Cannabis Licensing FAQ
General
Q: When will LCB open up opportunities for new cannabis retail, producer, or processor licenses?
A: The LCB is not accepting applications for new producer or processor licenses at this time. Cannabis retail licenses that have been subject to forfeiture, cancellation, revocation or licenses that were not previously issued by LCB will be filled through the Cannabis Social Equity Program.
Q: Can I allow customers to use or consume cannabis products at my business?
A: No. Public consumption of cannabis is prohibited in the state of Washington. See the following laws and rules:
Q: What types of applications are currently being accepted?
A: We are accepting applications for new Transportation and Research licenses, and new Cannabis Cooperative registrations. We are also accepting applications for changes to existing licenses. You can find these applications on the Cannabis Licensing page of our website.
Q: How do I submit my application?
A: Depending on the type of application, it should be submitted via the Department of Revenue’s (DOR) Business Licensing Services (BLS) or LCB. Visit our Forms and Applications page for a list of applications and information on how to submit them.
Q: Are there additional permits and/or licenses I need to have to be compliant with my cannabis business?
A: Your business may need to have additional local, state, and/or regional permits or permissions based on their requirements you will need to check with them directly.
Q: Does the LCB regulate air quality or odor control? Where can I find more information?
A: No, the LCB does not regulate air quality or odor control. You can find more information about air quality and odor control here or contact your local city or county for more information.
Q: What do I need to know if I want to add a kitchen?
A: If your business is adding a kitchen to process any ingestible cannabis infused products, the kitchen area must be inspected and certified through the Washington State Department of Agriculture (WSDA) before you can begin manufacturing products to sell.
Q: Do I need to submit an application to grow hemp?
A: In order to grow hemp in Washington State, you must have a valid Washington State Hemp License. Even licensed I-502 producers must have a valid hemp license to produce the hemp plant. Licensed hemp producers must have their hemp harvests inspected and tested by a WSDA inspector prior to harvesting their crop. You can fill out the application for a hemp license here. A hemp license with the WSDA costs $1,200 annually. If you have any questions about hemp licensing, please email hemp@agr.wa.gov.
Q: Can I do extractions?
A: If your business is adding extraction methods that use dangerous or combustible materials, the certification for the extraction machines must be reviewed by LCB, and you must have the approval of your local Fire Marshal. To add an extraction method or equipment, submit a Cannabis Alteration Request, available on our Forms and Applications page. Your assigned Licensing Specialist will provide you more information about required inspections and certifications. See WAC 314-55-104 for more information.
Q: What if my question wasn’t answered here?
A: Please reach out to us at cannabislicensing@lcb.wa.gov with your licensing questions. We are happy to assist you.
Changes to an Existing License
Q: How can I make changes to my licensed cannabis business?
A: You will need to submit an application before making changes to your business. Applications for change requests are available on our Forms and Applications page. Change applications will be assigned to a Licensing Specialist, who will contact you and provide more information about the next steps in the process.
Q: When can I begin making changes to my licensed cannabis business?
A: You may only make changes after your application has been approved by LCB and you have received an approval letter. You cannot make any changes until this is received.
Q: How do I move my cannabis business to a new location?
A: You must apply through Business Licensing Services (BLS) to move to a new location. As a reminder you must maintain all license requirements at your current location, including the security requirements contained in WAC 314-55-083, until after your new location passes final inspection and you receive approval from LCB.
- Please note: Retail licensees may only relocate within their jurisdiction they were originally allotted.
Q: How do I remove a spouse from my license?
A: A spouse (who does not receive profits or exercise control over the business) can be removed from the license by submitting the Change in Governing People, Percentage Owned and/or Stock/Unit Ownership application to Business Licensing Services. Please note, if you have a pending application being processed you may discuss this option with your licensing specialist
Funding
Q: Can I accept funds from an out-of-state financier?
A: Yes, you may accept funds from an out-of-state financier provided they reside in the United States and funds are not international. All funds must be from the United States. An Added funding application is required when investing additional funds to your cannabis business, which is available on our Forms and Applications page.
Q: When can I use additional funds after submitting an application?
A: It depends on the source of the funds. For most sources, you will need to complete an Application for Additional Funding and receive approval before you can use the funds. However, under WAC 314-55-035, LCB will allow funds from three sources to be used upon receipt of the application. Those sources of funds are:
- A true party of interest that is already approved on the license;
- A previously approved financier associated with the license; or
- A previously approved revolving loan.
Insurance
Q: What are the insurance requirements for a cannabis business?
A: All cannabis licensees must maintain commercial general liability insurance with coverage of at least $1 million. Additionally, the policy must be issued in the name of the licensed entity listed with the Secretary of State, list the exact address of the licensed location (including the suite number), list the state and its employees, agents, and volunteers as additionally insured, and be primary over any other valid and collectable insurance.
More information about insurance coverage for cannabis businesses is outlined in WAC 314-55-082 or visit the Office of Insurance Commissioner’s website.
Q: Is it required to have product liability insurance?
A: Product liability coverage is required as part of the general liability policy. Product liability insurance does not cover loss or damage to your products themselves but covers liability from the creation or consumption of your business’s products.
Medical Endorsements
Q: Can I add a medical endorsement to my Cannabis Retailer license?
A: Yes, you can add a medical endorsement to your retail license. Adding a medical endorsement to your retail license is free. If you are interested in adding a Medical Cannabis Endorsement to your Retailer license, please follow the steps below:
- Complete the Application for Added Medical Cannabis Endorsement, available on our Forms and Applications page.
- Please note, you must include a copy of the consultant certificate for the medical consultant on staff and photo(s) of the equipment used to issue recognition cards with your application.
- Email the application to cannabisendorsement@lcb.wa.gov. Please include your trade name and license number in the subject line, so we can easily identify you.
- LCB will add the endorsement to your existing license and send you an approval letter.
Q: How do I remove my medical endorsement from my retail license?
A: If you wish to remove a Medical Cannabis Endorsement, you may send your request to cannabisendorsement@lcb.wa.gov requesting for the endorsement to be removed Please include your trade name and license number in the subject line, so we can easily identify you.
Q: What is the Medical Cannabis Excise Tax Exemption?
A: Medical cannabis patients who are registered in the Department of Health’s Medical Cannabis Authorization Database (DOH Database) and who purchase DOH-compliant medical cannabis products form a cannabis retailer that holds a valid medical endorsement will be exempted from paying the 37% excise tax.
Physical Business and Location
Q: How can I find out if my location meets the distance requirements for a cannabis license?
A: Your location cannot be within 1,000 feet of the any of the restricted entities outlined below, unless your city or county has passed an ordinance to adjust the buffer zone.
- Restricted entities: Elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library, or any game arcade admission to which is not restricted to people 21 years of age or older.
- We recommend that you research your location or contact your local jurisdiction before you apply for a license or change of location.
- You may contact us at cannabislicensing@lcb.wa.gov with your proposed address for a preliminary check of restricted entities.
Q: What documentation do you need from my city or county if they changed the 1,000-foot buffer requirement?
A: We require a signed and dated copy of your city our county's ordinance for the reduced buffer.
Q: What if a new restricted entity opens within 1,000 feet of my existing business, or a location where I have already applied for a license?
A: Once you have applied for a license or change of location, we will perform a check for any restricted entities as of the date of the application. If your location is compliant, we will provide a Certificate of Compliance letter that allows you to continue with the application process should a restricted entity move in within 1,000 feet of the location before the license is issued to you.
Qualifications for a Cannabis License
Q: How long must I live in Washington before I can apply to be a licensee?
A: Individuals must live in Washington State for at least six months before applying for a cannabis license. All business entities applying for a cannabis license must be formed in Washington and registered with the WA Secretary of State's Office. All individuals listed as true parties of interest must meet and maintain the Washington State residency requirement (see WAC 314-55-035 for the definition of a true party of interest).
Q: What criminal history might prevent me from getting licensed?
A: The LCB does criminal background checks to ensure applicants for a new or renewed license are qualified. The background checks include a criminal record check through the Washington Judicial Access Browser System, the Washington State Patrol, and the Federal Bureau of Investigations database. All true parties of interest and financiers (see WAC 314-55-035 for definitions) are required to fully disclose their entire criminal history. See WAC 314-55-040 for specific information on criminal history.
Q: Is my spouse required to be on the license? Does my spouse need to have a criminal background check?
A: spouse is not required to be on the license, if the spouse is not receiving profits or exercising control over the business. However, if the spouse remains on the license they will be required to complete a background check, or if a spouse is providing funds to the business they will be required to undergo a background check and qualify as a financier. See WAC 314-55-035 for more information.