Official Text and Analysis.

Modifies marijuana provisions with regard to privileges for research licenses, local authority notifications, the retail licensing merit-based application process, transfers of plants and seeds, licensing agreements and contracts, advertising, and jurisdictional requirements.

Clarifies that licensed marijuana processors may only package and label products for sale to retailers. Eliminates the merit-based application process to obtain a retail marijuana license. Provides tribes and port authorities with the same notices regarding marijuana business applications as given to cities, towns, and counties. Extends the Liquor and Cannabis Board's (LCB) general immunity from personal liability to include the board's duties relating to marijuana. Allows licensed marijuana businesses to enter into licensing agreements or consulting contracts for goods or services related to a marijuana business. Requires at least 50 percent of a marijuana business ownership interests to live in the state. Out-of-state owners must be U.S. citizens. Authorizes a licensed processor to sell immature marijuana plants, clones, and seeds to marijuana researchers, cooperatives, and qualified patients and providers.

Restores the current law allowing a marijuana processor to process, package, and label marijuana products for sale at wholesale to other marijuana processors. Strikes the new provisions regarding out-of-state ownership. Authorizes an industrial hemp research program to dispose of the industrial hemp by-product and waste material, after the research has been conducted, by selling these materials to a licensed marijuana processor.

Prohibits marijuana licensees from using advertising that is targeted to youth and from using objects or characters that are appealing to children. Places additional restrictions on marijuana advertising in public places and bans the use of commercial mascots. Increases the allowable size of the signs at a retail marijuana business to a maximum of 2,400 square inches. Allows billboards for the sole purpose of providing directional information to a licensed marijuana retailer's store.

Increases from three months to nine months the grace period during which the board may not cause the forfeiture of a retail marijuana license held by a licensee following the effective date of the act. Prohibits the board from requiring the forfeiture of a retail marijuana license if the reason for the licensees failure to open a fully operational business is the result of legal or regulatory actions by the city, town, or county that have the effect of preventing the licensee from opening the business.

Strikes provisions making it lawful for adults to share specified quantities of marijuana and marijuana products among themselves provided such sharing is done for noncommercial purposes and does not involve financial consideration of any kind..

Prohibits the use of a billboard for the advertising or promotion of a retail marijuana business or any marijuana-related product after July 1, 2018.

Establishes that processing industrial hemp for topical use, oral consumption, or inhalation by humans is authorized only to the extent such processing is in compliance with the provisions of the federal Agricultural Act of 2014 that authorize state agricultural pilot programs for industrial hemp research (in addition to the requirement that such processing first be authorized by the Washington State Department of Agriculture (WSDA)). (2) Requires a licensed marijuana processor to obtain an industrial hemp license from the WSDA in order to possess or process industrial hemp. (3) Provides that the rules adopted by the Liquor and Cannabis Board or the Department of Health may not prohibit the processing or sale of any specific type of marijuana product because such specific type of marijuana product is derived, in whole or in part, from industrial hemp.

Senate refuses to concur in House amendments.