WA Legislature - Update
(February 14, 2023)

WA Legislature - Update (Feb 14, 2023) - Takeaways

In the final week before the first policy committee cutoff, quite a few cannabis bills were positioned for late hearings and last minute executive sessions before Friday.

Here are some observations of the Washington State Legislature (WA Legislature) for Tuesday February 14th, the 37th day of the 2023 Regular Session.

My top 3 takeaways:

  • Four additional cannabis bills were scheduled for executive sessions in the final week before the house of origin policy committee cutoff on Friday February 17th.
    • HB 1772 - “Prohibiting products that combine alcohol and tetrahydrocannabinol.”
      • The recently introduced legislation received a quiet public hearing on Monday February 13th in the Washington State House Regulated Substances and Gaming Committee (WA House RSG) during which no one showed up to speak to the bill except the prime sponsor, committee member Representative Kevin Waters. His peers peppered him with questions about the bill which appeared to make existing law more explicit but the craft brewmaster eventually indicated it was an anticipatory effort to prohibit alcoholic beverages containing hemp-derived cannabinoids.
      • The perhaps unnecessary bill was scheduled for an executive session the next day on Tuesday February 14th.
    • HB 1614 - “Concerning the home cultivation of cannabis.”
    • HB 1650 - “Requiring voter approval for local government prohibitions on cannabis businesses.”
      • Heard on January 31st, the local control bill was scheduled for executive action on Thursday February 16th.
    • HB 1822 - “Concerning complimentary products provided by short-term rental operators to guests.”
      • Another bill introduced unusually late on Monday February 13th, legislation to authorize the gifting of a pre-roll to adult guests had already been scheduled to be heard on Tuesday February 14th. On Monday, the bill also had an executive session scheduled for Thursday February 16th.
      • Observing the WA House RSG committee meeting on Monday, it came to our attention that HB 1822 looks uncannily like a cannabis version of HB 1731, “Concerning complimentary liquor by short-term rental operators,” which would authorize the gifting of a bottle of wine to adult guests and was heard by members on February 9th. However, that bill would enable permit holders to purchase alcohol from wholesale distributors.
  • On Tuesday, cannabis policy committees in both chambers would continue their work hearing and moving bills.
    • WA Senate LC members planned to host executive sessions on two cannabis bills on Tuesday February 14th:
      • SB 5377 - “Concerning cannabis license ownership.”
        • Heard on Thursday February 9th, feedback on the bill to legalize out-of-state cannabis license ownership was divided: some companies anticipated benefits while others viewed the move as only helping larger entities.
        • Chair Keiser filed a proposed substitute to Senator Ann Rivers’ bill which was described as having the following effects:
          • “Specifies that LCB must suspend a cannabis producer license if no activity has been recorded on the license between July 1, 2021, and December 31, 2022, instead of limiting to no activity occurring after July 1, 2021.
          • Provides that “no activity” refers to a cannabis producer license with a Unified Business Identifier Number under which no business activity has been reported to DOR.
          • Requires LCB to deny a license or renewal to an entity when LCB is unable to investigate a nonresident rather than granting LCB permission to deny.”
      • SB 5546 - “Establishing a Washington state cannabis commission.”
        • Heard at the same time as SB 5377 on Thursday February 9th, prime sponsor Senator Sharon Shewmake made reasoned arguments for producer-led cannabis research, but industry members were divided over whether the time was right for a cannabis commodity commission.
        • Chair Keiser also proposed a substitute for SB 5546 which would directly address concerns voiced about the process for revising the producer assessment.
    • In addition to hearing HB 1822 and hosting an executive session on HB 1772, WA House RSG members also planned to potentially amend and move the interstate commerce bill.
      • HB 1159 - “Allowing interstate cannabis agreements.”
        • Prime sponsor and Co-Chair Sharon Wylie hoped to move an amendment with the following listed effects:
          • “Requires the coordination and enforcement of plans and actions related to interstate cannabis agreements to be consistent with Washington's policies and programs to redress inequities that exist from past cannabis prohibition and drug enforcement laws and to include steps to ensure equity in the application of agreements at all levels and in all jurisdictions that may interact with the licensed and unlicensed production and sale of cannabis.
          • Requires the Liquor and Cannabis Board to provide notice of the effective date of the bill's authorization for the Governor to enter into agreements with other states concerning crossjurisdictional cannabis activities to all cannabis licensees and pending applicants, and to inform them of how they may continue to be notified of activities and changes and proposed changes to laws and rules related to interstate cannabis agreements.”
        • Representative Kelly Chambers filed a proposed amendment which would make any producer’s heart smile:
          • “Specifies that on the effective date of the bill (which is contingent on federal law or policy changes regarding cannabis) licensed cannabis producers may produce cannabis without limitation on the maximum amount of space for cannabis production, the square feet of production canopy, or other restriction imposed by the Liquor and Cannabis Board (LCB) on the size of the producer's facility. Declares that, on the effective date of the bill, canopy limits imposed by the LCB by rule are declared null and void and are without force or effect.”