WSR 22-08-038

PROPOSED RULES

LIQUOR AND CANNABIS

BOARD

[Filed March 30, 2022, 10:42 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 22-04-116.

Title of Rule and Other Identifying Information: WAC 314-55-108 Pesticide action levels. The Washington state liquor and cannabis board (WSLCB) proposes amendments to WAC 314-55-108 to update information related to pesticide action level testing of cannabis products.

Hearing Location(s): On May 11, 2022, at 10:00 a.m. In response to the coronavirus disease 2019 (COVID-19) public health emergency, the board will not provide a physical location for this hearing to promote social distancing and the safety of the citizens of Washington state. A virtual public hearing, without a physical meeting space, will be held instead. Board members, presenters, and staff will all participate remotely. The public may log in using a computer or device, or call-in using a phone, to listen to the meeting through the Microsoft Teams application. The public may provide verbal comments during the specified public comment and rules hearing segments. For more information about board meetings, please visit https://lcb.wa.gov/Boardmeetings/Board_meetings.

Date of Intended Adoption: Not earlier than May 25, 2022.

Submit Written Comments to: Jeff Kildahl, 1025 Union Avenue S.E., Olympia, WA 98501, email rules@lcb.wa.gov, fax 360-664-9689, by May 11, 2022.

Assistance for Persons with Disabilities: Contact Anita Bingham, ADA coordinator, human resources, phone 360-664-1739, fax 360-664-9689, TTY 711 or 1-800-833-6388, email anita.bingham@lcb.wa.gov, by May 4, 2022.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the proposed rule amendments is to update technical chemical isomer information contained in WAC 314-55-108 for some types of pesticides included in cannabis quality control testing, and to clarify the number of significant digits testing laboratories [that] are expected to use for reporting numerical pesticide testing results.

Rule amendments are also needed to ensure consistency with WAC 314-55-102 concerning remediation of marijuana products that have failed quality control testing, remove redundant rule language contained both in the existing subsections (4) and (5), and to update the term "quality assurance testing" to "quality control testing."

Reasons Supporting Proposal: The proposed rule updates will help to protect public health and safety by keeping marijuana pesticide action level information and marijuana remediation guidelines current and up-to-date. These changes are needed to ensure consistency with the amendments to marijuana quality control testing rules in WAC 314-44-101, 314-55-102, and 314-55-1025 that were permanently adopted as WSR 22-06-097 on March 2, 2022.

Statutory Authority for Adoption: RCW 69.50.345 and 69.50.348.

Statute Being Implemented: RCW 69.50.345 and 69.50.348.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: WSLCB, governmental.

Name of Agency Personnel Responsible for Drafting: Jeff Kildahl, Policy and Rules Coordinator, 1025 Union Avenue S.E., Olympia, WA 98501, 360-664-1781; Implementation: Kendra Hodgson, Marijuana Examiners Unit Manager, 1025 Union Avenue S.E., Olympia, WA 98501, 360-664-4555; and Enforcement: Chandra Brady, Director of Enforcement and Education, 1025 Union Avenue S.E., Olympia, WA 98501, 360-664-1726.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. The subject of the proposed rule making does not qualify as a significant legislative rule or other rule requiring a cost-benefit analysis under RCW 34.05.328 (5)(c).

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.82.025(4).

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. Agencies are required to consider costs imposed on business and costs associated with compliance with proposed rules. Agencies are not required under chapter 19.85 RCW to consider indirect costs not associated with compliance. Here, the agency considered potential administrative costs that a licensee may incur complying with the proposed rules.

WSLCB applied the North American Industry Classification System (NAICS) codes 453998 for marijuana stores, both medicinal and recreational, 424590 for marijuana processors, 111998 for outdoor marijuana growers, and 111419 for indoor marijuana growers. The industry descriptions for each of these codes is presented in the table below, and can be accessed at https://www.census.gov/library/publications/2017/econ/2017-naics-manual.html.

WSLCB applied a default cost when analyzing whether the rules would have a disproportionate impact on small businesses as defined in RCW 19.85.020(3). This reflects four hours of administrative time at $50 per hour, for a total of $200. The agency assumes this activity would include activities such as completing and submitting forms to WSLCB and phone calls.

As the table demonstrates, the estimated cost of compliance does not exceed the thresholds for any of the license types. Therefore, implementation of these rules are not anticipated to result in more-than-minor costs on businesses as defined in RCW 19.85.020(2).

March 30, 2022

David Postman

Chair

OTS-3688.2