The Week Ahead
(March 25, 2024)

Governor Bill Signing - SB 5367 - WSLCB - HB 2151 - WSDA

The cannabis waste bill was lined up for Inslee’s signature, rules on THC legislation from 2023 were ready for review, and WSDA staff kept their eyes on the calendar for lab accreditation.

Here’s a look at cannabis-related policymaking events on the calendar in the week ahead.

Monday March 25th

WA Governor - Bill Action

On Monday at 1:30pm, the Washington State Governor (WA Governor) was scheduled to undertake action on a set of bills.

  • [ Event Details ]
  • SB 5376 - “Allowing the sale of cannabis waste.”
    • On Monday March 4th, the Washington State Senate concurred with changes made to the legislation by their peers in the House to authorize the sale or giveaway of cannabis waste subject to certain requirements.
    • On Monday March 25th, Governor Jay Inslee was scheduled to take action on the bill.
  • In addition to the budget legislation, only one other cannabis bill remained unscheduled for action at publication time: HB 2320 (“Concerning high THC cannabis products”).
    • It’s possible there was concern about the contentious provision on research and development of clinical guidance due to a mismatch between the legislation requirements and the operating budget language following a last minute change on the final day of the 2024 regular session after the budget had been agreed upon.
    • The Washington State Health Care Authority (WA HCA) was funded in fiscal year 2025 to implement the provision at issue under prior bill language which specified the funding should be “provided solely for the authority to contract with the University of Washington addictions, drug, and alcohol institute” (UW ADAI).  But in HB 2320 as passed by the legislature, the WA HCA was technically required to issue a request for proposals (RFP) which could be argued to be unfairly weighted in UW ADAI’s favor if funding was “solely” allocated for that outcome.  There may be some legal liability if WA HCA were to use that funding to award the work to someone else - as well as cause for protesting preferential treatment if they do award the multi-year, potentially multi-million dollar contract to UW ADAI.
    • As HB 2320 was delivered to the Governor's desk on March 7th, his office has until March 30th, 20 calendar days (not counting Sundays), to take action.  In the absence of action, the bill becomes law.

Tuesday March 26th

WSLCB - Board Caucus

On Tuesday at 10am PT, the weekly Washington State Liquor and Cannabis Board (WSLCB) Board Caucus was scheduled to recur.

WA HCA - DBHR Listening Session

On Tuesday at 1:30pm PT, the monthly Washington State Health Care Authority (WA HCA) Division of Behavioral Health and Recovery (DBHR) Behavioral Health Service Provider Listening Session was scheduled to recur.

  • [ Event Details ]
  • According to the event announcement, participants were scheduled to hear “Section updates from the Division of Behavioral Health and Recovery” and “Legislative session updates.”

WSLCB - Focus Group - SB 5367 Implementation

On Tuesday at 3pm PT, WSLCB staff planned to host a focus group on the SB 5367 Implementation rulemaking project.

  • [ Event Details, Rulemaking Project ]
  • According to the event announcement, “As part of the Liquor and Cannabis Board’s (LCB) ongoing rulemaking to implement the legislation, the agency is holding a series of virtual rule workshops in March and April to discuss and gather feedback from interested parties on draft proposed rule language that is being considered.”
  • SB 5367 was the significant 2023 agency request legislation remaking definitions at the root of the cannabis and hemp sectors.  While the rulemaking project to implement the legislation was initiated in June and an initial series of focus groups was hosted in December of the same year, the effort languished at the WSLCB among many other rulemaking projects taken on by a Policy and Rules team in transition.
    • No cannabis rules were adopted by WSLCB board members in 2023.
  • Despite stated intentions to share draft rule language in November 2023 prior to the initial focus groups in December, staff did not do so, which constrained those conversations to conceptual discussions.
  • The engagements on Tuesday and Thursday were intended to focus on two sections of the Washington Administrative Code (WAC) and draft language was published in the prior week:
    • WAC 314-55-010 (Definitions)
      • Conspicuously absent from the redlined definitions is any mention of the undefined legislative terminology “any detectable amount of THC” which became the crucial ambiguity upon which SB 5367 hinged.
      • Instead, two terms are included which make reference to unadopted Washington State Department of Agriculture (WSDA) rules in their Cannabis Testing Lab Quality Standards project:
        • (23) “Limit of detection (LOD)” or “detectable limit” has the meaning provided in WAC 16-309-010.
        • (24) “Limit of quantification (LOQ)” has the meaning provided in WAC 16-309-010.
    • WAC 314-55-080 (Medical Cannabis Endorsement)
      • One change has been proposed to wholly remove an existing section:
        • (4) A cannabis retailer holding a medical cannabis endorsement may sell products with a THC concentration of 0.3 percent or less. The licensee may also provide these products at no charge to qualifying patients or designated providers.
      • Unusually, the removal conflicts with a change proposed as part of the concurrent Retail Medical Cannabis Endorsements rulemaking project:
        • (4) The licensee may also provide medically compliant cannabis products defined in chapter 246-70 WAC at no charge to qualifying patients or designated providers.
      • Questions had been raised about that particular section during the March 11th focus group on the endorsements rulemaking and WAC 314-55-155(5) stipulates that endorsement holders “may donate product to qualifying patients or designated providers who hold a valid recognition card,” without reference to type or DOH compliance.  So subsequent analysis may have concluded the provision was unnecessary.

Wednesday March 27th

WSLCB - Board Meeting

On Wednesday at 10am PT, the bi-weekly WSLCB Board Meeting was scheduled to recur.

WSDA PAB - Board Meeting

On Wednesday at 10am PT, the Washington State Department of Agriculture Pesticide Advisory Board (WSDA PAB) was scheduled to convene.

  • [ Event Details ]
  • The second meeting of the reconstituted WSDA PAB had a full agenda including the introduction of WSDA Pesticide Compliance Program Manager Scott Nielsen, whose work touches both cannabis and hemp producers.
  • Also of note, Kelly McLain was scheduled to introduce the proceedings and was listed as “Assistant Director” indicating a promotion from her previous role as Legislative Liaison and Policy Advisor.

WSDA - Webinar - Cannabis Testing Lab Accreditation

On Wednesday at 1:30pm PT, WSDA staff planned to host a second webinar on the upcoming Cannabis Testing Lab Accreditation expedited rulemaking project.

  • [ Event Details, Rulemaking Project ]
  • Following the passage of HB 2151, WSDA request legislation transferring the responsibility for testing lab accreditation to the Department, agency staff were well prepared to quickly begin gathering feedback to inform the creation of new rules.
  • On March 14th, WSDA staff hosted an initial webinar to provide context and field questions from participants on initial draft rules.  Having been granted authority to undertake expedited rulemaking, staff hoped to gather comprehensive feedback in advance of filing a CR-105 on or around April 17th.
  • In parallel, WSDA staff continued to move the Cannabis Testing Lab Quality Standards rulemaking project forward after filing a revision to their proposed rules in late February.  A second public hearing on the proposed rules was scheduled for April 9th.

Thursday March 28th

WSLCB - Focus Group - SB 5367 Implementation

On Thursday at 1pm PT, WSLCB staff planned to host a focus group on the SB 5367 Implementation rulemaking project.

Friday March 29th

At publication time, no cannabis-related policymaking events were scheduled.