WA Senate LC - Committee Meeting
(February 6, 2023)

Monday February 6, 2023 10:30 AM - 12:30 PM Observed
Washington State Senate Logo

The Washington State Senate Labor and Commerce Committee (WA Senate LC) considers issues relating to labor issues, including unemployment insurance, industrial insurance/workers’ compensation, prevailing wage, collective bargaining, worker rights and benefits, and the Washington Cares Act.  The committee also considers commerce issues, including the regulation of certain professions and businesses, and alcohol, tobacco, and cannabis.

Public Hearing

  • SB 5662 - “Creating the cannabis employee job retention act.”

Observations

Proponents of a 2022 Seattle law on cannabis worker retention policies backed legislation expanding the mandate, but business associations warned against singling out one industry.

Here are some observations from the Monday February 6th Washington State Senate Labor and Commerce Committee (WA Senate LC) Committee Meeting.

My top 3 takeaways:

  • The staff briefing on SB 5662, “Creating the cannabis employee job retention act,” indicated the bill was largely similar to Seattle ordinances passed in 2022 related to worker considerations when cannabis licenses were assumed by different owners (audio - 3m, video).
    • In February 2022, members of the Seattle City Council Finance and Housing Committee started hearing public concerns on worker retention and training in cannabis retail, and how that was impacting labor and social equity in the industry. Learning more aboutthe situationand gettinginput fromcity officials and the mayor’s office, the committee recommended threeordinances that August, then the full City Counciladopted a trio of ordinances in September. Of these, two focused on worker training and retention during cannabis business ownership changes, also called license assumption:
      • CB 120391 - "AN ORDINANCE establishing the City’s commitments and plans for supporting cannabis workers and supporting communities disproportionately harmed by the federal War on Drugs."
      • CB 120393 - "AN ORDINANCE relating to employment in Seattle; adding a new Chapter 8.38 to the Seattle Municipal Code; and amending Sections 3.02.125 and 14.20.025 of the Seattle Municipal Code."
      • The council also passed a social equity-centered ordinance at that time: CB 120392 - "AN ORDINANCE relating to licensing cannabis businesses in Seattle; establishing social equity applicant criteria for cannabis businesses; setting fees for cannabis businesses; expanding the purposes for which a cannabis license may be issued in the future; updating references in the code to ‘cannabis’; and amending Chapter 6.500 of the Seattle Municipal Code."
    • During the WA Senate LC hearing, Senior Staff Counsel Susan Jones mentioned the Seattle ordinance for worker retention along with another local law to support hotel workers retention before relaying detail in the bill analysis, which stated the legislation:
      • Creates the Cannabis Employee Job Retention Act to be administered by the Department of Labor and Industries (L&I).
      • Requires certain outgoing cannabis employers to provide, and certain incoming cannabis employers to utilize, a preferential hiring list when the cannabis business undergoes a change in control, and contains additional provisions regarding notice, compliance, records, protected rights, enforcement, appeals, and penalties.
  • Two cannabis sector workers and a labor union negotiator spoke to the merits of the bill, calling it a way to add stability to a labor sector where they alleged workers were laid off during ownership changes and infrequently offered opportunities to reapply for their former positions.
    • Eight individuals registered their support for the bill (testifying, not testifying).
    • Sponsoring Senator Rebecca Saldaña said the subject matter of the law was “how I first got into cannabis…my first or second year here, looking at the cannabis industry, and how do we create more pathways for opportunities” for the workforce. Her aim was to further develop a cannabis “workforce, who are part of our community, [to] have an opportunity to continue to benefit” and “keep their jobs” during ownership transitions (audio - 2m, video).
    • A panel of speakers shared stories of challenges they’d faced during ownership changes in cannabis retailers, including claims one licensee closed a store with three weeks notice, telling staff “good luck with the rest of your careers” and leaving them to re-apply with a new owner. Changes in license ownership could “destabilize” employee livelihoods and hurt worker retention in “the largest part of this workforce, the more than 20,000 front line, essential workers in the cannabis industry.”
    • All three previously provided comments to Seattle officials during their development of ordinances in 2022:

Engagement Options

In-Person

Cherberg Building, 15th Avenue Southwest, Olympia, WA, USA

Hearing Room 1

Information Set