[Filed April 23, 2025, 10:36 a.m.]

Supplemental Notice to WSR 25-03-081.

Preproposal statement of inquiry was filed as WSR 24-06-026.

Title of Rule and Other Identifying Information: Rule making to revise WAC 314-55-015 General information about cannabis licenses.

The proposed rule language amends WAC 314-55-015 to allow persons under 21 years of age (minors) on the licensed premises of cannabis producers and processors provided certain conditions are met. The proposed rule language allows two groups of minors on the licensed premises: 1. Children and grandchildren of licensees who are under 16 years of age, and 2. employees of licensed or registered contractors who are between the ages of 18 and 20 years. This rule making is the result of rule-making petitions accepted by the Washington state liquor and cannabis [board] (LCB) in 2022. One of these petitions sought to make permanent an LCB temporary COVID[-19] allowance put in place to accommodate licensees during school and childcare closures. Statute does not prohibit persons under 21 years of age on licensed premises of cannabis producers and processors, as it does under RCW 69.50.357 for licensed cannabis retailers.

Hearing Location(s): On June 5, 2025, at 10:00 a.m. Public hearings related to LCB rule-making activity will be held in a "hybrid" environment. This means that the public will have options for in-person or virtual attendance and for providing verbal comments during public rules hearings. A meeting room will be set up at headquarters building at 1025 Union Avenue, Olympia, WA 98504, for in-person attendance and the public may also log in using a computer or a device, or call in using a phone, to listen to the meeting through the Microsoft Teams application. Please note that although the meeting room will be staffed during the hearing, LCB staff may appear virtually.

LCB encourages those who would like to provide public comment to register in advance. Those who have not registered by 10:00 a.m. on the hearing date, or who arrive after the hearing has started, cannot be guaranteed the opportunity to speak.

For more information about providing verbal comments at rules public hearings, please visit https://lcb.wa.gov/laws/laws-and-rules.

Date of Intended Adoption: No earlier than June 18, 2025.

Submit Written Comments to: Denise Laflamme, P.O. Box 48030, Olympia, WA 98504-3080, email [email protected], fax 360-704-5027, beginning April 23, 2025, 12:00 p.m., by June 5, 2025, 12:00 p.m.

Assistance for Persons with Disabilities: Contact Anita Bingham, ADA coordinator, human resources, phone 360-664-1739, fax 360-664-9689, TTY 711 or 1-800-833-6388, email [email protected], by May 29, 2025.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of this proposed supplemental rule is to make the following changes to the proposed rules previously filed as WSR 25-03-081:

Included processor premises: Language was added to include processor premises as a location where children and grandchildren of licensees may be present.

Moved violation and penalty associated with subsection (3)(c): The language related to violations and penalties under WAC 314-55-522 associated with subsection (3)(c) has been moved to apply to all of subsection (3).

Added requirement for licensee to accompany and supervise child in areas where cannabis is present: Language in subsection (3)(a) was amended to indicate children and grandchildren of licensees may not enter or remain in areas where cannabis is present unless they are accompanied by and under the direct supervision of the licensee.

Moved requirement for direct supervision of child as part of subsection (3)(a): Language from subsections (3)(a) and (b) were combined to indicate children must be accompanied and supervised by the licensee if they are in areas where cannabis is present.

Removed violation and penalty associated with requirement that children or grandchildren not enter or remain in areas where cannabis is present: Removed violation and penalty (WAC 314-55-523) related to children being in areas where cannabis is present as language was added to allow children in these areas if accompanied and supervised by licensee.

Added requirement that licensee must be on premises when children are present: Language in subsection (3)(b) was amended to add requirement that licensees be on the licensed premises at all times while their child or grandchild is present.

Removed requirement for notifying LCB under subsection (3)(c): Removed subsection (3)(c) language requiring licensees to notify LCB prior to allowing any child or grandchild of the licensee to enter or remain on the licensed premises. This includes removing requirement for licensee to provide LCB information about when children may be present and their ages.

Added another option for supervision of employees of contractors: Additional requirement was added to include general contractor with supervisory authority to assure employees of subcontractors are supervised by someone at least 21 years of age.

Reasons Supporting Proposal: The reasons supporting these proposed rules, in addition to that described above, are identified in the two tables below. The first table below identifies the changes originally proposed to WAC 314-55-015 in WSR 25-03-081.

WAC 314-55-015 General information about cannabis licenses
Subsection	Existing Rule Language	Proposed New Language	Reason for change
(2)	No one under 21 years of age may enter or remain on a cannabis licensed premises except as provided in RCW 69.50.357.	Persons, as defined in RCW 69.50.101, who are under 21 years of age must not:	Replacing "may" with "must not" to clarify. Replacing "no one" with existing definition of person for consistency.
		(a) Enter or remain on the licensed premises of a cannabis licensee except as provided in RCW 69.50.357 or as provided in subsections (3) and (4) of this section.	This is added to indicate that two new subsections with exceptions are being added.
	N/A	(b) Possess any products associated with the production, processing, or sales of cannabis.	Adds language consistent with temporary COVID[-19] allowance.
	N/A	(b) Violations of this subsection are subject to the same penalties established for allowing persons under 21 years of age to frequent a retail licensed premises under WAC 314-55-525.	This is added to indicate what penalties apply for violations.
(3)	New: Conditions and requirements for allowing children and grandchildren of licensees on licensed premises.	Persons under the age of 16 who are children and grandchildren of licensees may enter or remain on the licensed premises of a cannabis producer, as provided in this subsection.	This is the same language included in the temporary COVID[-19] allowance.
		(a) The person does not enter or remain in areas where cannabis is present including, but not limited to, those areas where cannabis is grown, dried, cured, trimmed, processed in any manner, stored, or being prepared for shipment.	This is added to define restricted areas for children.
		(a) Violations of this subsection are subject to the same penalties established for failure to maintain required surveillance system under WAC 314-55-522.	This is added to indicate what penalties apply for violations.
		(b) The person is under the direct supervision of the licensee while on the premises.	This language is consistent with language in RCW 66.24.145 for children allowed on craft distilleries.
		(c) Prior to allowing any child or grandchild of the licensee to enter or remain on the licensed premises, the licensee must notify the enforcement and education division of LCB in writing that children may be on their licensed premises. Written notification to the enforcement and education division must indicate the day(s) of the week, times of the day, and age of the child(ren) that may be present.	This is added to describe LCB notification requirements to indicate when children may be present.
		(c) Violations of this subsection are subject to the same penalties established for an operating/floor plan violation under WAC 314-55-523.	This is added to indicate what penalties apply for violations.
(4)	New: Conditions and requirements for employees of contractors working on licensed premises.	A licensed producer or processor may allow a person under 21 years of age to enter or remain on the licensed premises under the conditions outlined in this subsection.	This is added to indicate applicable age for this subsection.
		(a) The person under 21 years of age is:	This is added to indicate application of conditions to persons under 21.
		(i) At least 18 years of age.	Consistent with ages included in WAC 314-11-040 for employees under 21 years of age working on licensed liquor premises.
		(ii) Employed by a licensed plumbing contractor under chapter 18.106 RCW, or licensed electrical contractor under chapter 19.28 RCW, or a contractor registered with the Washington state department of labor and industries as required under chapters 18.27 RCW and 296-200A WAC.	These requirements were added to ensure employees worked for bona fide contractor businesses.
		(iii) On the licensed premises only during the course of their official employment providing contracted services to the licensee and does not remain on the premises any longer than is necessary to perform duties associated with their employment.	Consistent with WAC 314-11-040 for employees under 21 years of age working on licensed liquor premises.
		(iv) Accompanied by a supervisor at all times who is employed by the same licensed or registered contractor and who is at least 21 years of age.	This was added per supervision recommendations provided by Washington Department of Labor and Industries.
		(b) In addition to requirements under WAC 314-55-083, including wearing an identification badge while on the premises, licensees must record the following information about employees of contractors in the visitor log:	This is being added to clarify the requirement for visitor information.
		(i) If the employee is under 21 years of age; and	This is being added to aid LCB staff in identifying contractors on premises.
		(ii) The name of contractor business for whom employee is engaged in work while on the licensed premises.	This being added to aid LCB staff in identifying contractor businesses on premises.
(5) - (11)	WAC 314-55-015 (3) - (9) have been renumbered as WAC 314-55-015 (5) - (11)
(12)	N/A	Nothing in this section conflicts with RCW 9.41.300 as the entire premises remain classified as off-limits to persons under 21 years of age from the general public.	Clarifies that the entire premises remain off-limits to weapons pursuant to RCW 9.41.300

This second table indicates changes proposed to the original CR-102 proposed rule language in WSR 25-03-081 for the supplemental CR-102.

WAC 314-55-015 General information about cannabis licenses
Subsection	Proposed Rule (CR-102) WSR 25-03-081	Supplemental Proposed Rule (Supplemental CR-102)	Reason for change
(3)	Persons under the age of 16 who are children and grandchildren of licensees may enter or remain on the licensed premises of a cannabis producer, as provided in this subsection.	Persons under the age of 16 who are children or grandchildren of the licensees may enter or remain on the licensed premises of a cannabis producer or processor, as provided in this subsection.	Added cannabis processors to be consistent with original COVID allowance.
(3)	N/A	Violations of this subsection are subject to the same penalties established for failure to maintain required surveillance system under WAC 314-55-522.	Moved from under subsection (3)(a) indicating that this applies to all of subsection (3).
(3)(a)	The person does not enter or remain in areas where cannabis is present including, but not limited to, those areas where cannabis is grown, dried, cured, trimmed, processed in any manner, stored, or being prepared for shipment, unless accompanied by and under the direct supervision of the licensee. Violations of this subsection are subject to the same penalties established for failure to maintain required surveillance system under WAC 314-55-522.	The person does not enter or remain in areas where cannabis is present including, but not limited to, those areas where cannabis is grown, dried, cured, trimmed, processed in any manner, stored, or being prepared for shipment, unless accompanied by and under the direct supervision of the licensee.	Amended language to combine subsections (3)(a) and (b) to indicate children must be accompanied and supervised by licensees if they are in areas where cannabis is present.
(3)(b)	The person is under the direct supervision of the licensee while on the premises.	The licensee is on the licensed premises at all times while their child or grandchild is present.	Replaced requirement for licensees to supervise children with requirement that licensee is on licensed premises at all times when a child is present. Moved supervision requirement to subsection (3)(a) specific to when children are in areas where cannabis is present.
(3)(c)	Prior to allowing any child or grandchild of the licensee to enter or remain on the licensed premises, the licensee must notify the enforcement and education division of LCB in writing that children may be on their licensed premises. Written notification to the enforcement and education division must indicate the day(s) of the week, times of the day, and age of the child(ren) that may be present. Violations of this subsection are subject to the same penalties established for an operating/floor plan violation under WAC 314-55-523.	N/A	Removed requirement for licensees to notify LCB prior to having children on premises. This was removed based on comments from stakeholders as being burdensome and including potentially publicly available data about children.
(4)(a)(iv)	Accompanied by a supervisor who is employed by the same licensed or registered contractor who is at least 21 years of age.	Accompanied at all times by either: (A) A supervisor who is employed by the same licensed or registered contractor and who is at least 21 years of age; or (B) A general contractor with supervisory authority and control over the workplace who is at least 21 years of age.	Added language to clarify that subcontractors who are supervised by a general contractor that is at least 21 years of age is permitted on premises.

Statutory Authority for Adoption: RCW 69.50.342 and 69.50.345.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: LCB, governmental.

Name of Agency Personnel Responsible for Drafting: Denise Laflamme, Rules Coordinator, 1025 Union Avenue, Olympia, WA 98504, 360-819-0452; Implementation: Rebecca Smith, Director of Licensing, 1025 Union Avenue, Olympia, WA 98504, 360-664-1753; and Enforcement: Lawerence Grant, Director of Enforcement and Education, 1025 Union Avenue, Olympia, WA 98504, 360-974-9567.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. The proposed amended rules do not qualify as a type of rule requiring a cost-benefit analysis under RCW 34.05.328(5). LCB is not a listed agency under RCW 34.05.328 (5)(a)(i), so the cost-benefit analysis requirements in RCW 34.05.328 are not applicable to the proposed rules unless voluntarily applied or made applicable by the joint administrative rules review committee under RCW 34.05.328 (5)(a)(ii).

Scope of exemption for rule proposal from Regulatory Fairness Act requirements:

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed rule would impose a cost to small businesses if they became out of compliance under WAC 314-55-522, 314-55-523, or 314-55-525. Otherwise, no other costs to business are expected.

Using the North American Industry Classification System (NAICS) code 111419 for cannabis grown under cover, the United States (U.S.) Census NAICS describes this code for "This U.S. industry comprises establishments primarily engaged in growing food crops (except mushrooms) under glass or protective cover." The U.S. Census NAICS code description at https://www.census.gov/naics/?input=cannabis&year=2022&details=111419 identifies cannabis grown under cover as an example of a business that uses this code.

Using NAICS code 111918 for cannabis grown in an open field, the U.S. Census NAICS describes this code for "This U.S. industry comprises establishments primarily engaged in one of the following: (1) growing crops (except oilseeds and/or grains; vegetables and/or melons; fruits and/or tree nuts; greenhouse, nursery, and/or floriculture products; tobacco; cotton; sugarcane; hay; sugar beets; or peanuts); (2) growing a combination of crops (except a combination of oilseed(s) and grain(s); and a combination of fruit(s) and tree nut(s)) with no one crop or family of crops accounting for one-half of the establishment's agricultural production (i.e., value of crops for market); or (3) gathering tea or maple sap." The U.S. Census NAICS code description at https://www.census.gov/naics/?input=cannabis&year=2022&details=111998 identifies cannabis grown in an open field as an example of a business that uses this code.

Using NAICS code 424590 for cannabis merchant wholesalers, the U.S. Census NAICS describes this code for "This industry comprises establishments primarily engaged in the merchant wholesale distribution of farm products (except grain and field beans, livestock, raw milk, live poultry, and fresh fruits and vegetables)." The U.S. Census NAICS code description at https://www.census.gov/naics/?input=cannabis&year=2022&details=424590 identifies cannabis merchant wholesalers, as an example of a business that uses this code.

LCB estimates there would be no cost associated with implementing this rule except if a business is found to be out of compliance. Under RCW 34.05.110 (4)(a), an agency is not required to waive a fine or penalty to correct a violation if the violation presents a direct danger to the public health. Because violations under WAC 314-55-522 pertain to potential threats to public health, we applied an estimated compliance cost of $1,250 for a first violation when analyzing whether the rules would have a disproportionate impact on small businesses as defined in RCW 19.85.020(3).

The data below are provided by reference to the minor-cost threshold calculator provided by the office of regulatory innovation and assistance available at https://www.oria.wa.gov/Portals/_oria/VersionedDocuments/RFA/Regulatory_Fairness_Act/Minor-Cost-Threshold-Calculator.xlsx.

2022 Industry NAICS Code	Estimated Cost of Compliance	Industry Description	NAICS Code Title	Minor Cost Estimate	1% of Avg Annual Payroll (Threshold)	0.3% of Avg Annual Gross Business Income (Threshold)
111419	$1250.00	Cannabis, grown under cover	Other Food Crops Grown Under Cover	$3,259.51	$3,259.51 2021 Dataset pulled from ESD	$3,195.50 2021 Dataset pulled from DOR
111998	$1250.00	Cannabis, grown in an open field	All Other Miscellaneous Crop Farming	$11,775.64	$11,775.64 2021 Dataset pulled from ESD	$2,882.31 2021 Dataset pulled from DOR
424590	$1250.00	Cannabis merchant wholesalers	Other Farm Product Raw Material Merchant Wholesalers	$8,809.55	$3,948.77 2021 Dataset pulled from ESD	$8,809.55 2021 Dataset pulled from DOR

As the table demonstrates, the estimated cost of compliance does not exceed the minor cost thresholds for any of the potential NAICS codes applicable to cannabis licensees. Therefore, implementation of this amended rule is not anticipated to result in more-than-minor costs on businesses as defined in RCW 19.85.020(2).

DOR - Washington state department of revenue.

ESD - Employment security department Washington state.

DOR data available at https://apps.dor.wa.gov/ResearchStats/Content/GrossBusinessIncome/Results.aspx?Year=2023Q4,2023Q3,2023Q2,2023Q1,&Code1=450000&Code2=460000&Sumby=n6&SicNaics=2&Format=HTML.

A copy of the detailed cost calculations may be obtained by contacting Denise Laflamme, Policy and Rules Coordinator, P.O. Box 43080, Olympia, WA 98504-3080, phone 360-819-0452, fax 360-704-5027, TTY 711 or 1-800-833-6388, email [email protected].

AMENDATORY SECTION(Amending WSR 22-21-058, filed 10/12/22, effective 11/12/22)

WAC 314-55-015General information about cannabis licenses.

(1) To be issued and maintain a license to produce, process, or sell cannabis at retail, a person or entity applying for a cannabis license must meet all of the qualifications described in this chapter.

(2) All applicants, licensees, and employees working in each licensed establishment must be at least 21 years of age. ((No one))Persons, as defined in RCW 69.50.101, who are under 21 years of age ((may))must not:

(a) Enter or remain on ((a cannabis))the licensed premises of a cannabis licensee except as provided in RCW 69.50.357 or as provided in subsections (3) and (4) of this section.

(b) Possess any products associated with the production, processing, or sales of cannabis. Violations of this subsection are subject to the same penalties established for allowing persons under 21 years of age to frequent a retail licensed premises under WAC 314-55-525.

(3) Persons under the age of 16 who are children or grandchildren of the licensees may enter or remain on the licensed premises of a cannabis producer or processor, as provided in this subsection. Violations of this subsection are subject to the same penalties established for failure to maintain required surveillance system under WAC 314-55-522.

(a) The person does not enter or remain in areas where cannabis is present including, but not limited to, those areas where cannabis is grown, dried, cured, trimmed, processed in any manner, stored, or being prepared for shipment, unless accompanied by and under the direct supervision of the licensee.

(b) The licensee is on the licensed premises at all times while their child or grandchild is present.

(4) A licensed producer or processor may allow a person under 21 years of age to enter or remain on the licensed premises under the conditions outlined in this subsection.

(a) The person under 21 years of age is:

(i) At least 18 years of age.

(ii) Employed by a licensed plumbing contractor under chapter 18.106 RCW, or licensed electrical contractor under chapter 19.28 RCW, or a contractor registered with the Washington state department of labor and industries as required under chapters 18.27 RCW and 296-200A WAC.

(iii) On the licensed premises only during the course of their official employment providing contracted services to the licensee and does not remain on the premises any longer than is necessary to perform duties associated with their employment.

(iv) Accompanied at all times by either:

(A) A supervisor who is employed by the same licensed or registered contractor and who is at least 21 years of age; or

(B) A general contractor with supervisory authority and control over the workplace who is at least 21 years of age.

(b) In addition to requirements under WAC 314-55-083, including wearing an identification badge while on the premises, licensees must record the following information about employees of contractors in the visitor log:

(i) If the employee is under 21 years of age; and

(ii) The name of contractor business for whom employee is engaged in work while on the licensed premises.

(((3)))(5) Mandatory signs must be conspicuously posted at all cannabis licensed premises consistent with the requirements in WAC 314-55-086.

(((4)))(6) The privileges of a board issued cannabis license may be used only after the board issues official written approval.

(((5)))(7) The board will not approve an application for a cannabis license under any of the following circumstances:

(a) The proposed cannabis location would limit law enforcement access without notice or cause, including a personal residence;

(b) The proposed cannabis business would be located on federal lands;

(c) The proposed cannabis business would be located within the exterior boundaries of the reservation of a federally recognized tribe without the express written consent of the tribe consistent with WAC 314-55-020(4).

(d) The application for a cannabis retail license is located within another business unless that other business is a research license as described in WAC 314-55-073. More than one license may be located in the same building if each licensee has their own area separated by full walls with their own entrance, or if the same business entity holds a producer license and a processor license at the same location under a single license number. Product may not be commingled.

(((6)))(8) The board may impose special conditions to an approval for a cannabis license. Special conditions include, but are not limited to, involvement of any former licensee in the operations of the licensed business, their former employees, or any person not qualifying for a cannabis license.

(((7)))(9) All cannabis licensees must conspicuously post and keep posted its license, or licenses, and any additional correspondence issued by the board describing special conditions.

(((8)))(10) A cannabis licensee must use sanitary practices in the production, processing, storage, and sale of all cannabis products.

(((9)))(11) Cannabis licensees may not allow the consumption of cannabis or cannabis-infused products on or within the licensed premises.

(12) Nothing in this section conflicts with RCW 9.41.300 as the entire premises remain classified as off-limits to persons under 21 years of age from the general public.