Chapter 9.50
COMMERCIAL MARIJUANA
Sections:
9.50.040 Establishment and delegation.
9.50.050 Negotiations with the State.
9.50.060 Tribal marijuana tax.
9.50.070 Producing and processing of marijuana products.
9.50.080 Purchase and sale of marijuana products.
9.50.090 Retail sales of marijuana products.
9.50.100 Licensing and background investigations.
9.50.010 Title.
This chapter shall be known as the “Chehalis Tribe’s Commercial Marijuana Ordinance.” [Res. 2020-81.]
9.50.020 Definitions.
As used in this chapter, the following words and phrases each have the designated meaning unless a different meaning is expressly provided or context clearly indicated:
“Authorization” has the same meaning as in RCW 69.51A.010.
“Business Committee” means the Chehalis Business Committee, the governing body of the Tribe.
“Commercial marijuana activity” means all planting, growing, producing, cultivating, processing, and selling marijuana, marijuana concentrates, marijuana-infused products, and usable marijuana in Indian Country in accordance with this chapter.
“Compact” means an agreement between the Tribe and the State or the LCB regarding marijuana.
“CTC” means the Chehalis Tribal Code.
“CTE” means Chehalis Tribal Enterprises.
“Designated provider” has the same meaning as in RCW 69.51A.010.
“Essential government services” means services provided by the Tribe including, but not limited to, administration, public facilities, fire, public safety, health, education, elder care, social services, sewer, water, environmental and land use, transportation, utility services, community development, and economic development.
“Indian Country” means the lands of the Tribe as defined by 19 U.S.C. Section 1151, including, without limitation, all lands over which the Tribe exercises jurisdiction, including without limitation the Chehalis Reservation and all lands held in trust or restricted fee status by the United States for the Tribe or its Tribal members.
“LCB” means the Washington State Liquor Control Board or Washington State Liquor and Cannabis Board.
“LLC” means a wholly owned limited liability company of CTE formed under the laws of the Chehalis Tribe.
“Marijuana,” “marijuana concentrates,” “marijuana-infused products,” and “usable marijuana” have the same meanings as in RCW 69.50.101 or any amendments thereto. Together, such terms are known as “marijuana products.”
“Marijuana Regulatory Commission” means the body designated by the Business Committee to regulate the activities, individuals and entities authorized under this chapter.
“Medical marijuana authorization database” has the same meaning as in RCW 69.51A.010.
“Qualifying patient” has the same meaning as in RCW 69.51A.010.
“Recognition card” has the same meaning as in RCW 69.51A.010.
“State” means the State of Washington.
“State licensee” means any entity licensed by the LCB pursuant to Chapter 69.50 RCW or Chapter 314-55 WAC, as amended.
“State tax” means the marijuana excise tax as stated in RCW 69.50.535 and the State and local sales and use tax on sales of marijuana as stated in Chapters 82.08 and 82.12 RCW, all as may be amended from time to time.
“Tribal member” means an enrolled member of the Chehalis Tribe.
“Tribe” means the Confederated Tribes of the Chehalis Reservation. [Res. 2020-81.]
9.50.030 Findings.
A. Historically, the production, possession, delivery, distribution, and sale of marijuana have been illegal across the United States and in Indian Country. In 2012, the voters of Washington State passed Initiative 502 (“I-502”) which sets forth a system allowing for commercial marijuana activity.
B. While the Federal Controlled Substances Act continues to designate marijuana as a Schedule I substance, on August 29, 2013, the United States Department of Justice issued a memorandum to all United States attorneys setting forth guidance regarding marijuana enforcement. In that memo, James M. Cole, Deputy Attorney General, set forth eight enforcement priorities of particular importance to the Federal government, including: preventing the distribution of marijuana to minors; preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; preventing the diversion of marijuana from states where it is legal under State law in some form to other states; preventing State-authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; preventing violence and the use of firearms in the cultivation and distribution of marijuana; preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and preventing marijuana possession or use on Federal property. The memo goes on to indicate that the focus of Federal law enforcement resources and efforts will be on those persons whose conduct interferes with the stated priorities and that State and local governments should provide sufficiently robust regulatory and enforcement systems to protect against these harms.
C. On October 28, 2014, the United States Department of Justice issued another memorandum to all United States attorneys providing a policy statement regarding marijuana issues in Indian Country. In that memo, Monty Wilkinson, Director, acknowledged that “[t]he eight priorities in the Cole Memorandum will guide United States Attorneys’ marijuana enforcement efforts in Indian Country, including in the event that sovereign Indian Nations seek to legalize the cultivation or use of marijuana in Indian Country.” That memo effectively treats tribal governments the same as State governments in the decision to legalize marijuana.
1. Subsequently, the above letter and memorandum were withdrawn, but after due consultation with the U.S. Attorney for the Western District of Washington at Seattle, the Tribe has determined that moving forward with this chapter and authorization falls within the sovereign authority of the Tribe.
D. After serious deliberation, the Tribe has determined that present day circumstances, including the State’s legalization of marijuana, make a complete ban of marijuana within Indian Country ineffective and unrealistic.
E. The Tribe also finds that, particularly considering the commercial marijuana activity occurring throughout the State, raising funds through the sale of marijuana in Indian Country is a useful economic development tool.
F. The Tribe therefore enacts this chapter in an effort to strictly regulate and control the production, distribution, sale, and use of marijuana in Indian Country, consistent with the Tribe’s responsibility to further the health, safety, and general welfare of the Tribe and its visitors to Indian Country. [Res. 2020-81.]
9.50.040 Establishment and delegation.
The Business Committee does hereby delegate the sole authority to locate, manage, and operate with respect to all commercial marijuana activity on behalf of the Tribe to CTE and/or its LLCs, subject to oversight by the Business Committee and the Marijuana Regulatory Commission of the Tribe (“Commission”).
A. If, as and when the compact, as described below, allows and the Business Committee reviews and approves, then the Business Committee may authorize individual Tribal members to locate, manage and operate commercial marijuana activity on the Original Chehalis Reservation, subject to such conditions and regulations as the Business Committee and/or the Commission shall adopt.
B. The Commission shall consist of three members. One member shall be an elected official of the Business Committee and the other two members shall be appointed by the Business Committee. The Business Committee member of the Commission shall be the Chairman of the Commission with full authority to vote on matters of the Commission and regulations under this chapter.
C. The term of the Business Committee member of the Commission shall be coextensive with the term that individual serves on the Business Committee. The term of the other two members of the Commission shall be two years.
D. The Commission shall develop regulations subject to the approval of the Business Committee.
E. The Commission shall report to the Business Committee not less than quarterly. [Res. 2020-81.]
9.50.050 Negotiations with the State.
The Business Committee or its designees shall negotiate a compact with the State for all commercial marijuana activity within Indian Country. [Res. 2020-81.]
9.50.060 Tribal marijuana tax.
A. There is a Tribal marijuana tax equal to 100 percent of the State tax then in effect levied on all commercial marijuana activity (“Tribal marijuana tax”).
B. The Tribal marijuana tax must be remitted to the Tribe on a quarterly basis.
1. Failure to timely remit the Tribal marijuana tax may result in the revocation of the right to engage in commercial marijuana activities.
C. The Tribe will use the proceeds of such tax for essential government services, including but not limited to land acquisition.
D. No other tax besides the Tribal marijuana tax may be imposed on commercial marijuana activity unless determined by the Business Committee.
E. The Tribe may allow an exemption from the Tribal marijuana tax in the following circumstances:
1. For sales on marijuana grown, produced, or processed within Indian Country;
2. For sales to the Tribe, CTE, or Tribal members that occur in Indian Country;
3. For activities that would otherwise be exempt under State or Federal law; and
4. For medical marijuana products used in the course of medical treatments by a clinic, hospital, or similar facility owned and operated by the Tribe within its Indian Country.
F. The Business Committee has the authority to determine which exemptions may be implemented. [Res. 2020-81.]
9.50.070 Producing and processing of marijuana products.
A. Buffers. No producing or processing of marijuana products may occur within 1,000 feet of a school or playground or Tribal housing.
B. Minors. No persons under 21 years of age may enter or be employed at a producing or processing facility.
C. Producing. Production facilities may be located indoors or outdoors; provided, that they are fully secure, have physical barriers, and meet safety and security protocols as outlined more specifically by CTE policy and the Tribe’s zoning requirements.
D. Processing. All processing facilities must meet the same standards as would be required for food handling under Indian Health Services requirements.
E. Testing. Before sale to any retailer, marijuana products must be tested by a Tribe- or State-licensed lab that follows quality assurance testing protocols at least as restrictive as State law.
F. Packaging and Labeling. All marijuana products must be packaged and labeled in accordance with CTE and/or Business Committee policy. Packaging and labeling designed to be especially appealing to children are prohibited. All marijuana-infused products meant to be eaten, swallowed, or inhaled must be packaged in childproof packaging.
G. Sales to State Licensees. All marijuana products sold by CTE to a State licensee must meet the testing, packaging, and labeling requirements otherwise required under State law. Such sales must be input into the State’s traceability system.
H. Conditions of Sale. CTE will develop policies and procedures governing records to be maintained, security requirements, maximum quantities on premises, transport and delivery, and other matters related to the production and processing of marijuana products. CTE will provide such policies and procedures to the Business Committee upon request and at least annually.
I. Enforcement of the provisions of this section shall be the responsibility of the Commission.
J. CTE and/or any individual Tribal member authorized by the Business Committee shall provide reports concerning compliance with the terms of this chapter to the Commission under subsection I of this section.
K. Notwithstanding anything herein to the contrary, all entities and/or individuals authorized to either be a producer/processor and/or a retailer under this chapter shall obtain and maintain a license from the Tribe for each function it/he/she/ they perform under the terms of this chapter. [Res. 2020-81.]
9.50.080 Purchase and sale of marijuana products.
A. CTE may purchase marijuana products only from other compacted tribes or State licensees.
1. If any individual Tribal members are authorized to engage in commercial marijuana activity, such individual(s) shall be subject to all of the requirements that apply to CTE and be monitored and regulated as set forth in this chapter.
2. Any individual Tribal member authorized to engage in commercial marijuana activity shall only engage in such activity on individual trust land within the exterior boundaries of the original/Oakville portion of the Reservation.
3. Notwithstanding anything herein to the contrary, there shall be not more than one individual Tribal member commercial marijuana activity located on the Thurston County side of the original/Oakville Reservation and one individual Tribal member commercial marijuana activity located on the Grays Harbor County side of the original/Oakville Reservation.
B. All marijuana products purchased from State licensees will be inputted into the State’s tracking system within 24 hours of delivery. [Res. 2020-81.]
9.50.090 Retail sales of marijuana products.
A. Buffers. No retail locations may be located within 1,000 feet of a school or playground or Tribal housing.
B. Minors. No persons under 21 years of age may enter or be employed at a retail facility, except that a qualifying patient between 18 and 21 years of age may enter a retail facility if (1) the qualifying patient enters the retail facility for the purpose of having his or her authorization entered into the medical marijuana authorization database or (2) the qualifying patient has already been entered into the medical marijuana authorization database and holds a valid recognition card and seeks to purchase products for his or her personal medical use.
1. Acceptable identification for proof of age includes: driver’s license, ID card, or instruction permit issued by any U.S. state or Canadian province; Washington temporary driver’s license; Tribal enrollment card; passport from any nation; U.S. military ID; or Merchant Marine card issued by the U.S. Coast Guard.
2. The Tribe may conduct its own compliance checks in Indian Country using minors aged 18, 19, or 20 through the Chehalis Tribal Police Department or other authorized agency in accordance with Tribal regulations and policies. No criminal action may be taken against any minor who purchases marijuana as part of such a compliance check.
C. Advertising. Any advertising located outside of Indian Country must comply with Chapter 69.50 RCW and Chapter 314-55 WAC.
D. Maximum Sales. No retail location may sell more than three ounces of usable marijuana, 48 ounces of marijuana-infused product in solid form, 216 ounces of marijuana-infused product in liquid form, or 21 grams of marijuana concentrate to a qualifying patient or designated provider who has been entered into the medical marijuana authorization database and holds a valid recognition card pursuant to and in compliance with State law, and who is 18 years of age or older.
E. Conditions of Sale. CTE must develop policies and procedures governing records to be maintained, security requirements, advertising, maximum quantities on premises, transport and delivery, and other matters related to retail sales. CTE will provide such policies and procedures to the Business Committee upon request and at least annually.
F. All retail operations must be on trust land. [Res. 2020-81.]
9.50.100 Licensing and background investigations.
A. CTE shall be licensed and any LLC established by CTE under the Tribe’s limited liability ordinance shall be licensed as well.
B. Tribal Member Businesses. No such licenses for any purpose will be issued at this time.
C. Employees of CTE. Only the manager, as that term is defined in this chapter, who will “exercise control” over CTE’s marijuana activities will be required to undergo a background investigation before he or she is employed by CTE for the purposes of commercial marijuana activity. No such manager may have been convicted of, or entered a plea of guilty or no contest to, any of the following criminal offenses:
1. Any felony in the preceding 10 years; and
2. Any crime involving dishonesty within the preceding 10 years, including, not exclusively: fraud; forgery; possession of a forgery device; theft; counterfeiting; embezzlement; making a false representation; obstruction of justice; intent to defraud; bribery; mail fraud; perjury; willful tax evasion; attempt, aiding and abetting, being an accessory, and/or conspiracy. [Res. 2020-81.]
9.50.110 Indemnity.
A. The Tribe indemnifies any Business Committee member, board member, manager, or employee of the Tribe, CTE or LLC made party to a proceeding because of their role in commercial marijuana activity against personal liability incurred in a proceeding if:
1. The individual acted in his or her official capacity;
2. The individual acted in good faith;
3. The individual believed his or her conduct was in the best interests of the Tribe; and
4. The individual acted in accordance with the laws, regulations, and policies of the Tribe, the Commission, the Business Committee, and/or CTE.
B. “Proceeding” means any threatened, pending, or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative and whether formal or informal, related to the production, processing, or sale of marijuana.
C. “Liability” means the obligation to pay a judgment, settlement, penalty, or fine, or reasonable expenses incurred with respect to a proceeding. [Res. 2020-81.]
9.50.120 Medical marijuana.
A. CTE is hereby authorized to produce, process, and sell marijuana for medical use to qualifying patients and designated providers in accordance with the provisions of this chapter.
B. The Business Committee shall negotiate an agreement with the Washington State Department of Health related to the entry of data into and use of the medical marijuana authorization database.
C. CTE is hereby authorized to accept valid authorizations and enter the data of qualifying patients and designated providers into the medical marijuana authorization database.
1. The medical marijuana authorization database is only to be accessed by CTE employees with proper training in accordance with CTE policies and procedures. CTE must provide such policies and procedures to the Business Committee upon request and at least annually.
2. The medical marijuana authorization database may also be accessed by Chehalis Tribal Police engaged in a bona fide specific investigation of a suspected marijuana-related activity that may be illegal under Tribal or State law to confirm the validity of the recognition card of a qualifying patient or designated provider.
3. Contents of the medical marijuana authorization database are considered confidential and may not be reviewed or disclosed except as otherwise stated in this section. Penalties for improper disclosure of information from the medical marijuana authorization database shall be set forth in Business Committee approved policies. [Res. 2020-81.]
9.50.130 Compliance.
The Chehalis Tribal Police will conduct compliance checks consistent with the checklist authorized by the Business Committee and/or the Commission. In the event of a finding of noncompliance, the Chehalis Tribal Police will document the event on the checklist and submit the same to the Business Committee for review and a determination of action, if any. [Res. 2020-81.]