Four cannabis bills were primed for the regular session of the Washington State Legislature which began Monday under burdened conditions given new legislators, fiscal constraints, and national foreboding.
Here are some observations of the Washington State Legislature (WA Legislature) for Monday January 13th, the 1st day of the 2025 regular session.
My top 3 takeaways:
- While each legislative session gathers a unique composition of lawmakers and policy issues to address, the 2025 session would be undertaken by a significantly changed body facing a uniquely challenging environment.
- While turnover in the legislature is common following an election, the Washington State Standard noted that 31 of 147 members were new to their chamber, or the legislature entirely.
- Subsequent to the election, there were a notable number of appointments to positions vacated by former legislatorswho won or were appointed to government roles elsewhere.
- Senator Karen Keiser, the longtime chair of the Washington State Senate Labor and Commerce Committee (WA Senate LC), retired in December and was replaced by Representative Tina Orwall. The Senate Democratic Caucus elected Senator Rebecca Saldaña to replace Keiser as WA Senate LC Chair.
- Furthermore, the Washington State House Consumer Protection and Business Committee (WA House CPB) would take over as that chamber’s cannabis policy committee following several sessions of the topic being handled by the defunct Regulated Substances and Gaming Committee (WA House RSG), and previously the Commerce and Gaming Committee.
- A largely new slate of legislators would be responsible for initially considering cannabis policy issues in the House, at least according to an early committee membership list showing Democratic Representatives Shelley Kloba, Melanie Morgan, and Kristine Reeves as the only WA House CPB members bringing experience from WA House RSG.
- However, it was Cannabis Observer’s understanding that longtime WA House RSG Staff Counsel Peter Clodfelter would be assigned to WA House CPB, bringing substantial operational cannabis policy knowledge to the committee.
- Top of mind for elected and appointed officials would be a projected budget shortfall which would require members to reduce State spending and almost certainly increase taxes.
- The Washington State Liquor and Cannabis Board (WSLCB) participated in a budget exercise in late 2024, although much agency funding comes from revenue sources like the cannabis excise tax. The proposed budget from the outgoing governor indicated that spending on areas such as traceability and the systems modernization project (SMP) may get reduced budget allotments.
- On Thursday January 8th, Governor-Elect Bob Ferguson released his budget priorities which were described as “proposing to slash spending while also making new investments in housing, ferries, public safety and more,” with other savings coming from “sweeping $75 million from regulatory and civil law enforcement agencies, including from the Attorney General’s Office,” which Ferguson led from 2013.
- Ferguson’s inauguration followed Inslee’s 12 years as governor, the longest gubernatorial administration in state history. Although parts of the cannabis legalization initiative took effect weeks before Inslee became governor, Ferguson’s election marked the first change in executive leadership since cannabis was legalized by voters in 2012.
- Ferguson was scheduled to be inaugurated on Wednesday January 15th during a joint session of the legislature to be broadcast on TVW. He planned to offer his first speech as governor to articulate his administration’s agenda for 2025, followed by an inaugural ball at the capitol building.
- Relatedly, the appointment of former Board Chair David Postman as chief of staff to incoming attorney general Nick Brown created a vacancy at WSLCB filled in December when Board Member Jim Vollendroff was appointed by Inslee to move up to the position of chair. At publication time, agency leaders awaited the announcement of Ferguson’s first appointment of a WSLCB board member to occupy Vollendroff’s former position.
- In the 2024 general election, Washington Democrats increased their membership in both chambers. However, as the Republican party won unified control of Congress and the White House, Postman and others expected State officials would have to contend with law and policy changes at the national level at odds with the interests of most Washington voters.
- A considerable amount of legislation was pre-filed in the month leading up to the first day of session, but only four cannabis bills appeared among their ranks.
- HB 1066 - “Creating a data dashboard to track use of regulated substances.”
- WSLCB Data Dashboards
- Representative Kristine Reeves was early to pre-file a reprise of her 2023-24 legislation HB 2182 which was passed by the House but did not receive a policy committee hearing in the Senate.
- In the interim, the WSLCB Research Program undertook the development of public-facing data dashboards, presenting the first two on cannabis use and revenue on January 7th.
- HB 1067 - “Transferring certain cannabis licensing activities to the department of agriculture.”
- Cannabis Production Authority Transfer
- Reeves also pre-filed a revision of her legislation HB 2334 which was heard but not advanced by WA House RSG in 2024.
- HB 1141 - “Concerning collective bargaining for agricultural cannabis workers.”
- Cannabis Production Unions
- Representative Lillian Ortiz-Self pre-filed lengthy legislation which would empower certain cannabis producer and producer/processor employees to collectively organize, granting oversight authority to the Public Employment Relations Commission (WA PERC) - an unusual choice perhaps required by the vacuum of federal oversight of the cannabis sector.
- SB 5206 - “Concerning cannabis retailer advertising.”
- Cannabis Retailer Advertising
- Senator Drew MacEwen prefiled the only cannabis-related legislation in the Senate, a reprise of his 2023-24 bill SB 5363 which was not advanced by representatives prior to the opposite house cutoff in 2024.
- At publication time, it was Cannabis Observer’s understanding that quite a few cannabis-related bills were waiting in the wings, planned for introduction after the beginning of session.
- But given budget concerns would likely dominate the attention of legislators in 2025; the uphill effort required to educate new legislators on often complex cannabis policy considerations; and consistent power dynamics across a sector that had historically struggled to establish, maintain, and communicate unified positions - it was unclear how much attention cannabis-related legislation would receive in 2025.
- However, given perceptions of persistent dysfunction at WSLCB as evidenced by senior leadership and staff turnover; backlogged rulemaking; competing internal power fiefdoms; and poor collaboration with peer agencies, legislators may have an appetite for considering structural remedies and authority transfers at what had traditionally been the primary cannabis regulator in Washington state.
- Supplemental operating budget legislation to revise 2023-25 fiscal biennium appropriations (HB 1197, SB 5166) as well as the 2025-27 operating budget bills (HB 1198, SB 5167) were pre-filed in both chambers and would have their initial policy committee public hearings during the first week of session.
- Notably, a conflict introduced around the appropriation to the Washington State Health Care Authority (WA HCA) made in 2024 in relation to HB 2320 (“Concerning high THC cannabis products”) would be clarified in the House version of the supplemental operating budget, removing the presumptive designation of the funds for the University of Washington Addictions, Drug, and Alcohol Institute (UW ADAI) to comport the budget with the session law requirement that WA HCA issue a competitive request for proposals (RFP).
- There were a few cannabis-adjacent bills concerning agriculture, criminal justice, and other substances regulated by the WSLCB which could have indirect implications for the sector.
- All pre-filed bills were scheduled for introduction on Monday.
- HB 1066 - “Creating a data dashboard to track use of regulated substances.”
- In addition to initial administrative tasks required to establish the context for the session, the preliminary schedule for the first week detailed policy committee work sessions and public hearings for three of the four pre-filed cannabis bills as well as the budgets.
- Monday January 13th
- 12pm: WA Senate - Opening Ceremonies [ TVW ]
- 12pm: WA House - Opening Ceremonies [ TVW ]
- 4pm: WA House APP - Committee Meeting [ Event Details ]
- Tuesday January 14th
- 10:15am: WA Legislature - Joint Session [ TVW ]
- State of the State Address by outgoing Governor Jay Inslee
- 1:30pm: WA House CPB - Committee Meeting [ Event Details ]
- Work Session
- "Alcohol and Tobacco Policy and Regulatory Overview."
- Public Hearing
- HB 1066 - WSLCB Data Dashboard
- Work Session
- 4pm: WA Senate WM - Committee Meeting [ Event Details ]
- 10:15am: WA Legislature - Joint Session [ TVW ]
- Wednesday January 15th
- 8am: WA House LAWS - Committee Meeting [ Event Details ]
- Public Hearing
- HB 1141 - Cannabis Production Unions
- Public Hearing
- 11:15am: WA Legislature - Joint Session [ TVW ]
- Inaugural Address of Governor-Elect Bob Ferguson
- 8am: WA House LAWS - Committee Meeting [ Event Details ]
- Friday January 17th
- 8am: WA House CPB - Committee Meeting [ Event Details ]
- Public Hearing
- HB 1067 - Cannabis Producer Authority Transfer
- Public Hearing
- 8am: WA House CPB - Committee Meeting [ Event Details ]
- Monday January 13th