WA Legislature - Update
(January 27, 2023)

WA Legislature - Update (Jan 27, 2023) - Takeaways

Senators heard supportive testimony on a bill addressing retail theft and four new bills were prepared for introduction, including two targeting concentrated cannabis products.

Here are some observations of the Washington State Legislature (WA Legislature) for Friday January 27th, the 19th day of the 2023 Regular Session.

My top 3 takeaways:

  • On Thursday, senators on the Washington State Senate Labor and Commerce Committee (WA Senate LC) heard broad-based support for SB 5259 addressing organized retail theft, but conflicts remained.
    • One representative from the cannabis sector testified in support of the bill, Craft Cannabis Coalition Executive Director Adán Espino (audio - 1m, video), and one person signed in PRO not intending to testify (Herb Krohn, an Oregon-based transporter). No one signed in opposed to the bill amongst 131 people who registered their positions (testifying, not testifying).
    • While generally supported, there were tensions revealed within parts unrelated to the cannabis retail provisions. Non-cannabis retail owners and workers both want relief, but representatives of owners expressed concern about provisions related to prohibiting disciplinary action against employees for intervening during thefts. Negotiations were underway, but it's a hard problem that's caused hard feelings.
    • As a result of extended testimony on an earlier bill, executive sessions on SB 5080 (social equity) and SB 5123 (pre-employment testing) were postponed - the second and third times respectively that executive action has been delayed on those bills by this committee.
  • Four bills were scheduled for introduction on Friday, including legislation intended to make local override subject to popular vote and two bills taking aim at concentrated cannabis products.
    • SB 5608, “Concerning arrest protections for the medical use of cannabis,” would be introduced by Senator Patty Kuderer.
    • HB 1650, “Requiring voter approval for local government prohibitions on cannabis businesses,” would be introduced by Representative Sharon Wylie, a current co-chair of the Washington State Regulated Substances and Gaming Committee (WA House RSG) where the bill was set to be referred.
    • HB 1641, "Addressing public health challenges of high-potency cannabis products," would be introduced by Representative Lauren Davis accompanied by Representatives Dent, Leavitt, Harris, Callan, Eslick, Walen, and Ortiz-Self. The bill was positioned for referral to WA House RSG.
      • Like HB 1595 introduced on Wednesday January 25th by Representatives Kelly Chambers and Eric Robertson, HB 1641 envisioned revision of the excise tax by THC concentration - albeit in a more straightforward direction:
        • (1)(a) There is levied and collected a cannabis excise tax equal to
        • (i) 37 percent of the selling price on each retail sale in this state of cannabis concentrates, useable cannabis, and cannabis infused products, useable cannabis with a THC concentration less than 35 percent, and cannabis concentrates with a THC concentration less than 35 percent;
        • (ii) 50 percent of the selling price on each retail sale in this state of cannabis concentrates and useable cannabis with a THC concentration of 35 percent or greater but less than 60 percent; and
        • (iii) 65 percent of the selling price on each retail sale in this state of cannabis concentrates and useable cannabis with a THC concentration greater than 60 percent.
      • HB 1641 included additional provisions targeting products with a THC concentration above the 35% threshold.
        • No marketing of any products with > 35% THC concentration
        • No sales of any products with > 35% THC concentration to persons under the age of 25 unless they are “a qualifying patient or designated provider”; penalties are defined including license cancellation on the fourth strike within a 2 year period
        • Required educational materials at point of sale containing "accurate information"
        • New labeling requirements to be developed by WSLCB in consultation with the University of Washington Addictions, Drug, and Alcohol Institute (UW ADAI)  for products with > 35% THC concentration for application "in a prominent location that occupies at least 40 percent of the product container"
        • An additional $1M annually to the Washington State Department of Health (DOH) for educational campaigns
      • On Monday January 23rd, the Washington State Health Care Authority (WA HCA) published its “High THC policy | Final report” executed by the UW ADAI researchers, backdated to its December 31st due date. The number one recommendation articulated in the report was to “Implement excise tax levels proportional to total THC content in products with greater than 35 percent THC concentration.”
    • HB 1642, “Regulating the sale of cannabis concentrates,” would be introduced by Representative Lauren Davis accompanied by Representatives Dent, Leavitt, Harris, Callan, Eslick, and Walen. The bill was positioned for referral to WA House RSG.
      • This bill aimed to restrict sale of cannabis products with a THC concentration above the 35% threshold to registered patients and designated providers.
        • Except as provided in RCW 69.50.375(5), retail outlets may not sell cannabis concentrates with a THC concentration greater than 35 percent.
      • RCW 69.50.375(5) would state:
        • Only cannabis retailers who hold a medical cannabis endorsement issued under this section may sell cannabis concentrates with a THC concentration greater than 35 percent. Cannabis concentrates with a THC concentration greater than 35 percent may be sold only to qualifying patients and designated providers who are entered into the medical cannabis authorization database and who hold a valid recognition card.
      • At the UW ADAI Symposium on “High-THC Cannabis in Legal Regulated Markets” in September 2022, Davis promised further legislation would be needed to respond to "a generational increase" in mental health problems she attributed to high cannabinoid concentration items protected by a “predatory industry" which reflexively opposed product bans.
  • The agenda for the WA Senate LC meeting on Tuesday January 31st was significantly revised.
    • The public hearing on SB 5546 (cannabis commission) was removed. At publication time, the bill had not been rescheduled.
    • Four executive sessions were added, including the two bills postponed during the committee’s Thursday January 26th meeting and two bills scheduled to be heard on Monday January 30th.
      • SB 5080 - “Expanding and improving the social equity in cannabis program.”
      • SB 5123 - “Concerning the employment of individuals who lawfully consume cannabis.”
      • SB 5376 - “Allowing the sale of cannabis waste.”
      • SB 5405 - “Modifying the liquor and cannabis board's subpoena authority.”