WSR 26-11-024

PREPROPOSAL STATEMENT OF INQUIRY

LIQUOR AND CANNABIS

BOARD

[Filed May 14, 2026, 12:12 p.m.]

Subject of Possible Rule Making: Chapter 314-55 WAC. The liquor and cannabis board (LCB) is considering repealing, amending, and creating rules in chapter 314-55 WAC as necessary to implement EHB 1941 (chapter 218, Laws of 2026), to allow licensed cannabis producers to form agricultural cooperatives or associations made of up to three cannabis producer licenses per association.

Statutes Authorizing the Agency to Adopt Rules on this Subject: EHB 1941 (chapter 218, Laws of 2026), RCW 69.50.325, and 69.50.342.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rules on this subject may be needed to implement EHB 1941 which will allow licensed cannabis producers and processors to form agricultural associations or cooperatives. Many other producers of agricultural products have historically formed cooperatives to streamline business operation and increase efficiency.

EHB 1941 allows cannabis producers to form cooperatives or associations of up to three producer licenses per cooperative or association to process, handle, and market their products just as other producers of agricultural products do under RCW 24.34.010. EHB 1941 also amends RCW 24.34.010 to include cannabis as an agricultural product for the purposes of forming cooperatives and associations.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Washington state department of agriculture (WSDA); LCB will coordinate as necessary to provide WSDA the opportunity to discuss and review draft rules, provide feedback, and attend related meetings prior to proposal and adoption of rules.

Process for Developing New Rule: Negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Jeff Kildahl, Rules Coordinator, P.O. Box 43080, Olympia, WA 98504, phone 360-480-7960, fax 360-704-5027, email rules@lcb.wa.gov, website lcb.wa.gov.

May 14, 2026

Justin Nordhorn, Director

Policy and External Affairs