Summer is “officially” over as judged by policymaking on traceability, 2022 legislation, synthesized cannabinoids, and medical cannabis taxation in the week ahead.
Here’s a look at cannabis-related policymaking events on the calendar in the week ahead.
Monday September 6th
At publication time, no cannabis-related policymaking events were scheduled.
Tuesday September 7th
WSLCB - Board Caucus
The weekly Washington State Liquor and Cannabis Board (WSLCB) Board Caucus was cancelled.
- [ Event Details ]
Wednesday September 8th
WSLCB - Webinar - CCRS
On Wednesday at 10am PT, WSLCB staff planned to host a webinar on the “Cannabis Central Reporting System” (CCRS).
- [ Event Details ]
- According to the CCRS website, “The Liquor and Cannabis Board (LCB) is simplifying the state’s traceability system to reflect the growth and maturation of the cannabis industry as well as preparing for the future. By year’s end, the LCB and industry will transition off the current Leaf Data Systems platform to a revamped, simplified, data-reporting platform developed and maintained in-house.”
- WSLCB staff announced this significant change on August 7th, and indicated “The webinar session will cover the fundamental processes and data reporting requirements of CCRS and will detail how testing, training, and technical resources and support will be provided before the system launches.”
- Somewhat uncharacteristically, the webinar will be broadcast-only and not utilize the interactive features deployed in most all other contexts by agency staff. Instead, staff have asked that questions be submitted in writing in advance to CCRS@lcb.wa.gov to be addressed during the webinar.
- This set of questions was collaboratively edited and submitted by several stakeholder members of the Traceability 2.0 Work Group.
WSLCB - Executive Management Team
On Wednesday at 1:30pm PT, the three-member Board and agency leadership were scheduled to convene their monthly WSLCB Executive Management Team (EMT) meeting.
- [ Event Details ]
- According to an internal 2022 Agency Request Legislation Timeline obtained via public records request, WSLCB staff and board members were scheduled to discuss potential legislative proposals at this week’s EMT meeting (“Board review of final proposals at EMT; any revisions are incorporated”). Stakeholders selected by Director of Legislative Relations Chris Thompson were scheduled to receive draft proposals for their review during the week of August 16th to enable time for review as required by the Office of the Governor, but were provided with the documents on September 1st. As Thompson planned to submit the WSLCB requests to the Washington State Office of Financial Management (WA OFM) by Friday September 10th, the EMT meeting would be the last opportunity to confer with board members publicly about the proposals. The deadline to submit potential agency request legislation is Monday September 13th.
- Two legislative proposals were shared with stakeholders and would likely be discussed with the Board on Wednesday:
- Synthesized Cannabinoids, summarized as “An Act relating to extending regulatory authority over cannabinoids of a psychotropic and impairing nature and providing for enhanced product safety and consumer information disclosure about marijuana products.” This legislation would radically reshape fundamental definitions establishing the legal structure of the 502 marketplace, while also authorizing the import of “other non-psychotropic cannabinoid product[s].”
- WSLCB/WSDA Joint Request Establishing an Interagency Coordination Team (ICT) for Cannabis Testing Lab Standards, summarized as “AN ACT Relating to quality standards for laboratories conducting cannabis analysis; adding a new chapter to Title 15.” As recommended through the deliberations of the Cannabis Science Task Force (CSTF), the authority to determine cannabis testing lab standards, including lab accreditation standards, would transfer to the Washington State Department of Agriculture (WSDA). The ICT---which would also include the Washington State Department of Health (DOH)---would make recommendations on those standards, but the authority to implement them would exist at WSDA. The Washington State Department of Ecology (DOE) would rely on WSDA rules to implement and help enforce cannabis testing lab accreditation.
- The CSTF Steering Committee discussed the WSLCB/WSDA agency request legislation at their last meeting on August 5th, where discussion also included DOE’s agency request legislation which would modify the timeline for implementation.
Thursday September 9th
WSLCB - Listen and Learn Forum - THC
On Thursday at 9am PT, a WSLCB Listen and Learn Forum on the Tetrahydrocannabinol (THC) rulemaking project was scheduled to occur.
- [ Event Details, Rulemaking Project ]
- During this listen and learn session, participants will review and have the opportunity to comment on each measure in the conceptual draft rules published on August 25th.
WA Commission for Measurement of Tax Preferences - Public Meeting
On Thursday at 10am PT, the Washington State Citizen Commission for Performance Measurement of Tax Preferences (WA Commission for Measurement of Tax Preferences) was scheduled to convene.
- [ Event Details ]
- This meeting would be devoted to hearing public testimony on the 2021 Tax Preference Performance Reviews, including medical cannabis tax preferences for patients and cooperatives.
- On August 3rd, Commissioners learned about tax exemptions for medical patients and cooperatives, and the potentially dramatic impact of a statutory change redefining eligible cannabis purchases. When implementing the medical marijuana program authorized by SB 5052 and HB 2136, the DOH was asked to define which cannabis products were “beneficial for medical use” as those products would be granted an exemption from sales and use taxes for registered medical patients. DOH staff subsequently decided any cannabis products purchased by registered patients would be interpreted as beneficial for their health, and therefore exempt entire retail purchases from sales and use taxation.
- However, in a 2019 cannabis packaging and labeling bill (SB 5298), Senator Karen Keiser introduced a striking amendment which redefined the tax exemption as only applicable to cannabis products certified as DOH compliant - very nearly eliminating the range of products the sales and use tax exemption could be applied to. Interestingly, neither DOH nor the Washington State Department of Revenue (WA DOR) took action on the statutory change to update rules or guidance to cannabis retailers, and the sales and use tax exemption continued to be applied as before. In fiscal year 2020, registered patients saved $1.57M on their cannabis purchases. If the statutory change had been respected, those patients would have instead only saved $6,895.
- As a result of this tax preference performance review, DOH and DOR have been notified and asked to follow up as regards their intentions. While JLARC staff have recommended the tax preferences be retained, uncertainty about how the sales and use tax exemption will be addressed figures in any determination as to whether the preferences are achieving their goal of providing benefits to registered cannabis patients. The Commissioners will hear directly from the public on this subject at this meeting, and provide questions for testifying parties to address.
Friday September 10th
At publication time, no cannabis-related policymaking events were scheduled.