Read first time 02/18/19.Referred to Committee on Commerce & Gaming.

AN ACT Relating to auditing the marijuana traceability system; adding a new section to chapter 69.50 RCW; and providing an expiration date.

NEW SECTION. Sec. 1. A new section is added to chapter 69.50 RCW to read as follows:

(1) The state auditor, in consultation with the liquor and cannabis board, shall audit and produce a report on the marijuana traceability system. The report required under this subsection must include the following information, broken down into monthly periods beginning for April 2017 and continuing until the date the report is prepared:

(a) The amount of useable marijuana produced by licensed marijuana producers;

(b) The amount of useable marijuana sold by licensed marijuana retailers;

(c) The amount of marijuana concentrates processed or manufactured by licensed marijuana processors, and the amount of marijuana concentrates sold by licensed marijuana retailers;

(d) The number of plants, immature plants, or clones that are planted or started by licensed marijuana producers;

(e) The number of plants harvested by licensed marijuana producers;

(f) The number of plants, immature plants, and clones lost or otherwise unaccounted for in the marijuana traceability system;

(g) The amount of marijuana products lost or otherwise unaccounted for in the marijuana traceability system;

(h) Sales of marijuana products that are determined to be medically compliant by the department of health under chapter 69.51A RCW, in terms of units sold and the dollar value of such marijuana products sold per month; and

(i) The average retail dollar value per gram of useable marijuana sold by marijuana retailers.

(2) In addition to the report described in subsection (1) of this section, the state auditor and the liquor and cannabis board must prepare a report describing the capabilities and functions of the marijuana traceability system. The report required under this subsection must:

(a) Compare the capabilities and functions of the marijuana traceability system as provided in the contract between the state and the vendor, relative to the capabilities and functions of the marijuana traceability system in practice; and

(b) Detail any deficiencies or additional capabilities or functions of the marijuana traceability system provided or operated by the vendor, as compared to the capabilities and functions of the marijuana traceability system described in the state and vendor's contract.

(3) The two reports required under this section must be submitted to the appropriate committees of the legislature by January 10, 2020.

(4) For purposes of this section the term "marijuana traceability system" means the software program, product, and services provided to the state by the vendor the liquor and cannabis board has contracted with in order to track marijuana from seed to sale under this chapter.