WA Senate WM - Committee Meeting
(March 5, 2022)

Saturday March 5, 2022 9:00 AM - 11:00 AM Observed
Washington State Senate Logo

The Washington State Senate Ways and Means Committee (WA Senate WM) considers the operating and capital budget bills and related legislation, including the authorization of state debt.  The committee also deals with tax policy and other fiscal issues such as pension policy and compensation in addition to bills with operating budget fiscal impacts.

Public Hearing

  • SB 5983 - "Concerning untested and unregulated cannabinoid products."
https://app.leg.wa.gov/committeeschedules/Home/Documents/29955

Observations

A last-minute hearing on a repackaged bill to regulate synthesized cannabinoids revealed shared public health concerns but testimony otherwise remained just as sharply divided.

Here are some observations from the Saturday March 5th Washington State Senate Ways and Means Committee (WA Senate WM) Committee Meeting.

My top 4 takeaways:

  • Staff briefed on SB 5983, "Concerning untested and unregulated cannabinoid products,"the third revision of WSLCB agency request legislation intended to expand regulation of cannabinoids.
    • In 2021, the issue of cannabinoid content in legal cannabis products beyond delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD) came to the fore as Washington State Liquor and Cannabis Board (WSLCB) staff received reports that CBD distillate, which was legalized in 2018 as an additive for cannabis items, was being chemically converted by licensed processors into the isomersdelta-8-THC, delta-9-THC, and other cannabinoids. Some producers emphasized how synthesized cannabinoids undercut the value of cannabis plants, were potentially harmful, and argued they were unlawful. Licensees engaging in cannabinoid synthesis spoke up to defend the practice as a federally legal and safe ‘innovation’ that shouldn’t be limited to unregulated markets or other legal cannabis states. After looking into the issue, WSLCB leaders took the following actions:
    • The first attempt of WSLCB staff to gain legislative approval was request legislation HB 1668, which was heard on January 13th in the Washington State House Commerce and Gaming Committee (WA House COG). The bill was recommended in an executive session by the Washington State House Appropriations Committee (WA House APP) on February 7th and was pulled from the Washington State Senate Rules Committee (WA Senate RULE) before stalling on the chamber floor. The bill was modified and reintroduced as HB 2122, which was not taken up by lawmakers.
    • In the hearing, Washington State Senate Labor, Commerce, and Tribal Affairs Committee (WA Senate LCTA) Counsel Matt Shepard-Koningsor went over the effects of SB 5983. He included a quick background from the bill analysis on various cannabinoids and the existing definition of THC before explaining how the proposed legislation gave WSLCB “authority over cannabis compounds that may be impairing, or marketed as impairing” (audio - 4m, video):
      • “Adds and amends definitions in the Uniform Controlled Substances Act, including expanding the definition of marijuana to include other tetrahydrocannabinols (THCs) in addition to delta-9 THC, and adds a definition of impairing in relation to a cannabinoid.”
        • Defines “artificial cannabinoid” as “a solely chemically created substance not originating from the plant but that is structurally the same, or substantially similar to the molecular structure of any substance derived from the plant.”
        • “‘Synthetically derived cannabinoid’ means any cannabinoid altered by a chemical reaction that changes the molecular structure of the natural cannabinoid derived from the plant into another found naturally in the plant.”
        • “‘Impairing’, in relation to a cannabinoid, means a psychotropic constituent of the plant cannabis which may diminish a person's cognitive, mental, or physical function or ability, and LCB is given authority to further define impairing by rule.” 
        • “THC” would mean any “THCs that are artificially, synthetically, or naturally derived.”
        • Amends various definitions, including ‘marijuana’ (which “has been changed to ‘cannabis’ through” HB 1210) so that “THC concentration is no longer limited to delta-9.”
      • “Prohibits the sale of certain cannabinoid products except when sold by licensed cannabis producers, processors, and retailers, and adds new age restrictions to the purchase of certain cannabinoid products.”
      • “Expands the Liquor and Cannabis Board's (LCB) regulatory and rulemaking authority over cannabinoids that may be impairing or marketed as impairing.”
      • Directs LCB to collect a temporary $25 surcharge on certain licenses allowing the sale of cigarettes, other tobacco, and vapor products at retail, and to enforce sales of products containing cannabinoids that may be impairing or marketed as impairing. 
        • This would be in effect “from July 1st, 2022 and June 30th, 2024.”
        • The temporary fee was added so SB 5983 could be designated necessary to implement budgets (NTIB) and of relevance for WA Senate WM, Senator Karen Keiser would later clarify.
        • HB 2123 included an alternative enforcement mechanism for products outside of cannabis retailers that would’ve been overseen by local public health officials.
      • Includes provisions on adding non-impairing cannabinoids to cannabis products; prohibiting artificial cannabinoids and requiring rules before the sale of any synthetically derived cannabinoids; prohibiting synthetically derived cannabinoids in Department of Health-approved cannabis products; and requiring disclosures.”
        • Non-impairing cannabinoids could be used as additives in legal cannabis items “for the sole purpose of enhancing the non-impairing cannabinoid concentration of an authorized product,” but could not be used in any medically compliant cannabis items. All artificial cannabinoids would be prohibited.
      • Shepard-Koningsor indicated the analysis included reference to actions taken by the agency and regulators in other states on “cannabinoids other than delta-9.”
    • Senator Ann Rivers asked whether “these products are already not allowed by the LCB.” Shepard-Koningsor noted the earlier policy statement published by agency officials that “prohibited the manufacture and sale of these products,” but the definitions in law “do not capture products other than delta-9” (audio - 1m, video).
    • Senator Andy Billig inquired about industry or “national standards” for cannabinoid definitions. Shepard-Koningsor responded that a delta-9-THC limit of 0.3% by dry weight was part of the definition for hemp in the 2018 Farm Bill which legalized hemp production. He noted “these products can be converted from hemp or from a marijuana plant,” but the reference to serving sizes wasn’t based on a national standard (audio - 2m, video).
    • Keiser complimented Shepard-Koningsor for “becoming our resident chemist on this issue” and asked for confirmation about "new combinations and derivatives that are being processed synthetically…and we’re now up to delta-11." He was uncertain on that specific cannabinoid, but agreed there were “over 80 different cannabinoids in the plant,” and the bill intended to empower WSLCB staff “to regulate any products that would come later” which exceeded either THC or serving size limits (audio - 1m, video).
    • Senator Bob Hasegawa asked for clarity about a fee funding enforcement of the prohibition on cannabinoid items outside of the legal cannabis sector (audio - 1m, video).
    • Hasegawa then inquired about research on “the hemp side of all of this” that was supporting the development of the state’s hemp industry, asking, “does this lock out the results of a lot” of studies by Washington State University (WSU) and state agencies. Shepard-Koningsor wasn’t certain, but answered that WSLCB staff were required “in their rulemaking to consult with the departments of Health and Agriculture” (audio - 1m, video).
    • Senator John Braun wondered what made the legislation urgent “six days before the end of session.”Chair Christine Rolfes pointed out that WA Senate WM didn’t normally function as the first policy committee hearing on legislation, and had given the bill a hearing “out of courtesy” to Keiser and Senator Mark Schoesler as sponsors, but agreed she was similarly curious (audio - 4m, video).
      • Keiser conceded that “short sessions are always difficult” and that one chamber is usually “the mover of certain bills.” She expected HB 1668 would have been passed by the Washington State House of Representatives (WA House), but “it did not make it.”
      • The urgency, Keiser stated, was “these products, that are intoxicating and impairing, are being sold in the public spaces without any restriction on age or location.” She described how items were readily available, their intoxicating effects were unlabeled, and there were “so many new variations being created” without any “public health data on their impact.” Keiser was concerned people might intentionally or unintentionally ingest the products while driving, and genuinely believed “there's a public health urgency to this matter as well as a…need for us to look into this seriously.”
      • Rivers echoed Keiser’s arguments, feeling it was “imperative that we get these out of convenience stores” and away from “over the counter activity.” She still had misgivings about “the rest of the bill” but agreed with the idea that cannabinoid regulation “represents a public safety issue.”
    • WA Senate WM Senior Fiscal Analyst Amanda Cecil offered comments on the   fiscal note attached to SB 5983, saying there were “indeterminate cash receipts impact from” WSLCB staff, who showed “$1.7 million in the current biennium for costs” and $1.5 million in the following biennium (audio - 1m, video).
      • Cecil described how the bulk of the costs “related to enforcement activities” as well as information technology, rulemaking, and “additional attorney general/client service costs.”
      • The Washington State Department of Revenue would spend $78,000 “for one-time implementation costs to implement the fee.”
      • Washington State Patrol (WSP) staff had informed Cecil they expected costs similar to those for HB 1668 from the bill of $1.7 million for "more sensitive testing equipment,” in addition to “ongoing costs of $130,000.”
      • WSLCB requested $90,000 to cover nine “mobile test units” to be used during premises checks.
  • 11 people spoke favorably of the legislation, a mix of cannabis stakeholders, prevention interests, and state agency representatives, along with 28 who signed in support.
    • Micah Sherman, Raven Co-Owner and Washington Sun and Craft Growers Association (WSCA) Board Member (audio - 3m, video)
      • Sherman talked about how the issue of cannabinoid regulation had “been going on for quite some time” and complimented the bill which he said had “come such a long way in the last year” when WSCA members began “trying to draw attention to these synthetic cannabinoids” both inside and outside of the regulated market. He called cannabinoid products “a public safety issue” involving “synthetically derived drugs, they are not from hemp itself” but rather “made in a lab from material that was extracted from a plant.” Sherman ultimately wanted the compounds “vetted in that drug development process that the FDA has.” Moreover, he suggested an “important distinction that we have between hemp and what we call cannabis…is the industrial use versus the cannabinoid use.” He believed the bill would lead to “a more coherent regulatory process for both hemp and cannabis.”
      • Rivers mentioned that imported fruit which wasn’t “quite ripe” was given “a shot of [ethylene] gas in the truck” transporting them which altered the “chemical composition to ripen the strawberry.” This example illustrated why she wanted to “push back on the idea that this is somehow synthetic” (audio - 1m, video).
    • Caitlein Ryan, The Cannabis Alliance Interim Executive Director (audio - 1m, video)
      • Ryan supported any impairing cannabinoid being “firmly” under the authority of WSLCB, remarking that delta-8-THC products “in particular” constituted a concerning “public health threat” that had “already caused harm in our communities.” She considered it “an inevitability” that failure to regulate the products would lead to a health “crisis” in the state, potentially greater than the cases of vaping associated lung injuries (VALI) in Washington in 2019. Ryan welcomed the rulemaking WSLCB would undertake, as “the devil’s in the details” and she believed that effort would benefit from WSLCB staff involvement in the interagency coordination team (ICT) for lab standards proposed by HB 1859.
        • HB 1859 was passed by the senate on March 4th. Due to changes made in the senate, the bill will require a concurrence vote by the house before it can be delivered to the governor to sign or veto.
    • Jason Poll, Gorge Gold CEO and WSCA Member  (audio - 1m, video)
    • Lukas Hunter, Harmony Farms Director of Compliance (audio - 1m, video)
      • Hunter bluntly said “this bill is necessary" as Washington was “trailing behind other states that have already broadened their scope of regulations” over cannabinoids besides delta-9-THC. He commented that regulatory action was needed to ensure all products that were impairing were “tested, and safe for consumption, and sold exclusively to adults.” Waiting another year before establishing regulations would be, “for lack of a better term, crazy,” said Hunter, wanting to safeguard public health by keeping sales limited to “responsible adults.”
    • Jeff Ketchel, Washington State Public Health Association (WSPHA) Executive Director (audio - 1m, video)
      • Ketchel relayed that his organization was "deeply concerned in the rise of accidental poisonings to youth with unregulated, intoxicating hemp products being…fearfully more available.” Moreover, cannabis revenue supported “important things such as prevention and public health which is being shortchanged due to these products not having the same level of taxation” as legal cannabis. 
    • Shawn DeNae Wagenseller, Washington Bud Company Co-Owner and WSCA Board Member (audio - 2m, video, written comments)
    • Linda Thompson, Greater Spokane Substance Abuse Council (GSSAC) Executive Director and Washington Association for Substance Abuse and Violence Prevention (WASAVP) Board Member (audio - 1m, video)
      • Thompson testified that WASAVP supported “the regulated system” and had worked since legalization was approved by voters to ensure WSLCB had the powers needed to “regulate, to get testing, to do quality inspections” and limit sales to licensed retailers. She brought up her group’s goal of “stopping impaired driving, and we’re seeing that increasing,” including drivers using “a mix of alcohol and unregulated products, and marijuana.” Thompson wanted SB 5983 passed to help young people “make a good choice,” and more broadly, to “protect our children, and youth, and families.”
    • Ezra Eickmeyer, Producers Northwest (audio - 1m, video)
    • Adán Espino, Craft Cannabis Coalition (CCC) Executive Director (audio - 1m, video)
      • Espino encouraged the “separation between synthetic products and regular cannabis products” set up under the bill, not wanting retailers to bear responsibility for product oversight. He added that CCC members valued “public safety greatly for our consumers.”
    • Signed in but not testifying (28):
  • 14 people signed in to speak against advancing the bill, largely cannabis licensees and hemp interests, with another 49 signed in opposed but not testifying.
    • Dylan Summers, Lazarus Naturals (audio - 2m, video)
      • Summers described his frustration with the legislation, specifically the “imprecise” language “that stands to restrict access to hemp health products unnecessarily.” He said there remained “misunderstanding leading to an unwillingness for compromise in some areas,” even as his organization was similarly concerned with health and safety. Summers insisted opponents weren’t “trying to weasel intoxicating products into non-LCB regulated marketplace[s]” as his products were “as minimally processed as possible to capture the natural components of the hemp plant.” He insisted that Lazurus didn’t produce “recreational” products, adding that there was a “hemp in food task force that will deal with the more complex hemp product regulations.” He favored a “20 to one non-intoxicating…cannabinoid to THCs ratio and a two milligrams of THCs per serving cap.”
        • The task force mentioned was included as a budget proviso in the initial substitute of SB 5693 proposed by Rolfes in section 311(22) allocating $200,000 for fiscal year 2023, “solely for the department to convene a stakeholder task force to identify a pathway for hemp and hemp extracts to be added to food as an ingredient and to frame statutory proposals for consideration in the 2023 legislative session.”
    • Vicki Christophersen, WACA Executive Director and Lobbyist (audio - 1m, video)
      • Christophersen was “very disappointed to have to be here testifying con" as the position of WACA members was unchanged despite several new versions of the bill. She said the legislation conflated “separate, but important issues.” The first was the need to stop sales of cannabinoid products outside the regulated market, where she saw "unanimous agreement." But aspects of the bill regulating products within the cannabis sector were what she objected to, claiming they were crafted in a “broad, unregulatable way.” Christophersen indicated that WACA members had repeatedly proposed a “scientific panel” be convened by the Washington State University Center for Cannabis Policy, Research, and Outreach (WSU CCPRO) to study the issue and “bring back recommendations.” She claimed she would support SB 5983 if the proposed regulatory process was removed in favor of the scientific panel.
        • WSU CCPRO Director David Gang presented to WACA members on cannabis and hemp research at the university during the WACA Fall Policy Conference in November 2021.
        • It’s our understanding that Gang was one of three experts who contributed to drafting the cannabinoid definitions in the first alternative bill, SB 5767, along with Brad Douglass, The Werc Shop Vice President of Intellectual Property & Regulatory Affairs, and Jessica Tonani, CEO of VerdaBio.
    • Wendy Hull, Fairwinds CEO (audio - 2m, video)
      • Hull said her only concern with the legislation was the proposed definition for impairing, as it “lacked clarity.” After contacting WSLCB about a product containing cannabigerol (CBG) along with data suggesting the minor cannabinoid wasn’t impairing, she’d become concerned when staff hadn’t assured approval. Hull asked for policy to be made based on evidence, not “opinion,” and called for an “independent party” to recommend the definition.
      • Jesse Huminski from Fairwinds Manufacturing also signed up but wasn’t called to testify.
    • Jessica Tonani, Verda Bio Research CEO (audio - 1m, video)
      • Tonani supported regulating compounds which “make people high” but she disagreed with the definition of impairing, saying its use of the term “psychotropic may sound specific and dangerous but there’s a high probability that each of you consumed psychotropic compounds this morning.” Noting that even CBD had been called psychotropic, she was concerned that companies selling impairing cannabinoids were “large, and they will sue” to challenge an “unenforceable” definition.
    • Kent Haehl, Unicorn Brands, Atlas Group and Atlas Global Technologies LLC President, WACA member (audio - 1m, video)
      • Seconding those who wanted cannabinoid products banned from the unregulated market, Haehl believed SB 5983 conflated removing “untested and unregulated products from the unlicensed outlets” with an “undefined, misunderstood condemnation of cannabinoid science and innovation.” He argued the bill had not been “fundamentally based in science and fact," and asked for alternative recommendations to be put in the bill in order for it to be advanced.
      • According to a January 5th email from WSLCB staff, Unicorn Brands was a licensee which had delta-8-THC products seized in October 2021.
    • Rusty Sutterlin, Inventure Renewables Inc. Chief Science Officer (audio - 1m, video)
      • A trained chemist who had worked in “the vegetable oil markets,” Sutterlin said he was “all for safety,” but found SB 5983 to “overreach” and stifle innovation. He offered the example of the vanilla industry in Madagascar opposing synthetic vanilla, which he said could be made “cheaper, better, and more pure” from other plant biomass. Sutterlin was against having hemp crops treated the same way, and advocated for a science panel to make recommendations on regulations.
    • Joy Beckerman, Hemp Ace International Founder, U.S. Hemp Roundtable Director, U.S. Hemp Authority Technical Committee Member (audio - 3m, video)
      • Beckerman saw “good intentions” behind the bill, but echoed others’ concerns over it. She took issue with the milligram limits in the bill, wanting them “based in science” instead of “frenzied and uninformed law.” Beckerman saw the hemp sector as being more responsible than wanting impairing cannabinoids sold “under the guise of hemp,” but that a two milligram limit for a cannabinoid content in products was without basis in science showing a relation to impairment. Moreover, she considered it unacceptable for thousands of consumers in the state who “demand access to safe and non-impairing full spectrum hemp extract products” to be forced to endure “the stigma of accessing them through a cannabis dispensary.” 
      • She argued that most hemp businesses considered chemically converting hemp “to be a scourge to the hemp extract industry, a scourge to the emerging hemp industries as a whole, and to be dangerous to the public.” Beckerman said as there was “no science regarding synthetic cannabinoids,” it would be “extremely dangerous” for officials to authorize legal use of any synthetic cannabinoids as “nobody, respectfully, has figured it out” yet. Were the bill to move forward, she asked for a “giant warning” on packaging telling consumers “this product has never been studied and almost certainly contains toxic chemicals that are extremely dangerous to your health.”
    • David Brown, Pot Townsend (audio - 1m, video)
    • Brad Tower, Phillips Burgess Government RelationsPrincipal and IHEMPAWA Lobbyist (audio - 1m, video)
      • Tower favored “a well established, testable standard of 0.3%” THC as opposed to “an ill-defined and subjective standard” of what “may be impairing," as anything “may be impairing.” Tower suggested lawmakers make it “doubly clear that the synthetically derived substances…are actually illegal,” then give WSLCB authority and resources “to intervene in the marketplace” in order to remove those items (“we also support that”). He mentioned the hemp in food task force proposed in the budget as a “more thoughtful process.”
    • Greg Haynes, Rio Nine Eleven (audio - 2m, video)
    • Bonny Jo Peterson, IHEMPAWA Executive Director (audio - 3m, video)
      • Explaining that IHEMPAWA represented “the majority of hemp farmers, hemp extractors,” and those utilizing hemp crops, Peterson noted she was also involved in various research grants. Like others against SB 5983, she preferred the proposed hemp in foods task force look at “the hemp industry end of things” like which cannabinoids were impairing. “We do not want people getting high from hemp products," she insisted, and found whether or not WSLCB leaders allowed synthetic cannabinoids in legal cannabis products to be “a whole ‘nother thing.”
      • Peterson found the definition of impairing wasn’t “testable, so it’s not enforceable for these products.” Additionally, she considered the serving size restriction “arbitrary” and said she could show that non-THC cannabinoids in “a 20:1 ratio in a 2 milligram serving size” didn’t get people “high,” and were safe enough to be regulated by the Washington State Department of Agriculture and “the health department.” 
    • Jim MacRae, Straight Line Analytics (audio - 2m, video)
    • Kristofer Plunkett, Cascadia Hemp Co.President and IHEMPAWA Board Member (audio - 2m, video)
      • Plunkett believed that SB 5983 had the potential to “eliminate half about of my business due to” serving limits for hemp items. Some of his clientele bought “full spectrum CBD products for their health and wellness,” but would be made to pay a 37% excise tax on the same items while going into cannabis retailers “which many people don’t want to do.” The only alternative he saw was “tiny products with tiny serving sizes, which increases costs and packaging waste.” Plunkett supported getting unregulated cannabinoid items off shelves, but insisted his company had never heard complaints about intoxication from using their products.
    • Bill Thompson from Smokiez Edibles signed up to speak but was unavailable when called upon. The company gained approval for many delta-8-THC products in 2020.
    • Signed in but not testifying (49):
      • Blade Bolden, Atlas Global Technologies Manager
      • Matt Boggs 
      • Michael Bandy
      • Andy Brassington, Evergreen Herbal Owner and WACA Board of Trustees Vice President
      • Jackie Brassington, Evergreen Herbal
      • Jennifer Brown
      • Taylor Burger
      • Madi Burger
      • Rebecca Burghardi, Northwest Cannabis Solutions (NWCS) Assistant Director, Research and Development 
      • Jay Carskadden 
      • Lawrence Clark  
      • Sabine Curtis
      • Curtis
      • Lisa Danielson
      • Maranda Davis, WACA staff
      • Dean Dixon
      • Cindy Dorais, Fairwinds 
      • Brad Douglass, The Werc Shop Vice President of Intellectual Property and Regulatory Affairs 
      • Joseph DuPuis, Doc and Yeti Urban Farms CEO and WACA Board Member
      • James Field
      • Paul Fletcher, Innovate It
      • Morgan Fossburger
      • Kersten Gaba
      • Max Goldman
      • Stephen Heil 
      • Jessica Hostetler, WACA Associate Lobbyist
      • James Hull, Innovate It
      • John Hunt, 405 Lab LLC Co-Founder
      • Patrick Hyland, NeXtraction Inc President
      • Kristin Jarvis-Fisher, Fairwinds
      • Bryce Johnson, Delta Lites LLC Founder
      • Ross Kalkowski
      • Jamie Kruschke
      • Laura Caouvraarrubias Milan
      • Vanessa Leon
      • Kari Lunde
      • Melissa McLain 
      • Claudia Minton 
      • Troy Peterson, Apex Cannabis Co-Owner and WACA Board of Trustees Member
      • Aaron Pickus, Pickus Communications, WACA Spokesperson
      • Brendon Quinn 
      • Sativa Rasmussen, Attorney at Dorsey and Whitney LLC
      • Jacquelyn Sideman 
      • Tracie Stone
      • Jerald Tindall
      • Rachael Weygandt, Evergreen Herbal Compliance Manager and Project Coordinator
      • Victoria Whitman, Cannabis Licensee
      • Randi Wooten 
      • Lillian Yuen
  • WSLCB Director Rick Garza and other state agency representatives responded to prior testimony then answered questions about stakeholder outreach and which businesses would be investigated for selling synthesized cannabinoid products before the bill sponsor was granted the last word.
    • Grateful the bill was being heard late in the session, Garza said it represented “a very complicated issue" that had come to the fore since hemp was federally legalized in 2018. He explained that staff had found “an explosion, in the last 18 months, of intoxicating hemp products, such as delta-8-THC gummies” in a variety of convenience and grocery stores. Garza said the compounds and the “chemicals and solvents used to create them in a lab pose a serious health threat” for consumers, youth, and the public. He mentioned how staff had spent “most of last year trying to address this issue” and the legislation was the top priority for the board during the session “because public health experts and others tell us the time to act is now” (audio - 5m, video).
      • Garza claimed that “delta-8 products from hemp have nationwide landed children and adults alike, in emergency room visits, pediatric intensive care unit submissions, or poison control center reports.” He noted a federal health advisory on the compound from September 2021 showed that “all states are facing the urgent public health risk here,” and that legislators needed to act on the bill, which was bipartisan in its sponsorship and had “a broad coalition of stakeholders.”
      • Garza speculated this “may be the first piece of major cannabis-related legislation” supported by the Washington Association of Sheriffs and Police Chiefs (WASPC), WSPHA, medical cannabis patients, and many cannabis licensees. He said that WSLCB had “collaborated with researchers, scientists, industry members, elected officials and consumers,” leading to “four of the five [cannabis] trade groups that the LCB regularly interacts with support[ing] this bill.”
        • It's Cannabis Observer's understanding that Garza was referring to the Cannabis Alliance, WSCA, CCC, and Producers Northwest.
      • SB 5983 featured a process for the agency to work with other state institutions “to consider the safety of emerging cannabis products that make you high,” Garza remarked. He added that WSLCB officials only wanted authority to regulate “all THC cannabinoids,” which he argued was in keeping with the intentions of voters in approving cannabis legalization. “This cannot wait until next session on the hope that no actual public health crisis emerges,” Garza concluded.
    • With the exception of herself, Rivers doubted anyone in the legislature “understands how far this industry has come,” and asked what Garza had done following the failure of the prior bills that session to “convene stakeholders to make sure all the questions were addressed,” as she “didn’t know anything about it.” She added that she hadn’t seen “convenience stores called out in this bill, and that, we know, is the primary place where kids are going” (audio - 6m, video)
      • Garza started off by crediting Rivers’ work in the senate, saying she “provided the leadership to take us to the place that we are with respect to regulating the cannabis industry.” Having said that, he highlighted that "we haven't always agreed, but we’ve made good changes." Garza told her that staff at WSLCB had worked “for seven to eight months” with stakeholders, and responded to criticism of their initial bill by including a definition for ‘impairing’ in subsequent iterations. He felt there was “broad support” for the legislation, save for “one trade association in the cannabis industry that opposes the bill.”,” while four other trade groups had given their support.
      • Rolfes asked for a clear answer on the outreach that had taken place since HB 1668 had failed weeks prior. Justin Nordhorn, WSLCB Director of Policy and External Affairs, spoke up to say that throughout the session they’d met with stakeholders “on a weekly basis,” including those from the hemp industry. He had found one challenge was that “nobody seems to want to look at the state's interest on this,” and that no one had wanted to “move off of…the issues” they’d raised. On the subject of defining ‘impairing,’ Nordhorn said staff had talked about the issue in the summer of 2021. Keiser chimed in to explain that she’d talk more “offline” but that she asserted there’d been “a dozen plus more meetings that have happened in between.”
      • Regarding convenience stores, Nordhorn acknowledged that there were “a number of them that do sell” cannabinoid products, but not all of them. He said the “predominant areas” WSLCB staff encountered the products were at “tobacco type of locations,” whereas convenience stores usually were classified “under a grocery store license.” According to Nordhorn, the resulting enforcement funding proposal was centered “around the areas” where they’d encountered the items already, but they were receptive to modifying that.
      • Rivers was the prime sponsor of SB 5052 in 2015 which merged the licensed adult use and unlicensed medical dispensary markets. She had previously cited her own family’s background with medical cannabis.
    • Vice Chair Steve Conway saw agreement on the need to regulate products in convenience stores, and asked if lawmakers could “push through” SB 5983 and follow up with lingering questions through “kind of a committee work within” WSLCB that would return with more recommendations. Rolfes felt his comment was better responded to outside of the limited time allotted for the bill hearing (audio - 1m, video).
    • Sheri Sawyer, Washington State Office of the Governor (WA Governor) Senior Policy Advisor (audio - 1m, video)
      • Sawyer conveyed the concerns of Governor Jay Inslee that the bill was “imperative to averting the serious health impacts that we’re starting to see across the country from converting hemp-derived CBD into delta-8, delta-9-THC or any other impairing cannabinoid" items. She considered it significant that so many cannabis trade associations backed the bill along with advocates from “with public health, and public safety - urging you to take action.” Sawyer asked lawmakers to confine impairing cannabinoids within the regulated system for cannabis, and allow enforcement against products outside that market.
    • Keiser was given the chance to testify on her bill near the conclusion of the hearing. She expressed gratitude to Rolfes for giving the bill a hearing and promised she would “be working on amendments for the bill’s executive session, scheduled for Monday March 7th (audio - 1m, video).

Information Set