Cannabis/dept of agriculture

AN ACT Relating to transferring the licensing and regulating of 1
the production, processing, and testing of cannabis products from the 2
Washington state liquor and cannabis board to the department of 3
agriculture; amending RCW 69.50.101, 69.50.325, 69.50.326, 69.50.331, 4
69.50.334, 69.50.335, 69.50.339, 69.50.342, 69.50.345, 69.50.348, 5
69.50.351, 69.50.363, 69.50.366, 69.50.372, 69.50.395, 69.50.530, 6
69.50.540, 69.50.564, 69.50.565, 69.50.580, and 69.50.585; adding a 7
new section to chapter 69.50 RCW; providing an effective date; and 8
declaring an emergency. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:10
NEW SECTION. Sec. 1. A new section is added to chapter 69.50 11
RCW to read as follows: 12
(1) All powers, duties, and functions of the board relating to 13
the licensing and regulating of the production, processing, and 14
testing of cannabis concentrates, useable cannabis, and cannabis-15
infused products are transferred to the department of agriculture. 16
All references to the board or the liquor and cannabis board in the 17
Revised Code of Washington shall be construed to mean the director or 18
the department of agriculture when referring to the functions 19
transferred in this section. 20
H-0157.1
HOUSE BILL 1067
State of Washington 69th Legislature 2025 Regular Session
By Representatives Reeves, Morgan, Wylie, and Hill
Prefiled 12/13/24. Read first time 01/13/25. Referred to Committee
on Consumer Protection & Business.
p. 1 HB 1067
(2)(a) All reports, documents, surveys, books, records, files, 1
papers, or written material in the possession of the board pertaining 2
to the powers, functions, and duties transferred shall be delivered 3
to the custody of the department of agriculture. All cabinets, 4
furniture, office equipment, software, database, motor vehicles, and 5
other tangible property employed by the board in carrying out the 6
powers, functions, and duties transferred shall be made available to 7
the department of agriculture. 8
(b) Any appropriations made to the board for carrying out the 9
powers, functions, and duties transferred shall, on July 1, 2026, be 10
transferred and credited to the department of agriculture.11
(c) Whenever any question arises as to the transfer of any funds, 12
books, documents, records, papers, files, software, database, 13
equipment, or other tangible property used or held in the exercise of 14
the powers and the performance of the duties and functions 15
transferred, the director of the office of financial management shall 16
make a determination as to the proper allocation and certify the same 17
to the state agencies concerned. 18
(3) All rules and all pending business before the board 19
pertaining to the powers, functions, and duties transferred shall be 20
continued and acted upon by the department of agriculture. All 21
existing contracts and obligations shall remain in full force and 22
shall be performed by the department of agriculture.23
(4) The transfer of the powers, duties, and functions of the 24
board does not affect the validity of any act performed before July 25
1, 2026. 26
(5) If apportionments of budgeted funds are required because of 27
the transfers directed by this section, the director of the office of 28
financial management shall certify the apportionments to the agencies 29
affected, the state auditor, and the state treasurer. Each of these 30
shall make the appropriate transfer and adjustments in funds and 31
appropriation. 32
Sec. 2. RCW 69.50.101 and 2024 c 62 s 17 are each amended to 33
read as follows: 34
The definitions in this section apply throughout this chapter 35
unless the context clearly requires otherwise. 36
(1) "Administer" means to apply a controlled substance, whether 37
by injection, inhalation, ingestion, or any other means, directly to 38
the body of a patient or research subject by: 39
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(a) a practitioner authorized to prescribe (or, by the 1
practitioner's authorized agent); or 2
(b) the patient or research subject at the direction and in the 3
presence of the practitioner. 4
(2) "Agent" means an authorized person who acts on behalf of or 5
at the direction of a manufacturer, distributor, or dispenser. It 6
does not include a common or contract carrier, public 7
warehouseperson, or employee of the carrier or warehouseperson.8
(3) "Board" means the Washington state liquor and cannabis board.9
(4) "Cannabis" means all parts of the plant Cannabis, whether 10
growing or not, with a THC concentration greater than 0.3 percent on 11
a dry weight basis during the growing cycle through harvest and 12
usable cannabis. "Cannabis" does not include hemp or industrial hemp 13
as defined in RCW 15.140.020, or seeds used for licensed hemp 14
production under chapter 15.140 RCW. 15
(5) "Cannabis concentrates" means products consisting wholly or 16
in part of the resin extracted from any part of the plant Cannabis 17
and having a THC concentration greater than ten percent.18
(6) "Cannabis processor" means a person licensed by the board to 19
process cannabis into cannabis concentrates, useable cannabis, and 20
cannabis-infused products, package and label cannabis concentrates, 21
useable cannabis, and cannabis-infused products for sale in retail 22
outlets, and sell cannabis concentrates, useable cannabis, and 23
cannabis-infused products at wholesale to cannabis retailers.24
(7) "Cannabis producer" means a person licensed by the board to 25
produce and sell cannabis at wholesale to cannabis processors and 26
other cannabis producers. 27
(8)(a) "Cannabis products" means useable cannabis, cannabis 28
concentrates, and cannabis-infused products as defined in this 29
section, including any product intended to be consumed or absorbed 30
inside the body by any means including inhalation, ingestion, or 31
insertion, with any detectable amount of THC. 32
(b) "Cannabis products" also means any product containing only 33
THC content. 34
(c) "Cannabis products" does not include cannabis health and 35
beauty aids as defined in RCW 69.50.575 or products approved by the 36
United States food and drug administration. 37
(9) "Cannabis researcher" means a person licensed by the board to 38
produce, process, and possess cannabis for the purposes of conducting 39
research on cannabis and cannabis-derived drug products.40
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(10) "Cannabis retailer" means a person licensed by the board to 1
sell cannabis concentrates, useable cannabis, and cannabis-infused 2
products in a retail outlet. 3
(11) "Cannabis-infused products" means products that contain 4
cannabis or cannabis extracts, are intended for human use, are 5
derived from cannabis as defined in subsection (4) of this section, 6
and have a THC concentration no greater than ten percent. The term 7
"cannabis-infused products" does not include either useable cannabis 8
or cannabis concentrates. 9
(12) "CBD concentration" has the meaning provided in RCW 10
69.51A.010. 11
(13) "CBD product" means any product containing or consisting of 12
cannabidiol. 13
(14) "Commission" means the pharmacy quality assurance 14
commission. 15
(15) "Controlled substance" means a drug, substance, or immediate 16
precursor included in Schedules I through V as set forth in federal 17
or state laws, or federal or commission rules, but does not include 18
hemp or industrial hemp as defined in RCW 15.140.020.19
(16)(a) "Controlled substance analog" means a substance the 20
chemical structure of which is substantially similar to the chemical 21
structure of a controlled substance in Schedule I or II and:22
(i) that has a stimulant, depressant, or hallucinogenic effect on 23
the central nervous system substantially similar to the stimulant, 24
depressant, or hallucinogenic effect on the central nervous system of 25
a controlled substance included in Schedule I or II; or26
(ii) with respect to a particular individual, that the individual 27
represents or intends to have a stimulant, depressant, or 28
hallucinogenic effect on the central nervous system substantially 29
similar to the stimulant, depressant, or hallucinogenic effect on the 30
central nervous system of a controlled substance included in Schedule 31
I or II. 32
(b) The term does not include: 33
(i) a controlled substance; 34
(ii) a substance for which there is an approved new drug 35
application; 36
(iii) a substance with respect to which an exemption is in effect 37
for investigational use by a particular person under Section 505 of 38
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 39
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chapter 69.77 RCW to the extent conduct with respect to the substance 1
is pursuant to the exemption; or 2
(iv) any substance to the extent not intended for human 3
consumption before an exemption takes effect with respect to the 4
substance. 5
(17) "Deliver" or "delivery" means the actual or constructive 6
transfer from one person to another of a substance, whether or not 7
there is an agency relationship. 8
(18) "Department" means the department of health.9
(19) "Designated provider" has the meaning provided in RCW 10
69.51A.010. 11
(20) "Director" means the director of the department of 12
agriculture.13
(21) "Dispense" means the interpretation of a prescription or 14
order for a controlled substance and, pursuant to that prescription 15
or order, the proper selection, measuring, compounding, labeling, or 16
packaging necessary to prepare that prescription or order for 17
delivery. 18
(((21))) (22) "Dispenser" means a practitioner who dispenses.19
(((22))) (23) "Distribute" means to deliver other than by 20
administering or dispensing a controlled substance.21
(((23))) (24) "Distributor" means a person who distributes.22
(((24))) (25) "Drug" means (a) a controlled substance recognized 23
as a drug in the official United States pharmacopoeia/national 24
formulary or the official homeopathic pharmacopoeia of the United 25
States, or any supplement to them; (b) controlled substances intended 26
for use in the diagnosis, cure, mitigation, treatment, or prevention 27
of disease in individuals or animals; (c) controlled substances 28
(other than food) intended to affect the structure or any function of 29
the body of individuals or animals; and (d) controlled substances 30
intended for use as a component of any article specified in (a), (b), 31
or (c) of this subsection. The term does not include devices or their 32
components, parts, or accessories. 33
(((25))) (26) "Drug enforcement administration" means the drug 34
enforcement administration in the United States Department of 35
Justice, or its successor agency. 36
(((26))) (27) "Electronic communication of prescription 37
information" means the transmission of a prescription or refill 38
authorization for a drug of a practitioner using computer systems. 39
The term does not include a prescription or refill authorization 40
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verbally transmitted by telephone nor a facsimile manually signed by 1
the practitioner. 2
(((27))) (28) "Immature plant or clone" means a plant or clone 3
that has no flowers, is less than ((twelve)) 12 inches in height, and 4
is less than ((twelve)) 12 inches in diameter. 5
(((28))) (29) "Immediate precursor" means a substance:6
(a) that the commission has found to be and by rule designates as 7
being the principal compound commonly used, or produced primarily for 8
use, in the manufacture of a controlled substance; 9
(b) that is an immediate chemical intermediary used or likely to 10
be used in the manufacture of a controlled substance; and11
(c) the control of which is necessary to prevent, curtail, or 12
limit the manufacture of the controlled substance.13
(((29))) (30) "Isomer" means an optical isomer, but in subsection 14
(((33))) (34)(e) of this section, RCW 69.50.204(1) (l) and (hh), and 15
69.50.206(2)(d), the term includes any geometrical isomer; in RCW 16
69.50.204(1) (h) and (pp)((,)) and 69.50.210(3)(([,])), the term 17
includes any positional isomer; and in RCW 69.50.204(1)(ii), 18
69.50.204(3), and 69.50.208(1)(([,])), the term includes any 19
positional or geometric isomer. 20
(((30))) (31) "Lot" means a definite quantity of cannabis, 21
cannabis concentrates, useable cannabis, or cannabis-infused product 22
identified by a lot number, every portion or package of which is 23
uniform within recognized tolerances for the factors that appear in 24
the labeling. 25
(((31))) (32) "Lot number" must identify the licensee by business 26
or trade name and Washington state unified business identifier 27
number, and the date of harvest or processing for each lot of 28
cannabis, cannabis concentrates, useable cannabis, or cannabis-29
infused product. 30
(((32))) (33) "Manufacture" means the production, preparation, 31
propagation, compounding, conversion, or processing of a controlled 32
substance, either directly or indirectly or by extraction from 33
substances of natural origin, or independently by means of chemical 34
synthesis, or by a combination of extraction and chemical synthesis, 35
and includes any packaging or repackaging of the substance or 36
labeling or relabeling of its container. The term does not include 37
the preparation, compounding, packaging, repackaging, labeling, or 38
relabeling of a controlled substance: 39
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(a) by a practitioner as an incident to the practitioner's 1
administering or dispensing of a controlled substance in the course 2
of the practitioner's professional practice; or 3
(b) by a practitioner, or by the practitioner's authorized agent 4
under the practitioner's supervision, for the purpose of, or as an 5
incident to, research, teaching, or chemical analysis and not for 6
sale. 7
(((33))) (34) "Narcotic drug" means any of the following, whether 8
produced directly or indirectly by extraction from substances of 9
vegetable origin, or independently by means of chemical synthesis, or 10
by a combination of extraction and chemical synthesis:11
(a) Opium, opium derivative, and any derivative of opium or opium 12
derivative, including their salts, isomers, and salts of isomers, 13
whenever the existence of the salts, isomers, and salts of isomers is 14
possible within the specific chemical designation. The term does not 15
include the isoquinoline alkaloids of opium. 16
(b) Synthetic opiate and any derivative of synthetic opiate, 17
including their isomers, esters, ethers, salts, and salts of isomers, 18
esters, and ethers, whenever the existence of the isomers, esters, 19
ethers, and salts is possible within the specific chemical 20
designation. 21
(c) Poppy straw and concentrate of poppy straw.22
(d) Coca leaves, except coca leaves and extracts of coca leaves 23
from which cocaine, ecgonine, and derivatives or ecgonine or their 24
salts have been removed. 25
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.26
(f) Cocaine base. 27
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 28
thereof. 29
(h) Any compound, mixture, or preparation containing any quantity 30
of any substance referred to in (a) through (g) of this subsection.31
(((34))) (35) "Opiate" means any substance having an addiction-32
forming or addiction-sustaining liability similar to morphine or 33
being capable of conversion into a drug having addiction-forming or 34
addiction-sustaining liability. The term includes opium, substances 35
derived from opium (opium derivatives), and synthetic opiates. The 36
term does not include, unless specifically designated as controlled 37
under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-38
methylmorphinan and its salts (dextromethorphan). The term includes 39
the racemic and levorotatory forms of dextromethorphan.40
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(((35))) (36) "Opium poppy" means the plant of the species 1
Papaver somniferum L., except its seeds. 2
(((36))) (37) "Package" means a container that has a single unit 3
or group of units. 4
(((37))) (38) "Person" means individual, corporation, business 5
trust, estate, trust, partnership, association, joint venture, 6
government, governmental subdivision or agency, or any other legal or 7
commercial entity. 8
(((38))) (39) "Plant" has the meaning provided in RCW 69.51A.010.9
(((39))) (40) "Poppy straw" means all parts, except the seeds, of 10
the opium poppy, after mowing. 11
(((40))) (41) "Practitioner" means: 12
(a) A physician under chapter 18.71 RCW; a physician assistant 13
under chapter 18.71A RCW; an osteopathic physician and surgeon under 14
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 15
who is certified by the optometry board under RCW 18.53.010 subject 16
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 17
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 18
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 19
((registered nurse practitioner )) practice registered nurse , or 20
licensed practical nurse under chapter 18.79 RCW; a naturopathic 21
physician under chapter 18.36A RCW who is licensed under RCW 22
18.36A.030 subject to any limitations in RCW 18.36A.040; a pharmacist 23
under chapter 18.64 RCW or a scientific investigator under this 24
chapter, licensed, registered or otherwise permitted insofar as is 25
consistent with those licensing laws to distribute, dispense, conduct 26
research with respect to or administer a controlled substance in the 27
course of their professional practice or research in this state.28
(b) A pharmacy, hospital or other institution licensed, 29
registered, or otherwise permitted to distribute, dispense, conduct 30
research with respect to or to administer a controlled substance in 31
the course of professional practice or research in this state.32
(c) A physician licensed to practice medicine and surgery, a 33
physician licensed to practice osteopathic medicine and surgery, a 34
dentist licensed to practice dentistry, a podiatric physician and 35
surgeon licensed to practice podiatric medicine and surgery, a 36
licensed physician assistant or a licensed osteopathic physician 37
assistant specifically approved to prescribe controlled substances by 38
his or her state's medical commission or equivalent and his or her 39
participating physician as defined in RCW 18.71A.010, an advanced 40
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((registered nurse practitioner )) practice registered nurse licensed 1
to prescribe controlled substances, or a veterinarian licensed to 2
practice veterinary medicine in any state of the United States.3
(((41))) (42) "Prescription" means an order for controlled 4
substances issued by a practitioner duly authorized by law or rule in 5
the state of Washington to prescribe controlled substances within the 6
scope of his or her professional practice for a legitimate medical 7
purpose. 8
(((42))) (43) "Production" includes the manufacturing, planting, 9
cultivating, growing, or harvesting of a controlled substance.10
(((43))) (44) "Qualifying patient" has the meaning provided in 11
RCW 69.51A.010. 12
(((44))) (45) "Recognition card" has the meaning provided in RCW 13
69.51A.010. 14
(((45))) (46) "Retail outlet" means a location licensed by the 15
board for the retail sale of cannabis concentrates, useable cannabis, 16
and cannabis-infused products. 17
(((46))) (47) "Secretary" means the secretary of health or the 18
secretary's designee. 19
(((47))) (48) "Social equity plan" means a plan that addresses at 20
least some of the elements outlined in this subsection (((47))) (48), 21
along with any additional plan components or requirements approved by 22
the board following consultation with the task force created in RCW 23
69.50.336. The plan may include: 24
(a) A statement that indicates how the cannabis licensee will 25
work to promote social equity goals in their community;26
(b) A description of how the cannabis licensee will meet social 27
equity goals as defined in RCW 69.50.335; 28
(c) The composition of the workforce the licensee has employed or 29
intends to hire; and 30
(d) Business plans involving partnerships or assistance to 31
organizations or residents with connections to populations with a 32
history of high rates of enforcement of cannabis prohibition.33
(((48))) (49) "State," unless the context otherwise requires, 34
means a state of the United States, the District of Columbia, the 35
Commonwealth of Puerto Rico, or a territory or insular possession 36
subject to the jurisdiction of the United States. 37
(((49))) (50) "THC concentration" means percent of 38
tetrahydrocannabinol content of any part of the plant Cannabis, or 39
per volume or weight of cannabis product, or the combined percent of 40
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tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of 1
the plant Cannabis regardless of moisture content. 2
(((50))) (51) "Ultimate user" means an individual who lawfully 3
possesses a controlled substance for the individual's own use or for 4
the use of a member of the individual's household or for 5
administering to an animal owned by the individual or by a member of 6
the individual's household. 7
(((51))) (52) "Unit" means an individual consumable item within a 8
package of one or more consumable items in solid, liquid, gas, or any 9
form intended for human consumption. 10
(((52))) (53) "Useable cannabis" means dried cannabis flowers. 11
The term "useable cannabis" does not include either cannabis-infused 12
products or cannabis concentrates. 13
(((53))) (54) "Youth access" means the level of interest persons 14
under the age of ((twenty-one)) 21 may have in a vapor product, as 15
well as the degree to which the product is available or appealing to 16
such persons, and the likelihood of initiation, use, or addiction by 17
adolescents and young adults. 18
Sec. 3. RCW 69.50.325 and 2022 c 16 s 54 are each amended to 19
read as follows: 20
(1) There shall be a cannabis producer's license regulated by the 21
((board)) director and subject to annual renewal. The licensee is 22
authorized to produce: (a) Cannabis for sale at wholesale to cannabis 23
processors and other cannabis producers; (b) immature plants or 24
clones and seeds for sale to cooperatives as described under RCW 25
69.51A.250; and (c) immature plants or clones and seeds for sale to 26
qualifying patients and designated providers as provided under RCW 27
69.51A.310. The production, possession, delivery, distribution, and 28
sale of cannabis in accordance with the provisions of this chapter 29
and the rules adopted to implement and enforce it, by a validly 30
licensed cannabis producer, shall not be a criminal or civil offense 31
under Washington state law. Every cannabis producer's license shall 32
be issued in the name of the applicant, shall specify the location at 33
which the cannabis producer intends to operate, which must be within 34
the state of Washington, and the holder thereof shall not allow any 35
other person to use the license. The application fee for a cannabis 36
producer's license shall be ((two hundred fifty dollars )) $250. The 37
annual fee for issuance and renewal of a cannabis producer's license 38
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 39
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separate license shall be required for each location at which a 1
cannabis producer intends to produce cannabis. 2
(2) There shall be a cannabis processor's license to process, 3
package, and label cannabis concentrates, useable cannabis, and 4
cannabis-infused products for sale at wholesale to cannabis 5
processors and cannabis retailers, regulated by the ((board)) 6
director and subject to annual renewal. The processing, packaging, 7
possession, delivery, distribution, and sale of cannabis, useable 8
cannabis, cannabis-infused products, and cannabis concentrates in 9
accordance with the provisions of this chapter and chapter 69.51A RCW 10
and the rules adopted to implement and enforce these chapters, by a 11
validly licensed cannabis processor, shall not be a criminal or civil 12
offense under Washington state law. Every cannabis processor's 13
license shall be issued in the name of the applicant, shall specify 14
the location at which the licensee intends to operate, which must be 15
within the state of Washington, and the holder thereof shall not 16
allow any other person to use the license. The application fee for a 17
cannabis processor's license shall be ((two hundred fifty dollars )) 18
$250. The annual fee for issuance and renewal of a cannabis 19
processor's license shall be ((one thousand three hundred eighty-one 20
dollars)) $1,381. A separate license shall be required for each 21
location at which a cannabis processor intends to process cannabis.22
(3)(a) There shall be a cannabis retailer's license to sell 23
cannabis concentrates, useable cannabis, and cannabis-infused 24
products at retail in retail outlets, regulated by the board and 25
subject to annual renewal. The possession, delivery, distribution, 26
and sale of cannabis concentrates, useable cannabis, and cannabis-27
infused products in accordance with ((the provisions of )) this 28
chapter and the rules adopted to implement and enforce it, by a 29
validly licensed cannabis retailer, shall not be a criminal or civil 30
offense under Washington state law. Every cannabis retailer's license 31
shall be issued in the name of the applicant, shall specify the 32
location of the retail outlet the licensee intends to operate, which 33
must be within the state of Washington, and the holder thereof shall 34
not allow any other person to use the license. The application fee 35
for a cannabis retailer's license shall be ((two hundred fifty 36
dollars)) $250. The annual fee for issuance and renewal of a cannabis 37
retailer's license shall be ((one thousand three hundred eighty-one 38
dollars)) $1,381. A separate license shall be required for each 39
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location at which a cannabis retailer intends to sell cannabis 1
concentrates, useable cannabis, and cannabis-infused products.2
(b) An individual retail licensee and all other persons or 3
entities with a financial or other ownership interest in the business 4
operating under the license are limited, in the aggregate, to holding 5
a collective total of not more than five retail cannabis licenses.6
(c)(i) A cannabis retailer's license is subject to forfeiture in 7
accordance with rules adopted by the board pursuant to this section.8
(ii) The board shall adopt rules to establish a license 9
forfeiture process for a licensed cannabis retailer that is not fully 10
operational and open to the public within a specified period from the 11
date of license issuance, as established by the board, subject to the 12
following restrictions: 13
(A) No cannabis retailer's license may be subject to forfeiture 14
within the first nine months of license issuance; and15
(B) The board must require license forfeiture on or before 16
((twenty-four)) 24 calendar months of license issuance if a cannabis 17
retailer is not fully operational and open to the public, unless the 18
board determines that circumstances out of the licensee's control are 19
preventing the licensee from becoming fully operational and that, in 20
the board's discretion, the circumstances warrant extending the 21
forfeiture period beyond ((twenty-four)) 24 calendar months.22
(iii) The board has discretion in adopting rules under this 23
subsection (3)(c). 24
(iv) ((This subsection (3)(c) applies to cannabis retailer's 25
licenses issued before and after July 23, 2017. However, no license 26
of a cannabis retailer that otherwise meets the conditions for 27
license forfeiture established pursuant to this subsection (3)(c) may 28
be subject to forfeiture within the first nine calendar months of 29
July 23, 2017.30
(v))) The board may not require license forfeiture if the 31
licensee has been incapable of opening a fully operational retail 32
cannabis business due to actions by the city, town, or county with 33
jurisdiction over the licensee that include any of the following:34
(A) The adoption of a ban or moratorium that prohibits the 35
opening of a retail cannabis business; or 36
(B) The adoption of an ordinance or regulation related to zoning, 37
business licensing, land use, or other regulatory measure that has 38
the effect of preventing a licensee from receiving an occupancy 39
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permit from the jurisdiction or which otherwise prevents a licensed 1
cannabis retailer from becoming operational. 2
(d) The board may issue cannabis retailer licenses pursuant to 3
this chapter and RCW 69.50.335. 4
Sec. 4. RCW 69.50.326 and 2023 c 365 s 3 are each amended to 5
read as follows: 6
(1) Licensed cannabis producers and licensed cannabis processors 7
may use a CBD product as an additive for the purpose of enhancing the 8
cannabidiol concentration of any product authorized for production, 9
processing, and sale under this chapter. Except as otherwise provided 10
in subsection (2) of this section, such CBD product additives must be 11
lawfully produced by, or purchased from, a producer or processor 12
licensed under this chapter. 13
(2) Subject to the requirements set forth in (a) through (c) of 14
this subsection, and for the purpose of enhancing the cannabidiol 15
concentration of any product authorized for production, processing, 16
or sale under this chapter, licensed cannabis producers and licensed 17
cannabis processors may use a CBD product obtained from a source not 18
licensed under this chapter, provided the CBD product:19
(a) Is not cannabis, or a cannabis product, as defined in this 20
chapter; 21
(b) Is not a synthetic cannabinoid; and 22
(c) Has been tested for contaminants and toxins by a testing 23
laboratory accredited under this chapter and in accordance with 24
testing standards established under this chapter and the applicable 25
administrative rules. 26
(3) Subject to the requirements of this subsection (3), the 27
((board)) director may enact rules necessary to implement the 28
requirements of this section. Such rule making is limited to 29
regulations pertaining to laboratory testing and product safety 30
standards for those cannabidiol products used by licensed producers 31
and processors in the manufacture of cannabis products marketed by 32
licensed retailers under this chapter. The purpose of such rule 33
making must be to ensure the safety and purity of cannabidiol 34
products used by cannabis producers and processors licensed under 35
this chapter and incorporated into products sold by licensed 36
recreational cannabis retailers. This rule-making authority does not 37
include the authority to enact rules regarding either the production 38
or processing practices of the industrial hemp industry or any 39
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cannabidiol products that are sold or marketed outside of the 1
regulatory framework established under this chapter.2
Sec. 5. RCW 69.50.331 and 2023 c 220 s 2 are each amended to 3
read as follows: 4
(1)(a) For the purpose of considering any application , or 5
renewal, for a license , a comprehensive, fair, and impartial 6
evaluation of the applications timely received must be conducted by:7
(i) The director for any application for a license, or renewal of 8
a license, to produce, process, research, transport, or deliver 9
cannabis, useable cannabis, cannabis concentrates, or cannabis-10
infused products subject to the regulations established under RCW 11
69.50.385, or sell cannabis, or for the renewal of a license to 12
produce, process, or research((, transport, or deliver cannabis, )) 13
useable cannabis, cannabis concentrates, or cannabis-infused products 14
((subject to the regulations established under RCW 69.50.385, or sell 15
cannabis, the board must conduct a comprehensive, fair, and impartial 16
evaluation of the applications timely received)); and17
(ii) The board for any application for a license, or renewal of a 18
license, to transport, deliver, or sell cannabis subject to the rules 19
adopted under RCW 69.50.385. 20
(((a))) (b) The board and the director may cause an inspection of 21
the premises to be made, and may inquire into all matters in 22
connection with the construction and operation of the premises. For 23
the purpose of reviewing any application for a license and for 24
considering the denial, suspension, revocation, cancellation, or 25
renewal or denial thereof, of any license, the board and the director 26
may consider any prior criminal arrests or convictions of the 27
applicant, any public safety administrative violation history record 28
with the board or the department of agriculture , and a criminal 29
history record information check. The board and the director may 30
submit the criminal history record information check to the 31
Washington state patrol and to the identification division of the 32
federal bureau of investigation in order that these agencies may 33
search their records for prior arrests and convictions of the 34
individual or individuals who filled out the forms. The board and the 35
director must require fingerprinting of any applicant whose criminal 36
history record information check is submitted to the federal bureau 37
of investigation. The provisions of RCW 9.95.240 and of chapter 9.96A 38
RCW do not apply to these cases. Subject to the provisions of this 39
p. 14 HB 1067
section, the board and the director may, in ((its)) either's 1
discretion, grant or deny the renewal or license applied for. Denial 2
may be based on, without limitation, the existence of chronic illegal 3
activity documented in objections submitted pursuant to subsections 4
(7)(c) and (10) of this section. Authority to approve an uncontested 5
or unopposed license may be granted by the board or the director to 6
any staff member the board or the director designates in writing. 7
Conditions for granting this authority must be adopted by rule.8
(((b))) (c) No license of any kind may be issued to:9
(i) A person under the age of 21 years; 10
(ii) A person doing business as a sole proprietor who has not 11
lawfully resided in the state for at least six months prior to 12
applying to receive a license; 13
(iii) A partnership, employee cooperative, association, nonprofit 14
corporation, or corporation unless formed under the laws of this 15
state, and unless all of the members thereof are qualified to obtain 16
a license as provided in this section; or 17
(iv) A person whose place of business is conducted by a manager 18
or agent, unless the manager or agent possesses the same 19
qualifications required of the licensee. 20
(2)(a) ((The board may, in its discretion, subject )) subject to 21
RCW 43.05.160, 69.50.563, 69.50.562, 69.50.334, and 69.50.342(((3) 22
suspend or cancel any license; and all protections of the licensee 23
from criminal or civil sanctions under state law )) (4), any license 24
and all protections of the licensee from criminal or civil sanctions 25
under state law may be suspended or canceled by:26
(i) The director for producing, processing, or researching((, or 27
selling)) cannabis, cannabis concentrates, useable cannabis, or 28
cannabis-infused products thereunder ((must be suspended or 29
terminated, as the case may be)); and30
(ii) The board for selling cannabis, cannabis concentrates, 31
useable cannabis, or cannabis-infused products thereunder.32
(b) The board and the director must immediately suspend the 33
license of a person who has been certified pursuant to RCW 74.20A.320 34
by the department of social and health services as a person who is 35
not in compliance with a support order. If the person has continued 36
to meet all other requirements for reinstatement during the 37
suspension, reissuance of the license is automatic upon the board's 38
or the director's receipt of a release issued by the department of 39
p. 15 HB 1067
social and health services stating that the licensee is in compliance 1
with the order. 2
(c) The board or the director may request the appointment of 3
administrative law judges under chapter 34.12 RCW who shall have 4
power to administer oaths, issue subpoenas for the attendance of 5
witnesses and the production of papers, books, accounts, documents, 6
and testimony, examine witnesses, receive testimony in any inquiry, 7
investigation, hearing, or proceeding in any part of the state, and 8
consider mitigating and aggravating circumstances in any case and 9
deviate from any prescribed penalty, under rules the board or the 10
director may adopt. 11
(d) Witnesses must be allowed fees and mileage each way to and 12
from any inquiry, investigation, hearing, or proceeding at the rate 13
authorized by RCW 34.05.446. Fees need not be paid in advance of 14
appearance of witnesses to testify or to produce books, records, or 15
other legal evidence. 16
(e) In case of disobedience of any person to comply with the 17
order of the board or the director or a subpoena issued by the board, 18
or any of its members, the director, or administrative law judges, or 19
on the refusal of a witness to testify to any matter regarding which 20
he or she may be lawfully interrogated, the judge of the superior 21
court of the county in which the person resides, on application of 22
any member of the board , the director, or administrative law judge, 23
compels obedience by contempt proceedings, as in the case of 24
disobedience of the requirements of a subpoena issued from said court 25
or a refusal to testify therein. 26
(3) Upon receipt of notice of the suspension or cancellation of a 27
license, the licensee must forthwith deliver up the license to the 28
board or the director. Where the license has been suspended only, the 29
board or the director must return the license to the licensee at the 30
expiration or termination of the period of suspension. The board or 31
the director must notify all other licensees in the county where the 32
subject licensee has its premises of the suspension or cancellation 33
of the license; and no other licensee or employee of another licensee 34
may allow or cause any cannabis, cannabis concentrates, useable 35
cannabis, or cannabis-infused products to be delivered to or for any 36
person at the premises of the subject licensee. 37
(4) Every license issued under this chapter is subject to all 38
conditions and restrictions imposed by this chapter or by rules 39
adopted by the board or the director to implement and enforce this 40
p. 16 HB 1067
chapter. All conditions and restrictions imposed by the board or the 1
director in the issuance of an individual license must be listed on 2
the face of the individual license along with the trade name, 3
address, and expiration date. 4
(5) Every licensee must post and keep posted its license, or 5
licenses, in a conspicuous place on the premises. 6
(6) No licensee may employ any person under the age of 21 years.7
(7)(a) Before the board or the director issues a new or renewed 8
license to an applicant it must give notice of the application to the 9
chief executive officer of the incorporated city or town, if the 10
application is for a license within an incorporated city or town, or 11
to the county legislative authority, if the application is for a 12
license outside the boundaries of incorporated cities or towns, or to 13
the tribal government if the application is for a license within 14
Indian country, or to the port authority if the application for a 15
license is located on property owned by a port authority.16
(b) The incorporated city or town through the official or 17
employee selected by it, the county legislative authority or the 18
official or employee selected by it, the tribal government, or port 19
authority has the right to file with the board or the director, as 20
applicable, within ((twenty)) 20 days after the date of transmittal 21
of the notice for applications, or at least ((thirty)) 30 days prior 22
to the expiration date for renewals, written objections against the 23
applicant or against the premises for which the new or renewed 24
license is asked. The board , or the director, as applicable, may 25
extend the time period for submitting written objections upon request 26
from the authority notified by the board or the director.27
(c) The written objections must include a statement of all facts 28
upon which the objections are based, and in case written objections 29
are filed, the city or town or county legislative authority may 30
request, and the board or the director may in ((its)) their 31
respective discretion hold, a hearing subject to the applicable 32
provisions of Title 34 RCW. If the board or the director makes an 33
initial decision to deny a license or renewal based on the written 34
objections of an incorporated city or town or county legislative 35
authority, the applicant may request a hearing subject to the 36
applicable provisions of Title 34 RCW. If a hearing is held at the 37
request of the applicant, ((board)) representatives for the board or 38
the director, as applicable, must present and defend the ((board's)) 39
p. 17 HB 1067
initial decision by the board or the director to deny a license or 1
renewal. 2
(d) Upon the granting of a license under this title the board or 3
the director must send written notification to the chief executive 4
officer of the incorporated city or town in which the license is 5
granted, or to the county legislative authority if the license is 6
granted outside the boundaries of incorporated cities or towns.7
(8)(a) Except as provided in (b) through (e) of this subsection, 8
the board or the director may not issue a license for any premises 9
within 1,000 feet of the perimeter of the grounds of any elementary 10
or secondary school, playground, recreation center or facility, child 11
care center, public park, public transit center, or library, or any 12
game arcade admission to which is not restricted to persons aged 21 13
years or older. 14
(b) A city, county, or town may permit the licensing of premises 15
within 1,000 feet but not less than 100 feet of the facilities 16
described in (a) of this subsection, except elementary schools, 17
secondary schools, and playgrounds, by enacting an ordinance 18
authorizing such distance reduction, provided that such distance 19
reduction will not negatively impact the jurisdiction's civil 20
regulatory enforcement, criminal law enforcement interests, public 21
safety, or public health. 22
(c) A city, county, or town may permit the licensing of research 23
premises allowed under RCW 69.50.372 within 1,000 feet but not less 24
than 100 feet of the facilities described in (a) of this subsection 25
by enacting an ordinance authorizing such distance reduction, 26
provided that the ordinance will not negatively impact the 27
jurisdiction's civil regulatory enforcement, criminal law 28
enforcement, public safety, or public health. 29
(d) The board or the director may license premises located in 30
compliance with the distance requirements set in an ordinance adopted 31
under (b) or (c) of this subsection. Before issuing or renewing a 32
research license for premises within 1,000 feet but not less than 100 33
feet of an elementary school, secondary school, or playground in 34
compliance with an ordinance passed pursuant to (c) of this 35
subsection, the board or the director, as applicable, must ensure 36
that the facility: 37
(i) Meets a security standard exceeding that which applies to 38
cannabis producer, processor, or retailer licensees;39
p. 18 HB 1067
(ii) Is inaccessible to the public and no part of the operation 1
of the facility is in view of the general public; and2
(iii) Bears no advertising or signage indicating that it is a 3
cannabis research facility. 4
(e) The board or the director, as applicable, must issue a 5
certificate of compliance if the premises met the requirements under 6
(a), (b), (c), or (d) of this subsection on the date of the 7
application. The certificate allows the licensee to operate the 8
business at the proposed location notwithstanding a later occurring, 9
otherwise disqualifying factor. 10
(f) The board and the director may not issue a license for any 11
premises within Indian country, as defined in 18 U.S.C. Sec. 1151, 12
including any fee patent lands within the exterior boundaries of a 13
reservation, without the consent of the federally recognized tribe 14
associated with the reservation or Indian country.15
(9) A city, town, or county may adopt an ordinance prohibiting a 16
cannabis producer or cannabis processor from operating or locating a 17
business within areas zoned primarily for residential use or rural 18
use with a minimum lot size of five acres or smaller.19
(10) In determining whether to grant or deny a license or renewal 20
of any license, the board or the director, as applicable, must give 21
substantial weight to objections from an incorporated city or town or 22
county legislative authority based upon chronic illegal activity 23
associated with the applicant's operations of the premises proposed 24
to be licensed or the applicant's operation of any other licensed 25
premises, or the conduct of the applicant's patrons inside or outside 26
the licensed premises. "Chronic illegal activity" means (a) a 27
pervasive pattern of activity that threatens the public health, 28
safety, and welfare of the city, town, or county including, but not 29
limited to, open container violations, assaults, disturbances, 30
disorderly conduct, or other criminal law violations, or as 31
documented in crime statistics, police reports, emergency medical 32
response data, calls for service, field data, or similar records of a 33
law enforcement agency for the city, town, county, or any other 34
municipal corporation or any state agency; or (b) an unreasonably 35
high number of citations for violations of RCW 46.61.502 associated 36
with the applicant's or licensee's operation of any licensed premises 37
as indicated by the reported statements given to law enforcement upon 38
arrest. 39
p. 19 HB 1067
(11) The board may not issue a cannabis retail license for any 1
premises not currently licensed if: 2
(a) The board receives a written objection from the legislative 3
authority of an incorporated city or town, or county legislative 4
authority, relating to the physical location of the proposed 5
premises; 6
(b) The objection to the location from the incorporated city or 7
town, or county legislative authority, is received by the board 8
within 20 days of the board notifying the incorporated city or town, 9
or county legislative authority, of the proposed cannabis retail 10
location; and 11
(c) The objection to the issuance of a cannabis retail license at 12
the specified location is based on a preexisting local ordinance 13
limiting outlet density in a specific geographic area. For purposes 14
of this subsection (11), a preexisting local ordinance is an 15
ordinance enacted and in effect before the date the applicant submits 16
an application for a cannabis retail license to the board identifying 17
the premises proposed to be licensed. No objection related to the 18
physical location of a proposed premises may be made by a local 19
government under this subsection (11) based on a local ordinance 20
enacted after the date the applicant submits an application for a 21
cannabis retail license to the board identifying the premises 22
proposed to be licensed. 23
(12) ((After January 1, 2024, all )) All cannabis licensees are 24
encouraged but are not required to submit a social equity plan to the 25
board or the director, as applicable . Upon confirmation by the board 26
or director that a cannabis licensee who is not a social equity 27
applicant, and who does not hold a social equity license issued under 28
RCW 69.50.335, has submitted a social equity plan, the board or 29
director must within 30 days reimburse such a licensee an amount 30
equal to the cost of the licensee's annual cannabis license renewal 31
fee. The license renewal fee reimbursement authorized under this 32
subsection is subject to the following limitations:33
(a) The board or the director may provide reimbursement one time 34
only to any licensed entity; and 35
(b) Any licensed entity holding more than one cannabis license is 36
eligible for reimbursement of the license renewal fee on only one 37
license. 38
p. 20 HB 1067
Sec. 6. RCW 69.50.334 and 2022 c 16 s 59 are each amended to 1
read as follows: 2
(1) The following must be an adjudicative proceeding and subject 3
to the applicable provisions of chapter 34.05 RCW:4
(a) Any action, order, or decision of the ((board)) director as 5
to any denial of an application for the reissuance of a license to 6
produce((,)) or process((, or sell )) cannabis, or as to any 7
revocation, suspension, or modification of any license to 8
produce((,)) or process((, or sell)) cannabis((, or));9
(b) Any action, order, or decision of the board as to any denial 10
of an application for the reissuance of a license to transport, 11
deliver, or sell cannabis, or as to any revocation, suspension, or 12
modification of any license to sell cannabis; and13
(c) Any action, order, or decision of the board or the director, 14
as applicable, as to the administrative review of a notice of unpaid 15
trust fund taxes under RCW 69.50.565((, must be an adjudicative 16
proceeding and subject to the applicable provisions of chapter 34.05 17
RCW)). 18
(2) An opportunity for a hearing may be provided to an applicant 19
for the reissuance of a license prior to the disposition of the 20
application, and if no opportunity for a prior hearing is provided 21
then an opportunity for a hearing to reconsider the application must 22
be provided the applicant. 23
(3) An opportunity for a hearing must be provided to a licensee 24
prior to a revocation or modification of any license and, except as 25
provided in subsection (6) of this section, prior to the suspension 26
of any license. 27
(4) An opportunity for a hearing must be provided to any person 28
issued a notice of unpaid trust fund taxes under RCW 69.50.565.29
(5) No hearing may be required under this section until demanded 30
by the applicant, licensee, or person issued a notice of unpaid trust 31
fund taxes under RCW 69.50.565. 32
(6) The board or the director, as applicable, may summarily 33
suspend a license for a period of up to ((one hundred eighty )) 180 34
days without a prior hearing if it finds that public health, safety, 35
or welfare imperatively require emergency action, and it incorporates 36
a finding to that effect in ((its)) the order. Proceedings for 37
revocation or other action must be promptly instituted and 38
determined. An administrative law judge may extend the summary 39
suspension period for up to one calendar year from the first day of 40
p. 21 HB 1067
the initial summary suspension in the event the proceedings for 1
revocation or other action cannot be completed during the initial 2
((one hundred eighty-day )) 180-day period due to actions by the 3
licensee. The board's enforcement division shall complete a 4
preliminary staff investigation of the violation before requesting an 5
emergency suspension by the board. 6
Sec. 7. RCW 69.50.335 and 2023 c 220 s 3 are each amended to 7
read as follows: 8
(1)(a) Beginning December 1, 2020, and until July 1, 2032, 9
cannabis retailer licenses, cannabis processor licenses, and cannabis 10
producer licenses that have been subject to forfeiture, revocation, 11
or cancellation by the board or the director, as applicable , or 12
cannabis retailer licenses that were not previously issued by the 13
board but could have been issued without exceeding the limit on the 14
statewide number of cannabis retailer licenses established before 15
January 1, 2020, by the board, may be issued or reissued to an 16
applicant who meets the cannabis retailer license, cannabis processor 17
license, or cannabis producer license requirements of this chapter.18
(b) In accordance with (a) of this subsection, the board or the 19
director, as applicable, may issue or reissue: 20
(i) Up to 100 cannabis processor licenses immediately; and21
(ii) Beginning January 1, 2025, up to 10 cannabis producer 22
licenses, which must be issued in conjunction with a cannabis 23
processor license. 24
(c) In addition to the cannabis retailer licenses and cannabis 25
producer licenses that may be issued under (a) and (b) of this 26
subsection, beginning January 1, 2023, and continuing every three 27
years until July 1, 2032, the board or the director, as applicable, 28
may, with the approval of the legislature through the passage of a 29
bill, increase the number of cannabis retailer licenses and cannabis 30
producer licenses for the social equity program based on:31
(i) The most recent census data available as of January 1, 2023; 32
and 33
(ii) The annual population estimates published by the office of 34
financial management. 35
(d) In addition to the cannabis retailer licenses that may be 36
issued under (a) of this subsection, beginning January 1, 2024, and 37
until July 1, 2032, the board may issue up to 52 cannabis retailer 38
licenses for the social equity program. 39
p. 22 HB 1067
(e)(i) At the time of licensure, all licenses issued under the 1
social equity program under this section may be located in any city, 2
town, or county in the state that allows cannabis retail, cannabis 3
production, or cannabis processing business activities, as 4
applicable, at the proposed location, regardless of:5
(A) Whether a cannabis retailer license, cannabis producer 6
license, or cannabis processor license was originally allocated to or 7
issued in another city, town, or county; and 8
(B) The maximum number of retail cannabis licenses established by 9
the board for each county under RCW 69.50.345. 10
(ii) The board or the director, as applicable, must adopt rules 11
establishing a threshold of the number of licenses created by this 12
section that can be located in each county. 13
(f) After a social equity license has been issued under this 14
section for a specific location, the location of the licensed 15
business may not be moved to a city, town, or county different from 16
the city, town, or county for which it was initially licensed.17
(2)(a) In order to be considered for a cannabis retailer license, 18
cannabis processor license, or cannabis producer license under 19
subsection (1) of this section, an applicant must be a social equity 20
applicant and submit required cannabis license materials to the board 21
or the director, as applicable . If the application proposes ownership 22
by more than one person, then at least 51 percent of the proposed 23
ownership structure must reflect the qualifications of a social 24
equity applicant. 25
(b) Persons holding an existing cannabis retailer license or 26
title certificate for a cannabis retailer business in a local 27
jurisdiction subject to a ban or moratorium on cannabis retail 28
businesses may apply for a license under this section.29
(3)(a) In determining the priority for issuance of a license 30
among applicants, the board or the director, as applicable, must 31
select a third-party contractor to identify and score social equity 32
applicants, using a scoring rubric developed by the board or the 33
director, as applicable . The board or the director, as applicable, 34
must rely on the score provided by the third-party contractor in 35
issuing licenses. 36
(b) The board or the director, as applicable, may deny any 37
application submitted under this subsection if: 38
p. 23 HB 1067
(i) The board or the director, as applicable, determines that, 1
upon the advice of the third-party contractor, the application does 2
not meet the social equity licensing requirements of this chapter; or3
(ii) The board or the director, as applicable, determines the 4
application does not otherwise meet licensing requirements.5
(4) The board and the director must adopt rules to implement this 6
section. Prior to adopting any rule implementing this section, the 7
board and the director must consider advice on the social equity 8
program from individuals the program is intended to benefit. Rules 9
may also require that licenses awarded under this section only be 10
transferred to or assumed by individuals or groups of individuals who 11
comply with the requirements for initial licensure as a social equity 12
applicant for a period of at least five years from the date of 13
initial licensure. 14
(5) The annual fee for issuance, reissuance, or renewal for any 15
license under this section must be waived through July 1, 2032.16
(6) The definitions in this subsection apply throughout this 17
section unless the context clearly requires otherwise.18
(a) "Disproportionately impacted area" means a census tract or 19
comparable geographic area within Washington state where community 20
members were more likely to be impacted by the war on drugs. These 21
areas must be determined in rule by the board or the director, as 22
applicable, in consultation with the office of equity, using a 23
standardized statistical equation to identify areas with demographic 24
indicators consistent with populations most impacted by the war on 25
drugs. These areas must be assessed to account for demographic 26
changes in the composition of the population over time. 27
Disproportionately impacted areas must include census tracts or 28
comparable geographic areas in the top 15th percentile in at least 29
two of the following demographic indicators of populations most 30
impacted by the war on drugs: 31
(i) The area has a high rate of people living under the federal 32
poverty level; 33
(ii) The area has a high rate of people who did not graduate from 34
high school; 35
(iii) The area has a high rate of unemployment; or36
(iv) The area has a high rate of people receiving public 37
assistance. 38
p. 24 HB 1067
(b) "Social equity applicant" means an applicant who has at least 1
51 percent ownership and control by one or more individuals who meet 2
at least two of the following qualifications: 3
(i) Lived in a disproportionately impacted area in Washington 4
state for a minimum of five years between 1980 and 2010;5
(ii) Has been arrested or convicted of a cannabis offense or has 6
a family member who has been arrested or convicted of a cannabis 7
offense; 8
(iii) Had a household income in the year prior to submitting an 9
application under this section that was less than the median 10
household income within the state of Washington as calculated by the 11
United States census bureau; or 12
(iv) Is both a socially and economically disadvantaged individual 13
as defined by the office of minority and women's business enterprises 14
under chapter 39.19 RCW. 15
(c) "Social equity goals" means: 16
(i) Increasing the number of cannabis retailer, producer, and 17
processor licenses held by social equity applicants from 18
disproportionately impacted areas; and 19
(ii) Reducing accumulated harm suffered by individuals, families, 20
and local areas subject to severe impacts from the historical 21
application and enforcement of cannabis prohibition laws.22
(7) Except for the process detailed in subsection (1) of this 23
section, the process for creating new cannabis retail licenses under 24
this chapter remains unaltered. 25
Sec. 8. RCW 69.50.339 and 2022 c 16 s 62 are each amended to 26
read as follows: 27
(1) If the board or the director, as applicable, approves, a 28
license to produce, process, or sell cannabis may be transferred, 29
without charge, to the surviving spouse or domestic partner of a 30
deceased licensee if the license was issued in the names of one or 31
both of the parties. For the purpose of considering the 32
qualifications of the surviving party to receive a cannabis 33
producer's, cannabis processor's, or cannabis retailer's license, the 34
board or the director, as applicable, may require a criminal history 35
record information check. The board or the director, as applicable, 36
may submit the criminal history record information check to the 37
Washington state patrol and to the identification division of the 38
federal bureau of investigation in order that these agencies may 39
p. 25 HB 1067
search their records for prior arrests and convictions of the 1
individual or individuals who filled out the forms. The board or the 2
director, as applicable, shall require fingerprinting of any 3
applicant whose criminal history record information check is 4
submitted to the federal bureau of investigation. 5
(2) The proposed sale of more than ((ten)) 10 percent of the 6
outstanding or issued stock of a corporation licensed under chapter 7
3, Laws of 2013, or any proposed change in the officers of such a 8
corporation, must be reported to the board or the director, as 9
applicable, and ((board)) approval must be obtained before the 10
changes are made. A fee of ((seventy-five dollars )) $75 will be 11
charged for the processing of the change of stock ownership or 12
corporate officers. 13
Sec. 9. RCW 69.50.342 and 2022 c 16 s 63 are each amended to 14
read as follows: 15
(1) For the purpose of carrying into effect the provisions of 16
chapter 3, Laws of 2013 according to their true intent or of 17
supplying any deficiency therein, the board may adopt rules not 18
inconsistent with the spirit of chapter 3, Laws of 2013 as are deemed 19
necessary or advisable. Without limiting the generality of the 20
preceding sentence, the board is empowered to adopt rules regarding 21
the following: 22
(a) The equipment and management of retail outlets ((and premises 23
where cannabis is produced or processed, )) and inspection of the 24
retail outlets ((and premises where cannabis is produced or 25
processed)); 26
(b) The books and records to be created and maintained by retail 27
licensees, the reports to be made thereon to the board, and 28
inspection of the books and records; 29
(c) ((Methods of producing, processing, and )) In coordination 30
with the director, methods of packaging cannabis, useable cannabis, 31
cannabis concentrates, and cannabis-infused products; conditions of 32
sanitation; safe handling requirements; ((approved pesticides and 33
pesticide testing requirements; )) and standards of ingredients, 34
quality, and identity of cannabis, useable cannabis, cannabis 35
concentrates, and cannabis-infused products ((produced, processed, 36
packaged, or)) sold by licensees; 37
p. 26 HB 1067
(d) Security requirements for retail outlets ((and premises where 1
cannabis is produced or processed, )) and safety protocols for such 2
licensees and their employees; 3
(e) Screening, hiring, training, and supervising employees of 4
retail licensees; 5
(f) Retail outlet locations and hours of operation;6
(g) Labeling requirements and restrictions on advertisement of 7
cannabis, useable cannabis, cannabis concentrates, cannabis health 8
and beauty aids, and cannabis-infused products for sale in retail 9
outlets; 10
(h) Forms to be used for purposes of this chapter and chapter 11
69.51A RCW or the rules adopted to implement and enforce these 12
chapters, the terms and conditions to be contained in licenses issued 13
under this chapter and chapter 69.51A RCW, and the qualifications for 14
receiving a license issued under this chapter and chapter 69.51A RCW, 15
including a criminal history record information check. The board may 16
submit any criminal history record information check to the 17
Washington state patrol and to the identification division of the 18
federal bureau of investigation in order that these agencies may 19
search their records for prior arrests and convictions of the 20
individual or individuals who filled out the forms. The board must 21
require fingerprinting of any applicant whose criminal history record 22
information check is submitted to the federal bureau of 23
investigation; 24
(i) Application, reinstatement, and renewal fees for licenses 25
issued under this chapter and chapter 69.51A RCW, and fees for 26
anything done or permitted to be done under the rules adopted to 27
implement and enforce this chapter and chapter 69.51A RCW;28
(j) The manner of giving and serving notices required by this 29
chapter and chapter 69.51A RCW or rules adopted to implement or 30
enforce these chapters; 31
(k) Times and periods when, and the manner, methods, and means by 32
which, licensees transport and deliver cannabis, cannabis 33
concentrates, useable cannabis, and cannabis-infused products within 34
the state; 35
(l) Identification, seizure, confiscation, destruction, or 36
donation to law enforcement for training purposes of all cannabis, 37
cannabis concentrates, useable cannabis, and cannabis-infused 38
products ((produced, processed, )) sold((,)) or offered for sale 39
within this state which do not conform in all respects to the 40
p. 27 HB 1067
standards prescribed by this chapter or chapter 69.51A RCW or the 1
rules adopted to implement and enforce these chapters; and2
(m) The prohibition of any type of device used in conjunction 3
with a cannabis vapor product and the prohibition of the use of any 4
type of additive, solvent, ingredient, or compound in the production 5
and processing of cannabis products, including cannabis vapor 6
products, when the board determines, following consultation with the 7
department of health or any other authority the board deems 8
appropriate, that the device, additive, solvent, ingredient, or 9
compound may pose a risk to public health or youth access((; and10
(n) Requirements for processors to submit under oath to the 11
department of health a complete list of all constituent substances 12
and the amount and sources thereof in each cannabis vapor product, 13
including all additives, thickening agents, preservatives, compounds, 14
and any other substance used in the production and processing of each 15
cannabis vapor product)). 16
(2) For the purpose of carrying into effect the provisions of 17
chapter 3, Laws of 2013 according to their true intent or of 18
supplying any deficiency therein, the director may adopt rules not 19
inconsistent with the spirit of chapter 3, Laws of 2013 as are deemed 20
necessary or advisable. The director may adopt rules regarding the 21
following:22
(a) The equipment and management of the premises where cannabis 23
is produced or processed and inspection of the premises where 24
cannabis is produced or processed;25
(b) The books and records to be created and maintained by 26
producer licensees and processor licensees, the reports to be made 27
thereon to the director, and inspection of the books and records;28
(c) Methods of producing, processing, and packaging cannabis, 29
useable cannabis, cannabis concentrates, and cannabis-infused 30
products; conditions of sanitation; safe handling requirements; 31
approved pesticides and pesticide testing requirements; and standards 32
of ingredients, quality, and identity of cannabis, useable cannabis, 33
cannabis concentrates, and cannabis-infused products produced, 34
processed, or packaged by licensees;35
(d) Screening, hiring, training, and supervising employees of 36
producer licensees and processor licensees;37
(e) Forms to be used for purposes of this chapter and chapter 38
69.51A RCW or the rules adopted to implement and enforce these 39
chapters, the terms and conditions to be contained in producer 40
p. 28 HB 1067
licenses and processor licenses issued under this chapter, including 1
a criminal history record information check. The director may submit 2
any criminal history record information check to the Washington state 3
patrol and to the identification division of the federal bureau of 4
investigation in order that these agencies may search their records 5
for prior arrests and convictions of the individual or individuals 6
who filled out the forms. The director must require fingerprinting of 7
any applicant whose criminal history record information check is 8
submitted to the federal bureau of investigation; 9
(f) Application, reinstatement, and renewal fees for producer 10
licenses and processor licenses issued under this chapter and fees 11
for anything done or permitted to be done under the rules adopted to 12
implement and enforce this chapter;13
(g) The manner of giving and serving notices required by this 14
chapter or rules adopted to implement or enforce this chapter;15
(h) Identification, seizure, confiscation, destruction, or 16
donation to law enforcement for training purposes of all cannabis, 17
cannabis concentrates, useable cannabis, and cannabis-infused 18
products produced or processed within this state which do not conform 19
in all respects to the standards prescribed by this chapter or the 20
rules adopted to implement and enforce this chapter; and21
(i) Requirements for processors to submit under oath to the 22
department a complete list of all constituent substances and the 23
amount and sources thereof in each cannabis vapor product, including 24
all additives, thickening agents, preservatives, compounds, and any 25
other substance used in the production and processing of each 26
cannabis vapor product.27
(3) Rules adopted on retail outlets holding medical cannabis 28
endorsements must be adopted in coordination and consultation with 29
the department. 30
(((3))) (4) The board and the director, as applicable, must adopt 31
rules to perfect and expand existing programs for compliance 32
education for licensed cannabis businesses and their employees. The 33
rules must include a voluntary compliance program created in 34
consultation with licensed cannabis businesses and their employees. 35
The voluntary compliance program must include recommendations on 36
abating violations of this chapter and rules adopted under this 37
chapter. 38
p. 29 HB 1067
Sec. 10. RCW 69.50.345 and 2023 c 220 s 5 are each amended to 1
read as follows: 2
The board and the director , subject to the provisions of this 3
chapter, must adopt rules that establish the procedures and criteria 4
necessary to implement the following: 5
(1) Licensing of cannabis producers ((,)) and cannabis processors 6
by the director , and cannabis retailers by the board , including 7
prescribing forms and establishing application, reinstatement, and 8
renewal fees. 9
(a) Application forms for cannabis producers must request the 10
applicant to state whether the applicant intends to produce cannabis 11
for sale by cannabis retailers holding medical cannabis endorsements 12
and the amount of or percentage of canopy the applicant intends to 13
commit to growing plants determined by the department under RCW 14
69.50.375 to be of a THC concentration, CBD concentration, or THC to 15
CBD ratio appropriate for cannabis concentrates, useable cannabis, or 16
cannabis-infused products sold to qualifying patients.17
(b) The ((board)) director must reconsider and increase limits on 18
the amount of square feet permitted to be in production on July 24, 19
2015, and increase the percentage of production space for those 20
cannabis producers who intend to grow plants for cannabis retailers 21
holding medical cannabis endorsements if the cannabis producer 22
designates the increased production space to plants determined by the 23
department under RCW 69.50.375 to be of a THC concentration, CBD 24
concentration, or THC to CBD ratio appropriate for cannabis 25
concentrates, useable cannabis, or cannabis-infused products to be 26
sold to qualifying patients. If current cannabis producers do not use 27
all the increased production space, the ((board)) director may reopen 28
the license period for new cannabis producer license applicants but 29
only to those cannabis producers who agree to grow plants for 30
cannabis retailers holding medical cannabis endorsements. Priority in 31
licensing must be given to cannabis producer license applicants who 32
have an application pending on July 24, 2015, but who are not yet 33
licensed and then to new cannabis producer license applicants. After 34
January 1, 2017, any reconsideration of the limits on the amount of 35
square feet permitted to be in production to meet the medical needs 36
of qualifying patients must consider information contained in the 37
medical cannabis authorization database established in RCW 38
69.51A.230; 39
p. 30 HB 1067
(2)(a) Except as provided in RCW 69.50.335, ((determining)) the 1
board, in consultation with the office of financial management, 2
determining the maximum number of retail outlets that may be licensed 3
in each county, taking into consideration: 4
(i) Population distribution; 5
(ii) Security and safety issues; 6
(iii) The provision of adequate access to licensed sources of 7
cannabis concentrates, useable cannabis, and cannabis-infused 8
products to discourage purchases from the illegal market; and9
(iv) The number of retail outlets holding medical cannabis 10
endorsements necessary to meet the medical needs of qualifying 11
patients. The board must reconsider and increase the maximum number 12
of retail outlets it established before July 24, 2015, and allow for 13
a new license application period and a greater number of retail 14
outlets to be permitted in order to accommodate the medical needs of 15
qualifying patients and designated providers. After January 1, 2017, 16
any reconsideration of the maximum number of retail outlets needed to 17
meet the medical needs of qualifying patients must consider 18
information contained in the medical cannabis authorization database 19
established in RCW 69.51A.230. 20
(b)(i) In making the determination under (a) of this subsection, 21
the board must consider written input from an incorporated city or 22
town, or county legislative authority when evaluating concerns 23
related to outlet density. 24
(ii) An incorporated city or town, or county legislative 25
authority, may enact an ordinance prescribing outlet density 26
limitations. An ordinance may not affect licenses issued before the 27
effective date of the ordinance prescribing outlet density 28
limitations. 29
(iii) The board may adopt rules to identify how local 30
jurisdiction input will be evaluated; 31
(3) ((Determining)) The director determining the maximum quantity 32
of cannabis a cannabis producer may have on the premises of a 33
licensed location at any time without violating Washington state law;34
(4) ((Determining)) The director determining the maximum 35
quantities of cannabis, cannabis concentrates, useable cannabis, and 36
cannabis-infused products a cannabis processor may have on the 37
premises of a licensed location at any time without violating 38
Washington state law; 39
p. 31 HB 1067
(5) ((Determining)) The board determining the maximum quantities 1
of cannabis concentrates, useable cannabis, and cannabis-infused 2
products a cannabis retailer may have on the premises of a retail 3
outlet at any time without violating Washington state law;4
(6) In making the determinations required by this section, the 5
board or the director, as applicable, shall take into consideration:6
(a) Security and safety issues; 7
(b) The provision of adequate access to licensed sources of 8
cannabis, cannabis concentrates, useable cannabis, and cannabis-9
infused products to discourage purchases from the illegal market; and10
(c) Economies of scale, and their impact on licensees' ability to 11
both comply with regulatory requirements and undercut illegal market 12
prices; 13
(7) Determining the nature, form, and capacity of all containers 14
to be used by licensees to contain cannabis, cannabis concentrates, 15
useable cannabis, and cannabis-infused products, and their labeling 16
requirements; 17
(8) In consultation with the department of agriculture and the 18
department, establishing classes of cannabis, cannabis concentrates, 19
useable cannabis, and cannabis-infused products according to grade, 20
condition, cannabinoid profile, THC concentration, CBD concentration, 21
or other qualitative measurements deemed appropriate by the board;22
(9) ((Establishing)) The board establishing reasonable time, 23
place, and manner restrictions and requirements regarding advertising 24
of cannabis, cannabis concentrates, useable cannabis, and cannabis-25
infused products that are not inconsistent with the provisions of 26
this chapter, taking into consideration: 27
(a) Federal laws relating to cannabis that are applicable within 28
Washington state; 29
(b) Minimizing exposure of people under 21 years of age to the 30
advertising; 31
(c) The inclusion of medically and scientifically accurate 32
information about the health and safety risks posed by cannabis use 33
in the advertising; and 34
(d) Ensuring that retail outlets with medical cannabis 35
endorsements may advertise themselves as medical retail outlets;36
(10) ((Specifying)) The board specifying and regulating the time 37
and periods when, and the manner, methods, and means by which, 38
licensees shall transport and deliver cannabis, cannabis 39
p. 32 HB 1067
concentrates, useable cannabis, and cannabis-infused products within 1
the state; 2
(11) In consultation with the department ((and the department of 3
agriculture)), the board and the director, as applicable, prescribing 4
methods of producing, processing, and packaging cannabis, cannabis 5
concentrates, useable cannabis, and cannabis-infused products; 6
conditions of sanitation; and standards of ingredients, quality, and 7
identity of cannabis, cannabis concentrates, useable cannabis, and 8
cannabis-infused products produced, processed, packaged, or sold by 9
licensees; 10
(12) Specifying procedures for identifying, seizing, 11
confiscating, destroying, and donating to law enforcement for 12
training purposes all cannabis, cannabis concentrates, useable 13
cannabis, and cannabis-infused products produced, processed, 14
packaged, labeled, or offered for sale in this state that do not 15
conform in all respects to the standards prescribed by this chapter 16
or the rules of the board or the director. 17
Sec. 11. RCW 69.50.348 and 2024 c 69 s 2 are each amended to 18
read as follows: 19
(1) On a schedule determined by the ((board)) director, every 20
licensed cannabis producer and processor must submit representative 21
samples of cannabis, useable cannabis, or cannabis-infused products 22
produced or processed by the licensee to an independent, third-party 23
testing laboratory meeting the accreditation requirements established 24
by the state department of agriculture. The purpose of testing 25
representative samples is to certify compliance with quality 26
assurance and product standards adopted by the board under RCW 27
69.50.342 or the department of health under RCW 69.50.375. In 28
conducting tests of cannabis product samples, testing laboratories 29
must adhere to laboratory quality standards adopted by the state 30
department of agriculture under chapter 15.150 RCW. Any sample 31
remaining after testing shall be destroyed by the laboratory or 32
returned to the licensee submitting the sample. 33
(2) Independent, third-party testing laboratories performing 34
cannabis product testing under subsection (1) of this section must 35
obtain and maintain accreditation. 36
(3) Licensees must submit the results of inspection and testing 37
for quality assurance and product standards required under RCW 38
p. 33 HB 1067
69.50.342 to the ((board)) director on a form developed by the 1
((board)) director. 2
(4) If a representative sample inspected and tested under this 3
section does not meet the applicable quality assurance and product 4
standards established by the ((board)) director then, except as 5
otherwise provided by the ((board)) department in rule, the entire 6
lot from which the sample was taken must be destroyed.7
(5) The department of agriculture may determine, assess, and 8
collect annual fees to support the direct and indirect costs of 9
implementing a state cannabis product testing laboratory 10
accreditation program and laboratory quality standards program, 11
except for the initial program development costs. The department of 12
agriculture may establish a payment schedule requiring periodic 13
installments of the annual fee. The department of agriculture must 14
review and update its fee schedule biennially. The costs of cannabis 15
product testing laboratory accreditation are those incurred by the 16
department of agriculture in administering and enforcing the 17
accreditation program. The costs may include, but are not limited to, 18
the costs incurred in undertaking the following accreditation 19
functions: 20
(a) Evaluating the protocols and procedures used by a laboratory;21
(b) Performing on-site audits; 22
(c) Evaluating participation and successful completion of 23
proficiency testing; 24
(d) Determining the capability of a laboratory to produce 25
accurate and reliable test results; and 26
(e) Such other accreditation activities as the department of 27
agriculture deems appropriate. 28
(6) The department of agriculture and the interagency 29
coordination team created in RCW 15.150.020 must act cooperatively to 30
ensure effective implementation and administration of this section.31
(7) All fees collected under this section must be deposited in 32
the dedicated cannabis account created in RCW 69.50.530.33
Sec. 12. RCW 69.50.351 and 2022 c 16 s 69 are each amended to 34
read as follows: 35
Except as provided by chapter 42.52 RCW, the director and no 36
member of the board , and no employee of the board or the director, 37
shall have any interest, directly or indirectly, in the producing, 38
processing, or sale of cannabis, useable cannabis, or cannabis-39
p. 34 HB 1067
infused products, or derive any profit or remuneration from the sale 1
of cannabis, useable cannabis, or cannabis-infused products other 2
than the salary or wages payable to him or her in respect of his or 3
her office or position, and shall receive no gratuity from any person 4
in connection with the business. 5
Sec. 13. RCW 69.50.363 and 2022 c 16 s 73 are each amended to 6
read as follows: 7
The following acts, when performed by a validly licensed cannabis 8
processor or employee of a validly licensed cannabis processor in 9
compliance with rules adopted by the board or the director, as 10
applicable, to implement and enforce chapter 3, Laws of 2013, do not 11
constitute criminal or civil offenses under Washington state law:12
(1) Purchase and receipt of cannabis that has been properly 13
packaged and labeled from a cannabis producer validly licensed under 14
chapter 3, Laws of 2013; 15
(2) Possession, processing, packaging, and labeling of quantities 16
of cannabis, useable cannabis, and cannabis-infused products that do 17
not exceed the maximum amounts established by the board under RCW 18
69.50.345(4); 19
(3) Delivery, distribution, and sale of useable cannabis or 20
cannabis-infused products to a cannabis retailer validly licensed 21
under chapter 3, Laws of 2013; and 22
(4) Delivery, distribution, and sale of useable cannabis, 23
cannabis concentrates, or cannabis-infused products to a federally 24
recognized Indian tribe as permitted under an agreement between the 25
state and the tribe entered into under RCW 43.06.490.26
Sec. 14. RCW 69.50.366 and 2022 c 16 s 74 are each amended to 27
read as follows: 28
The following acts, when performed by a validly licensed cannabis 29
producer or employee of a validly licensed cannabis producer in 30
compliance with rules adopted by the board or the director, as 31
applicable, to implement and enforce this chapter, do not constitute 32
criminal or civil offenses under Washington state law:33
(1) Production or possession of quantities of cannabis that do 34
not exceed the maximum amounts established by the board under RCW 35
69.50.345(3); 36
p. 35 HB 1067
(2) Delivery, distribution, and sale of cannabis to a cannabis 1
processor or another cannabis producer validly licensed under this 2
chapter; 3
(3) Delivery, distribution, and sale of immature plants or clones 4
and cannabis seeds to a licensed cannabis researcher, and to receive 5
or purchase immature plants or clones and seeds from a licensed 6
cannabis researcher; and 7
(4) Delivery, distribution, and sale of cannabis or useable 8
cannabis to a federally recognized Indian tribe as permitted under an 9
agreement between the state and the tribe entered into under RCW 10
43.06.490. 11
Sec. 15. RCW 69.50.372 and 2022 c 16 s 76 are each amended to 12
read as follows: 13
(1) A cannabis research license is established that permits a 14
licensee to produce, process, and possess cannabis for the following 15
limited research purposes: 16
(a) To test chemical potency and composition levels;17
(b) To conduct clinical investigations of cannabis-derived drug 18
products; 19
(c) To conduct research on the efficacy and safety of 20
administering cannabis as part of medical treatment; and21
(d) To conduct genomic or agricultural research.22
(2) As part of the application process for a cannabis research 23
license, an applicant must submit to the ((board's)) director's 24
designated scientific reviewer a description of the research that is 25
intended to be conducted. The ((board)) director must select a 26
scientific reviewer to review an applicant's research project and 27
determine that it meets the requirements of subsection (1) of this 28
section, as well as assess the following: 29
(a) Project quality, study design, value, or impact;30
(b) Whether applicants have the appropriate personnel, expertise, 31
facilities/infrastructure, funding, and human/animal/other federal 32
approvals in place to successfully conduct the project; and33
(c) Whether the amount of cannabis to be grown by the applicant 34
is consistent with the project's scope and goals. 35
If the scientific reviewer determines that the research project 36
does not meet the requirements of subsection (1) of this section, the 37
application must be denied. 38
p. 36 HB 1067
(3) A cannabis research licensee may only sell cannabis grown or 1
within its operation to other cannabis research licensees. The 2
((board)) director may revoke a cannabis research license for 3
violations of this subsection. 4
(4) A cannabis research licensee may contract with the University 5
of Washington or Washington State University to perform research in 6
conjunction with the university. All research projects, not including 7
those projects conducted pursuant to a contract entered into under 8
RCW 28B.20.502(3), must be approved by the scientific reviewer and 9
meet the requirements of subsection (1) of this section.10
(5) In establishing a cannabis research license, the ((board)) 11
director may adopt rules on the following: 12
(a) Application requirements; 13
(b) Cannabis research license renewal requirements, including 14
whether additional research projects may be added or considered;15
(c) Conditions for license revocation; 16
(d) Security measures to ensure cannabis is not diverted to 17
purposes other than research; 18
(e) Amount of plants, useable cannabis, cannabis concentrates, or 19
cannabis-infused products a licensee may have on its premises;20
(f) Licensee reporting requirements; 21
(g) Conditions under which cannabis grown by licensed cannabis 22
producers and other product types from licensed cannabis processors 23
may be donated to cannabis research licensees; and24
(h) Additional requirements deemed necessary by the ((board)) 25
director. 26
(6) The production, processing, possession, delivery, donation, 27
and sale of cannabis, including immature plants or clones and seeds, 28
in accordance with this section, RCW 69.50.366(3), and the rules 29
adopted to implement and enforce this section and RCW 69.50.366(3), 30
by a validly licensed cannabis researcher, shall not be a criminal or 31
civil offense under Washington state law. Every cannabis research 32
license must be issued in the name of the applicant, must specify the 33
location at which the cannabis researcher intends to operate, which 34
must be within the state of Washington, and the holder thereof may 35
not allow any other person to use the license. 36
(7) The application fee for a cannabis research license is ((two 37
hundred fifty dollars)) $250. The annual fee for issuance and renewal 38
of a cannabis research license is ((one thousand three hundred 39
dollars)) $1,300. The applicant must pay the cost of the review 40
p. 37 HB 1067
process directly to the scientific reviewer as designated by the 1
((board)) director. 2
(8) The scientific reviewer shall review any reports made by 3
cannabis research licensees under ((board)) director rule and provide 4
the ((board)) director with its determination on whether the research 5
project continues to meet research qualifications under this section.6
(9) For the purposes of this section, "scientific reviewer" means 7
an organization that convenes or contracts with persons who have the 8
training and experience in research practice and research methodology 9
to determine whether a project meets the criteria for a cannabis 10
research license under this section and to review any reports 11
submitted by cannabis research licensees under ((board)) director 12
rule. "Scientific reviewers" include, but are not limited to, 13
educational institutions, research institutions, peer review bodies, 14
or such other organizations that are focused on science or research 15
in its day-to-day activities. 16
Sec. 16. RCW 69.50.395 and 2022 c 16 s 83 are each amended to 17
read as follows: 18
(1) A licensed cannabis business may enter into an agreement with 19
any person, business, or other entity for: 20
(a) Any goods or services that are registered as a trademark 21
under federal law, under chapter 19.77 RCW, or under any other state 22
or international trademark law; 23
(b) Any unregistered trademark, trade name, or trade dress; or24
(c) Any trade secret, technology, or proprietary information used 25
to manufacture a cannabis product or used to provide a service 26
related to any cannabis business. 27
(2) Any agreements entered into by a licensed cannabis business, 28
as authorized under this section, must be disclosed to the board or 29
the director, as applicable, and may include: 30
(a) A royalty fee or flat rate calculated based on sales of each 31
product that includes the intellectual property or was manufactured 32
or sold using the licensed intellectual property or service, provided 33
that the royalty fee is no greater than an amount equivalent to 34
((ten)) 10 percent of the licensed cannabis business's gross sales 35
derived from the sale of such product; 36
(b) A flat rate or lump sum calculated based on time or 37
milestones; 38
p. 38 HB 1067
(c) Terms giving either party exclusivity or qualified 1
exclusivity as it relates to use of the intellectual property;2
(d) Quality control standards as necessary to protect the 3
integrity of the intellectual property; 4
(e) Enforcement obligations to be undertaken by the licensed 5
cannabis business; 6
(f) Covenants to use the licensed intellectual property; and7
(g) Assignment of licensor improvements of the intellectual 8
property. 9
(3) A person, business, or entity that enters into an agreement 10
with a licensed cannabis business, where both parties to the 11
agreement are in compliance with the terms of this section, is exempt 12
from the requirement to qualify for a cannabis business license for 13
purposes of the agreements authorized by subsection (1) of this 14
section. 15
(4) All agreements entered into by a licensed cannabis business, 16
as authorized by this section, are subject to the board's or 17
director's recordkeeping requirements as established by rule.18
Sec. 17. RCW 69.50.530 and 2023 c 470 s 1014 are each amended to 19
read as follows: 20
The dedicated cannabis account is created in the state treasury. 21
All moneys received by the board or the director, as applicable , or 22
any employee thereof, from cannabis-related activities must be 23
deposited in the account. Unless otherwise provided in chapter 4, 24
Laws of 2015 2nd sp. sess., all cannabis excise taxes collected from 25
sales of cannabis, useable cannabis, cannabis concentrates, and 26
cannabis-infused products under RCW 69.50.535, and the license fees, 27
penalties, and forfeitures derived under this chapter from cannabis 28
producer, cannabis processor, cannabis researcher, and cannabis 29
retailer licenses, must be deposited in the account. Moneys in the 30
account may only be spent after appropriation. 31
Sec. 18. RCW 69.50.540 and 2023 c 470 s 1015 are each amended to 32
read as follows: 33
(1) For the purposes of this subsection (1), the legislature must 34
appropriate the amounts provided in this subsection:35
(a) $12,500,000 annually to the board or the director for 36
administration of this chapter as appropriated and distributed in the 37
omnibus appropriations act; 38
p. 39 HB 1067
(b) $11,000,000 annually to the department of health for the 1
following: 2
(i) Creation, implementation, operation, and management of a 3
cannabis, vapor product, and commercial tobacco education and public 4
health program that contains the following: 5
(A) A cannabis use public health hotline that provides referrals 6
to substance abuse treatment providers, uses evidence-based or 7
research-based public health approaches to minimizing the harms 8
associated with cannabis use, and does not solely advocate an 9
abstinence-only approach; 10
(B) Programs that support development and implementation of 11
coordinated intervention strategies for the prevention and reduction 12
of commercial tobacco, vapor product, and cannabis use by youth and 13
cannabis cessation treatment services, including grant programs to 14
local health departments or other local community agencies;15
(C) Media-based education campaigns across television, internet, 16
radio, print, and out-of-home advertising, separately targeting youth 17
and adults, that provide medically and scientifically accurate 18
information about the health and safety risks posed by cannabis use; 19
and 20
(D) Outreach to priority populations regarding commercial 21
tobacco, vapor product, and cannabis use, prevention, and cessation; 22
and 23
(ii) The Washington poison control center; 24
(c)(i) $3,000,000 annually to the department of commerce to fund 25
cannabis social equity grants under RCW 43.330.540; and26
(ii) $200,000 annually to the department of commerce to fund 27
technical assistance through a roster of mentors under RCW 28
43.330.540; 29
(d) $200,000 annually, until June 30, 2032, to the health care 30
authority to contract with the Washington state institute for public 31
policy to conduct the cost-benefit evaluations and produce the 32
reports described in RCW 69.50.550; 33
(e) $25,000 annually to the University of Washington alcohol and 34
drug abuse institute for the creation, maintenance, and timely 35
updating of web-based public education materials providing medically 36
and scientifically accurate information about the health and safety 37
risks posed by cannabis use; 38
(f) $300,000 annually to the University of Washington and 39
$175,000 annually to the Washington State University for research on 40
p. 40 HB 1067
the short-term and long-term effects of cannabis use to include, but 1
not be limited to, formal and informal methods for estimating and 2
measuring intoxication and impairments, and for the dissemination of 3
such research; 4
(g) $550,000 annually to the office of the superintendent of 5
public instruction to fund grants to building bridges programs under 6
chapter 28A.175 RCW; 7
(h) $2,423,000 for fiscal year 2022 and $2,423,000 for fiscal 8
year 2023 to the Washington state patrol for a drug enforcement task 9
force; 10
(i) $270,000 for fiscal year 2022 and $290,000 for fiscal year 11
2023 to the department of ecology for implementation of accreditation 12
of cannabis product testing laboratories; 13
(j) $800,000 for each of fiscal years 2020 through 2023 to the 14
department of health for the administration of the cannabis 15
authorization database; and 16
(k) $621,000 for fiscal year 2022 and $635,000 for fiscal year 17
2023 to the department of agriculture for compliance-based laboratory 18
analysis of pesticides in cannabis. 19
(2) ((Subsections [Subsection])) Subsection (1)(a) through (g) of 20
this section must be adjusted annually based on the United States 21
bureau of labor statistics' consumer price index for the Seattle 22
area. 23
(3) After appropriation of the amounts identified in subsection 24
(1) of this section, the legislature must annually appropriate such 25
remaining amounts for the purposes listed in this subsection (3) as 26
follows: 27
(a) Fifty-two percent to the state basic health plan trust 28
account to be administered by the Washington basic health plan 29
administrator and used as provided under chapter 70.47 RCW;30
(b) Eleven percent to the health care authority to:31
(i) Design and administer the Washington state healthy youth 32
survey, analyze the collected data, and produce reports, in 33
collaboration with the office of the superintendent of public 34
instruction, department of health, department of commerce, family 35
policy council, ((and)) board, and director . The survey must be 36
conducted at least every two years and include questions regarding, 37
but not necessarily limited to, academic achievement, age at time of 38
substance use initiation, antisocial behavior of friends, attitudes 39
toward antisocial behavior, attitudes toward substance use, laws and 40
p. 41 HB 1067
community norms regarding antisocial behavior, family conflict, 1
family management, parental attitudes toward substance use, peer 2
rewarding of antisocial behavior, perceived risk of substance use, 3
and rebelliousness. Funds disbursed under this subsection may be used 4
to expand administration of the healthy youth survey to student 5
populations attending institutions of higher education in Washington;6
(ii) Develop, implement, maintain, and evaluate programs and 7
practices aimed at the prevention or reduction of maladaptive 8
substance use, substance use disorder, substance abuse or substance 9
dependence, as these terms are defined in the diagnostic and 10
statistical manual of mental disorders, among middle school and high 11
school-age students, whether as an explicit goal of a given program 12
or practice or as a consistently corresponding effect of its 13
implementation, mental health services for children and youth, and 14
services for pregnant and parenting women. In deciding which programs 15
and practices to fund under this subsection (3)(b)(ii), the director 16
of the health care authority must consult, at least annually, with 17
the University of Washington's social development research group and 18
the University of Washington's alcohol and drug abuse institute; and19
(iii) Contract with community health centers to provide primary 20
health and dental care services, migrant health services, and 21
maternity health care services as provided under RCW 41.05.220;22
(c)(i) One and one-half percent to counties, cities, and towns 23
where licensed cannabis retailers are physically located. Each 24
jurisdiction must receive a share of the revenue distribution under 25
this subsection (3)(c)(i) based on the proportional share of the 26
total revenues generated in the individual jurisdiction from the 27
taxes collected under RCW 69.50.535, from licensed cannabis retailers 28
physically located in each jurisdiction. For purposes of this 29
subsection (3)(c), 100 percent of the proportional amount attributed 30
to a retailer physically located in a city or town must be 31
distributed to the city or town; 32
(ii) Three and one-half percent to counties, cities, and towns 33
ratably on a per capita basis. Counties must receive 60 percent of 34
the distribution based on each county's total proportional 35
population. Funds may only be distributed to jurisdictions that do 36
not prohibit the siting of any state licensed cannabis producer, 37
processor, or retailer; 38
(iii) By September 15th of each year, the board must provide the 39
state treasurer the annual distribution amount made under this 40
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subsection (3)(c), if any, for each county and city as determined in 1
(c)(i) and (ii) of this subsection; and 2
(iv) Distribution amounts allocated to each county, city, and 3
town in (c)(i) and (ii) of this subsection must be distributed in 4
four installments by the last day of each fiscal quarter; and5
(d) Thirty-two percent must be deposited in the state general 6
fund. 7
Sec. 19. RCW 69.50.564 and 2022 c 16 s 108 are each amended to 8
read as follows: 9
(1) This section applies to the board's issuance of 10
administrative violations to licensed cannabis producers, processors, 11
retailers, transporters, and researchers, when a settlement 12
conference is held between a hearing officer or designee of the board 13
or the director, as applicable, and the cannabis licensee that 14
received a notice of an alleged administrative violation or 15
violations. 16
(2) If a settlement agreement is entered between a cannabis 17
licensee and a hearing officer or designee of the board or the 18
director, as applicable, at or after a settlement conference, the 19
terms of the settlement agreement must be given substantial weight by 20
the board or the director, as applicable. 21
(3) For the purposes of this section: 22
(a) "Settlement agreement" means the agreement or compromise 23
between a licensed cannabis producer, processor, retailer, 24
researcher, transporter, or researcher and the hearing officer or 25
designee of the board or the director, as applicable, with authority 26
to participate in the settlement conference, that:27
(i) Includes the terms of the agreement or compromise regarding 28
an alleged violation or violations by the licensee of this chapter, 29
chapter 69.51A RCW, or rules adopted under either chapter, and any 30
related penalty or licensing restriction; and 31
(ii) Is in writing and signed by the licensee and the hearing 32
officer or designee of the board or the director, as applicable.33
(b) "Settlement conference" means a meeting or discussion between 34
a licensed cannabis producer, processor, retailer, researcher, 35
transporter, researcher, or authorized representative of any of the 36
preceding licensees, and a hearing officer or designee of the board 37
or the director, as applicable , held for purposes such as discussing 38
the circumstances surrounding an alleged violation of law or rules by 39
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the licensee, the recommended penalty, and any aggravating or 1
mitigating factors, and that is intended to resolve the alleged 2
violation before an administrative hearing or judicial proceeding is 3
initiated. 4
Sec. 20. RCW 69.50.565 and 2015 2nd sp.s. c 4 s 202 are each 5
amended to read as follows: 6
(1) Whenever the board or the director, as applicable, determines 7
that a limited liability business entity has collected trust fund 8
taxes and has failed to remit those taxes to the board or the 9
director, as applicable, and that business entity has been 10
terminated, dissolved, or abandoned, or is insolvent, the board or 11
the director, as applicable, may pursue collection of the entity's 12
unpaid trust fund taxes, including penalties on those taxes, against 13
any or all of the responsible individuals. For purposes of this 14
subsection, "insolvent" means the condition that results when the sum 15
of the entity's debts exceeds the fair market value of its assets. 16
The board or the director, as applicable, may presume that an entity 17
is insolvent if the entity refuses to disclose to the board or the 18
director, as applicable, the nature of its assets and liabilities.19
(2)(a) For a responsible individual who is the current or a 20
former chief executive or chief financial officer, liability under 21
this section applies regardless of fault or whether the individual 22
was or should have been aware of the unpaid trust fund tax liability 23
of the limited liability business entity. 24
(b) For any other responsible individual, liability under this 25
section applies only if he or she willfully failed to pay or to cause 26
to be paid to the board the trust fund taxes due from the limited 27
liability business entity. 28
(3)(a) Except as provided in this subsection (3)(a), a 29
responsible individual who is the current or a former chief executive 30
or chief financial officer is liable under this section only for 31
trust fund tax liability accrued during the period that he or she was 32
the chief executive or chief financial officer. However, if the 33
responsible individual had the responsibility or duty to remit 34
payment of the limited liability business entity's trust fund taxes 35
to the board or the director, as applicable, during any period of 36
time that the person was not the chief executive or chief financial 37
officer, that individual is also liable for trust fund tax liability 38
that became due during the period that he or she had the duty to 39
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remit payment of the limited liability business entity's taxes to the 1
board or the director, as applicable, but was not the chief executive 2
or chief financial officer. 3
(b) All other responsible individuals are liable under this 4
section only for trust fund tax liability that became due during the 5
period he or she had the responsibility or duty to remit payment of 6
the limited liability business entity's taxes to the board or the 7
director, as applicable. 8
(4) Persons described in subsection (3)(b) of this section are 9
exempt from liability under this section in situations where 10
nonpayment of the limited liability business entity's trust fund 11
taxes was due to reasons beyond their control as determined by the 12
board or the director by rule. 13
(5) Any person having been issued a notice of unpaid trust fund 14
taxes under this section is entitled to an administrative hearing 15
under RCW 69.50.334 and any such rules the board or director may 16
adopt. 17
(6) This section does not relieve the limited liability business 18
entity of its trust fund tax liability or otherwise impair other tax 19
collection remedies afforded by law. 20
(7) The definitions in this subsection apply throughout this 21
section unless the context clearly requires otherwise.22
(a) (("Board" means the state liquor and cannabis board.23
(b))) "Chief executive" means: The president of a corporation or 24
for other entities or organizations other than corporations or if the 25
corporation does not have a president as one of its officers, the 26
highest ranking executive manager or administrator in charge of the 27
management of the company or organization. 28
(((c))) (b) "Chief financial officer" means: The treasurer of a 29
corporation or for entities or organizations other than corporations 30
or if a corporation does not have a treasurer as one of its officers, 31
the highest senior manager who is responsible for overseeing the 32
financial activities of the entire company or organization.33
(((d))) (c) "Limited liability business entity" means a type of 34
business entity that generally shields its owners from personal 35
liability for the debts, obligations, and liabilities of the entity, 36
or a business entity that is managed or owned in whole or in part by 37
an entity that generally shields its owners from personal liability 38
for the debts, obligations, and liabilities of the entity. Limited 39
liability business entities include corporations, limited liability 40
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companies, limited liability partnerships, trusts, general 1
partnerships and joint ventures in which one or more of the partners 2
or parties are also limited liability business entities, and limited 3
partnerships in which one or more of the general partners are also 4
limited liability business entities. 5
(((e))) (d) "Manager" has the same meaning as in RCW 6
((25.15.005)) 25.15.006. 7
(((f))) (e) "Member" has the same meaning as in RCW ((25.15.005)) 8
25.15.006, except that the term only includes members of member-9
managed limited liability companies. 10
(((g))) (f) "Officer" means any officer or assistant officer of a 11
corporation, including the president, vice president, secretary, and 12
treasurer. 13
(((h))) (g)(i) "Responsible individual" includes any current or 14
former officer, manager, member, partner, or trustee of a limited 15
liability business entity with unpaid trust fund tax liability.16
(ii) "Responsible individual" also includes any current or former 17
employee or other individual, but only if the individual had the 18
responsibility or duty to remit payment of the limited liability 19
business entity's unpaid trust fund tax liability.20
(iii) Whenever any taxpayer has one or more limited liability 21
business entities as a member, manager, or partner, "responsible 22
individual" also includes any current and former officers, members, 23
or managers of the limited liability business entity or entities or 24
of any other limited liability business entity involved directly in 25
the management of the taxpayer. For purposes of this subsection 26
(((7)(h)(iii))) (7)(g)(iii), "taxpayer" means a limited liability 27
business entity with unpaid trust fund taxes. 28
(((i))) (h) "Trust fund taxes" means taxes collected from buyers 29
and deemed held in trust under RCW 69.50.535. 30
(((j))) (i) "Willfully failed to pay or to cause to be paid" 31
means that the failure was the result of an intentional, conscious, 32
and voluntary course of action. 33
Sec. 21. RCW 69.50.580 and 2022 c 16 s 111 are each amended to 34
read as follows: 35
(1) Applicants for a cannabis producer's, cannabis processor's, 36
cannabis researcher's or cannabis retailer's license under this 37
chapter must display a sign provided by the board on the outside of 38
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the premises to be licensed notifying the public that the premises 1
are subject to an application for such license. The sign must:2
(a) Contain text with content sufficient to notify the public of 3
the nature of the pending license application, the date of the 4
application, the name of the applicant, and contact information for 5
the board or the director, as applicable; 6
(b) Be conspicuously displayed on, or immediately adjacent to, 7
the premises subject to the application and in the location that is 8
most likely to be seen by the public; 9
(c) Be of a size sufficient to ensure that it will be readily 10
seen by the public; and 11
(d) Be posted within seven business days of the submission of the 12
application to the board or the director, as applicable.13
(2) The board or the director, as applicable, must adopt such 14
rules as are necessary for the implementation of this section, 15
including rules pertaining to the size of the sign and the text 16
thereon, the textual content of the sign, the fee for providing the 17
sign, and any other requirements necessary to ensure that the sign 18
provides adequate notice to the public. 19
(3)(a) A city, town, or county may adopt an ordinance requiring 20
individual notice by an applicant for a cannabis producer's, cannabis 21
processor's, cannabis researcher's, or cannabis retailer's license 22
under this chapter, sixty days prior to issuance of the license, to 23
any elementary or secondary school, playground, recreation center or 24
facility, child care center, church, public park, public transit 25
center, library, or any game arcade admission to which is not 26
restricted to persons aged ((twenty-one)) 21 years or older, that is 27
within ((one thousand)) 1,000 feet of the perimeter of the grounds of 28
the establishment seeking licensure. The notice must provide the 29
contact information for the board where any of the owners or 30
operators of these entities may submit comments or concerns about the 31
proposed business location. 32
(b) For the purposes of this subsection, "church" means a 33
building erected for and used exclusively for religious worship and 34
schooling or other activity in connection therewith.35
Sec. 22. RCW 69.50.585 and 2016 sp.s. c 17 s 1 are each amended 36
to read as follows: 37
(1)(a) Nothing in this chapter prohibits a producer or processor 38
from providing retailers branded promotional items which are of 39
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nominal value, singly or in the aggregate. Such items include but are 1
not limited to: Lighters, postcards, pencils, matches, shirts, hats, 2
visors, and other similar items. Branded promotional items:3
(i) Must be used exclusively by the retailer or its employees in 4
a manner consistent with its license; 5
(ii) Must bear imprinted advertising matter of the producer or 6
processor only; 7
(iii) May be provided by a producer or processor only to 8
retailers and their employees and may not be provided by or through 9
retailers or their employees to retail customers; and10
(iv) May not be targeted to youth, including any: (A) Statement, 11
picture, or illustration that depicts a child or other person under 12
legal age for consuming cannabis; (B) objects, such as toys or 13
characters, suggesting the presence of a child, or any other 14
depiction designed in any manner to be especially appealing to 15
children or other persons under legal age to consume cannabis; (C) 16
advertising designed in any manner that would be especially appealing 17
to children or other persons under ((twenty-one)) 21 years of age; or 18
(D) advertising implying that the consumption of cannabis is 19
fashionable or the accepted course of behavior for persons under 20
((twenty-one)) 21 years of age. 21
(b) A producer or processor is not obligated to provide any such 22
branded promotional items, and a retailer may not require a producer 23
or processor to provide such branded promotional items as a condition 24
for selling any cannabis to the retailer. 25
(c) Any producer, processor, or retailer or any other person 26
asserting that the provision of branded promotional items as allowed 27
in (a) of this subsection has resulted or is more likely than not to 28
result in undue influence or an adverse impact on public health and 29
safety, or is otherwise inconsistent with the criteria in (a) of this 30
subsection may file a complaint with the ((state liquor and 31
cannabis)) board or the director, as applicable . Upon receipt of a 32
complaint the ((state liquor and cannabis )) board or the director, as 33
applicable, may conduct such investigation as it deems appropriate in 34
the circumstances. If the investigation reveals the provision of 35
branded promotional items has resulted in or is more likely than not 36
to result in undue influence or has resulted or is more likely than 37
not to result in an adverse impact on public health and safety or is 38
otherwise inconsistent with (a) of this subsection the ((state liquor 39
and cannabis )) board or the director, as applicable, may issue an 40
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administrative violation notice to the producer, processor, or 1
retailer. The recipient of the administrative violation notice may 2
request a hearing under chapter 34.05 RCW. 3
(2) Nothing in this chapter prohibits: 4
(a) Producers or processors from listing on their internet 5
websites information related to retailers who sell or promote their 6
products, including direct links to the retailers' internet websites; 7
and 8
(b) Retailers from listing on their internet websites information 9
related to producers or processors whose products those retailers 10
sell or promote, including direct links to the producers or 11
processors' websites; or 12
(c) Producers, processors, and retailers from producing, jointly 13
or together with regional, state, or local industry associations, 14
brochures and materials promoting tourism in Washington state which 15
contain information regarding retail licensees, producers, 16
processors, and their products. 17
(3) Nothing in this chapter prohibits the performance of personal 18
services offered from time to time by a producer or processor to 19
retailers when the personal services are (a) conducted at a licensed 20
premises, and (b) intended to inform, educate, or enhance customers' 21
knowledge or experience of the manufacturer's products. The 22
performance of personal services may include participation in events 23
and the use of informational or educational activities at the 24
premises of a retailer holding a license under this chapter. A 25
producer or processor is not obligated to perform any such personal 26
services, and a retail licensee may not require a producer or 27
processor to conduct any personal service as a condition for selling 28
cannabis to the retail licensee. 29
(4) For the purposes of this section, "nominal value" means a 30
value of ((thirty dollars)) $30 or less. 31
NEW SECTION. Sec. 23. This act is necessary for the immediate 32
preservation of the public peace, health, or safety, or support of 33
the state government and its existing public institutions, and takes 34
effect July 1, 2025.35
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