WA Senate LCTA - Committee Meeting
(January 20, 2022) - SB 5767 and SB 5547 - Public Hearing

Bull vs. Bear
[ Event Details ]

Two visions for the future of cannabinoid regulation were presented to senators, with testimony split between a measure developed by WACA members and WSLCB request legislation.

Here are some observations from the Thursday January 20th Washington State Senate Labor, Commerce, and Tribal Affairs Committee (WA Senate LCTA) Committee Meeting.

My top 3 takeaways:

  • WA Senate LCTA Counsel Matt Shepard-Koningsor gave staff briefings on both SB 5767, “Regulating hemp-derived cannabinoids,” and agency request legislation SB 5547, “Expanding regulatory authority over cannabinoids that may be impairing and providing for enhanced product safety and consumer information disclosure about marijuana products.”
    • The chemical conversion of hemp-derived cannabidiol (CBD) into synthesized tetrahydrocannabinol (THC) or other cannabinoid isomers like delta-8-THC had been a focus of the Washington State Liquor and Cannabis Board (WSLCB) since April 2021. CBD distillate was legalized as an additive for cannabis items in March 2018.
    • Actions of WSLCB leaders on the matter included:
    • By the fall of 2021, WSLCB staff and leaders of the Washington CannaBusiness Association (WACA) were engaged in an increasingly tense dialogue about how the state agency would regulate synthesized cannabinoids. On January 4th, leaders at WSLCB discussed prospects for their request bill and the potential for competing legislation drafted by WACA members.
    • Shepard-Koningsor went over the SB 5767 bill analysis (audio - 4m, video):
      • “Authorizes a marijuana processor to process and use hemp-derived cannabinoids, and add such cannabinoids to authorized marijuana products.
      • Extends civil and criminal protection under state law to marijuana processors performing certain authorized activities.
      • Requires marijuana licensees to comply with provided marijuana testing requirements.”
      • Shepard-Koningsor offered a short background on “over 80 unique cannabinoids,” including CBD and THC. Under existing statute, THC was defined as only delta-9-THC and tetrahydrocannabinolic acid, leaving a “regulatory uncertainty under the law” for other cannabinoids, Shepard-Koningsor explained. He stated that the bill added definitions in RCW 69.50:
        • "Cannabinoid" - “any of the chemical compounds that are the active constituents of the plant Cannabis including, but not limited to, tetrahydrocannabinol, tetrahydrocannabinolic acid, cannabidiol, cannabidiolic acid, cannabinol, cannabigeral, cannabichromence, cannabicyclol, cannabivarin, tetrahydrocannabivarin, cannabidivarin, cannabichromevarin, cannabigerovarin, cannabigerol monomethyl ether, cannabielsoin, and cannabicitran. Cannabinoids do not include artificial cannabinoids, as that term is defined in this section and in Schedules I through V of the Washington state controlled substances act.”
        • “Artificial cannabinoid" - “a cannabinoid that possesses either a similar chemical structure to any naturally occurring cannabinoid or exhibits agonist activity at one or more cannabinoid receptors and is not found in nature.”
        • "Naturally occurring cannabinoid" - “a cannabinoid found in the plant Cannabis.”
        • “Impairing cannabinoid means a substance containing a similar chemical structure to THC, and THC-similar molecules which possess significant binding activity to the body’s cannabinoid receptors and results in reliable, functional, impairment.” The definition in the bill was 30 lines long and identified several specific molecular arrangements, a target cannabinoid receptor, and “positive effects for all four components of the tetrad test in rodents or reliably causes functional impairment in humans as assayed by a method possessing scientific consensus.”
      • Shepard-Koningsor reported that the definition of a cannabis processor would change to allow for “processing and use of cannabinoids derived from hemp and hemp-derivatives” which could be added to cannabis products. Input material could come from unlicensed sources, he remarked, so long as the material had “a delta-9-THC concentration of 0.3% or less on a dry weight basis, excluding in-process hemp,” met testing requirements before final sale, and had been produced by “a licensed producer, handler, or processor in compliance with” a U.S. Department of Agriculture (USDA) authorized hemp plan, “a federally-recognized Indian Tribe with an approved plan, or a producer or supplier in compliance with any future federal or state hemp programs.” 
      • Licensed producers would be included in safe harbor provisions in RCW 69.50.363, said Shepard-Koningsor. The bill also allowed for “limited exceptions for wholesale sales and transfers of certain products between licensees, he indicated.
    • Shepard-Koningsor next briefed from the SB 5547 bill analysis (audio - 5m, video):
      • Permits WSLCB “to regulate products containing cannabis compounds, with limited exceptions, that may be impairing or marketed as impairing.
      • Requires LCB to adopt rules, in consultation with the state departments of Health and Agriculture, relative to the regulation of synthetically derived cannabinoids.
      • Expands the permitted activities of licensed marijuana producers, processors, and retailers regarding synthetically derived cannabinoids.
      • Permits licensed marijuana producers and licensed marijuana processors to use certain non-impairing cannabinoids as additives to authorized marijuana products.”
      • He mentioned that the companion bill, HB 1668, was heard on January 13th in the Washington State House Commerce and Gaming Committee (WA House COG) before reviewing definitions the bill would add:
        • "Plant cannabis" - “all plants of the genus Cannabis, including marijuana as defined in subsection (ff) of this section, and hemp as defined in RCW 15.140.020.”
        • "Cannabinoid" - Same as SB 5767.
        • "Artificial cannabinoid" - “a solely chemically created substance that does not originate from the plant Cannabis but is structurally the same or substantially similar to the molecular structure of any substance derived from the plant Cannabis that may be a cannabinoid receptor agonist and includes, but is not limited to, any material, compound, mixture, or preparation that is not listed as a controlled substance.” The 17 line definition indicates that “naturally occurring chemical substance[s]...separated from the plant Cannabis by a chemical or mechanical extraction,” cannabinoids “produced by decarboxylation from a naturally occurring cannabinoid acid without the use of a chemical catalyst,” or other “chemical substance[s] resembling in any manner a compound found in the plant Cannabis that is identified by the board in consultation with the department, by rule,” would not be classified as artificial cannabinoids. “Manufacturing and sales of artificial cannabinoids” would be prohibited, Shepard-Koningsor remarked.
        • “THC” - “includes all tetrahydrocannabinols that are artificially, synthetically, or naturally derived, including but not limited to delta-8 tetrahydrocannabinol, delta-9 tetrahydrocannabinol, delta-10 tetrahydrocannabinol, THCv tetrahydrocannabivarin, THCP tetrahydrocannabiphorol, THC-O-Acetate, and the optical isomers of THC cannabinoids.”
        • "Total THC" - “the sum of the percentage, by weight or volume measurement of tetrahydrocannabinolic acid multiplied by 0.877, plus, the percentage by weight or volume measurement of tetrahydrocannabinol.”
      • Shepard-Koningsor told the committee SB 5547 would also amend definitions for "CBD product," “marijuana,” licensee definitions, and “THC concentration,” which would no longer be limited to delta-9-THC. He acknowledged that the bill didn’t define "impairing cannabinoid."
      • The legislation would bar sales of products for human consumption exceeding 0.3% THC that “contains more than half a milligram per serving or 2 milligrams total, per package, of any potentially impairing cannabinoid,” he stated.
        • During interim work sessions for legislators in October and November 2021, WSLCB representatives drew attention to “the quantity of legal delta-9-THC that’s allowed to be in legal hemp products,” pointing out the “dry weight” criteria in the Farm Bill meant the possibility of obtaining “much more THC in a concentrated form.”
      • WSLCB staff would be required to conduct rulemaking to align new definitions and requirements, Shepard-Koningsor said, noting that “certain cannabinoid-containing products may only be sold by a Washington cannabis licensee, and only if in compliance with yet-to-be-adopted LCB rules.” The products couldn’t be sold to persons under 21, unless they were a medical cannabis patient, he added, though some items, like cannabis health and beauty aides, were exempted.
      • Changes would be made to each license type:
        • Licensed producers would be allowed to “prepare and propagate cannabis grown from seeds or clones of natural origin” and sell it for use by licensed processors.
        • Once rules were in place, processors could “compound or convert cannabis grown by a licensed producer” into synthesized cannabinoids.
        • Licensed retailers could sell cannabis products with synthesized non-impairing cannabinoids “as additives,” similar to how CBD was intended for use when lawmakers legalized its importation and use in cannabis in 2018.
      • The fiscal note prepared by WSLCB officials showed an impact of “$491,000 over the four-year outlook” from the dedicated marijuana account covering the employment of two full time employees (FTEs): one for handling “significant additional ongoing rulemaking,” and the other for an Enforcement Officer 2 (LEO2).
    • Shepard-Koningsor promised he was putting together a chart contrasting the bills, and Ranking Member Curtis King asked for confirmation the document would be forthcoming (audio - 1m, video).
    • As the bills were sufficiently similar and many testifiers requested to speak on both pieces of legislation, Chair Karen Keiser combined the public hearings.
  • Those supporting SB 5767 were consistently opposed to SB 5547, claiming the former’s definitions and impact on the cannabis sector would be better for both businesses and consumers.
    • Vice Chair Derek Stanford, the primary sponsor of SB 5767, had no illusions about the issues, admitting right away that “this is an area that is fairly complex." He said changes to the bill were already being contemplated for “an error in the THC concentration” and a “cap on THC content for products that are sold outside the regulated market.” Overall, his intentions for the legislation included (audio - 4m, video):
      • Impairing cannabinoids, regardless of type, “must not be sold outside of the regulated market”; he hoped to end “delta-8 gummies being sold in gas stations” which had “wide consensus and urgency.”
      • “Prohibit artificial cannabinoids in the regulated market”
      • “Allow naturally occurring cannabinoids in the regulated market,” including "synthetics as they’re defined in 5547."
      • The bill would “codify safety testing regulations which have taken an exceedingly long time to approach through rulemaking” which he understood had been a “real problem for industry and consumers in our state.”
      • “The goal is to do all of this clearly” and explicitly define “impairing cannabinoids" for licensees as “so many of the problems come from lack of clarity and lack of knowledge of what exactly the rules are and how they’re going to be enforced.”
      • Stanford described looking forward to hearing testimony, “especially around the synthetics” to see “how that approach could be improved.”
    • Pro SB 5767 and Con SB 5547 (8):
      • Joseph DuPuis, Doc and Yeti Urban Farms CEO and WACA Board Member 
        • DuPuis argued state officials needed “to actively engage to stay in front of the pack, [and] 5767 is designed to regulate the unfolding science of cannabis.” He found the state was “already flooded with products that claim to be cannabis that are untested, unregulated, and being sold outside the confines of the [Initiative-]502 market.” Considering the status quo to be “potentially harmful to public safety, [and] damaging to the regulated market," DuPuis said SB 5767 added requirements that could be “understood and relied on by manufacturers to be safely compliant with the law.” As the “hemp and marijuana industries are beginning to intersect nationwide," he believed the legislation would let these industries “continue to evolve” as opposed to continuing “a failed effort of prohibition” (audio - 2m, video).
        • As for SB 5547, DuPuis called the bill a "half-baked attempt to regulate effects of cannabinoids it doesn’t even pretend to define.” He claimed supporters of SB 5547 relied on “fear-based retort to villainize licensed cannabinoids and want you to be skeptical of innovation and chemistry they don’t understand.” He felt the bill was “weaponizing innovation" in order to “hold some businesses back so others can flourish.” A system picking “winners and losers” left DuPuis skeptical that a “safe, healthy, dynamic cannabis industry will survive” (audio - 1m, video).
      • Dylan Summers, Lazarus Naturals (audio - 1m, video) 
        • Speaking against SB 5547, Summers was appreciative of the work WSLCB leaders had put into the bill, but thought a lot needed to change including “the proposed definition for CBD product which contemplates its rather unfounded hemp D9 THC limitations when considering available research concerning the interactions between different cannabinoids and their impairing or intoxicating qualities.” He agreed that impairing cannabinoids needed to be regulated, however the language in the bill “oversteps what is reasonable and ultimately stands to eliminate eligibility for the most popular products in the greater national market, that is, minimally processed hemp products which deliver constituents of the hemp plant and within legal limitations as contemplated by federal law.” Summers believed SB 5767 was similar enough to the proposal in “intent, except that it’s much more finely tuned,” met “pragmatic needs of the industry and duly considers the concerns of stakeholders across many sectors” (audio - 2m, video). 
      • Mark Tegan, clēēn:tech Executive Director of Engineering 
        • A licensed processor in Seattle, Tegan said he supported SB 5767 as it was “developed with expert, objective support” and installed “guardrails” around cannabis that were “clear eyed where the market is today, and where it is heading.” Seeing the industry at “a crossroads,” he said the bill was “a way forward to ensure that products are safe to consume and made of what they claim to be made of” (audio - 1m, video).
        • Tegan was against SB 5547, finding it "may have been patched together in good faith" by people who didn’t understand the subject matter and “attempts to ignore the issue." He called the measure “short-sighted" as it "tries to rewind and erase innovation that has already happened” in the name of "public safety" and protecting licensed producers. Tegan didn’t believe claims of supporters that the legislation was “helping to protect from unknown products and manufacturers” (audio - 1m, video).
        • At publication time, clēēn:tech and clēēn:hemp were WACA members.
      • Jessica Tonani, Verda Bio CEO (audio - 3m, video)  
        • Tonani noted her participation in deliberative dialogues at WSLCB on cannabis plant chemistry, adding that an advanced call ahead of the event mostly focused on defining words like “psychoactive” and “impairing.” While the panelists understood the differences between THC and CBD, she said they “struggled with…defining those known unknowns.” As there were both “new cannabinoids” as well as “new chemistries to make old cannabinoids,” Tonani suggested clear definitions were crucial for regulatory enforcement and consumer understanding.
        • She argued that using the phrase "impairing" by itself was insufficient as it “was used to define Benadryl.” Since SB 5767 defined regulated compounds “based on chemical structure and function,” Tonani felt it was the superior bill as it wouldn’t require further rulemaking by WSLCB officials to implement.
      • Andy Brassington, Evergreen Herbal Owner and WACA Board of Trustees Vice President (audio - 3m, video) 
      • Vicki Christophersen, WACA Executive Director and Lobbyist (audio - 2m, video). 
        • Noting broad agreement that "no products with impairing properties should be sold” outside of the legal market and products should be tested before sale, Christophersen alleged that “some of the people testifying against [SB 5767] are those that have delayed those testing rules from being adopted.” Claiming she wanted more safety and transparency, Christophersen voiced opposition to allowing artificial cannabinoids in products, an activity outlawed under both bills.
        • Christophersen stated that SB 5767 recognized that “hemp and high-THC cannabis are from the same plant” and listed other states that regulate synthesized cannabinoids. She asked lawmakers to “perfect” the bill drafted by her members, and “put down” the agency request legislation.  
        • Senator Ann Rivers commented that if she bought strawberries “in December it’s because they’ve been hit with ethylene gas” and that other fruits had their ripeness preserved with other compounds without changing “what those products were.” As she was still unclear “what synthetic is or is not," she hoped that a clearer understanding of definitions could be reached by the committee (audio - 1m, video).
        • According to a January 5th email from WSLCB staff, WACA member Northwest Cannabis Solutions (NWCS) was among licensees whom WSLCB seized delta-8-THC products from in December 2021, specifically:
          • “51,718.84 G Delta 8 Distillate”
      • Kent Haehl, Atlas Group and Atlas Global Technologies LLC President and Unicorn Brands (audio - 3m, video)  
        • Haehl relayed that SB 5767 allowed for “products that we know, and products that we know are coming,” and disputed claims that adopting the bill would “crush regulated growers.” He insisted the bill would do more for public safety than SB 5547, and that SB 5767 would do “nothing to replace cannabis flower in the marketplace.”
        • Haehl pointed a finger at autoflowering cannabis varieties, “another grower innovation that was too successful,” claiming it had “flooded” the market and driven down cannabis prices - rather than the sale of cannabinoids converted from CBD.
        • Haehl spoke before the WSLCB board about his company’s use of synthetically-derived cannabinoids in July 2021 as well as at the webinar hosted by the agency on cannabinoid regulation that September.
        • According to a January 5th email from WSLCB staff, Unicorn Brands was among licensees whom WSLCB seized delta-8-THC products from in October 2021, specifically:
          • “14,996G Cartridges D8
          • 371,319G Oil”
        • At publication time, Atlas Global Technologies, Atlas Technology MFG Company, and Unicorn Brands were WACA members.
      • Bonny Jo Peterson, Industrial Hemp Association of Washington Executive Director (audio - 2m, video). 
        • Stating that she’d contributed to the drafting of SB 5767 “from the hemp end of things," Peterson reported that the USDA regulated hemp, though “the end product [is] not regulated.” She said of 115 hemp growers in Washington, “most are under one acre to do specific types of trials” for their crop. Peterson backed SB 5767’s definitions, and later added more comments about her opposition to SB 5547 (audio - 1m, video).
    • Pro 5767 (3):
      • Brad Douglass, The Werc Shop Vice President of Intellectual Property and Regulatory Affairs (audio - 2m, video). 
        • Douglass, another participant in WSLCB deliberative dialogues on the topic, explained that he was also a U.S. Food and Drug Administration (FDA) “affairs consultant for a decade.” He said that a benefit of the bill was the "clear regulatory authority for WSLCB over all impairing cannabinoids" as well as a definition for impairing cannabinoids themselves. Douglass felt “a hallmark of good legislation is the inclusion of enough detail to capture, outline, and define the key issues of a topic without being overly detailed, or prescriptive,” and SB 5767 had achieved this while leaving the agency responsible for some implementation.
        • Keiser inquired about the difference between artificial and synthetic compounds (audio - 1m, video).
        • According to a January 5th email from WSLCB staff, The Werc Shop was among licensees whom WSLCB seized delta-8-THC products from in November 2021, specifically:
          • “1,580 Delta 8 Patches
          • 1,281 - 8 ounce bottles Delta 8 drinks
          • 2,577.92 Grams Delta 8 Distallate”
      • Rick Dimmer, Happy Cafe LLC Owner (audio - 2m, video)
        • Dimmer said that he wanted “100% hemp-derived” cannabinoids to continue to be sold in his store. “Typically, when government takes action, there’s a lack of the whole story getting told and only hearing the loudest voices in the room, which tend[s] to be the competition,” he asserted. Saying the “true issue is public safety,” Dimmer believed the public could be protected while allowing sales of products with converted cannabinoids. Moreover, the items provided “diversity” to the cannabis sector, he commented, no different than “delta-9 when it entered the medical and regulatory markets.”
      • Robyn Tucker, Royal Vibes Cannabis Owner (audio - 2m, video)
        • Tucker remarked that she believed in transparency and safety, and that “all of our products are 100% hemp-derived and tested by accredited laboratories.” She was confident that “these compounds can be sold responsibly by non-licensed retailers” and said the U.S. Centers for Disease Control and Prevention (CDC) had “two recommendations for retailers selling cannabis products”: “detail the psychoactive qualities” and feature “pertinent information on the labeling.” Tucker described how her business purchased from hemp producers that were “2018 Farm Bill compliant” and had labeling with “milligrams, FDA disclaimers, ingredients, display adult use and testing.” She said this showed selling products with these compounds “can be done safely, and in compliance.”
    • Signed in but not testifying:
      • Pro SB 5767 and Con SB 5547 (4):
        • Paige Berger, Hygge Farm Owner
        • Troy Peterson, Apex Cannabis Co-Owner and WACA Board of Trustees Member
        • Russell Rosendal, Salal Credit Union CEO and WACA Associate Member Representative
        • Rachael Weygandt, Evergreen Herbal Compliance Manager and Project Coordinator
      • Pro SB 5767 (2):
      • Erik Johansen signed in opposed to SB 5547.
  • Aside from one speaker testifying as ‘other’ on SB 5547, those backing the agency request bill were uniformly opposed to SB 5767, which some alleged was drafted by interests already selling synthesized cannabinoids.
    • Pro/Other SB 5547 and Con SB 5767 (9):
      • Lukas Hunter, Harmony Farms Director of Compliance (audio - 4m, video) 
        • Hunter testified that the framers of I-502 hadn’t envisioned “such an innovative industry" when they proposed the legalization of cannabis. “In the past two years what we started to discover was a gray area of where out-of-state [and in-state] CBD” was converted to “a psychoactive cannabinoid, then…sold within our tightly regulated market,” he told the committee. As hemp farmers had “an unlimited cultivation canopy,” Hunter argued they could produce much more biomass than a tier 3 licensed producer, who could grow up to 30,000 square feet. The result was “a surplus of very cheap product” grown with minimal regulations “at scale,” he commented, in contrast to licensed “product which has such tight regulations that you can’t grow to the same scale.” Harmony Farms observed a “devaluation” of cannabis destined for extraction, Hunter said, “of 75 cents for what we would pay down to five cents a gram for what we would have to pay to be able to be competitive with conversion technology.”
        • Addressing the lack of a definition of “impairing” in SB 5547, Hunter, a former WSLCB employee, favored allowing agency staff to “work with subject matter experts…to define impairing and then further allow for there to be…an adaptive set of rules.” He believed a problem synthetic cannabinoids brought to the fore was an “inability to change statutory language during the interim.” Hunter wanted the agency to have the authority to change rules to fit the state’s “ever-expanding system” with more time than a legislative session allowed.
        • Hunter had “great fear" over continuing to permit CBD “to be brought into our tightly regulated system.” Though generally supportive of allowing hemp and cannabis production, he still found the differences in compliance costs meant allowing synthesized cannabinoids would “devastate our bottom line.” 
      • Shawn DeNae Wagenseller, Washington Bud Company Co-Owner and Washington Sun and Craft Growers Association (WSCA) Board Member (audio - 2m, video)
        • Wagenseller, long concerned about the market impact of CBD conversion, told legislators that “bringing in hemp is against the economic sustainability for our licensed cannabis growers.” She alleged that SB 5767 had “zero industry outreach” beyond WACA members, whom she said “admitted in house testimony it was written behind the scenes” after their “leadership was caught selling synthetic THCs into our closed market.” Wagenseller asked the committee not to “cater to these proven lawbreakers.” Wagenseller stated the compounds had already been outlawed under RCW 69.50.455, and asked legislators to “not allow the few that own the patents on synthetic innovation to use Washington citizens as guinea pigs.” She called the process a “modern version of synthetic snake oils,” alleging that there was no consumer demand for synthetic cannabinoids “and the underground is too poor to afford the patents and equipment to make them.”
        • Keiser asked speakers to not to “characterize people that are not on point here.”
      • Justin Nordhorn, WSLCB Director of Policy and External Affairs 
        • Speaking in opposition to SB 5767, Nordhorn said the proposal was in “direct contrast” with the agency request bill and wouldn’t “bring in the delta-8 products that are currently seen in many of the convenience stores” nor amend the definition of THC. He argued that the difference in the bills was “the way that the synthetics are identified in 5767 is it allows for them to be chemically created” more akin to “a cannabinoid made in a lab rather than a plant derivative.” He said the testing changes in SB 5767 took out “contaminant and toxin testing for hemp-derived products coming into the system” while requiring “marijuana flower to be tested with the heavy metals and pesticides” - but not hemp-derived products. He concluded the bill didn’t accomplish “the goals that were intended by trying to regulate these products” (audio - 2m, video).
        • Nordhorn remarked that SB 5547 had been requested by the agency to “bring all cannabinoids that may be impairing into the 502 marketplace” where there were stricter regulations to protect consumers and stop sales to minors. He noted the legislation allowed for “opportunities for licensees to have other non-impairing cannabinoids come into the system, however they would not be able to convert those further from those hemp-derived products.” Nordhorn asserted there would be “potential future opportunities” for cannabinoid conversion “if it comes from marijuana” produced in the state. He indicated that rulemaking on cannabis testing was underway, and there would be a public hearing on February 2nd, with changes “likely to be implemented before the end of session, and that had a nine month work with stakeholders,” unlike SB 5767 (audio - 2m, video). 
        • Rivers asked how long WSLCB rulemaking to implement SB 5547 was expected to take. He replied that the rule changes from the bill had several “components” and would start once the legislation passed, but rules for conversions of cannabinoids would “take a little bit of time" to work with staff from the departments of health and agriculture to be certain products could be sold without “unknown byproducts." Rivers wondered if it would be "years like it took for the testing labs, or 10 months, or 18 months?" Nordhorn conveyed “probably more towards the 18 month line.” He said rules for other topics would “likely be done earlier,” adding that the prolonged testing rulemaking at WSLCB had a “tremendous amount of stakeholder involvement” to find a balance for “the consumer and the industry.” Nordhorn reported that SB 5767 used “an old draft of our [quality control] rules and does not address a number of the stakeholder comments and concerns” (audio - 3m, video).
      • Caitlein Ryan, The Cannabis Alliance Interim Executive Director (audio - 2m, video) 
      • Jeremy Moberg, CannaSol Farms Owner and WSCA Board Member (audio - 2m, video) 
        • Moberg felt that cannabis producers hadn't “really been considered in this debate,” heretofore the basis of “a closed system" which licensees had “put our entire lives into." He called SB 5767 a “run around” that would make “matters much, much worse" and be "a real assault to farmers.” Moberg said his crop was held to higher standards than imported hemp and the impact SB 5767 could have on cannabis growers was “the crux of the issue.” He encouraged passage of SB 5547 to keep regulatory authority consistent for the sector.
      • Ezra Eickmeyer, Producers NW Political Director (audio - 2m, video). 
        • Eickmeyer supported SB 5547, explaining the situation had been “scary for us” as licensees who sold cannabis material “for extraction saw the market just swiped out from under them.” He described the steps which had led to the use of synthesized cannabinoids in legal cannabis items as a cheaper alternative to licensed cannabis biomass. Eickmeyer insisted SB 5767 would “keep the door open for more of that in the future," posing a “threat” to the closed system for cannabis production which needed to be stopped, rather than indulged.
      • Gillian Schauer, Cannabis Regulators Association (CANNRA) Executive Director (audio - 3m, video)  
        • Schauer noted her background on cannabis policy, and said that SB 5767 wouldn’t broaden WSLCB “authority beyond delta-9-THC” and instead would make “a range of cannabinoids being derived from hemp chemically legal on the I-502 market without affording LCB the authority to determine whether or not they’re safe for consumers.” SB 5547 would bring the cannabinoids under the agency’s purview, she testified, and let that agency’s staff work with stakeholders to determine which were safe for consumers. “Just because delta-8 occurs naturally in the plant…does not mean everyone who will manufacture it chemically in extracts can do so in ways that are safe for human consumption,” Schauer said. Processes used to synthesize cannabinoids had “been shown to result in a number of byproducts that are unknown and unidentifiable,” she warned, yet would be authorized under SB 5767. Schauer also preferred a definition for impairing cannabinoid be placed in rule where it could be updated more easily based “on how rapidly we’re seeing the hemp industry innovate.” She claimed “other states have acted on this issue in ways that I believe balance the protection of innovation and consumer safety.”
          • Schauer testified to the Oregon State House General Government Committee in March 2021 in support of HB 3000, similar legislation which was subsequently passed and implemented by Oregon Liquor Control Commission (OLCC) leaders. The administrative rules have been described as allowing “for some artificially derived cannabinoids in limited circumstances to be produced and transferred by OLCC licensees and sold at OLCC dispensaries.” However, those cannabinoids would only be allowed after a rigorous three-step approval process likely gated by judgment on particular synthesized cannabinoids by the U.S. Food and Drug Administration.
      • Bob Cooper, Washington Association for Substance Abuse & Violence Prevention (WASAVP) Lobbyist (audio - 1m, video) 
      • Micah Sherman, Raven Co-Owner and WSCA Board Member (audio - 3m, video) 
        • Opposed to SB 5767, Sherman said the bill would bring “synthetic drug development techniques into” the I-502 market and attempted “to disguise these synthetic cannabinoids as natural.” He stressed that his opposition to synthesized cannabinoids was more “about the conversion process in the laboratory…it is immaterial where the isolated molecule originated from, the important distinction is its manufacturing process that it underwent.”
        • Sherman relayed that he signed up as ‘other’ on SB 5547 as he still had “mild concerns” with the language, though he mentioned working with staff to improve it.
    • Con SB 5767 (1):
      • Taylor Balduff, Forbidden Farms Owner (audio - 1m, video) 
        • Telling the committee that cannabis producers were "already in dire straits” and had seen crop prices “diminish rapidly," Balduff took issue with comments by Haehl on autoflowering cannabis resulting in overproduction. He called the charge “absolutely false" and agreed with Eickmeyer’s remarks.
    • SB 5547 - Pro (3):
      • Rick Garza, WSLCB Director (audio - 3m, video)  
        • Acknowledging that “everyone recognizes that delta-8 gummies…need to be removed [from unlicensed stores] and brought into regulated marketplace,” Garza said agency staff “spent months” engaging with stakeholders to draft SB 5547, whereas no one at WSLCB had seen SB 5767 until “six days ago for the first time.”
        • “In late 2021,” Garza stated WSLCB officials “seized 1,900 pounds, about a ton of hemp-derived delta-9-THC from one licensed processor” but not before “the bulk of the product was sold to other processors.” He noted there’d been a “glut of CBD in Washington and nationwide," and chemical conversion “from CBD is much cheaper than extracting the plant in its natural state.” He suggested synthesizing cannabinoids was like “creating apple juice without apples" and that cannabis items should “come from the marijuana plant, produced by growers holding a valid cannabis license and with the oversight to protect consumers and prevent youth access.” Garza felt permitting CBD “as more than just an additive” would eventually mean “there will never need to be a purchase from a licensed grower” and concluded that “synthetically-derived THC guised as innovation will do nothing but harm the industry we regulate.”
        • Stanford asked about “the length of time it takes to enact things through rulemaking around defining impairing and non-impairing cannabinoids” as he was under the impression that WSLCB staff were “less flexible” on the topic. Garza said input “from the entire industry” (which “often isn’t in agreement”) took time. He remained open to adopting a definition of impairing - “then possibly give the board the rulemaking authority to adjust that” (audio - 2m, video). 
      • Adán Espino, Craft Cannabis Council (CCC) Executive Director (audio - 1m, video) 
        • Espino said retail store owners didn’t “want risky or ill-regulated products in our stores,” and CCC members believed SB 5547 would lead to safer items on the shelves.
      • Paula Sardinas, FMS Global Strategies President and Washington Build Back Black Alliance (WBBBA, audio - 1m, video)
        • Echoing Garza’s sentiments, Sardinas said WBBBA represented “a lot of organizations that serve kids and youth” and were concerned about prevention. She explained that she was “very supportive” of SB 5547 and thanked the sponsors.
    • Signed in but not testifying:

Information Set