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Industry Feedback

The Cannabis Alliance is a member driven organization dedicated to the advancement of a vital, ethical, equitable, and sustainable cannabis industry.  The Liquor and Cannabis Board has requested feedback, suggestions, or any comments may have, on the draft legislation the LCB is considering requesting for the 2023 legislative session.  You can view the LCB drafted summaries and full legislative drafts HERE.  Please answer as many questions as you are able to help us formulate our reply to the Liquor and Cannabis Board,

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* 1. Subpoena Power

Currently LCB has Subpoena power over the other industries it regulates: alcohol, tobacco and vape.  They are seeking similar subpoena power in cannabis to allow them to subpoena licensees and third parties.  Do you agree or disagree with this extension of power.

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* 2. If you do agree LCB should have subpoena power for cannabis in alignment with the other industries they regulate, should cannabis have parity in all other areas as well?

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* 3.
Link to Summary
Link to Draft Bill
Please share your additional comments

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* 4. Equity

Bill summary: “This proposal is intended to further the State’s interest in social equity in cannabis. It increases the number of available retail cannabis licenses [sic] and reduce barriers to licensure for social equity licenses. It also updates definitions to align with the work of the Social Equity in Cannabis Task Force (SECTF), codifies the third party provider to score social equity applications, and requires all cannabis licensees to have a social equity plan at renewal beginning in 2024.”

Do you agree LCB should request legislation addressing this issue?

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* 5. This legislation would require submission of a Social Equity plan at the time of license renewal for all licensees. 

Sec. 1. RCW 69.50.331 is amended to read as follows:
(11) Effective January 1, 2024, all cannabis licensees are required to submit a social equity plan at the time of license renewal. New cannabis licensees must submit a social equity plan prior to being issued a license.

Sec. 2. RCW 69.50.335 is amended to read as follows:
(6)(d) "Social equity plan" means a plan that addresses at least some of the elements outlined in this subsection (6)(d), along with any additional plan components or requirements approved by the board following consultation with the task force created in RCW 69.50.336. The plan may include:
     (i) A statement that indicates how the cannabis licensee will work to promote social equity goals in their community; social equity applicant qualifies as a social equity applicant and intends to own at least fifty-one percent of the proposed cannabis retail business or applicants representing at least fifty-one percent of the ownership of the proposed business qualify as social equity applicants;
     (ii) A description of how issuing a the cannabis retail license to the social equity applicant licensee will meet social equity goals;
     (iii) The social equity applicant's personal or family history with the criminal justice system including any offenses involving cannabis;
     (iv) (iii) The composition of the workforce the social equity applicant licensee has employed or intends to hire;
     (v) Neighborhood characteristics of the location where the social equity applicant intends to operate, focusing especially on disproportionately impacted areas; and
     (vi) (iv) Business plans involving partnerships or assistance to organizations or residents with connection to populations with a history of high rates of enforcement of cannabis prohibition.

Do you agree or disagree with this approach to addressing social equity in the Washington state cannabis industry?

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* 6. Differing from the recommendation from the Social Equity in Cannabis Task Force, the LCB proposes to increase the number of retail licenses based on census data and population estimates.

Sec. 2. RCW 69.50.335 is amended to read as follows:
(1) (a) Beginning December 1, 2020, and until July 1, 2029, cannabis retailer licenses that have been subject to forfeiture, revocation, or cancellation by the board, or cannabis retailer licenses that were not previously issued by the board but could have been issued without exceeding the limit on the statewide number of cannabis retailer licenses established before January 1, 2020, by the board, may be issued or reissued to an applicant who meets the cannabis retailer license requirements of this chapter.
     (b) In addition to the cannabis retailer licenses that may be issued under subsection (1)(a) of this section, beginning January 1, 2023, the board may, in its sole discretion, increase the number of cannabis retailer licenses for the social equity program based on:
     (i) The most recent census data available as of January 1, 2023; and
     (ii) The annual population estimates published by the office of financial management; and
     (iii) Each subsequent year, the board must evaluate population estimates published by the office of financial management to determine, in the board’s sole discretion, whether new retailer licenses should be made available.
     (c) All licenses issued under the social equity program under this section may be located in any city, town or county in the state that allows cannabis retail business activity at the proposed location, regardless of:
     (i) whether a cannabis retailer license was originally allocated to or issued in another city, town or county; and
     (ii) The maximum number of retail cannabis licenses established by the board for each county under RCW 69.50.345.

Do you agree with the approach suggested here by the LCB?

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* 7. Would you be in favor of a social equity questionnaire seeking company demographic information instead of a “social equity plan”?

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* 8. Do you think that social equity licenses should be limited to retail? Check all that apply.

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* 9. The Social Equity in Cannabis Task Force Licensing Work Group suggested recommendation for license increase is:

• Social Equity Recommendation: The legislature should establish a policy goal that 50% of total licenses should be owned by social equity licensees by 2029.
• Retail License Recommendations: The legislature should create additional retail licenses available across the state exclusive to social equity applicants until 2029.
• Producer License Recommendations: The legislature should create additional producer licenses available across the state exclusive to social equity applicants until 2029.
• New License Type Recommendations: The legislature should create a cannabis delivery license and cannabis social consumption licenses across the state exclusive to social equity applicants until 2029.


Do you agree with the suggested recommendations of the Social Equity in Cannabis Task Force?

Agree Neutral Disagree
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i We adjusted the number you entered based on the slider’s scale.

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* 10. Q: LCB is proposing to have a third party contractor rate applicants by judging based on a criteria program that the LCB chooses.  Do you agree with this approach?

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i We adjusted the number you entered based on the slider’s scale.

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* 11. Do you have any comments on LCB using a third party contractor?

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* 12. What would be another useful approach to choose or verify a social equity applicant?

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* 13. The period before a social equity applicant could sell their license is proposed at 5 years.  Do you agree with this approach?  Check all that apply.

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* 14. The LCB defines "disproportionately" impacted as:

Sec. 2. RCW 69.50.331 is amended to read as follows:

     (6) For the purposes of this section:
     (a) "Disproportionately impacted area" means a census tract within Washington state where community members were more likely to be impacted by the war on drugs. These areas are determined using a standardized statistical equation to identify areas of high unemployment, low income, and demographic indicators consistent with populations most impacted by the war on drugs, including areas with higher rates of arrest for drug charges. These areas will be assessed to account for demographic
changes in the composition of the population over time. or comparable geographic area that satisfies the following criteria, which may be further defined in rule by the board after consultation with the commission on African American affairs and other agencies, commissions, and community members as determined by the board:
     (i) The area has a high poverty rate;
     (ii) The area has a high rate of participation in income-based federal or state programs;
     (iii) The area has a high rate of unemployment; and
     (iv) The area has a high rate of arrest, conviction, or incarceration related to the sale, possession, use, cultivation, manufacture, or transport of cannabis.

Do you agree with this definition?

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i We adjusted the number you entered based on the slider’s scale.

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* 15. Do you have any comments on the definition of "disproportionately impacted"?

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* 16. Do you agree with the qualification requirements for a social equity applicant? 

Sec. 2. RCW 69.50.331 is amended to read as follows:

     (b) "Social equity applicant" means an applicant:
     (i) An applicant who has at least fifty-one percent ownership and control by one or more individuals who meet at least two of the following qualifications: have resided in a disproportionately impacted area for a period of time defined in rule by the board after consultation with the commission on African American affairs and other commissions, agencies, and community members as determined by the board;
     (ii) An applicant who has at least fifty-one percent ownership and control by at least one individual who has been convicted of a cannabis offense, a drug offense, or is a family member of such an individual; or
     (iii) An applicant who meets criteria defined in rule by the board after consultation with the commission on African American affairs and other commissions, agencies, and community members as determined by the board.
     (i) Lived in a disproportionately impacted area in Washington state for a minimum of five years between 1980 and 2010;
     (ii) Has been arrested or convicted of a cannabis offense or has a family member who has been arrested or convicted of a cannabis offense; and
     (iii) Had a household income in the year prior to submitting an application under this section that was less than the median household income within the state of Washington as calculated by the United States census bureau.

Do you agree with this definition?

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* 17. Do you have any comments on the definition of "social equity applicant"?

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* 18.
Link to Summary
Link to Draft Bill
Any additional comments on this bill?

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* 19. THC Regulation

Bill Summary: “This proposal aims to better define products containing any type of THC, whether from hemp or cannabis, and create age restrictions for products defined as cannabis. The proposal also aims to provide clarity to businesses in the open market on what products are legal to sell.”

Do you think LCB should be requesting legislation to address this issue?

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* 20. This bill redefines THC to include all forms of THC (and HHC) including those made from hemp.

Sec. 1. RCW 15.140.020 is amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (7) "Hemp" means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent THC on a dry weight basis during the growing cycle through harvest.
     (8) “Hemp consumable” means a product that is not a cannabis product, as defined in RCW 69.50.101, and is intended to be consumed or absorbed inside the body by any means including, inhalation, ingestion or insertion that is sold or provided to another person with a THC concentration of not more than:
     (a) 1 mg THC per unit, as defined in RCW 69.50.101; and
     (b) 3 mg THC in a package of product, as defined in RCW 69.50.101.


Do you agree with this definition?

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* 21. This bill ads additional language to the definition of "Cannabis". 

Sec. 2. RCW 69.50.101 is amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

     (d) "Cannabis" means all parts of the plant Cannabis sativa L Cannabis,whether growing or not, wwith a THC concentration greater than 0.3 percent on a dry weight basis during the growing cycle through harvest, and usable cannabis as defined in (yy); the term does not include hemp or industrial hemp as defined in RCW 15.140.020, or seeds used for licensed hemp production under chapter 15.140 RCW. the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. The term does not include:
     (1) The mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination; or
   (2) Hemp or industrial hemp as defined in RCW 15.140.020, seeds used for licensed hemp production under chapter 15.140 RCW.

Do you agree or disagree with this definition?

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* 22. Do you have any additional comments about the definition of "Cannabis"?

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* 23. Q: The bill adds details to the definition of “Cannabis products”.  This bill requires a valid cannabis license to sell THC products exceeding 1 mg/unit or 3 mg/package effectively bringing all hemp derived THC products into the 502 system.

Sec. 2. RCW 69.50.101 is amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (h) "Cannabis products" means useable cannabis, cannabis concentrates, and cannabis-infused products as defined in this section, including any product intended to be consumed or absorbed inside the body by any means including, inhalation, ingestion, or insertion, with a THC concentration of more than:
     (1) 1 mg THC per unit, as defined in (xx); and
     (2) 3 mg THC in a package of product, as defined in (jj).
     (3) The term does not include Cannabis health and beauty aids as defined in RCW 69.50.575.
     (4) The term does not include hemp consumables as defined in RCW 15.140.020.

Do you agree with this definition?

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* 24. Should the above definition include manufacturing and distribution?

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* 25. Would you prefer a system that allows hemp flower from only US sources and requires all extraction and potential synthesization to occur in the 502 system?

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* 26. The bill redefines "THC Concentration" to include edibles.

Sec. 2. RCW 69.50.101 is amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

     (uuvv) "THC concentration" means percent of delta-9 tetrahydrocannabinol content, including any hydrogenated or structural isomer forms of THC, per dry weight of any part of the plant Cannabis, or per volume or weight of cannabis product, or the combined percent of delta-9 tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant Cannabis regardless of moisture content.

Do you agree with this definition?

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* 27. Do you have any additional comments about the definition of "THC concentration"?

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* 28. This bill ads additional labeling requirements for synthetically derived CBD present in a product.

Sec. 4. RCW 69.50.346 is amended to read as follows:
     (1) The label on a cannabis product containerpackage, including cannabis concentrates, useable cannabis, or cannabis-infused products, sold at retail must include:
     (a) The business or trade name and Washington state unified business identifier number of the cannabis producer and processor;
     (b) The lot numbers of the product;
     (c) The THC concentration and CBD concentration of the product;
     (d) The amount of any synthetically derived CBD in the product sold or provided to the ultimate user.

Do you agree with this addition?

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* 29. Do you have any additional comments about the new proposed packaging and labeling requirements?

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* 30. The proposed law clearly establishes a license is required for any manufacturing, sales, and distribution of cannabis, with the newly established thresholds in definitions. This is designed to create clarity for local law enforcement for addressing illegal manufacturing, sales and distribution.

Sec. 5. NEW SECTION A new section is added to Chapter 69.50 RCW to read as follows:
Except as otherwise provided in this chapter, no person may manufacture, sell or distribute cannabis, cannabis concentrates, useable cannabis, or cannabis-infused products, or any cannabis products without a valid license issued by the board or pharmacy quality assurance commission. Any person performing any act requiring a license under this title, without having in force an appropriate and valid license issued to the person, is in violation of this chapter.

Do you agree with this requirement?

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* 31. Do you have any additional comments on this new requirement?

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* 32.
Link to Summary
Link to Draft Bill
Do you have any additional comments on this bill?

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* 33. All responses are kept confidential and will not be shared with anyone outside of TCA staff.

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* 34. Are you a member of The Cannabis Alliance?

0 of 34 answered
 

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