Drug and Alcohol InformationI-1183 and I-502:

Updates, Impacts and Strategies for Prevention

Mary B. Segawa, M.S.WA State Liquor Control Board

October 7-8, 2014

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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

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DisclaimerToday’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.

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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

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I-1183 Changes / ImpactRetail Environment• Advertising

– Product placement– Circulars– Complimentary products

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Initiative 502 – Marijuana LegalizationWashington’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

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I-502 Key ElementsCreates 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)

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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

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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)

Liquor Control Board

Administration of the Initiative $1,250,000

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Funding Disbursements (Qtrly)

Of the remaining funds:

DSHS Prevention and reduction of substance abuse 15 percent

DOH Marijuana education & public health program 10 percent

UW Research on short- and long-term effects .6 percent

WSU Research on short- and long-term effects .4 percent

Basic Health Trust Fund Account 50 percent

WA HCA Contracts with community health centers 5 percent

OSPI Drop-out prevention .3 percent

General Fund Remainder

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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

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30 Day Window To Apply

State Residency Requirement – 3 months

Background Checks

License Location – 1,000 Foot Buffer

License Limits

Rules Highlights: LicenseRequirements

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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.

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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

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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 ApprovedBehind the Counter Storage

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Rules Highlights: Public Safety

Further Restrictions on Edible Products

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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.”

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Potential Issues and Challenges

Federal uncertainty• Doesn’t change federal law.• Focus on eight points of emphasis including youth access and public safety

Minimizing illicit market

Banking

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Adult vs. Medical MarketAdult (Recreational) Medical

Taxed and regulated Untaxed, 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 older May be authorized by anyone 18 and over, and under 18 with parent permission

No home grows Allows personal grows, collective gardens

Cannot be used in view of the public No public consumption

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Civil/Criminal LawsInfraction/Crime Penalty

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)• 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 amount Felony (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.

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Alcohol Use Trends

SOURCE: Washington State Healthy Youth Survey, 2012

6th 8th 10th 12th

Local 4 14 26 35

State 3 12 23 36

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

Past 30 day use of alcohol – Benton/Franklin Counties

% o

f Stu

dent

s

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Alcohol Use Trends

SOURCE: Washington State Healthy Youth Survey, 2012

6th 8th 10th 12th

Benton/Franklin 4 9 16 22

State 2 7 14 22

2.5

7.5

12.5

17.5

22.5

Binge Drinking - Benton/Franklin Counties

% o

f Stu

dent

s

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Alcohol Use Trends

SOURCE: Washington State Healthy Youth Survey, 2012

Bought it from a store

From an older sibling

From friends or at

a party

Gave money to someone

At home with or without

permission

At a family celebration

Some other way

8th 6 9 39 9 39 12 17

10th 7 11 52 19 32 10 16

12th 7 9 60 27 26 10 14

5152535455565

Source for Those Who Got AlcoholWashington State

% o

f Stu

dent

s

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Preliminary Results – Impact StudyResearchers: 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– 12th 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 8th 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

25SOURCE: 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

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Marijuana Use TrendsSmoked marijuana/hashish during the past 30 days? (Benton/Franklin Counties)Q

.

SOURCE: Washington State Healthy Youth Survey, 2012

6th 8th 10th 12th

Local 1 11 21 24

State 1 9 19 27

2.5

7.5

12.5

17.5

22.5

27.5

12th grade: Significant difference from State rate

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Marijuana Use Trends

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)

0%

20%

40%

60%

80%

100%

2002 2004 2006 2008 2010 2012

8th Grade 10th Grade 12th Grade

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Marijuana Use Frequency

Of the Washington State 10th 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 days11.5%

3 to 5 days19.7%

1 to 2 days35.6%

10 or more days33.2%

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Roles of Other State Agencies

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

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Preliminary Evaluation Plans

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

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How Citizens Stay Connected• I-502 Webpage. www.lcb.wa.gov

• Factsheets • FAQs

• Listserv • News coverage

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

• DSHS, Division of Behavioral Health and Recovery– http://www.TheAthenaForum.org – http://www.dshs.wa.gov/DBHR/

• National Institute on Drug Abuse– www.drugabuse.gov

• WA State Healthy Youth Survey• www.askhys.net 32

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Thank you!

Mary Segawa, MSWA State Liquor Control Board

Mary.segawa@lcb.wa.gov360-664-1771