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In Part I of our “Understanding Washington Initiative 502” (“I-502”) series, we described how I-502’s licensing regime is scheduled to go into effect late next year. There is no question that I-502 legalizes possession of certain amounts of marijuana under Washington law, and the state licensing structure aimed at regulating the production, distribution, and retail sale of marijuana reflects this fact. But as a Schedule I drug subject to the federal Controlled Substances Act (“Act”), possession and sale of marijuana remains illegal under federal law. I-502 does not change this basic fact, regardless of whether the Washington State Liquor Control Board succeeds in establishing the rigorous regulatory regime envisioned by I-502. 

I-502 intends to establish a well-regulated market that will allow Washington state to tax a commodity that had been pushed into the underground economy. Achieving that goal depends on capital investments in the regulated marijuana market in Washington State. But will investors be willing to fund a marijuana start-up if federal law diverges significantly from state law – particularly when federal law includes criminal sanctions? That will depend on the federal government’s response to states like Washington and Colorado that have chosen to de-criminalize marijuana.Continue Reading Part II: Understanding the Conflict Between Federal Law and Washington Initiative 502

by Susan Johnson and Claire Mitchell

As we reported last week, Washington Initiative 502 (I-502), a marijuana law reform measure which appeared on the November 2012 general ballot, won the popular vote passing by a margin of approximately 55% to 45%. Now that the initiative has passed, as of December 6, 2012, it will be legal for adults aged 21 years and over to possess up to “one ounce of useable marijuana,” 16 ounces of marijuana-infused product in solid form, 72 ounces of marijuana-infused product in liquid form, or “any combination” of all three.

In addition to legalizing the possession of a limited quantity of marijuana for recreational use by persons 21 and up, the initiative also establishes a licensing system for marijuana producers, processors, and retailers to be administered by the Washington State Liquor Control Board. Over the next year, the Board will be charged with promulgating rules and regulations to fully implement this new licensing structure.

Part III of I-502 establishes the licensing regime over marijuana producers, processors, and retailers and explains the procedures for obtaining a license. All license applicants will first be required to pay an initial application fee of $250. Thereafter, each licensed marijuana producer, processor, and retailer will be required to pay an annual renewal fee of $1,000.Continue Reading Part I: Understanding the License Application Process Under Washington Initiative 502

Co-authored by Susan Johnson and Stephanie Meier

Earlier this week, Washington Initiative 502 (I-502), a marijuana law reform measure which appeared on the November 2012 general ballot, won the popular vote passing by a margin of approximately 55% to 45%. As a result, beginning on December 6, 2012, the initiative that is now law will make it legal for persons aged twenty-one years and over to possess a limited amount of marijuana for recreational use.

Washington State was joined by Colorado in making history this week. On Tuesday night, Colorado voters passed Amendment 64, a measure seeking the legalization of marijuana for recreational use by adults, by 55% to 45%, a margin identical to Washington State’s. A similar measure in Oregon was not as successful. Measure 80, Oregon’s own measure to legalize possession and recreational use of marijuana, was rejected by voters.Continue Reading Washington State Liquor Control Board to Regulate Marijuana Following Passage of Initiative 502

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The Stoel Rives Alcohol Beverage Blog provides wineries, breweries, distilleries, cideries, distributors and importers with articles and information across a broad spectrum of state and federal alcohol beverage law. The authors work on alcohol beverage related projects from our bases in California, Oregon and Washington, throughout the Western United States and beyond.