(1) A licensed cannabis producer and a licensed cannabis processor may sell cannabis waste to a person not licensed under this chapter if:

(a) The cannabis waste would not be designated as dangerous or hazardous waste under:

(i) Chapter 70A.300 RCW and rules adopted under that chapter; and

(ii) Cannabis waste disposal rules adopted by the board;

(b) The licensee notifies the board and the Washington state department of agriculture before the sale. Such notice must include information about the quantity and sale price of cannabis waste transferred and the name of the person or entity that purchased the cannabis waste; and

(c) The licensee makes all sales available to the public on an equal and nondiscriminatory basis.

(2) Cannabis waste not sold in accordance with subsection (1) of this section and not designated as dangerous or hazardous waste under chapter 70A.300 RCW, rules adopted pursuant to that chapter, or cannabis waste disposal rules adopted by the board must be rendered unusable before leaving a licensed producer, processor, or laboratory.

(3) For the purposes of this section, "cannabis waste" means solid waste generated during cannabis production or processing that has a THC concentration of 0.3 percent or less. "Cannabis waste" does not include "hemp" or "industrial hemp" as those terms are defined in RCW 15.140.020.

(4) Nothing in this chapter prohibits producers or processors from selling cannabis waste to a person not licensed under this chapter if such transfer is pursuant to the requirements of this section.

(5) The board may adopt rules necessary to implement this section.