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Proposal would move cannabis production and testing licensing to Department of Agriculture; agencies disagree on timing and costs
Summary
House Bill 1067 would transfer licensing and regulation of cannabis production, processing and testing from the Liquor and Cannabis Board to the Washington State Department of Agriculture. Proponents said agriculture is the appropriate home for cultivation oversight; the Liquor and Cannabis Board and WSDA flagged federal legality, implementation,
Representative Christine Reeves on Friday sponsored House Bill 1067, a proposal to transfer licensing and regulatory authority for cannabis production, processing and testing from the Liquor and Cannabis Board (LCB) to the Washington State Department of Agriculture (WSDA).
Committee staff summarized the bill’s scope: it would move LCB powers, duties and records related to production, processing and testing to WSDA; transfer relevant appropriations on July 1, 2026; and continue pending LCB rules and enforcement actions while WSDA stood up the program. The bill would take effect July 1, 2025 with a phased transfer of resources and licensing authorities over the following year.
Sponsor Christine Reeves said the transfer would align cannabis cultivation with other agricultural regulation and argued WSDA’s commodity‑focused approach could create efficiencies. "The Department of Agriculture does a very effective job at regulating grapes for wine, potatoes for vodka, hops for beer," Reeves said, framing the change as a fit with other crop regulation.
The Liquor and Cannabis Board opposed immediate transfer, citing structural impediments including federal illegality of cannabis and statutory distinctions that treat cannabis differently from other agricultural products. Mark Webster of LCB warned that some contractors and federal funding arrangements used by WSDA might be affected if WSDA assumed broader cannabis responsibilities. "There are some pretty big structural impediments in the way," Webster said.
WSDA staff welcomed conversations but flagged implementation timeline and cost concerns. Kelly McClain, assistant director and cannabis policy adviser at WSDA, told the committee standing up a new program would be expensive and operationally difficult on the bill’s proposed timetable; preliminary estimates cited in the hearing suggested first‑year costs around $10 million and multi‑year costs approaching $30 million, with ongoing biennial costs of roughly $13.4 million. WSDA also cautioned about potential risks to federal delegated programs if the agency assumed expanded cannabis regulation while the substance remains federally controlled.
Industry groups and craft producers broadly supported the transfer in testimony, saying agriculture expertise better matches cultivation issues and can help prepare for possible future federal legalization. Equity and industry advocates urged placing cultivation and processing with an agency that focuses on agricultural supports and technical assistance.
The committee took no final action. Members pressed agencies on traceability, implementation timing, and the legal relationship between state regulation and federal funding; staff and stakeholders were asked to provide follow‑up details and cost information.
