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Legal Corner: Bills to Harmonize the State

Washington
legislators recently dropped a slew of bills to regulate medical cannabis
and to harmonize it with Initiative 502, the state’s recreational cannabis law.
For weeks now, no one has

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ashington
legislators recently dropped a slew of bills to regulate medical cannabis
and to harmonize it with Initiative 502, the state’s recreational cannabis law.
For weeks now, no one has been able to predict if any of these bills will
emerge as the victor for overhauling medical cannabis in The Evergreen State.
That changed though in mid-February when Senate Bill 5052, the Cannabis Patient
Protection Act, passed in the Senate by a 36-11 margin, giving it a good
chance of making it through the House and eventually onto the governor’s
desk for signature into law.

The
58-page bill contains many, many regulations for the “new” medical and recreational
cannabis hybrid industry, including the below highlights:

  • Creating the
    Washington State Liquor and Cannabis Board, which pretty much qualifies as
    the existing Liquor Board but with a new name.
  • Qualifying
    patient debilitating conditions will remain nominally the same as currently set
    forth in RCW 69.51A, but a limiting definition will be added to mandate
    that the condition must be “severe enough to significantly interfere with
    the patient’s activities of daily living and ability to function, which can be
    objectively assessed and evaluated. . . .”
  • In-person
    visits with health care providers will be required for patients to secure
    medical cannabis authorization cards, and health care professionals will need
    to have a documented relationship with the patient as a principal care provider
    or specialist.
  • Existing
    I-502 retailers can apply to hold “medical cannabis endorsements” that will
    allow them to sell cannabis for medical use to qualifying patients and
    designated providers.
  • The
    Board must develop “a
    competitive,
    merit-based application
    process that includes, at minimum, the
    opportunity for an applicant to demonstrate experience and qualifications in
    the cannabis industry. Operating a collective garden before [application] and
    having a business license and a history of paying sales tax to the department
    of revenue may be factors used to establish the experience and qualifications
    of the applicant.
  • The
    Board’s existing 1,000-foot perimeter around schools, playgrounds, recreation
    centers, child care centers, parks, public transit centers and arcades would
    still apply, and will apply with equal force to licensed businesses with
    medical cannabis endorsements.
  • Health
    care professionals will be required to enter the names of their qualifying
    patients into a centralized database that health care professionals, qualifying
    patients, retailers, and law enforcement would be able to access in limited
    ways, with unauthorized access to the database being a Class C felony.
  • Qualifying
    patients could grow up to six plants at home (unless a health care professional
    specifically authorizes more up to a maximum of 15), and qualifying patient
    cooperative grows would be permitted for up to four patients (with a maximum of
    60 plants) if they are at least 15 miles from a retail outlet and if everyone
    participating is in the foregoing qualifying patient registry. Only one
    cooperative garden would be allowed per tax parcel.
  • Collective
    gardens as they are currently structured under RCW 69.51A would be phased out
    by July 1, 2016.

Hardly
a week goes by where our law firm does not get asked when the Liquor
Control Board will reopen the licensing window for Initiative 502. Should the
Cannabis Patient Protection Act become law, it looks like that window will
be reopening relatively soon but with very strict requirements.

The
bottom line? Anyone currently operating an unlicensed medical cannabis business
in Washington should begin to contemplate what their options will be in the
event SB-5052 passes this legislative session. 

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