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Liquor and Cannabis Board files CR 102 to clarify cannabis trade payments, approves one‑day check rule
Summary
The board approved filing a CR 102 to amend WAC 314‑55‑1115 to clarify permitted payment methods between cannabis licensees, including checks, with purchase‑order and recordkeeping requirements and a one‑business‑day mailing limit post‑delivery; public comment period runs through the Sept. 11 hearing.
The Washington State Liquor and Cannabis Board on July 31 approved staff’s request to file a CR 102 to clarify how licensed cannabis businesses may pay each other, including use of checks.
Daniel Jacobs, presenting the proposal, said the rulemaking would amend WAC 314‑55‑1115 to list acceptable payment methods and to align the timeline and recordkeeping requirements for checks with other payment methods. He said the board intends a purchase order or irrevocable invoice be created at the time of sale, that the seller must receive mailed checks no later than the next business day after cannabis delivery, and that checks be deposited within five business days after delivery. Jacobs said the change responds to a petition the board accepted in March 2023 and that survey respondents—mostly manufacturers—generally supported the clarification while expressing concerns about NSF (insufficient funds) checks, a matter already addressed in existing WAC language.
The CR 102 establishes the rulemaking schedule: a public comment period open until a public hearing planned for Sept. 11, 2024, with final rules expected to be filed Sept. 25 and effective Oct. 26 if no further changes are made. Jacobs noted that WAC 314‑55‑1115 already requires licensees to correct NSF issues by 3 p.m. on the business day after notification or risk enforcement for an impermissible extension of credit.
Board members voiced support for the proposal. The board moved and seconded the recommendation and approved the CR 102 without a roll‑call vote.
The board’s action does not immediately change compliance obligations; it authorizes the agency to begin formal rulemaking and public outreach under the CR 102 process.
