RCW 69.50.505
Seizure and forfeiture.
(Effective until January 1, 2026.)
(1) The following are subject to seizure and forfeiture and no property right exists in them:
(a) All controlled substances which have been manufactured, distributed, dispensed, acquired, or possessed in violation of this chapter or chapter
69.41
or
69.52
RCW, and all hazardous chemicals, as defined in RCW 64.44.010, used or intended to be used in the manufacture of controlled substances;
(b) All raw materials, products, and equipment of any kind which are used, or intended for use, in manufacturing, compounding, processing, delivering, importing, or exporting any controlled substance in violation of this chapter or chapter
69.41
or
69.52
RCW;
(c) All property which is used, or intended for use, as a container for property described in (a) or (b) of this subsection;
(d) All conveyances, including aircraft, vehicles, or vessels, which are used, or intended for use, in any manner to facilitate the sale, delivery, or receipt of property described in (a) or (b) of this subsection, except that:
(i) No conveyance used by any person as a common carrier in the transaction of business as a common carrier is subject to forfeiture under this section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this chapter or chapter
69.41
or
69.52
RCW;
(ii) No conveyance is subject to forfeiture under this section by reason of any act or omission established by the owner thereof to have been committed or omitted without the owner's knowledge or consent;
(iii) No conveyance is subject to forfeiture under this section if used in the receipt of only an amount of cannabis for which possession constitutes a misdemeanor under RCW 69.50.4014
;
(iv) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act or omission; and
(v) When the owner of a conveyance has been arrested under this chapter or chapter
69.41
or
69.52
RCW the conveyance in which the person is arrested may not be subject to forfeiture unless it is seized or process is issued for its seizure within ten days of the owner's arrest;
(e) All books, records, and research products and materials, including formulas, microfilm, tapes, and data which are used, or intended for use, in violation of this chapter or chapter
69.41
or
69.52
RCW;
(f) All drug paraphernalia other than paraphernalia possessed, sold, or used solely to facilitate cannabis-related activities that are not violations of this chapter;
(g) All moneys, negotiable instruments, securities, or other tangible or intangible property of value furnished or intended to be furnished by any person in exchange for a controlled substance in violation of this chapter or chapter
69.41
or
69.52
RCW, all tangible or intangible personal property, proceeds, or assets acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter
69.41
or
69.52
RCW, and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this chapter or chapter
69.41
or
69.52
RCW. A forfeiture of money, negotiable instruments, securities, or other tangible or intangible property encumbered by a bona fide security interest is subject to the interest of the secured party if, at the time the security interest was created, the secured party neither had knowledge of nor consented to the act or omission. No personal property may be forfeited under this subsection (1)(g), to the extent of the interest of an owner, by reason of any act or omission which that owner establishes was committed or omitted without the owner's knowledge or consent; and
(h) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or which have been acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter
69.41
or
69.52
RCW, if such activity is not less than a class C felony and a substantial nexus exists between the commercial production or sale of the controlled substance and the real property. However:
(i) No property may be forfeited pursuant to this subsection (1)(h), to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent;
(ii) The bona fide gift of a controlled substance, legend drug, or imitation controlled substance shall not result in the forfeiture of real property;
(iii) The possession of cannabis shall not result in the forfeiture of real property unless the cannabis is possessed for commercial purposes that are unlawful under Washington state law, the amount possessed is five or more plants or one pound or more of cannabis, and a substantial nexus exists between the possession of cannabis and the real property. In such a case, the intent of the offender shall be determined by the preponderance of the evidence, including the offender's prior criminal history, the amount of cannabis possessed by the offender, the sophistication of the activity or equipment used by the offender, whether the offender was licensed to produce, process, or sell cannabis, or was an employee of a licensed producer, processor, or retailer, and other evidence which demonstrates the offender's intent to engage in unlawful commercial activity;
(iv) The unlawful sale of cannabis or a legend drug shall not result in the forfeiture of real property unless the sale was forty grams or more in the case of cannabis or one hundred dollars or more in the case of a legend drug, and a substantial nexus exists between the unlawful sale and the real property; and
(v) A forfeiture of real property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party, at the time the security interest was created, neither had knowledge of nor consented to the act or omission.
(2) Real or personal property subject to forfeiture under this chapter may be seized by any commission inspector or law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of real property shall include the filing of a lis pendens by the seizing agency. Real property seized under this section shall not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later: PROVIDED, That real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest. Seizure of personal property without process may be made if:
(a) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant;
(b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter;
(c) A commission inspector or law enforcement officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or
(d) The commission inspector or law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter.
(3) In the event of seizure pursuant to subsection (2) of this section, proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title. The notice of seizure in other cases may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the fifteen day period following the seizure.
(4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1)(d), (g), or (h) of this section within forty-five days of the service of notice from the seizing agency in the case of personal property and ninety days in the case of real property, the item seized shall be deemed forfeited. The community property interest in real property of a person whose spouse or domestic partner committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.
(5) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1)(b), (c), (d), (e), (f), (g), or (h) of this section within forty-five days of the service of notice from the seizing agency in the case of personal property and ninety days in the case of real property, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. The notice of claim may be served by any method authorized by law or court rule including, but not limited to, service by first-class mail. Service by mail shall be deemed complete upon mailing within the forty-five day period following service of the notice of seizure in the case of personal property and within the ninety-day period following service of the notice of seizure in the case of real property. The hearing shall be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020
(4), the hearing shall be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter
34.12
RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal of any matter involving personal property may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080
or
4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed shall be the district court when the aggregate value of personal property is within the jurisdictional limit set forth in RCW 3.66.020
. A hearing before the seizing agency and any appeal therefrom shall be under Title
34
RCW. In all cases, the burden of proof is upon the law enforcement agency to establish, by a preponderance of the evidence, that the property is subject to forfeiture.
The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (1)(b), (c), (d), (e), (f), (g), or (h) of this section.
(6) In any proceeding to forfeit property under this title, where the claimant substantially prevails, the claimant is entitled to reasonable attorneys' fees reasonably incurred by the claimant. In addition, in a court hearing between two or more claimants to the article or articles involved, the prevailing party is entitled to a judgment for costs and reasonable attorneys' fees.
(7) When property is forfeited under this chapter the commission or seizing law enforcement agency may:
(a) Retain it for official use or upon application by any law enforcement agency of this state release such property to such agency for the exclusive use of enforcing the provisions of this chapter;
(b) Sell that which is not required to be destroyed by law and which is not harmful to the public;
(c) Request the appropriate sheriff or director of public safety to take custody of the property and remove it for disposition in accordance with law; or
(d) Forward it to the drug enforcement administration for disposition.
(8)(a) When property is forfeited, the seizing agency shall keep a record indicating the identity of the prior owner, if known, a description of the property, the disposition of the property, the value of the property at the time of seizure, and the amount of proceeds realized from disposition of the property.
(b) Each seizing agency shall retain records of forfeited property for at least seven years.
(c) Each seizing agency shall file a report including a copy of the records of forfeited property with the state treasurer each calendar quarter.
(d) The quarterly report need not include a record of forfeited property that is still being held for use as evidence during the investigation or prosecution of a case or during the appeal from a conviction.
(9)(a) By January 31st of each year, each seizing agency shall remit to the state an amount equal to ten percent of the net proceeds of any property forfeited during the preceding calendar year for deposit into the *behavioral health loan repayment program account created in RCW 28B.115.135
through June 30, 2027, and into the state general fund thereafter.
(b) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages under subsection (15) of this section.
(c) The value of sold forfeited property is the sale price. The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal. The value of destroyed property and retained firearms or illegal property is zero.
(10) Forfeited property and net proceeds not required to be remitted to the state shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources.
(11) Controlled substances listed in Schedule I, II, III, IV, and V that are possessed, transferred, sold, or offered for sale in violation of this chapter are contraband and shall be seized and summarily forfeited to the state. Controlled substances listed in Schedule I, II, III, IV, and V, which are seized or come into the possession of the commission, the owners of which are unknown, are contraband and shall be summarily forfeited to the commission.
(12) Species of plants from which controlled substances in Schedules I and II may be derived which have been planted or cultivated in violation of this chapter, or of which the owners or cultivators are unknown, or which are wild growths, may be seized and summarily forfeited to the commission.
(13) The failure, upon demand by a commission inspector or law enforcement officer, of the person in occupancy or in control of land or premises upon which the species of plants are growing or being stored to produce an appropriate registration or proof that he or she is the holder thereof constitutes authority for the seizure and forfeiture of the plants.
(14) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. Orders for the forfeiture of real property shall be entered by the superior court, subject to court rules. Such an order shall be filed by the seizing agency in the county auditor's records in the county in which the real property is located.
(15)(a) A landlord may assert a claim against proceeds from the sale of assets seized and forfeited under subsection (7)(b) of this section, only if:
(i) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence; and
(ii) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter
59.18
RCW, to cover the damage directly caused by a law enforcement officer prior to asserting a claim under the provisions of this section;
(A) Only if the funds applied under (a)(ii) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;
(B) Only if the governmental entity denies or fails to respond to the landlord's claim within sixty days of the date of filing, may the landlord collect damages under this subsection by filing within thirty days of denial or the expiration of the sixty-day period, whichever occurs first, a claim with the seizing law enforcement agency. The seizing law enforcement agency must notify the landlord of the status of the claim by the end of the thirty-day period. Nothing in this section requires the claim to be paid by the end of the sixty-day or thirty-day period.
(b) For any claim filed under (a)(ii) of this subsection, the law enforcement agency shall pay the claim unless the agency provides substantial proof that the landlord either:
(i) Knew or consented to actions of the tenant in violation of this chapter or chapter
69.41
or
69.52
RCW; or
(ii) Failed to respond to a notification of the illegal activity, provided by a law enforcement agency under RCW 59.18.075, within seven days of receipt of notification of the illegal activity.
(16) The landlord's claim for damages under subsection (15) of this section may not include a claim for loss of business and is limited to:
(a) Damage to tangible property and clean-up costs;
(b) The lesser of the cost of repair or fair market value of the damage directly caused by a law enforcement officer;
(c) The proceeds from the sale of the specific tenant's property seized and forfeited under subsection (7)(b) of this section; and
(d) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (9)(b) of this section.
(17) Subsections (15) and (16) of this section do not limit any other rights a landlord may have against a tenant to collect for damages. However, if a law enforcement agency satisfies a landlord's claim under subsection (15) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency.
[
2022 c 162 s 1
;
2022 c 16 s 98
;
2013 c 3 s 25
(Initiative Measure No. 502, approved November 6, 2012). Prior:
2009 c 479 s 46
;
2009 c 364 s 1
;
2008 c 6 s 631
;
2003 c 53 s 348
;
2001 c 168 s 1
;
1993 c 487 s 1
;
1992 c 211 s 1
; prior: (1992 c 210 s 5 repealed by 1992 c 211 s 2);
1990 c 248 s 2
;
1990 c 213 s 12
;
1989 c 271 s 212
;
1988 c 282 s 2
;
1986 c 124 s 9
;
1984 c 258 s 333
;
1983 c 2 s 15
; prior:
1982 c 189 s 6
;
1982 c 171 s 1
; prior:
1981 c 67 s 32
;
1981 c 48 s 3
;
1977 ex.s. c 77 s 1
;
1971 ex.s. c 308 s 69.50.505
.]
NOTES:
Reviser's note:
*(1) The "behavioral health loan repayment program account" was changed to the "behavioral health loan repayment and scholarship program account" by
2024 c 369 s 6
.
(2) This section was amended by 2022 c 16 s 98 and by 2022 c 162 s 1, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Effective date
—
2022 c 162:
"This act takes effect July 1, 2022." [
2022 c 162 s 7
.]
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Part headings not law
—
Severability
—
2008 c 6:
See RCW 26.60.900
and
26.60.901
.
Intent
—
Effective date
—
2003 c 53:
See notes following RCW 2.48.180
.
Severability
—
2001 c 168:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2001 c 168 s 5
.]
Effective date
—
1990 c 213 ss 2 and 12:
See note following RCW 64.44.010
.
Findings
—
1989 c 271:
"The legislature finds that: Drug offenses and crimes resulting from illegal drug use are destructive to society; the nature of drug trafficking results in many property crimes and crimes of violence; state and local governmental agencies incur immense expenses in the investigation, prosecution, adjudication, incarceration, and treatment of drug-related offenders and the compensation of their victims; drug-related offenses are difficult to eradicate because of the profits derived from the criminal activities, which can be invested in legitimate assets and later used for further criminal activities; and the forfeiture of real assets where a substantial nexus exists between the commercial production or sale of the substances and the real property will provide a significant deterrent to crime by removing the profit incentive of drug trafficking, and will provide a revenue source that will partially defray the large costs incurred by government as a result of these crimes. The legislature recognizes that seizure of real property is a very powerful tool and should not be applied in cases in which a manifest injustice would occur as a result of forfeiture of an innocent spouse's community property interest." [
1989 c 271 s 211
.]
Severability
—
1989 c 271:
See note following RCW 9.94A.510
.
Severability
—
1988 c 282:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1988 c 282 s 3
.]
Court Improvement Act of 1984
—
Effective dates
—
Severability
—
Short title
—
1984 c 258:
See notes following RCW 3.30.010
.
Intent
—
1984 c 258:
See note following RCW 3.34.130
.
Severability
—
1983 c 2:
See note following RCW 18.71.030
.
Effective date
—
1982 c 189:
See note following RCW 34.12.020
.
Effective date
—
1982 c 171:
See RCW 69.52.901
.
Severability
—
1981 c 48:
See note following RCW 69.50.102
.
PDF
RCW 69.50.505
Seizure and forfeiture.
(Effective January 1, 2026.)
(1) The following are subject to seizure and forfeiture and no property right exists in them:
(a) All controlled substances which have been manufactured, distributed, dispensed, acquired, or possessed in violation of this chapter or chapter
69.41
or
69.52
RCW, and all hazardous chemicals, as defined in RCW 64.44.010, used or intended to be used in the manufacture of controlled substances;
(b) All raw materials, products, and equipment of any kind which are used, or intended for use, in manufacturing, compounding, processing, delivering, importing, or exporting any controlled substance in violation of this chapter or chapter
69.41
or
69.52
RCW;
(c) All property which is used, or intended for use, as a container for property described in (a) or (b) of this subsection;
(d) All conveyances, including aircraft, vehicles, or vessels, which are used, or intended for use, in any manner to facilitate the sale, delivery, or receipt of property described in (a) or (b) of this subsection, except that:
(i) No conveyance used by any person as a common carrier in the transaction of business as a common carrier is subject to forfeiture under this section unless it appears that the owner or other person in charge of the conveyance is a consenting party or privy to a violation of this chapter or chapter
69.41
or
69.52
RCW;
(ii) No conveyance is subject to forfeiture under this section by reason of any act or omission committed or omitted without the owner's knowledge or consent;
(iii) No conveyance is subject to forfeiture under this section if used in the receipt of only an amount of cannabis for which possession constitutes a misdemeanor under RCW 69.50.4014
;
(iv) A forfeiture of a conveyance encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had knowledge of nor consented to the act or omission; and
(v) When the owner of a conveyance has been arrested under this chapter or chapter
69.41
or
69.52
RCW the conveyance in which the person is arrested may not be subject to forfeiture unless it is seized or process is issued for its seizure within ten days of the owner's arrest;
(e) All books, records, and research products and materials, including formulas, microfilm, tapes, and data which are used, or intended for use, in violation of this chapter or chapter
69.41
or
69.52
RCW;
(f) All drug paraphernalia other than paraphernalia possessed, sold, or used solely to facilitate cannabis-related activities that are not violations of this chapter;
(g) All moneys, negotiable instruments, securities, or other tangible or intangible property of value furnished or intended to be furnished by any person in exchange for a controlled substance in violation of this chapter or chapter
69.41
or
69.52
RCW, all tangible or intangible personal property, proceeds, or assets acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter
69.41
or
69.52
RCW, and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this chapter or chapter
69.41
or
69.52
RCW. A forfeiture of money, negotiable instruments, securities, or other tangible or intangible property encumbered by a bona fide security interest is subject to the interest of the secured party if, at the time the security interest was created, the secured party neither had knowledge of nor consented to the act or omission. No personal property may be forfeited under this subsection (1)(g), to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent; and
(h) All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements which are being used with the knowledge of the owner for the manufacturing, compounding, processing, delivery, importing, or exporting of any controlled substance, or which have been acquired in whole or in part with proceeds traceable to an exchange or series of exchanges in violation of this chapter or chapter
69.41
or
69.52
RCW, if such activity is not less than a class C felony and a substantial nexus exists between the commercial production or sale of the controlled substance and the real property. However:
(i) No property may be forfeited pursuant to this subsection (1)(h), to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's knowledge or consent;
(ii) The bona fide gift of a controlled substance, legend drug, or imitation controlled substance shall not result in the forfeiture of real property;
(iii) The possession of cannabis shall not result in the forfeiture of real property unless the cannabis is possessed for commercial purposes that are unlawful under Washington state law, the amount possessed is five or more plants or one pound or more of cannabis, and a substantial nexus exists between the possession of cannabis and the real property. In such a case, the intent of the offender shall be determined by the preponderance of the evidence, including the offender's prior criminal history, the amount of cannabis possessed by the offender, the sophistication of the activity or equipment used by the offender, whether the offender was licensed to produce, process, or sell cannabis, or was an employee of a licensed producer, processor, or retailer, and other evidence which demonstrates the offender's intent to engage in unlawful commercial activity;
(iv) The unlawful sale of cannabis or a legend drug shall not result in the forfeiture of real property unless the sale was forty grams or more in the case of cannabis or one hundred dollars or more in the case of a legend drug, and a substantial nexus exists between the unlawful sale and the real property; and
(v) A forfeiture of real property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party, at the time the security interest was created, neither had knowledge of nor consented to the act or omission.
(2) Real or personal property subject to forfeiture under this chapter may be seized by any commission inspector or law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of real property shall include the filing of a lis pendens by the seizing agency. Real property seized under this section shall not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later: PROVIDED, That real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest. Seizure of personal property without process may be made if:
(a) The seizure is incident to an arrest or a search under a search warrant or an inspection under an administrative inspection warrant;
(b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this chapter;
(c) A commission inspector or law enforcement officer has probable cause to believe that the property is directly or indirectly dangerous to health or safety; or
(d) The commission inspector or law enforcement officer has probable cause to believe that the property was used or is intended to be used in violation of this chapter.
(3) In the event of seizure pursuant to subsection (2) of this section, proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title, shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title. The notice of seizure in other cases may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the fifteen day period following the seizure.
(4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1)(d), (g), or (h) of this section within 60 days of the service of notice from the seizing agency in the case of personal property and 120 days in the case of real property, the item seized shall be deemed forfeited. The community property interest in real property of a person whose spouse or domestic partner committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.
(5) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1)(b), (c), (d), (e), (f), (g), or (h) of this section within 60 days of the service of notice from the seizing agency in the case of personal property and 120 days in the case of real property, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. The notice of claim may be served by any method authorized by law or court rule including, but not limited to, service by first-class mail. Service by mail shall be deemed complete upon mailing within the 60-day period following service of the notice of seizure in the case of personal property and within the 120-day period following service of the notice of seizure in the case of real property. The hearing shall be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020
(4), the hearing shall be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter
34.12
RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal of any matter involving personal property may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080
or
4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed shall be the district court, or the municipal court for the jurisdiction in which the property was seized, when the aggregate value of personal property is within the jurisdictional limit set forth in RCW 3.66.020
. A hearing before the seizing agency and any appeal therefrom shall be under Title
34
RCW. In all cases, the burden of proof is upon the law enforcement agency to establish, by clear, cogent, and convincing evidence, that the property is subject to forfeiture.
The seizing law enforcement agency shall promptly return the article or articles to the claimant, in a substantially similar condition as when seized, upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession thereof of items specified in subsection (1)(b), (c), (d), (e), (f), (g), or (h) of this section.
(6) In any proceeding to forfeit property under this title, where the claimant substantially prevails, the claimant is entitled to reasonable attorneys' fees reasonably incurred by the claimant. In addition, in a court hearing between two or more claimants to the article or articles involved, the prevailing party is entitled to a judgment for costs and reasonable attorneys' fees.
(7) When property is forfeited under this chapter the commission or seizing law enforcement agency may:
(a) Retain it for official use or upon application by any law enforcement agency of this state release such property to such agency for the exclusive use of enforcing the provisions of this chapter;
(b) Sell that which is not required to be destroyed by law and which is not harmful to the public;
(c) Request the appropriate sheriff or director of public safety to take custody of the property and remove it for disposition in accordance with law; or
(d) Forward it to the drug enforcement administration for disposition.
(8)(a) By January 31st of each year, each seizing agency shall remit to the state an amount equal to ten percent of the net proceeds of any property forfeited during the preceding calendar year for deposit into the behavioral health loan repayment and scholarship program account created in RCW 28B.115.135
through June 30, 2027, and into the state general fund thereafter.
(b) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages under subsection (14) of this section.
(c) The value of sold forfeited property is the sale price. The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal. The value of destroyed property and retained firearms or illegal property is zero.
(9) Forfeited property and net proceeds not required to be remitted to the state shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of controlled substances related law enforcement activity. If the seizing agency is a port district operating an airport in a county with a population of more than one million, it may use the net proceeds not required to be remitted to the state for purposes related to controlled substances law enforcement, substance abuse education, human trafficking interdiction, and responsible gun ownership. Money retained under this section may not be used to supplant preexisting funding sources.
(10) Controlled substances listed in Schedule I, II, III, IV, and V that are possessed, transferred, sold, or offered for sale in violation of this chapter are contraband and shall be seized and summarily forfeited to the state. Controlled substances listed in Schedule I, II, III, IV, and V, which are seized or come into the possession of the commission, the owners of which are unknown, are contraband and shall be summarily forfeited to the commission.
(11) Species of plants from which controlled substances in Schedules I and II may be derived which have been planted or cultivated in violation of this chapter, or of which the owners or cultivators are unknown, or which are wild growths, may be seized and summarily forfeited to the commission.
(12) The failure, upon demand by a commission inspector or law enforcement officer, of the person in occupancy or in control of land or premises upon which the species of plants are growing or being stored to produce an appropriate registration or proof that he or she is the holder thereof constitutes authority for the seizure and forfeiture of the plants.
(13) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. Orders for the forfeiture of real property shall be entered by the superior court, subject to court rules. Such an order shall be filed by the seizing agency in the county auditor's records in the county in which the real property is located.
(14)(a) A landlord may assert a claim against proceeds from the sale of assets seized and forfeited under subsection (7)(b) of this section, only if:
(i) A law enforcement officer, while acting in his or her official capacity, directly caused damage to the complaining landlord's property while executing a search of a tenant's residence; and
(ii) The landlord has applied any funds remaining in the tenant's deposit, to which the landlord has a right under chapter
59.18
RCW, to cover the damage directly caused by a law enforcement officer prior to asserting a claim under the provisions of this section;
(A) Only if the funds applied under (a)(ii) of this subsection are insufficient to satisfy the damage directly caused by a law enforcement officer, may the landlord seek compensation for the damage by filing a claim against the governmental entity under whose authority the law enforcement agency operates within thirty days after the search;
(B) Only if the governmental entity denies or fails to respond to the landlord's claim within sixty days of the date of filing, may the landlord collect damages under this subsection by filing within thirty days of denial or the expiration of the sixty-day period, whichever occurs first, a claim with the seizing law enforcement agency. The seizing law enforcement agency must notify the landlord of the status of the claim by the end of the thirty-day period. Nothing in this section requires the claim to be paid by the end of the sixty-day or thirty-day period.
(b) For any claim filed under (a)(ii) of this subsection, the law enforcement agency shall pay the claim unless the agency provides substantial proof that the landlord either:
(i) Knew or consented to actions of the tenant in violation of this chapter or chapter
69.41
or
69.52
RCW; or
(ii) Failed to respond to a notification of the illegal activity, provided by a law enforcement agency under RCW 59.18.075, within seven days of receipt of notification of the illegal activity.
(15) The landlord's claim for damages under subsection (14) of this section may not include a claim for loss of business and is limited to:
(a) Damage to tangible property and clean-up costs;
(b) The lesser of the cost of repair or fair market value of the damage directly caused by a law enforcement officer;
(c) The proceeds from the sale of the specific tenant's property seized and forfeited under subsection (7)(b) of this section; and
(d) The proceeds available after the seizing law enforcement agency satisfies any bona fide security interest in the tenant's property and costs related to sale of the tenant's property as provided by subsection (8)(b) of this section.
(16) Subsections (14) and (15) of this section do not limit any other rights a landlord may have against a tenant to collect for damages. However, if a law enforcement agency satisfies a landlord's claim under subsection (14) of this section, the rights the landlord has against the tenant for damages directly caused by a law enforcement officer under the terms of the landlord and tenant's contract are subrogated to the law enforcement agency.
(17) The protections afforded by the service members' civil relief act, chapter
38.42
RCW, are applicable to proceedings under this section.
[
2025 c 306 s 13
. Prior:
2022 c 162 s 1
;
2022 c 16 s 98
;
2013 c 3 s 25
(Initiative Measure No. 502, approved November 6, 2012); prior:
2009 c 479 s 46
;
2009 c 364 s 1
;
2008 c 6 s 631
;
2003 c 53 s 348
;
2001 c 168 s 1
;
1993 c 487 s 1
;
1992 c 211 s 1
; prior: (1992 c 210 s 5 repealed by 1992 c 211 s 2);
1990 c 248 s 2
;
1990 c 213 s 12
;
1989 c 271 s 212
;
1988 c 282 s 2
;
1986 c 124 s 9
;
1984 c 258 s 333
;
1983 c 2 s 15
; prior:
1982 c 189 s 6
;
1982 c 171 s 1
; prior:
1981 c 67 s 32
;
1981 c 48 s 3
;
1977 ex.s. c 77 s 1
;
1971 ex.s. c 308 s 69.50.505
.]
NOTES:
Application
—
Effective date
—
2025 c 306:
See notes following RCW 7.120.010
.
Effective date
—
2022 c 162:
"This act takes effect July 1, 2022." [
2022 c 162 s 7
.]
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
Effective date
—
2009 c 479:
See note following RCW 2.56.030
.
Part headings not law
—
Severability
—
2008 c 6:
See RCW 26.60.900
and
26.60.901
.
Intent
—
Effective date
—
2003 c 53:
See notes following RCW 2.48.180
.
Severability
—
2001 c 168:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
2001 c 168 s 5
.]
Effective date
—
1990 c 213 ss 2 and 12:
See note following RCW 64.44.010
.
Findings
—
1989 c 271:
"The legislature finds that: Drug offenses and crimes resulting from illegal drug use are destructive to society; the nature of drug trafficking results in many property crimes and crimes of violence; state and local governmental agencies incur immense expenses in the investigation, prosecution, adjudication, incarceration, and treatment of drug-related offenders and the compensation of their victims; drug-related offenses are difficult to eradicate because of the profits derived from the criminal activities, which can be invested in legitimate assets and later used for further criminal activities; and the forfeiture of real assets where a substantial nexus exists between the commercial production or sale of the substances and the real property will provide a significant deterrent to crime by removing the profit incentive of drug trafficking, and will provide a revenue source that will partially defray the large costs incurred by government as a result of these crimes. The legislature recognizes that seizure of real property is a very powerful tool and should not be applied in cases in which a manifest injustice would occur as a result of forfeiture of an innocent spouse's community property interest." [
1989 c 271 s 211
.]
Severability
—
1989 c 271:
See note following RCW 9.94A.510
.
Severability
—
1988 c 282:
"If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [
1988 c 282 s 3
.]
Court Improvement Act of 1984
—
Effective dates
—
Severability
—
Short title
—
1984 c 258:
See notes following RCW 3.30.010
.
Intent
—
1984 c 258:
See note following RCW 3.34.130
.
Severability
—
1983 c 2:
See note following RCW 18.71.030
.
Effective date
—
1982 c 189:
See note following RCW 34.12.020
.
Effective date
—
1982 c 171:
See RCW 69.52.901
.
Severability
—
1981 c 48:
See note following RCW 69.50.102
.
RCW 69.50.506
Burden of proof; liabilities.
(a) [(1)] It is not necessary for the state to negate any exemption or exception in this chapter in any complaint, information, indictment, or other pleading or in any trial, hearing, or other proceeding under this chapter. The burden of proof of any exemption or exception is upon the person claiming it.
(b) [(2)] In the absence of proof that a person is the duly authorized holder of an appropriate registration or order form issued under this chapter, he or she is presumed not to be the holder of the registration or form. The burden of proof is upon him or her to rebut the presumption.
(c) [(3)] No liability is imposed by this chapter upon any authorized state, county, or municipal officer, engaged in the lawful performance of his or her duties.
[
2012 c 117 s 370
;
1971 ex.s. c 308 s 69.50.506
.]
RCW 69.50.507
Judicial review.
All final determinations, findings, and conclusions of the commission under this chapter are final and conclusive decisions of the matters involved. Any person aggrieved by the decision may obtain review of the decision in the superior court wherein he or she resides or in the superior court of Thurston county, such review to be in conformity with the administrative procedure act, chapter
34.05
RCW.
[
2013 c 19 s 110
;
2012 c 117 s 371
;
1971 ex.s. c 308 s 69.50.507
.]
RCW 69.50.508
Education and research.
(a) [(1)] The commission may carry out educational programs designed to prevent and deter misuse and abuse of controlled substances. In connection with these programs it may:
(1) [(a)] promote better recognition of the problems of misuse and abuse of controlled substances within the regulated industry and among interested groups and organizations;
(2) [(b)] assist the regulated industry and interested groups and organizations in contributing to the reduction of misuse and abuse of controlled substances;
(3) [(c)] consult with interested groups and organizations to aid them in solving administrative and organizational problems;
(4) [(d)] evaluate procedures, projects, techniques, and controls conducted or proposed as part of educational programs on misuse and abuse of controlled substances;
(5) [(e)] disseminate the results of research on misuse and abuse of controlled substances to promote a better public understanding of what problems exist and what can be done to combat them; and
(6) [(f)] assist in the education and training of state and local law enforcement officials in their efforts to control misuse and abuse of controlled substances.
(b) [(2)] The commission may encourage research on misuse and abuse of controlled substances. In connection with the research, and in furtherance of the enforcement of this chapter, it may:
(1) [(a)] establish methods to assess accurately the effects of controlled substances and identify and characterize those with potential for abuse;
(2) [(b)] make studies and undertake programs of research to:
(i) develop new or improved approaches, techniques, systems, equipment and devices to strengthen the enforcement of this chapter;
(ii) determine patterns of misuse and abuse of controlled substances and the social effects thereof; and,
(iii) improve methods for preventing, predicting, understanding and dealing with the misuse and abuse of controlled substances; and,
(3) [(c)] enter into contracts with public agencies, institutions of higher education, and private organizations or individuals for the purpose of conducting research, demonstrations, or special projects which bear directly on misuse and abuse of controlled substances.
(c) [(3)] The commission may enter into contracts for educational and research activities without performance bonds.
(d) [(4)] The commission may authorize persons engaged in research on the use and effects of controlled substances to withhold the names and other identifying characteristics of individuals who are the subjects of the research. Persons who obtain this authorization are not compelled in any civil, criminal, administrative, legislative, or other proceeding to identify the individuals who are the subjects of research for which the authorization was obtained.
(e) [(5)] The commission may authorize the possession and distribution of controlled substances by persons engaged in research. Persons who obtain this authorization are exempt from state prosecution for possession and distribution of controlled substances to the extent of the authorization.
[
2013 c 19 s 111
;
1971 ex.s. c 308 s 69.50.508
.]
RCW 69.50.509
Search and seizure of controlled substances.
If, upon the sworn complaint of any person, it shall be made to appear to any judge of the superior court, district court, or municipal court that there is probable cause to believe that any controlled substance is being used, manufactured, sold, bartered, exchanged, administered, dispensed, delivered, distributed, produced, knowingly possessed, given away, furnished or otherwise disposed of or kept in violation of the provisions of this chapter, such judge shall, with or without the approval of the prosecuting attorney, issue a warrant directed to any law enforcement officer of the state, commanding him or her to search the premises designated and described in such complaint and warrant, and to seize all controlled substances there found, together with the vessels in which they are contained, and all implements, furniture and fixtures used or kept for the illegal manufacture, sale, barter, exchange, administering, dispensing, delivering, distributing, producing, possessing, giving away, furnishing or otherwise disposing of such controlled substances, and to safely keep the same, and to make a return of said warrant within three days, showing all acts and things done thereunder, with a particular statement of all articles seized and the name of the person or persons in whose possession the same were found, if any, and if no person be found in the possession of said articles, the returns shall so state. The provisions of RCW 10.31.030
as now or hereafter amended shall apply to actions taken pursuant to this chapter.
[
2023 sp.s. c 1 s 5
;
1987 c 202 s 228
;
1971 ex.s. c 308 s 69.50.509
.]
NOTES:
Effective date
—
2023 sp.s. c 1 ss 1-5, 7-11, and 41:
See note following RCW 69.50.4011
.
Intent
—
1987 c 202:
See note following RCW 2.04.190
.
RCW 69.50.510
Search and seizure at rental premises
—
Notification of landlord.
Whenever a controlled substance which is manufactured, distributed, dispensed, or acquired in violation of this chapter is seized at rental premises, the law enforcement agency shall make a reasonable attempt to discover the identity of the landlord and shall notify the landlord in writing, at the last address listed in the property tax records and at any other address known by the law enforcement agency, of the seizure and the location of the seizure.
[
1988 c 150 s 9
.]
NOTES:
Legislative findings
—
Severability
—
1988 c 150:
See notes following RCW 59.18.130
.
RCW 69.50.511
Cleanup of hazardous substances at illegal drug manufacturing facility
—
Rules.
Law enforcement agencies who during the official investigation or enforcement of any illegal drug manufacturing facility come in contact with or are aware of any substances suspected of being hazardous as defined in RCW 70A.305.020, shall notify the department of ecology for the purpose of securing a contractor to identify, clean up, store, and dispose of suspected hazardous substances, except for those random and representative samples obtained for evidentiary purposes. Whenever possible, a destruct order covering hazardous substances which may be described in general terms shall be obtained concurrently with a search warrant. Materials that have been photographed, fingerprinted, and subsampled by police shall be destroyed as soon as practical. The department of ecology shall make every effort to recover costs from the parties responsible for the suspected hazardous substance. All recoveries shall be deposited in the account or fund from which contractor payments are made.
The department of ecology may adopt rules to carry out its responsibilities under this section. The department of ecology shall consult with law enforcement agencies prior to adopting any rule or policy relating to this section.
[
2021 c 65 s 65
;
2007 c 104 s 17
;
1990 c 213 s 13
;
1989 c 271 s 228
.]
NOTES:
Explanatory statement
—
2021 c 65:
See note following RCW 53.54.030
.
Application
—
Construction
—
2007 c 104:
See RCW 64.70.015
.
Severability
—
1989 c 271:
See note following RCW 9.94A.510
.
RCW 69.50.515
Pharmacies
—
Cannabis
—
Notification and disposal.
(1) Upon finding one ounce or less of cannabis inadvertently left at a retail store holding a pharmacy license, the store manager or employee must promptly notify the local law enforcement agency. After notification to the local law enforcement agency, the store manager or employee must properly dispose of the cannabis.
(2) For the purposes of this section, "properly dispose" means ensuring that the product is destroyed or rendered incapable of use by another person.
[
2022 c 16 s 99
;
2013 c 133 s 1
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
RCW 69.50.525
Diversion prevention and control
—
Report.
(a) [(1)] As used in this section, "diversion" means the transfer of any controlled substance from a licit to an illicit channel of distribution or use.
(b) [(2)] The department shall regularly prepare and make available to other state regulatory, licensing, and law enforcement agencies a report on the patterns and trends of actual distribution, diversion, and abuse of controlled substances.
(c) [(3)] The department shall enter into written agreements with local, state, and federal agencies for the purpose of improving identification of sources of diversion and to improve enforcement of and compliance with this chapter and other laws and regulations pertaining to unlawful conduct involving controlled substances. An agreement must specify the roles and responsibilities of each agency that has information or authority to identify, prevent, and control drug diversion and drug abuse. The department shall convene periodic meetings to coordinate a state diversion prevention and control program. The department shall arrange for cooperation and exchange of information among agencies and with neighboring states and the federal government.
[
1998 c 245 s 109
;
1993 c 187 s 20
.]
RCW 69.50.530
Dedicated cannabis account.
The dedicated cannabis account is created in the state treasury. All moneys received by the board, or any employee thereof, from cannabis-related activities must be deposited in the account. Unless otherwise provided in chapter 4, Laws of 2015 2nd sp. sess., all cannabis excise taxes collected from sales of cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products under RCW 69.50.535, and the license fees, penalties, and forfeitures derived under this chapter from cannabis producer, cannabis processor, cannabis researcher, and cannabis retailer licenses, must be deposited in the account. Moneys in the account may only be spent after appropriation.
[
2023 c 470 s 1014
. Prior:
2022 c 169 s 1
;
2022 c 16 s 100
;
2018 c 299 s 909
;
2016 sp.s. c 36 s 942
;
2015 2nd sp.s. c 4 s 1101
;
2013 c 3 s 26
(Initiative Measure No. 502, approved November 6, 2012).]
NOTES:
Explanatory statement
—
2023 c 470:
See note following RCW 10.99.030
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2018 c 299:
See note following RCW 43.41.433
.
Effective date
—
2016 sp.s. c 36:
See note following RCW 18.20.430
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
RCW 69.50.535
Cannabis excise tax
—
Medical exemption
—
State liquor and cannabis board to review tax level
—
Reports
—
State and federal antitrust laws.
(1)(a) There is levied and collected a cannabis excise tax equal to thirty-seven percent of the selling price on each retail sale in this state of cannabis concentrates, useable cannabis, and cannabis-infused products. This tax is separate and in addition to general state and local sales and use taxes that apply to retail sales of tangible personal property, and is not part of the total retail price to which general state and local sales and use taxes apply. The tax must be separately itemized from the state and local retail sales tax on the sales receipt provided to the buyer.
(b) The tax levied in this section must be reflected in the price list or quoted shelf price in the licensed cannabis retail store and in any advertising that includes prices for all useable cannabis, cannabis concentrates, or cannabis-infused products.
(2)(a) Until June 30, 2029, the tax levied by subsection (1) of this section does not apply to sales by a cannabis retailer with a medical cannabis endorsement to qualifying patients or designated providers who have been issued a recognition card, of cannabis concentrates, useable cannabis, or cannabis-infused products, identified by the department as a compliant cannabis product in chapter 246-70 WAC and tested to the standards in WAC 246-70-040.
(b) Each seller making exempt sales under this subsection (2) must maintain information establishing eligibility for the exemption in the form and manner required by the board.
(c) The board must provide a separate tax reporting line on the excise tax form for exemption amounts claimed under this subsection (2).
(3) All revenues collected from the cannabis excise tax imposed under this section must be deposited each day in the dedicated cannabis account.
(4) The tax imposed in this section must be paid by the buyer to the seller. Each seller must collect from the buyer the full amount of the tax payable on each taxable sale. The tax collected as required by this section is deemed to be held in trust by the seller until paid to the board. If any seller fails to collect the tax imposed in this section or, having collected the tax, fails to pay it as prescribed by the board, whether such failure is the result of the seller's own acts or the result of acts or conditions beyond the seller's control, the seller is, nevertheless, personally liable to the state for the amount of the tax.
(5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Retail sale" has the same meaning as in RCW 82.08.010
.
(b) "Selling price" has the same meaning as in RCW 82.08.010, except that when product is sold under circumstances where the total amount of consideration paid for the product is not indicative of its true value, "selling price" means the true value of the product sold.
(c) "Product" means cannabis, cannabis concentrates, useable cannabis, and cannabis-infused products.
(d) "True value" means market value based on sales at comparable locations in this state of the same or similar product of like quality and character sold under comparable conditions of sale to comparable purchasers. However, in the absence of such sales of the same or similar product, true value means the value of the product sold as determined by all of the seller's direct and indirect costs attributable to the product.
(6)(a) The board must regularly review the tax level established under this section and make recommendations, in consultation with the department of revenue, to the legislature as appropriate regarding adjustments that would further the goal of discouraging use while undercutting illegal market prices.
(b) The board must report, in compliance with RCW 43.01.036, to the appropriate committees of the legislature every two years. The report at a minimum must include the following:
(i) The specific recommendations required under (a) of this subsection;
(ii) A comparison of gross sales and tax collections prior to and after any cannabis tax change;
(iii) The increase or decrease in the volume of legal cannabis sold prior to and after any cannabis tax change;
(iv) Increases or decreases in the number of licensed cannabis producers, processors, and retailers;
(v) The number of illegal and noncompliant cannabis outlets the board requires to be closed;
(vi) Gross cannabis sales and tax collections in Oregon; and
(vii) The total amount of reported sales and use taxes exempted for qualifying patients. The department of revenue must provide the data of exempt amounts to the board.
(c) The board is not required to report to the legislature as required in (b) of this subsection after January 1, 2025.
(7) The legislature does not intend and does not authorize any person or entity to engage in activities or to conspire to engage in activities that would constitute per se violations of state and federal antitrust laws including, but not limited to, agreements among retailers as to the selling price of any goods sold.
[
2024 c 79 s 1
;
2022 c 16 s 101
;
2015 2nd sp.s. c 4 s 205
;
2014 c 192 s 7
;
2013 c 3 s 27
(Initiative Measure No. 502, approved November 6, 2012).]
NOTES:
Tax preference performance statement
—
2024 c 79 s 1:
"(1) This section is the tax preference performance statement for the tax preference contained in section 1, chapter 79, Laws of 2024. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808
(2)(e).
(3) It is the legislature's specific public policy objective to ensure medical cannabis products are accessible and affordable for qualifying patients and designated providers.
(4) The joint legislative audit and review committee must include in its review of this tax preference an evaluation of:
(a) Any change in the number of qualifying patients or designated providers;
(b) Any change in the amount, types, or sales of tax-exempt products, as identified in section 1 of this act; and
(c) Any other information the joint legislative audit and review committee deems necessary to evaluate the tax preference in section 1 of this act.
(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may access any data collected by the department of health or the liquor and cannabis board or any other data collected by the state.
(6) The joint legislative audit and review committee must submit a report of its findings to the legislature by December 1, 2028." [
2024 c 79 s 2
.]
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
RCW 69.50.540
Appropriations.
(1) For the purposes of this subsection (1), the legislature must appropriate the amounts provided in this subsection:
(a) $12,500,000 annually to the board for administration of this chapter as appropriated in the omnibus appropriations act;
(b) $11,000,000 annually to the department of health for the following:
(i) Creation, implementation, operation, and management of a cannabis, vapor product, and commercial tobacco education and public health program that contains the following:
(A) A cannabis use public health hotline that provides referrals to substance abuse treatment providers, uses evidence-based or research-based public health approaches to minimizing the harms associated with cannabis use, and does not solely advocate an abstinence-only approach;
(B) Programs that support development and implementation of coordinated intervention strategies for the prevention and reduction of commercial tobacco, vapor product, and cannabis use by youth and cannabis cessation treatment services, including grant programs to local health departments or other local community agencies;
(C) Media-based education campaigns across television, internet, radio, print, and out-of-home advertising, separately targeting youth and adults, that provide medically and scientifically accurate information about the health and safety risks posed by cannabis use; and
(D) Outreach to priority populations regarding commercial tobacco, vapor product, and cannabis use, prevention, and cessation; and
(ii) The Washington poison control center;
(c)(i) $3,000,000 annually to the department of commerce to fund cannabis social equity grants under RCW 43.330.540
; and
(ii) $200,000 annually to the department of commerce to fund technical assistance through a roster of mentors under RCW 43.330.540
;
(d) $200,000 annually, until June 30, 2032, to the health care authority to contract with the Washington state institute for public policy to conduct the cost-benefit evaluations and produce the reports described in RCW 69.50.550
;
(e) $25,000 annually to the University of Washington alcohol and drug abuse institute for the creation, maintenance, and timely updating of web-based public education materials providing medically and scientifically accurate information about the health and safety risks posed by cannabis use;
(f) $300,000 annually to the University of Washington and $175,000 annually to the Washington State University for research on the short-term and long-term effects of cannabis use to include, but not be limited to, formal and informal methods for estimating and measuring intoxication and impairments, and for the dissemination of such research;
(g) $550,000 annually to the office of the superintendent of public instruction to fund grants to building bridges programs under chapter
28A.175
RCW;
(h) $2,423,000 for fiscal year 2022 and $2,423,000 for fiscal year 2023 to the Washington state patrol for a drug enforcement task force;
(i) $270,000 for fiscal year 2022 and $290,000 for fiscal year 2023 to the department of ecology for implementation of accreditation of cannabis product testing laboratories;
(j) $800,000 for each of fiscal years 2020 through 2023 to the department of health for the administration of the cannabis authorization database; and
(k) $621,000 for fiscal year 2022 and $635,000 for fiscal year 2023 to the department of agriculture for compliance-based laboratory analysis of pesticides in cannabis.
(2) Subsections [Subsection] (1)(a) through (g) of this section must be adjusted annually based on the United States bureau of labor statistics' consumer price index for the Seattle area.
(3) After appropriation of the amounts identified in subsection (1) of this section, the legislature must annually appropriate such remaining amounts for the purposes listed in this subsection (3) as follows:
(a) Fifty-two percent to the state basic health plan trust account to be administered by the Washington basic health plan administrator and used as provided under chapter
70.47
RCW;
(b) Eleven percent to the health care authority to:
(i) Design and administer the Washington state healthy youth survey, analyze the collected data, and produce reports, in collaboration with the office of the superintendent of public instruction, department of health, department of commerce, family policy council, and board. The survey must be conducted at least every two years and include questions regarding, but not necessarily limited to, academic achievement, age at time of substance use initiation, antisocial behavior of friends, attitudes toward antisocial behavior, attitudes toward substance use, laws and community norms regarding antisocial behavior, family conflict, family management, parental attitudes toward substance use, peer rewarding of antisocial behavior, perceived risk of substance use, and rebelliousness. Funds disbursed under this subsection may be used to expand administration of the healthy youth survey to student populations attending institutions of higher education in Washington;
(ii) Develop, implement, maintain, and evaluate programs and practices aimed at the prevention or reduction of maladaptive substance use, substance use disorder, substance abuse or substance dependence, as these terms are defined in the diagnostic and statistical manual of mental disorders, among middle school and high school-age students, whether as an explicit goal of a given program or practice or as a consistently corresponding effect of its implementation, mental health services for children and youth, and services for pregnant and parenting women. In deciding which programs and practices to fund under this subsection (3)(b)(ii), the director of the health care authority must consult, at least annually, with the University of Washington's social development research group and the University of Washington's alcohol and drug abuse institute; and
(iii) Contract with community health centers to provide primary health and dental care services, migrant health services, and maternity health care services as provided under RCW 41.05.220
;
(c)(i) One and one-half percent to counties, cities, and towns where licensed cannabis retailers are physically located. Each jurisdiction must receive a share of the revenue distribution under this subsection (3)(c)(i) based on the proportional share of the total revenues generated in the individual jurisdiction from the taxes collected under RCW 69.50.535, from licensed cannabis retailers physically located in each jurisdiction. For purposes of this subsection (3)(c), 100 percent of the proportional amount attributed to a retailer physically located in a city or town must be distributed to the city or town;
(ii) Three and one-half percent to counties, cities, and towns ratably on a per capita basis. Counties must receive 60 percent of the distribution based on each county's total proportional population. Funds may only be distributed to jurisdictions that do not prohibit the siting of any state licensed cannabis producer, processor, or retailer;
(iii) By September 15th of each year, the board must provide the state treasurer the annual distribution amount made under this subsection (3)(c), if any, for each county and city as determined in (c)(i) and (ii) of this subsection; and
(iv) Distribution amounts allocated to each county, city, and town in (c)(i) and (ii) of this subsection must be distributed in four installments by the last day of each fiscal quarter; and
(d) Thirty-two percent must be deposited in the state general fund.
[
2023 c 470 s 1015
. Prior:
2022 c 169 s 2
;
2022 c 16 s 102
;
2021 c 334 s 986
; prior:
2020 c 357 s 916
;
2020 c 236 s 4
;
2019 c 415 s 978
; prior:
2018 c 299 s 910
;
2018 c 201 s 8014
;
2017 3rd sp.s. c 1 s 979
;
2015 3rd sp.s. c 4 s 967
;
2015 2nd sp.s. c 4 s 206
;
2013 c 3 s 28
(Initiative Measure No. 502, approved November 6, 2012).]
NOTES:
Explanatory statement
—
2023 c 470:
See note following RCW 10.99.030
.
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Conflict with federal requirements
—
Effective date
—
2021 c 334:
See notes following RCW 43.79.555
.
Effective date
—
2020 c 357:
See note following RCW 43.79.545
.
Findings
—
Intent
—
2020 c 236:
See note following RCW 69.50.335
.
Effective date
—
2019 c 415:
See note following RCW 28B.20.476
.
Effective date
—
2018 c 299:
See note following RCW 43.41.433
.
Findings
—
Intent
—
Effective date
—
2018 c 201:
See notes following RCW 41.05.018
.
Effective date
—
2017 3rd sp.s. c 1:
See note following RCW 43.41.455
.
Effective dates
—
2015 3rd sp.s. c 4:
See note following RCW 28B.15.069
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
RCW 69.50.550
Cost-benefit evaluations.
(1) The Washington state institute for public policy shall conduct cost-benefit evaluations of the implementation of chapter 3, Laws of 2013. A preliminary report, and recommendations to appropriate committees of the legislature, shall be made by September 1, 2015, and the first final report with recommendations by September 1, 2017. Subsequent reports shall be due September 1, 2022, and September 1, 2032.
(2) The evaluation of the implementation of chapter 3, Laws of 2013 shall include, but not necessarily be limited to, consideration of the following factors:
(a) Public health, to include but not be limited to:
(i) Health costs associated with cannabis use;
(ii) Health costs associated with criminal prohibition of cannabis, including lack of product safety or quality control regulations and the relegation of cannabis to the same illegal market as potentially more dangerous substances; and
(iii) The impact of increased investment in the research, evaluation, education, prevention and intervention programs, practices, and campaigns identified in RCW 69.50.363
on rates of cannabis-related maladaptive substance use and diagnosis of cannabis-related substance use disorder, substance abuse, or substance dependence, as these terms are defined in the Diagnostic and Statistical Manual of Mental Disorders;
(b) Public safety, to include but not be limited to:
(i) Public safety issues relating to cannabis use; and
(ii) Public safety issues relating to criminal prohibition of cannabis;
(c) Youth and adult rates of the following:
(i) Cannabis use;
(ii) Maladaptive use of cannabis; and
(iii) Diagnosis of cannabis-related substance use disorder, substance abuse, or substance dependence, including primary, secondary, and tertiary choices of substance;
(d) Economic impacts in the private and public sectors, including but not limited to:
(i) Jobs creation;
(ii) Workplace safety;
(iii) Revenues; and
(iv) Taxes generated for state and local budgets;
(e) Criminal justice impacts, to include but not be limited to:
(i) Use of public resources like law enforcement officers and equipment, prosecuting attorneys and public defenders, judges and court staff, the Washington state patrol crime lab and identification and criminal history section, jails and prisons, and misdemeanant and felon supervision officers to enforce state criminal laws regarding cannabis; and
(ii) Short and long-term consequences of involvement in the criminal justice system for persons accused of crimes relating to cannabis, their families, and their communities; and
(f) State and local agency administrative costs and revenues.
[
2022 c 16 s 103
;
2013 c 3 s 30
(Initiative Measure No. 502, approved November 6, 2012).]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
2013 c 3 (Initiative Measure No. 502):
See note following RCW 69.50.101
.
RCW 69.50.555
Taxes, fees, assessments, charges
—
Commercial activities covered by cannabis agreement between state and tribe.
The taxes, fees, assessments, and other charges imposed by this chapter do not apply to commercial activities related to the production, processing, sale, and possession of cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products covered by an agreement entered into under RCW 43.06.490
.
[
2022 c 16 s 104
;
2015 c 207 s 3
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
Finding
—
2015 c 207:
See note following RCW 43.06.490
.
RCW 69.50.560
Controlled purchase programs
—
Persons under age twenty-one
—
Violation
—
Criminal penalty
—
Exceptions.
(1) The board may conduct controlled purchase programs to determine whether:
(a) A cannabis retailer is unlawfully selling cannabis to persons under the age of twenty-one;
(b) A cannabis retailer holding a medical cannabis endorsement is selling to persons under the age of eighteen or selling to persons between the ages of eighteen and twenty-one who do not hold valid recognition cards; or
(c) A cooperative organized under RCW 69.51A.250
is permitting a person under the age of twenty-one to participate.
(2) Every person under the age of twenty-one years who purchases or attempts to purchase cannabis is guilty of a violation of this section. This section does not apply to:
(a) Persons between the ages of eighteen and twenty-one who hold valid recognition cards and purchase cannabis at a cannabis retail outlet holding a medical cannabis endorsement;
(b) Persons between the ages of eighteen and twenty-one years who are participating in a controlled purchase program authorized by the board under rules adopted by the board. Violations occurring under a private, controlled purchase program authorized by the board may not be used for criminal or administrative prosecution.
(3) A cannabis retailer who conducts an in-house controlled purchase program authorized under this section shall provide his or her employees a written description of the employer's in-house controlled purchase program. The written description must include notice of actions an employer may take as a consequence of an employee's failure to comply with company policies regarding the sale of cannabis during an in-house controlled purchase program.
(4) An in-house controlled purchase program authorized under this section shall be for the purposes of employee training and employer self-compliance checks. A cannabis retailer may not terminate an employee solely for a first-time failure to comply with company policies regarding the sale of cannabis during an in-house controlled purchase program authorized under this section.
(5) Every person between the ages of eighteen and twenty-one who is convicted of a violation of this section is guilty of a misdemeanor punishable as provided by RCW 9A.20.021
.
[
2022 c 16 s 105
;
2015 c 70 s 33
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2015 c 70 ss 21, 22, 32, and 33:
See note following RCW 69.51A.230
.
Short title
—
Findings
—
Intent
—
References to Washington state liquor control board
—
Draft legislation
—
2015 c 70:
See notes following RCW 66.08.012
.
RCW 69.50.561
Advice and consultation services
—
Licensed cannabis businesses.
(1) The board may grant a licensee's application for advice and consultation as provided in RCW 69.50.342
(3) and visit the licensee's licensed premises in order to provide such advice and consultation. Advice and consultation services are limited to the matters specified in the request affecting the interpretation and applicability of the standards in this chapter to the conditions, structures, machines, equipment, apparatus, devices, materials, methods, means, and practices in the licensee's licensed premises. The board may provide for an alternative means of affording consultation and advice other than on-site consultation.
(2) The board must make recommendations on eliminating areas of concern disclosed within the scope of the on-site consultation. A visit to a licensee's licensed premises may not be considered an inspection or investigation under this chapter. During the visit, the board may not issue notices or citations and may not assess civil penalties. However, if the on-site visit discloses a violation with a direct or immediate relationship to public safety and the violation is not corrected, the board may investigate.
(3) This section does not provide immunity to a licensee who has applied for consultative services from inspections or investigations conducted under this chapter or from any inspection conducted as a result of a complaint before, during, or after the provision of consultative services.
(4) This section does not require an inspection of a licensee's licensed premises that has been visited for consultative purposes. However, if the premises are inspected after a visit, the board may consider any information obtained during the consultation visit in determining the nature of an alleged violation and the amount of penalties to be assessed, if any.
(5) Rules adopted under RCW 69.50.562
must provide that violations with a direct or immediate relationship to public safety discovered during the consultation visit must be corrected within a specified period of time and an inspection must be conducted at the end of that time period.
(6) All licensees requesting consultative services must be advised of this section and the rules adopted by the board relating to the voluntary compliance program. Valuable formulae or financial or proprietary commercial information records received during a consultative visit or while providing consultative services in accordance with this section are not subject to inspection pursuant to chapter
42.56
RCW.
(7) The board may adopt rules on the frequency, manner, and method of providing consultative services to licensees. Rules may include scheduling of consultative services and prioritizing requests for the services while maintaining the enforcement requirements of this chapter.
[
2019 c 394 s 5
.]
NOTES:
Findings
—
2019 c 394:
See note following RCW 69.50.563
.
RCW 69.50.562
Licensed cannabis businesses
—
Written warnings
—
Waiver of sanctions with no relationship to public safety
—
Compliance program
—
Penalties
—
Rules.
(1) The board must prescribe procedures for the following:
(a) Issuance of written warnings or notices to correct in lieu of penalties, sanctions, or other violations with respect to regulatory violations that have no direct or immediate relationship to public safety as defined by the board;
(b) Waiving any fines, civil penalties, or administrative sanctions for violations, that have no direct or immediate relationship to public safety, and are corrected by the licensee within a reasonable amount of time as designated by the board; and
(c) A compliance program in accordance with chapter
43.05
RCW and RCW 69.50.342, whereby licensees may request compliance assistance and inspections without issuance of a penalty, sanction, or other violation provided that any noncompliant issues are resolved within a specified period of time.
(2) The board must adopt rules prescribing penalties for violations of this chapter. The board:
(a) May establish escalating penalties for violation of this chapter, provided that the cumulative effect of any such escalating penalties cannot last beyond two years and the escalation applies only to multiple violations that are the same or similar in nature;
(b) May not include cancellation of a license for a single violation, unless the board can prove by a preponderance of the evidence:
(i) Diversion of cannabis product to the illicit market or sales across state lines;
(ii) Furnishing of cannabis product to minors;
(iii) Diversion of revenue to criminal enterprises, gangs, cartels, or parties not qualified to hold a cannabis license based on criminal history requirements;
(iv) The commission of noncannabis-related crimes; or
(v) Knowingly making a misrepresentation of fact to the board, an officer of the board, or an employee of the board related to conduct or an action that is, or alleged to be, any of the violations identified in (b)(i) through (iv) of this subsection (2);
(c) May include cancellation of a license for cumulative violations only if a cannabis licensee commits at least four violations within a two-year period of time;
(d) Must consider aggravating and mitigating circumstances and deviate from the prescribed penalties accordingly, and must authorize enforcement officers to do the same, provided that such penalty may not exceed the maximum escalating penalty prescribed by the board for that violation; and
(e) Must give substantial consideration to mitigating any penalty imposed on a licensee when there is employee misconduct that led to the violation and the licensee:
(i) Established a compliance program designed to prevent the violation;
(ii) Performed meaningful training with employees designed to prevent the violation; and
(iii) Had not enabled or ignored the violation or other similar violations in the past.
(3) The board may not consider any violation that occurred more than two years prior as grounds for denial, suspension, revocation, cancellation, or nonrenewal, unless the board can prove by a preponderance of the evidence that the prior administrative violation evidences:
(a) Diversion of cannabis product to the illicit market or sales across state lines;
(b) Furnishing of cannabis product to minors;
(c) Diversion of revenue to criminal enterprises, gangs, cartels, or parties not qualified to hold a cannabis license based on criminal history requirements;
(d) The commission of noncannabis-related crimes; or
(e) Knowingly making a misrepresentation of fact to the board, an officer of the board, or an employee of the board related to conduct or an action that is, or is alleged to be, any of the violations identified in (a) through (d) of this subsection (3).
[
2022 c 16 s 106
;
2019 c 394 s 6
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
2019 c 394:
See note following RCW 69.50.563
.
RCW 69.50.563
Licensed cannabis businesses
—
Civil penalty
—
Rules.
(1) The board may issue a civil penalty without first issuing a notice of correction if:
(a) The licensee has previously been subject to an enforcement action for the same or similar type of violation of the same statute or rule or has been given previous notice of the same or similar type of violation of the same statute or rule;
(b) Compliance is not achieved by the date established by the board in a previously issued notice of correction and if the board has responded to a request for review of the date by reaffirming the original date or establishing a new date; or
(c) The board can prove by a preponderance of the evidence:
(i) Diversion of cannabis product to the illicit market or sales across state lines;
(ii) Furnishing of cannabis product to minors;
(iii) Diversion of revenue to criminal enterprises, gangs, cartels, or parties not qualified to hold a cannabis license based on criminal history requirements;
(iv) The commission of noncannabis-related crimes; or
(v) Knowingly making a misrepresentation of fact to the board, an officer of the board, or an employee of the board related to conduct or an action that is, or is alleged to be, any of the violations identified in (c)(i) through (iv) of this subsection (1).
(2) The board may adopt rules to implement this section and RCW 43.05.160
.
[
2022 c 16 s 107
;
2019 c 394 s 3
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
2019 c 394:
"The legislature finds that:
(1) In the years since the creation of a legal and regulated marketplace for adult use of cannabis, the industry, stakeholders, and state agencies have collaborated to develop a safe, fully regulated marketplace.
(2) As the regulated marketplace has been developing, Washington residents with a strong entrepreneurial spirit have taken great financial and personal risk to become licensed and part of this nascent industry.
(3) It should not be surprising that mistakes have been made both by licensees and regulators, and that both have learned from these mistakes leading to a stronger, safer industry.
(4) While a strong focus on enforcement is an important component of the regulated marketplace, a strong focus on compliance and education is also critically necessary to assist licensees who strive for compliance and in order to allow the board to focus its enforcement priorities on those violations that directly harm public health and safety.
(5) The risk taking entrepreneurs who are trying to comply with board regulations should not face punitive consequences for mistakes made during this initial phase of the industry that did not pose a direct threat to public health and safety." [
2019 c 394 s 1
.]
RCW 69.50.564
Licensed cannabis businesses
—
Settlement agreement.
(1) This section applies to the board's issuance of administrative violations to licensed cannabis producers, processors, retailers, transporters, and researchers, when a settlement conference is held between a hearing officer or designee of the board and the cannabis licensee that received a notice of an alleged administrative violation or violations.
(2) If a settlement agreement is entered between a cannabis licensee and a hearing officer or designee of the board at or after a settlement conference, the terms of the settlement agreement must be given substantial weight by the board.
(3) For the purposes of this section:
(a) "Settlement agreement" means the agreement or compromise between a licensed cannabis producer, processor, retailer, researcher, transporter, or researcher and the hearing officer or designee of the board with authority to participate in the settlement conference, that:
(i) Includes the terms of the agreement or compromise regarding an alleged violation or violations by the licensee of this chapter, chapter
69.51A
RCW, or rules adopted under either chapter, and any related penalty or licensing restriction; and
(ii) Is in writing and signed by the licensee and the hearing officer or designee of the board.
(b) "Settlement conference" means a meeting or discussion between a licensed cannabis producer, processor, retailer, researcher, transporter, researcher, or authorized representative of any of the preceding licensees, and a hearing officer or designee of the board, held for purposes such as discussing the circumstances surrounding an alleged violation of law or rules by the licensee, the recommended penalty, and any aggravating or mitigating factors, and that is intended to resolve the alleged violation before an administrative hearing or judicial proceeding is initiated.
[
2022 c 16 s 108
;
2019 c 394 s 8
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
2019 c 394:
See note following RCW 69.50.563
.
RCW 69.50.565
Unpaid trust fund taxes
—
Limited liability business entities
—
Liability of responsible individuals
—
Administrative hearing.
(1) Whenever the board determines that a limited liability business entity has collected trust fund taxes and has failed to remit those taxes to the board and that business entity has been terminated, dissolved, or abandoned, or is insolvent, the board may pursue collection of the entity's unpaid trust fund taxes, including penalties on those taxes, against any or all of the responsible individuals. For purposes of this subsection, "insolvent" means the condition that results when the sum of the entity's debts exceeds the fair market value of its assets. The board may presume that an entity is insolvent if the entity refuses to disclose to the board the nature of its assets and liabilities.
(2)(a) For a responsible individual who is the current or a former chief executive or chief financial officer, liability under this section applies regardless of fault or whether the individual was or should have been aware of the unpaid trust fund tax liability of the limited liability business entity.
(b) For any other responsible individual, liability under this section applies only if he or she willfully failed to pay or to cause to be paid to the board the trust fund taxes due from the limited liability business entity.
(3)(a) Except as provided in this subsection (3)(a), a responsible individual who is the current or a former chief executive or chief financial officer is liable under this section only for trust fund tax liability accrued during the period that he or she was the chief executive or chief financial officer. However, if the responsible individual had the responsibility or duty to remit payment of the limited liability business entity's trust fund taxes to the board during any period of time that the person was not the chief executive or chief financial officer, that individual is also liable for trust fund tax liability that became due during the period that he or she had the duty to remit payment of the limited liability business entity's taxes to the board but was not the chief executive or chief financial officer.
(b) All other responsible individuals are liable under this section only for trust fund tax liability that became due during the period he or she had the responsibility or duty to remit payment of the limited liability business entity's taxes to the board.
(4) Persons described in subsection (3)(b) of this section are exempt from liability under this section in situations where nonpayment of the limited liability business entity's trust fund taxes was due to reasons beyond their control as determined by the board by rule.
(5) Any person having been issued a notice of unpaid trust fund taxes under this section is entitled to an administrative hearing under RCW 69.50.334
and any such rules the board may adopt.
(6) This section does not relieve the limited liability business entity of its trust fund tax liability or otherwise impair other tax collection remedies afforded by law.
(7) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Board" means the state liquor and cannabis board.
(b) "Chief executive" means: The president of a corporation or for other entities or organizations other than corporations or if the corporation does not have a president as one of its officers, the highest ranking executive manager or administrator in charge of the management of the company or organization.
(c) "Chief financial officer" means: The treasurer of a corporation or for entities or organizations other than corporations or if a corporation does not have a treasurer as one of its officers, the highest senior manager who is responsible for overseeing the financial activities of the entire company or organization.
(d) "Limited liability business entity" means a type of business entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity, or a business entity that is managed or owned in whole or in part by an entity that generally shields its owners from personal liability for the debts, obligations, and liabilities of the entity. Limited liability business entities include corporations, limited liability companies, limited liability partnerships, trusts, general partnerships and joint ventures in which one or more of the partners or parties are also limited liability business entities, and limited partnerships in which one or more of the general partners are also limited liability business entities.
(e) "Manager" has the same meaning as in *RCW 25.15.005
.
(f) "Member" has the same meaning as in *RCW 25.15.005, except that the term only includes members of member-managed limited liability companies.
(g) "Officer" means any officer or assistant officer of a corporation, including the president, vice president, secretary, and treasurer.
(h)(i) "Responsible individual" includes any current or former officer, manager, member, partner, or trustee of a limited liability business entity with unpaid trust fund tax liability.
(ii) "Responsible individual" also includes any current or former employee or other individual, but only if the individual had the responsibility or duty to remit payment of the limited liability business entity's unpaid trust fund tax liability.
(iii) Whenever any taxpayer has one or more limited liability business entities as a member, manager, or partner, "responsible individual" also includes any current and former officers, members, or managers of the limited liability business entity or entities or of any other limited liability business entity involved directly in the management of the taxpayer. For purposes of this subsection (7)(h)(iii), "taxpayer" means a limited liability business entity with unpaid trust fund taxes.
(i) "Trust fund taxes" means taxes collected from buyers and deemed held in trust under RCW 69.50.535
.
(j) "Willfully failed to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.
[
2015 2nd sp.s. c 4 s 202
.]
NOTES:
*Reviser's note:
RCW 25.15.005
was repealed by 2015 c 188 s 108, effective January 1, 2016.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
RCW 69.50.570
Bundled transactions
—
Retail sales
—
Subject to tax
—
Exception.
(1)(a) Except as provided in (b) of this subsection, a retail sale of a bundled transaction that includes cannabis product is subject to the tax imposed under RCW 69.50.535
on the entire selling price of the bundled transaction.
(b) If the selling price is attributable to products that are taxable and products that are not taxable under RCW 69.50.535, the portion of the price attributable to the nontaxable products are subject to the tax imposed by RCW 69.50.535
unless the seller can identify by reasonable and verifiable standards the portion that is not subject to tax from its books and records that are kept in the regular course of business for other purposes including, but not limited to, nontax purposes.
(2) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Bundled transaction" means:
(i) The retail sale of two or more products where the products are otherwise distinct and identifiable, are sold for one nonitemized price, and at least one product is a cannabis product subject to the tax under RCW 69.50.535
; and
(ii) A cannabis product provided free of charge with the required purchase of another product. A cannabis product is provided free of charge if the sales price of the product purchased does not vary depending on the inclusion of the cannabis product provided free of charge.
(b) "Cannabis product" means "useable cannabis," "cannabis concentrates," and "cannabis-infused products" as defined in RCW 69.50.101
.
(c) "Distinct and identifiable products" does not include packaging such as containers, boxes, sacks, bags, and bottles, or materials such as wrapping, labels, tags, and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale thereof. Examples of packaging that are incidental or immaterial include grocery sacks, shoeboxes, and dry cleaning garment bags.
(d) "Selling price" has the same meaning as in RCW 82.08.010, except that when product is sold under circumstances where the total amount of consideration paid for the product is not indicative of its true value, "selling price" means the true value of the product sold.
(e) "True value" means market value based on sales at comparable locations in this state of the same or similar product of like quality and character sold under comparable conditions of sale to comparable purchasers. However, in the absence of such sales of the same or similar product, "true value" means the value of the product sold as determined by all of the seller's direct and indirect costs attributable to the product.
[
2022 c 16 s 109
;
2015 2nd sp.s. c 4 s 210
.]
NOTES:
Reviser's note:
The definitions in this section have been alphabetized pursuant to RCW 1.08.015
(2)(k).
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
RCW 69.50.575
Cannabis health and beauty aids.
(1) Cannabis health and beauty aids are not subject to the regulations and penalties of this chapter that apply to cannabis, cannabis concentrates, or cannabis-infused products.
(2) For purposes of this section, "cannabis health and beauty aid" means a product containing parts of the cannabis plant and which:
(a) Is intended for use only as a topical application to provide therapeutic benefit or to enhance appearance;
(b) Contains a THC concentration of not more than 0.3 percent;
(c) Does not cross the blood-brain barrier; and
(d) Is not intended for ingestion by humans or animals.
[
2022 c 16 s 110
;
2015 2nd sp.s. c 4 s 701
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
RCW 69.50.580
Applicants for cannabis producer's, processor's, researcher's, or retailer's licenses
—
Signage
—
Public notice requirements.
(1) Applicants for a cannabis producer's, cannabis processor's, cannabis researcher's or cannabis retailer's license under this chapter must display a sign provided by the board on the outside of the premises to be licensed notifying the public that the premises are subject to an application for such license. The sign must:
(a) Contain text with content sufficient to notify the public of the nature of the pending license application, the date of the application, the name of the applicant, and contact information for the board;
(b) Be conspicuously displayed on, or immediately adjacent to, the premises subject to the application and in the location that is most likely to be seen by the public;
(c) Be of a size sufficient to ensure that it will be readily seen by the public; and
(d) Be posted within seven business days of the submission of the application to the board.
(2) The board must adopt such rules as are necessary for the implementation of this section, including rules pertaining to the size of the sign and the text thereon, the textual content of the sign, the fee for providing the sign, and any other requirements necessary to ensure that the sign provides adequate notice to the public.
(3)(a) A city, town, or county may adopt an ordinance requiring individual notice by an applicant for a cannabis producer's, cannabis processor's, cannabis researcher's, or cannabis retailer's license under this chapter, sixty days prior to issuance of the license, to any elementary or secondary school, playground, recreation center or facility, child care center, church, public park, public transit center, library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older, that is within one thousand feet of the perimeter of the grounds of the establishment seeking licensure. The notice must provide the contact information for the board where any of the owners or operators of these entities may submit comments or concerns about the proposed business location.
(b) For the purposes of this subsection, "church" means a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith.
[
2022 c 16 s 111
;
2015 2nd sp.s. c 4 s 801
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
RCW 69.50.585
Branded promotional items
—
Nominal value
—
Personal services.
(1)(a) Nothing in this chapter prohibits a producer or processor from providing retailers branded promotional items which are of nominal value, singly or in the aggregate. Such items include but are not limited to: Lighters, postcards, pencils, matches, shirts, hats, visors, and other similar items. Branded promotional items:
(i) Must be used exclusively by the retailer or its employees in a manner consistent with its license;
(ii) Must bear imprinted advertising matter of the producer or processor only;
(iii) May be provided by a producer or processor only to retailers and their employees and may not be provided by or through retailers or their employees to retail customers; and
(iv) May not be targeted to youth, including any: (A) Statement, picture, or illustration that depicts a child or other person under legal age for consuming cannabis; (B) objects, such as toys or characters, suggesting the presence of a child, or any other depiction designed in any manner to be especially appealing to children or other persons under legal age to consume cannabis; (C) advertising designed in any manner that would be especially appealing to children or other persons under twenty-one years of age; or (D) advertising implying that the consumption of cannabis is fashionable or the accepted course of behavior for persons under twenty-one years of age.
(b) A producer or processor is not obligated to provide any such branded promotional items, and a retailer may not require a producer or processor to provide such branded promotional items as a condition for selling any cannabis to the retailer.
(c) Any producer, processor, or retailer or any other person asserting that the provision of branded promotional items as allowed in (a) of this subsection has resulted or is more likely than not to result in undue influence or an adverse impact on public health and safety, or is otherwise inconsistent with the criteria in (a) of this subsection may file a complaint with the state liquor and cannabis board. Upon receipt of a complaint the state liquor and cannabis board may conduct such investigation as it deems appropriate in the circumstances. If the investigation reveals the provision of branded promotional items has resulted in or is more likely than not to result in undue influence or has resulted or is more likely than not to result in an adverse impact on public health and safety or is otherwise inconsistent with (a) of this subsection the state liquor and cannabis board may issue an administrative violation notice to the producer, processor, or retailer. The recipient of the administrative violation notice may request a hearing under chapter
34.05
RCW.
(2) Nothing in this chapter prohibits:
(a) Producers or processors from listing on their internet websites information related to retailers who sell or promote their products, including direct links to the retailers' internet websites; and
(b) Retailers from listing on their internet websites information related to producers or processors whose products those retailers sell or promote, including direct links to the producers or processors' websites; or
(c) Producers, processors, and retailers from producing, jointly or together with regional, state, or local industry associations, brochures and materials promoting tourism in Washington state which contain information regarding retail licensees, producers, processors, and their products.
(3) Nothing in this chapter prohibits the performance of personal services offered from time to time by a producer or processor to retailers when the personal services are (a) conducted at a licensed premises, and (b) intended to inform, educate, or enhance customers' knowledge or experience of the manufacturer's products. The performance of personal services may include participation in events and the use of informational or educational activities at the premises of a retailer holding a license under this chapter. A producer or processor is not obligated to perform any such personal services, and a retail licensee may not require a producer or processor to conduct any personal service as a condition for selling cannabis to the retail licensee.
(4) For the purposes of this section, "nominal value" means a value of thirty dollars or less.
[
2016 sp.s. c 17 s 1
.]
RCW 69.50.587
Cannabis science task force reports
—
Board rules.
The liquor and cannabis board may adopt rules that address the findings and recommendations in the task force reports provided under *RCW 43.21A.735
.
[
2019 c 277 s 4
.]
NOTES:
*Reviser's note:
RCW 43.21A.735
expired December 31, 2022.
RCW 69.50.601
Pending proceedings.
(a) [(1)] Prosecution for any violation of law occurring prior to May 21, 1971 is not affected or abated by this chapter. If the offense being prosecuted is similar to one set out in Article IV of this chapter, then the penalties under Article IV apply if they are less than those under prior law.
(b) [(2)] Civil seizures or forfeitures and injunctive proceedings commenced prior to May 21, 1971 are not affected by this chapter.
(c) [(3)] All administrative proceedings pending under prior laws which are superseded by this chapter shall be continued and brought to a final determination in accord with the laws and rules in effect prior to May 21, 1971. Any substance controlled under prior law which is not listed within Schedules I through V, is automatically controlled without further proceedings and shall be listed in the appropriate schedule.
(d) [(4)] The commission shall initially permit persons to register who own or operate any establishment engaged in the manufacture, distribution, or dispensing of any controlled substance prior to May 21, 1971 and who are registered or licensed by the state.
(e) [(5)] This chapter applies to violations of law, seizures and forfeiture, injunctive proceedings, administrative proceedings and investigations which occur following May 21, 1971.
[
2013 c 19 s 112
;
1971 ex.s. c 308 s 69.50.601
.]
RCW 69.50.602
Continuation of rules.
Any orders and rules promulgated under any law affected by this chapter and in effect on May 21, 1971 and not in conflict with it continue in effect until modified, superseded or repealed.
[
1971 ex.s. c 308 s 69.50.602
.]
RCW 69.50.603
Uniformity of interpretation.
This chapter shall be so applied and construed as to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among those states which enact it.
[
1971 ex.s. c 308 s 69.50.603
.]
RCW 69.50.604
Short title.
This chapter may be cited as the Uniform Controlled Substances Act.
[
1971 ex.s. c 308 s 69.50.604
.]
RCW 69.50.611
State preemption.
The state of Washington fully occupies and preempts the entire field of setting penalties for violations of the controlled substances act. Cities, towns, and counties or other municipalities may enact only those laws and ordinances relating to controlled substances that are consistent with this chapter. Such local ordinances shall have the same penalties as provided for by state law. Local laws and ordinances that are inconsistent with the requirements of state law shall not be enacted and are preempted and repealed, regardless of the nature of the code, charter, or home rule status of the city, town, county, or municipality.
[
1989 c 271 s 601
.]
RCW 69.50.612
State preemption
—
Drug paraphernalia.
(1) The state of Washington hereby fully occupies and preempts the entire field of drug paraphernalia regulation within the boundaries of the state including regulation of the use, selling, giving, delivery, and possession of drug paraphernalia, except as provided in subsection (2) of this section. Cities, towns, and counties or other municipalities may enact only those laws and ordinances relating to drug paraphernalia that are specifically authorized by state law and are consistent with this chapter. Such local ordinances must have the same penalty as provided for by state law. Local laws and ordinances that are inconsistent with, more restrictive than, or exceed the requirements of state law may not be enacted and are preempted and repealed, regardless of the nature of the code, charter, or home rule status of such city, town, county, or municipality.
(2) Nothing in this chapter shall be construed to prohibit cities or counties from enacting laws or ordinances relating to the establishment or regulation of harm reduction services concerning drug paraphernalia.
[
2023 sp.s. c 1 s 8
.]
NOTES:
Effective date
—
2023 sp.s. c 1 ss 1-5, 7-11, and 41:
See note following RCW 69.50.4011
.
RCW 69.50.700
Expedited rule making.
The board must use expedited rule making under RCW 34.05.353
to replace the term "marijuana" with the term "cannabis" throughout Title 314 WAC.
[
2022 c 16 s 168
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
RCW 69.50.710
Federal law
—
"Marijuana" to refer to "cannabis."
The term "marijuana" as used under federal law generally refers to the term "cannabis" used throughout the Revised Code of Washington.
[
2022 c 16 s 169
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.