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Problem Statement
The Board of Health emergency rule at chapter 246-80 WAC banning flavored marijuana vapor products created a financial liability for many marijuana licensees. Current Board rules do not allow retailers to return the banned products in exchange for credit to be used for future purchase of allowed products.
Relevant statutes and rules:
- RCW 69.50.328 Marijuana producer processor – No direct or indirect financial interest in licensed marijuana retailers.
- WAC 314-55-018 Prohibited practices – Money advances – Contracts – Gifts – Rebates, discounts, and exceptions, etc.
- WAC 314-55-077(12) Marijuana may not be returned by any retail licensee to any processor except as provided in this section.
- WAC 314-55-115 What method of payment can a marijuana use to purchase marijuana?
Returns for Credit
In an effort to help retailers and processors, the Washington State Liquor and Cannabis Board (WSLCB) today, by way of Board Interim Policy 15-2019, is allowing, for a limited time, WSLCB licensed marijuana retailers to return flavored marijuana concentrates for inhalation and flavored marijuana extracts for inhalation, as defined in chapter 246-80 WAC, to WSLCB licensed marijuana processors for credit against future purchases of marijuana products. This Board Interim Policy is effective immediately and retroactive to Oct. 10, 2019.
WSLCB licensed marijuana processors may grant credit to WSLCB licensed marijuana retailers for return of flavored marijuana concentrates for inhalation and flavored marijuana extracts for inhalation, as defined in chapter 246-80 WAC, against future purchases of marijuana products.
WSLCB licensed processors may accept banned vapor products and issue a refund, credit, or exchange of similar product, not to exceed the acquisition cost of the product being returned, until December 31, 2019. A credit balance may be maintained for up to six months, until June 30, 2020. Records must be maintained that clearly show a detailed accounting of each transaction involving a return for refund, credit, or exchange. A record of all expired credit must also maintained. All records most comply with WAC 314-55-087.
The Board reserves its discretion to extend or rescind BIP 15-2019 as necessary.
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