You can watch the Washington Cannabusiness Association’s complete pre-legislative session briefing in the video below:
The following is from the Washington Cannabusiness Association’s release with its list of legislative priorities for 2023:
The Washington Cannabusiness Association (WACA) engages each year in a process focusing WACA’s attention for the
upcoming legislative session.
Defer Unused Producer Licenses and Open Access to Capital
Of the thirty-eight states with some form of regulated cannabis system, only Washington and Alaska restrict investment to
in-state residents – a barrier not faced anywhere else in the country. For the sixth year, WACA supports easing
restrictions on capital investment for local businesses in order to facilitate opportunities for licensees to manage their
business with the same tools as every other industry, and in every other legal cannabis marketplace in the lower 48.
Hand-in-hand with access to capital, which is long overdue, is the necessity to uphold limits on producer (grower) licenses
to ensure that enough product is grown to support the Washington State market, but not to overwhelm it. When
Washington finally joins its peers in acknowledging the importance and normalcy of investment, it can do so and still
protect local businesses and the sector by ensuring that hundreds of long-dormant producer licenses cannot suddenly be
snapped up and unleashed. This would be a real threat to Washington-based licensees, as access to capital represents
progress empowering Washington-based businesses with meaningful economic opportunity. However, out-of-state
resources uncoupled from limitations on unused producer licenses would upend the local market. Until there is an easing
of federal restrictions that allows interstate commerce, it is important to defer unused producer licenses so that local
cannabis growers remain viable.
Respect Consumer Preference for LOW THC Products
Retailers are currently limited in the amount of product that they can sell in a single transaction. Limits established in I-502
were aimed at smokable products (e.g. joints), and mirrored rules of the Controlled Substances Act. As regulated product
offerings have evolved to include THC-infused beverages, fluid ounce limitations prevent development of low THC options
because the THC:beverage ratio is held in place by rules that don’t reflect the variety and formulation of what is actually
available. Today, adult consumers can precisely determine the amount of THC they prefer – including when that is a low
amount. WACA supports updating the law to respect consumer preferences and will work to update transaction limits to
allow the sale of low THC beverages.
Consistent Compliance, Local Control
Under state law (RCW 69.50.369 Sec (2)) regulated cannabis businesses are limited to a total of two signs (maximum
1600 sq. inches) that are permanently affixed to a building or other structure on the licensed premises. While wellintended, inconsistent enforcement across the state is an unnecessary challenge for the industry and the regulator alike.
WACA supports legislation that would remove this state regulatory condition and instead defer to local laws and
requirements when it comes to basic signage.
Forensic Accounting in Traceability Data
The entirety of the regulated market agrees that the illicit market is a significant hurdle when it comes to public safety, the
stability of the legal marketplace, and the ongoing stigma on cannabis. WACA supports the allocation of resources for
increased enforcement dedicated specifically to forensic-like evaluation of traceability data submitted to the Washington
State Liquor Cannabis Board (WSLCB), as well as the formation of a multi-agency task force to share information,
realistically determine the breadth of illicit activity and develop collaborative solutions.
Evaluate Industry Sustainability
As a closed market, cannabis license-holders are limited to selling their products within Washington and other than normal
population growth, market demand is limited. WACA supports legislation requiring the LCB to conduct a sustainability
review for presentation to the legislature that prior to the legislature authorizing additional licenses. Relatedly, state
legislators should reaffirm their authority to issue additional licenses, when/if appropriate.
Cannabis as a Crop, not a Crime
The cannabis plant, and cultivation of cannabis, is an agricultural activity drawing on the expertise of farmers and
agricultural engineers. As with other agricultural crops the regulation of cannabis cultivation should draw upon the
expertise of the Washington State Department of Agriculture (WSDA). WACA supports legislation to create a task force
charged with making recommendations on transitioning the regulation of cannabis production to the WSDA.
Normalize Transactions with Net Terms
Currently every business to business transaction in cannabis is cash-on-delivery. In addition to the challenges created by
the necessity of large amounts of cash on hand for payments, the lack of options for normal transactions between
businesses upholds a dated stigma on a heavily regulated industry. WACA supports legislation allowing for limited net
terms (no more than 15 days) on transactions between producers, processors, and retailers to provide flexibility to small
businesses managing cash flow that would help streamline and make accounting procedures more accurate.
Environmental considerations in cannabis: Incentives for Green Packaging
Environmental considerations are a part of large swaths of policymaking, cannabis is no exception. WACA supports both
rulemaking and legislation that would create incentives for producers and processors that use green packaging.
Environmental considerations in cannabis: Reuse Cannabis Plant Waste
Understandable concerns that plant waste containing THC must be tightly controlled underlies current requirements that
all plant waste be destroyed. For plant waste that does not contain THC (stems, plant material left after processing)
WACA supports rulemaking and legislation that would allow licensees to sell plant waste outside of the regulated system
for reuse in products like rope, fabric, and other commodities. Additionally, WACA supports allowing plant waste to be
disposed of or composted consistent with local jurisdiction solid waste regulations.
10-Year Check-Up: Regulatory System Updates
WACA will collaborate with elected officials and the WSLCB to ensure the regulatory framework reflects the maturity of
the industry and streamlines regulatory oversight and business processes.
