WA Legislature - Update
(February 4, 2025)

WA Legislature - Update (February 4, 2025) - Takeaways

Five cannabis-related bills were scheduled for hearings on Tuesday, two bills would be introduced seeking to increase local control, and the Vice Chair of the cannabis policy committee in the House was replaced.

Here are some observations of the Washington State Legislature (WA Legislature) for Tuesday February 4th, the 23rd day of the 2025 regular session.

My top 3 takeaways:

  • On Monday, Representative David Hackney, Vice Chair of the Washington State House Consumer Protection and Business Committee (WA House CPB), had his committee assignments rescinded and reappointed after an extended absence which began during the second week of the regular session.
    • At publication time, the reason for Hackney’s absence remained undisclosed.
    • On Monday during the pro forma House floor session, the draft journal for the day indicated three announcements were made “to replace Representative Hackney” on the committees to which he had been assigned.
      • Deputy Majority Floor Leader Mary Fosse was appointed to fill his position on WA House CPB, the primary cannabis policy committee in that chamber.
    • During Hackney’s absence, Representative Kristine Reeves had been WA House CPB Acting Vice Chair, a committee role she had previously fulfilled during the 2023-24 biennium.  But as Reeves was also Chair of the Washington State House Agriculture and Natural Resources Committee (WA House AGNR) in 2025, it would be unusual for her to also continue the Vice Chair role in WA House CPB.
    • Hackney was the prime sponsor of two cannabis-related bills, both up for initial public hearings in WA House CPB on Tuesday:
  • Two cannabis-related bills regarding local control were staged for introduction by Republican officials on Tuesday.
    • HB 1835 - “Aligning cannabis licensing decisions by the liquor and cannabis board with local zoning ordinances.”
      • Local Override of State Cannabis Licensing
      • Assistant Minority Whip Brian Burnett planned to introduce legislation that would allow elected officials of local jurisdictions and federally recognized tribes to override Washington State Liquor and Cannabis Board (WSLCB) cannabis business licensing decisions with a written objection stating the decision would conflict with local zoning ordinances.
        • Additionally, the revised language would provide more weight to claims that a local cannabis business was expected to be the site of “illegal activity,” expanding on the more limited scope of the current statutory definition of “chronic illegal activity” by making it inclusive of any civil law violations.
      • At publication time, Burnett was a freshman Republican representative representing district 12 (Wenatchee, Chelan County).  His official biography indicated that with “over 25 years in law enforcement, including 12 years as Chelan County Sheriff, Brian brings a wealth of experience to his role. He has served as the president of the Washington Association of Sheriffs and Police Chiefs and the Washington State Sheriffs’ Association.”
      • During the public hearing on HB 1315 (Alcohol BAC Limit and DUI), Burnett asked to correlate the timeline on the rise in traffic fatalities with the legalization of cannabis in Washington state, and for comparative statistics from states which had legalized cannabis since that time.
      • According to the draft introduction report, the legislation was planned for referral to the WA House CPB.
    • SB 5650 - “Authorizing a local excise tax on cannabis.”
      • Local Retail Excise Tax
      • Republican Whip Keith Wagoner planned to introduce legislation which would allow counties or cities to impose a new excise tax of up to 2% on retail cannabis sales in their jurisdiction.
        • The bill text somewhat pits the counties and cities against one another by authorizing either entity—but not both—to implement a voter-approved ordinance establishing a tax that could be in effect for up to 7 years.  The additional rent extracted from cannabis consumers would be shared between the counties and cities in both cases but in differing proportions.
        • Local jurisdictions would contract with WSLCB to collect and disburse the funds monthly, compensating the agency for its assistance with up to 1% of collections.
      • Wagoner also introduced SB 5547 (Cannabis Excise Tax Local Distributions) which was scheduled for its initial public hearing on Tuesday afternoon.
      • Like SB 5547, the legislation was planned for referral to the Washington State Senate Ways and Means Committee (WA Senate WM).
  • Also on Tuesday, five cannabis-related bills would be granted initial public hearings covering a range of topics including out of state ownership, ESOPs, inactive producer licenses, social equity, and local tax distributions.
    • 1:30pm: WA House CPB - Committee Meeting [ Event Details ]
      • HB 1346 - Out of State Ownership
        • Representative David Hackney introduced legislation seeking to lift requirements which limit ownership of Washington cannabis business licenses to state residents.
          • See the bill analysis for more details.  A fiscal note was not available at publication time.
      • HB 1348 - Cannabis ESOPs
      • HB 1410 - Suspending Inactive Producer Licenses
        • Representative Sam Low introduced legislation requiring the WSLCB to suspend producer licenses issued under RCW 69.50.325 if the associated unified business identifier (UBI) tracked by the Washington State Department of Revenue (WA DOR) showed no business activity between July 2023 and December 2024.
          • Suspended licenses would be “reissued” if federal law authorized or the US Department of Justice issued guidance tolerating interstate commerce between “authorized cannabis-related businesses.”
          • See the bill analysis for more details.  At publication time, a fiscal note was not available.
      • HB 1551 - Social Equity Program Evaluation
        • Reeves put forward legislation requiring the WSLCB and the Washington State Department of Commerce (WA Commerce) to create a report to the legislature on the first round of the social equity program for publication by December 2025, while also deferring a second round at least until July 2026.
          • WSLCB staff had been planning to open a second round of retail licensing in the spring of 2025.
          • See the bill analysis for more details.  At publication time, a fiscal note was not available.
    • 4pm: WA Senate WM - Committee Meeting [ Event Details ]
      • SB 5547 - Cannabis Excise Tax Local Distributions
        • Wagoner introduced legislation which would stepwise increase both distributions of cannabis excise tax revenue to participating localities encoded in RCW 69.50.540.