April 1st Has Changed Everything for Cannabis Processors in Washington
Cannabis entrepreneurs (and Marijuana lawyers) be on alert. On April 1, a new regulation went into effect that requires cannabis processors in the state of Washington to obtain a special endorsement from the Washington State Department of Agriculture (WSDA) if they want to make marijuana-infused edibles, also known as MIEs.
Since the implementation of the state’s recreational cannabis laws in 2012, the Washington State Liquor and Cannabis Board (WSLCB) has overseen the entire industry, including these processors. Going forward, the board will share this responsibility with the WSDA to ensure these businesses are also complying with the state’s sanitary processing laws.
The WSDA will regulate all food processors, as well as provide technical assistance, routine inspections, and will also oversee all recalls when necessary. The cost for the endorsement, which is added to the cannabis processor’s existing business license, is $895 upfront and another $895 each year to renew it.
The Change in Regulation and Procedure
Last year, the state Legislature allowed for the WSLCB to join forces with the WSDA through the department’s Food Safety Program, which already provides licensing and inspections to other types of food processors in the state. Going forward, the WSLCB will continue to license MIE processors, while the WSDA will handle all other responsibilities.
Another reason for the pseudo-merger is so these MIE processors will receive more frequent inspections, better support from the state government, and more resources for any other needs. This is all covered by the higher fee, of course. There are currently 127 cannabis processors in the state that make marijuana-infused edibles.
Cannabis Processors: How to Obtain the Special Endorsement
All MIE processors have until April 30 to apply for the endorsement from the WSDA and pay the $895 fee. To apply for the endorsement, the processor must already have a valid WSLCB Marijuana Processor license and produce only MIE products at a single facility. Once the business meets these requirements, it can apply through the Washington State Department of Revenue Business Licensing Service website.
Through the licensing portal, the cannabis business can submit the application and pay the fee. Once the department approves the application, the endorsement is added the processor’s license. Each year after that only the fee is due to maintain the endorsement. In a letter to stakeholders on March 19, the WSDA stated that all processors must also “meet all WSLCB licensing requirements” before applying.
The WSDA will then provide an initial inspection at some point within the first years after approval. Cannabis processors, and their watchful marijuana lawyers should also keep in mind that any changes of ownership, location, or products will give the department enough reason to schedule a new inspection and void any current endorsement the business has been given.
The law technically went into effect on April 1, but the WSDA is giving businesses a 30-day grace period (which was most likely put in place to help the department with the initial workload). Any MIE processor that currently holds a valid business license and does not apply for the special endorsement and pay the fee by April 30 is expected to stop all operations until the application is received and approved by the WSDA.