WSLCB Actions: New Permanent Rule For Certificates Of Compliance For Cannabis Business Locations And Extension Of Emergency Rules On Prohibition Of Vitamin E Acetate

January 6, 2021 Board Action

On Jan. 6, during a regularly scheduled meeting, the Washington State Liquor and Cannabis Board took the following actions:

Adopted Emergency Rules (CR-103E) Regarding Vitamin E Acetate

Emergency Rules (WAC 314-55-1055) – Marijuana Product Disclosure Form (Effective January 6, 2021)

Emergency Rules (WAC 314-55-1065) – LCB Vitamin E Acetate Prohibition (formerly LCB Vitamin E Acetate Ban) (Effective January 6, 2021)

Emergency Rules (WAC 314-55-077) – Marijuana Processor License – Privileges, Requirements and Fees (Effective January 6, 2021)

Emergency Rules (WAC 314-55-079) – Marijuana Retailer License – Privileges, Requirements and Fees (Effective January 6, 2021)

 

Adopted Permanent Rule (CR-103P)  Certificate of Compliance – location of business upon application submission)

Implementation of SSB 6206 – Marijuana Business Premise Certificate of Compliance (Effective February 6, 2021)

Washington: Cannabis Testing Lab Praxis Shut Down For Falsifying Test Results

More than 1200 sample tests given elevated THC potency results by lab in Lewis Co.

WASHINGTON:  The Washington State Liquor and Cannabis Board (LCB) issued a summary suspension of Praxis Laboratory’s certification to conduct quality assurance located in Centralia, Washington was found to have falsified testing data to provide high tetrahydrocannabinol (THC) potency results for more than 1200 samples of cannabis.

During the investigation the lab owner attempted to destroy evidence of falsified data in an effort to obstruct LCB’s ability to conduct a complete investigation.

Labeling cannabis with falsely high THC potency levels is a form of consumer deception and is prohibited under Washington law. THC is the natural chemical compound responsible for cannabis’s psychoactive effect. Because of this, cannabis users seeking more pronounced psychoactive results may choose to buy cannabis with higher levels of THC.

The summary suspension is effective for 180 days beginning December 10, 2020 until June 8, 2021. During that time the WSLCB will seek permanent revocation of the “marijuana laboratory” certification due to fraud, and the subsequent investigation obstruction. Moving forward, the lab will no longer be allowed to test cannabis for licensees in Washington.

The LCB educates licensees to reach compliance and enforces Washington’s liquor, cannabis, vape and tobacco laws and regulations. The WSLCB is mandated to ensure that licensees in Washington State follow state laws and regulations. When licensees fail to comply with state law, the Board, under state authority can take action including the issuance of suspensions to ensure public health and safety.

Washington: WSLCB Extended Public Comment Period For Supplemental Proposed Rules

WSR #20-20-040:  Quality Control Testing and Products Requirements

WASHINGTON: The Washington State Liquor and Cannabis Board has extended the public comment period for input on supplemental proposed rules regarding marijuana quality control rules described in chapter 314-55 WAC.

This notice and other relevant rule-making materials may be viewed at lcb.wa.gov/laws/laws-and-rules under Proposed Rules.

The Liquor and Cannabis Board encourages your participation in the rule-making process by giving input on this rule.

Public Comment
Please forward your initial comments to the Liquor and Cannabis Board by mail, e-mail, or fax by November 19, 2020.

By mail:
Rules Coordinator
Liquor and Cannabis Board
P.O. Box 43080
Olympia, WA 98504-3080

By e-mail:
rules@lcb.wa.gov

By fax:
360-664-9689

Washington: WSLCB Notice Of Proposed Rules

October 28, 2020

Notice of Proposed Rules – WSR #20-22-042

The Washington State Liquor and Cannabis Board invites your input on proposed rules regarding marijuana license qualification and application process rules described in chapter 314-55 WAC.

This notice and other relevant rulemaking materials may be viewed at lcb.wa.gov/laws/laws-and-rules under Proposed Rules.

The Liquor and Cannabis Board encourages your participation in the rule making process by giving input on this rule. The board will hold at least one public hearing before the rules are adopted.

Public Comment

Please forward your initial comments to the Liquor and Cannabis Board by mail, e-mail, or fax by December 9, 2020.

By mail:   Rules Coordinator                       By e-mail:                 By fax:
                 Liquor and Cannabis Board      rules@lcb.wa.gov    360-664-9689
P.O. Box 43080
Olympia, WA  98504-3080

Public Hearing: December 9, 2020, 10:00 a.m.

In response to the coronavirus disease 2019 (COVID-19) public health emergency, the Board will not provide a physical location for this hearing to promote social distancing and the safety of the citizens of Washington state. A virtual public hearing, without a physical meeting space, will be held instead. Board members, presenters, and staff will all participate remotely. The public may login using a computer or device, or call-in using a phone, to listen to the meeting through the WebEx application. The public may provide verbal comments during the specified public comment and rules hearing segments.

For more information about board meetings, please visit https://lcb.wa.gov/boardmeetings/board_meetings

WSLCB Issues Emergency Suspension To Okanogan County Marijuana Producer

El Rey De La Kush suspended for alleged distribution of product out of state

WASHINGTON: Washington State Liquor and Cannabis Board (WSLCB) officers today issued an emergency suspension to Tier 1 producer El Rey de La Kush (license number 428922) located in Riverside, WA. The suspension, effective immediately, is for alleged diversion of product out of the state.

On September 16, 2020, the Wenatchee Police Department notified WSLCB officers of a case they were investigating involving 4.3 pounds of marijuana that had been shipped from a residence in Wenatchee via the United Parcel Service (UPS). A search warrant was served at the residence where approximately 620 pounds of marijuana was discovered. The marijuana had WSLCB traceability system tags associated with El Rey De La Kush.

The suspect in the case, Brandi Clardy, is directly affiliated with El Rey De La Kush and listed as “Other” on the license. The licensee for El Rey De La Kush, Juan Penaloza, died in July 2020. Clardy has been operating the business since his death.

In an interview with the Wenatchee Police Department, Clardy admitted to unlawfully removing marijuana from the licensed premises for the purposes of distributing marijuana out of state

Based on federal enforcement priorities, the WSLCB’s three highest priorities for regulating Washington’s licensed marijuana operation are:

  1. Preventing the criminal element from entering the system;
  2. Keeping marijuana out of the hands of minors; and
  3. Preventing diversion of product out of state.

Marijuana products from El Rey De la Kush were actively being diverted out of a legal licensed producer/processor, to Texas, where marijuana is illegal. The blatant disregard to follow the laws established by the state of Washington for a safe and regulated marijuana market warrant the emergency suspension pending cancellation of this license.

The license will remain suspended for a period of 180 days, during which the WSLCB will pursue permanent revocation.

Emergency suspensions represent an extraordinary exercise of the state’s power and the WSLCB is mandated to ensure that an emergency suspension is reasonable, justifiable and legal. This is only the second Board-issued emergency suspension of 2020.

WASHINGTON: WSLCB September 16 Board Activity

WASHINGTON: The WSLCB Board met yesterday, September 16, 2020. During the meeting, the following actions were taken:

WSLCB Virtual Listen and Learn Forum Session #2: Rules Regarding Marijuana Vapor Products

WASHINGTON:  The Washington State Liquor and Cannabis Board (WSLCB) is hosting two Listen and Learn forums to consider establishing new and amending existing sections of rule concerning marijuana definitions and marijuana vapor products. This is the second of two planned sessions. The full text of the draft conceptual rules are provided here.

For this session, we are discussing only draft conceptual rule sections 314-55-550 to implement House Bill 2826 pertaining to marijuana vapor products, and the Marijuana Vapor Product Disclosure Form. The Disclosure Form is provided here.

Please join us virtually on Tuesday, September 29, 2020, from 2:00 p.m. until 4:00 p.m. via WebEx.

**Attendees wishing to provide feedback are encouraged to participate early in the meeting, as the meeting may end early dependent on level of participation.**

Background
On March 25, 2020, HB 2826 passed the legislature in response to concerns related to marijuana vapor product and vapor related lung illnesses. The bill contained an emergency clause, and in its intent section, found that “recent reports of lung illnesses associated with vapor products” demanded “serious attention by the state in the interest of protecting public health and preventing youth access.

HB 2826 provides that the Board may adopt rules prohibiting any type of marijuana vapor product device, or prohibit the use of any type of additive, solvent, ingredient, or compound in the production and processing of marijuana products, including marijuana vapor products. However, before adopting either of these types of rules, the Board must have determined, following a consultation with the Department of Health (DOH), or any other authority the Board deems appropriate, the device, additive, solvent, ingredient, or compound may pose a risk to public health or youth access.

HB 2826 authorizes the Board to require marijuana processors to submit, under oath, to the Department of Health, a complete list of all constituent substances and the amount and sources of all constituent substances in each marijuana vapor product. HB 2826 also provides that Board may adopt rules prohibiting the use of a characterizing flavor in marijuana vapor products.

Rules are needed to implement the provisions of HB 2826, and to establish definitions for terms including, but not limited to “characterizing flavor,” botanical terpenes,” and others.

The Pre-proposal Statement of Inquiry filed by the Liquor and Cannabis Board may be found here.

Meeting Details
An agenda is attached. Please come prepared to offer feedback and suggestions regarding this rule section.

If you wish to participate virtually, we’d like to offer the following reminders:

  • Virtual participation will be structured to allow one speaker at a time through a hand-raising feature on WebEx.
  • If you experience difficulty with audio or visual elements of virtual participation, please be patient.

Please remember that we are still in the developmental phase of rulemaking, and there are not yet any proposed or final rules amendments. To help you prepare for this listen/learn/contribute forum, please review the guidance document prepared for this and future forums.

Questions? Contact Casey Schaufler at casey.schaufler@lcb.wa.gov

To join the WebEx meeting online:
https://watech.webex.com/watech/j.php?MTID=m208eaad1ec16f31cfccdf6970963e1cb


To join the WebEx meeting via audio conference only:
Dial: (415) 655-0001
Access Code: 372 115 47

WASHINGTON: Virtual Listen And Learn Forum Session #1: Rules Regarding Marijuana Definitions And Vapor Products

WASHINGTON:  The Washington State Liquor and Cannabis Board (WSLCB) is hosting two Listen and Learn forums to consider establishing new and amending existing sections of rule concerning marijuana definitions and marijuana vapor products. This is the first of two planned sessions. The full text of the draft conceptual rules are provided here.

For this session, we are discussing only draft conceptual rule sections 314-55-010(4) and (40) to implement House Bill 2826 pertaining to marijuana vapor products.

Please join us virtually on Tuesday, September 1, 2020, from 2:00 p.m. until 3:45 p.m. via WebEx.

Background
On March 25, 2020, HB 2826 passed the legislature in response to concerns related to marijuana vapor product and vapor related lung illnesses. The bill contained an emergency clause, and in its intent section, found that “recent reports of lung illnesses associated with vapor products” demanded “serious attention by the state in the interest of protecting public health and preventing youth access.

HB 2826 provides that the Board may adopt rules prohibiting any type of marijuana vapor product device, or prohibit the use of any type of additive, solvent, ingredient, or compound in the production and processing of marijuana products, including marijuana vapor products. However, before adopting either of these types of rules, the Board must have determined, following a consultation with the Department of Health (DOH), or any other authority the Board deems appropriate, the device, additive, solvent, ingredient, or compound may pose a risk to public health or youth access.

HB 2826 authorizes the Board to require marijuana processors to submit, under oath, to the Department of Health, a complete list of all constituent substances and the amount and sources of all constituent substances in each marijuana vapor product. HB 2826 also provides that Board may adopt rules prohibiting the use of a characterizing flavor in marijuana vapor products.

Rules are needed to implement the provisions of HB 2826, and to establish definitions for terms including, but not limited to “characterizing flavor,” botanical terpenes,” and others.

The Pre-proposal Statement of Inquiry filed by the Liquor and Cannabis Board may be found here.

Meeting Details
An agenda is attached. Please come prepared to offer feedback and suggestions regarding this rule section.

If you wish to participate virtually, we’d like to offer the following reminders:

  • Virtual participation will be structured to allow one speaker at a time through a hand-raising feature on WebEx.
  • If you experience difficulty with audio or visual elements of virtual participation, please be patient.

Please remember that we are still in the developmental phase of rulemaking, and there are not yet any proposed or final rules amendments. To help you prepare for this listen/learn/contribute forum, please review the guidance document prepared for this and future forums.

Questions? Contact Casey Schaufler at casey.schaufler@lcb.wa.gov

To join the WebEx meeting online:
https://watech.webex.com/watech/j.php?MTID=mee35a3ea86f3824ff52650252c672ee9

To join the WebEx meeting via audio conference only:

  • Toll Free: 1-855-929-3239
  • Toll: 415-655-0001
  • Access Code: 133 951 6990

WSLCB Invitation For Public Comment: Draft Conceptual Rules For Marijuana Business Premise Certificate of Compliance

WASHINGTON: The Washington State Liquor and Cannabis Board (WSLCB) is seeking public comment regarding draft conceptual rules. These draft conceptual rules are narrowly scoped to include a new rule subsection that provides a marijuana business premise certificate of compliance.  A draft, conceptual version of WAC 314-55-020 is linked here. The new subsection (6) is highlighted in blue.

Background
On July 8, 2020, the WSLCB filed a pre-proposal statement of inquiry (CR 101) to consider amending WAC 314-55-020 to establish a certificate of compliance for marijuana business premises consistent with the mandates of Substitute Senate Bill (SSB) 6206 (Chapter 154, Laws of 2020). The CR-101 filing and supporting documents are located here.

Specifically, SSB 6206 amended RCW 69.50.331 to create a certificate of compliance for marijuana business premises, and became effective June 11, 2020. The amendment requires the Board to issue a certificate of compliance for a marijuana business applicant’s premises, if the premises met the distance requirements from restricted entities (such as parks, schools, and playgrounds) at the time the application was filed. The certificate allows the licensee to operate the business at the proposed location notwithstanding a later occurring, otherwise disqualifying factor regarding restricted entities.

The WSLCB invites and encourages your comment on the draft conceptual rule language offered as WAC 314-55-020 (6). Your feedback will be reviewed and considered before a CR 102, or rule proposal, is presented to the Board for approval.

Public Comment
Please forward your comments to Casey Schaufler at casey.schaufler@lcb.wa.gov by September 4, 2020. The CR102 proposal is anticipated to be presented to the Board on or after September 30, 2020.

Virtual Listen and Learn Forum: Rules Regarding Tier 1 Producer Licensing, Session #2

WASHINGTON: The Washington State Liquor and Cannabis Board (WSLCB) is hosting two Listen and Learn forums about the current rules regarding marijuana producer licenses, specifically the consideration of revisions and new rule sections that would incrementally expand the plant canopy square footage allowed for licensed Tier 1 producers. This is the second of two planned sessions. Session #1 will cover WAC 314-55-075 Sections 1 through 5. Session #2 will focus on Sections 6 through 11.The full text of WAC 314-55-075 is provided here.

Please join us virtually on Tuesday, June 30, 2020, from 1:00 p.m. until 3:00 p.m. via WebEx in alignment with guidance and recommendations issued by the Governor’s office.

As you may recall, the Board began to consider revisions to existing producer license rules by initiating a formal rule inquiry on December 18, 2019. The Pre-proposal Statement of Inquiry filed by the Liquor and Cannabis Board may be found here.

The Board has received requests from medical marijuana patients and segments of the industry to increase the availability of Department of Health (DOH) compliant product in licensed retail stores. The Board has also learned that smaller producers are concerned about business sustainability based on canopy space restrictions. Recognizing this, the Board would like to explore the ways that it can support Tier 1 producer business viability. Revisions considered may also include clarifying and technical updates to existing rule within the scope of this topic.

An agenda is attached to help you prepare. Please come prepared to offer feedback and suggestions regarding this rule section.

If you wish to join us virtually, we’d like to offer the following reminders:

  • Virtual participation will be structured to allow one speaker at a time though the hand-raising feature on WebEx.
  • If you experience difficulty with audio or visual elements of virtual participation, please be patient.

Please remember that we are still in the developmental phase of rulemaking, and there are not yet any proposed or final rules amendments. To help you prepare for this listen/learn/contribute forum, please review the guidance document prepared for this and future forums.

Questions? Contact Casey Schaufler at casey.schaufler@lcb.wa.gov

To join the WebEx meeting online:

https://watech.webex.com/watech/onstage/g.php?MTID=e704a0de07d3b41806e1f7f59ba96195e

To join the WebEx meeting via audio conference only:

Toll Free: 1-855-929-3239
Access Code: 133 418 7301