On Tuesday April 16th, the House called SB 5318 up for its second reading allowing floor amendments to be proposed, debated, and voted upon.
- See Cannabis Observer’s committee report cutoff summary for SB 5318 – “Reforming the compliance and enforcement provisions for marijuana licensees” (video):
- 5318-S.E AMH STAN CLOD 054 from Representative Derek Stanford was adopted. Its effect on the bill is broad:
- Strikes the word “intentional” from the provisions related to a violation involving the intentional furnishing of marijuana product to minors, so the Liquor and Cannabis Board (LCB) must prove by a preponderance of the evidence a licensee furnished marijuana product to minors, but not that the action was intentional, for the LCB to issue a marijuana licensee a civil penalty without first issuing a notice of correction, cancel a license for a single violation, or consider violations that occurred more than two years prior as grounds for license denial, suspension, revocation, cancellation, or nonrenewal.
- Modifies the provisions regarding employee misconduct leading to a violation, to provide that the LCB must give substantial consideration to mitigating any penalty imposed on a licensee when there is employee misconduct that led to the violation and the licensee: (1) established a compliance program designed to prevent the violation; (2) performed meaningful training with employees designed to prevent the violation; and (3) had not enabled or ignored the violation or other similar violations in the past.
- Adds the following circumstances when the LCB may issue a civil penalty to a marijuana licensee without first issuing a notice of correction, cancel a license for a single violation, or consider violations occurring more than two years prior in making licensing decisions: Knowingly making a misrepresentation of fact to the LCB, an officer of the LCB, or an employee of the LCB related to conduct or an action that is, or alleged to be, any of four specific violations identified in the act (i.e., diversion of marijuana product to the illicit market; furnishing of marijuana to minors; diversion of revenue to criminal enterprises; or the commission of nonmarijuana-related crimes).
- 5318-S.E AMH STAN CLOD 054 from Representative Derek Stanford was adopted. Its effect on the bill is broad:
- Striking amendment 5318-S.E AMH ENGR H2875.E from the Appropriations Committee was adopted and engrossed.
- After amending, House rules were suspended to jump to the bill’s third reading and vote. After favorable testimony from multiple members of the House Commerce and Gaming Committee, ESSB 5318 was passed by the House with 88 yea votes; eight nays, and two absent or excused. Read the final House Bill Report and updated Senate Bill Report.
- Differences in the bill versions passed by each chamber will likely necessitate a vote to concur by one chamber to agree with the other chamber’s version, or conference committee with members from each chamber negotiating a new version of the bill to be voted upon.