General Information.
The Washington State Liquor and Cannabis Board (LCB) licenses and regulates cannabis producers, processors, and retailers through the legal framework created by Initiative 502 (2012) and subsequent legislation. In creating the legal structure for adult-use cannabis, Initiative 502 added several cannabis-related definitions to the Uniform Controlled Substances Act, including defining the term "marijuana" in part by reference to the percent of delta-9 tetrahydrocannabinol content. However, delta-9 tetrahydrocannabinol (THC) is only one of many cannabinoids that are found within the plant Cannabis. The emergence of new products containing cannabinoids that may be impairing, other than delta-9 THC, has raised questions nationwide about the legality and possible health impacts of these new products.
The 2018 Federal Farm Bill Legalizing Hemp.
In 2018, hemp became federally legal pursuant to the federal Agriculture Improvement Act of 2018. The law removed hemp from the federal Controlled Substances Act, declared hemp a legal commodity, and authorized state and tribal hemp programs. Federal law defines "hemp" as 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 THC concentration of not more than 0.3 percent on a dry weight basis.
Definitions in the Uniform Controlled Substances Act.
The following definitions currently apply in the Uniform Controlled Substances Act:
Cannabinoid Additives in Regulated Cannabis Products.
A 2018 law authorizes licensed cannabis producers and processors to use a cannabidiol (CBD) product as an additive for the purpose of enhancing the CBD concentration of a product. Such a CBD product must be lawfully produced by, or purchased from, a licensed cannabis producer or processor, or may be obtained from an unlicensed source provided the CBD product has a THC level of 0.3 percent or less on a dry weight basis and has been tested for contaminants and toxins by an accredited testing laboratory. The LCB has rule-making authority to adopt rules pertaining to laboratory testing and product safety standards for CBD products used by licensed producers and processors.
Synthetic Cannabinoids.
Pursuant to a 2015 law, it is an unfair or deceptive practice and a violation of the State Consumer Protection Act to distribute, dispense, manufacture, display for sale, offer for sale, attempt to sell, or sell to a purchaser any product that contains any amount of any synthetic cannabinoid. For purposes of this prohibition, the term "synthetic cannabinoid" includes synthetic equivalents of tetrahydrocannabinols and related chemical compounds listed in Schedule 1 of the Uniform Controlled Substances Act as well as any chemical compound identified by the Pharmacy Quality Assurance Commission.
New and Amended Definitions in the Uniform Controlled Substances Act.
The following new definitions are added to the Uniform Controlled Substances Act:
The following definitions in the Uniform Controlled Substances Act are amended:
Sales Restrictions on Certain Cannabinoid Products.
Products containing or consisting of cannabinoids produced and processed for any type of consumption into a human body, whether marketed as such or not, exceeding 0.3 percent THC on a dry weight basis, that contain more than 0.5 milligrams per serving or 2 milligrams total in the packaged product of a cannabinoid that may be impairing, may only be sold by a marijuana producer, marijuana processor, or marijuana retailer licensed by the Washington State Liquor and Cannabis Board (LCB). An exception is included for any product authorized as a drug by the federal Food and Drug Administration (FDA).
All products containing cannabinoids that may be impairing, as well as cannabinoid products marketed as having impairing effects, are expressly within the regulatory authority of the LCB, unless a product is authorized as a drug by the FDA. Products meeting any of the following criteria may only be sold if the sale is in compliance with rules adopted by the LCB after consultation with Department of Health and the Department of Agriculture: (1) products containing cannabinoids that may be impairing; (2) products that contain greater than 0.3 percent THC on a dry weight basis; and (3) products that contain 0.5 or more milligrams per serving or 2 or more milligrams total in the packaged product of any cannabinoid that may be impairing.
It is provided that selling any of these types of products to a person under age 21 is prohibited, except in compliance with the Washington State Medical Use of Cannabis Act.
Exceptions to the new restrictions on selling certain cannabinoid products are provided for delta-9 THC products approved by the LCB prior to January 1, 2022, as well as for cannabis health and beauty aids.
Manufacturing and sales of artificial cannabinoids are prohibited.
Cannabis Licensing.
The marijuana producer license is amended to specify the production activity authorized is for producing, preparing, and propagating marijuana grown from seeds or clones of natural origin.
The marijuana processor license is amended to specify the processing activity authorized is for marijuana from the plant Cannabis of natural origin grown by a licensed producer, unless sourced and used as an additive in accordance with law. Additionally, authorized activities also include compounding or converting marijuana products from marijuana grown by a licensed marijuana producer and preparing marijuana products, which contain greater than 0.5 milligrams per serving of a cannabinoid that may be impairing, for sale at wholesale.
The marijuana retailer license is amended to authorize the sale of other products containing greater than 0.5 milligrams per serving of a cannabinoid that may be impairing.
Cannabinoid Additives in Regulated Cannabis Products.
The 2018 law authorizing cannabis producers and processors to use a CBD product as an additive for enhancing the CBD concentration of a product is amended to also authorize the use of other non-impairing cannabinoids, or non-impairing plant Cannabis isolates, as additives for the purpose of enhancing the non-impairing cannabinoid concentration of a product. Such cannabinoids products or isolates must be lawfully produced by a licensed marijuana producer or sourced as described next.
For the sole purpose of enhancing the non-impairing cannabinoid concentration of an authorized product, licensed producers and processors may use a CBD or other non-impairing cannabinoid product obtained from an unlicensed source, provided the CBD or other non-impairing cannabinoid product meets the following requirements:
The rulemaking authority of the LCB related to CBD additives is expanded and expressly includes authority for rules pertaining to laboratory testing and products safety standards for naturally and synthetically derived CBD or other non-impairing cannabinoid products used by licensed producers and processors.
Any synthetically derived cannabinoid used by licensed producers and processors in the manufacture of marijuana products marketed by licensed retailers must be in compliance with rules adopted by the LCB, prior to manufacturing and sale to other licensees. Rulemaking by the LCB pertaining to any synthetically derived cannabinoid must be in consultation with the Department of Health and the Department of Agriculture.
Licensed marijuana producers and processors may not use any artificial cannabinoids as an additive to any product authorized for production, processing, and sale in cannabis market. Licensed marijuana producers and processors must disclose on packaging and labeling all synthetically derived cannabinoids contained in products, and may not make any statements or claims on packaging, labeling, or advertising, indicating those cannabinoids are a natural substance.
Additional Grant of Rulemaking Authority to the LCB.
The LCB is granted new rulemaking authority to adopt rules on the production, processing, transportation, delivery, sale, and purchase of naturally derived cannabinoids or synthetically derived cannabinoids, with the exception of hemp and products authorized as a drug by the FDA.
Criminal and Civil Liability Protection.
The protection from criminal and civil liability that applies to licensed marijuana processors and their employees when in compliance with law and rules is expanded to also provide protection to licensed processors and their employees for the activities of compounding or converting marijuana products from marijuana grown by a licensed marijuana producer, as specified by the LCB by rule.