WA Legislature - Update
(March 25, 2025)

WA Legislature - Update (March 25, 2025) - Takeaways

An unusual omnibus bill would be presented publicly on Tuesday along with the WSLCB data dashboard legislation and the production unionization bill before hearings on the freshly proposed operating budgets.

Here are some observations of the Washington State Legislature (WA Legislature) for Tuesday March 25th, the 72nd day of the 2025 regular session.

My top 2 takeaways:

  • Legislation to end the Department of Commerce program supporting ESOP transitions was introduced as planned on Monday, and no cannabis-related bills were staged for Tuesday.
    • HB 2047 - Rescinding ESOP Transition Support
      • On Monday, Democrat Representative Adison Richards introduced legislation which would eliminate State support for businesses transitioning to employee ownership models such as employee stock ownership plans (ESOPs), reclaiming remaining program funds.
      • The legislation was referred to the Washington State House Appropriations Committee (WA House APP) as planned.
      • On Monday, three Democrats signed on to co-sponsor the legislation.
      • At publication time, a public hearing on the legislation had not been announced.
    • The draft introduction reports in the House and the Senate for Tuesday March 25th did not appear to include any cannabis-related legislation.
  • On Tuesday, hearings were planned on three cannabis-related bills and public work on the operating budgets would begin in earnest in both chambers.
    • 8am: WA House FIN - Committee Meeting [ Event Details ]
      • Public Hearing
        • HB 2037 - Out of State Ownership + Social Equity Tax Preference + Cooperatives + Financial Interest
          • Representative Melanie Morgan introduced revenue generating legislation on March 13th—the day after the House of Origin Cutoff—which appeared to be an amalgamation of multiple concepts which had largely not been advanced in 2025.
          • Legislation can be designated “necessary to implement budgets” (NTIB) by chamber leaders to exempt it from the regular rules of order, loosely interpreted to mean a bill was projected to have a measurable fiscal impact.
          • As well, committee leaders sometimes schedule hearings on bills which cannot technically be advanced further during the first half of the legislative biennium to evaluate concepts and prepare members to consider the legislation during the subsequent short session.
    • 10:30am: WA Senate LC - Committee Meeting [ Event Details ]
    • 4pm: WA House APP - Committee Meeting [ Event Details ]
      • Public Hearing
        • HB 1198 - Operating Budget
          • See the bill text and bill analysis for more details.
          • On Friday March 21st, the House Democratic Caucus announced the outline of their 2025 operating budget proposal.  Washington State House Appropriations Committee (WA House APP) leaders hosted a media engagement early on Monday afternoon after the proposed substitute text was released [ TVW ].
          • Compared to the original bill text, the House proposed substitute included considerable belt tightening as well as several changes particular to the cannabis sector and disbursement of revenue from the dedicated cannabis account (DCA).
            • Two Washington State Liquor and Cannabis Board (WSLCB) line items regarding the systems modernization project (SMP) were excised:
              • “$9,019,000 is provided solely for the modernization of regulatory systems”
              • “$8,208,000…for the tax and fee systems replacement”
              • On Monday, WSLCB staff announced the next phase of the SMP rollout would commence at the end of March.
            • The Washington State Department of Agriculture (WSDA) disbursement from the DCA was removed and more limited funding for two programs was authorized from the general fund.
    • 4pm: WA Senate WM - Committee Meeting [ Event Details ]
      • Public Hearing
        • SB 5167 - Operating Budget
          • See the bill text and bill report for more details.
          • On Thursday March 20th, the Senate Democratic Caucus announced the outline of their 2025 operating budget proposal.  After the proposed substitute text was released, Washington State Senate Ways and Means Committee (WA Senate WM) leaders hosted a media engagement on Monday morning [ TVW ].
          • Compared to the original bill text, the Senate proposed substitute also included belt tightening as well as several changes particular to the cannabis sector and disbursement of revenue from the dedicated cannabis account (DCA).
            • Only one WSLCB line item regarding the systems modernization project (SMP) was excised:
              • “$9,019,000 is provided solely for the modernization of regulatory systems”
            • While the WSDA disbursement from the DCA was changed to the general fund, funding for the programs targeted in the House bill remained at current levels.
            • The WA HCA arranged for $2M to be added "to maintain prevention services that address underage drinking, cannabis and tobacco prevention, and opioid, prescription, and other drug misuse among individuals between the ages of 12 and 25."
          • During the press conference and in a broadcast announcement by the Senate Democratic Caucus, senators indicated their intention to convene a floor session on Saturday March 29th to amend, debate, and advance SB 5167.
            • In years past, House leadership then strikes the Senate bill, replacing it with the WA House APP version of the budget which had been advanced in parallel.  After floor debate, amendment, and passage in the House, a conference committee is called for and formed consisting of the budget leaders of the four caucuses who are tasked with forging the final bill.  The conference committee report is then presented to each chamber for final passage.