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2 <br /> Washington State <br /> ( ! ] Uquo Co i rol Board <br /> Proposed Rules Highlights <br /> September 4, 2013 <br /> LCB Rulemaking Objective <br /> o Creating a tightly controlled and regulated marijuana market; <br /> o Including strict controls to prevent diversion, illegal sales, and sales to minors; and <br /> o Providing reasonable access to products to mitigate the illicit market. <br /> LCB Role and Responsibility <br /> o Ensuring public safety is the top priority; <br /> o Creating a three-tier regulatory system for marijuana; <br /> o Creating licenses for producers, processors, and retailers; <br /> o Enforcing laws and rules pertaining to licensees; and <br /> o Collecting and distributing taxes. <br /> Timeline <br /> December 6,2012 Effective date of new law <br /> September 4,2013 File Supplemental CR 102 with revised proposed rules <br /> October 9,2013 Public hearing(s)on proposed rules (time and location TBD) <br /> October 16,2013 Board adopts or rejects proposed rules(CR 103) <br /> November 16,2013 Rules become effective <br /> November 18,2013 Begin accepting applications for all three licenses (30-day window) <br /> December 1, 2013 Deadline for rules to be complete(as mandated by law) <br /> December 18, 2013 30-day window closes for producer, processor and retailer license applications <br /> Proposed Rules Highlights <br /> License Requirements <br /> O 30-day Window <br /> o The LCB will open registration for all license types for a 30-calendar-day window(November 18, 2013) <br /> o LCB may extend the time or reopen application window at its discretion <br /> • State Residency Requirement <br /> o 1-502 requires a three month state residency requirement(all license structure types) <br /> a Background Checks • <br /> o Personal criminal history completed by applicant. Risk of license forfeiture if incomplete or incorrect. <br /> o Fingerprinting of all potential licensees <br /> o Background checks of license applicants and financiers <br /> o Point System <br /> o The LCB will apply a disqualifying point system similar to liquor <br /> o All applicants must disclose all arrests and/or convictions <br /> o Non-disclosure of arrests regardless of conviction will result in point accumulation <br /> September 4,2013 <br /> 10 <br />