WA Legislature - Update
(February 29, 2024)

WA Legislature - Update (February 29, 2024) - Takeaways

The WSDA testing lab accreditation bill was passed and two more cannabis bills were calendared for floor activity as the House of Origin Cutoff loomed on Friday.

Here are some observations of the Washington State Legislature (WA Legislature) for Thursday February 29th, the 53rd day of the 2024 regular session.

My top 3 takeaways:

  • On Wednesday, senators passed the Washington State Department of Agriculture (WSDA) request legislation to transfer responsibility for accreditation of cannabis testing labs to the department.
    • HB 2151 - "Reassigning the accreditation of private cannabis testing laboratories from the department of ecology to the department of agriculture."
      • In her remarks, President Pro Tempore Karen Keiser recalled the DDT scare which legislators had been called to address at the conclusion of the 2023 session to emphasize the necessity of a well regulated market with trustworthy testing regimes.  Republican Senator Curtis King concurred with the move.
      • Senators voted unanimously to pass the legislation.  As there were no changes made in the Senate, the bill would become law subject to signatures from chamber leaders and with the Governor’s approval.
      • Later that day, WSDA staff announced informational sessions and opportunities to provide feedback had been scheduled for March 14th and March 27th.
  • Late on Wednesday, the patient excise tax exemption and cannabis waste bills were calendared in their respective chambers.
    • HB 1453 - "Providing a tax exemption for medical cannabis patients."
      • During the Washington State Senate Rules Committee (WA Senate RULE) meeting after adjournment on Wednesday evening, Keiser used her member pull to advance HB 1453 - but not before a divided discussion on anticipated impacts of the measure (video - TVW).
        • Keiser briefly called the legislation “a well worked bill” and recalled that the Senate had passed similar legislation during two prior sessions.
        • Republican Leader John Braun recollected “the chaos we experienced shortly after the voter approved Initiative in 2012 where we had little green signs popping up everywhere” and “folks without real medical conditions, you know, going online and getting cards.”  Braun then shared that the Republican caucus had conducted their own “experiment” and shared their anecdotal evidence that “it appears it is pretty easy to get a card and avoid the 37% excise tax.”  He raised the specter of “substantial impact” on the roughly $1B in revenue Washington State collects each biennium from recreational cannabis consumers via the highest excise tax in the country.
          • Senate President and Committee Chair Denny Heck confirmed, “you did an experiment in your caucus?”  Braun replied, “we’re very inquisitive folks,” adding, “we didn’t actually hit the ‘buy’ button” as members laughed.
        • Democrat Senator Annette Cleveland pointed out the potential revenue impact had been estimated at 1% and would benefit low-income consumers with qualifying medical conditions.
        • Republican Senator Ann Rivers foretold, “if we see this bill pass, we will see the number of patients skyrocket from 1% to 75% just like it was in 2012.”
        • Keiser felt compelled to clarify, “we do have a regulated market now” and medical grade products certified by the Washington State Department of Health (DOH) were tested to higher standards.  She then claimed, “99% of them are low THC, they are not the kind of products that get you high.”  Rivers remarked, “agree to disagree.”
        • Heck brought the discussion to a close, comparatively extended for a WA Senate RULE meeting, and the measure was passed in a partisan voice vote.
      • At publication time, all eligible cannabis bills had been pulled out of WA Senate RULE and awaited floor action in the Senate.
    • SB 5376 - "Allowing the sale of cannabis waste."
  • On Thursday, lawmakers would convene floor sessions to debate, amend, and vote on legislation ahead of the Opposite House Cutoff on Friday at 5pm PT.
    • The Washington State House of Representatives (WA House) was scheduled to convene starting at 9am PT and the Washington State Senate (WA Senate) at 9am PT.
      • Two bills were well positioned for floor activity in the Senate.  At publication time, there were no published floor amendments on the bills.
        • HB 1453 - "Providing a tax exemption for medical cannabis patients."
          • At publication time, there were no published floor amendments on the bill.
        • HB 2320 - “Concerning high THC cannabis products.”
          • Keiser published a proposed floor amendment to incorporate the data collection and reporting component of SB 6271 (“Modifying the cannabis excise tax to consider THC concentration”) into the remaining “high THC” bill.
          • Its effects were described as: “Requires the Liquor and Cannabis Board to collect data on sales of cannabis products, including the amount of products sold in each category, the average tetrahydrocannabinol (THC) concentration of products sold in each category, and the range of THC concentration in usable cannabis and cannabis concentrates, with a report due in November 2025.”
      • One bill was well positioned for floor activity in the House.  At publication time, there were no published floor amendments on the bill.
        • SB 5376 - "Allowing the sale of cannabis waste."
    • Two bills awaited pulls from WA House RUL members or chamber leadership.  At publication time, there were no published floor amendments on any of the bills.
      • SB 5363 - “Concerning cannabis retailer advertising.”
      • SB 6133 - “Deterring robberies from cannabis retail establishments.”
    • The sixth gateway that most cannabis bills must be shepherded through would occur on Friday and was described as the “Last day to consider (pass) opposite house bills (5 p.m.) (except initiatives and alternatives to initiatives, budgets and matters necessary to implement budgets, differences between the houses, and matters incident to the interim and closing of the session).”
      • Legislation can be declared "necessary to implement budgets" (NTIB).
      • Inactive bills can also have language incorporated into budget legislation via provisos to achieve identical effects.
        • On Tuesday, WSLCB leadership discussed bills which might be included as budget provisos to address issues like cannabis inversion and diversion, a data dashboard of regulated substances, or a tax study on “high THC [tetrahydrocannabinol]” products.