WA Governor - Bill Action
(March 21, 2018)

Here are some observations from the Wednesday March 21st, 2018 Washington State Office of the Governor (WA Governor) Bill Action.

My top 3 takeaways:

• Legislation to allow importation of cannabidiol (CBD) for use as a cannabis product additive arrived at the governor’s desk following an erratic trek during the 2018 legislative session.
  • HB 2334 (“Regulating the use of cannabinoid additives in marijuana products”) allowed for use of the compound to enhance CBD content in products. The bill was heard on January 8th, the first day of the 2018 legislative calendar, and amended and recommended for passage by the Washington State House Commerce and Gaming Committee (WA House COG) during their first executive session of that year, January 15th.
    • The bill was prefiled by WA House COG Chair David Sawyer in December 2017 and the first fiscal note for HB 2334 was released on January 8th.
  • After this point, progress on HB 2334 halted until it was heard, revised, and recommended for passage by the Washington State House Appropriations Committee (WA House APP) on February 6th, the last day for a bill to be recommended by a fiscal committee in its house of origin. The legislation then awaited floor action from February 12th until after a cutoff date for all bills except those “necessary to implement the budget” (NTIB).
    • In addition to the bill report and second substitute text, a third fiscal note was released on February 19th showing revenue from the bill due to the addition of an $81 annual fee for all producer, processor, and retailer licensees expected to generate $238,707 each fiscal year (FY) starting in FY 2019, collected from “2,947 marijuana producers, processors, and retailers.” Expenditures were unchanged from the previous fiscal note. A final fiscal note on March 12th showed identical revenue and expenditures.
  • Restarted on March 6th and in about 24 hours at the end of the legislative session, HB 2334 went from the floor of the Washington State House of Representatives (WA House) to the floor of the Washington State Senate (WA Senate). The legislation would be given a public hearing and recommended for passage in a single meeting of the Washington State Senate Ways and Means Committee (WA Senate WM). It was then added to the legislative floor calendar by the Washington State Senate Rules Committee (WA Senate RULE) and passed without further amendment on March 7th---the last full day of the 2018 session---despite 12 senators opposing the bill.
    • Bills may have uneven progress through a legislative session for many reasons including evolving priorities of leadership, changes in fiscal need, special interest advocacy, and/or issue or sponsor controversy.
    • In late February, Sawyer was restricted from contact with his staff following allegations of workplace harassment.
  • As the legislation was unchanged by the WA Senate, a concurrence vote was not necessary in the WA House and the bill was signed by Speaker of the House Frank Chopp and WA House Chief Clerk Bernard Dean. On return to the WA Senate, the bill was certified by a signature from Lieutenant Governor Cyrus Habib in his role as President of WA Senate before the legislation was delivered to the Governor’s desk.
    • Chopp was succeeded as speaker by Representative Laurie Jinkins. Habib did not seek re-election in 2020 and was succeeded in office by Lieutenant Governor Denny Heck.

• Governor Jay Inslee signed HB 2334 into law flanked by Sawyer and Representative Laurie Dolan (audio - 1m, video).
  • Inslee checked with staff and Sawyer as to the proper pronunciation of “cannabidiol” after first reading it as “canna-bud-oil,” a problem WA House staff encountered during floor action on the bill leading to a light moment for that chamber. After several attempts, Inslee noted, “we know what we’re talking about.”
  • He said CBD products were “believed to have potential health benefits” and that “some of these products come from outside of our regulated marijuana system and are not currently being tested for quality assurance.” Inslee stated that passing HB 2334 into law ensured “that these products are safe by requiring they be tested for contaminants and toxins by an accredited testing laboratory.”
  • Just before signing the session law, the governor thanked “Representative Sawyer for this consumer protection measure."
    • Following the legislative session in May 2018, Sawyer was suspended as WA House COG chair. A subsequent independent investigation recommended he be permanently removed from that role. Sawyer would lose the Democratic primary in August 2018, and was fined after leaving the legislature due to an ethics violation related to the harassment claims. 
    • Representative Shelley Kloba was HB 2334’s only co-sponsor but, beyond moving to recommend the bill for passage in WA House COG, she made no public comments on the bill. Kloba began serving as WA House COG chair on January 15th, 2021.

• Following affixture of Inslee’s signature and filing with the Washington Secretary of State on March 23rd, the law took effect on July 1st, 2018 as RCW 69.50.326, and required the Washington State Liquor and Cannabis Board (WSLCB) to implement rulemaking to enact the statute.
  • RCW 69.50.326(3) established that WSLCB officials “may enact rules necessary to implement the requirements of this section.”
    • “Such rule making is limited to regulations pertaining to laboratory testing and product safety standards for those cannabidiol products used by licensed producers and processors in the manufacture of marijuana products marketed by licensed retailers under chapter 69.50 RCW.”
    • The rules were meant to “ensure the safety and purity of cannabidiol products used by marijuana producers and processors” and authority for the rules did “not include the authority to enact rules regarding either the production or processing practices of the industrial hemp industry or any cannabidiol products that are sold or marketed outside” the system of regulated cannabis under the purview of WSLCB staff.
  • On April 4th, two weeks after the bill was made a law, WSLCB board members approved opening a CR-101 on a rulemaking project to begin implementation of the statute.