1. Drug and Alcohol Information I-1183 and I-502: Updates, Impacts and Strategies for Prevention Mary B. Segawa, M.S. WA State Liquor Control Board October 7-8, 2014

2. Overview Today’s Presentation Disclaimer I-1183 changes and impact I-502 key elements Status of implementation of I-502 Issues and challenges Rules highlights and challenges Data and trends Staying informed 2

3. Disclaimer Today’s presentation is designed to inform this audience of the current status of the implementation of Initiative 502 as well as to provide updates regarding the implementation of I-1183. The views expressed today represent the speaker’s summary of these current events and are subject to change based on the on-going work of the WA State Liquor Control Board. 3

4. I-1183 Changes / Impact Retail Environment Access / Availability – Increase in liquor outlets – Increase in hours of sale – Police and anecdotal reports of shoplifting Enforcement – Capacity – Compliance checks Price / Products – Product approval – Mixed impact on price 4

5. 5 I-1183 Changes / Impact Retail Environment Advertising – Product placement – Circulars – Complimentary products

6. Initiative 502 – Marijuana Legalization Washington’s Legalization at a Glance November 6, 2012 Drafted by ACLU Drug Policy Director Alison Holcomb WSLCB Charged With: Drafting rules Licensing applicants Enforcing the law at licensed locations Goals: Public safety and protecting children Open and transparent system Tightly regulated and controlled market Collect revenue for the State 6

7. I-502 Key Elements Creates system of growing, processing and retailing marijuana. Legalized system for adults age 21 and older Decriminalizes possession of: – 1 ounce of useable – 16 ounces in solid form – 72 ounces in liquid form [7 grams of extract – added in the 2014 legislative session] Creates three-tier system similar to alcohol – Producer license (grower) – Processor license (prepares for retail) – Retail license (operates marijuana only stores) 7

8. Key Elements (continued) Washington’s system… Taxation – Imposes 25% tax at all three license levels – B&O and local sales tax also apply Public Safety and Education – Establishes a THC threshold for DUI – 5 nanograms – Limits on store locations, advertising and number of outlets – Earmarks revenue for healthcare, research and education Timing – December 1, 2013 deadline to have rules and regulations in place 8

9. 9 Funding Disbursements Dept. of Social and Health Services Youth and young adult surveys$ 125,000 Contract with WSIPP for cost-benefit evaluation$ 50,000 Univ. of Washington Alcohol & Drug Abuse Institute Web-based public education$ 5,000 (www.LearnAboutMarijuanaWA.org)www.LearnAboutMarijuanaWA.org Liquor Control Board Administration of the Initiative$1,250,000

10. 10 Funding Disbursements (Qtrly) Of the remaining funds: DSHSPrevention and reduction of substance abuse15 percent DOHMarijuana education & public health program10 percent UWResearch on short- and long-term effects.6 percent WSU Research on short- and long-term effects.4 percent Basic Health Trust Fund Account50 percent WA HCAContracts with community health centers 5 percent OSPIDrop-out prevention.3 percent General FundRemainder

11. Law and Rules The Difference Between I-502 Laws and Rules Laws – Enacted by Legislature and signed by Governor – Enacted by voters (initiatives and referendums) Rules – Detailed regulations necessary to implement the law – Clarifies what is allowed or not allowed under law – Created by state agency, board (WSLCB) or commission – Cannot change the law in any way – Public and transparent process – Once final, they provide the structure for participation in the system 11

12. 30 Day Window To Apply State Residency Requirement – 3 months Background Checks License Location – 1,000 Foot Buffer License Limits 12 Rules Highlights: License Requirements

13. Rules Highlights: Public Safety Secure Producer Structures Traceability Local Authority Objections Security and Safeguards Alarm and surveillance video camera requirements Strict transportation and record keeping requirements Hours of operation limited to 8:00 a.m. to 12:00 a.m. 13

14. Rules Highlights: Public Safety Violation Guidelines $1,000 administrative penalty for minors frequenting Sets strict tiered system of violation record over a three year period. Example: – Group 1 public safety: First violation: 10 day suspension or $2,500 Second violation: 30 day suspension Third violation: license cancellation Furnishing marijuana to a minor remains a felony offense 14

15. Rules Highlights: Public Safety No Minors Allowed on Any Licensed Premise Location Restrictions of Retail Stores LCB to provide advance notice to local authority Number of retail stores capped at 334 statewide Packaging and Labeling Requirements Maximum THC per serving and amount per package Warnings Lab Tested and Approved Behind the Counter Storage 15

16. Rules Highlights: Public Safety Further Restrictions on Edible Products 16

17. Rules Highlights: Public Safety Advertising Restrictions 1,000 foot rule May not contain statements or illustrations that: – Are false or misleading – Promote overconsumption – Represents that its use has curative or therapeutic effects – Depict a child or may be appealing to children Must contain two statements: “This product has intoxicating effects and may be habit forming.” “Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under the influence of this drug.” 17

18. Potential Issues and Challenges 18 Federal uncertainty Doesn’t change federal law. Focus on eight points of emphasis including youth access and public safety Minimizing illicit market Banking

19. Adult vs. Medical Market 19 Adult (Recreational)Medical Taxed and regulatedUntaxed, largely unregulated Possession of 1 ounce useable 16 ounces solid 72 ounces liquid 7 grams extract Possession of 24 ounces of useable Must be 21 years of age or olderMay be authorized by anyone 18 and over, and under 18 with parent permission No home growsAllows personal grows, collective gardens Cannot be used in view of the publicNo public consumption

20. Civil/Criminal Laws 20 Infraction/CrimePenalty Possession above legal limit More than 1 oz. up to 40 grams More than 40 grams With intent to distribute Misdemeanor ( 24 hrs – 90 days, max $1,000) Felony (5 years, max $10,000) Opening or consuming marijuana or marijuana product in public view District Ct: Class 3 civil infraction (avg. $127 w/fees); Municipal Ct: Varies Cultivation - any amountFelony (5 years, max $10,000) Sale or distribution Any amount To a minor at least 3 years younger Felony (5 years, max $10,000) Felony (10 years, max $10,000) Cultivation, sale or distribution within 1000’ of school, public park, etc. Punishable by double the fines and imprisonment State and federal enhancements exist for locations such as school zones and drug-free zones.

21. Alcohol Use Trends 21 SOURCE: Washington State Healthy Youth Survey, 2012

22. Alcohol Use Trends 22 SOURCE: Washington State Healthy Youth Survey, 2012

23. Alcohol Use Trends 23 SOURCE: Washington State Healthy Youth Survey, 2012

24. 24 Preliminary Results – Impact Study Researchers: Dr. Julia Dilley and Dr. Linda Becker Youth (2012 WA Healthy Youth Survey) No impact on trend of declining use by youth Modest increase in number of days drinking alcohol in the past month among high school boys – 12 th grade boys increased from 4.2 to 4.5 days per month from 2010 to 2012 Decrease in perceived “wrongness” of youth drinking alcohol – E.g. Only 28 percent of 8 th graders in 2012 believe most other students think it is very wrong for someone their age to use alcohol compared to 39 percent in 2010

25. 25 SOURCE: Washington State Healthy Youth Survey, 2012 Preliminary Results – Impact Study Youth Increased ER visits among underage youth (under 21) (Medicaid) Estimated 331 excess Single Vehicle Nighttime Crashes* among younger male drivers during 9 months after implementation. * Proxy for impaired driving

26. Marijuana Use Trends 26 Smoked marijuana/hashish during the past 30 days? (Benton/Franklin Counties) Q. SOURCE: Washington State Healthy Youth Survey, 2012 12 th grade: Significant difference from State rate

27. Marijuana Use Trends 27 SOURCE: Washington State Healthy Youth Survey, 2012 Q. How much do you think people risk harming themselves if they: Use marijuana regularly (at least once or twice a week)? (State)

28. Marijuana Use Frequency 28 Of the Washington State 10 th graders who used marijuana in the previous 30 days, 33% used on 10 or more days SOURCE: Washington State Healthy Youth Survey, 2012 6 to 9 days 11.5% 3 to 5 days 19.7% 1 to 2 days 35.6% 10 or more days 33.2%

29. Roles of Other State Agencies 29 DSHS Division of Behavioral Health & Recovery Youth and young adult surveys Youth prevention and treatment Department of Health Media-based education campaigns for adults and youth Local grants Public health hotline Washington State Institute for Public Policy Cost-benefit evaluation

30. Preliminary Evaluation Plans 30 Examining impacts of I-502 on: Public health Usage rates Public safety and criminal justice Economy State and local agencies Reports due to the legislature in September 2015, 2017, 2022, and 2032

31. 31 How Citizens Stay Connected I-502 Webpage. www.lcb.wa.govwww.lcb.wa.gov Factsheets FAQs Listserv News coverage

32. Additional Information University of Washington’s Alcohol & Drug Abuse Institute (ADAI) website – Learn about Marijuana – Science-based information for the public. http://www.LearnAboutMarijuanaWA.org http://www.LearnAboutMarijuanaWA.org DSHS, Division of Behavioral Health and Recovery – http://www.TheAthenaForum.org http://www.TheAthenaForum.org – http://www.dshs.wa.gov/DBHR/ http://www.dshs.wa.gov/DBHR/ National Institute on Drug Abuse – www.drugabuse.gov www.drugabuse.gov WA State Healthy Youth Survey www.askhys.net 32

33. Thank you! 33 Mary Segawa, MS WA State Liquor Control Board Mary.segawa@lcb.wa.gov 360-664-1771