Cannabis regulation

AN ACT Relating to creating regulatory certainty and consistency 1
for Washington's regulated cannabis system by establishing 2
enforcement priorities, creating regulatory processes, and detecting 3
and preventing the illegal inversion and diversion of cannabis and 4
cannabis products into and out of Washington's regulated cannabis 5
system; amending RCW 69.50.562, 69.50.345, 69.50.342, and 34.05.328; 6
adding a new section to chapter 69.50 RCW; and creating a new 7
section. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:9
NEW SECTION. Sec. 1. The regulated cannabis industry in 10
Washington state has, year over year, demonstrated the highest rates 11
of preventing youth access among all the regulated sectors. In 12
addition, the regulated businesses have demonstrated a commitment to 13
the highest standards of safety and contribution to the state by 14
submitting to high testing standards and regulatory oversight. 15
Further, the regulated industry faces extreme challenges in competing 16
with the unregulated illicit market because of the high taxes, 17
inconsistent enforcement and complicated regulatory burdens placed on 18
the regulated market. The legislature intends to partner with those 19
who choose to be regulated and taxed to prevent illegal, unsafe 20
activities that threaten the promise of a new approach to cannabis. 21
H-0818.1
HOUSE BILL 1884
State of Washington 69th Legislature 2025 Regular Session
By Representatives Waters and Reeves
Read first time 02/07/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1884
Washington has established precedent in creating regulatory 1
certainty, consistency in and prioritization of enforcement 2
activities within the department of labor and industries. The 3
legislature has also previously adopted legislation describing its 4
direction to the agency regarding upholding compliance while 5
prioritizing issues that concern youth access and public safety. 6
Therefore, it is the intent of the legislature that the liquor and 7
cannabis board establish policies and procedures to create more 8
regulatory certainty and set priorities for enforcement activities to 9
focus such activities on the violations that most impact public 10
health and safety and the sustainability of the regulated market. 11
Further, it is the intent of the legislature that the two highest 12
priorities for enforcement shall be youth prevention and prevention 13
of inversion and diversion of cannabis. Finally, it is the intent of 14
the legislature that the board place less priority and effort in 15
pursuing enforcement actions on businesses that do not have a direct 16
impact on these priorities. 17
Sec. 2. RCW 69.50.562 and 2022 c 16 s 106 are each amended to 18
read as follows: 19
(1) The board must prescribe procedures for the following:20
(a) The establishment, within existing resources, and through a 21
collaborative public process including outreach to the regulated 22
cannabis industry, of a hierarchy of enforcement priorities to guide 23
the board's enforcement of this chapter and the board's rules 24
implementing this chapter. The highest enforcement priority in the 25
hierarchy must be placed on youth prevention and prevention of 26
inversion and diversion of cannabis and cannabis products into and 27
out of Washington's cannabis market. The hierarchy must place less 28
emphasis on enforcement of administrative violations that are not the 29
highest enforcement priority;30
(b) Issuance of written warnings or notices to correct in lieu of 31
penalties, sanctions, or other violations with respect to regulatory 32
violations that have no direct or immediate relationship to public 33
safety as defined by the board; 34
(((b))) (c) Waiving any fines, civil penalties, or administrative 35
sanctions for violations, that have no direct or immediate 36
relationship to public safety, and are corrected by the licensee 37
within a reasonable amount of time as designated by the board; ((and38
p. 2 HB 1884
(c))) (d) A compliance program in accordance with chapter 43.05 1
RCW and RCW 69.50.342, whereby licensees may request compliance 2
assistance and inspections without issuance of a penalty, sanction, 3
or other violation provided that any noncompliant issues are resolved 4
within a specified period of time; and5
(e) The convening of a meeting of impacted parties, within 6
existing resources, and no later than 20 business days before the 7
effective date of any significant legislative rule, as defined in RCW 8
34.05.328, in order to: (i) Identify ambiguities and remaining areas 9
of concern in the rule; (ii) coordinate education and public 10
relations efforts by all parties; (iii) provide comments regarding 11
internal board training and enforcement plans; and (iv) provide 12
comments regarding appropriate evaluation mechanisms to determine the 13
effectiveness of the new rule. The meeting must include a balanced 14
representation of licensees impacted, board personnel, and other 15
agencies or key stakeholder groups as determined by the board. An 16
existing advisory committee may be used if appropriate.17
(2) ((The)) Subject to subsection (1)(a) of this section, the 18
board must adopt rules prescribing penalties for violations of this 19
chapter. The board: 20
(a) May establish escalating penalties for violation of this 21
chapter, provided that the cumulative effect of any such escalating 22
penalties cannot last beyond two years and the escalation applies 23
only to multiple violations that are the same or similar in nature;24
(b) May not include cancellation of a license for a single 25
violation, unless the board can prove by a preponderance of the 26
evidence: 27
(i) Diversion of cannabis product to the illicit market or sales 28
across state lines; 29
(ii) Furnishing of cannabis product to minors;30
(iii) Diversion of revenue to criminal enterprises, gangs, 31
cartels, or parties not qualified to hold a cannabis license based on 32
criminal history requirements; 33
(iv) The commission of noncannabis-related crimes; or34
(v) Knowingly making a misrepresentation of fact to the board, an 35
officer of the board, or an employee of the board related to conduct 36
or an action that is, or alleged to be, any of the violations 37
identified in (b)(i) through (iv) of this subsection (2);38
p. 3 HB 1884
(c) May include cancellation of a license for cumulative 1
violations only if a cannabis licensee commits at least four 2
violations within a two-year period of time; 3
(d) Must consider aggravating and mitigating circumstances and 4
deviate from the prescribed penalties accordingly, and must authorize 5
enforcement officers to do the same, provided that such penalty may 6
not exceed the maximum escalating penalty prescribed by the board for 7
that violation; and 8
(e) Must give substantial consideration to mitigating any penalty 9
imposed on a licensee when there is employee misconduct that led to 10
the violation and the licensee: 11
(i) Established a compliance program designed to prevent the 12
violation; 13
(ii) Performed meaningful training with employees designed to 14
prevent the violation; and 15
(iii) Had not enabled or ignored the violation or other similar 16
violations in the past. 17
(3) The board may not consider any violation that occurred more 18
than two years prior as grounds for denial, suspension, revocation, 19
cancellation, or nonrenewal, unless the board can prove by a 20
preponderance of the evidence that the prior administrative violation 21
evidences: 22
(a) Diversion of cannabis product to the illicit market or sales 23
across state lines; 24
(b) Furnishing of cannabis product to minors; 25
(c) Diversion of revenue to criminal enterprises, gangs, cartels, 26
or parties not qualified to hold a cannabis license based on criminal 27
history requirements; 28
(d) The commission of noncannabis-related crimes; or29
(e) Knowingly making a misrepresentation of fact to the board, an 30
officer of the board, or an employee of the board related to conduct 31
or an action that is, or is alleged to be, any of the violations 32
identified in (a) through (d) of this subsection (3).33
Sec. 3. RCW 69.50.345 and 2023 c 220 s 5 are each amended to 34
read as follows: 35
The board, subject to the provisions of this chapter, must adopt 36
rules that establish the procedures and criteria necessary to 37
implement the following: 38
p. 4 HB 1884
(1) Licensing of cannabis producers, cannabis processors, and 1
cannabis retailers, including prescribing forms and establishing 2
application, reinstatement, and renewal fees. 3
(a) Application forms for cannabis producers must request the 4
applicant to state whether the applicant intends to produce cannabis 5
for sale by cannabis retailers holding medical cannabis endorsements 6
and the amount of or percentage of canopy the applicant intends to 7
commit to growing plants determined by the department under RCW 8
69.50.375 to be of a THC concentration, CBD concentration, or THC to 9
CBD ratio appropriate for cannabis concentrates, useable cannabis, or 10
cannabis-infused products sold to qualifying patients.11
(b) The board must reconsider and increase limits on the amount 12
of square feet permitted to be in production on July 24, 2015, and 13
increase the percentage of production space for those cannabis 14
producers who intend to grow plants for cannabis retailers holding 15
medical cannabis endorsements if the cannabis producer designates the 16
increased production space to plants determined by the department 17
under RCW 69.50.375 to be of a THC concentration, CBD concentration, 18
or THC to CBD ratio appropriate for cannabis concentrates, useable 19
cannabis, or cannabis-infused products to be sold to qualifying 20
patients. If current cannabis producers do not use all the increased 21
production space, the board may reopen the license period for new 22
cannabis producer license applicants but only to those cannabis 23
producers who agree to grow plants for cannabis retailers holding 24
medical cannabis endorsements. Priority in licensing must be given to 25
cannabis producer license applicants who have an application pending 26
on July 24, 2015, but who are not yet licensed and then to new 27
cannabis producer license applicants. After January 1, 2017, any 28
reconsideration of the limits on the amount of square feet permitted 29
to be in production to meet the medical needs of qualifying patients 30
must consider information contained in the medical cannabis 31
authorization database established in RCW 69.51A.230;32
(2)(a) Except as provided in RCW 69.50.335, determining, in 33
consultation with the office of financial management, the maximum 34
number of retail outlets that may be licensed in each county, taking 35
into consideration: 36
(i) Population distribution; 37
(ii) Security and safety issues; 38
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(iii) The provision of adequate access to licensed sources of 1
cannabis concentrates, useable cannabis, and cannabis-infused 2
products to discourage purchases from the illegal market; and3
(iv) The number of retail outlets holding medical cannabis 4
endorsements necessary to meet the medical needs of qualifying 5
patients. The board must reconsider and increase the maximum number 6
of retail outlets it established before July 24, 2015, and allow for 7
a new license application period and a greater number of retail 8
outlets to be permitted in order to accommodate the medical needs of 9
qualifying patients and designated providers. After January 1, 2017, 10
any reconsideration of the maximum number of retail outlets needed to 11
meet the medical needs of qualifying patients must consider 12
information contained in the medical cannabis authorization database 13
established in RCW 69.51A.230. 14
(b)(i) In making the determination under (a) of this subsection, 15
the board must consider written input from an incorporated city or 16
town, or county legislative authority when evaluating concerns 17
related to outlet density. 18
(ii) An incorporated city or town, or county legislative 19
authority, may enact an ordinance prescribing outlet density 20
limitations. An ordinance may not affect licenses issued before the 21
effective date of the ordinance prescribing outlet density 22
limitations. 23
(iii) The board may adopt rules to identify how local 24
jurisdiction input will be evaluated; 25
(3) Determining the maximum quantity of cannabis a cannabis 26
producer may have on the premises of a licensed location at any time 27
without violating Washington state law; 28
(4) Determining the maximum quantities of cannabis, cannabis 29
concentrates, useable cannabis, and cannabis-infused products a 30
cannabis processor may have on the premises of a licensed location at 31
any time without violating Washington state law; 32
(5) Determining the maximum quantities of cannabis concentrates, 33
useable cannabis, and cannabis-infused products a cannabis retailer 34
may have on the premises of a retail outlet at any time without 35
violating Washington state law; 36
(6) In making the determinations required by this section, the 37
board shall take into consideration: 38
(a) Security and safety issues; 39
p. 6 HB 1884
(b) The provision of adequate access to licensed sources of 1
cannabis, cannabis concentrates, useable cannabis, and cannabis-2
infused products to discourage purchases from the illegal market; and3
(c) Economies of scale, and their impact on licensees' ability to 4
both comply with regulatory requirements and undercut illegal market 5
prices; 6
(7) Determining the nature, form, and capacity of all containers 7
to be used by licensees to contain cannabis, cannabis concentrates, 8
useable cannabis, and cannabis-infused products, and their labeling 9
requirements; 10
(8) In consultation with the department of agriculture and the 11
department, establishing classes of cannabis, cannabis concentrates, 12
useable cannabis, and cannabis-infused products according to grade, 13
condition, cannabinoid profile, THC concentration, CBD concentration, 14
or other qualitative measurements deemed appropriate by the board;15
(9) Establishing reasonable time, place, and manner restrictions 16
and requirements regarding advertising of cannabis, cannabis 17
concentrates, useable cannabis, and cannabis-infused products that 18
are not inconsistent with the provisions of this chapter, taking into 19
consideration: 20
(a) Federal laws relating to cannabis that are applicable within 21
Washington state; 22
(b) Minimizing exposure of people under 21 years of age to the 23
advertising; 24
(c) The inclusion of medically and scientifically accurate 25
information about the health and safety risks posed by cannabis use 26
in the advertising; and 27
(d) Ensuring that retail outlets with medical cannabis 28
endorsements may advertise themselves as medical retail outlets;29
(10) Specifying and regulating the time and periods when, and the 30
manner, methods, and means by which, licensees shall transport and 31
deliver cannabis, cannabis concentrates, useable cannabis, and 32
cannabis-infused products within the state; 33
(11) In consultation with the department and the department of 34
agriculture, prescribing methods of producing, processing, and 35
packaging cannabis, cannabis concentrates, useable cannabis, and 36
cannabis-infused products; conditions of sanitation; and standards of 37
ingredients, quality, and identity of cannabis, cannabis 38
concentrates, useable cannabis, and cannabis-infused products 39
produced, processed, packaged, or sold by licensees;40
p. 7 HB 1884
(12) Specifying procedures for identifying, seizing, 1
confiscating, destroying, and donating to law enforcement for 2
training purposes all cannabis, cannabis concentrates, useable 3
cannabis, and cannabis-infused products produced, processed, 4
packaged, labeled, or offered for sale in this state that do not 5
conform in all respects to the standards prescribed by this chapter 6
or the rules of the board; and7
(13) A review of the board's rules regulating cannabis 8
production, processing, sales, and other cannabis activities, to be 9
initiated by rule making by October 1, 2025, within existing 10
resources, to eliminate or appropriately modify rules found to:11
(a) Create an undue administrative burden on licensees after 12
considering the relation and effectiveness of the rule to preventing 13
youth access, the inversion and diversion of cannabis and cannabis 14
products into and out of Washington's cannabis market, or furthering 15
public safety efforts;16
(b) Duplicate areas of enforcement delegated to local control in 17
other legal industries;18
(c) Have previously resulted in documented inconsistent or 19
contradictory enforcement by board representatives;20
(d) Duplicate authority granted by the legislature to other 21
agencies, including with respect to the accreditation of independent, 22
third-party testing laboratories by the department of agriculture 23
under RCW 69.50.348; or24
(e) Require business practices of license holders unrelated to 25
youth access, the prevention of inversion and diversion of cannabis 26
and cannabis products into and out of Washington's cannabis market, 27
or public safety efforts including, but not limited to, requiring 28
licensees or employees to use physical sign-in sheets and name tags.29
Sec. 4. RCW 69.50.342 and 2022 c 16 s 63 are each amended to 30
read as follows: 31
(1) For the purpose of carrying into effect the provisions of 32
chapter 3, Laws of 2013 according to their true intent or of 33
supplying any deficiency therein, the board may adopt rules not 34
inconsistent with the spirit of chapter 3, Laws of 2013 as are deemed 35
necessary or advisable. Without limiting the generality of the 36
preceding sentence, the board is empowered to adopt rules regarding 37
the following: 38
p. 8 HB 1884
(a) The equipment and management of retail outlets and premises 1
where cannabis is produced or processed, and inspection of the retail 2
outlets and premises where cannabis is produced or processed;3
(b) The books and records to be created and maintained by 4
licensees, the reports to be made thereon to the board, and 5
inspection of the books and records; 6
(c) Methods of producing, processing, and packaging cannabis, 7
useable cannabis, cannabis concentrates, and cannabis-infused 8
products; conditions of sanitation; safe handling requirements; 9
approved pesticides and pesticide testing requirements; and standards 10
of ingredients, quality, and identity of cannabis, useable cannabis, 11
cannabis concentrates, and cannabis-infused products produced, 12
processed, packaged, or sold by licensees; 13
(d) Security requirements for retail outlets and premises where 14
cannabis is produced or processed, and safety protocols for licensees 15
and their employees; 16
(e) Screening, hiring, training, and supervising employees of 17
licensees; 18
(f) Retail outlet locations and hours of operation;19
(g) Labeling requirements and restrictions on advertisement of 20
cannabis, useable cannabis, cannabis concentrates, cannabis health 21
and beauty aids, and cannabis-infused products for sale in retail 22
outlets; 23
(h) Forms to be used for purposes of this chapter and chapter 24
69.51A RCW or the rules adopted to implement and enforce these 25
chapters, the terms and conditions to be contained in licenses issued 26
under this chapter and chapter 69.51A RCW, and the qualifications for 27
receiving a license issued under this chapter and chapter 69.51A RCW, 28
including a criminal history record information check. The board may 29
submit any criminal history record information check to the 30
Washington state patrol and to the identification division of the 31
federal bureau of investigation in order that these agencies may 32
search their records for prior arrests and convictions of the 33
individual or individuals who filled out the forms. The board must 34
require fingerprinting of any applicant whose criminal history record 35
information check is submitted to the federal bureau of 36
investigation; 37
(i) Application, reinstatement, and renewal fees for licenses 38
issued under this chapter and chapter 69.51A RCW, and fees for 39
p. 9 HB 1884
anything done or permitted to be done under the rules adopted to 1
implement and enforce this chapter and chapter 69.51A RCW;2
(j) The manner of giving and serving notices required by this 3
chapter and chapter 69.51A RCW or rules adopted to implement or 4
enforce these chapters; 5
(k) Times and periods when, and the manner, methods, and means by 6
which, licensees transport and deliver cannabis, cannabis 7
concentrates, useable cannabis, and cannabis-infused products within 8
the state; 9
(l) Identification, seizure, confiscation, destruction, or 10
donation to law enforcement for training purposes of all cannabis, 11
cannabis concentrates, useable cannabis, and cannabis-infused 12
products produced, processed, sold, or offered for sale within this 13
state which do not conform in all respects to the standards 14
prescribed by this chapter or chapter 69.51A RCW or the rules adopted 15
to implement and enforce these chapters; 16
(m) The prohibition of any type of device used in conjunction 17
with a cannabis vapor product and the prohibition of the use of any 18
type of additive, solvent, ingredient, or compound in the production 19
and processing of cannabis products, including cannabis vapor 20
products, when the board determines, following consultation with the 21
department of health or any other authority the board deems 22
appropriate, that the device, additive, solvent, ingredient, or 23
compound may pose a risk to public health or youth access; and24
(n) Requirements for processors to submit under oath to the 25
department of health a complete list of all constituent substances 26
and the amount and sources thereof in each cannabis vapor product, 27
including all additives, thickening agents, preservatives, compounds, 28
and any other substance used in the production and processing of each 29
cannabis vapor product. 30
(2) Rules adopted on retail outlets holding medical cannabis 31
endorsements must be adopted in coordination and consultation with 32
the department. 33
(3) ((The)) In a manner consistent with RCW 69.50.562 and 34
69.50.345, the board must adopt rules to provide for the 35
establishment of new programs and perfect and expand existing 36
programs for compliance education for licensed cannabis businesses 37
and their employees. The rules must include a voluntary compliance 38
program created in consultation with licensed cannabis businesses and 39
their employees. The voluntary compliance program must include 40
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recommendations on abating violations of this chapter and rules 1
adopted under this chapter. 2
NEW SECTION. Sec. 5. A new section is added to chapter 69.50 3
RCW to read as follows: 4
(1) The board must regularly audit the data in the cannabis 5
central reporting system to identify outliers or anomalies in data 6
for inconsistencies in reporting, for the purposes of identifying 7
locations where either or both of the following activities are 8
occurring in violation of this chapter, and undertaking enforcement 9
to prevent their occurrence: 10
(a) Inversion of cannabis or cannabis products into the regulated 11
cannabis system involving a person licensed under RCW 69.50.325 as a 12
cannabis producer, processor, or retailer, purchasing or obtaining 13
cannabis or cannabis products from an unauthorized person or source; 14
or 15
(b) Diversion of cannabis or cannabis products out of the 16
regulated cannabis system involving a person licensed under RCW 17
69.50.325 as a cannabis producer, processor, or retailer, selling or 18
transferring cannabis or cannabis products to an unauthorized person 19
or recipient. 20
(2) In addition to data in the cannabis central reporting system 21
including reports of sales of cannabis and cannabis products, for the 22
purpose of administering this section and preventing inversion and 23
diversion of cannabis and cannabis products, the board may also 24
consider and compare any books and records of cannabis licensees that 25
the board has authority to inspect under this chapter and shall also 26
consider and compare the following data or information:27
(a) The status of a cannabis license issued by the board and 28
whether it is active and valid or whether it has been suspended, 29
revoked, canceled, or has otherwise not been active and valid during 30
any applicable time; 31
(b) The status of a business license issued by the department of 32
revenue and whether it is active and valid or whether it has been 33
suspended, revoked, canceled, or has otherwise not been active and 34
valid during any applicable time; and 35
(c) If the board suspects inversion or diversion activities by a 36
licensee, the board may require the licensee to submit the following 37
for inspection: 38
(i) Water utility billing records; 39
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(ii) Electricity and natural gas billing records;1
(iii) Filings and reports related to taxes or business activity 2
submitted to the department of revenue. 3
(3) For purposes of this section, "cannabis central reporting 4
system" means the system used by the board for the reporting of 5
events or information submitted by or on behalf of cannabis licensees 6
and certified laboratories to the board, as required by the board.7
Sec. 6. RCW 34.05.328 and 2019 c 8 s 405 are each amended to 8
read as follows: 9
(1) Before adopting a rule described in subsection (5) of this 10
section, an agency must: 11
(a) Clearly state in detail the general goals and specific 12
objectives of the statute that the rule implements;13
(b) Determine that the rule is needed to achieve the general 14
goals and specific objectives stated under (a) of this subsection, 15
and analyze alternatives to rule making and the consequences of not 16
adopting the rule; 17
(c) Provide notification in the notice of proposed rule making 18
under RCW 34.05.320 that a preliminary cost-benefit analysis is 19
available. The preliminary cost-benefit analysis must fulfill the 20
requirements of the cost-benefit analysis under (d) of this 21
subsection. If the agency files a supplemental notice under RCW 22
34.05.340, the supplemental notice must include notification that a 23
revised preliminary cost-benefit analysis is available. A final cost-24
benefit analysis must be available when the rule is adopted under RCW 25
34.05.360; 26
(d) Determine that the probable benefits of the rule are greater 27
than its probable costs, taking into account both the qualitative and 28
quantitative benefits and costs and the specific directives of the 29
statute being implemented; 30
(e) Determine, after considering alternative versions of the rule 31
and the analysis required under (b), (c), and (d) of this subsection, 32
that the rule being adopted is the least burdensome alternative for 33
those required to comply with it that will achieve the general goals 34
and specific objectives stated under (a) of this subsection;35
(f) Determine that the rule does not require those to whom it 36
applies to take an action that violates requirements of another 37
federal or state law; 38
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(g) Determine that the rule does not impose more stringent 1
performance requirements on private entities than on public entities 2
unless required to do so by federal or state law; 3
(h) Determine if the rule differs from any federal regulation or 4
statute applicable to the same activity or subject matter and, if so, 5
determine that the difference is justified by the following:6
(i) A state statute that explicitly allows the agency to differ 7
from federal standards; or 8
(ii) Substantial evidence that the difference is necessary to 9
achieve the general goals and specific objectives stated under (a) of 10
this subsection; and 11
(i) Coordinate the rule, to the maximum extent practicable, with 12
other federal, state, and local laws applicable to the same activity 13
or subject matter. 14
(2) In making its determinations pursuant to subsection (1)(b) 15
through (h) of this section, the agency must place in the rule-making 16
file documentation of sufficient quantity and quality so as to 17
persuade a reasonable person that the determinations are justified.18
(3) Before adopting rules described in subsection (5) of this 19
section, an agency must place in the rule-making file a rule 20
implementation plan for rules filed under each adopting order. The 21
plan must describe how the agency intends to: 22
(a) Implement and enforce the rule, including a description of 23
the resources the agency intends to use; 24
(b) Inform and educate affected persons about the rule;25
(c) Promote and assist voluntary compliance; and26
(d) Evaluate whether the rule achieves the purpose for which it 27
was adopted, including, to the maximum extent practicable, the use of 28
interim milestones to assess progress and the use of objectively 29
measurable outcomes. 30
(4) After adopting a rule described in subsection (5) of this 31
section regulating the same activity or subject matter as another 32
provision of federal or state law, an agency must do all of the 33
following: 34
(a) Coordinate implementation and enforcement of the rule with 35
the other federal and state entities regulating the same activity or 36
subject matter by making every effort to do one or more of the 37
following: 38
(i) Deferring to the other entity; 39
(ii) Designating a lead agency; or 40
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(iii) Entering into an agreement with the other entities 1
specifying how the agency and entities will coordinate implementation 2
and enforcement. 3
If the agency is unable to comply with this subsection (4)(a), 4
the agency must report to the legislature pursuant to (b) of this 5
subsection; 6
(b) Report to the joint administrative rules review committee:7
(i) The existence of any overlap or duplication of other federal 8
or state laws, any differences from federal law, and any known 9
overlap, duplication, or conflict with local laws; and10
(ii) Make recommendations for any legislation that may be 11
necessary to eliminate or mitigate any adverse effects of such 12
overlap, duplication, or difference. 13
(5)(a) Except as provided in (b) of this subsection, this section 14
applies to: 15
(i) Significant legislative rules of the departments of ecology, 16
labor and industries, health, revenue, social and health services, 17
and natural resources, the employment security department, the forest 18
practices board, the office of the insurance commissioner, the state 19
building code council, and the liquor and cannabis board in 20
implementing chapter 69.50 RCW, and to the legislative rules of the 21
department of fish and wildlife implementing chapter 77.55 RCW; and22
(ii) Any rule of any agency, if this section is voluntarily made 23
applicable to the rule by the agency, or is made applicable to the 24
rule by a majority vote of the joint administrative rules review 25
committee within forty-five days of receiving the notice of proposed 26
rule making under RCW 34.05.320. 27
(b) This section does not apply to: 28
(i) Emergency rules adopted under RCW 34.05.350;29
(ii) Rules relating only to internal governmental operations that 30
are not subject to violation by a nongovernment party;31
(iii) Rules adopting or incorporating by reference without 32
material change federal statutes or regulations, Washington state 33
statutes, rules of other Washington state agencies, shoreline master 34
programs other than those programs governing shorelines of statewide 35
significance, or, as referenced by Washington state law, national 36
consensus codes that generally establish industry standards, if the 37
material adopted or incorporated regulates the same subject matter 38
and conduct as the adopting or incorporating rule;39
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(iv) Rules that only correct typographical errors, make address 1
or name changes, or clarify language of a rule without changing its 2
effect; 3
(v) Rules the content of which is explicitly and specifically 4
dictated by statute, including any rules of the department of revenue 5
adopted under the authority of RCW 82.32.762(3); 6
(vi) Rules that set or adjust fees under the authority of RCW 7
19.02.075 or that set or adjust fees or rates pursuant to legislative 8
standards, including fees set or adjusted under the authority of RCW 9
19.80.045; 10
(vii) Rules of the department of social and health services 11
relating only to client medical or financial eligibility and rules 12
concerning liability for care of dependents; or 13
(viii) Rules of the department of revenue that adopt a uniform 14
expiration date for reseller permits as authorized in RCW 82.32.780 15
and 82.32.783. 16
(c) For purposes of this subsection: 17
(i) A "procedural rule" is a rule that adopts, amends, or repeals 18
(A) any procedure, practice, or requirement relating to any agency 19
hearings; (B) any filing or related process requirement for making 20
application to an agency for a license or permit; or (C) any policy 21
statement pertaining to the consistent internal operations of an 22
agency. 23
(ii) An "interpretive rule" is a rule, the violation of which 24
does not subject a person to a penalty or sanction, that sets forth 25
the agency's interpretation of statutory provisions it administers.26
(iii) A "significant legislative rule" is a rule other than a 27
procedural or interpretive rule that (A) adopts substantive 28
provisions of law pursuant to delegated legislative authority, the 29
violation of which subjects a violator of such rule to a penalty or 30
sanction; (B) establishes, alters, or revokes any qualification or 31
standard for the issuance, suspension, or revocation of a license or 32
permit; or (C) adopts a new, or makes significant amendments to, a 33
policy or regulatory program. 34
(d) In the notice of proposed rule making under RCW 34.05.320, an 35
agency must state whether this section applies to the proposed rule 36
pursuant to (a)(i) of this subsection, or if the agency will apply 37
this section voluntarily. 38
(6) By January 31, 1996, and by January 31st of each even-39
numbered year thereafter, the office of regulatory assistance, after 40
p. 15 HB 1884
consulting with state agencies, counties, and cities, and business, 1
labor, and environmental organizations, must report to the governor 2
and the legislature regarding the effects of this section on the 3
regulatory system in this state. The report must document:4
(a) The rules proposed to which this section applied and to the 5
extent possible, how compliance with this section affected the 6
substance of the rule, if any, that the agency ultimately adopted;7
(b) The costs incurred by state agencies in complying with this 8
section; 9
(c) Any legal action maintained based upon the alleged failure of 10
any agency to comply with this section, the costs to the state of 11
such action, and the result; 12
(d) The extent to which this section has adversely affected the 13
capacity of agencies to fulfill their legislatively prescribed 14
mission; 15
(e) The extent to which this section has improved the 16
acceptability of state rules to those regulated; and17
(f) Any other information considered by the office of financial 18
management to be useful in evaluating the effect of this section.19
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p. 16 HB 1884