Washington State’s New Cannabis Laws

Washington State’s New Cannabis Laws

I previously wrote howchange would be coming to Washington States cannabis law were Governor Inslee to sign SB 5131 into law. Governor Inslee has signed SB 5131 and is now set to go into effect on June 23, 2017.

If you hold a license to produce, process, or sell marijuana in Washington, you need to prepare for the legal changes stemming from SB5131. This post summarizes some key of the key changes you should expect from SB5131.

Requires disclosure of IP licensing deals.We previouslywrotehow thepassage of SB 5131 wouldimpact cannabisbranding and intellectual property transactions and rights because it requires licensed cannabis businessesto disclose their IP licensing deals to the Washington State Liquor and Cannabis Board (the LCB).

Restricts advertising by licensees.SB 5131 focuses heavily on advertising. Since passage ofInitiative 502, cannabis licensees have been banned from advertising marijuana or marijuana products within 1,000 feet of a school or other sensitive area where children regularly populate. This largely prevented advertising cannabis products by radio, TV, or in publications likely to be heard or distributed in or near schools. This is why you mostly see marijuana advertisements only in publications geared towards adults. SB 5131 extends this cannabis advertising prohibition to include not only cannabis products but cannabisbusinesses. In other words, cannabis licensees now need to becautious about advertising their cannabis business in any medium where their ad could end up within 1,000 feet of a sensitive area.

SB 5131 also makes the following changes to advertising:

  • No advertising on cars. The use of transit advertisements, which includes any cannabis advertisement on public or private vehicles, is prohibited.
  • No targeting tourists. Advertisements and marketing practices may not target persons residing outside of the state of Washington.
  • 21 plus. All advertising must contain text stating that marijuana products can only be purchased by persons 21 and older.
  • No marketing to kids.Cannabis licensees cannot market to kids and cannot use objects such as toys or inflatables, movie or cartoon characters, or any other depiction or image likely to be appealing to youth.
  • No mascots.Cannabis licensees cannot use commercial mascots outside of or near a licensed marijuana business. Commercial mascots include humans, animals, or mechanical devices used to draw attention to a business, and specifically includes inflatable tube displays, persons in costumes, and sign spinners.
  • Limited outdoor advertisements.Outdoor advertisements are limited to only text that identifies the retail outlet by the licensees business or trade name, states the location of the business, and identifies the type or nature of the business.
  • Limited indoor advertisements.Indoor advertisements are only permitted in facilities where minors are not permitted, such as bars. Under SB 5131,cannabis advertising is explicitly prohibited in arenas, stadiums, shopping malls, state fairs, farmers markets, and arcades.
  • No billboard advertising, except by retailers. Retailers will be the only cannabis licensees permitted to use billboards, but like all outdoor advertising, they toomay only include text identifying the name, location, and the nature of their business on these billboards.

Allowsownership of five retail stores. SB 5131 will allow individuals topossess an ownership interest in five retail stores. up from three under current law. Existing retailers may (and no doubt will) be ableto purchase other licensed retailers and rebrand them with their own name and open new storefronts under their already established name.

Changes for producers & processors. Though medical marijuana patients in Washington are already permitted to grow cannabis in their homes for personal use and may form a collective to grow medical cannabis together there has been no legal means for medical patients to buy cannabis plants becausecannabis producers were prohibited from selling cannabis to individuals who did not hold a license to produce, process, or sell marijuana ...

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