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Rules team previews rulemaking, petitions and CR filings ahead of June board meeting
Summary
LCB policy staff told the caucus the rules team has 14 active projects, including a CR‑101 filed May 14 for House Bill 1941 (agricultural cannabis cooperatives), pending CR‑103 advertising rules for Senate Bill 5206 to be filed if approved at tomorrow’s board meeting, and five petitions from Green Seed requesting changes to traceability and CCRS requirements.
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The Liquor and Cannabis Board caucus received a detailed update on rulemaking and recent petitions on June 2 as staff prepared for the full board meeting the following day. Kevin from the policy and rules team said the office currently manages 14 active rules projects and recently filed a CR‑101 on May 14 to begin rulemaking to implement Engrossed House Bill 1941, which would allow up to three cannabis producers to form agricultural cooperatives to process, handle and market products collectively; the informal comment period runs through July 3.
Kevin said the rules team is also working on cannabis retail management agreements to implement Senate Bill 5403 and is coordinating with the Department of Health and Department of Agriculture, which have signaled upcoming CR‑102 filings affecting cannabis labs. He noted stakeholder feedback and analysis are ongoing for several rule packages and that a cost‑benefit analysis for a retail alcohol product‑placement rule is on schedule for month‑end review.
Jeff from the director’s office previewed a request that will go to the board at the June meeting to file the permanent‑rule CR‑103 package implementing Engrossed Senate Bill 5206, which would expand advertising options for retail cannabis licensees (allowing multiple exterior signs and trade‑name signs subject to local regulation, while barring depictions associating cannabis with alcohol, nicotine, tobacco or motor vehicles). Jeff said the public hearing produced no testimony but that late stakeholder comments led the director’s office to adapt parts of the proposed rules; if the board approves the filing tomorrow, the office would submit the permanent rules to the Office of the Code Reviser with an effective date targeted for July 4.
Jeff also previewed five petitions from Amy Deluge, owner of Green Seed in Moses Lake, filed between April 29 and May 20, 2026. The petitions ask (1) for independent third‑party review of some agency interactions with licensees in specified situations; (2) amendments to WAC 3‑14‑55‑83 to require formal declaratory statements and written disclosures about CCRS limitations; (3) emergency rulemaking to align CCRS with federal compliance and traceability expectations; (4) emergency and permanent rules establishing enforceable operational verification standards for traceability and supply‑chain reporting; and (5) emergency rulemaking to protect seed‑to‑sale accountability and market integrity. Jeff said the director’s office will present analyses and recommendations on each petition at the board meeting.
Kevin noted that contract‑kitchen rules implementing Engrossed House Bill 1602 were adopted last month and will take effect on Saturday, June 6. The caucus asked no substantive questions and deferred detailed consideration to the full board meeting.
No formal votes were taken during the caucus; staff flagged several agenda items for board action at the June meeting, including the possible filing of the CR‑103 package for SB 5206 and recommendations on the Green Seed petitions.
