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Attachment A <br />shington State Liquor Control Board <br />Summary <br />Initiative 502 would license and regulate marijuana production, distribution, and possession for persons <br />over 21; remove state-law criminal and civil penalties for activities that it authorizes. Tax marijuana sales <br />and earmark marijuana-related revenues. The new tightly regulated and licensed system would be similar <br />to those used to control alcohol. <br />Licenses and Fees <br />Creates an application process that mirrors the liquor license application process <br />Creates three new marijuana licenses: producer, processor, and retailer. The fee for each license is a <br />$250 application fee and $1000 annual renewal fee. <br /> Marijuana Producer: produces marijuana for sale at wholesale to marijuana processors and <br />allows for production, possession, delivery, distribution. <br /> Marijuana Processor: processes, packages, and labels marijuana/marijuana infused product for <br />sale at wholesale to marijuana retailers and allows for processing, packaging, possession, <br />delivery, distribution. <br /> Marijuana Retailer: allows for sale of useable marijuana/marijuana infused products at retail <br />outlets regulated by the WSLCB. <br />The initiative allows the WSLCB to charge fees for anything done to implement/enforce the act. For <br />example, fees could be charged on sampling, testing, and labeling that would be the cost of doing <br />business as a licensee <br />Marijuana Taxes <br />The initiative creates three new excise taxes to be collected by the WSLCB: <br /> Excise tax equal to 25% of the selling price on each sale between licensed producer and <br />licensed processor. Paid by the producer. <br /> Excise tax equal to 25% of the selling price on each sale of usable marijuana/marijuana infused <br />product from a licensed processor to a licensed retailer. Paid by the processor. <br /> Excise tax equal to 25% of the selling price on each licensed retail sale of usable <br />This tax is in addition to any/all <br />marijuana/marijuana infused product. Paid by the retailer. <br />applicable general, state, and local sales and use taxes, and is part of the total retail <br />price. <br /> All funds from marijuana excise taxes are deposited in the Dedicated Marijuana Fund. <br />Disbursements from the Dedicated Marijuana Fund shall be on authorization of the WSLCB or a <br />duly authorized representative. <br />Initiative 502 allows for the WSLCB to enact rules that establish procedures and criteria for: <br /> The equipment, management and inspection of production, processing, and retail outlets. <br /> Books and records maintained by licensed premises. <br /> Methods of producing, processing and packaging of marijuana/marijuana infused products, to <br />include conditions of sanitation. <br /> <br />