thousand square feet; (b) Tier 2 - Two thousand square feet to ten thousand square feet; and ( c) Tier 3 - Ten thousand square feet to thirty thousand square feet . ( 7 ) The board may reduce a licensee ' s or applicant ' s square foot- age designated to plant canopy for the following reasons : ( a ) If the amount of square feet of production of all licensees exceeds the maximum of two million square feet the board will reduce the allowed square footage by the same percentage. (b) If fifty percent production space used for plant canopy in the licensee ' s operating plan is not met by the end of the first year of operation the board may reduce the tier of licensure. ( 8 ) If the total amount of square feet of marijuana production exceeds two million square feet, the board reserves the right to re- duce all licensee ' s production by the same percentage or reduce licen- see production by one or more tiers by the same percentage. ( 9 ) The maximum allowed amount of marijuana on a producer ' s prem- ises at any time is as follows : ( a ) Outdoor or greenhouse grows - One and one-quarter of a year ' s harvest; or (b) Indoor grows - Six months of their annual harvest . NEW SECTION WAC 314-55-077 What is a marijuana processor license and what are the requirements and fees related to a marijuana processor license? ( 1 ) A marijuana processor license allows the licensee to process, package, and label usable marijuana and marijuana-infused products for sale at wholesale to marijuana retailers . ( 2 ) A marijuana processor is allowed to blend tested useable mar- ijuana from multiple lots into a single package for sale to a marijua- na retail licensee providing the label requirements for each lot used in the blend are met and the percentage by weight of each lot is also included on the label . ( 3 ) The application fee for a marijuana processor license is two hundred fifty dollars . The applicant is also responsible for paying the fees required by the approved vendor for fingerprint evaluation. ( 4 ) The annual fee for issuance and renewal of a marijuana pro- cessor license is one thousand dollars . The board will conduct random criminal history checks at the time of renewal that will require the licensee to submit fingerprints for evaluation from the approved ven- dor. The licensee will be responsible for all fees required for the criminal history checks . ( 5 ) The board will initially limit the opportunity to apply for a marijuana processor license to a thirty-day calendar window beginning with the effective date of this section. In order for a marijuana pro- cessor application license to be considered it must be received no later than thirty days after the effective date of the rules adopted by the board. The board may reopen the marijuana processor application window after the initial evaluation of the applications that are re- [ 11 ] OTS-5501 . 4 32 ceived and processed, and at subsequent times when the board deems necessary. ( 6) Any entity and/or principals within any entity are limited to no more than three marijuana processor licenses . ( 7 ) Marijuana processor licensees are allowed to have a maximum of six months of their average useable marijuana and six months aver- age of their total production on their licensed premises at any time. NEW SECTION WAC 314-55-079 What is a marijuana retailer license and what are the requirements and fees related to a marijuana retailer license? ( 1 ) A marijuana retailer license allows the licensee to sell only usable marijuana, marijuana-infused products, and marijuana paraphernalia at retail in retail outlets to persons twenty-one years of age and older. ( 2 ) Marijuana extracts, such as hash, hash oil, shatter, and wax can be infused in products sold in a marijuana retail store, but RCW 69 . 50 . 354 does not allow the sale of extracts that are not infused in products . A marijuana extract does not meet the definition of a mari- juana-infused product per RCW 69 . 50 . 101 . ( 3 ) Internet sales and delivery of product is prohibited. ( 4 ) The application fee for a marijuana retailer ' s license is two hundred fifty dollars . The applicant is also responsible for paying the fees required by the approved vendor for fingerprint evaluation. ( 5 ) The annual fee for issuance and renewal of a marijuana re- tailer ' s license is one thousand dollars . The board will conduct ran- dom criminal history checks at the time of renewal that will require the licensee to submit fingerprints for evaluation from the approved vendor. The licensee will be responsible for all fees required for the criminal history checks . ( 6) Marijuana retailers may not sell marijuana products below their acquisition cost . ( 7 ) Marijuana retailer licensees are allowed to have a maximum of four months of their average inventory on their licensed premises at any given time . NEW SECTION WAC 314-55-081 Who can apply for a marijuana retailer license? ( 1 ) Using estimated consumption data and population data obtained from the office of financial management (OFM) population data, the liquor control board will determine the maximum number of marijuana retail locations per county. The number of retail locations will be determined using a method that distributes the number of locations proportionate to the most populous cities within each county. Locations not assigned to a spe- cific city will be at large. At large locations can be used for unin- corporated areas in the county or in cities within the county that have no retail licenses designated. Once the number of locations per city and at large have been identified, the eligible applicants will be selected by lottery in the event the number of applications exceeds [ 12 1 OTS-5501 . 4 33 the allotted amount for the cities and county. Any lottery conducted by the board will be witnessed by an independent third party. ( 2 ) The number of marijuana retail licenses determined by the board can be found on the liquor control board web site at www. liq.wa . gov. ( 3 ) Any entity and/or principals within any entity are limited to no more than three retail marijuana licenses with no multiple location licensee allowed more than thirty-three percent of the allowed licen- ses in any county or city. ( 4 ) The board will initially limit the opportunity to apply for a marijuana retailer license to a thirty-day calendar window beginning with the effective date of this section. In order for a marijuana re- tailer license application to be considered it must be received no later than thirty days after the effective date of the rules adopted by the board. The board may reopen the marijuana retailer application window after the initial evaluation of the applications received and at subsequent times when the board deems necessary. NEW SECTION WAC 314-55-082 Insurance requirements. Marijuana licensees shall provide insurance coverage as set out in this section. The intent of the required insurance is to protect the consumer should there be any claims, suits, actions, costs, damages or expenses arising from any negligent or intentional act or omission of the marijuana licensees . Marijuana licensees shall furnish evidence in the form of a certifi- cate of insurance satisfactory to the board that insurance, in the following kinds and minimum amounts, has been secured. Failure to pro- vide proof of insurance, as required, may result in license cancella- tion. ( 1 ) Commercial general liability insurance: The licensee shall at all times carry and maintain commercial general liability insurance and if necessary, commercial umbrella insurance for bodily injury and property damage arising out of licensed activities . This insurance shall cover such claims as may be caused by any act, omission, or neg- ligence of the licensee or its officers, agents, representatives, as- signs, or servants . The insurance shall also cover bodily injury, in- cluding disease, illness and death, and property damage arising out of the licensee' s premises/operations, products, and personal injury. The limits of liability insurance shall not be less than one million dol- lars . ( 2 ) Insurance carrier rating: The insurance required in subsec- tion ( 1 ) of this section shall be issued by an insurance company au- thorized to do business within the state of Washington. Insurance is to be placed with a carrier that has a rating of A - Class VII or bet- ter in the most recently published edition of Best 's Reports. If an insurer is not admitted, all insurance policies and procedures for is- suing the insurance policies must comply with chapters 48 . 15 RCW and 284-15 WAC. ( 3 ) Additional insured. The board shall be named as an additional insured on all general liability, umbrella, and excess insurance poli- cies . All policies shall be primary over any other valid and collecta- ble insurance. 13 1 OTS-5501 . 4 34 NEW SECTION WAC 314-55-083 What are the security requirements for a marijuana licensee? The security requirements for a marijuana licensee are as follows : ( 1 ) Display of identification badge. All employees on the li- censed premises shall be required to hold and properly display an identification badge issued by the licensed employer at all times while on the licensed premises . ( 2 ) Alarm systems. At a minimum, each licensed premises must have a security alarm system on all perimeter entry points and perimeter windows . Motion detectors, pressure switches, duress, panic, and hold- up alarms may also be utilized. ( 3 ) Surveillance system. At a minimum, a complete video surveil- lance with minimum camera resolution of 640x470 pixel and must be In- ternet protocol ( IP) compatible and recording system for controlled areas within the licensed premises and entire perimeter fencing and gates enclosing an outdoor grow operation, to ensure control of the area . The requirements include image acquisition, video recording, management and monitoring hardware and support systems . All recorded images must clearly and accurately display the time and date. Time is to be measured in accordance with the U. S . National Institute Stand- ards and Technology standards . ( a ) All controlled access areas, security rooms/areas and all points of ingress/egress to limited access areas, all points of in- gress/egress to the exterior of the licensed premises, and all point- of-sale ( POS ) areas must have fixed camera coverage capable of identi- fying activity occurring within a minimum of twenty feet of all entry and exit points . (b) Camera placement shall allow for the clear and certain iden- tification of any individual on the licensed premises . ( c) All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points, and capable of clearly identifying any activities occurring within the facility or within the grow rooms in low light conditions . The surveillance system storage device must be secured on-site in a lock box, cabinet, closet, or se- cured in another manner to protect from employee tampering or criminal theft . (d) All perimeter fencing and gates enclosing an outdoor grow op- eration must have full video surveillance capable of clearly identify- ing any activities occurring within twenty feet of the exterior of the perimeter. Any gate or other entry point that is part of the enclosure for an outdoor growing operation must have fixed camera coverage capa- ble of identifying activity occurring within a minimum of twenty feet of the exterior, twenty-four hours a day. A motion detection lighting system may be employed to illuminate the gate area in low light condi- tions . ( e) Areas where marijuana is grown, cured or manufactured includ- ing destroying waste, shall have a camera placement in the room facing the primary entry door, and in adequate fixed positions, at a height which will provide a clear, unobstructed view of the regular activity without a sight blockage from lighting hoods, fixtures, or other equipment, allowing for the clear and certain identification of per- sons and activities at all times . ( f) All marijuana or marijuana-infused products that are intended to be removed or transported from marijuana producer to marijuana pro- [ 14 1 OTS-5501 . 4 35 censor and/or marijuana processor to marijuana retailer shall be stag- ed in an area known as the "quarantine" location for a minimum of twenty-four hours . Transport manifest with product information and weights must be affixed to the product . At no time during the quaran- tine period can the product be handled or moved under any circumstan- ces and is subject to auditing by the liquor control board or design- ees . (g) All camera recordings must be continuously recorded twenty- four hours a day. All surveillance recordings must be kept for a mini- mum of forty-five days on the licensee ' s recording device. All videos are subject to inspection by any liquor control board employee or law enforcement officer, and must be copied and provided to the board or law enforcement officer upon request . ( 4 ) Traceability: To prevent diversion and to promote public safety, marijuana licensees must track marijuana from seed to sale. Licensees must provide the required information on a system specified by the board. All costs related to the reporting requirements are borne by the licensee. Marijuana seedlings, clones, plants, lots of usable marijuana or trim, leaves, and other plant matter, batches of extracts and marijuana-infused products must be traceable from produc- tion through processing, and finally into the retail environment in- cluding being able to identify which lot was used as base material to create each batch of extracts or infused products . The following in- formation is required and must be kept completely up-to-date in a sys- tem specified by the board: ( a ) Key notification of "events, " such as when a plant enters the system (moved from the seedling or clone area to the vegetation pro- duction area at a young age) ; (b) When plants are to be partially or fully harvested or de- stroyed; ( c) When a lot or batch of marijuana-infused product is to be de- stroyed; (d) When usable marijuana or marijuana-infused products are transported; ( e) Any theft of marijuana seedlings, clones, plants, trim or other plant material, extract, infused product, or other item contain- ing marijuana; ( f) There is a seventy-two hour mandatory waiting period after the notification described in this subsection is given before any plant may be destroyed or a lot or batch of marijuana or marijuana-in- fused product may be destroyed; (g) There is a twenty-four hour mandatory waiting period after the notification described in this subsection to allow for inspection before a lot of marijuana is transported from a producer to a process- or; (h) There is a twenty-four hour mandatory waiting period after the notification described in this subsection to allow for inspection before useable marijuana, or marijuana-infused products are transpor- ted from a processor to a retailer. ( i ) Prior to reaching eight inches in height or width, each mari- juana plant must be tagged and tracked individually, which typically should happened when a plant is moved from the seed germination or clone area to the vegetation production area; (j ) A complete inventory of all marijuana seedlings, clones, all plants, lots of usable marijuana or trim, leaves, and other plant mat- ter, batches of extract and marijuana-infused products; ( k) All point of sale records; [ 15 1 OTS-5501 . 4 36 ( 1 ) Marijuana excise tax records; (m) All samples sent to an independent testing lab and the quali- ty assurance test results; (n) All free samples provided to another licensee for purposes of negotiating a sale; (o ) All samples used for testing for quality by the producer or processor; (p) Samples containing usable marijuana provided to retailers; (q) Samples provided to the board or their designee for quality assurance compliance checks; and ( r) Other information specified by the board. ( 5 ) Start-up inventory for marijuana producers. Within fifteen days of starting production operations a producer must have all non- flowering marijuana plants physically on the licensed premises . The producer must immediately record each marijuana plant that enters the facility in the traceability system during this fifteen day time frame . No flowering marijuana plants may be brought into the facility during this fifteen day time frame. After this fifteen day time frame expires, a producer may only start plants from seed or create clones from a marijuana plant located physically on their licensed premises, or purchase marijuana seeds, clones, or plants from another licensed producer. ( 6) Samples. Free samples of usable marijuana may be provided by producers or processors, or used for product quality testing, as set forth in this section. ( a ) Samples are limited to two grams and a producer may not pro- vide any one licensed processor more than four grams of usable mari- juana per month free of charge for the purpose of negotiating a sale. The producer must record the amount of each sample and the processor receiving the sample in the traceability system. (b) Samples are limited to two grams and a processor may not pro- vide any one licensed retailer more than four grams of usable marijua- na per month free of charge for the purpose of negotiating a sale. The processor must record the amount of each sample and the retailer re- ceiving the sample in the traceability system. ( c) Samples are limited to two units and a processor may not pro- vide any one licensed retailer more than six ounces of marijuana in- fused in solid form per month free of charge for the purpose of nego- tiating a sale. The processor must record the amount of each sample and the retailer receiving the sample in the traceability system. (d) Samples are limited to two units and a processor may not pro- vide any one licensed retailer more than twenty-four ounces of mari- juana-infused liquid per month free of charge for the purpose of nego- tiating a sale. The processor must record the amount of each sample and the retailer receiving the sample in the traceability system. ( e) Samples are limited to one-half gram and a processor may not provide any one licensed retailer more than one gram of marijuana-in- fused extract meant for inhalation per month free of charge for the purpose of negotiating a sale. The processor must record the amount of each sample and the retailer receiving the sample in the traceability system. ( f) Producers may sample one gram of useable marijuana per strain, per month for quality sampling. Sampling for quality may not take place at a licensed premises . Only the producer or employees of the licensee may sample the useable marijuana for quality. The produc- er must record the amount of each sample and the employee ( s ) conduct- ing the sampling in the traceability system. [ 16 1 OTS-5501 . 4 37 (g) Processors may sample one unit, per batch of a new edible marijuana-infused product to be offered for sale on the market . Sam- pling for quality may not take place at a licensed premises . Only the processor or employees of the licensee may sample the edible marijua- na-infused product . The processor must record the amount of each sam- ple and the employee ( s ) conducting the sampling in the traceability system. (h) Processors may sample up to one quarter gram, per batch of a new marijuana-infused extract for inhalation to be offered for sale on the market . Sampling for quality may not take place at a licensed premises . Only the processor or employee ( s ) of the licensee may sample the marijuana-infused extract for inhalation. The processor must re- cord the amount of each sample and the employee ( s ) conducting the sam- pling in the traceability system. ( i ) The limits described in subsection ( 3 ) of this section do not apply to the usable marijuana in sample jars that may be provided to retailers described in WAC 314-55-105 ( 8 ) . (j ) Retailers may not provide free samples to customers . NEW SECTION WAC 314-55-084 Production of marijuana. Only the following speci- fied soil amendments, fertilizers, other crop production aids, and pesticides may be used in the production of marijuana : ( 1 ) Materials listed or registered by the Washington state de- partment of agriculture (WSDA) or Organic Materials Review Institute (OMRI ) as allowable for use in organic production, processing, and handling under the U. S . Department of Agriculture ' s national organics standards, also called the National Organic Program (NOP) , consistent with requirements at 7 C. F. R. Part 205 . ( 2 ) Pesticides registered by WSDA under chapter 15 . 58 RCW as al- lowed for use in the production, processing, and handling of marijua- na . Pesticides must be used consistent with the label requirements . ( 3 ) Commercial fertilizers registered by WSDA under chapter 15 . 54 RCW. ( 4 ) Potting soil and other growing media available commercially in the state of Washington may be used in marijuana production. Pro- ducers growing outdoors are not required to meet land eligibility re- quirements outlined in 7 C. F. R. Part 205 . 202 . NEW SECTION WAC 314-55-085 What are the transportation requirements for a marijuana licensee? ( 1 ) Notification of shipment. Upon transporting any marijuana or marijuana product, a producer, processor or retailer shall notify the board of the type and amount and/or weight of mari- juana and/or marijuana products being transported, the name of trans- porter, times of departure and expected delivery. This information must be reported in the traceability system described in WAC 314-55-083 ( 4 ) . 17 ] OTS-5501 . 4 38 ( 2 ) Receipt of shipment. Upon receiving the shipment, the licen- see receiving the product shall report the amount and/or weight of marijuana and/or marijuana products received in the traceability sys- tem. ( 3 ) Transportation manifest. A complete transport manifest con- taining all information required by the board must be kept with the product at all times . ( 4 ) Records of transportation. Records of all transportation must be kept for a minimum of three years at the licensee ' s location. ( 5 ) Transportation of product. Marijuana or marijuana products that are being transported must meet the following requirements : ( a ) Only the marijuana licensee or an employee of the licensee may transport product; (b) Marijuana or marijuana products must be in a sealed package or container approved by the board pursuant to WAC 314-55-105; ( c) Sealed packages or containers cannot be opened during trans- port; (d) Marijuana or marijuana products must be in a locked, safe and secure storage compartment that is secured to the inside body/compart- ment of the vehicle transporting the marijuana or marijuana products; ( e ) Any vehicle transporting marijuana or marijuana products must travel directly from the shipping licensee to the receiving licensee and must not make any unnecessary stops in between except to other fa- cilities receiving product . NEW SECTION WAC 314-55-086 What are the mandatory signs a marijuana licensee must post on a licensed premises? ( 1 ) Notices regarding persons under twenty-one years of age must be conspicuously posted on the premises as follows : Sign must contain the Required location Type of licensee following language: of sign Marijuana 'Persons under Menty- Conspicuous producer, one years of age not location at each marijuana permitted on these entry to premises. processor,and premises." marijuana retailer The board will provide the required notices, or licensees may design their own notices as long as they are legible and contain the required language. ( 2 ) Signs provided by the board prohibiting opening a package of marijuana or marijuana-infused product in public or consumption of marijuana or marijuana-infused products in public, must be posted as follows : Type of premises Required location of sign Marijuana retail Posted in plain view at the main entrance to the establishment. ( 3 ) The premises ' current and valid master license with appropri- ate endorsements must be conspicuously posted on the premises and available for inspection by liquor enforcement officers . [ 18 ] OTS-5501 . 4 39 NEW SECTION WAC 314-55-087 What are the recordkeeping requirements for mari- juana licensees? ( 1 ) Marijuana licensees are responsible to keep re- cords that clearly reflect all financial transactions and the finan- cial condition of the business . The following records must be kept and maintained on the licensed premises for a three-year period and must be made available for inspection if requested by an employee of the liquor control board: ( a ) Purchase invoices and supporting documents, to include the items and/or services purchased, from whom the items were purchased, and the date of purchase; (b) Bank statements and canceled checks for any accounts relating to the licensed business; ( c) Accounting and tax records related to the licensed business and each true party of interest; (d) Records of all financial transactions related to the licensed business, including contracts and/or agreements for services performed or received that relate to the licensed business; ( e) All employee records, to include training; ( f) Records of each daily application of pesticides applied to the marijuana plants or growing medium. For each application, the pro- ducer shall record the following information on the same day the ap- plication is made : ( i ) Full name of each employee who applied the pesticide; ( ii ) The date the pesticide was applied; ( iii ) The name of the pesticide or product name listed on the registration label which was applied; ( iv) The concentration and total amount of pesticide per plant; and (v) For outdoor production, the concentration of pesticide that was applied to the field. Liquid applications may be recorded as, but are not limited to, amount of product per one hundred gallons of liq- uid spray, gallons per acre of output volume, ppm, percent product in tank mix ( e. g. , one percent ) . For chemigation applications, record "inches of water applied" or other appropriate measure. (g) Soil amendment, fertilizers, or other crop production aids applied to the growing medium or used in the process of growing mari- juana; (h) Production and processing records, including harvest and cur- ing, weighing, destruction of marijuana, creating batches of marijua- na-infused products and packaging into lots and units; ( i ) Records of each batch of extracts or infused marijuana prod- ucts made, including at a minimum, the lots of usable marijuana or trim, leaves, and other plant matter used ( including the total weight of the base product used) , any solvents or other compounds utilized, and the product type and the total weight of the end product produced, such as hash oil, shatter, tincture, infused dairy butter, etc. ; (j ) Transportation records as described in WAC 314-55-085; ( k) Inventory records; ( 1 ) All samples sent to an independent testing lab and the quali- ty assurance test results; (m) All free samples provided to another licensee for purposes of negotiating a sale; (n) All samples used for testing for quality by the producer or processor; 19 ] OTS-5501 . 4 40 (o ) Sample jars containing usable marijuana provided to retail- ers; and (p) Records of any theft of marijuana seedlings, clones, plants, trim or other plant material, extract, marijuana-infused product, or other item containing marijuana. ( 2 ) If the marijuana licensee keeps records within an automated data processing (ADP) and/or point-of-sale ( POS ) system, the system must include a method for producing legible records that will provide the same information required of that type of record within this sec- tion. The ADP and/or POS system is acceptable if it complies with the following guidelines : ( a ) Provides an audit trail so that details ( invoices and vouch- ers ) underlying the summary accounting data may be identified and made available upon request . (b) Provides the opportunity to trace any transaction back to the original source or forward to a final total . If printouts of transac- tions are not made when they are processed, the system must have the ability to reconstruct these transactions . ( c) Has available a full description of the ADP and/or POS por- tion of the accounting system. This should show the applications being performed, the procedures employed in each application, and the con- trols used to ensure accurate and reliable processing. ( 3 ) The provisions contained in subsections ( 1 ) and ( 2 ) of this section do not eliminate the requirement to maintain source documents, but they do allow the source documents to be maintained in some other location. NEW SECTION WAC 314-55-089 What are the tax and reporting requirements for marijuana licensees? ( 1 ) Marijuana licensees must submit monthly re- port ( s ) and payments to the board. The required monthly reports must be : ( a ) On a form or electronic system designated by the board; (b) Filed every month, including months with no activity or pay- ment due; ( c) Submitted, with payment due, to the board on or before the twentieth day of each month, for the previous month. ( For example, a report listing transactions for the month of January is due by Febru- ary 20th. ) When the twentieth day of the month falls on a Saturday, Sunday, or a legal holiday, the filing must be postmarked by the U. S . Postal Service no later than the next postal business day; (d) Filed separately for each marijuana license held; and ( e) All records must be maintained and available for review for a three-year period on licensed premises ( see WAC 314-55-087 ) . ( 2 ) Marijuana producer licensees: On a monthly basis, marijuana producers must maintain records and report purchases from other li- censed marijuana producers, current production and inventory on hand, sales by product type, and lost and destroyed product in a manner pre- scribed by the board. A marijuana producer licensee must pay to the board a marijuana excise tax of twenty-five percent of the selling price on each whole- sale sale to a licensed marijuana processor. [ 20 1 OTS-5501 . 4 41 ( 3 ) Marijuana processor licensees: On a monthly basis, marijuana processors must maintain records and report purchases from licensed marijuana producers, production of marijuana-infused products, sales by product type to marijuana retailers, and lost and/or destroyed product in a manner prescribed by the board. A marijuana processor licensee must pay to the board a marijuana excise tax of twenty-five percent of the selling price on each whole- sale sale of usable marijuana and marijuana-infused product to a li- censed marijuana retailer. ( 4 ) Marijuana retailer' s licensees: On a monthly basis, marijuana retailers must maintain records and report purchases from licensed marijuana processors, sales by product type to consumers, and lost and/or destroyed product in a manner prescribed by the board. A marijuana retailer licensee must pay to the board a marijuana excise tax of twenty-five percent of the selling price on each retail sale of usable marijuana or marijuana-infused products . NEW SECTION WAC 314-55-092 What if a marijuana licensee fails to report or pay, or reports or pays late? ( 1 ) If a marijuana licensee does not submit its monthly reports and payment ( s ) to the board as required in WAC 314-55-089 : The licensee is subject to penalties . Penalties: A penalty of two percent per month will be assessed on any payments postmarked after the twentieth day of the month following the month of sale. When the twentieth day of the month falls on a Sat- urday, Sunday, or a legal holiday, the filing must be postmarked by the U. S . Postal Service no later than the next postal business day. ( 2 ) Failure to make a report and/or pay the license taxes and/or penalties in the manner and dates outlined in WAC 314-55-089 will be sufficient grounds for the board to suspend or revoke a marijuana li- cense. NEW SECTION WAC 314-55-095 Marijuana servings and transaction limitations. Marijuana dosage and transaction limitations are as follows : ( 1 ) Single serving. A single serving of a marijuana-infused prod- uct amounts to ten milligrams active tetrahydrocannabinol (THC) , or Delta 9 . ( 2 ) Maximum number of servings. The maximum number of servings in any one single unit of marijuana-infused product meant to be eaten or swallowed is ten servings or one hundred milligrams of active THC, or Delta 9 . A single unit of marijuana-infused extract for inhalation cannot exceed one gram. ( 3 ) Transaction limitation. A single transaction is limited to one ounce of usable marijuana, sixteen ounces of marijuana-infused product in solid form, seven grams of marijuana-infused extract for inhalation, and seventy-two ounces of marijuana-infused product in liquid form for persons twenty-one years of age and older. [ 21 1 OTS-5501 . 4 42 NEW SECTION WAC 314-55-097 Marijuana waste disposal—Liquids and solids. ( 1 ) Solid and liquid wastes generated during marijuana production and pro- cessing must be stored, managed, and disposed of in accordance with applicable state and local laws and regulations . ( 2 ) Wastewater generated during marijuana production and process- ing must be disposed of in compliance with applicable state and local laws and regulations . ( 3 ) Wastes from the production and processing of marijuana plants must be evaluated against the state ' s dangerous waste regulations ( chapter 173-303 WAC) to determine if those wastes designate as dan- gerous waste. It is the responsibility of each waste generator to properly evaluate their waste to determine if it designates as a dan- gerous waste. If a generator ' s waste does designate as a dangerous waste, then that waste ( s ) is subject to the applicable management standards found in chapter 173-303 WAC. ( a ) Wastes that must be evaluated against the dangerous waste regulations include, but are not limited to, the following: ( i ) Waste from marijuana flowers, trim and solid plant material used to create an extract (per WAC 315-55-104 ) . ( ii ) Waste solvents used in the marijuana process (per WAC 315-55-104 ) . ( iii ) Discarded plant waste, spent solvents and laboratory wastes from any marijuana processing or quality assurance testing. ( iv) Marijuana extract that fails to meet quality testing. (b) Marijuana wastes that do not designate as dangerous shall be managed in accordance with subsection ( 4 ) of this section. ( c) A marijuana plant, usable marijuana, trim and other plant ma- terial in itself is not considered dangerous waste as defined under chapter 173-303 WAC unless it has been treated or contaminated with a solvent . ( 4 ) Marijuana waste that does not designate as dangerous waste (per subsection ( 3 ) of this section) must be rendered unusable follow- ing the methods in subsection ( 5 ) of this section prior to leaving a licensed producer, processor, retail facility, or laboratory. Disposal of the marijuana waste rendered unusable must follow the methods under subsection ( 6) of this section. ( a ) Wastes that must be rendered unusable prior to disposal in- clude, but are not limited to, the following: ( i ) Waste evaluated per subsection ( 3 ) of this section and deter- mined to not designate as "Dangerous Waste. " ( ii ) Marijuana plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent . ( iii ) Solid marijuana sample plant waste possessed by third-party laboratories accredited by the board to test for quality assurance that must be disposed of. ( iv) Other wastes as determined by the LCB. (b) A producer or processor must provide the board a minimum of seventy-two hours notice in the traceability system described in WAC 314-55-083 ( 4 ) prior to rendering the product unusable and disposing of it . ( 5 ) The allowable method to render marijuana plant waste unusable is by grinding and incorporating the marijuana plant waste with other ground materials so the resulting mixture is at least fifty percent [ 22 1 OTS-5501 . 4 43 nonmarijuana waste by volume. Other methods to render marijuana waste unusable must be approved by LCB before implementation. Material used to grind with the marijuana falls into two catego- ries : Compostable waste and noncompostable waste. ( a ) Compostable mixed waste: Marijuana waste to be disposed as compost feedstock or in another organic waste method ( for example, anaerobic digester) may be mixed with the following types of waste ma- terials : ( i ) Food waste; ( ii ) Yard waste; ( iii ) Vegetable based grease or oils; or ( iv) Other wastes as approved by the LCB. (b) Noncompostable mixed waste: Marijuana waste to be disposed in a landfill or another disposal method ( for example, incinerator) may be mixed with the following types of waste materials : ( i ) Paper waste; ( ii ) Cardboard waste; ( iii ) Plastic waste; ( iv) Soil; or (v) Other wastes as approved by the LCB. ( 6) Marijuana wastes rendered unusable following the method de- scribed in subsection ( 4 ) of this section can be disposed. ( a ) Disposal of the marijuana waste rendered unusable may be de- livered to a permitted solid waste facility for final disposition. Ex- amples of acceptable permitted solid waste facilities include: ( i ) Compostable mixed waste: Compost, anaerobic digester, or oth- er facility with approval of the jurisdictional health department . ( ii ) Noncompostable mixed waste: Landfill, incinerator, or other facility with approval of the jurisdictional health department . (b) Disposal of the marijuana waste rendered unusable may be man- aged on-site by the generator in accordance with the standards of chapter 173-350 WAC. ( c) A record of the final destination of marijuana waste rendered unusable . NEW SECTION WAC 314-55-099 Standardized scales. ( 1 ) Marijuana producer and processor licensees must have at least one scale on the licensed prem- ises for the traceability and inventory of products . ( 2 ) The scales and other measuring devices are subject to chapter 19 . 94 RCW, and must meet the requirements of the most current version of chapters 16-662 and 16-664 WAC. ( 3 ) Licensees must register scales on a business license applica- tion with business license services through the department of revenue as required under chapter 19 . 94 RCW. NEW SECTION WAC 314-55-102 Quality assurance testing. ( 1 ) A person with fi- nancial interest in an accredited third-party testing lab may not have [ 23 1 OTS-5501 . 4 44 direct or indirect financial interest in a licensed marijuana producer or processor for whom they are conducting required quality assurance tests . ( 2 ) As a condition of accreditation, each lab must employ a sci- entific director responsible to ensure the achievement and maintenance of quality standards of practice. The scientific director shall meet the following minimum qualifications : ( a ) Has earned, from a college or university accredited by a na- tional or regional certifying authority a doctorate in the chemical or biological sciences and a minimum of two years ' post-degree laboratory experience; or (b) Has earned a master ' s degree in the chemical or biological sciences and has a minimum of four years ' of post-degree laboratory experience; or ( c) Has earned a bachelor ' s degree in the chemical or biological sciences and has a minimum of six years of post-education laboratory experience. ( 3 ) As a condition of accreditation, labs must follow the most current version of the Cannabis Inflorescence and Leaf monograph pub- lished by the American Herbal Pharmacopoeia or notify the board what alternative scientifically valid testing methodology the lab is fol- lowing for each quality assurance test . The board may require third- party validation of any monograph or analytical method followed by the lab to ensure the methodology produces scientifically accurate results prior to them using those standards when conducting required quality assurance tests . ( 4 ) As a condition of accreditation, the board may require third- party validation and ongoing monitoring of a lab ' s basic proficiency to correctly execute the analytical methodologies employed by the lab. ( 5 ) Labs must adopt and follow minimum good lab practices (GLPs ) , and maintain internal standard operating procedures ( SOPS ) , and a quality control/quality assurance (QC/QA) program as specified by the board. The board or authorized third-party organization can conduct audits of a lab ' s GLPs, SOPS, QC/QA, and inspect all other related re- cords . ( 6) The general body of required quality assurance tests for mar- ijuana flowers, infused products, and extracts may include moisture content, potency analysis, foreign matter inspection, microbiological screening, pesticide and other chemical residue and metals screening, and residual solvents levels . ( 7 ) Table of required quality assurance tests . Product Test(s)Required Sample Size Needed to Complete all Tests Flowers to be sold as usable marijuana(see note 1.Moisture content Up to 7 grams below) 2.Potency analysis 3.Foreign matter inspection 4.Microbiological screening Flowers to be used to make an extract None None (nonsolvent)like kief,hashish,bubble hash,or infused dairy butter,or oils or fats derived from natural sources Extract(nonsolvent)like kief,hashish,bubble 1.Potency analysis Up to 7 grams hash or infused dairy butter,or oils or fats 2.Foreign matter inspection derived from natural sources 3.Microbiological screening Flowers to be used to make an extract(solvent j 1.Foreign matter inspection Up to 7 grams based),made with a COz extractor,or with a 2.Microbiological screening food grade ethanol or glycerin 24 1 OTS-5501 . 4 45 Product Test(s)Required Sample Size Needed to Complete all Tests Extract(solvent based)made using n-butane, 1.Potency analysis Up to 2 grams isobutane,propane,heptane,or other solvents or 2.Residual solvent test gases approved by the board of at least 99% 3.Microbiological screening(only if using purity flowers and other plant material that failed initial test) Extract made with a CO2 extractor like hash oil 1.Potency analysis Up to 2 grams 2.Microbiological screening(only if using flowers and other plant material that failed initial test) Extract made with food grade ethanol 1.Potency analysis Up to 2 grams 2.Microbiological screening(only if using flowers and other plant material that failed initial test) Extract made with food grade glycerin or 1.Potency analysis Up to 1 gram propylene glycol Infused edible 1.Potency analysis 1 unit 2.Microbiological screening Infused liquid like a soda or tonic 1.Potency analysis 1 unit 2.Microbiological screening Infused topical 1.Potency analysis 1 unit ( 8 ) Independent testing labs may request additional sample mate- rial in excess of amounts listed in the table in subsection ( 7 ) of this section for the purposes of completing required quality assurance tests . Labs meeting the board ' s accreditation requirements may re- trieve samples from a marijuana licensee ' s licensed premises and transport the samples directly to the lab. ( 9 ) Labs meeting the board ' s accreditation requirements are not limited in the amount of useable marijuana and marijuana products they may have on their premises at any given time, but they must have re- cords to prove all marijuana and marijuana-infused products only for the testing purposes described in WAC 314-55-102 . ( 10 ) At the discretion of the board, a producer or processor must provide an employee of the board or their designee samples in the amount listed in subsection ( 7 ) of this section for random compliance checks . Samples may be screened for pesticides and chemical residues, unsafe levels of metals, and used for other quality assurance tests deemed necessary by the board. All costs of this testing will be borne by the producer or processor. ( 11 ) No lot of usable flower or batch of marijuana-infused prod- uct may be sold or transported until the completion of all required quality assurance testing. ( 12 ) Any useable marijuana or marijuana-infused product that passed the required quality assurance tests may be labeled as "Class A. " Only "Class A" useable marijuana or marijuana-infused product will be allowed to be sold. ( 13 ) If a lot of marijuana flowers fail a quality assurance test, any marijuana plant trim, leaf and other usable material from the same plants automatically fails quality assurance testing also . Upon appro- val of the board, a lot that fails a quality assurance test may be used to make a CO2 or solvent based extract . After processing, the CO2 or solvent based extract must still pass all required quality assur- ance tests in WAC 314-55-102 . ( 14 ) At the request of the producer or processor, the board may authorize a retest to validate a failed test result on a case-by-case basis . All costs of the retest will be borne by the producer or the processor. 25 1 OTS-5501 . 4 46 NEW SECTION WAC 314-55-104 Marijuana processor license extraction require- ments. (1 ) Processors are limited to certain methods, equipment, sol- vents, gases and mediums when creating marijuana extracts . ( 2 ) Processors may use the hydrocarbons N-butane, isobutane, pro- pane, or heptane or other solvents or gases exhibiting low to minimal potential human health-related toxicity approved by the board. These solvents must be of at least ninety-nine percent purity and a process- or must use them in a professional grade closed loop extraction system designed to recover the solvents, work in a spark free environment with proper ventilation, and follow all applicable local fire, safety and building codes in processing and the storage of the solvents . ( 3 ) Processors may use a professional grade closed loop CO2 gas extraction system where every vessel is rated to a minimum of nine hundred pounds per square inch and follow all applicable local fire, safety and building codes in processing and the storage of the sol- vents . The CO2 must be of at least ninety-nine percent purity. ( 4 ) Processors may use heat, screens, presses, steam distilla- tion, ice water, and other methods without employing solvents or gases to create kief, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts . ( 5 ) Processors may use food grade glycerin, ethanol, and propy- lene glycol solvents to create extracts . ( 6) Processors creating marijuana extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace. Any person using solvents or gases in a closed looped system to create marijuana ex- tracts must be fully trained on how to use the system, have direct ac- cess to applicable material safety data sheets and handle and store the solvents and gases safely. ( 7 ) Parts per million for one gram of finished extract cannot ex- ceed 500 parts per million or residual solvent or gas when quality as- surance tested per RCW 69 . 50 . 348 . NEW SECTION WAC 314-55-105 Packaging and labeling requirements. ( 1 ) All usa- ble marijuana and marijuana products must be stored behind a counter or other barrier to ensure a customer does not have direct access to the product . ( 2 ) Any container or packaging containing usable marijuana or marijuana products must protect the product from contamination and must not impart any toxic or deleterious substance to the usable mari- juana or marijuana product . ( 3 ) Upon the request of a retail customer, a retailer must dis- close the name of the accredited third-party testing lab and results of the required quality assurance test for any usable marijuana or other marijuana product the customer is considering purchasing. ( 4 ) usable marijuana and marijuana products may not be labeled as organic unless permitted by the United States Department of Agricul- ture in accordance with the Organic Foods Production Act . [ 26 1 OTS-5501 . 4 47 ( 5 ) The accredited third-party testing lab and required results of the quality assurance test must be included with each lot and dis- closed to the customer buying the lot . ( 6) A marijuana producer must make quality assurance test results available to any processor purchasing product . A marijuana producer must label each lot of marijuana with the following information: ( a ) Lot number; (b) UBI number of the producer; and ( c) Weight of the product . ( 7 ) Marijuana-infused products meant to be eaten, swallowed, or inhaled, must be packaged in child resistant packaging in accordance with Title 16 C. F. R. 1700 of the Poison Prevention Packaging Act or use standards specified in this subsection. Marijuana-infused product in solid or liquid form may be packaged in plastic four mil or greater in thickness and be heat sealed with no easy-open tab, dimple, corner, or flap as to make it difficult for a child to open and as a tamper- proof measure . Marijuana-infused product in liquid form may also be sealed using a metal crown cork style bottle cap. ( 8 ) A processor may provide a retailer free samples of usable marijuana packaged in a sample jar protected by a plastic or metal mesh screen to allow customers to smell the product before purchase. The sample jar may not contain more than three and one-half grams of usable marijuana . The sample jar and the usable marijuana within may not be sold to a customer and must be either returned to the licensed processor who provide the usable marijuana and sample jar or destroyed by the retailer after use in the manner described in WAC 314-55-097 and noted in the traceability system. ( 9 ) A producer or processor may not treat or otherwise adulterate usable marijuana with any organic or nonorganic chemical or other com- pound whatsoever to alter the color, appearance, weight, or smell of the usable marijuana . ( 10 ) Labels must comply with the version of NISI Handbook 130, Uniform Packaging and Labeling Regulation adopted in chapter 16-662 WAC. ( 11 ) All usable marijuana when sold at retail must include accom- panying material that contains the following warnings that state: ( a ) "Warning: This product has intoxicating effects and may be habit forming. Smoking is hazardous to your health" ; (b) "There may be health risks associated with consumption of this product" ; ( c) "Should not be used by women that are pregnant or breast feeding" • (d) "For use only by adults twenty-one and older. Keep out of reach of children" ; ( e) "Marijuana can impair concentration, coordination, and judg- ment . Do not operate a vehicle or machinery under the influence of this drug" ; ( f) Statement that discloses all pesticides applied to the mari- juana plants and growing medium during production and processing. ( 12 ) All marijuana-infused products sold at retail must include accompanying material that contains the following warnings that state: ( a ) "There may be health risks associated with consumption of this product" ; (b) "This product is infused with marijuana or active compounds of marijuana" ; ( c) "Should not be used by women that are pregnant or breast feeding" ; 27 ] OTS-5501 . 4 48 (d) "For use only by adults twenty-one and older. Keep out of reach of children" ; ( e) "Products containing marijuana can impair concentration, co- ordination, and judgment . Do not operate a vehicle or machinery under the influence of this drug" ; ( f) "Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by two or more hours" ; (g) Statement that discloses all pesticides applied to the mari- juana plants and growing medium during production of the base marijua- na used to create the extract added to the infused product; and (h) Statement that discloses the type of extraction method, in- cluding any solvents, gases, or other chemicals or compounds used to produce or that are added to the extract . ( 13 ) Labels affixed to the container or package containing usable marijuana sold at retail must include: ( a ) The business or trade name and Washington state unified busi- ness identifier number of the licensees that produced, processed, and sold the usable marijuana; (b) Lot number; ( c) Concentration of THC, THCA, CBD, including a total of active cannabinoids (potency profile) ; (d) Net weight in ounces and grams or volume as appropriate; ( e) Warnings that state: "This product has intoxicating effects and may be habit forming" ; ( f) Statement that "This product may be unlawful outside of Wash- ington state" ; (g) Date of harvest . (h) The board may create a logo that must be placed on all usable marijuana and marijuana-infused products . ( 14 ) Sample label mock up for a container or package containing usable marijuana sold at retail with required information: U81:1234567890010001 Lottt:1423 Date of Harvest:4-14 The Best Resins Blueberry haze 16.7%THC 1.5%CBD Warning—This product has intoxicating effect and may be habit forming THIS PRODUCT IS UNLAWFUL OUTSIDE WASHINGTON STATE Net weight:7 grams ( 15 ) Labels affixed to the container or package containing mari- juana-infused products sold at retail must include: ( a ) The business or trade name and Washington state unified busi- ness identifier number of the licensees that produced, processed, and sold the usable marijuana; (b) Lot numbers of all base marijuana used to create the extract; ( c) Batch number; (d) Date manufactured; 28 1 OTS-5501 . 4 49 ( e) Best by date; ( f) Recommended serving size and the number of servings contained within the unit, including total milligrams of active tetrahydrocanna- binol (THC) , or Delta 9; (g) Net weight in ounces and grams, or volume as appropriate; (h) List of all ingredients and any allergens; ( i ) "Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by two or more hours . " (j ) If a marijuana extract was added to the product, disclosure of the type of extraction process and any solvent, gas, or other chem- ical used in the extraction process, or any other compound added to the extract; ( k) Warnings that state: "This product has intoxicating effects and may be habit forming" ; ( 1 ) Statement that "This product may be unlawful outside of Wash- ington state" ; (m) The board may create a logo that must be placed on all usable marijuana and marijuana-infused products . ( 16 ) Sample label mock up (front and back) for a container or package containing marijuana-infused products sold at retail with re- quired information: ( Front of label ) UBI 1234567890010001 Bauchi 5463 The Best Resins Spacecake CAUTION:when eaten the effects of this product can be delayed byes much as two hours. Net weight 6oz(128garl THIS PRODUCT IS UNLAWFUL OUTSIDE WASHINGTON STATE (Back of label ) Manufactured at 111 Old Hwy Rd,Mytown,WA on 1/14/14 Best by 2/1/14 INGREDIENTS: Flour,Butter,Carols oil,Sugar,Chocolate,Marijuana,Strawberries, CONTAINS ALLERGENS:Milk,Wheat Serving size:10 MG of THC This product contains 10 servings and a total of 100 MG of THC Warning-This product has intoxicating effects and may be habitforming NEW SECTION WAC 314-55-120 Ownership changes. ( 1 ) Licensees must receive pri- or board approval before making any of the following ownership changes ( see WAC 314-55-035 for the definition of "true party of interest" ) : [ 29 1 OTS-5501 . 4 50 Type of Type of change application Fee Change m the New application. Application fee qualifying and annual fee persons in a: for current Sole license privilege. proprietorship, general partnership, limited partnership, or limited liability partnership. Change m the Application for $75 qualifying change in persons for a corporate officer publicly or and/or privately held stockholder. corporation. The board will waive the fee for a corporate change when the proposed change consists solely of dropping an approved officer. Change m the Application for $75 qualifying change of persons in a limited liability limited liability company company. member and/or manager. ( 2 ) The board may inquire into all matters in connection with any such sale of stock/units or proposed change in officers/members . NEW SECTION WAC 314-55-125 Change of location. ( 1 ) Changing your marijuana license to a new location requires an application, per the process outlined in WAC 314-55-020 . ( 2 ) A change of location occurs any time a move by the licensee results in any change to the physical location address . NEW SECTION WAC 314-55-130 Change of business name. ( 1 ) If you wish to change the name of your business, you must apply for a change of trade name with the department of revenue, business license service. ( 2 ) If you wish to change your corporation or limited liability company name, you must apply for a change of name through the secreta- ry of state . ( 3 ) See chapter 434-12 WAC for guidelines for trade names . [ 30 1 OTS-5501 . 4 51 NEW SECTION WAC 314-55-135 Discontinue marijuana sales. You must notify the board ' s enforcement and education division in writing if you plan to stop doing business for more than thirty days, or if you plan to per- manently discontinue marijuana sales . NEW SECTION WAC 314-55-140 Death or incapacity of a marijuana licensee. ( 1 ) The appointed guardian, executor, administrator, receiver, trustee, or assignee must notify the board ' s licensing and regulation division in the event of the death, incapacity, receivership, bankruptcy, or as- signment for benefit of creditors of any licensee. ( 2 ) The board may give the appointed guardian, executor, adminis- trator, receiver, trustee, or assignee written approval to continue marijuana sales on the licensed business premises for the duration of the existing license and to renew the license when it expires . ( a ) The person must be a resident of the state of Washington. (b) A criminal background check may be required. ( 3 ) When the matter is resolved by the court, the true party( ies ) of interest must apply for a marijuana license for the business . NEW SECTION WAC 314-55-145 Are marijuana license fees refundable? When a li- cense is suspended or canceled, or the licensed business is discontin- ued, the unused portion of the marijuana license fee will not be re- funded. NEW SECTION WAC 314-55-147 What hours may a marijuana retailer licensee con- duct sales? A marijuana retailer licensee may sell usable marijuana, marijuana-infused products, and marijuana paraphernalia between the hours of 8 a .m. and 12 a .m. NEW SECTION WAC 314-55-150 What are the forms of acceptable identification? ( 1 ) Following are the forms of identification that are acceptable to verify a person ' s age for the purpose of purchasing marijuana : ( a ) Driver ' s license, instruction permit, or identification card of any state, or province of Canada, from a U. S . territory or the Dis- [ 31 1 OTS-5501 . 4 52 trict of Columbia, or "identicard" issued by the Washington state de- partment of licensing per RCW 46. 20 . 117 ; (b) United States armed forces identification card issued to ac- tive duty, reserve, and retired personnel and the personnel ' s depend- ents, which may include an embedded, digital signature in lieu of a visible signature; ( c) Passport; (d) Merchant Marine identification card issued by the United States Coast Guard; and ( e) Enrollment card issued by the governing authority of a feder- ally recognized Indian tribe located in Washington, if the enrollment card incorporates security features comparable to those implemented by the department of licensing for Washington driver ' s licenses . ( 2 ) The identification document is not acceptable to verify age if expired. NEW SECTION WAC 314-55-155 Advertising. ( 1 ) Advertising by retail licensees. The board limits each retail licensed premises to one sign identifying the retail outlet by the licensee ' s business name or trade name that is affixed or hanging in the windows or on the outside of the premises that is visible to the general public from the public right of way. The size of the sign is limited to sixteen hundred square inches . ( 2 ) General . All marijuana advertising and labels of useable mar- ijuana and marijuana-infused products sold in the state of Washington may not contain any statement, or illustration that : ( a ) Is false or misleading; (b) Promotes over consumption; ( c) Represents the use of marijuana has curative or therapeutic effects; (d) Depicts a child or other person under legal age to consume marijuana, or includes : ( i ) Objects, such as toys, characters, or cartoon characters sug- gesting the presence of a child, or any other depiction designed in any manner to be especially appealing to children or other persons un- der legal age to consume marijuana; or ( ii ) Is designed in any manner that would be especially appealing to children or other persons under twenty-one years of age. ( 3 ) No licensed marijuana producer, processor, or retailer shall place or maintain, or cause to be placed or maintained, an advertise- ment of marijuana, usable marijuana, or a marijuana-infused product in any form or through any medium whatsoever: ( a ) Within one thousand feet of the perimeter of a school grounds, playground, recreation center or facility, child care center, public park, library, or a game arcade admission to which it is not restricted to persons aged twenty-one years or older; (b) On or in a public transit vehicle or public transit shelter; or ( c) On or in a publicly owned or operated property. ( 4 ) Giveaways, coupons, and distribution of branded merchandise are banned. ( 5 ) All advertising must contain the following warnings : [ 32 1 OTS-5501 . 4 63 ( a ) "This product has intoxicating effects and may be habit form- ing. " • (b) "Marijuana can impair concentration, coordination, and judg- ment . Do not operate a vehicle or machinery under the influence of this drug. " ; ( c) "There may be health risks associated with consumption of this product . " ; and (d) "For use only by adults twenty-one and older. Keep out of the reach of children. " NEW SECTION WAC 314-55-160 Objections to marijuana license applications. ( 1 ) How can persons, cities, counties, tribal governments, or port author- ities object to the issuance of a marijuana license? Per RCW 69 . 50 . 331, the board will notify cities, counties, tribal governments, and port authorities of the following types of marijuana applications . In addition to these entities, any person or group may comment in writing to the board regarding an application. Entities the board Type of application will/may notify Applications for an Cities and counties in annual marijuana which the premises is license at a new located will be location. notified. Tribal governments and port authorities in which the premises is located may be notified. Applications to change the class of an existing annual marijuana license. Changes of Cities and counties in ownership at existing which the premises is licensed premises. located will be notified. Tribal governments and port authorities in which the premises is located may be notified. ( 2 ) What will happen if a person or entity objects to a marijuana license application? When deciding whether to issue or deny a marijua- na license application, the board will give substantial weight to in- put from governmental jurisdictions in which the premises is located based upon chronic illegal activity associated with the applicant ' s operations of the premises proposed to be licensed or the applicant ' s operation of any other licensed premises; and other persons or groups . Note: Per RCW 69 . 50 . 331, the board shall not issue a new marijuana li- cense if any of the following are within one thousand feet of the premises to be licensed: Any elementary or secondary schools, play- grounds, recreation centers or facilities, child care centers, public [ 33 1 OTS-5501 . 4 64 parks, public transit centers, libraries, game arcade where admission is not restricted to persons twenty-one years of age or older. ( a ) If the board contemplates issuing a license over the objec- tion of a governmental jurisdiction in which the premises is located, the government subdivision may request an adjudicative hearing under the provisions of the Administrative Procedure Act, chapter 34 . 05 RCW. If the board, in its discretion, grants the governmental jurisdic- tion ( s ) an adjudicative hearing, the applicant will be notified and given the opportunity to present evidence at the hearing. (b) If the board denies a marijuana license application based on the objection from a governmental jurisdiction, the applicant ( s ) may either: ( i ) Reapply for the license no sooner than one year from the date on the final order of denial; or ( ii ) Submit a written request on a form provided by the board for an adjudicative hearing under the provisions of the Administrative Procedure Act, chapter 34 . 05 RCW. The request must be received within twenty days of the date the intent to deny notification was mailed. NEW SECTION WAC 314-55-165 Objections to marijuana license renewals. ( 1 ) How can local cities, counties, tribal governments, or port authorities object to the renewal of a marijuana license? ( a ) The board will give governmental jurisdictions approximately ninety days written notice of premises that hold annual marijuana li- censes in that jurisdiction that are up for renewal . (b) Per RCW 69 . 50 . 331, if a county, city, tribal government, or port authority wants to object to the renewal of a marijuana license in its jurisdiction, it must submit a letter to the board detailing the reason ( s ) for the objection and a statement of all facts on which the objections are based. ( c) The county, city, tribal government, or port authority may submit a written request to the board for an extension for good cause shown. (d) This letter must be received by the board at least thirty days before the marijuana license expires . The objection must state specific reasons and facts that show issuance of the marijuana license at the proposed location or to the applicant business how it will det- rimentally impact the safety, health, or welfare of the community. ( e) If the objection is received within thirty days of the expi- ration date or the licensee has already renewed the license, the ob- jection will be considered as a complaint and possible license revoca- tion may be pursued by the enforcement division. ( f) Objections from the public will be referred to the appropri- ate city, county, tribal government, or port authority for action un- der subsection ( 2 ) of this section. Upon receipt of the objection, the board licensing and regulation division will acknowledge receipt of the objection ( s ) and forward to the appropriate city, county, tribal government, or port authority. Such jurisdiction may or may not, based on the public objection, request nonrenewal . ( 2 ) What will happen if a city, county, tribal government, or port authority objects to the renewal of a marijuana license? The board will give substantial weight to a city, county, tribal govern- [ 34 1 OTS-5501 . 4 55 ment, or port authority objection to a marijuana license renewal of a premises in its jurisdiction based upon chronic illegal activity asso- ciated with the licensee ' s operation of the premises . Based on the ju- risdiction ' s input and any information in the licensing file, the board will decide to either renew the marijuana license, or to pursue nonrenewal . (a)Board decides to (b)Board decides to renew the marijuana pursue nonrenewal of the license: marijuana license: (i)The board will notify (i)The board will notify the jurisdiction(s) in the licensee in writing of writing of its intent to its intent to not renew the renew the license, stating license, stating the reason the reason for this for this decision. decision. (it)The jurisdiction(s)may (it)The licensee may contest the renewal and contest the nonrenewal request an adjudicative action and request an hearing under the adjudicative hearing under provisions of the the provisions of the Administrative Procedure Administrative Procedure Act(chapter 34.05 RCW) Act(chapter 34.05 RCW) by submitting a written by submitting a written request on a form provided request on a form provided by the board. The request by the board. The request must be received within must be received within twenty days of the date the twenty days of the date the intent to renew notification intent to deny notification was mailed. If the board, was mailed. in its discretion,grants the (in)If the licensee requests governmental a hearing,the jurisdiction(s) an governmental jurisdiction adjudicative hearing,the will be notified. applicant will be notified and given the opportunity (iv)During the hearing to present evidence at the and any subsequent appeal hearing. process,the licensee is issued a temporary operating permit for the marijuana license until a final decision is made. NEW SECTION WAC 314-55-505 What are the procedures for notifying a licensee of an alleged violation of a liquor control board statute or regula- tion? ( 1 ) When an enforcement officer believes that a licensee has violated a board statute or regulation, the officer may prepare an ad- ministrative violation notice (AVN) and mail or deliver the notice to the licensee, licensee ' s agent, or employee. ( 2 ) The AVN notice will include: ( a ) A complete narrative description of the violation ( s ) the of- ficer is charging; (b) The date ( s ) of the violation ( s ) ; ( c) A copy of the law( s ) and/or regulation ( s ) allegedly violated; (d) An outline of the licensee ' s options as outlined in WAC 314-55-510; and ( e) The recommended penalty. [ 35 ] OTS-5501 . 4 66 ( i ) If the recommended penalty is the standard penalty, see WAC 314-55-520 through 314-55-535 for licensees . ( ii ) For cases in which there are aggravating or mitigating cir- cumstances, the penalty may be adjusted from the standard penalty. NEW SECTION WAC 314-55-506 What is the process once the board summarily sus- pends a marijuana license? ( 1 ) The board may summarily suspend any li- cense after the board ' s enforcement division has completed a prelimi- nary staff investigation of the violation and upon a determination that immediate cessation of the licensed activities is necessary for the protection or preservation of the public health, safety, or wel- fare . ( 2 ) Suspension of any license under this provision shall take ef- fect immediately upon personal service on the licensee or employee thereof of the summary suspension order unless otherwise provided in the order. ( 3 ) When a license has been summarily suspended by the board, an adjudicative proceeding for revocation or other action must be prompt- ly instituted before an administrative law judge assigned by the of- fice of administrative hearings . If a request for an administrative hearing is timely filed by the licensee or permit holder, then a hear- ing shall be held within ninety days of the effective date of the sum- mary suspension ordered by the board. NEW SECTION WAC 314-55-507 How may a licensee challenge the summary suspen- sion of his or her marijuana license? ( 1 ) Upon summary suspension of a license by the board pursuant to WAC 314-55-506, an affected licensee may petition the board for a stay of suspension pursuant to RCW 34 . 05 . 467 and 34 . 05 . 550 ( 1 ) . A petition for a stay of suspension must be received by the board within fifteen days of service of the summary suspension order. The petition for stay shall state the basis on which the stay is sought . ( 2 ) A hearing shall be held before an administrative law judge within fourteen days of receipt of a timely petition for stay. The hearing shall be limited to consideration of whether a stay should be granted, or whether the terms of the suspension may be modified to al- low the conduct of limited activities under current licenses or per- mits . ( 3 ) Any hearing conducted pursuant to subsection ( 2 ) of this sec- tion shall be a brief adjudicative proceeding under RCW 34 . 05 . 485 . The agency record for the hearing shall consist of the documentary infor- mation upon which the summary suspension was based. The licensee or permit holder shall have the burden of demonstrating by clear and con- vincing evidence that : ( a ) The licensee is likely to prevail upon the merits at hearing; [ 36 1 OTS-5501 . 4 57 (b) Without relief, the licensee will suffer irreparable injury. For purposes of this section, elimination of income from licensed ac- tivities shall not be deemed irreparable injury; ( c) The grant of relief will not substantially harm other parties to the proceedings; and (d) The threat to the public health, safety, or welfare is not sufficiently serious to justify continuation of the suspension, or that modification of the terms of the suspension will adequately pro- tect the public interest . ( 4 ) The initial order on stay shall be effective immediately upon service unless another date is specified in the order. NEW SECTION WAC 314-55-508 Review of orders on stay. ( 1 ) The licensee, or agency, may petition the board for review of an initial order on stay. Any petition for review must be in writing and received by the board within ten days of service of the initial order. If neither party has requested review within ten days of service, the initial order shall be deemed the final order of the board for purposes of RCW 34 . 05 . 467 . ( 2 ) If the board receives a timely petition for review, the board shall consider the petition within fifteen days of service of the pe- tition for review. Consideration on review shall be limited to the re- cord of the hearing on stay. ( 3 ) The order of the board on the petition for review shall be effective upon personal service unless another date is specified in the order and is final pursuant to RCW 34 . 05 . 467 . Final disposition of the petition for stay shall not affect subsequent administrative pro- ceedings for suspension or revocation of a license. NEW SECTION WAC 314-55-510 What options does a licensee have once he/she re- ceives a notice of an administrative violation? ( 1 ) A licensee has twenty days from receipt of the notice to: ( a ) Accept the recommended penalty; or (b) Request a settlement conference in writing; or ( c) Request an administrative hearing in writing. A response must be submitted on a form provided by the agency. ( 2 ) What happens if a licensee does not respond to the adminis- trative violation notice within twenty days? ( a ) If a licensee does not respond to the administrative viola- tion notice within twenty days, the recommended suspension penalty will go into effect . (b) If the penalty does not include a suspension, the licensee must pay a twenty-five percent late fee in addition to the recommended penalty. The recommended penalty plus the late fee must be received within thirty days of the violation notice issue date . ( 3 ) What are the procedures when a licensee requests a settlement conference? 37 ] OTS-5501 . 4 58 ( a ) If the licensee requests a settlement conference, the hearing examiner or designee will contact the licensee to discuss the viola- tion. (b) Both the licensee and the hearing examiner or designee will discuss the circumstances surrounding the charge, the recommended pen- alty, and any aggravating or mitigating factors . ( c) If a compromise is reached, the hearing examiner or designee will prepare a compromise settlement agreement . The hearing examiner or designee will forward the compromise settlement agreement, author- ized by both parties, to the board, or designee, for approval . ( i ) If the board, or designee, approves the compromise, a copy of the signed settlement agreement will be sent to the licensee and will become part of the licensing history. ( ii ) If the board, or designee, does not approve the compromise, the licensee will be notified of the decision. The licensee will be given the option to renegotiate with the hearings examiner or desig- nee, of accepting the originally recommended penalty, or of requesting an administrative hearing on the charges . (d) If the licensee and the hearing examiner or designee cannot reach agreement on a settlement proposal, the licensee may accept the originally recommended penalty, or the hearing examiner or designee will forward a request for an administrative hearing to the board ' s hearings coordinator. NEW SECTION WAC 314-55-515 What are the penalties if a marijuana license holder violates a marijuana law or rule? ( 1 ) The purpose of WAC 314-55-515 through 314-55-540 is to outline what penalty a marijuana licensee can expect if a licensee or employee violates a liquor con- trol board law or rule. (WAC rules listed in the categories provide reference areas, and may not be all inclusive. ) ( 2 ) Penalties for violations by marijuana licensees or employees are broken down into four categories : ( a ) Group One—Public safety violations, WAC 314-55-520 . (b) Group Two—Regulatory violations, WAC 314-55-525 . ( c) Group Three—License violations, WAC 314-55-530 . (d) Group Four—Producer violations involving the manufacture, supply, and/or distribution of marijuana by nonretail licensees and prohibited practices between nonretail licensees and retail licensees, WAC 314-55-535 . ( 3 ) For the purposes of chapter 314-55 WAC, a three-year window for violations is measured from the date one violation occurred to the date a subsequent violation occurred. ( 4 ) The following schedules are meant to serve as guidelines . Based on mitigating or aggravating circumstances, the liquor control board may impose a different penalty than the standard penalties out- lined in these schedules . Based on mitigating circumstances, the board may offer a monetary option in lieu of suspension, or alternate penal- ty, during a settlement conference as outlined in WAC 314-55-510 ( 3 ) . [ 38 1 OTS-5501 . 4 59 (a)Mitigating (b)Aggravating circumstances circumstances Mitigating Aggravating circumstances circumstances that may that may result in increased result in fewer days of days of suspension, and/or suspension and/or a increased monetary option, lower monetary option and/or cancellation of may include marijuana license may demonstrated business include business operations policies and/or practices or behaviors that create an that reduce the risk of increased risk for a violation future violations. and/or intentional commission of a violation. Examples include: Examples include: •Having a signed •Failing to call 911 for local acknowledgment of the law enforcement or medical business'responsible assistance when requested by handling and sales a customer, a liquor control policies on file for each board officer, or when employee, people have sustained injuries. •Having an employee training plan that includes annual training on marijuana laws. NEW SECTION WAC 314-55-520 Group 1 violations against public safety. Group 1 violations are considered the most serious because they present a di— rect threat to public safety. Based on chapter 69 . 50 RCW, some viola— tions have only a monetary option. Some violations beyond the first violation do not have a monetary option upon issuance of a violation notice . The liquor control board may offer a monetary option in lieu of suspension days based on mitigating circumstances as outlined in WAC 314-55-515 ( 4 ) . 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Violations involving 10-day suspension or 30-day suspension Cancellation of license minors: $2,500 monetary option Sale or service to minor: 10-day suspension or 30-day suspension Cancellation of license Sale of marijuana and/or $2,500 monetary option paraphernalia to a person under twenty-one years of age WAC 314-55-079 Allowing a minor to $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine frequent a restricted area. RCW 69.50.357 Employee under legal $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine age. RCW 69.50.357 Licensee and/or employee $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine open and/or consuming marijuana on a retail licensed premises. RCW 69.50.357 39 1 OTS-5501 . 4 so 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Conduct violations: 10-day suspension or 30-day suspension Cancellation of license Criminal conduct: $2,500 monetary option Permitting or engaging in criminal conduct. Using unauthorized 10-day suspension or 30-day suspension Cancellation of license pesticides,soil $2,500 monetary option amendments,fertilizers, other crop production aids. WAC 314-55-020(8) WAC 314-55-083(4) WAC 314-55-087(1)(f) Adulterate usable 10-day suspension or 30-day suspension Cancellation of license marijuanawith organic or $2,500 monetary option nonorganic chemical or other compound WAC 314-55-105(8) Using unauthorized 10-day suspension or 30-day suspension Cancellation of license solvents or gases in $2,500 monetary option processing WAC 314-55-104 Refusal to allow an 10-day suspension or 30-day suspension Cancellation of license inspection and/or $2,500 monetary option obstructing a law enforcement officer from performing their official duties. WAC 314-55-050 Marijuana purchased Cancellation of license from an unauthorized source. Marijuana sold to an Cancellation of license unauthorized source. Sales in excess of Cancellation of license transaction limitations. WAC 314-55-095(3) NEW SECTION WAC 314-55-525 Group 2 regulatory violations. Group 2 violations are violations involving general regulation and administration of re- tail or nonretail licenses . 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Hours of service:Sales of 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license marijuana between 12:00 monetary option $2,500 monetary option a.m.and 8:00 a.m. Advertising:Violations 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license (statements/illustrations). monetary option $2,500 monetary option WAC 314-55-155(2) Advertising violations— $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine Sign exceeding 1600 square inches;within 1000 feet of prohibited areas;on or in public transit vehicles, shelters,or publicly owned or operated property. RCW 69.50.357 RCW 69.50.369 Packaging and/or 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license labeling violations monetary option $2,500 monetary option (processor/retailer). WAC 314-55-105 40 1 OTS-5501 . 4 61 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Licensee/employee failing 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license to display required monetary option $2,500 monetary option security badge. WAC 314-55-083(1) Failure to maintain 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license required security alarm monetary option $2,500 monetary option and surveillance systems. WAC314-55-083(2)and (3) Records:Improper 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license recordkeeping. monetary option $2,500 monetary option WAC 314-55-087 WAC314-55-089(3),(4), and(5) Failure to submit 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license monthly tax reports monetary option $2,500 monetary option and/or payments. WAC 314-55-089 WAC 314-55-092 Signs:Failure to post 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license required signs. monetary option $2,500 monetary option WAC 314-55-086 Failure to utilize and/or 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license maintain traceability monetary option $2,500 monetary option (processor or retail licensee). WAC 314-55-083(4) Violation of 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license transportation monetary option $2,500 monetary option requirements. WAC 314-55-085 Exceeding maximum 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license serving requirements for monetary option $2,500 monetary option marijuana-infused products. WAC 314-55-095(2) Failure for a processor to 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license meet marijuana waste monetary option $2,500 monetary option disposal requirements. WAC 314-55-097 Failure to maintain 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license standardized scale monetary option $2,500 monetary option requirements(processor/ retailer). WAC 314-55-099 Marijuana processor 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license extraction requirements. monetary option $2,500 monetary option WAC 314-55-104 Retail outlet selling $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine unauthorized products. RCW 69.50.357 Retailer displaying $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine $1,000 monetary fine products in a manner visible to the general public from a public right of way. RCW 69.50.357 41 ] OTS-5501 . 4 ss NEW SECTION WAC 314-55-530 Group 3 license violations. Group 3 violations are violations involving licensing requirements, license classification, and special restrictions . 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window True party of interest Cancellation of license violation. WAC 314-55-035 Failure to furnish Cancellation of license required documents. WAC 314-55-050 Misrepresentation of fact Cancellation of license WAC 314-55-050 Operating plan: 5-day suspension or$500 10-day suspension or 30-day suspension Cancellation of license Violations of a board- monetary option $1,500 monetary option approved operating plan. WAC 314-55-020 Failing to gain board 30-day suspension Cancellation of license approval for changes in existing ownership. WAC 314-55-120 Failure to maintain 30-day suspension Cancellation of license required insurance. WAC 314-55-080 NEW SECTION WAC 314-55-535 Group 4 marijuana producer violations. Group 4 vi- olations are violations involving the manufacture, supply, and/or dis- tribution of marijuana by marijuana producer licensees and prohibited practices between a marijuana producer licensee and a marijuana re- tailer licensee. 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Unauthorized sale to a $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license retail licensee. destruction of 25%of destruction of 50%of WAC314-55-075 harvestable plants harvestable plants Failure to utilize and/or $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license maintain traceability. destruction of 25%of destruction of 50%of WAC314-55-083(4) harvestable plants harvestable plants Packaging and/or $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license labeling violations destruction of 25%of destruction of 50%of (producer). harvestable plants harvestable plants WAC 314-55-105 Unauthorized product/ $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license unapproved storage or destruction of 25%of destruction of 50%of delivery. harvestable plants harvestable plants Failure for a producer to $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license meet marijuana waste destruction of 25%of destruction of 50%of disposal requirements. harvestable plants harvestable plants WAC 314-55-097 42 1 OTS-5501 . 4 63 2nd Violation in a 3rd Violation in a 4th Violation in a Violation Type tat Violation three-year window three-year window three-year window Records:Improper $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license recordkeeping. destruction of 25%of destruction of 50%of WAC314-55-087 harvestable plants harvestable plants WAC314-55-089(2)and (4) WAC 314-55-092 Violation of $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license transportation destruction of 25%of destruction of 50%of requirements. harvestable plants harvestable plants WAC 314-55-085 Failure to maintain $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license required security alarm destruction of 25%of destruction of 50%of and surveillance systems. harvestable plants harvestable plants WAC314-55-083(2)and (3) Failure to maintain $2,500 monetary fine $5,000 monetary fine and $15,000 monetary fine and Cancellation of license standardized scale destruction of 25%of destruction of 50%of requirements(producer). harvestable plants harvestable plants WAC 314-55-099 Violation. NEW SECTION WAC 314-55-540 Information about marijuana license suspensions. ( 1 ) On the date a marijuana license suspension goes into effect, a liquor control officer will post a suspension notice in a conspicuous place on or about the licensed premises . This notice will state that the license has been suspended by order of the liquor control board due to a violation of a board law or rule . ( 2 ) During the period of marijuana license suspension, the licen- see and employees : ( a ) Are required to maintain compliance with all applicable mari- juana laws and rules; (b) May not remove, alter, or cover the posted suspension notice, and may not permit another person to do so; ( c) May not place or permit the placement of any statement on the licensed premises indicating that the premises have been closed for any reason other than as stated in the suspension notice; (d) May not advertise by any means that the licensed premises is closed for any reason other than as stated in the liquor control board ' s suspension notice. ( 3 ) During the period of marijuana license suspension: ( a ) A marijuana retailer or marijuana processor licensee may not operate his/her business during the dates and times of suspension. (b) There is no sale, delivery, service, destruction, removal, or receipt of marijuana during a license suspension. ( c) A producer of marijuana may do whatever is necessary as a part of the producing process to keep current stock that is on hand at the time of the suspension from spoiling or becoming unsalable during a suspension, provided it does not include processing the product . The producer may not receive any agricultural products used in the produc- tion of marijuana during the period of suspension. [ 43 1 OTS-5501 . 4 64 ATTACHMENT 5.B 55 Washington State � ' Liquor Can#ral Board Frequently Asked Questions about the 1-502 Proposed Rules Topic: Initiative 502 Updated: October 31, 2013 Note: New questions and answers are indicated with an asterisk Licensing When can I get my license? BLS will begin accepting applications on November 18. The WSLCB will begin processing applications for all three license types (producer, processor and retailer) for 30 days on November 20, 2013. Due to the anticipated turnout and rush to obtain a license it is possible that the process may take longer than the projected 90 days. The best way to stay up to date on the implementation process and when the applications become available is to register for email notifications on the WSLCB website. Why are you only accepting applications for 30 days? Opening up the licensing window for 30 days affords anyone who is qualified to apply for a license the opportunity to do so. Whether you are a small grower or larger company you will be given the same opportunity to get a license. Closing the window after 30 days allows the Board the opportunity to assess the market and see what changes, if any, are needed regarding the number of licenses. The Board may also reopen the window at its discretion. *When can I get an application? Application documents will be available, both online and in hard copy, sometime after the Board accepts the proposed rules, which is scheduled for October 16. *What do I have to do to start my application? To start the application process, and qualify within the 30 day licensing window, you will need to have a location and file your application with Business Licensing Services. How many producer and processor licenses will be issued? Presently the WSLCB does not intend to limit the amount of producer or processor licenses it will issue. The -CB will open a 30 day window in November where anyone can apply, and qualified applicants will receive licenses. *Can I have more than one license? Any entity and/or principles within an entity are limited to no more than three marijuana licenses. Retail marijuana license holders are limited to no more than three retail licenses with no more than 33% of the allowed licenses in any county or city. *Why did you limit the number of licenses per licensee? Limiting the number of licenses any one entity can hold reduces the possibility that any one entity can singlehandedly control the market. * How many retail licenses will be issued? 334 retail licenses will be issued. The number of retail locations was determined using a formula that distributes the number of locations proportionate to the most populous cities within each county. ss Locations not assigned to a specific city are at large. The specific locations will be selected by lottery in the event the number of applications exceeds the allotted amount for the cities and county. How will the lottery work? WSLCB staff are developing the guidelines for the retail license lottery. As more information becomes available we will notify stakeholders via the 1-502 Listserv. If the local authority objects to my proposed location after filing my application can I move my location without refiling? Applicants will be able to change the location of a potential license if the local authority objects, as long as the application is still in the processing stage, without filing a new application. Will a criminal record impact my ability to get a license? The WSLCB will employ a disqualifying criminal history point system similar to liquor. An exception would be allowed for two misdemeanor convictions of possession within three years. A felony conviction will prohibit you from obtaining a marijuana license if the conviction was in the last 10 years. How do I prove three months residency? There are many ways to prove residency. Some examples include: • Get a Washington State driver's license or ID card, which has an issue date on it • Present three months worth of utility bills, pay stubs, etc. • Register to vote You can find out more about state residency requirements at Access Washington. How do I show I'm current on my taxes? Prospective licensees will be required to sign an attestation that they are current on their taxes. Failure to do so or misrepresentation of the status of your taxes is grounds to deny the application. Can I get my$250 application fee back? Marijuana application fees are non-refundable. Is it true that the WSLCB is just going to license current medical marijuana outlets to retail marijuana? No. Retail licenses will be issued to qualified applicants who meet the licensing criteria. A medical marijuana outlet that wants to convert to a recreational outlet will have to go through the same application process as any other potential applicant. If they were to obtain a retail license they would only be allowed to sell marijuana purchased from the recreational system, they would not be allowed to comingle medical and recreational marijuana. Can local jurisdictions prevent me from opening a location? The LCB has no authority to dictate zoning requirements to local governments. Municipalities could conceivably zone marijuana/related businesses out of their geographical area, check with your local authority to understand their requirements. Since there are a limited number of retail licenses available can I apply for a retail license and a processor and/or producer license at the same time to ensure that I'm not left out and then withdraw the processor and/or producer license application in the event that I get the retail license? 67 No. Applicants must decide ahead of time which license type they are pursuing. If an applicant applies for a retail license in addition to one of the other two license types all of the applications will be rejected. Can I be a processor and a producer? Yes. Licensees may hold a both a producer and processor license together. Is there a producer/processor license? No. Applicants must apply for, and obtain, both licenses separately and must pay the application and renewal fees on both licenses. Do I have to pay the 25%tax on sales between producer and processor if I hold both licenses? No. If you hold a producer/processor license you avoid the 25% tax that would be applied to a producer to processor sale. Do I have to provide proof from my landlord that they are aware of how their property is being used? No. The provision requiring an applicant to provide a signed affidavit showing their landlord is aware of the marijuana related business using their property has been removed. There is a bus stop in front of my location; will that disqualify me from getting a license? The rules define "public transit center" as a facility located outside of the public right-of-way that is owned and managed by a transit agency or city, county, state, or federal government for the express purpose of staging people and vehicles where several bus or other transit routes converge. * Does a walking trail qualify as a park? No. The Board has specifically addressed that a walking trail, such as a converted former rail line, does not qualify as a park. Can I have multiple locations? Yes. However each location must be licensed separately and the licensee must meet the previously mentioned requirements on license types. * How will the WSLCB measure distance from a restricted area to a potential marijuana location? Distance will be measured ^'^^^the McSt d F^^t ,t^ ^ estab!shed pub!^ ^" ^ ^tFeet^ greaadsef� an elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library or arcade where admission is not restricted to those age 21 and older. Important Note Regarding the 1,000 foot Measurement: The LCB will file an emergency rule on October 16, 2013, that will revise the current language regarding the 1,000' buffer. The language in the emergency rule will state: "The distance shall be measured as the shortest straight line distance from the property line of the licensed premises to the property line of an elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library or arcade where admission is not restricted to those age 21 and older." *Why did the Board change the exclusion zone measuring method from"most common legal pathway"to"straight line?" The Board, after receiving guidance from the federal government, changed the measuring method to ensure that WLSCB rules match federal enforcement guidelines. ss If I'm providing financial backing do I have to be a resident? Yes. Financiers will be required have three months Washington state residency and to pass the same criminal background checks as a licensee. Testing How can I get my laboratory certified to test marijuana? The LCB will contract (via the request for proposals process) with a firm who will be responsible for accrediting labs. How will I get my products tested? The LCB will furnish a list, via our website, of accredited labs for producers to contract with for testing services. Traceability/Product What is the traceability system? A robust and comprehensive traceability software system will that will trace product from start to sale. Licensees will have to use tracking software that is compatible with LCB's traceability system and allows the LCB to monitor and track any plant at any time. When do my plants need to be entered into the traceability system? Prior to reaching eight inches in height or width each plant must be tagged and tracked individually How do I obtain startup inventory? Within fifteen days of starting production operations a producer must have all non-flowering marijuana plants physically on the licensed premises and recorded into the traceability system. No flowering marijuana plants may be brought into the facility during this fifteen day timeframe. After the 15 days pass, a producer may only start plants from seed or create clones from a marijuana plant located physically on their licensed premises, or purchase marijuana seeds, clones, or plants from another licensed producer. Growing Where can I grow? • Indoors/Greenhouse Fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. • Outdoor Outdoor production may take place in non-rigid greenhouses, other structures, or an expanse of open or cleared ground fully enclosed by a physical barrier. To obscure public view of the premises, outdoor production must be enclosed by a sight obscure wall or fence at least eight feet high. Outdoor producers must meet security requirements described in WAC 314-55-083. Can a current farm just convert its crop to marijuana? 69 Converting a crop to marijuana would require a producer license and the farm would have to meet all of the guidelines set forth in the rules pertaining to outdoor growing. Can I grow in my personal residence? No. The rules state that"the Board will not approve a license for any location where law enforcement access, without notice or cause, is limited. This includes personal residences." Private residences are afforded a degree of privacy under the 41" amendment of the U.S. Constitution that is incompatible with the regulatory requirements of 1-502. * How much marijuana can I keep on my licensed premise? — Producer: Outdoor/Greenhouse—One and '/4 of a year's harvest, Indoor—six months harvest — Processor: six months useable marijuana and total production — Retailer: four months of average inventory *As a producer how long do I have to hold my product before transporting it to a processor? There is a mandatory 24 hour quarantine period. Previously this period was 72 hours. How can I get my marijuana certified as organic? Marijuana may not be labeled as organic unless permitted by the United States Department of Agriculture in accordance with the Organic Foods Production Act. Processing Why can't I advertize marijuana's medical benefits? The WSLCB is regulating the recreational marijuana market and does not evaluate the medical claims of a recreational product. Prospective licensees who want to produce/market marijuana for medical purposes should research Washington's medical marijuana laws. How will you prevent children from accidentally ingesting marijuana products? Marijuana infused products must be packaged in child resistant packaging in accordance with Title 16 CFR 1700 of the Poison Prevention Packaging Act. *Can I sell marijuana blends? Yes, provided the marijuana lots that are being blended have been tested and that the labeling requirements for each lot used in the blend are met. What happened to the"Produced in Washington" icon? During the public comment period the WSLCB heard a variety of comments on the icon and ultimately decided to remove it from the rules. The intent of the icon was to provide parents, teachers, etc with a visual aid that helped them readily identify a product as marijuana. Many of the comments were positive and appreciated the WSLCB's work on this issue, while others were concerned that the icon may be seen as promotional. The Board does reserve the ability to require an icon be included on packaging in the future for public safety purposes if they deem it necessary. * If my marijuana fails quality testing can I turn it into an extract? Yes. With the Board's approval, marijuana that fails testing can be converted into an extract and sold provided that the resulting extract passes quality/safety testing. 70 Why does the Board want to ban concentrates? The Board's analysis believes that the definition of usable marijuana or infused product in 1-502 does not cover concentrates. While the Board was willing to allow concentrates they are not inclined to break the law to do so. Does hash qualify as usable marijuana? No. Under the definitions of 1-502 hash does not qualify as usable marijuana. Can I infuse concentrates with an inert oil, or similar substance, and sell it? Yes. This would qualify as a marijuana infused product. What is the minimum level of added marijuana for a product to be considered a marijuana infused product? The Board has not set minimum thresholds for what constitutes an "infused" product. *What is the serving size for infused extracts for inhalation? What is the transaction limit? The serving size for infused extracts for inhalation is a unit, which may not exceed one gram. Customers may purchase up to seven grams of marijuana infused extract for inhalation. Retail *Why can't I sell over the internet? Or have a delivery service? The initiative states that all retail sales must take place in a licensed retail establishment. Neither internet nor delivery sales qualify as retail establishments. Can a medical marijuana outlet and a retail outlet share the same space? No. The two operations would have to be separate. Retail outlets are only allowed to sell marijuana that comes from a licensed processor and licensed processors are not allowed to sell to unlicensed entities, such as a medical marijuana outlet. Are there any restrictions on retail hours of operation? Retail marijuana operations may take place between the hours of 8:OOAM and 12:OOAM. Why can't I hold the marijuana before purchase? 1-502 is very clear that there can be no open containers of marijuana, or consumption of marijuana at licensed locations. The WSLCB cannot write rules that contradict the law. Why can't I smell the marijuana before purchase? Retail licensees are allowed to provide a sample jar with a plastic or metal mesh screen to allow customers the ability to smell the product before purchasing. Opened marijuana products are not allowed inside a licensed retail outlet. *Can I producelsell THC infused alcohol (i.e. THC infused vodka)? No. The initiative is clear that retail outlets may only sell marijuana, marijuana infused products and marijuana paraphernalia. To sell alcohol in Washington you would need a liquor license which would violate the above provisions. Miscellaneous 71 Will the WSLCB be setting prices? No. The WSLCB will not set prices but licensees are not allowed to sell marijuana products below their acquisition cost. *As a licensee can I test my product for quality? Licensees are allowed to test for quality under the specific requirements set forth in WAC 314-55-083(6). Those requirements limit the amount of product that can be tested, how often testing can take place, and the reporting requirements by license and product type. Can I provide samples? Producers are allowed to provide samples to a processor and processors are allowed to provide samples to a retailer. Retailers are not allowed to supply samples to the public. 72 73 ECONOMIC and COMMUNITY DEVELOPMENT Ben Wolters, Director PLANNING DIVISION Fred N Satterstrom, AICP, Planning Director KEN T Charlene Anderson, AICP, Planning Manager WASH IN Grow Phone: 253-856-5454 Fax: 253-856-6454 Address: 220 Fourth Avenue S Kent, WA 98032-5895 May 7, 2014 To: Jack Ottini, Chair and Land Use and Planning Board Members From: Gloria Gould-Wessen, AICP, GIS Coordinator/Long Range Planner Subject: Downtown Design Guidelines Update (ZCA 2014-1) (KIVA-RPP6-2130117) Workshop — May 12, 2014 INTRODUCTION: The 2003 Downtown Design Review Guidelines (DDRG) help to implement the Downtown Subarea Action Plan's (DSAP) vision for downtown as a vibrant, livable, urban center that is pedestrian-friendly and enjoyed by the entire community. The recently updated DSAP expanded the study area boundary of downtown west of SR-167 and north of James along Central Avenue north. To support the new DSAP, the design guidelines and Kent City Code need to be updated. The workshop will focus on proposed revisions to the Pedestrian Plan Overlay Map, Kent City Code 15.09.046, and additional revisions to the DDRG. BACKGROUND: The Downtown Design Guidelines have been presented to the LU&PB at three previous workshops, two of which were project updates. On April 28, 2014, the LU&PB considered and made comments on proposed text revisions to the design guidelines. This meeting will consider revisions to the Pedestrian Plan Overlay Map which includes areas west of SR-167 and north of James along Central Avenue north; revisions to Kent City Code 15.09.046 Downtown Design Review; and additional text revisions to the Downtown Design Guidelines with the new revisions highlighted in yellow. Staff will present the proposed revisions at the May 121h workshop. If there are any questions prior to the workshop, please contact Gloria Gould-Wessen at 253.856.5441. 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O f6 -6 w -r- V -O a;l N O U + m 4)o y 0 O 116 N 7 m > o - 3 a a a R � 'p o `m C D a m jp U U ¢ Y CD J L..........� -..t a III IliLF I Ii � LL m „ ha I� �� ICY�Yi 0 E Mot Ras�l n Nld 8 -TLu IlAMa1NROS r mw;lnw I f .I �., IIII'. zII'III�II_IIIJ_' I L DE U 1ld—HL1iihF-nuAm � ? .„p/ANY V .. r] z hV 5 � ICI �/Ilyd IIII .. } I'.' I tlN©9d WOH -,i -m U O .' fl IIIIL O � ��Ilil ll�J 111 1 Ttl BB - 'I a ATTACHMENT C 119 15.09.046 Downtown design review. A. Purpose and scope. 1. Downtown design review is an administrative process, the purpose of which is to implement and give effect to the downtown pla4subarea action plan, its policies or parts thereof- thr�The f downtown design guidelines, asset forth in subsection (D) of this section apply to all-fsF development located within the downtown area, to the-uvesut-S4etf�y-eke se t#—TF t tt sts identified in the downtown strategi�C-subarea action plan, and as+s shown on the map following this section. It is the intent of the city that this process will serve to aid applicants in understanding the principal expectations of the city concerning development in the downtown planning area and encourage a diversity of imaginative solutions to development through the review and application of the downtown design guidelines. These guidelines have been formulated to ensure that the design, siting, and construction of development will provide a quality pedestrian-oriented urban environment in a manner consistent with established land use policies, the comprehensive plan, and the zoning code of the city. 2. The adoption of the downtown design guidelines is an element of the city's regulation of land use, which is statutorily authorized. The downtown design review process adopted herein is established as an administrative function delegated to the city's planning services office pursuant to RCW Title 35A. Therefore, in implementing the downtown design review process, the planning manager may adopt such rules and procedures as are necessary to provide for review of proposed projects. 3. All development within the downtown area shall be subject to the provisions of this section. 4. The downtown design review process is distinct from the multifamily design review process set forth in KCC 15.09.045. Applications for multifamily development within the DC, DCE, CC-MU and 9LAA IVIRT-16 zoning districts shall be subject to the provisions 120 of KCC 15.09.045 in addition to the provisions of this section, except as provided in KCC 15.09.045(E). However, the provisions of this section shall prevail in cases where a conflict may arise between the requirements of the two (2) sections. B. Application and review process. The downtown design review process is administrative and is conducted as part of the permit review process. The applicant must make application for the design review process on forms provided by planning services. Upon receipt of an application for design review, the planning manager shall circulate the application to the appropriate city departments and offices for review. Prior to issuing a final decision, the planning manager shall review any comments submitted for consideration. In the administration of this process, planning services may develop supplementary handbooks forthe public, which shall pictorially illustrate and provide additional guidance on the interpretation of the criteria set forth in the downtown design guidelines. C. Design review committee. There is hereby established the downtown design review committee, which shall make all final decisions on applications with a construction valuation over$100,000 for downtown design review. The committee shall be comprised of three (3) members, who shall be appointed by the planning manager under the authority delegated to him under RCW Title 35A. The members shall serve at the pleasure of the planning manager. The planning manager shall, by administrative rule, establish the rules of procedure for the committee, which shall be made available to the public upon publication. D. Downtown design guidelines—Adoption. The downtown design review committee shall use the downtown design guidelines in the evaluation and/or conditioning of applications under the downtown design review process. The downtown design guidelines, entitled "Kent Downtown Design Guidelines," fFl{tta�-y-pf2p8fC"' aFlR{R�-�vEtFWSe�v-fR£9��3 Ft 6tNFEe-c�Rd a+ s-t#erets-are hereby adopted by this reference as authorized pursuant to RCW 35A.12.140 and shall be placed on file in the offices of the city clerk and planning services. E. Appeals. The decision of the downtown administrative design review committee to approve, condition, or reject any application under the downtown design review process is final unless an appeal is made to the hearing examiner within fourteen (14) calendar days of either the issuance of the committee's conditional approval or rejection of any application under this section. Appeals to the hearing examiner shall be conducted as set forth in Chapter 2.32 KCC. The decision of the hearing 121 examiner shall be final, unless an appeal is made to the King County superior court, within twenty-one (21) calendar days of the date of the decision. (Ord. No. 3050, § 10, 7-7-92, Ord. No. 3409, §60, 7-7-98, Ord. No. 3424, §38, 11-17-98, Ord. No. 3457, § 1, 5-4-99, Ord. No. 3525, § 1, 9-19-00, Ord. No. 3742, §6, 4-19-05, Ord. No. 3988, §4, 1-4-11, Ord. No. 4093, §5, 11-19-13) A vur ICY f «.n Nod n FremePy'I ilAI It rcl i t Centval Co or Natili Core WCSt e °+� j f 6a5(From FtUrtl ry:. 1 P t L t 11f HI L ��`�'� [J � �Lr '�fNstwlc Core I ✓ 1 M RENT DOWNTOWN PLANNING AREA nllmmr� 1 ; T MH i z Me, I�� WJ � "CJ IL4" �B fEN n � , rT� �HE 0�LiF"1'111 lip N w t �;i'0\