WSLCB Continues Emergency Vape Regulations For Washington Licensees

 

January 23, 2020

Dear Cannabis Licensee,

The Centers for Disease Control and Prevention says the national outbreak of vaping-associated lung injury has waned. We would like to update you on the emergency rules passed by the State Board of Health, and other issues of importance to cannabis licensees. Below you will find information about what to expect and what continues to be required.

  • The State Board of Health emergency rule temporarily banning flavored vapor products remains in effect through February 7, 2020. On February 8, 2020, retailers may legally sell flavored vapor products.
  • As of February 8, 2020, you no longer are required to post the warning sign about the severe lung injury.
  • The State Board of Health emergency rule temporarily banning vapor products with vitamin E acetate remains in effect until March 19,
  • The Board is expected to withdraw all LCB flavored-vapor-product rules that are tied to the State Board of Health rules.
  • Marijuana Vapor Product Ingredient Disclosure forms are still required to be submitted by all producer/processor and processor licensees for each vapor product. For more information, see the Links to Required Documents box on our Vapor and Public Health

Important: please note that the Washington State Legislature is currently in session and considering bills regarding the regulation of vapor products, including Governor-requested legislation to ban vitamin E acetate and all flavorings, except tobacco flavoring, in non-THC vapor products. We encourage you to follow the legislative action this session.

We appreciate your cooperation throughout the vaping-associated lung injury investigation and other changes impacting marijuana license holders.

 

New Emergency Regulation For Cannabis Distributors And Retailers Requires California Cannabis Track-and-Trace

CALIFORNIA: The California Department of Tax and Fee Administration (CDTFA) recently adopted emergency Regulation 3702, California Cannabis Track-and-Trace, which requires distributors and retailers to enter the wholesale cost and the retail selling price of cannabis or cannabis products into the California Cannabis Track-and-Trace (CCTT) system. The emergency Regulation 3702 is now in effect.

CA-Cannabis-Logo

The Medicinal and Adult-Use Cannabis Regulations and Safety Act and regulations adopted by the Bureau of Cannabis Control (BCC) require all commercial cannabis activity be recorded in the CCTT system. Distributors and retailers that obtain an annual license with the BCC must begin recording commercial cannabis activity in the CCTT system. In addition to the existing requirements, each licensee must now enter the following information related to the cannabis excise tax.

Cannabis Distributors

A distributor is required to enter into the CCTT system the retailer’s wholesale cost of the cannabis or cannabis products that is sold or transferred to a  retailer in an arm’s length transaction.

In an arm’s length transaction, the distributor is required to calculate the average market price of the cannabis or cannabis products, which is the retailer’s wholesale cost plus a mark-up established by the CDTFA. The wholesale cost used to calculate the average market price is the amount entered into the CCTT system.

Cannabis Retailers

A cannabis retailer is required to enter into the CCTT system:

  • The wholesale cost of the cannabis or cannabis products. The wholesale cost is the amount paid by the retailer for
    the cannabis or cannabis products in an arm’s length transaction and is the amount used to calculate the average
    market price.
  • The retail selling price of the cannabis or cannabis products when the product is sold at retail.