Agriculture

AN ACT Relating to agriculture; amending RCW 70A.208.020, 1
70A.65.080, 49.45.030, 69.50.101, 69.50.101, 69.50.325, 69.50.326, 2
69.50.331, 69.50.334, 69.50.335, 69.50.339, 69.50.342, 69.50.345, 3
69.50.348, 69.50.351, 69.50.363, 69.50.366, 69.50.372, 69.50.395, 4
69.50.530, 69.50.540, 69.50.564, 69.50.565, 69.50.580, and 69.50.585; 5
adding a new section to chapter 70A.208 RCW; adding new sections to 6
chapter 70A.60 RCW; adding new sections to chapter 17.24 RCW; adding 7
a new section to chapter 69.50 RCW; creating new sections; making an 8
appropriation; providing an effective date; providing expiration 9
dates; and providing a contingent expiration date.10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:11
PART 1: FOOD SECURITY AND SURPLUS CROP RECOVERY12
NEW SECTION. Sec. 101. A new section is added to chapter 13
70A.208 RCW to read as follows: 14
The harvest assistance account is created in the custody of the 15
state treasurer. All receipts directed to the account from 16
legislative appropriations, gifts, grants, and donations, must be 17
deposited into the account. Expenditures from the account may be used 18
only to support rapid response to severe weather or market 19
disruptions to harvest. Only the director of the department of 20
H-2950.1
HOUSE BILL 2616
State of Washington 69th Legislature 2026 Regular Session
By Representatives Reeves, Dent, and Parshley
Read first time 01/22/26. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 2616
agriculture or the director's designee may authorize expenditures 1
from the account. The account is subject to allotment procedures 2
under chapter 43.88 RCW, but an appropriation is not required for 3
expenditures. 4
NEW SECTION. Sec. 102. The department of agriculture shall 5
convene the department of enterprise services, the department of 6
corrections, and the office of the superintendent of public 7
instruction to develop a strategy to expand institutional purchasing 8
of Washington-grown food. The strategy must prioritize purchasing for 9
state agencies, corrections facilities, and public schools. The 10
department of agriculture shall submit the strategy in the form of a 11
report to the legislature in conformance with RCW 43.01.036 by 12
December 1, 2028.13
Sec. 103. RCW 70A.208.020 and 2025 c 316 s 102 are each amended 14
to read as follows: 15
The definitions in this section apply throughout this chapter 16
unless the context clearly requires otherwise. 17
(1) "Advisory council" means the council established in RCW 18
70A.208.050. 19
(2) "Alternative recycling process" means a recycling process 20
that occurs other than through purely physical means.21
(3)(a) "Beverage" means a drinkable liquid intended for human 22
oral consumption. 23
(b) "Beverage" does not include: (i) A drug regulated under the 24
federal food, drug, and cosmetic act, 21 U.S.C. Sec. 301 et seq.; 25
(ii) 100 percent fluid milk; (iii) infant formula; or (iv) a meal 26
replacement liquid. 27
(4) "Beverage container" means any container in which a producer 28
originally prepackaged and sealed a beverage. 29
(5) "Brand" means a name, symbol, word, logo, or mark that 30
identifies an item and attributes the item and its components, 31
including packaging, to the brand owner of the item.32
(6) "Collection rate" means the amount of a covered material by 33
covered materials type collected by service providers and transported 34
for recycling or composting divided by the total amount of the type 35
of a covered material by covered materials type introduced by the 36
relevant unit of measurement established in the plan.37
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(7) "Compostable" means a product that is capable of composting 1
in a composting system and is in compliance with the requirements for 2
a product labeled as compostable under chapter 70A.455 RCW.3
(8) "Composting" means the controlled microbial degradation of 4
source separated compostable materials to yield a humus-like product.5
(9) "Composting rate" means the amount of compostable covered 6
material that is managed through composting, divided by the total 7
amount of compostable covered material introduced by the relevant 8
unit of measurement. 9
(10) "Composting system" means a system meeting the requirements 10
of chapter 70A.205 RCW applicable to facilities that treat solid 11
waste for composting. 12
(11) "Contamination" means: 13
(a) The presence of materials that are not on the list of 14
materials collected in that material stream; or 15
(b) The presence of materials that are not specified or accepted 16
as a component of the feedstock or commodity. 17
(12) "Covered entity" means a person or location that receives 18
covered services for covered materials in accordance with the 19
requirements of this chapter, including: 20
(a) A single-family residence; 21
(b) A multifamily residence; and 22
(c) A public place where a government entity managed recycling 23
collection receptacles as of August 1, 2025, and any additional 24
public place identified in an approved plan. 25
(13)(a) "Covered material" means packaging and paper products 26
introduced into the state. 27
(b) "Covered material" does not include exempt materials.28
(14) "Covered materials type" means a singular and specific type 29
of material, such as paper, plastic, metal, or glass, that is a 30
covered material and that: 31
(a) May be categorized based on distinguishing chemical or 32
physical properties, including properties that allow a covered 33
materials type to be aggregated into a discrete commodity category 34
for purposes of reuse, recycling, or composting; and35
(b) Is based on similar uses in the form of a product or 36
packaging. 37
(15)(a) "Covered services" means collecting, transferring, 38
transporting, sorting, processing, recovering, preparing, or 39
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otherwise managing for purposes of waste reduction, refill, reuse, 1
recycling, composting, or disposal of contamination or residuals.2
(b) Except with regard to contamination, "covered services" do 3
not include: 4
(i) Resource recovery through mixed municipal solid waste 5
composting or incineration; or 6
(ii) Land disposal. 7
(16) "De minimis producer" means a producer that:8
(a) In their most recent fiscal year introduced less than one ton 9
of covered materials; 10
(b) Has a global gross revenue, not including on-premises alcohol 11
sales, for the prior fiscal year of: 12
(i) Until January 1, 2031, less than $5,000,000; or13
(ii) Beginning January 1, 2031, less than $5,000,000, as adjusted 14
for inflation. The department must use the consumer price index for 15
urban wage earners to calculate the annual rate of inflation 16
adjustment effective January 1st of each year, beginning January 1, 17
2031; or 18
(c) Is an agricultural employer, as defined in RCW 19.30.010, 19
regardless of where the agricultural employer is located, with less 20
than $5,000,000, as adjusted for inflation as described in (b) of 21
this subsection, in gross revenue in Washington from consumer sales 22
of agricultural commodities sold under the brand name of the 23
agricultural employer. 24
(17) "Department" means the department of ecology.25
(18) "Drop-off collection site" means a physical location where 26
covered materials are accepted from the public and that is open a 27
minimum of 12 hours weekly throughout the year. 28
(19) "Exempt materials" means materials, or any portion of 29
materials, that are: 30
(a) Packaging for infant formula, as defined in 21 U.S.C. Sec. 31
321(z); 32
(b) Packaging for medical food, as defined in 21 U.S.C. Sec. 33
360ee(b)(3); 34
(c) Packaging for a fortified oral nutritional supplement used by 35
persons who require supplemental or sole source nutrition to meet 36
nutritional needs due to special dietary needs directly related to 37
cancer, chronic kidney disease, diabetes, malnutrition, or failure to 38
thrive, as those terms are defined by the International 39
Classification of Diseases, tenth revision; 40
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(d) Packaging for a product regulated as a drug, medical device, 1
or dietary supplement by the United States food and drug 2
administration, including associated components and consumable 3
medical equipment, under the federal food, drug, and cosmetic act (21 4
U.S.C. Sec. 321 et seq.), or a product regulated as a biologic or 5
vaccine by the United States food and drug administration under the 6
public health service act (42 U.S.C. Sec. 201 et seq.);7
(e) Packaging for a medical equipment or product used in medical 8
settings that is regulated by the United States food and drug 9
administration, including associated components and consumable 10
medical equipment; 11
(f) Packaging for drugs, biological products, parasiticides, 12
medical devices, or in vitro diagnostics that are used to treat, or 13
that are administered to, animals and are regulated by the United 14
States food and drug administration under the federal food, drug, and 15
cosmetic act (21 U.S.C. Sec. 301 et seq.) and by the United States 16
department of agriculture under the federal virus-serum-toxin act (21 17
U.S.C. Sec. 151 et seq.); 18
(g) Noncompostable film plastic packaging used in direct contact 19
with raw meat; 20
(h) Packaging for products regulated by the United States 21
environmental protection agency under the federal insecticide, 22
fungicide, and rodenticide act (7 U.S.C. Sec. 136 et seq.);23
(i) Packaging used to contain liquefied petroleum gas and are 24
designed to be refilled; 25
(j) Packaging used to contain hazardous or flammable products 26
classified by the 2012 federal occupational safety and health 27
administration hazard communication standard, 29 C.F.R. Sec. 28
1910.1200 (2024), that prevent the packaging from being reduced or 29
made reusable, recyclable, or compostable, as determined by the 30
department; 31
(k) Packaging that is associated with products managed through a 32
paint stewardship plan approved under chapter 70A.515 RCW;33
(l) Excluded materials, as determined by the department under RCW 34
70A.208.260; 35
(m) Used to protect or store a durable product for a period of at 36
least five years; 37
(n) Packaging used for bulk construction materials;38
(o) Covered materials that: 39
(i) A producer distributes to another producer;40
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(ii) Are subsequently used to contain a product and the product 1
is distributed to a commercial or business entity for the production 2
of another product; and 3
(iii) Are not introduced to a person other than the commercial or 4
business entity that first received the product used for the 5
production of another product; ((and))6
(p) Packaging used to store perishable agricultural products, 7
until the department determines that commercially viable alternatives 8
are reasonably available; and9
(q) Covered materials for which the producer demonstrates to the 10
department that the covered material meets all of the following 11
criteria: 12
(i) The material is not collected through a residential recycling 13
collection service; 14
(ii) The material is recycled at a responsible market;15
(iii) The material is intended to be used and collected within a 16
commercial setting; 17
(iv)(A) The producer annually demonstrates to the department that 18
the material has had a state recycling rate of 65 percent for three 19
consecutive years, until December 31, 2029. Beginning January 1, 20
2030, the producer must demonstrate to the department every two years 21
that the material has had a state recycling rate of at least 70 22
percent annually; or 23
(B) The producer annually demonstrates to the department that the 24
material is directly managed by the producer and has had a reuse or 25
recycling rate of 65 percent for three consecutive years, until 26
December 31, 2029. Beginning January 1, 2030, the producer must 27
demonstrate to the department every two years that the material 28
controlled by the producer has had a reuse or recycling rate of at 29
least 70 percent annually; and 30
(v) If only a portion of the material sold in or into the state 31
by a producer meets the criteria of (((p))) (q)(i) of this 32
subsection, only the portion of the material that meets that criteria 33
is an exempt material and any portion that does not meet the criteria 34
is a covered material for purposes of this chapter.35
(20) "Government entity" means any: 36
(a) County, city, town, or other local government, including any 37
municipal corporation, quasi-municipal corporation, or special 38
purpose district, or any office, department, division, bureau, board, 39
commission, or agency thereof, or other local public agency;40
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(b) State office, department, division, bureau, board, 1
commission, or other state agency; 2
(c) Federally recognized Indian tribe whose traditional lands and 3
territories include parts of Washington; or 4
(d) Federal office, department, division, bureau, board, 5
commission, or other federal agency. 6
(21) "Individual plan" means a plan submitted by a producer that 7
registers with the department as a producer responsibility 8
organization to address the covered materials of the producer.9
(22) "Introduce" means to sell, offer for sale, distribute, or 10
ship a product within or into this state. 11
(23) "Material recovery facility" means any facility that 12
receives, compacts, repackages, or sorts source separated solid waste 13
for the purpose of recycling. 14
(24) "Overburdened communities" means the overburdened 15
communities identified and prioritized by the department under RCW 16
70A.02.050(1)(a). 17
(25)(a) "Packaging" means a material, substance, or object that 18
is used to protect, contain, transport, serve, or facilitate delivery 19
of a product and is sold or supplied with the product to the consumer 20
for personal, noncommercial use. 21
(b) "Packaging" does not include exempt materials.22
(26) "Paper product" means paper sold or supplied to a consumer 23
for personal, noncommercial use, including flyers, brochures, 24
booklets, catalogs, magazines, printed paper, and all other paper 25
materials except for: (a) Bound books; (b) conservation-grade and 26
archival-grade paper; (c) newspapers, including supplements or 27
enclosures; (d) magazines that have a circulation of fewer than 28
95,000 and that includes content derived from primary sources related 29
to news and current events; (e) copy paper; (f) paper for use in 30
building construction; and (g) paper that could reasonably be 31
anticipated to become unsafe or unsanitary to handle.32
(27)(a) "Plastic source reduction" means the reduction in the 33
amount of covered plastic material introduced by a producer relative 34
to a baseline year of 2023, or relative to an alternative baseline 35
year of no earlier than 2013 where a producer submits data 36
documenting the plastic source reduction to a producer responsibility 37
organization. Methods of source reduction include, but are not 38
limited to, shifting covered material to reusable or refillable 39
packaging or a reusable product, eliminating unnecessary packaging, 40
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or reducing the packaging to product ratio. "Plastic source 1
reduction" must include elimination, which means the removal of 2
plastic covered materials. 3
(b) "Plastic source reduction" does not include either of the 4
following: 5
(i) Replacing a recyclable or compostable covered material with a 6
nonrecyclable or noncompostable covered material or a covered 7
material that is less likely to be recycled or composted; or8
(ii) Switching from virgin covered material to postconsumer 9
recycled content, except as allowed under an alternative compliance 10
formula in RCW 70A.208.150(6). 11
(28) "Postconsumer recycled content" has the same meaning as 12
defined in RCW 70A.245.010. 13
(29)(a) "Producer" means the following person responsible for 14
compliance with requirements under this chapter for a covered 15
material introduced into the state: 16
(i) For items sold in or with packaging at a physical retail 17
location in this state: 18
(A) If the item is sold in or with packaging under the brand of 19
the item manufacturer or is sold in packaging that lacks 20
identification of a brand, the producer is the person that 21
manufactures the item; 22
(B) If there is no person to which (a)(i)(A) of this subsection 23
applies, the producer is the person that is licensed to manufacture 24
and sell or offer for sale to consumers in this state an item with 25
packaging under the brand or trademark of another manufacturer or 26
person; 27
(C) If there is no person to which (a)(i)(A) or (B) of this 28
subsection applies, the producer is the brand owner of the item;29
(D) If there is no person described in (a)(i)(A), (B), or (C) of 30
this subsection within the United States, the producer is the person 31
who is the importer of record for the item into the United States for 32
use in a commercial enterprise that sells, offers for sale, or 33
distributes the item in this state; or 34
(E) If there is no person described in (a)(i)(A) through (D) of 35
this subsection, the producer is the person that first distributes 36
the item in or into this state; 37
(ii) For items sold or distributed in packaging in or into this 38
state via e-commerce, remote sale, or distribution:39
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(A) For packaging used to directly protect or contain the item, 1
the producer of the packaging is the same as the producer identified 2
under (a)(i) of this subsection; and 3
(B) For packaging used to ship the item to a consumer, the 4
producer of the packaging is the person that packages the item to be 5
shipped to the consumer; 6
(iii) For packaging that is a covered material and is not 7
included in (a)(i) and (ii) of this subsection, the producer of the 8
packaging is the person that first distributes the item in or into 9
this state; 10
(iv) For paper products that are magazines, catalogs, telephone 11
directories, or similar publications, the producer is the publisher;12
(v) For paper products not described in (a)(iv) of this 13
subsection: 14
(A) If the paper product is sold under the manufacturer's own 15
brand, the producer is the person that manufactures the paper 16
product; 17
(B) If there is no person to which (a)(v)(A) of this subsection 18
applies, the producer is the person that is the owner or licensee of 19
a brand or trademark under which the paper product is used in a 20
commercial enterprise, sold, offered for sale, or distributed in or 21
into this state, whether or not the trademark is registered in this 22
state; 23
(C) If there is no person to which (a)(v)(A) or (B) of this 24
subsection applies, the producer is the brand owner of the paper 25
product; 26
(D) If there is no person described in (a)(v)(A), (B), or (C) of 27
this subsection within the United States, the producer is the person 28
that imports the paper product into the United States for use in a 29
commercial enterprise that sells, offers for sale, or distributes the 30
paper product in this state; or 31
(E) If there is no person described in (a)(v)(A) through (D) of 32
this subsection, the producer is the person that first distributes 33
the paper product in or into this state; 34
(vi) A person is the "producer" of a covered material sold, 35
offered for sale, or distributed in or into this state, as defined in 36
(a)(i) through (v) of this subsection, except: 37
(A) Where another person has mutually signed an agreement with a 38
producer as defined in (a)(i) through (v) of this subsection that 39
contractually assigns responsibility to the person as the producer, 40
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and the person has joined a registered producer responsibility 1
organization as the responsible producer for that covered material 2
under this chapter. If another person is assigned responsibility as 3
the producer under this subsection, the producer under (a)(i) through 4
(v) of this subsection must provide written certification of that 5
contractual agreement to the producer responsibility organization. 6
The following persons are not eligible to be the assigned recipient 7
of responsibility as a producer under this subsection: (I) A person 8
who produces an agricultural commodity introduced under the brand or 9
trademark of another manufacturer or person; or (II) a distributor of 10
a beverage sold in a beverage container; and 11
(B) If the producer described in (a)(i) through (v) of this 12
subsection is a business operated wholly or in part as a franchise, 13
the producer is the franchisor, if that franchisor has franchisees 14
that have a commercial presence within the state. 15
(b) "Producer" does not include: 16
(i) Government entities; 17
(ii) Registered 501 (c)(3) charitable organizations and 501 (c)(4) 18
social welfare organizations; or 19
(iii) De minimis producers. 20
(30) "Producer responsibility organization" means:21
(a) A nonprofit organization that qualifies for a tax exemption 22
under 26 U.S.C. Sec. 501 (c)(3) of the federal internal revenue code 23
and is designated by a producer or group of producers to fulfill the 24
requirements of this chapter; 25
(b) A producer that registers with the department as a producer 26
responsibility organization and implements an individual plan 27
addressing the covered materials of the producer; or28
(c) An organization as defined by the department by rule.29
(31) "Program" means the activities conducted to implement an 30
approved plan. 31
(32)(a) "Public place" means an indoor or outdoor location open 32
to and generally used by the public and to which the public is 33
permitted to have access including, but not limited to, streets, 34
sidewalks, plazas, town squares, public parks, beaches, forests, or 35
other public land open for recreation or other uses, and 36
transportation facilities such as bus and train stations, airports, 37
and ferry terminals. 38
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(b) "Public place" does not include a retail establishment or 1
industrial, commercial, or privately owned property that is not 2
required to be accessible to the public. 3
(33) "Recycling" means transforming or remanufacturing covered 4
materials into usable or marketable materials for use other than 5
landfill disposal or incineration and does not include reuse or 6
composting. 7
(34) "Recycling rate" means the amount of covered materials, in 8
aggregate or by individual covered materials type, delivered to 9
responsible markets for recycling in a calendar year divided by the 10
total amount of covered materials introduced by the relevant unit of 11
measurement and excluding covered materials that are reusable or 12
compostable. 13
(35) "Refill" means the continued use of a covered material by a 14
consumer through a system that is: 15
(a) Intentionally designed and marketed for repeated filling of a 16
covered material to reduce demand for new production of the covered 17
material; 18
(b) Supported by adequate logistics and infrastructure to provide 19
convenient access to consumers; and 20
(c) Compliant with all applicable federal, state, and local 21
statutes, rules, ordinances, and other laws governing health and 22
safety. 23
(36) "Responsible market" means an entity that:24
(a) First produces and sells, transfers, or uses recycled organic 25
product or recycled content feedstock that meets the quality 26
standards necessary to be used in the creation of new or 27
reconstituted products; 28
(b) Complies with all applicable federal, state, and local 29
statutes, rules, ordinances, and other laws governing environmental, 30
health, safety, and financial responsibility; 31
(c) If the market operates in the state, manages waste according 32
to the state's solid waste management hierarchy established in RCW 33
70A.205.005; and 34
(d) Meets the minimum operational standards adopted under a 35
producer responsibility organization plan to protect the environment, 36
public health, worker health and safety, and minimize adverse impacts 37
to socially vulnerable populations. 38
(37) "Responsible producer" means a producer that is not a de 39
minimis producer. 40
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(38) "Retail establishment" includes any person, corporation, 1
partnership, business, facility, vendor, organization, or individual 2
that sells or provides merchandise, goods, or materials directly to a 3
customer. 4
(39) "Return rate" means the amount of reusable covered material 5
in aggregate or by individual covered materials type, collected for 6
reuse by a producer or service provider in a calendar year, divided 7
by the total amount of reusable covered materials introduced by the 8
relevant unit of measurement. 9
(40) "Reusable" means capable of reuse. 10
(41) "Reuse" means the return of a covered material to the 11
marketplace and the continued use of the covered material by a 12
producer or service provider when the covered material is:13
(a) Intentionally designed and marketed to be used multiple times 14
for its original intended purpose without a change in form;15
(b) Designed for durability and maintenance to extend its useful 16
life and reduce demand for new production of the covered material;17
(c) Supported by adequate logistics and infrastructure at a 18
retail location, by a service provider, or on behalf of or by a 19
producer, that provides convenient access for consumers; and20
(d) Compliant with all applicable federal, state, and local 21
statutes, rules, ordinances, and other laws governing health and 22
safety. 23
(42) "Reuse rate" means the share of units of a reusable covered 24
material introduced into the state in a calendar year that are 25
demonstrated and deemed reusable in accordance with an approved plan.26
(43) "Service provider" means an entity that provides covered 27
services for covered materials. A government entity that provides, 28
contracts for, or otherwise arranges for another party to provide 29
covered services for covered materials within its jurisdiction may be 30
a service provider regardless of whether it provided, contracted for, 31
or otherwise arranged for similar services before the approval of the 32
applicable plan. 33
(44) "Socially vulnerable population" means: 34
(a) Any person residing in: 35
(i) A census tract that contains a high overall social 36
vulnerability index as measured using the United States centers for 37
disease control and the agency for toxic substances and disease 38
registry's social vulnerability index, as it existed as of January 1, 39
2025, for the most recent year such data are available; or40
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(ii) As applicable, an alternative population specified in RCW 1
70A.208.270; or 2
(b) Any person that has an income below the minimum necessary for 3
a household based on family composition in a given geography to 4
adequately meet their basic needs without public or private 5
assistance, as measured by the University of Washington's center for 6
women's welfare, for the most recent year such data are available.7
(45) "Third-party certification" means certification by an 8
accredited independent organization that a standard or process 9
required by this chapter, or by a plan approved under this chapter, 10
has been achieved. 11
(46) "Toxic substance" means chemicals that are regulated under 12
chapter 70A.222, 70A.350, 70A.430, or 70A.560 RCW.13
(47) "Vulnerable populations" has the same meaning as defined in 14
RCW 70A.02.010. 15
NEW SECTION. Sec. 104. (1) Section 103 of this act expires upon 16
a determination by the department of ecology that commercially viable 17
packaging alternatives to store perishable agricultural products are 18
reasonably available.19
(2) The department of ecology must provide written notice of the 20
expiration date of section 103 of this act to affected parties, the 21
chief clerk of the house of representatives, the secretary of the 22
senate, the office of the code reviser, and others as deemed 23
appropriate by the department of ecology. 24
PART 2: CLIMATE AND ENERGY25
Sec. 201. RCW 70A.65.080 and 2025 c 282 s 2 are each amended to 26
read as follows: 27
(1) A person is a covered entity as of the beginning of the first 28
compliance period and all subsequent compliance periods if the person 29
reported emissions under RCW 70A.15.2200 for any calendar year from 30
2015 through 2019, or if additional data provided as required by this 31
chapter indicates that emissions for any calendar year from 2015 32
through 2019 equaled or exceeded any of the following thresholds, or 33
if the person is a first jurisdictional deliverer and imports 34
electricity into the state during the compliance period:35
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(a) Where the person owns or operates a facility and the 1
facility's emissions equal or exceed 25,000 metric tons of carbon 2
dioxide equivalent; 3
(b) Where the person is a first jurisdictional deliverer and 4
generates electricity in the state and emissions associated with this 5
generation equals or exceeds 25,000 metric tons of carbon dioxide 6
equivalent; 7
(c)(i) Where the person is a first jurisdictional deliverer 8
importing electricity into the state and: 9
(A) For specified sources, the cumulative annual total of 10
emissions associated with the imported electricity exceeds 25,000 11
metric tons of carbon dioxide equivalent; 12
(B) For unspecified sources, the cumulative annual total of 13
emissions associated with the imported electricity exceeds 0 metric 14
tons of carbon dioxide equivalent; or 15
(C) For electricity purchased from a federal power marketing 16
administration pursuant to section 5 (b) of the Pacific Northwest 17
electric power planning and conservation act of 1980, P.L. 96-501, if 18
the department determines such electricity is not from a specified 19
source, the cumulative annual total of emissions associated with the 20
imported electricity exceeds 25,000 metric tons of carbon dioxide 21
equivalent. 22
(ii) In consultation with any linked jurisdiction to the program 23
created by this chapter, by October 1, 2026, the department, in 24
consultation with the department of commerce and the utilities and 25
transportation commission, shall adopt by rule a methodology for 26
addressing imported electricity associated with a centralized 27
electricity market; 28
(d) Where the person is a supplier of fossil fuel other than 29
natural gas and from that fuel 25,000 metric tons or more of carbon 30
dioxide equivalent emissions would result from the full combustion or 31
oxidation, excluding the amounts for fuel products that are produced 32
or imported with a documented final point of delivery outside of 33
Washington and combusted outside of Washington; and34
(e)(i) Where the person supplies natural gas in amounts that 35
would result in exceeding 25,000 metric tons of carbon dioxide 36
equivalent emissions if fully combusted or oxidized, excluding the 37
amounts for fuel products that are produced or imported with a 38
documented final point of delivery outside of Washington and 39
combusted outside of Washington, and excluding the amounts: (A) 40
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Supplied to covered entities under (a) through (d) of this 1
subsection; and (B) delivered to opt-in entities; 2
(ii) Where the person who is not a natural gas company and has a 3
tariff with a natural gas company to deliver to an end-use customer 4
in the state in amounts that would result in exceeding 25,000 metric 5
tons of carbon dioxide equivalent emissions if fully combusted or 6
oxidized, excluding the amounts: (A) Supplied to covered entities 7
under (a) through (d) of this subsection; and (B) the amounts 8
delivered to opt-in entities; 9
(iii) Where the person is an end-use customer in the state who 10
directly purchases natural gas from a person that is not a natural 11
gas company and has the natural gas delivered through an interstate 12
pipeline to a distribution system owned by the purchaser in amounts 13
that would result in exceeding 25,000 metric tons of carbon dioxide 14
equivalent emissions if fully combusted or oxidized, excluding the 15
amounts: (A) Supplied to covered entities under (a) through (d) of 16
this subsection; and (B) delivered to opt-in entities.17
(2) A person is a covered entity as of the beginning of the 18
second compliance period and all subsequent compliance periods if the 19
person reported emissions under RCW 70A.15.2200 or provided emissions 20
data as required by this chapter for any calendar year from 2023 21
through 2025, where the person owns or operates a waste to energy 22
facility utilized by a county and city solid waste management program 23
and the facility's emissions equal or exceed 25,000 metric tons of 24
carbon dioxide equivalent. 25
(3) A person is a covered entity as of the beginning of the third 26
compliance period, and all subsequent compliance periods if the 27
person reported emissions under RCW 70A.15.2200 or provided emissions 28
data as required by this chapter for 2027 or 2028, where the person 29
owns or operates a railroad company, as that term is defined in RCW 30
81.04.010, and the railroad company's emissions equal or exceed 31
25,000 metric tons of carbon dioxide equivalent. 32
(4) When a covered entity reports, during a compliance period, 33
emissions from a facility under RCW 70A.15.2200 that are below the 34
thresholds specified in subsection (1) or (2) of this section, the 35
covered entity continues to have a compliance obligation through the 36
current compliance period. When a covered entity reports emissions 37
below the threshold for each year during an entire compliance period, 38
or has ceased all processes at the facility requiring reporting under 39
RCW 70A.15.2200, the entity is no longer a covered entity as of the 40
p. 15 HB 2616
beginning of the subsequent compliance period unless the department 1
provides notice at least 12 months before the end of the compliance 2
period that the facility's emissions were within 10 percent of the 3
threshold and that the person will continue to be designated as a 4
covered entity in order to ensure equity among all covered entities. 5
Whenever a covered entity ceases to be a covered entity, the 6
department shall notify the appropriate policy and fiscal committees 7
of the legislature of the name of the entity and the reason the 8
entity is no longer a covered entity. 9
(5) For types of emission sources described in subsection (1) of 10
this section that begin or modify operation after January 1, 2023, 11
and types of emission sources described in subsection (2) of this 12
section that begin or modify operation after 2027, coverage under the 13
program starts in the calendar year in which emissions from the 14
source exceed the applicable thresholds in subsection (1) or (2) of 15
this section, or upon formal notice from the department that the 16
source is expected to exceed the applicable emissions threshold, 17
whichever happens first. Sources meeting these conditions are 18
required to transfer their first allowances on the first transfer 19
deadline of the year following the year in which their emissions were 20
equal to or exceeded the emissions threshold. 21
(6) For emission sources described in subsection (1) of this 22
section that are in operation or otherwise active between 2015 and 23
2019 but were not required to report emissions for those years under 24
RCW 70A.15.2200 for the reporting periods between 2015 and 2019, 25
coverage under the program starts in the calendar year following the 26
year in which emissions from the source exceed the applicable 27
thresholds in subsection (1) of this section as reported pursuant to 28
RCW 70A.15.2200 or provided as required by this chapter, or upon 29
formal notice from the department that the source is expected to 30
exceed the applicable emissions threshold for the first year that 31
source is required to report emissions, whichever happens first. 32
Sources meeting these criteria are required to transfer their first 33
allowances on the first transfer deadline of the year following the 34
year in which their emissions, as reported under RCW 70A.15.2200 or 35
provided as required by this chapter, were equal to or exceeded the 36
emissions threshold. 37
(7) The following emissions are exempt from coverage in the 38
program, regardless of the emissions reported under RCW 70A.15.2200 39
or provided as required by this chapter: 40
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(a) Emissions from the combustion of aviation fuels;1
(b) Emissions from watercraft fuels supplied in Washington that 2
are combusted outside of Washington; 3
(c) Emissions from a coal-fired electric generation facility 4
exempted from additional greenhouse gas limitations, requirements, or 5
performance standards under RCW 80.80.110; 6
(d) Carbon dioxide emissions from the combustion of biomass or 7
biofuels; 8
(e)(i) Motor vehicle fuel or special fuel that is used 9
exclusively for agricultural purposes by a farm fuel user. This 10
exemption is available only if a buyer of motor vehicle fuel or 11
special fuel provides the seller with an exemption certificate in a 12
form and manner prescribed by the department. ((Prior to January 1, 13
2030, this )) This exemption is available whether motor vehicle fuel 14
or special fuel is used to propel a motor vehicle or not ((, but 15
beginning January 1, 2030, this exemption only applies to motor 16
vehicle fuel or special fuel that the farm fuel user uses to propel a 17
motor vehicle)). 18
(ii) The department must determine a method for expanding the 19
exemption provided under (e)(i) of this subsection to include fuels 20
used for the purpose of transporting agricultural products on public 21
highways. The department must maintain this expanded exemption until 22
December 31, 2029, in order to provide the agricultural sector with a 23
feasible transition period. 24
(iii) For the purposes of this subsection: 25
(A) "Agricultural purposes" and "farm fuel user" have the same 26
meanings as provided in RCW 82.08.865; 27
(B) "Motor vehicle fuel" means gasoline, the chief use of which 28
is as a fuel for the propulsion of motor vehicles or vessels; and29
(C) "Special fuel" means diesel, liquefied petroleum gas (also 30
called propane), and biodiesel; 31
(f) Emissions from facilities with North American industry 32
classification system code 92811 (national security); ((and))33
(g) Emissions from municipal solid waste landfills that are 34
subject to, and in compliance with, chapter 70A.540 RCW; and35
(h) Emissions from the combustion, oxidation, other process, or 36
end use of a lubricant, as that term is defined in 40 C.F.R. Sec. 37
98.6 (2025). This exemption applies regardless of whether a supplier 38
demonstrates to the department a lubricant is not combusted or 39
oxidized. 40
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(8) The department shall not require multiple covered entities to 1
have a compliance obligation for the same emissions. The department 2
may by rule authorize refineries, fuel suppliers, facilities using 3
natural gas, and natural gas utilities to provide by agreement for 4
the assumption of the compliance obligation for fuel or natural gas 5
supplied and combusted in the state. The department must be notified 6
of such an agreement at least 12 months prior to the compliance 7
obligation period for which the agreement is applicable.8
(9)(a) The legislature intends to promote a growing and 9
sustainable economy and to avoid leakage of emissions from 10
manufacturing to other locations. The legislature further intends to 11
see innovative new businesses locate and grow in Washington that 12
contribute to Washington's prosperity and environmental objectives.13
(b) Consistent with the intent of the legislature to avoid the 14
leakage of emissions to other jurisdictions, in achieving the state's 15
greenhouse gas limits in RCW 70A.45.020, the state, including lead 16
agencies under chapter 43.21C RCW, shall pursue the limits in a 17
manner that recognizes that the siting and placement of new or 18
expanded best-in-class facilities with lower carbon emitting 19
processes is in the economic and environmental interests of the state 20
of Washington. 21
(c) In conducting a life-cycle analysis, if required, for new or 22
expanded facilities that require review under chapter 43.21C RCW, a 23
lead agency must evaluate and attribute any potential net cumulative 24
greenhouse gas emissions resulting from the project as compared to 25
other existing facilities or best available technology including 26
best-in-class facilities and emerging lower carbon processes that 27
supply the same product or end use. The department may adopt rules to 28
determine the appropriate threshold for applying this analysis.29
(d) Covered emissions from an entity that is or will be a covered 30
entity under this chapter may not be the basis for denial of a permit 31
for a new or expanded facility. Covered emissions must be included in 32
the analysis undertaken pursuant to (c) of this subsection. Nothing 33
in this subsection requires a lead agency or a permitting agency to 34
approve or issue a permit to a permit applicant, including to a new 35
or expanded fossil fuel project. 36
(e) A lead agency under chapter 43.21C RCW or a permitting agency 37
shall allow a new or expanded facility that is a covered entity or 38
opt-in entity to satisfy a mitigation requirement for its covered 39
emissions under this chapter and under any greenhouse gas emission 40
p. 18 HB 2616
mitigation requirements for covered emissions under chapter 43.21C 1
RCW by submitting to the department the number of compliance 2
instruments equivalent to its covered emissions during a compliance 3
period. 4
NEW SECTION. Sec. 202. A new section is added to chapter 70A.60 5
RCW to read as follows: 6
The provisions of this chapter, including the requirement to 7
participate in the refrigerant management program in RCW 70A.60.030 8
or to meet specific global warming potential limits under RCW 9
70A.60.020, 70A.60.060, or 70A.60.100 do not apply to substitutes, 10
refrigerants, or equipment used in agricultural production or food 11
storage. 12
NEW SECTION. Sec. 203. A new section is added to chapter 70A.60 13
RCW to read as follows: 14
The department shall administer a grant program for the purpose 15
of performing equipment retrofits necessary to protect food quality 16
and storage capacity. The department may adopt rules to administer 17
the grant program. 18
NEW SECTION. Sec. 204. A new section is added to chapter 70A.60 19
RCW to read as follows: 20
The agricultural refrigeration transition account is created in 21
the state treasury. All receipts directed to the account from 22
legislative appropriations, gifts, grants, and donations must be 23
deposited into the account. Moneys in the account may be spent only 24
after appropriation. Expenditures from the account may be used only 25
for capital grants for cold storage retrofits to protect food quality 26
and capacity. 27
PART 3: TAX RELIEF28
NEW SECTION. Sec. 301. (1) The department of agriculture and 29
Washington State University must complete a study on agricultural tax 30
incentives in other states in order to identify potential options for 31
additional agricultural tax incentives in Washington. At a minimum, 32
the study must analyze tax incentives pertaining to farm equipment 33
purchasing, including equipment with emissions-reducing technology 34
and equipment used in precision agriculture.35
p. 19 HB 2616
(2) In conformance with RCW 43.01.036, the department of 1
agriculture and Washington State University must provide a final 2
report to the appropriate committees of the legislature by December 3
1, 2028. 4
(3) This section expires June 30, 2029. 5
PART 4: MARKET ACCESS6
NEW SECTION. Sec. 401. (1) The department of agriculture and 7
Washington State University must complete a market access study to 8
identify potential barriers that limit growth and weaken food system 9
resilience. The study must include an analysis of:10
(a) Streamlining permit timelines, options for one-stop review, 11
and establishing fee caps; 12
(b) Capital incentives for rural processing and aggregation, 13
including tax credits or low interest financing; and14
(c) Freight, port, and cold chain investments that align with 15
food security and trade-exposed business strategies.16
(2) In conformance with RCW 43.01.036, the department of 17
agriculture and Washington State University must provide a final 18
report to the appropriate committees of the legislature by December 19
1, 2028. 20
(3) This section expires June 30, 2029. 21
PART 5: WORKFORCE DEVELOPMENT22
NEW SECTION. Sec. 501. The sum of $885,000, or as much thereof 23
as may be necessary, is appropriated for the fiscal year ending June 24
30, 2027, from the general fund to the department of agriculture for 25
the purposes of costs incurred in administering the tree fruit 26
leadership program.27
NEW SECTION. Sec. 502. (1) Washington State University shall 28
consult with the workforce training and education coordinating board 29
to complete an agricultural workforce development analysis that 30
addresses the following:31
(a) Opportunities for the state to partner with local nonprofit 32
organizations and community groups to expand current bilingual 33
leadership and safety training; 34
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(b) Opportunities for the state to align current workforce 1
development funding with economic development goals in rural and 2
underserved communities; and 3
(c) Opportunities for the state to address barriers in attracting 4
and retaining a rural workforce, including opportunities for online 5
education. 6
(2) Washington State University must provide the analysis in the 7
form of a report to the legislature by June 30, 2029, in conformance 8
with RCW 43.01.036. 9
PART 6: ACREAGE TRANSITION AND FARM VIABILITY10
NEW SECTION. Sec. 601. A new section is added to chapter 17.24 11
RCW to read as follows: 12
(1) The department shall administer a grant program for the 13
purpose of providing financial assistance for treatment and removal 14
alternatives to burning permanent crop vegetation that is no longer 15
productive in order to avoid the risk of pest infestations and reduce 16
agricultural carbon emissions. Treatment and removal alternatives 17
include grinding, mulching, or composting. 18
(2) The department may adopt rules to implement the grant 19
program. 20
(3) For the purposes of this section, "permanent crop" means tree 21
fruit, hops, and grapes. 22
NEW SECTION. Sec. 602. A new section is added to chapter 17.24 23
RCW to read as follows: 24
The crop removal account is created in the custody of the state 25
treasurer. All receipts directed to the account from legislative 26
appropriations, gifts, grants, and donations must be deposited into 27
the account. Expenditures from the account may be used only for the 28
grant program created in section 601 of this act. Only the director 29
of the department or the director's designee may authorize 30
expenditures from the account. The account is subject to allotment 31
procedures under chapter 43.88 RCW, but an appropriation is not 32
required for expenditures. 33
PART 7: AGRICULTURAL LABOR34
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NEW SECTION. Sec. 701. The department of labor and industries 1
shall provide a report to the legislature by June 30, 2029, in 2
compliance with RCW 43.01.036, that includes a review of the industry 3
impact from changes to agricultural and dairy worker overtime 4
policies enacted in chapter 249, Laws of 2021. The report must 5
include:6
(1) An analysis of changes in agricultural labor costs;7
(2) Options for establishing tax credits on overtime paid during 8
peak seasons; and 9
(3) Options for establishing seasonal grace periods where 10
overtime begins after a worker's weekly hours exceed 40 hours per 11
week. 12
Sec. 702. RCW 49.45.030 and 2025 c 277 s 3 are each amended to 13
read as follows: 14
(1) An employer is not required to comply with the notice 15
requirements under RCW 49.45.020 if: 16
(a)(i) At the time the notice would have been required, the 17
employer was actively seeking capital or business;18
(ii) The capital or business sought, if obtained, would have 19
enabled the employer to avoid or postpone the business closing or 20
mass layoff; and 21
(iii) The employer reasonably and in good faith believed that 22
giving the notice required by RCW 49.45.020 would have precluded the 23
employer from obtaining the needed capital or business;24
(b) The mass layoff or business closing is caused by business 25
circumstances that were not reasonably foreseeable at the time the 26
notice would have been required. The unforeseeable business 27
circumstances must be caused by a sudden, dramatic, and unexpected 28
action or condition outside of the employer's control;29
(c) The mass layoff or business closing is due to a natural 30
disaster, such as a flood, earthquake, drought, storm, tornado, or 31
similar effects of nature; or 32
(d) The mass layoff occurs at: 33
(i) A construction project and the affected employees were hired 34
with the understanding that their employment was limited to the 35
duration of a particular portion of that construction project; ((or))36
(ii) A multiemployer construction project and the only affected 37
employees are subject to a full union referral or dispatch system; or38
p. 22 HB 2616
(iii) A farm, agricultural or horticultural commercial processing 1
business, or related packing, storage, or transport business, and the 2
affected employees are agricultural employees as defined in RCW 3
49.46.130 or dairy employees as defined in RCW 49.46.130.4
(2) If an exception under this section applies for only part of 5
the 60-day notice window, notice is required at the time the 6
exception no longer applies. If notice is not provided, the employer 7
is liable for each day notice is not provided pursuant to RCW 8
49.45.040 and 49.45.050. 9
(3) The department may not determine an exception under this 10
section applies unless the employer meets the documentation and other 11
requirements established by the department pursuant to RCW 49.45.070.12
PART 8: CANNABIS AGRICULTURE13
NEW SECTION. Sec. 801. A new section is added to chapter 69.50 14
RCW to read as follows: 15
(1) All powers, duties, and functions of the board relating to 16
the licensing and regulating of the production, processing, and 17
testing of cannabis concentrates, useable cannabis, and cannabis-18
infused products are transferred to the department of agriculture. 19
All references to the board or the liquor and cannabis board in the 20
Revised Code of Washington shall be construed to mean the director or 21
the department of agriculture when referring to the functions 22
transferred in this section. 23
(2)(a) All reports, documents, surveys, books, records, files, 24
papers, or written material in the possession of the board pertaining 25
to the powers, functions, and duties transferred shall be delivered 26
to the custody of the department of agriculture. All cabinets, 27
furniture, office equipment, software, database, motor vehicles, and 28
other tangible property employed by the board in carrying out the 29
powers, functions, and duties transferred shall be made available to 30
the department of agriculture. 31
(b) Any appropriations made to the board for carrying out the 32
powers, functions, and duties transferred shall, on July 1, 2027, be 33
transferred and credited to the department of agriculture.34
(c) Whenever any question arises as to the transfer of any funds, 35
books, documents, records, papers, files, software, database, 36
equipment, or other tangible property used or held in the exercise of 37
the powers and the performance of the duties and functions 38
p. 23 HB 2616
transferred, the director of the office of financial management shall 1
make a determination as to the proper allocation and certify the same 2
to the state agencies concerned. 3
(3) All rules and all pending business before the board 4
pertaining to the powers, functions, and duties transferred shall be 5
continued and acted upon by the department of agriculture. All 6
existing contracts and obligations shall remain in full force and 7
shall be performed by the department of agriculture.8
(4) The transfer of the powers, duties, and functions of the 9
board does not affect the validity of any act performed before July 10
1, 2027. 11
(5) If apportionments of budgeted funds are required because of 12
the transfers directed by this section, the director of the office of 13
financial management shall certify the apportionments to the agencies 14
affected, the state auditor, and the state treasurer. Each of these 15
shall make the appropriate transfer and adjustments in funds and 16
appropriation. 17
Sec. 802. RCW 69.50.101 and 2024 c 62 s 17 are each amended to 18
read as follows: 19
The definitions in this section apply throughout this chapter 20
unless the context clearly requires otherwise. 21
(1) "Administer" means to apply a controlled substance, whether 22
by injection, inhalation, ingestion, or any other means, directly to 23
the body of a patient or research subject by: 24
(a) a practitioner authorized to prescribe (or, by the 25
practitioner's authorized agent); or 26
(b) the patient or research subject at the direction and in the 27
presence of the practitioner. 28
(2) "Agent" means an authorized person who acts on behalf of or 29
at the direction of a manufacturer, distributor, or dispenser. It 30
does not include a common or contract carrier, public 31
warehouseperson, or employee of the carrier or warehouseperson.32
(3) "Board" means the Washington state liquor and cannabis board.33
(4) "Cannabis" means all parts of the plant Cannabis, whether 34
growing or not, with a THC concentration greater than 0.3 percent on 35
a dry weight basis during the growing cycle through harvest and 36
usable cannabis. "Cannabis" does not include hemp or industrial hemp 37
as defined in RCW 15.140.020, or seeds used for licensed hemp 38
production under chapter 15.140 RCW. 39
p. 24 HB 2616
(5) "Cannabis concentrates" means products consisting wholly or 1
in part of the resin extracted from any part of the plant Cannabis 2
and having a THC concentration greater than ten percent.3
(6) "Cannabis processor" means a person licensed by the board to 4
process cannabis into cannabis concentrates, useable cannabis, and 5
cannabis-infused products, package and label cannabis concentrates, 6
useable cannabis, and cannabis-infused products for sale in retail 7
outlets, and sell cannabis concentrates, useable cannabis, and 8
cannabis-infused products at wholesale to cannabis retailers.9
(7) "Cannabis producer" means a person licensed by the board to 10
produce and sell cannabis at wholesale to cannabis processors and 11
other cannabis producers. 12
(8)(a) "Cannabis products" means useable cannabis, cannabis 13
concentrates, and cannabis-infused products as defined in this 14
section, including any product intended to be consumed or absorbed 15
inside the body by any means including inhalation, ingestion, or 16
insertion, with any detectable amount of THC. 17
(b) "Cannabis products" also means any product containing only 18
THC content. 19
(c) "Cannabis products" does not include cannabis health and 20
beauty aids as defined in RCW 69.50.575 or products approved by the 21
United States food and drug administration. 22
(9) "Cannabis researcher" means a person licensed by the board to 23
produce, process, and possess cannabis for the purposes of conducting 24
research on cannabis and cannabis-derived drug products.25
(10) "Cannabis retailer" means a person licensed by the board to 26
sell cannabis concentrates, useable cannabis, and cannabis-infused 27
products in a retail outlet. 28
(11) "Cannabis-infused products" means products that contain 29
cannabis or cannabis extracts, are intended for human use, are 30
derived from cannabis as defined in subsection (4) of this section, 31
and have a THC concentration no greater than ten percent. The term 32
"cannabis-infused products" does not include either useable cannabis 33
or cannabis concentrates. 34
(12) "CBD concentration" has the meaning provided in RCW 35
69.51A.010. 36
(13) "CBD product" means any product containing or consisting of 37
cannabidiol. 38
(14) "Commission" means the pharmacy quality assurance 39
commission. 40
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(15) "Controlled substance" means a drug, substance, or immediate 1
precursor included in Schedules I through V as set forth in federal 2
or state laws, or federal or commission rules, but does not include 3
hemp or industrial hemp as defined in RCW 15.140.020.4
(16)(a) "Controlled substance analog" means a substance the 5
chemical structure of which is substantially similar to the chemical 6
structure of a controlled substance in Schedule I or II and:7
(i) that has a stimulant, depressant, or hallucinogenic effect on 8
the central nervous system substantially similar to the stimulant, 9
depressant, or hallucinogenic effect on the central nervous system of 10
a controlled substance included in Schedule I or II; or11
(ii) with respect to a particular individual, that the individual 12
represents or intends to have a stimulant, depressant, or 13
hallucinogenic effect on the central nervous system substantially 14
similar to the stimulant, depressant, or hallucinogenic effect on the 15
central nervous system of a controlled substance included in Schedule 16
I or II. 17
(b) The term does not include: 18
(i) a controlled substance; 19
(ii) a substance for which there is an approved new drug 20
application; 21
(iii) a substance with respect to which an exemption is in effect 22
for investigational use by a particular person under Section 505 of 23
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 24
chapter 69.77 RCW to the extent conduct with respect to the substance 25
is pursuant to the exemption; or 26
(iv) any substance to the extent not intended for human 27
consumption before an exemption takes effect with respect to the 28
substance. 29
(17) "Deliver" or "delivery" means the actual or constructive 30
transfer from one person to another of a substance, whether or not 31
there is an agency relationship. 32
(18) "Department" means the department of health.33
(19) "Designated provider" has the meaning provided in RCW 34
69.51A.010. 35
(20) "Director" means the director of the department of 36
agriculture.37
(21) "Dispense" means the interpretation of a prescription or 38
order for a controlled substance and, pursuant to that prescription 39
or order, the proper selection, measuring, compounding, labeling, or 40
p. 26 HB 2616
packaging necessary to prepare that prescription or order for 1
delivery. 2
(((21))) (22) "Dispenser" means a practitioner who dispenses.3
(((22))) (23) "Distribute" means to deliver other than by 4
administering or dispensing a controlled substance.5
(((23))) (24) "Distributor" means a person who distributes.6
(((24))) (25) "Drug" means (a) a controlled substance recognized 7
as a drug in the official United States pharmacopoeia/national 8
formulary or the official homeopathic pharmacopoeia of the United 9
States, or any supplement to them; (b) controlled substances intended 10
for use in the diagnosis, cure, mitigation, treatment, or prevention 11
of disease in individuals or animals; (c) controlled substances 12
(other than food) intended to affect the structure or any function of 13
the body of individuals or animals; and (d) controlled substances 14
intended for use as a component of any article specified in (a), (b), 15
or (c) of this subsection. The term does not include devices or their 16
components, parts, or accessories. 17
(((25))) (26) "Drug enforcement administration" means the drug 18
enforcement administration in the United States Department of 19
Justice, or its successor agency. 20
(((26))) (27) "Electronic communication of prescription 21
information" means the transmission of a prescription or refill 22
authorization for a drug of a practitioner using computer systems. 23
The term does not include a prescription or refill authorization 24
verbally transmitted by telephone nor a facsimile manually signed by 25
the practitioner. 26
(((27))) (28) "Immature plant or clone" means a plant or clone 27
that has no flowers, is less than ((twelve)) 12 inches in height, and 28
is less than ((twelve)) 12 inches in diameter. 29
(((28))) (29) "Immediate precursor" means a substance:30
(a) that the commission has found to be and by rule designates as 31
being the principal compound commonly used, or produced primarily for 32
use, in the manufacture of a controlled substance;33
(b) that is an immediate chemical intermediary used or likely to 34
be used in the manufacture of a controlled substance; and35
(c) the control of which is necessary to prevent, curtail, or 36
limit the manufacture of the controlled substance.37
(((29))) (30) "Isomer" means an optical isomer, but in subsection 38
(((33))) (34)(e) of this section, RCW 69.50.204(1) (l) and (hh), and 39
69.50.206(2)(d), the term includes any geometrical isomer; in RCW 40
p. 27 HB 2616
69.50.204(1) (h) and (pp)((,)) and 69.50.210(3)(([,])), the term 1
includes any positional isomer; and in RCW 69.50.204(1)(ii), 2
69.50.204(3), and 69.50.208(1)(([,])), the term includes any 3
positional or geometric isomer. 4
(((30))) (31) "Lot" means a definite quantity of cannabis, 5
cannabis concentrates, useable cannabis, or cannabis-infused product 6
identified by a lot number, every portion or package of which is 7
uniform within recognized tolerances for the factors that appear in 8
the labeling. 9
(((31))) (32) "Lot number" must identify the licensee by business 10
or trade name and Washington state unified business identifier 11
number, and the date of harvest or processing for each lot of 12
cannabis, cannabis concentrates, useable cannabis, or cannabis-13
infused product. 14
(((32))) (33) "Manufacture" means the production, preparation, 15
propagation, compounding, conversion, or processing of a controlled 16
substance, either directly or indirectly or by extraction from 17
substances of natural origin, or independently by means of chemical 18
synthesis, or by a combination of extraction and chemical synthesis, 19
and includes any packaging or repackaging of the substance or 20
labeling or relabeling of its container. The term does not include 21
the preparation, compounding, packaging, repackaging, labeling, or 22
relabeling of a controlled substance: 23
(a) by a practitioner as an incident to the practitioner's 24
administering or dispensing of a controlled substance in the course 25
of the practitioner's professional practice; or 26
(b) by a practitioner, or by the practitioner's authorized agent 27
under the practitioner's supervision, for the purpose of, or as an 28
incident to, research, teaching, or chemical analysis and not for 29
sale. 30
(((33))) (34) "Narcotic drug" means any of the following, whether 31
produced directly or indirectly by extraction from substances of 32
vegetable origin, or independently by means of chemical synthesis, or 33
by a combination of extraction and chemical synthesis:34
(a) Opium, opium derivative, and any derivative of opium or opium 35
derivative, including their salts, isomers, and salts of isomers, 36
whenever the existence of the salts, isomers, and salts of isomers is 37
possible within the specific chemical designation. The term does not 38
include the isoquinoline alkaloids of opium. 39
p. 28 HB 2616
(b) Synthetic opiate and any derivative of synthetic opiate, 1
including their isomers, esters, ethers, salts, and salts of isomers, 2
esters, and ethers, whenever the existence of the isomers, esters, 3
ethers, and salts is possible within the specific chemical 4
designation. 5
(c) Poppy straw and concentrate of poppy straw.6
(d) Coca leaves, except coca leaves and extracts of coca leaves 7
from which cocaine, ecgonine, and derivatives or ecgonine or their 8
salts have been removed. 9
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.10
(f) Cocaine base. 11
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 12
thereof. 13
(h) Any compound, mixture, or preparation containing any quantity 14
of any substance referred to in (a) through (g) of this subsection.15
(((34))) (35) "Opiate" means any substance having an addiction-16
forming or addiction-sustaining liability similar to morphine or 17
being capable of conversion into a drug having addiction-forming or 18
addiction-sustaining liability. The term includes opium, substances 19
derived from opium (opium derivatives), and synthetic opiates. The 20
term does not include, unless specifically designated as controlled 21
under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-22
methylmorphinan and its salts (dextromethorphan). The term includes 23
the racemic and levorotatory forms of dextromethorphan.24
(((35))) (36) "Opium poppy" means the plant of the species 25
Papaver somniferum L., except its seeds. 26
(((36))) (37) "Package" means a container that has a single unit 27
or group of units. 28
(((37))) (38) "Person" means individual, corporation, business 29
trust, estate, trust, partnership, association, joint venture, 30
government, governmental subdivision or agency, or any other legal or 31
commercial entity. 32
(((38))) (39) "Plant" has the meaning provided in RCW 69.51A.010.33
(((39))) (40) "Poppy straw" means all parts, except the seeds, of 34
the opium poppy, after mowing. 35
(((40))) (41) "Practitioner" means: 36
(a) A physician under chapter 18.71 RCW; a physician assistant 37
under chapter 18.71A RCW; an osteopathic physician and surgeon under 38
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 39
who is certified by the optometry board under RCW 18.53.010 subject 40
p. 29 HB 2616
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 1
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 2
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 3
registered nurse practitioner, or licensed practical nurse under 4
chapter 18.79 RCW; a naturopathic physician under chapter 18.36A RCW 5
who is licensed under RCW 18.36A.030 subject to any limitations in 6
RCW 18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 7
investigator under this chapter, licensed, registered or otherwise 8
permitted insofar as is consistent with those licensing laws to 9
distribute, dispense, conduct research with respect to or administer 10
a controlled substance in the course of their professional practice 11
or research in this state. 12
(b) A pharmacy, hospital or other institution licensed, 13
registered, or otherwise permitted to distribute, dispense, conduct 14
research with respect to or to administer a controlled substance in 15
the course of professional practice or research in this state.16
(c) A physician licensed to practice medicine and surgery, a 17
physician licensed to practice osteopathic medicine and surgery, a 18
dentist licensed to practice dentistry, a podiatric physician and 19
surgeon licensed to practice podiatric medicine and surgery, a 20
licensed physician assistant or a licensed osteopathic physician 21
assistant specifically approved to prescribe controlled substances by 22
his or her state's medical commission or equivalent and his or her 23
participating physician as defined in RCW 18.71A.010, an advanced 24
registered nurse practitioner licensed to prescribe controlled 25
substances, or a veterinarian licensed to practice veterinary 26
medicine in any state of the United States. 27
(((41))) (42) "Prescription" means an order for controlled 28
substances issued by a practitioner duly authorized by law or rule in 29
the state of Washington to prescribe controlled substances within the 30
scope of his or her professional practice for a legitimate medical 31
purpose. 32
(((42))) (43) "Production" includes the manufacturing, planting, 33
cultivating, growing, or harvesting of a controlled substance.34
(((43))) (44) "Qualifying patient" has the meaning provided in 35
RCW 69.51A.010. 36
(((44))) (45) "Recognition card" has the meaning provided in RCW 37
69.51A.010. 38
p. 30 HB 2616
(((45))) (46) "Retail outlet" means a location licensed by the 1
board for the retail sale of cannabis concentrates, useable cannabis, 2
and cannabis-infused products. 3
(((46))) (47) "Secretary" means the secretary of health or the 4
secretary's designee. 5
(((47))) (48) "Social equity plan" means a plan that addresses at 6
least some of the elements outlined in this subsection (((47))) (48), 7
along with any additional plan components or requirements approved by 8
the board following consultation with the task force created in RCW 9
69.50.336. The plan may include: 10
(a) A statement that indicates how the cannabis licensee will 11
work to promote social equity goals in their community;12
(b) A description of how the cannabis licensee will meet social 13
equity goals as defined in RCW 69.50.335; 14
(c) The composition of the workforce the licensee has employed or 15
intends to hire; and 16
(d) Business plans involving partnerships or assistance to 17
organizations or residents with connections to populations with a 18
history of high rates of enforcement of cannabis prohibition.19
(((48))) (49) "State," unless the context otherwise requires, 20
means a state of the United States, the District of Columbia, the 21
Commonwealth of Puerto Rico, or a territory or insular possession 22
subject to the jurisdiction of the United States. 23
(((49))) (50) "THC concentration" means percent of 24
tetrahydrocannabinol content of any part of the plant Cannabis, or 25
per volume or weight of cannabis product, or the combined percent of 26
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of 27
the plant Cannabis regardless of moisture content.28
(((50))) (51) "Ultimate user" means an individual who lawfully 29
possesses a controlled substance for the individual's own use or for 30
the use of a member of the individual's household or for 31
administering to an animal owned by the individual or by a member of 32
the individual's household. 33
(((51))) (52) "Unit" means an individual consumable item within a 34
package of one or more consumable items in solid, liquid, gas, or any 35
form intended for human consumption. 36
(((52))) (53) "Useable cannabis" means dried cannabis flowers. 37
The term "useable cannabis" does not include either cannabis-infused 38
products or cannabis concentrates. 39
p. 31 HB 2616
(((53))) (54) "Youth access" means the level of interest persons 1
under the age of ((twenty-one)) 21 may have in a vapor product, as 2
well as the degree to which the product is available or appealing to 3
such persons, and the likelihood of initiation, use, or addiction by 4
adolescents and young adults. 5
Sec. 803. RCW 69.50.101 and 2025 c 58 s 5126 are each amended to 6
read as follows: 7
The definitions in this section apply throughout this chapter 8
unless the context clearly requires otherwise. 9
(1) "Administer" means to apply a controlled substance, whether 10
by injection, inhalation, ingestion, or any other means, directly to 11
the body of a patient or research subject by: 12
(a) a practitioner authorized to prescribe (or, by the 13
practitioner's authorized agent); or 14
(b) the patient or research subject at the direction and in the 15
presence of the practitioner. 16
(2) "Agent" means an authorized person who acts on behalf of or 17
at the direction of a manufacturer, distributor, or dispenser. It 18
does not include a common or contract carrier, public 19
warehouseperson, or employee of the carrier or warehouseperson.20
(3) "Board" means the Washington state liquor and cannabis board.21
(4) "Cannabis" means all parts of the plant Cannabis, whether 22
growing or not, with a THC concentration greater than 0.3 percent on 23
a dry weight basis during the growing cycle through harvest and 24
usable cannabis. "Cannabis" does not include hemp or industrial hemp 25
as defined in RCW 15.140.020, or seeds used for licensed hemp 26
production under chapter 15.140 RCW. 27
(5) "Cannabis concentrates" means products consisting wholly or 28
in part of the resin extracted from any part of the plant Cannabis 29
and having a THC concentration greater than ten percent.30
(6) "Cannabis processor" means a person licensed by the board to 31
process cannabis into cannabis concentrates, useable cannabis, and 32
cannabis-infused products, package and label cannabis concentrates, 33
useable cannabis, and cannabis-infused products for sale in retail 34
outlets, and sell cannabis concentrates, useable cannabis, and 35
cannabis-infused products at wholesale to cannabis retailers.36
(7) "Cannabis producer" means a person licensed by the board to 37
produce and sell cannabis at wholesale to cannabis processors and 38
other cannabis producers. 39
p. 32 HB 2616
(8)(a) "Cannabis products" means useable cannabis, cannabis 1
concentrates, and cannabis-infused products as defined in this 2
section, including any product intended to be consumed or absorbed 3
inside the body by any means including inhalation, ingestion, or 4
insertion, with any detectable amount of THC. 5
(b) "Cannabis products" also means any product containing only 6
THC content. 7
(c) "Cannabis products" does not include cannabis health and 8
beauty aids as defined in RCW 69.50.575 or products approved by the 9
United States food and drug administration. 10
(9) "Cannabis researcher" means a person licensed by the board to 11
produce, process, and possess cannabis for the purposes of conducting 12
research on cannabis and cannabis-derived drug products.13
(10) "Cannabis retailer" means a person licensed by the board to 14
sell cannabis concentrates, useable cannabis, and cannabis-infused 15
products in a retail outlet. 16
(11) "Cannabis-infused products" means products that contain 17
cannabis or cannabis extracts, are intended for human use, are 18
derived from cannabis as defined in subsection (4) of this section, 19
and have a THC concentration no greater than ten percent. The term 20
"cannabis-infused products" does not include either useable cannabis 21
or cannabis concentrates. 22
(12) "CBD concentration" has the meaning provided in RCW 23
69.51A.010. 24
(13) "CBD product" means any product containing or consisting of 25
cannabidiol. 26
(14) "Commission" means the pharmacy quality assurance 27
commission. 28
(15) "Controlled substance" means a drug, substance, or immediate 29
precursor included in Schedules I through V as set forth in federal 30
or state laws, or federal or commission rules, but does not include 31
hemp or industrial hemp as defined in RCW 15.140.020.32
(16)(a) "Controlled substance analog" means a substance the 33
chemical structure of which is substantially similar to the chemical 34
structure of a controlled substance in Schedule I or II and:35
(i) that has a stimulant, depressant, or hallucinogenic effect on 36
the central nervous system substantially similar to the stimulant, 37
depressant, or hallucinogenic effect on the central nervous system of 38
a controlled substance included in Schedule I or II; or39
p. 33 HB 2616
(ii) with respect to a particular individual, that the individual 1
represents or intends to have a stimulant, depressant, or 2
hallucinogenic effect on the central nervous system substantially 3
similar to the stimulant, depressant, or hallucinogenic effect on the 4
central nervous system of a controlled substance included in Schedule 5
I or II. 6
(b) The term does not include: 7
(i) a controlled substance; 8
(ii) a substance for which there is an approved new drug 9
application; 10
(iii) a substance with respect to which an exemption is in effect 11
for investigational use by a particular person under Section 505 of 12
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 13
chapter 69.77 RCW to the extent conduct with respect to the substance 14
is pursuant to the exemption; or 15
(iv) any substance to the extent not intended for human 16
consumption before an exemption takes effect with respect to the 17
substance. 18
(17) "Deliver" or "delivery" means the actual or constructive 19
transfer from one person to another of a substance, whether or not 20
there is an agency relationship. 21
(18) "Department" means the department of health.22
(19) "Designated provider" has the meaning provided in RCW 23
69.51A.010. 24
(20) "Director" means the director of the department of 25
agriculture.26
(21) "Dispense" means the interpretation of a prescription or 27
order for a controlled substance and, pursuant to that prescription 28
or order, the proper selection, measuring, compounding, labeling, or 29
packaging necessary to prepare that prescription or order for 30
delivery. 31
(((21))) (22) "Dispenser" means a practitioner who dispenses.32
(((22))) (23) "Distribute" means to deliver other than by 33
administering or dispensing a controlled substance.34
(((23))) (24) "Distributor" means a person who distributes.35
(((24))) (25) "Drug" means (a) a controlled substance recognized 36
as a drug in the official United States pharmacopoeia/national 37
formulary or the official homeopathic pharmacopoeia of the United 38
States, or any supplement to them; (b) controlled substances intended 39
for use in the diagnosis, cure, mitigation, treatment, or prevention 40
p. 34 HB 2616
of disease in individuals or animals; (c) controlled substances 1
(other than food) intended to affect the structure or any function of 2
the body of individuals or animals; and (d) controlled substances 3
intended for use as a component of any article specified in (a), (b), 4
or (c) of this subsection. The term does not include devices or their 5
components, parts, or accessories. 6
(((25))) (26) "Drug enforcement administration" means the drug 7
enforcement administration in the United States Department of 8
Justice, or its successor agency. 9
(((26))) (27) "Electronic communication of prescription 10
information" means the transmission of a prescription or refill 11
authorization for a drug of a practitioner using computer systems. 12
The term does not include a prescription or refill authorization 13
verbally transmitted by telephone nor a facsimile manually signed by 14
the practitioner. 15
(((27))) (28) "Immature plant or clone" means a plant or clone 16
that has no flowers, is less than ((twelve)) 12 inches in height, and 17
is less than ((twelve)) 12 inches in diameter. 18
(((28))) (29) "Immediate precursor" means a substance:19
(a) that the commission has found to be and by rule designates as 20
being the principal compound commonly used, or produced primarily for 21
use, in the manufacture of a controlled substance;22
(b) that is an immediate chemical intermediary used or likely to 23
be used in the manufacture of a controlled substance; and24
(c) the control of which is necessary to prevent, curtail, or 25
limit the manufacture of the controlled substance.26
(((29))) (30) "Isomer" means an optical isomer, but in subsection 27
(((33))) (34)(e) of this section, RCW 69.50.204(1) (l) and (hh), and 28
69.50.206(2)(d), the term includes any geometrical isomer; in RCW 29
69.50.204(1) (h) and (pp) and 69.50.210(3), the term includes any 30
positional isomer; and in RCW 69.50.204(1)(ii), 69.50.204(3), and 31
69.50.208(1), the term includes any positional or geometric isomer.32
(((30))) (31) "Lot" means a definite quantity of cannabis, 33
cannabis concentrates, useable cannabis, or cannabis-infused product 34
identified by a lot number, every portion or package of which is 35
uniform within recognized tolerances for the factors that appear in 36
the labeling. 37
(((31))) (32) "Lot number" must identify the licensee by business 38
or trade name and Washington state unified business identifier 39
number, and the date of harvest or processing for each lot of 40
p. 35 HB 2616
cannabis, cannabis concentrates, useable cannabis, or cannabis-1
infused product. 2
(((32))) (33) "Manufacture" means the production, preparation, 3
propagation, compounding, conversion, or processing of a controlled 4
substance, either directly or indirectly or by extraction from 5
substances of natural origin, or independently by means of chemical 6
synthesis, or by a combination of extraction and chemical synthesis, 7
and includes any packaging or repackaging of the substance or 8
labeling or relabeling of its container. The term does not include 9
the preparation, compounding, packaging, repackaging, labeling, or 10
relabeling of a controlled substance: 11
(a) by a practitioner as an incident to the practitioner's 12
administering or dispensing of a controlled substance in the course 13
of the practitioner's professional practice; or 14
(b) by a practitioner, or by the practitioner's authorized agent 15
under the practitioner's supervision, for the purpose of, or as an 16
incident to, research, teaching, or chemical analysis and not for 17
sale. 18
(((33))) (34) "Narcotic drug" means any of the following, whether 19
produced directly or indirectly by extraction from substances of 20
vegetable origin, or independently by means of chemical synthesis, or 21
by a combination of extraction and chemical synthesis:22
(a) Opium, opium derivative, and any derivative of opium or opium 23
derivative, including their salts, isomers, and salts of isomers, 24
whenever the existence of the salts, isomers, and salts of isomers is 25
possible within the specific chemical designation. The term does not 26
include the isoquinoline alkaloids of opium. 27
(b) Synthetic opiate and any derivative of synthetic opiate, 28
including their isomers, esters, ethers, salts, and salts of isomers, 29
esters, and ethers, whenever the existence of the isomers, esters, 30
ethers, and salts is possible within the specific chemical 31
designation. 32
(c) Poppy straw and concentrate of poppy straw.33
(d) Coca leaves, except coca leaves and extracts of coca leaves 34
from which cocaine, ecgonine, and derivatives or ecgonine or their 35
salts have been removed. 36
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.37
(f) Cocaine base. 38
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 39
thereof. 40
p. 36 HB 2616
(h) Any compound, mixture, or preparation containing any quantity 1
of any substance referred to in (a) through (g) of this subsection.2
(((34))) (35) "Opiate" means any substance having an addiction-3
forming or addiction-sustaining liability similar to morphine or 4
being capable of conversion into a drug having addiction-forming or 5
addiction-sustaining liability. The term includes opium, substances 6
derived from opium (opium derivatives), and synthetic opiates. The 7
term does not include, unless specifically designated as controlled 8
under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-9
methylmorphinan and its salts (dextromethorphan). The term includes 10
the racemic and levorotatory forms of dextromethorphan.11
(((35))) (36) "Opium poppy" means the plant of the species 12
Papaver somniferum L., except its seeds. 13
(((36))) (37) "Package" means a container that has a single unit 14
or group of units. 15
(((37))) (38) "Person" means individual, corporation, business 16
trust, estate, trust, partnership, association, joint venture, 17
government, governmental subdivision or agency, or any other legal or 18
commercial entity. 19
(((38))) (39) "Plant" has the meaning provided in RCW 69.51A.010.20
(((39))) (40) "Poppy straw" means all parts, except the seeds, of 21
the opium poppy, after mowing. 22
(((40))) (41) "Practitioner" means: 23
(a) A physician under chapter 18.71 RCW; a physician assistant 24
under chapter 18.71A RCW; an osteopathic physician and surgeon under 25
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 26
who is certified by the optometry board under RCW 18.53.010 subject 27
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 28
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 29
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 30
practice registered nurse, or licensed practical nurse under chapter 31
18.79 RCW; a naturopathic physician under chapter 18.36A RCW who is 32
licensed under RCW 18.36A.030 subject to any limitations in RCW 33
18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 34
investigator under this chapter, licensed, registered or otherwise 35
permitted insofar as is consistent with those licensing laws to 36
distribute, dispense, conduct research with respect to or administer 37
a controlled substance in the course of their professional practice 38
or research in this state. 39
p. 37 HB 2616
(b) A pharmacy, hospital or other institution licensed, 1
registered, or otherwise permitted to distribute, dispense, conduct 2
research with respect to or to administer a controlled substance in 3
the course of professional practice or research in this state.4
(c) A physician licensed to practice medicine and surgery, a 5
physician licensed to practice osteopathic medicine and surgery, a 6
dentist licensed to practice dentistry, a podiatric physician and 7
surgeon licensed to practice podiatric medicine and surgery, a 8
licensed physician assistant or a licensed osteopathic physician 9
assistant specifically approved to prescribe controlled substances by 10
his or her state's medical commission or equivalent and his or her 11
participating physician as defined in RCW 18.71A.010, an advanced 12
practice registered nurse licensed to prescribe controlled 13
substances, or a veterinarian licensed to practice veterinary 14
medicine in any state of the United States. 15
(((41))) (42) "Prescription" means an order for controlled 16
substances issued by a practitioner duly authorized by law or rule in 17
the state of Washington to prescribe controlled substances within the 18
scope of his or her professional practice for a legitimate medical 19
purpose. 20
(((42))) (43) "Production" includes the manufacturing, planting, 21
cultivating, growing, or harvesting of a controlled substance.22
(((43))) (44) "Qualifying patient" has the meaning provided in 23
RCW 69.51A.010. 24
(((44))) (45) "Recognition card" has the meaning provided in RCW 25
69.51A.010. 26
(((45))) (46) "Retail outlet" means a location licensed by the 27
board for the retail sale of cannabis concentrates, useable cannabis, 28
and cannabis-infused products. 29
(((46))) (47) "Secretary" means the secretary of health or the 30
secretary's designee. 31
(((47))) (48) "Social equity plan" means a plan that addresses at 32
least some of the elements outlined in this subsection (((47))) (48), 33
along with any additional plan components or requirements approved by 34
the board following consultation with the task force created in RCW 35
69.50.336. The plan may include: 36
(a) A statement that indicates how the cannabis licensee will 37
work to promote social equity goals in their community;38
(b) A description of how the cannabis licensee will meet social 39
equity goals as defined in RCW 69.50.335; 40
p. 38 HB 2616
(c) The composition of the workforce the licensee has employed or 1
intends to hire; and 2
(d) Business plans involving partnerships or assistance to 3
organizations or residents with connections to populations with a 4
history of high rates of enforcement of cannabis prohibition.5
(((48))) (49) "State," unless the context otherwise requires, 6
means a state of the United States, the District of Columbia, the 7
Commonwealth of Puerto Rico, or a territory or insular possession 8
subject to the jurisdiction of the United States. 9
(((49))) (50) "THC concentration" means percent of 10
tetrahydrocannabinol content of any part of the plant Cannabis, or 11
per volume or weight of cannabis product, or the combined percent of 12
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of 13
the plant Cannabis regardless of moisture content.14
(((50))) (51) "Ultimate user" means an individual who lawfully 15
possesses a controlled substance for the individual's own use or for 16
the use of a member of the individual's household or for 17
administering to an animal owned by the individual or by a member of 18
the individual's household. 19
(((51))) (52) "Unit" means an individual consumable item within a 20
package of one or more consumable items in solid, liquid, gas, or any 21
form intended for human consumption. 22
(((52))) (53) "Useable cannabis" means dried cannabis flowers. 23
The term "useable cannabis" does not include either cannabis-infused 24
products or cannabis concentrates. 25
(((53))) (54) "Youth access" means the level of interest persons 26
under the age of ((twenty-one)) 21 may have in a vapor product, as 27
well as the degree to which the product is available or appealing to 28
such persons, and the likelihood of initiation, use, or addiction by 29
adolescents and young adults. 30
Sec. 804. RCW 69.50.325 and 2025 c 250 s 1 are each amended to 31
read as follows: 32
(1) There shall be a cannabis producer's license regulated by the 33
((board)) director and subject to annual renewal. The licensee is 34
authorized to produce: (a) Cannabis for sale at wholesale to cannabis 35
processors and other cannabis producers; (b) immature plants or 36
clones and seeds for sale to cooperatives as described under RCW 37
69.51A.250; and (c) immature plants or clones and seeds for sale to 38
qualifying patients and designated providers as provided under RCW 39
p. 39 HB 2616
69.51A.310. The production, possession, delivery, distribution, and 1
sale of cannabis in accordance with the provisions of this chapter 2
and the rules adopted to implement and enforce it, by a validly 3
licensed cannabis producer, shall not be a criminal or civil offense 4
under Washington state law. Every cannabis producer's license shall 5
be issued in the name of the applicant, shall specify the location at 6
which the cannabis producer intends to operate, which must be within 7
the state of Washington, and the holder thereof shall not allow any 8
other person to use the license. The application fee for a cannabis 9
producer's license shall be ((two hundred fifty dollars )) $250. The 10
annual fee for issuance and renewal of a cannabis producer's license 11
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 12
separate license shall be required for each location at which a 13
cannabis producer intends to produce cannabis. 14
(2) There shall be a cannabis processor's license to process, 15
package, and label cannabis concentrates, useable cannabis, and 16
cannabis-infused products for sale at wholesale to cannabis 17
processors and cannabis retailers, regulated by the ((board)) 18
director and subject to annual renewal. The processing, packaging, 19
possession, delivery, distribution, and sale of cannabis, useable 20
cannabis, cannabis-infused products, and cannabis concentrates in 21
accordance with the provisions of this chapter and chapter 69.51A RCW 22
and the rules adopted to implement and enforce these chapters, by a 23
validly licensed cannabis processor, shall not be a criminal or civil 24
offense under Washington state law. Every cannabis processor's 25
license shall be issued in the name of the applicant, shall specify 26
the location at which the licensee intends to operate, which must be 27
within the state of Washington, and the holder thereof shall not 28
allow any other person to use the license. The application fee for a 29
cannabis processor's license shall be ((two hundred fifty dollars )) 30
$250. The annual fee for issuance and renewal of a cannabis 31
processor's license shall be ((one thousand three hundred eighty-one 32
dollars)) $1,381. A separate license shall be required for each 33
location at which a cannabis processor intends to process cannabis.34
(3)(a) There shall be a cannabis retailer's license to sell 35
cannabis concentrates, useable cannabis, and cannabis-infused 36
products at retail in retail outlets, regulated by the board and 37
subject to annual renewal. The possession, delivery, distribution, 38
and sale of cannabis concentrates, useable cannabis, and cannabis-39
infused products in accordance with ((the provisions of )) this 40
p. 40 HB 2616
chapter and the rules adopted to implement and enforce it, by a 1
validly licensed cannabis retailer, shall not be a criminal or civil 2
offense under Washington state law. Every cannabis retailer's license 3
shall be issued in the name of the applicant, shall specify the 4
location of the retail outlet the licensee intends to operate, which 5
must be within the state of Washington, and the holder thereof shall 6
not allow any other person to use the license. The application fee 7
for a cannabis retailer's license shall be ((two hundred fifty 8
dollars)) $250. The annual fee for issuance and renewal of a cannabis 9
retailer's license shall be ((one thousand three hundred eighty-one 10
dollars)) $1,381. A separate license shall be required for each 11
location at which a cannabis retailer intends to sell cannabis 12
concentrates, useable cannabis, and cannabis-infused products.13
(b)(i) An individual retail licensee and all other persons or 14
entities with a financial or other ownership interest in the business 15
operating under the license are limited, in the aggregate, to holding 16
a collective total of not more than five retail cannabis licenses.17
(ii) A retail licensee and all other persons or entities with a 18
financial or other ownership interest may not enter into any 19
management agreement under RCW 69.50.331(1)(((b))) (c)(iv) or any 20
agreement as referenced in RCW 69.50.395, whether or not in exchange 21
for payment, that confers a financial interest across more than five 22
retail cannabis licenses. For the purposes of this subsection, 23
"financial interest" includes, but is not limited to:24
(A) Any sharing of profits or revenue; 25
(B) Any assistance, coordination, or recommendation for the 26
purchase of cannabis products whereupon pricing is coordinated or 27
discounted; 28
(C) The common use of intellectual property assets such as 29
branding, trade names, logos, social media accounts, or websites;30
(D) Any operational control over the business or operational 31
support for typical day-to-day business operations, including core 32
business or executive functions of the retail cannabis license;33
(E) Any sharing or coordination of marketing and advertising 34
efforts or expenses; and 35
(F) Any coordinated sharing of employment or hiring decisions, 36
including the shared employment of individuals. 37
(c)(i) A cannabis retailer's license is subject to forfeiture in 38
accordance with rules adopted by the board pursuant to this section.39
p. 41 HB 2616
(ii) The board shall adopt rules to establish a license 1
forfeiture process for a licensed cannabis retailer that is not fully 2
operational and open to the public within a specified period from the 3
date of license issuance, as established by the board, subject to the 4
following restrictions: 5
(A) No cannabis retailer's license may be subject to forfeiture 6
within the first nine months of license issuance; and7
(B) The board must require license forfeiture on or before 8
((twenty-four)) 24 calendar months of license issuance if a cannabis 9
retailer is not fully operational and open to the public, unless the 10
board determines that circumstances out of the licensee's control are 11
preventing the licensee from becoming fully operational and that, in 12
the board's discretion, the circumstances warrant extending the 13
forfeiture period beyond ((twenty-four)) 24 calendar months.14
(iii) The board has discretion in adopting rules under this 15
subsection (3)(c). 16
(iv) ((This subsection (3)(c) applies to cannabis retailer's 17
licenses issued before and after July 23, 2017. However, no license 18
of a cannabis retailer that otherwise meets the conditions for 19
license forfeiture established pursuant to this subsection (3)(c) may 20
be subject to forfeiture within the first nine calendar months of 21
July 23, 2017.22
(v))) The board may not require license forfeiture if the 23
licensee has been incapable of opening a fully operational retail 24
cannabis business due to actions by the city, town, or county with 25
jurisdiction over the licensee that include any of the following:26
(A) The adoption of a ban or moratorium that prohibits the 27
opening of a retail cannabis business; or 28
(B) The adoption of an ordinance or regulation related to zoning, 29
business licensing, land use, or other regulatory measure that has 30
the effect of preventing a licensee from receiving an occupancy 31
permit from the jurisdiction or which otherwise prevents a licensed 32
cannabis retailer from becoming operational. 33
(d) The board may issue cannabis retailer licenses pursuant to 34
this chapter and RCW 69.50.335. 35
Sec. 805. RCW 69.50.326 and 2023 c 365 s 3 are each amended to 36
read as follows: 37
(1) Licensed cannabis producers and licensed cannabis processors 38
may use a CBD product as an additive for the purpose of enhancing the 39
p. 42 HB 2616
cannabidiol concentration of any product authorized for production, 1
processing, and sale under this chapter. Except as otherwise provided 2
in subsection (2) of this section, such CBD product additives must be 3
lawfully produced by, or purchased from, a producer or processor 4
licensed under this chapter. 5
(2) Subject to the requirements set forth in (a) through (c) of 6
this subsection, and for the purpose of enhancing the cannabidiol 7
concentration of any product authorized for production, processing, 8
or sale under this chapter, licensed cannabis producers and licensed 9
cannabis processors may use a CBD product obtained from a source not 10
licensed under this chapter, provided the CBD product:11
(a) Is not cannabis, or a cannabis product, as defined in this 12
chapter; 13
(b) Is not a synthetic cannabinoid; and 14
(c) Has been tested for contaminants and toxins by a testing 15
laboratory accredited under this chapter and in accordance with 16
testing standards established under this chapter and the applicable 17
administrative rules. 18
(3) Subject to the requirements of this subsection (3), the 19
((board)) director may enact rules necessary to implement the 20
requirements of this section. Such rule making is limited to 21
regulations pertaining to laboratory testing and product safety 22
standards for those cannabidiol products used by licensed producers 23
and processors in the manufacture of cannabis products marketed by 24
licensed retailers under this chapter. The purpose of such rule 25
making must be to ensure the safety and purity of cannabidiol 26
products used by cannabis producers and processors licensed under 27
this chapter and incorporated into products sold by licensed 28
recreational cannabis retailers. This rule-making authority does not 29
include the authority to enact rules regarding either the production 30
or processing practices of the industrial hemp industry or any 31
cannabidiol products that are sold or marketed outside of the 32
regulatory framework established under this chapter.33
Sec. 806. RCW 69.50.331 and 2023 c 220 s 2 are each amended to 34
read as follows: 35
(1)(a) For the purpose of considering any application , or 36
renewal, for a license , a comprehensive, fair, and impartial 37
evaluation of the applications timely received must be conducted by:38
p. 43 HB 2616
(i) The director for any application for a license, or renewal of 1
a license, to produce, process, research, transport, or deliver 2
cannabis, useable cannabis, cannabis concentrates, or cannabis-3
infused products subject to the regulations established under RCW 4
69.50.385, or sell cannabis, or for the renewal of a license to 5
produce, process, or research((, transport, or deliver cannabis, )) 6
useable cannabis, cannabis concentrates, or cannabis-infused products 7
((subject to the regulations established under RCW 69.50.385, or sell 8
cannabis, the board must conduct a comprehensive, fair, and impartial 9
evaluation of the applications timely received)); and10
(ii) The board for any application for a license, or renewal of a 11
license, to transport, deliver, or sell cannabis subject to the rules 12
adopted under RCW 69.50.385. 13
(((a))) (b) The board and the director may cause an inspection of 14
the premises to be made, and may inquire into all matters in 15
connection with the construction and operation of the premises. For 16
the purpose of reviewing any application for a license and for 17
considering the denial, suspension, revocation, cancellation, or 18
renewal or denial thereof, of any license, the board and the director 19
may consider any prior criminal arrests or convictions of the 20
applicant, any public safety administrative violation history record 21
with the board or the department of agriculture , and a criminal 22
history record information check. The board and the director may 23
submit the criminal history record information check to the 24
Washington state patrol and to the identification division of the 25
federal bureau of investigation in order that these agencies may 26
search their records for prior arrests and convictions of the 27
individual or individuals who filled out the forms. The board and the 28
director must require fingerprinting of any applicant whose criminal 29
history record information check is submitted to the federal bureau 30
of investigation. The provisions of RCW 9.95.240 and of chapter 9.96A 31
RCW do not apply to these cases. Subject to the provisions of this 32
section, the board and the director may, in ((its)) either's 33
discretion, grant or deny the renewal or license applied for. Denial 34
may be based on, without limitation, the existence of chronic illegal 35
activity documented in objections submitted pursuant to subsections 36
(7)(c) and (10) of this section. Authority to approve an uncontested 37
or unopposed license may be granted by the board or the director to 38
any staff member the board or the director designates in writing. 39
Conditions for granting this authority must be adopted by rule.40
p. 44 HB 2616
(((b))) (c) No license of any kind may be issued to:1
(i) A person under the age of 21 years; 2
(ii) A person doing business as a sole proprietor who has not 3
lawfully resided in the state for at least six months prior to 4
applying to receive a license; 5
(iii) A partnership, employee cooperative, association, nonprofit 6
corporation, or corporation unless formed under the laws of this 7
state, and unless all of the members thereof are qualified to obtain 8
a license as provided in this section; or 9
(iv) A person whose place of business is conducted by a manager 10
or agent, unless the manager or agent possesses the same 11
qualifications required of the licensee. 12
(2)(a) ((The board may, in its discretion, subject )) Subject to 13
RCW 43.05.160, 69.50.563, 69.50.562, 69.50.334, and 69.50.342(((3) 14
suspend or cancel any license; and all protections of the licensee 15
from criminal or civil sanctions under state law )) (4), any license 16
and all protections of the licensee from criminal or civil sanctions 17
under state law may be suspended or canceled by:18
(i) The director for producing, processing, or researching((, or 19
selling)) cannabis, cannabis concentrates, useable cannabis, or 20
cannabis-infused products thereunder ((must be suspended or 21
terminated, as the case may be)); and22
(ii) The board for selling cannabis, cannabis concentrates, 23
useable cannabis, or cannabis-infused products thereunder.24
(b) The board and the director must immediately suspend the 25
license of a person who has been certified pursuant to RCW 74.20A.320 26
by the department of social and health services as a person who is 27
not in compliance with a support order. If the person has continued 28
to meet all other requirements for reinstatement during the 29
suspension, reissuance of the license is automatic upon the board's 30
or the director's receipt of a release issued by the department of 31
social and health services stating that the licensee is in compliance 32
with the order. 33
(c) The board or the director may request the appointment of 34
administrative law judges under chapter 34.12 RCW who shall have 35
power to administer oaths, issue subpoenas for the attendance of 36
witnesses and the production of papers, books, accounts, documents, 37
and testimony, examine witnesses, receive testimony in any inquiry, 38
investigation, hearing, or proceeding in any part of the state, and 39
consider mitigating and aggravating circumstances in any case and 40
p. 45 HB 2616
deviate from any prescribed penalty, under rules the board or the 1
director may adopt. 2
(d) Witnesses must be allowed fees and mileage each way to and 3
from any inquiry, investigation, hearing, or proceeding at the rate 4
authorized by RCW 34.05.446. Fees need not be paid in advance of 5
appearance of witnesses to testify or to produce books, records, or 6
other legal evidence. 7
(e) In case of disobedience of any person to comply with the 8
order of the board or the director or a subpoena issued by the board, 9
or any of its members, the director, or administrative law judges, or 10
on the refusal of a witness to testify to any matter regarding which 11
he or she may be lawfully interrogated, the judge of the superior 12
court of the county in which the person resides, on application of 13
any member of the board , the director, or administrative law judge, 14
compels obedience by contempt proceedings, as in the case of 15
disobedience of the requirements of a subpoena issued from said court 16
or a refusal to testify therein. 17
(3) Upon receipt of notice of the suspension or cancellation of a 18
license, the licensee must forthwith deliver up the license to the 19
board or the director. Where the license has been suspended only, the 20
board or the director must return the license to the licensee at the 21
expiration or termination of the period of suspension. The board or 22
the director must notify all other licensees in the county where the 23
subject licensee has its premises of the suspension or cancellation 24
of the license; and no other licensee or employee of another licensee 25
may allow or cause any cannabis, cannabis concentrates, useable 26
cannabis, or cannabis-infused products to be delivered to or for any 27
person at the premises of the subject licensee. 28
(4) Every license issued under this chapter is subject to all 29
conditions and restrictions imposed by this chapter or by rules 30
adopted by the board or the director to implement and enforce this 31
chapter. All conditions and restrictions imposed by the board or the 32
director in the issuance of an individual license must be listed on 33
the face of the individual license along with the trade name, 34
address, and expiration date. 35
(5) Every licensee must post and keep posted its license, or 36
licenses, in a conspicuous place on the premises. 37
(6) No licensee may employ any person under the age of 21 years.38
(7)(a) Before the board or the director issues a new or renewed 39
license to an applicant it must give notice of the application to the 40
p. 46 HB 2616
chief executive officer of the incorporated city or town, if the 1
application is for a license within an incorporated city or town, or 2
to the county legislative authority, if the application is for a 3
license outside the boundaries of incorporated cities or towns, or to 4
the tribal government if the application is for a license within 5
Indian country, or to the port authority if the application for a 6
license is located on property owned by a port authority.7
(b) The incorporated city or town through the official or 8
employee selected by it, the county legislative authority or the 9
official or employee selected by it, the tribal government, or port 10
authority has the right to file with the board or the director, as 11
applicable, within ((twenty)) 20 days after the date of transmittal 12
of the notice for applications, or at least ((thirty)) 30 days prior 13
to the expiration date for renewals, written objections against the 14
applicant or against the premises for which the new or renewed 15
license is asked. The board , or the director, as applicable, may 16
extend the time period for submitting written objections upon request 17
from the authority notified by the board or the director.18
(c) The written objections must include a statement of all facts 19
upon which the objections are based, and in case written objections 20
are filed, the city or town or county legislative authority may 21
request, and the board or the director may in ((its)) their 22
respective discretion hold, a hearing subject to the applicable 23
provisions of Title 34 RCW. If the board or the director makes an 24
initial decision to deny a license or renewal based on the written 25
objections of an incorporated city or town or county legislative 26
authority, the applicant may request a hearing subject to the 27
applicable provisions of Title 34 RCW. If a hearing is held at the 28
request of the applicant, ((board)) representatives for the board or 29
the director, as applicable, must present and defend the ((board's)) 30
initial decision by the board or the director to deny a license or 31
renewal. 32
(d) Upon the granting of a license under this title the board or 33
the director must send written notification to the chief executive 34
officer of the incorporated city or town in which the license is 35
granted, or to the county legislative authority if the license is 36
granted outside the boundaries of incorporated cities or towns.37
(8)(a) Except as provided in (b) through (e) of this subsection, 38
the board or the director may not issue a license for any premises 39
within 1,000 feet of the perimeter of the grounds of any elementary 40
p. 47 HB 2616
or secondary school, playground, recreation center or facility, child 1
care center, public park, public transit center, or library, or any 2
game arcade admission to which is not restricted to persons aged 21 3
years or older. 4
(b) A city, county, or town may permit the licensing of premises 5
within 1,000 feet but not less than 100 feet of the facilities 6
described in (a) of this subsection, except elementary schools, 7
secondary schools, and playgrounds, by enacting an ordinance 8
authorizing such distance reduction, provided that such distance 9
reduction will not negatively impact the jurisdiction's civil 10
regulatory enforcement, criminal law enforcement interests, public 11
safety, or public health. 12
(c) A city, county, or town may permit the licensing of research 13
premises allowed under RCW 69.50.372 within 1,000 feet but not less 14
than 100 feet of the facilities described in (a) of this subsection 15
by enacting an ordinance authorizing such distance reduction, 16
provided that the ordinance will not negatively impact the 17
jurisdiction's civil regulatory enforcement, criminal law 18
enforcement, public safety, or public health. 19
(d) The board or the director may license premises located in 20
compliance with the distance requirements set in an ordinance adopted 21
under (b) or (c) of this subsection. Before issuing or renewing a 22
research license for premises within 1,000 feet but not less than 100 23
feet of an elementary school, secondary school, or playground in 24
compliance with an ordinance passed pursuant to (c) of this 25
subsection, the board or the director, as applicable, must ensure 26
that the facility: 27
(i) Meets a security standard exceeding that which applies to 28
cannabis producer, processor, or retailer licensees;29
(ii) Is inaccessible to the public and no part of the operation 30
of the facility is in view of the general public; and31
(iii) Bears no advertising or signage indicating that it is a 32
cannabis research facility. 33
(e) The board or the director, as applicable, must issue a 34
certificate of compliance if the premises met the requirements under 35
(a), (b), (c), or (d) of this subsection on the date of the 36
application. The certificate allows the licensee to operate the 37
business at the proposed location notwithstanding a later occurring, 38
otherwise disqualifying factor. 39
p. 48 HB 2616
(f) The board and the director may not issue a license for any 1
premises within Indian country, as defined in 18 U.S.C. Sec. 1151, 2
including any fee patent lands within the exterior boundaries of a 3
reservation, without the consent of the federally recognized tribe 4
associated with the reservation or Indian country. 5
(9) A city, town, or county may adopt an ordinance prohibiting a 6
cannabis producer or cannabis processor from operating or locating a 7
business within areas zoned primarily for residential use or rural 8
use with a minimum lot size of five acres or smaller.9
(10) In determining whether to grant or deny a license or renewal 10
of any license, the board or the director, as applicable, must give 11
substantial weight to objections from an incorporated city or town or 12
county legislative authority based upon chronic illegal activity 13
associated with the applicant's operations of the premises proposed 14
to be licensed or the applicant's operation of any other licensed 15
premises, or the conduct of the applicant's patrons inside or outside 16
the licensed premises. "Chronic illegal activity" means (a) a 17
pervasive pattern of activity that threatens the public health, 18
safety, and welfare of the city, town, or county including, but not 19
limited to, open container violations, assaults, disturbances, 20
disorderly conduct, or other criminal law violations, or as 21
documented in crime statistics, police reports, emergency medical 22
response data, calls for service, field data, or similar records of a 23
law enforcement agency for the city, town, county, or any other 24
municipal corporation or any state agency; or (b) an unreasonably 25
high number of citations for violations of RCW 46.61.502 associated 26
with the applicant's or licensee's operation of any licensed premises 27
as indicated by the reported statements given to law enforcement upon 28
arrest. 29
(11) The board may not issue a cannabis retail license for any 30
premises not currently licensed if: 31
(a) The board receives a written objection from the legislative 32
authority of an incorporated city or town, or county legislative 33
authority, relating to the physical location of the proposed 34
premises; 35
(b) The objection to the location from the incorporated city or 36
town, or county legislative authority, is received by the board 37
within 20 days of the board notifying the incorporated city or town, 38
or county legislative authority, of the proposed cannabis retail 39
location; and 40
p. 49 HB 2616
(c) The objection to the issuance of a cannabis retail license at 1
the specified location is based on a preexisting local ordinance 2
limiting outlet density in a specific geographic area. For purposes 3
of this subsection (11), a preexisting local ordinance is an 4
ordinance enacted and in effect before the date the applicant submits 5
an application for a cannabis retail license to the board identifying 6
the premises proposed to be licensed. No objection related to the 7
physical location of a proposed premises may be made by a local 8
government under this subsection (11) based on a local ordinance 9
enacted after the date the applicant submits an application for a 10
cannabis retail license to the board identifying the premises 11
proposed to be licensed. 12
(12) ((After January 1, 2024, all )) All cannabis licensees are 13
encouraged but are not required to submit a social equity plan to the 14
board or the director, as applicable . Upon confirmation by the board 15
or director that a cannabis licensee who is not a social equity 16
applicant, and who does not hold a social equity license issued under 17
RCW 69.50.335, has submitted a social equity plan, the board or 18
director must within 30 days reimburse such a licensee an amount 19
equal to the cost of the licensee's annual cannabis license renewal 20
fee. The license renewal fee reimbursement authorized under this 21
subsection is subject to the following limitations:22
(a) The board or the director may provide reimbursement one time 23
only to any licensed entity; and 24
(b) Any licensed entity holding more than one cannabis license is 25
eligible for reimbursement of the license renewal fee on only one 26
license. 27
Sec. 807. RCW 69.50.334 and 2022 c 16 s 59 are each amended to 28
read as follows: 29
(1) The following must be an adjudicative proceeding and subject 30
to the applicable provisions of chapter 34.05 RCW:31
(a) Any action, order, or decision of the ((board)) director as 32
to any denial of an application for the reissuance of a license to 33
produce((,)) or process((, or sell )) cannabis, or as to any 34
revocation, suspension, or modification of any license to 35
produce((,)) or process((, or sell)) cannabis((, or));36
(b) Any action, order, or decision of the board as to any denial 37
of an application for the reissuance of a license to transport, 38
p. 50 HB 2616
deliver, or sell cannabis, or as to any revocation, suspension, or 1
modification of any license to sell cannabis; and 2
(c) Any action, order, or decision of the board or the director, 3
as applicable, as to the administrative review of a notice of unpaid 4
trust fund taxes under RCW 69.50.565((, must be an adjudicative 5
proceeding and subject to the applicable provisions of chapter 34.05 6
RCW)). 7
(2) An opportunity for a hearing may be provided to an applicant 8
for the reissuance of a license prior to the disposition of the 9
application, and if no opportunity for a prior hearing is provided 10
then an opportunity for a hearing to reconsider the application must 11
be provided the applicant. 12
(3) An opportunity for a hearing must be provided to a licensee 13
prior to a revocation or modification of any license and, except as 14
provided in subsection (6) of this section, prior to the suspension 15
of any license. 16
(4) An opportunity for a hearing must be provided to any person 17
issued a notice of unpaid trust fund taxes under RCW 69.50.565.18
(5) No hearing may be required under this section until demanded 19
by the applicant, licensee, or person issued a notice of unpaid trust 20
fund taxes under RCW 69.50.565. 21
(6) The board or the director, as applicable, may summarily 22
suspend a license for a period of up to ((one hundred eighty )) 180 23
days without a prior hearing if it finds that public health, safety, 24
or welfare imperatively require emergency action, and it incorporates 25
a finding to that effect in ((its)) the order. Proceedings for 26
revocation or other action must be promptly instituted and 27
determined. An administrative law judge may extend the summary 28
suspension period for up to one calendar year from the first day of 29
the initial summary suspension in the event the proceedings for 30
revocation or other action cannot be completed during the initial 31
((one hundred eighty-day )) 180-day period due to actions by the 32
licensee. The board's enforcement division shall complete a 33
preliminary staff investigation of the violation before requesting an 34
emergency suspension by the board. 35
Sec. 808. RCW 69.50.335 and 2023 c 220 s 3 are each amended to 36
read as follows: 37
(1)(a) Beginning December 1, 2020, and until July 1, 2032, 38
cannabis retailer licenses, cannabis processor licenses, and cannabis 39
p. 51 HB 2616
producer licenses that have been subject to forfeiture, revocation, 1
or cancellation by the board or the director, as applicable , or 2
cannabis retailer licenses that were not previously issued by the 3
board but could have been issued without exceeding the limit on the 4
statewide number of cannabis retailer licenses established before 5
January 1, 2020, by the board, may be issued or reissued to an 6
applicant who meets the cannabis retailer license, cannabis processor 7
license, or cannabis producer license requirements of this chapter.8
(b) In accordance with (a) of this subsection, the board or the 9
director, as applicable, may issue or reissue: 10
(i) Up to 100 cannabis processor licenses immediately; and11
(ii) Beginning January 1, 2025, up to 10 cannabis producer 12
licenses, which must be issued in conjunction with a cannabis 13
processor license. 14
(c) In addition to the cannabis retailer licenses and cannabis 15
producer licenses that may be issued under (a) and (b) of this 16
subsection, beginning January 1, 2023, and continuing every three 17
years until July 1, 2032, the board or the director, as applicable, 18
may, with the approval of the legislature through the passage of a 19
bill, increase the number of cannabis retailer licenses and cannabis 20
producer licenses for the social equity program based on:21
(i) The most recent census data available as of January 1, 2023; 22
and 23
(ii) The annual population estimates published by the office of 24
financial management. 25
(d) In addition to the cannabis retailer licenses that may be 26
issued under (a) of this subsection, beginning January 1, 2024, and 27
until July 1, 2032, the board may issue up to 52 cannabis retailer 28
licenses for the social equity program. 29
(e)(i) At the time of licensure, all licenses issued under the 30
social equity program under this section may be located in any city, 31
town, or county in the state that allows cannabis retail, cannabis 32
production, or cannabis processing business activities, as 33
applicable, at the proposed location, regardless of:34
(A) Whether a cannabis retailer license, cannabis producer 35
license, or cannabis processor license was originally allocated to or 36
issued in another city, town, or county; and 37
(B) The maximum number of retail cannabis licenses established by 38
the board for each county under RCW 69.50.345. 39
p. 52 HB 2616
(ii) The board or the director, as applicable, must adopt rules 1
establishing a threshold of the number of licenses created by this 2
section that can be located in each county. 3
(f) After a social equity license has been issued under this 4
section for a specific location, the location of the licensed 5
business may not be moved to a city, town, or county different from 6
the city, town, or county for which it was initially licensed.7
(2)(a) In order to be considered for a cannabis retailer license, 8
cannabis processor license, or cannabis producer license under 9
subsection (1) of this section, an applicant must be a social equity 10
applicant and submit required cannabis license materials to the board 11
or the director, as applicable . If the application proposes ownership 12
by more than one person, then at least 51 percent of the proposed 13
ownership structure must reflect the qualifications of a social 14
equity applicant. 15
(b) Persons holding an existing cannabis retailer license or 16
title certificate for a cannabis retailer business in a local 17
jurisdiction subject to a ban or moratorium on cannabis retail 18
businesses may apply for a license under this section.19
(3)(a) In determining the priority for issuance of a license 20
among applicants, the board or the director, as applicable, must 21
select a third-party contractor to identify and score social equity 22
applicants, using a scoring rubric developed by the board or the 23
director, as applicable . The board or the director, as applicable, 24
must rely on the score provided by the third-party contractor in 25
issuing licenses. 26
(b) The board or the director, as applicable, may deny any 27
application submitted under this subsection if: 28
(i) The board or the director, as applicable, determines that, 29
upon the advice of the third-party contractor, the application does 30
not meet the social equity licensing requirements of this chapter; or31
(ii) The board or the director, as applicable, determines the 32
application does not otherwise meet licensing requirements.33
(4) The board and the director must adopt rules to implement this 34
section. Prior to adopting any rule implementing this section, the 35
board and the director must consider advice on the social equity 36
program from individuals the program is intended to benefit. Rules 37
may also require that licenses awarded under this section only be 38
transferred to or assumed by individuals or groups of individuals who 39
comply with the requirements for initial licensure as a social equity 40
p. 53 HB 2616
applicant for a period of at least five years from the date of 1
initial licensure. 2
(5) The annual fee for issuance, reissuance, or renewal for any 3
license under this section must be waived through July 1, 2032.4
(6) The definitions in this subsection apply throughout this 5
section unless the context clearly requires otherwise.6
(a) "Disproportionately impacted area" means a census tract or 7
comparable geographic area within Washington state where community 8
members were more likely to be impacted by the war on drugs. These 9
areas must be determined in rule by the board or the director, as 10
applicable, in consultation with the office of equity, using a 11
standardized statistical equation to identify areas with demographic 12
indicators consistent with populations most impacted by the war on 13
drugs. These areas must be assessed to account for demographic 14
changes in the composition of the population over time. 15
Disproportionately impacted areas must include census tracts or 16
comparable geographic areas in the top 15th percentile in at least 17
two of the following demographic indicators of populations most 18
impacted by the war on drugs: 19
(i) The area has a high rate of people living under the federal 20
poverty level; 21
(ii) The area has a high rate of people who did not graduate from 22
high school; 23
(iii) The area has a high rate of unemployment; or24
(iv) The area has a high rate of people receiving public 25
assistance. 26
(b) "Social equity applicant" means an applicant who has at least 27
51 percent ownership and control by one or more individuals who meet 28
at least two of the following qualifications: 29
(i) Lived in a disproportionately impacted area in Washington 30
state for a minimum of five years between 1980 and 2010;31
(ii) Has been arrested or convicted of a cannabis offense or has 32
a family member who has been arrested or convicted of a cannabis 33
offense; 34
(iii) Had a household income in the year prior to submitting an 35
application under this section that was less than the median 36
household income within the state of Washington as calculated by the 37
United States census bureau; or 38
p. 54 HB 2616
(iv) Is both a socially and economically disadvantaged individual 1
as defined by the office of minority and women's business enterprises 2
under chapter 39.19 RCW. 3
(c) "Social equity goals" means: 4
(i) Increasing the number of cannabis retailer, producer, and 5
processor licenses held by social equity applicants from 6
disproportionately impacted areas; and 7
(ii) Reducing accumulated harm suffered by individuals, families, 8
and local areas subject to severe impacts from the historical 9
application and enforcement of cannabis prohibition laws.10
(7) Except for the process detailed in subsection (1) of this 11
section, the process for creating new cannabis retail licenses under 12
this chapter remains unaltered. 13
Sec. 809. RCW 69.50.339 and 2022 c 16 s 62 are each amended to 14
read as follows: 15
(1) If the board or the director, as applicable, approves, a 16
license to produce, process, or sell cannabis may be transferred, 17
without charge, to the surviving spouse or domestic partner of a 18
deceased licensee if the license was issued in the names of one or 19
both of the parties. For the purpose of considering the 20
qualifications of the surviving party to receive a cannabis 21
producer's, cannabis processor's, or cannabis retailer's license, the 22
board or the director, as applicable, may require a criminal history 23
record information check. The board or the director, as applicable, 24
may submit the criminal history record information check to the 25
Washington state patrol and to the identification division of the 26
federal bureau of investigation in order that these agencies may 27
search their records for prior arrests and convictions of the 28
individual or individuals who filled out the forms. The board or the 29
director, as applicable, shall require fingerprinting of any 30
applicant whose criminal history record information check is 31
submitted to the federal bureau of investigation. 32
(2) The proposed sale of more than ((ten)) 10 percent of the 33
outstanding or issued stock of a corporation licensed under chapter 34
3, Laws of 2013, or any proposed change in the officers of such a 35
corporation, must be reported to the board or the director, as 36
applicable, and ((board)) approval must be obtained before the 37
changes are made. A fee of ((seventy-five dollars )) $75 will be 38
p. 55 HB 2616
charged for the processing of the change of stock ownership or 1
corporate officers. 2
Sec. 810. RCW 69.50.342 and 2022 c 16 s 63 are each amended to 3
read as follows: 4
(1) For the purpose of carrying into effect the provisions of 5
chapter 3, Laws of 2013 according to their true intent or of 6
supplying any deficiency therein, the board may adopt rules not 7
inconsistent with the spirit of chapter 3, Laws of 2013 as are deemed 8
necessary or advisable. Without limiting the generality of the 9
preceding sentence, the board is empowered to adopt rules regarding 10
the following: 11
(a) The equipment and management of retail outlets ((and premises 12
where cannabis is produced or processed, )) and inspection of the 13
retail outlets ((and premises where cannabis is produced or 14
processed)); 15
(b) The books and records to be created and maintained by retail 16
licensees, the reports to be made thereon to the board, and 17
inspection of the books and records; 18
(c) ((Methods of producing, processing, and )) In coordination 19
with the director, methods of packaging cannabis, useable cannabis, 20
cannabis concentrates, and cannabis-infused products; conditions of 21
sanitation; safe handling requirements; ((approved pesticides and 22
pesticide testing requirements; )) and standards of ingredients, 23
quality, and identity of cannabis, useable cannabis, cannabis 24
concentrates, and cannabis-infused products ((produced, processed, 25
packaged, or)) sold by licensees; 26
(d) Security requirements for retail outlets ((and premises where 27
cannabis is produced or processed, )) and safety protocols for such 28
licensees and their employees; 29
(e) Screening, hiring, training, and supervising employees of 30
retail licensees; 31
(f) Retail outlet locations and hours of operation;32
(g) Labeling requirements and restrictions on advertisement of 33
cannabis, useable cannabis, cannabis concentrates, cannabis health 34
and beauty aids, and cannabis-infused products for sale in retail 35
outlets; 36
(h) Forms to be used for purposes of this chapter and chapter 37
69.51A RCW or the rules adopted to implement and enforce these 38
chapters, the terms and conditions to be contained in licenses issued 39
p. 56 HB 2616
under this chapter and chapter 69.51A RCW, and the qualifications for 1
receiving a license issued under this chapter and chapter 69.51A RCW, 2
including a criminal history record information check. The board may 3
submit any criminal history record information check to the 4
Washington state patrol and to the identification division of the 5
federal bureau of investigation in order that these agencies may 6
search their records for prior arrests and convictions of the 7
individual or individuals who filled out the forms. The board must 8
require fingerprinting of any applicant whose criminal history record 9
information check is submitted to the federal bureau of 10
investigation; 11
(i) Application, reinstatement, and renewal fees for licenses 12
issued under this chapter and chapter 69.51A RCW, and fees for 13
anything done or permitted to be done under the rules adopted to 14
implement and enforce this chapter and chapter 69.51A RCW;15
(j) The manner of giving and serving notices required by this 16
chapter and chapter 69.51A RCW or rules adopted to implement or 17
enforce these chapters; 18
(k) Times and periods when, and the manner, methods, and means by 19
which, licensees transport and deliver cannabis, cannabis 20
concentrates, useable cannabis, and cannabis-infused products within 21
the state; 22
(l) Identification, seizure, confiscation, destruction, or 23
donation to law enforcement for training purposes of all cannabis, 24
cannabis concentrates, useable cannabis, and cannabis-infused 25
products ((produced, processed, )) sold((,)) or offered for sale 26
within this state which do not conform in all respects to the 27
standards prescribed by this chapter or chapter 69.51A RCW or the 28
rules adopted to implement and enforce these chapters; and29
(m) The prohibition of any type of device used in conjunction 30
with a cannabis vapor product and the prohibition of the use of any 31
type of additive, solvent, ingredient, or compound in the production 32
and processing of cannabis products, including cannabis vapor 33
products, when the board determines, following consultation with the 34
department of health or any other authority the board deems 35
appropriate, that the device, additive, solvent, ingredient, or 36
compound may pose a risk to public health or youth access((; and37
(n) Requirements for processors to submit under oath to the 38
department of health a complete list of all constituent substances 39
and the amount and sources thereof in each cannabis vapor product, 40
p. 57 HB 2616
including all additives, thickening agents, preservatives, compounds, 1
and any other substance used in the production and processing of each 2
cannabis vapor product)). 3
(2) For the purpose of carrying into effect the provisions of 4
chapter 3, Laws of 2013 according to their true intent or of 5
supplying any deficiency therein, the director may adopt rules not 6
inconsistent with the spirit of chapter 3, Laws of 2013 as are deemed 7
necessary or advisable. The director may adopt rules regarding the 8
following:9
(a) The equipment and management of the premises where cannabis 10
is produced or processed and inspection of the premises where 11
cannabis is produced or processed;12
(b) The books and records to be created and maintained by 13
producer licensees and processor licensees, the reports to be made 14
thereon to the director, and inspection of the books and records;15
(c) Methods of producing, processing, and packaging cannabis, 16
useable cannabis, cannabis concentrates, and cannabis-infused 17
products; conditions of sanitation; safe handling requirements; 18
approved pesticides and pesticide testing requirements; and standards 19
of ingredients, quality, and identity of cannabis, useable cannabis, 20
cannabis concentrates, and cannabis-infused products produced, 21
processed, or packaged by licensees;22
(d) Screening, hiring, training, and supervising employees of 23
producer licensees and processor licensees;24
(e) Forms to be used for purposes of this chapter and chapter 25
69.51A RCW or the rules adopted to implement and enforce these 26
chapters, the terms and conditions to be contained in producer 27
licenses and processor licenses issued under this chapter, including 28
a criminal history record information check. The director may submit 29
any criminal history record information check to the Washington state 30
patrol and to the identification division of the federal bureau of 31
investigation in order that these agencies may search their records 32
for prior arrests and convictions of the individual or individuals 33
who filled out the forms. The director must require fingerprinting of 34
any applicant whose criminal history record information check is 35
submitted to the federal bureau of investigation;36
(f) Application, reinstatement, and renewal fees for producer 37
licenses and processor licenses issued under this chapter and fees 38
for anything done or permitted to be done under the rules adopted to 39
implement and enforce this chapter;40
p. 58 HB 2616
(g) The manner of giving and serving notices required by this 1
chapter or rules adopted to implement or enforce this chapter;2
(h) Identification, seizure, confiscation, destruction, or 3
donation to law enforcement for training purposes of all cannabis, 4
cannabis concentrates, useable cannabis, and cannabis-infused 5
products produced or processed within this state which do not conform 6
in all respects to the standards prescribed by this chapter or the 7
rules adopted to implement and enforce this chapter; and8
(i) Requirements for processors to submit under oath to the 9
department a complete list of all constituent substances and the 10
amount and sources thereof in each cannabis vapor product, including 11
all additives, thickening agents, preservatives, compounds, and any 12
other substance used in the production and processing of each 13
cannabis vapor product.14
(3) Rules adopted on retail outlets holding medical cannabis 15
endorsements must be adopted in coordination and consultation with 16
the department. 17
(((3))) (4) The board and the director, as applicable, must adopt 18
rules to perfect and expand existing programs for compliance 19
education for licensed cannabis businesses and their employees. The 20
rules must include a voluntary compliance program created in 21
consultation with licensed cannabis businesses and their employees. 22
The voluntary compliance program must include recommendations on 23
abating violations of this chapter and rules adopted under this 24
chapter. 25
Sec. 811. RCW 69.50.345 and 2023 c 220 s 5 are each amended to 26
read as follows: 27
The board and the director , subject to the provisions of this 28
chapter, must adopt rules that establish the procedures and criteria 29
necessary to implement the following: 30
(1) Licensing of cannabis producers ((,)) and cannabis processors 31
by the director , and cannabis retailers by the board , including 32
prescribing forms and establishing application, reinstatement, and 33
renewal fees. 34
(a) Application forms for cannabis producers must request the 35
applicant to state whether the applicant intends to produce cannabis 36
for sale by cannabis retailers holding medical cannabis endorsements 37
and the amount of or percentage of canopy the applicant intends to 38
commit to growing plants determined by the department under RCW 39
p. 59 HB 2616
69.50.375 to be of a THC concentration, CBD concentration, or THC to 1
CBD ratio appropriate for cannabis concentrates, useable cannabis, or 2
cannabis-infused products sold to qualifying patients.3
(b) The ((board)) director must reconsider and increase limits on 4
the amount of square feet permitted to be in production on July 24, 5
2015, and increase the percentage of production space for those 6
cannabis producers who intend to grow plants for cannabis retailers 7
holding medical cannabis endorsements if the cannabis producer 8
designates the increased production space to plants determined by the 9
department under RCW 69.50.375 to be of a THC concentration, CBD 10
concentration, or THC to CBD ratio appropriate for cannabis 11
concentrates, useable cannabis, or cannabis-infused products to be 12
sold to qualifying patients. If current cannabis producers do not use 13
all the increased production space, the ((board)) director may reopen 14
the license period for new cannabis (([producer])) producer's license 15
applicants but only to those cannabis producers who agree to grow 16
plants for cannabis retailers holding medical cannabis endorsements. 17
Priority in licensing must be given to cannabis (([producer])) 18
producer's license applicants who have an application pending on July 19
24, 2015, but who are not yet licensed and then to new cannabis 20
(([producer])) producer's license applicants. After January 1, 2017, 21
any reconsideration of the limits on the amount of square feet 22
permitted to be in production to meet the medical needs of qualifying 23
patients must consider information contained in the medical cannabis 24
authorization database established in RCW 69.51A.230;25
(2)(a) Except as provided in RCW 69.50.335, ((determining)) the 26
board, in consultation with the office of financial management, 27
determining the maximum number of retail outlets that may be licensed 28
in each county, taking into consideration: 29
(i) Population distribution; 30
(ii) Security and safety issues; 31
(iii) The provision of adequate access to licensed sources of 32
cannabis concentrates, useable cannabis, and cannabis-infused 33
products to discourage purchases from the illegal market; and34
(iv) The number of retail outlets holding medical cannabis 35
endorsements necessary to meet the medical needs of qualifying 36
patients. The board must reconsider and increase the maximum number 37
of retail outlets it established before July 24, 2015, and allow for 38
a new license application period and a greater number of retail 39
outlets to be permitted in order to accommodate the medical needs of 40
p. 60 HB 2616
qualifying patients and designated providers. After January 1, 2017, 1
any reconsideration of the maximum number of retail outlets needed to 2
meet the medical needs of qualifying patients must consider 3
information contained in the medical cannabis authorization database 4
established in RCW 69.51A.230. 5
(b)(i) In making the determination under (a) of this subsection, 6
the board must consider written input from an incorporated city or 7
town, or county legislative authority when evaluating concerns 8
related to outlet density. 9
(ii) An incorporated city or town, or county legislative 10
authority, may enact an ordinance prescribing outlet density 11
limitations. An ordinance may not affect licenses issued before the 12
effective date of the ordinance prescribing outlet density 13
limitations. 14
(iii) The board may adopt rules to identify how local 15
jurisdiction input will be evaluated; 16
(3) ((Determining)) The director determining the maximum quantity 17
of cannabis a cannabis producer may have on the premises of a 18
licensed location at any time without violating Washington state law;19
(4) ((Determining)) The director determining the maximum 20
quantities of cannabis, cannabis concentrates, useable cannabis, and 21
cannabis-infused products a cannabis processor may have on the 22
premises of a licensed location at any time without violating 23
Washington state law; 24
(5) ((Determining)) The board determining the maximum quantities 25
of cannabis concentrates, useable cannabis, and cannabis-infused 26
products a cannabis retailer may have on the premises of a retail 27
outlet at any time without violating Washington state law;28
(6) In making the determinations required by this section, the 29
board or the director, as applicable, shall take into consideration:30
(a) Security and safety issues; 31
(b) The provision of adequate access to licensed sources of 32
cannabis, cannabis concentrates, useable cannabis, and cannabis-33
infused products to discourage purchases from the illegal market; and34
(c) Economies of scale, and their impact on licensees' ability to 35
both comply with regulatory requirements and undercut illegal market 36
prices; 37
(7) Determining the nature, form, and capacity of all containers 38
to be used by licensees to contain cannabis, cannabis concentrates, 39
p. 61 HB 2616
useable cannabis, and cannabis-infused products, and their labeling 1
requirements; 2
(8) In consultation with the department of agriculture and the 3
department, establishing classes of cannabis, cannabis concentrates, 4
useable cannabis, and cannabis-infused products according to grade, 5
condition, cannabinoid profile, THC concentration, CBD concentration, 6
or other qualitative measurements deemed appropriate by the board;7
(9) ((Establishing)) The board establishing reasonable time, 8
place, and manner restrictions and requirements regarding advertising 9
of cannabis, cannabis concentrates, useable cannabis, and cannabis-10
infused products that are not inconsistent with the provisions of 11
this chapter, taking into consideration: 12
(a) Federal laws relating to cannabis that are applicable within 13
Washington state; 14
(b) Minimizing exposure of people under 21 years of age to the 15
advertising; 16
(c) The inclusion of medically and scientifically accurate 17
information about the health and safety risks posed by cannabis use 18
in the advertising; and 19
(d) Ensuring that retail outlets with medical cannabis 20
endorsements may advertise themselves as medical retail outlets;21
(10) ((Specifying)) The board specifying and regulating the time 22
and periods when, and the manner, methods, and means by which, 23
licensees shall transport and deliver cannabis, cannabis 24
concentrates, useable cannabis, and cannabis-infused products within 25
the state; 26
(11) In consultation with the department ((and the department of 27
agriculture)), the board and the director, as applicable, prescribing 28
methods of producing, processing, and packaging cannabis, cannabis 29
concentrates, useable cannabis, and cannabis-infused products; 30
conditions of sanitation; and standards of ingredients, quality, and 31
identity of cannabis, cannabis concentrates, useable cannabis, and 32
cannabis-infused products produced, processed, packaged, or sold by 33
licensees; 34
(12) Specifying procedures for identifying, seizing, 35
confiscating, destroying, and donating to law enforcement for 36
training purposes all cannabis, cannabis concentrates, useable 37
cannabis, and cannabis-infused products produced, processed, 38
packaged, labeled, or offered for sale in this state that do not 39
p. 62 HB 2616
conform in all respects to the standards prescribed by this chapter 1
or the rules of the board or the director. 2
Sec. 812. RCW 69.50.348 and 2024 c 69 s 2 are each amended to 3
read as follows: 4
(1) On a schedule determined by the ((board)) director, every 5
licensed cannabis producer and processor must submit representative 6
samples of cannabis, useable cannabis, or cannabis-infused products 7
produced or processed by the licensee to an independent, third-party 8
testing laboratory meeting the accreditation requirements established 9
by the state department of agriculture. The purpose of testing 10
representative samples is to certify compliance with quality 11
assurance and product standards adopted by the board under RCW 12
69.50.342 or the department of health under RCW 69.50.375. In 13
conducting tests of cannabis product samples, testing laboratories 14
must adhere to laboratory quality standards adopted by the state 15
department of agriculture under chapter 15.150 RCW. Any sample 16
remaining after testing shall be destroyed by the laboratory or 17
returned to the licensee submitting the sample. 18
(2) Independent, third-party testing laboratories performing 19
cannabis product testing under subsection (1) of this section must 20
obtain and maintain accreditation. The board must accept the 21
accreditation by the department of agriculture as the sole basis for 22
establishing the initial certification of the laboratory and any 23
subsequent renewals of certification as long as the laboratory has 24
not been found to have violated the requirements established by the 25
board.26
(3) Licensees must submit the results of inspection and testing 27
for quality assurance and product standards required under RCW 28
69.50.342 to the ((board)) director on a form developed by the 29
((board)) director. 30
(4) If a representative sample inspected and tested under this 31
section does not meet the applicable quality assurance and product 32
standards established by the ((board)) director then, except as 33
otherwise provided by the ((board)) department in rule, the entire 34
lot from which the sample was taken must be destroyed.35
(5) The department of agriculture may determine, assess, and 36
collect annual fees to support the direct and indirect costs of 37
implementing a state cannabis product testing laboratory 38
accreditation program and laboratory quality standards program, 39
p. 63 HB 2616
except for the initial program development costs. The department of 1
agriculture may establish a payment schedule requiring periodic 2
installments of the annual fee. The department of agriculture must 3
review and update its fee schedule biennially. The costs of cannabis 4
product testing laboratory accreditation are those incurred by the 5
department of agriculture in administering and enforcing the 6
accreditation program. The costs may include, but are not limited to, 7
the costs incurred in undertaking the following accreditation 8
functions: 9
(a) Evaluating the protocols and procedures used by a laboratory;10
(b) Performing on-site audits; 11
(c) Evaluating participation and successful completion of 12
proficiency testing; 13
(d) Determining the capability of a laboratory to produce 14
accurate and reliable test results; and 15
(e) Such other accreditation activities as the department of 16
agriculture deems appropriate. 17
(6) The department of agriculture and the interagency 18
coordination team created in RCW 15.150.020 must act cooperatively to 19
ensure reduction of redundancies between the agencies and the 20
effective implementation and administration of this section.21
(7) All fees collected under this section must be deposited in 22
the dedicated cannabis account created in RCW 69.50.530.23
Sec. 813. RCW 69.50.351 and 2022 c 16 s 69 are each amended to 24
read as follows: 25
Except as provided by chapter 42.52 RCW, the director and no 26
member of the board , and no employee of the board or the director, 27
shall have any interest, directly or indirectly, in the producing, 28
processing, or sale of cannabis, useable cannabis, or cannabis-29
infused products, or derive any profit or remuneration from the sale 30
of cannabis, useable cannabis, or cannabis-infused products other 31
than the salary or wages payable to him or her in respect of his or 32
her office or position, and shall receive no gratuity from any person 33
in connection with the business. 34
Sec. 814. RCW 69.50.363 and 2022 c 16 s 73 are each amended to 35
read as follows: 36
The following acts, when performed by a validly licensed cannabis 37
processor or employee of a validly licensed cannabis processor in 38
p. 64 HB 2616
compliance with rules adopted by the board or the director, as 1
applicable, to implement and enforce chapter 3, Laws of 2013, do not 2
constitute criminal or civil offenses under Washington state law:3
(1) Purchase and receipt of cannabis that has been properly 4
packaged and labeled from a cannabis producer validly licensed under 5
chapter 3, Laws of 2013; 6
(2) Possession, processing, packaging, and labeling of quantities 7
of cannabis, useable cannabis, and cannabis-infused products that do 8
not exceed the maximum amounts established by the board under RCW 9
69.50.345(4); 10
(3) Delivery, distribution, and sale of useable cannabis or 11
cannabis-infused products to a cannabis retailer validly licensed 12
under chapter 3, Laws of 2013; and 13
(4) Delivery, distribution, and sale of useable cannabis, 14
cannabis concentrates, or cannabis-infused products to a federally 15
recognized Indian tribe as permitted under an agreement between the 16
state and the tribe entered into under RCW 43.06.490.17
Sec. 815. RCW 69.50.366 and 2022 c 16 s 74 are each amended to 18
read as follows: 19
The following acts, when performed by a validly licensed cannabis 20
producer or employee of a validly licensed cannabis producer in 21
compliance with rules adopted by the board or the director, as 22
applicable, to implement and enforce this chapter, do not constitute 23
criminal or civil offenses under Washington state law:24
(1) Production or possession of quantities of cannabis that do 25
not exceed the maximum amounts established by the board under RCW 26
69.50.345(3); 27
(2) Delivery, distribution, and sale of cannabis to a cannabis 28
processor or another cannabis producer validly licensed under this 29
chapter; 30
(3) Delivery, distribution, and sale of immature plants or clones 31
and cannabis seeds to a licensed cannabis researcher, and to receive 32
or purchase immature plants or clones and seeds from a licensed 33
cannabis researcher; and 34
(4) Delivery, distribution, and sale of cannabis or useable 35
cannabis to a federally recognized Indian tribe as permitted under an 36
agreement between the state and the tribe entered into under RCW 37
43.06.490. 38
p. 65 HB 2616
Sec. 816. RCW 69.50.372 and 2022 c 16 s 76 are each amended to 1
read as follows: 2
(1) A cannabis research license is established that permits a 3
licensee to produce, process, and possess cannabis for the following 4
limited research purposes: 5
(a) To test chemical potency and composition levels;6
(b) To conduct clinical investigations of cannabis-derived drug 7
products; 8
(c) To conduct research on the efficacy and safety of 9
administering cannabis as part of medical treatment; and10
(d) To conduct genomic or agricultural research.11
(2) As part of the application process for a cannabis research 12
license, an applicant must submit to the ((board's)) director's 13
designated scientific reviewer a description of the research that is 14
intended to be conducted. The ((board)) director must select a 15
scientific reviewer to review an applicant's research project and 16
determine that it meets the requirements of subsection (1) of this 17
section, as well as assess the following: 18
(a) Project quality, study design, value, or impact;19
(b) Whether applicants have the appropriate personnel, expertise, 20
facilities/infrastructure, funding, and human/animal/other federal 21
approvals in place to successfully conduct the project; and22
(c) Whether the amount of cannabis to be grown by the applicant 23
is consistent with the project's scope and goals. 24
If the scientific reviewer determines that the research project 25
does not meet the requirements of subsection (1) of this section, the 26
application must be denied. 27
(3) A cannabis research licensee may only sell cannabis grown or 28
within its operation to other cannabis research licensees. The 29
((board)) director may revoke a cannabis research license for 30
violations of this subsection. 31
(4) A cannabis research licensee may contract with the University 32
of Washington or Washington State University to perform research in 33
conjunction with the university. All research projects, not including 34
those projects conducted pursuant to a contract entered into under 35
RCW 28B.20.502(3), must be approved by the scientific reviewer and 36
meet the requirements of subsection (1) of this section.37
(5) In establishing a cannabis research license, the ((board)) 38
director may adopt rules on the following: 39
(a) Application requirements; 40
p. 66 HB 2616
(b) Cannabis research license renewal requirements, including 1
whether additional research projects may be added or considered;2
(c) Conditions for license revocation; 3
(d) Security measures to ensure cannabis is not diverted to 4
purposes other than research; 5
(e) Amount of plants, useable cannabis, cannabis concentrates, or 6
cannabis-infused products a licensee may have on its premises;7
(f) Licensee reporting requirements; 8
(g) Conditions under which cannabis grown by licensed cannabis 9
producers and other product types from licensed cannabis processors 10
may be donated to cannabis research licensees; and11
(h) Additional requirements deemed necessary by the ((board)) 12
director. 13
(6) The production, processing, possession, delivery, donation, 14
and sale of cannabis, including immature plants or clones and seeds, 15
in accordance with this section, RCW 69.50.366(3), and the rules 16
adopted to implement and enforce this section and RCW 69.50.366(3), 17
by a validly licensed cannabis researcher, shall not be a criminal or 18
civil offense under Washington state law. Every cannabis research 19
license must be issued in the name of the applicant, must specify the 20
location at which the cannabis researcher intends to operate, which 21
must be within the state of Washington, and the holder thereof may 22
not allow any other person to use the license. 23
(7) The application fee for a cannabis research license is ((two 24
hundred fifty dollars)) $250. The annual fee for issuance and renewal 25
of a cannabis research license is ((one thousand three hundred 26
dollars)) $1,300. The applicant must pay the cost of the review 27
process directly to the scientific reviewer as designated by the 28
((board)) director. 29
(8) The scientific reviewer shall review any reports made by 30
cannabis research licensees under ((board)) director rule and provide 31
the ((board)) director with its determination on whether the research 32
project continues to meet research qualifications under this section.33
(9) For the purposes of this section, "scientific reviewer" means 34
an organization that convenes or contracts with persons who have the 35
training and experience in research practice and research methodology 36
to determine whether a project meets the criteria for a cannabis 37
research license under this section and to review any reports 38
submitted by cannabis research licensees under ((board)) director 39
rule. "Scientific reviewers" include, but are not limited to, 40
p. 67 HB 2616
educational institutions, research institutions, peer review bodies, 1
or such other organizations that are focused on science or research 2
in its day-to-day activities. 3
Sec. 817. RCW 69.50.395 and 2022 c 16 s 83 are each amended to 4
read as follows: 5
(1) A licensed cannabis business may enter into an agreement with 6
any person, business, or other entity for: 7
(a) Any goods or services that are registered as a trademark 8
under federal law, under chapter 19.77 RCW, or under any other state 9
or international trademark law; 10
(b) Any unregistered trademark, trade name, or trade dress; or11
(c) Any trade secret, technology, or proprietary information used 12
to manufacture a cannabis product or used to provide a service 13
related to any cannabis business. 14
(2) Any agreements entered into by a licensed cannabis business, 15
as authorized under this section, must be disclosed to the board or 16
the director, as applicable, and may include: 17
(a) A royalty fee or flat rate calculated based on sales of each 18
product that includes the intellectual property or was manufactured 19
or sold using the licensed intellectual property or service, provided 20
that the royalty fee is no greater than an amount equivalent to 21
((ten)) 10 percent of the licensed cannabis business's gross sales 22
derived from the sale of such product; 23
(b) A flat rate or lump sum calculated based on time or 24
milestones; 25
(c) Terms giving either party exclusivity or qualified 26
exclusivity as it relates to use of the intellectual property;27
(d) Quality control standards as necessary to protect the 28
integrity of the intellectual property; 29
(e) Enforcement obligations to be undertaken by the licensed 30
cannabis business; 31
(f) Covenants to use the licensed intellectual property; and32
(g) Assignment of licensor improvements of the intellectual 33
property. 34
(3) A person, business, or entity that enters into an agreement 35
with a licensed cannabis business, where both parties to the 36
agreement are in compliance with the terms of this section, is exempt 37
from the requirement to qualify for a cannabis business license for 38
p. 68 HB 2616
purposes of the agreements authorized by subsection (1) of this 1
section. 2
(4) All agreements entered into by a licensed cannabis business, 3
as authorized by this section, are subject to the board's or 4
director's recordkeeping requirements as established by rule.5
Sec. 818. RCW 69.50.530 and 2023 c 470 s 1014 are each amended 6
to read as follows: 7
The dedicated cannabis account is created in the state treasury. 8
All moneys received by the board or the director, as applicable , or 9
any employee thereof, from cannabis-related activities must be 10
deposited in the account. Unless otherwise provided in chapter 4, 11
Laws of 2015 2nd sp. sess., all cannabis excise taxes collected from 12
sales of cannabis, useable cannabis, cannabis concentrates, and 13
cannabis-infused products under RCW 69.50.535, and the license fees, 14
penalties, and forfeitures derived under this chapter from cannabis 15
producer, cannabis processor, cannabis researcher, and cannabis 16
retailer licenses, must be deposited in the account. Moneys in the 17
account may only be spent after appropriation. 18
Sec. 819. RCW 69.50.540 and 2023 c 470 s 1015 are each amended 19
to read as follows: 20
(1) For the purposes of this subsection (1), the legislature must 21
appropriate the amounts provided in this subsection:22
(a) $12,500,000 annually to the board or the director for 23
administration of this chapter as appropriated and distributed in the 24
omnibus appropriations act; 25
(b) $11,000,000 annually to the department of health for the 26
following: 27
(i) Creation, implementation, operation, and management of a 28
cannabis, vapor product, and commercial tobacco education and public 29
health program that contains the following: 30
(A) A cannabis use public health hotline that provides referrals 31
to substance abuse treatment providers, uses evidence-based or 32
research-based public health approaches to minimizing the harms 33
associated with cannabis use, and does not solely advocate an 34
abstinence-only approach; 35
(B) Programs that support development and implementation of 36
coordinated intervention strategies for the prevention and reduction 37
of commercial tobacco, vapor product, and cannabis use by youth and 38
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cannabis cessation treatment services, including grant programs to 1
local health departments or other local community agencies;2
(C) Media-based education campaigns across television, internet, 3
radio, print, and out-of-home advertising, separately targeting youth 4
and adults, that provide medically and scientifically accurate 5
information about the health and safety risks posed by cannabis use; 6
and 7
(D) Outreach to priority populations regarding commercial 8
tobacco, vapor product, and cannabis use, prevention, and cessation; 9
and 10
(ii) The Washington poison control center; 11
(c)(i) $3,000,000 annually to the department of commerce to fund 12
cannabis social equity grants under RCW 43.330.540; and13
(ii) $200,000 annually to the department of commerce to fund 14
technical assistance through a roster of mentors under RCW 15
43.330.540; 16
(d) $200,000 annually, until June 30, 2032, to the health care 17
authority to contract with the Washington state institute for public 18
policy to conduct the cost-benefit evaluations and produce the 19
reports described in RCW 69.50.550; 20
(e) $25,000 annually to the University of Washington alcohol and 21
drug abuse institute for the creation, maintenance, and timely 22
updating of web-based public education materials providing medically 23
and scientifically accurate information about the health and safety 24
risks posed by cannabis use; 25
(f) $300,000 annually to the University of Washington and 26
$175,000 annually to the Washington State University for research on 27
the short-term and long-term effects of cannabis use to include, but 28
not be limited to, formal and informal methods for estimating and 29
measuring intoxication and impairments, and for the dissemination of 30
such research; 31
(g) $550,000 annually to the office of the superintendent of 32
public instruction to fund grants to building bridges programs under 33
chapter 28A.175 RCW; 34
(h) $2,423,000 for fiscal year 2022 and $2,423,000 for fiscal 35
year 2023 to the Washington state patrol for a drug enforcement task 36
force; 37
(i) $270,000 for fiscal year 2022 and $290,000 for fiscal year 38
2023 to the department of ecology for implementation of accreditation 39
of cannabis product testing laboratories; 40
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(j) $800,000 for each of fiscal years 2020 through 2023 to the 1
department of health for the administration of the cannabis 2
authorization database; and 3
(k) $621,000 for fiscal year 2022 and $635,000 for fiscal year 4
2023 to the department of agriculture for compliance-based laboratory 5
analysis of pesticides in cannabis. 6
(2) ((Subsections [Subsection])) Subsection (1)(a) through (g) of 7
this section must be adjusted annually based on the United States 8
bureau of labor statistics' consumer price index for the Seattle 9
area. 10
(3) After appropriation of the amounts identified in subsection 11
(1) of this section, the legislature must annually appropriate such 12
remaining amounts for the purposes listed in this subsection (3) as 13
follows: 14
(a) Fifty-two percent to the state basic health plan trust 15
account to be administered by the Washington basic health plan 16
administrator and used as provided under chapter 70.47 RCW;17
(b) Eleven percent to the health care authority to:18
(i) Design and administer the Washington state healthy youth 19
survey, analyze the collected data, and produce reports, in 20
collaboration with the office of the superintendent of public 21
instruction, department of health, department of commerce, family 22
policy council, ((and)) board, and director . The survey must be 23
conducted at least every two years and include questions regarding, 24
but not necessarily limited to, academic achievement, age at time of 25
substance use initiation, antisocial behavior of friends, attitudes 26
toward antisocial behavior, attitudes toward substance use, laws and 27
community norms regarding antisocial behavior, family conflict, 28
family management, parental attitudes toward substance use, peer 29
rewarding of antisocial behavior, perceived risk of substance use, 30
and rebelliousness. Funds disbursed under this subsection may be used 31
to expand administration of the healthy youth survey to student 32
populations attending institutions of higher education in Washington;33
(ii) Develop, implement, maintain, and evaluate programs and 34
practices aimed at the prevention or reduction of maladaptive 35
substance use, substance use disorder, substance abuse or substance 36
dependence, as these terms are defined in the diagnostic and 37
statistical manual of mental disorders, among middle school and high 38
school-age students, whether as an explicit goal of a given program 39
or practice or as a consistently corresponding effect of its 40
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implementation, mental health services for children and youth, and 1
services for pregnant and parenting women. In deciding which programs 2
and practices to fund under this subsection (3)(b)(ii), the director 3
of the health care authority must consult, at least annually, with 4
the University of Washington's social development research group and 5
the University of Washington's alcohol and drug abuse institute; and6
(iii) Contract with community health centers to provide primary 7
health and dental care services, migrant health services, and 8
maternity health care services as provided under RCW 41.05.220;9
(c)(i) One and one-half percent to counties, cities, and towns 10
where licensed cannabis retailers are physically located. Each 11
jurisdiction must receive a share of the revenue distribution under 12
this subsection (3)(c)(i) based on the proportional share of the 13
total revenues generated in the individual jurisdiction from the 14
taxes collected under RCW 69.50.535, from licensed cannabis retailers 15
physically located in each jurisdiction. For purposes of this 16
subsection (3)(c), 100 percent of the proportional amount attributed 17
to a retailer physically located in a city or town must be 18
distributed to the city or town; 19
(ii) Three and one-half percent to counties, cities, and towns 20
ratably on a per capita basis. Counties must receive 60 percent of 21
the distribution based on each county's total proportional 22
population. Funds may only be distributed to jurisdictions that do 23
not prohibit the siting of any state licensed cannabis producer, 24
processor, or retailer; 25
(iii) By September 15th of each year, the board must provide the 26
state treasurer the annual distribution amount made under this 27
subsection (3)(c), if any, for each county and city as determined in 28
(c)(i) and (ii) of this subsection; and 29
(iv) Distribution amounts allocated to each county, city, and 30
town in (c)(i) and (ii) of this subsection must be distributed in 31
four installments by the last day of each fiscal quarter; and32
(d) Thirty-two percent must be deposited in the state general 33
fund. 34
Sec. 820. RCW 69.50.564 and 2022 c 16 s 108 are each amended to 35
read as follows: 36
(1) This section applies to the board's issuance of 37
administrative violations to licensed cannabis producers, processors, 38
retailers, transporters, and researchers, when a settlement 39
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conference is held between a hearing officer or designee of the board 1
or the director, as applicable, and the cannabis licensee that 2
received a notice of an alleged administrative violation or 3
violations. 4
(2) If a settlement agreement is entered between a cannabis 5
licensee and a hearing officer or designee of the board or the 6
director, as applicable, at or after a settlement conference, the 7
terms of the settlement agreement must be given substantial weight by 8
the board or the director, as applicable. 9
(3) For the purposes of this section: 10
(a) "Settlement agreement" means the agreement or compromise 11
between a licensed cannabis producer, processor, retailer, 12
researcher, transporter, or researcher and the hearing officer or 13
designee of the board or the director, as applicable, with authority 14
to participate in the settlement conference, that:15
(i) Includes the terms of the agreement or compromise regarding 16
an alleged violation or violations by the licensee of this chapter, 17
chapter 69.51A RCW, or rules adopted under either chapter, and any 18
related penalty or licensing restriction; and 19
(ii) Is in writing and signed by the licensee and the hearing 20
officer or designee of the board or the director, as applicable.21
(b) "Settlement conference" means a meeting or discussion between 22
a licensed cannabis producer, processor, retailer, researcher, 23
transporter, researcher, or authorized representative of any of the 24
preceding licensees, and a hearing officer or designee of the board 25
or the director, as applicable , held for purposes such as discussing 26
the circumstances surrounding an alleged violation of law or rules by 27
the licensee, the recommended penalty, and any aggravating or 28
mitigating factors, and that is intended to resolve the alleged 29
violation before an administrative hearing or judicial proceeding is 30
initiated. 31
Sec. 821. RCW 69.50.565 and 2015 2nd sp.s. c 4 s 202 are each 32
amended to read as follows: 33
(1) Whenever the board or the director, as applicable, determines 34
that a limited liability business entity has collected trust fund 35
taxes and has failed to remit those taxes to the board or the 36
director, as applicable, and that business entity has been 37
terminated, dissolved, or abandoned, or is insolvent, the board or 38
the director, as applicable, may pursue collection of the entity's 39
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unpaid trust fund taxes, including penalties on those taxes, against 1
any or all of the responsible individuals. For purposes of this 2
subsection, "insolvent" means the condition that results when the sum 3
of the entity's debts exceeds the fair market value of its assets. 4
The board or the director, as applicable, may presume that an entity 5
is insolvent if the entity refuses to disclose to the board or the 6
director, as applicable, the nature of its assets and liabilities.7
(2)(a) For a responsible individual who is the current or a 8
former chief executive or chief financial officer, liability under 9
this section applies regardless of fault or whether the individual 10
was or should have been aware of the unpaid trust fund tax liability 11
of the limited liability business entity. 12
(b) For any other responsible individual, liability under this 13
section applies only if he or she willfully failed to pay or to cause 14
to be paid to the board the trust fund taxes due from the limited 15
liability business entity. 16
(3)(a) Except as provided in this subsection (3)(a), a 17
responsible individual who is the current or a former chief executive 18
or chief financial officer is liable under this section only for 19
trust fund tax liability accrued during the period that he or she was 20
the chief executive or chief financial officer. However, if the 21
responsible individual had the responsibility or duty to remit 22
payment of the limited liability business entity's trust fund taxes 23
to the board or the director, as applicable, during any period of 24
time that the person was not the chief executive or chief financial 25
officer, that individual is also liable for trust fund tax liability 26
that became due during the period that he or she had the duty to 27
remit payment of the limited liability business entity's taxes to the 28
board or the director, as applicable, but was not the chief executive 29
or chief financial officer. 30
(b) All other responsible individuals are liable under this 31
section only for trust fund tax liability that became due during the 32
period he or she had the responsibility or duty to remit payment of 33
the limited liability business entity's taxes to the board or the 34
director, as applicable. 35
(4) Persons described in subsection (3)(b) of this section are 36
exempt from liability under this section in situations where 37
nonpayment of the limited liability business entity's trust fund 38
taxes was due to reasons beyond their control as determined by the 39
board or the director by rule. 40
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(5) Any person having been issued a notice of unpaid trust fund 1
taxes under this section is entitled to an administrative hearing 2
under RCW 69.50.334 and any such rules the board or director may 3
adopt. 4
(6) This section does not relieve the limited liability business 5
entity of its trust fund tax liability or otherwise impair other tax 6
collection remedies afforded by law. 7
(7) The definitions in this subsection apply throughout this 8
section unless the context clearly requires otherwise.9
(a) (("Board" means the state liquor and cannabis board.10
(b))) "Chief executive" means: The president of a corporation or 11
for other entities or organizations other than corporations or if the 12
corporation does not have a president as one of its officers, the 13
highest ranking executive manager or administrator in charge of the 14
management of the company or organization. 15
(((c))) (b) "Chief financial officer" means: The treasurer of a 16
corporation or for entities or organizations other than corporations 17
or if a corporation does not have a treasurer as one of its officers, 18
the highest senior manager who is responsible for overseeing the 19
financial activities of the entire company or organization.20
(((d))) (c) "Limited liability business entity" means a type of 21
business entity that generally shields its owners from personal 22
liability for the debts, obligations, and liabilities of the entity, 23
or a business entity that is managed or owned in whole or in part by 24
an entity that generally shields its owners from personal liability 25
for the debts, obligations, and liabilities of the entity. Limited 26
liability business entities include corporations, limited liability 27
companies, limited liability partnerships, trusts, general 28
partnerships and joint ventures in which one or more of the partners 29
or parties are also limited liability business entities, and limited 30
partnerships in which one or more of the general partners are also 31
limited liability business entities. 32
(((e))) (d) "Manager" has the same meaning as in RCW 33
((25.15.005)) 25.15.006. 34
(((f))) (e) "Member" has the same meaning as in RCW ((25.15.005)) 35
25.15.006, except that the term only includes members of member-36
managed limited liability companies. 37
(((g))) (f) "Officer" means any officer or assistant officer of a 38
corporation, including the president, vice president, secretary, and 39
treasurer. 40
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(((h))) (g)(i) "Responsible individual" includes any current or 1
former officer, manager, member, partner, or trustee of a limited 2
liability business entity with unpaid trust fund tax liability.3
(ii) "Responsible individual" also includes any current or former 4
employee or other individual, but only if the individual had the 5
responsibility or duty to remit payment of the limited liability 6
business entity's unpaid trust fund tax liability. 7
(iii) Whenever any taxpayer has one or more limited liability 8
business entities as a member, manager, or partner, "responsible 9
individual" also includes any current and former officers, members, 10
or managers of the limited liability business entity or entities or 11
of any other limited liability business entity involved directly in 12
the management of the taxpayer. For purposes of this subsection 13
(((7)(h)(iii))) (7)(g)(iii), "taxpayer" means a limited liability 14
business entity with unpaid trust fund taxes. 15
(((i))) (h) "Trust fund taxes" means taxes collected from buyers 16
and deemed held in trust under RCW 69.50.535. 17
(((j))) (i) "Willfully failed to pay or to cause to be paid" 18
means that the failure was the result of an intentional, conscious, 19
and voluntary course of action. 20
Sec. 822. RCW 69.50.580 and 2022 c 16 s 111 are each amended to 21
read as follows: 22
(1) Applicants for a cannabis producer's, cannabis processor's, 23
cannabis researcher's or cannabis retailer's license under this 24
chapter must display a sign provided by the board on the outside of 25
the premises to be licensed notifying the public that the premises 26
are subject to an application for such license. The sign must:27
(a) Contain text with content sufficient to notify the public of 28
the nature of the pending license application, the date of the 29
application, the name of the applicant, and contact information for 30
the board or the director, as applicable; 31
(b) Be conspicuously displayed on, or immediately adjacent to, 32
the premises subject to the application and in the location that is 33
most likely to be seen by the public; 34
(c) Be of a size sufficient to ensure that it will be readily 35
seen by the public; and 36
(d) Be posted within seven business days of the submission of the 37
application to the board or the director, as applicable.38
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(2) The board or the director, as applicable, must adopt such 1
rules as are necessary for the implementation of this section, 2
including rules pertaining to the size of the sign and the text 3
thereon, the textual content of the sign, the fee for providing the 4
sign, and any other requirements necessary to ensure that the sign 5
provides adequate notice to the public. 6
(3)(a) A city, town, or county may adopt an ordinance requiring 7
individual notice by an applicant for a cannabis producer's, cannabis 8
processor's, cannabis researcher's, or cannabis retailer's license 9
under this chapter, sixty days prior to issuance of the license, to 10
any elementary or secondary school, playground, recreation center or 11
facility, child care center, church, public park, public transit 12
center, library, or any game arcade admission to which is not 13
restricted to persons aged ((twenty-one)) 21 years or older, that is 14
within ((one thousand)) 1,000 feet of the perimeter of the grounds of 15
the establishment seeking licensure. The notice must provide the 16
contact information for the board where any of the owners or 17
operators of these entities may submit comments or concerns about the 18
proposed business location. 19
(b) For the purposes of this subsection, "church" means a 20
building erected for and used exclusively for religious worship and 21
schooling or other activity in connection therewith.22
Sec. 823. RCW 69.50.585 and 2016 sp.s. c 17 s 1 are each amended 23
to read as follows: 24
(1)(a) Nothing in this chapter prohibits a producer or processor 25
from providing retailers branded promotional items which are of 26
nominal value, singly or in the aggregate. Such items include but are 27
not limited to: Lighters, postcards, pencils, matches, shirts, hats, 28
visors, and other similar items. Branded promotional items:29
(i) Must be used exclusively by the retailer or its employees in 30
a manner consistent with its license; 31
(ii) Must bear imprinted advertising matter of the producer or 32
processor only; 33
(iii) May be provided by a producer or processor only to 34
retailers and their employees and may not be provided by or through 35
retailers or their employees to retail customers; and36
(iv) May not be targeted to youth, including any: (A) Statement, 37
picture, or illustration that depicts a child or other person under 38
legal age for consuming cannabis; (B) objects, such as toys or 39
p. 77 HB 2616
characters, suggesting the presence of a child, or any other 1
depiction designed in any manner to be especially appealing to 2
children or other persons under legal age to consume cannabis; (C) 3
advertising designed in any manner that would be especially appealing 4
to children or other persons under ((twenty-one)) 21 years of age; or 5
(D) advertising implying that the consumption of cannabis is 6
fashionable or the accepted course of behavior for persons under 7
((twenty-one)) 21 years of age. 8
(b) A producer or processor is not obligated to provide any such 9
branded promotional items, and a retailer may not require a producer 10
or processor to provide such branded promotional items as a condition 11
for selling any cannabis to the retailer. 12
(c) Any producer, processor, or retailer or any other person 13
asserting that the provision of branded promotional items as allowed 14
in (a) of this subsection has resulted or is more likely than not to 15
result in undue influence or an adverse impact on public health and 16
safety, or is otherwise inconsistent with the criteria in (a) of this 17
subsection may file a complaint with the ((state liquor and 18
cannabis)) board or the director, as applicable . Upon receipt of a 19
complaint the ((state liquor and cannabis )) board or the director, as 20
applicable, may conduct such investigation as it deems appropriate in 21
the circumstances. If the investigation reveals the provision of 22
branded promotional items has resulted in or is more likely than not 23
to result in undue influence or has resulted or is more likely than 24
not to result in an adverse impact on public health and safety or is 25
otherwise inconsistent with (a) of this subsection the ((state liquor 26
and cannabis )) board or the director, as applicable, may issue an 27
administrative violation notice to the producer, processor, or 28
retailer. The recipient of the administrative violation notice may 29
request a hearing under chapter 34.05 RCW. 30
(2) Nothing in this chapter prohibits: 31
(a) Producers or processors from listing on their internet 32
websites information related to retailers who sell or promote their 33
products, including direct links to the retailers' internet websites; 34
and 35
(b) Retailers from listing on their internet websites information 36
related to producers or processors whose products those retailers 37
sell or promote, including direct links to the producers or 38
processors' websites; or 39
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(c) Producers, processors, and retailers from producing, jointly 1
or together with regional, state, or local industry associations, 2
brochures and materials promoting tourism in Washington state which 3
contain information regarding retail licensees, producers, 4
processors, and their products. 5
(3) Nothing in this chapter prohibits the performance of personal 6
services offered from time to time by a producer or processor to 7
retailers when the personal services are (a) conducted at a licensed 8
premises, and (b) intended to inform, educate, or enhance customers' 9
knowledge or experience of the manufacturer's products. The 10
performance of personal services may include participation in events 11
and the use of informational or educational activities at the 12
premises of a retailer holding a license under this chapter. A 13
producer or processor is not obligated to perform any such personal 14
services, and a retail licensee may not require a producer or 15
processor to conduct any personal service as a condition for selling 16
cannabis to the retail licensee. 17
(4) For the purposes of this section, "nominal value" means a 18
value of ((thirty dollars)) $30 or less. 19
PART 9: MISCELLANEOUS PROVISIONS20
NEW SECTION. Sec. 901. This act may be known and cited as the 21
framework for agriculturally resilient markets act.22
NEW SECTION. Sec. 902. Section 802 of this act expires June 30, 23
2027.24
NEW SECTION. Sec. 903. Section 803 of this act takes effect 25
June 30, 2027.26
--- END ---
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