WA Legislature - Update
(February 20, 2025)

WA Legislature - Update (February 20, 2025) - Takeaways

Two bills were heard and the social equity program evaluation bill was advanced; fiscal committee schedules for the following week remained blank slates; and a SUD treatment bill may be moved.

Here are some observations of the Washington State Legislature (WA Legislature) for Thursday February 20th, the 39th day of the 2025 regular session.

My top 4 takeaways:

  • In the Washington State House Consumer Protection and Business Committee (WA House CPB) on Wednesday, representatives heard abbreviated testimony on two bills and controversy tinged the amendment and recommendation of the social equity program evaluation bill.
    • HB 1884 - WSLCB Enforcement Priorities
      • Representative Kevin Waters introduced legislation which would call upon the Washington State Liquor and Cannabis Board (WSLCB) to work collaboratively with cannabis sector stakeholders to review rules and revamp enforcement priorities to focus on preventing youth access and inversion/diversion.
      • Positions: testifying + not testifying = total (no duplicates)
      • During the public hearing, WACA Executive Director and Lobbyist Vicki Christophersen framed the bill as a continuation of efforts to change the WSLCB Enforcement and Education Division which began in early 2019 with the passage of SB 5318 to reform “compliance and enforcement provisions” following complaints about uneven and overzealous policing. She indicated the bill was “meant to be the beginning of a conversation, so that we can start working on making the businesses less focused- making the agency less focused on the trivial items that happen in enforcement and more focused on the things that really matter, which is diversion and inversion of product in our system” (audio - 1m, video - TVW).
      • WASAVP Board Member Scott Waller spoke against the bill as “we object to the reduction of emphasis for administrative violations” as it suggested telling “trained law enforcement personnel” to ignore violations of particular encoded laws and rules.  However, his group welcomed the proposed emphasis on preventing youth access (audio - 1m, video - TVW).
        • None of the other speakers suggested there would be value in devoting more WSLCB enforcement resources to preventing youth access. The first line of the bill text acknowledged, “The regulated cannabis industry in Washington state has, year over year, demonstrated the highest rates of preventing youth access among all the regulated sectors“ - yet the bill only named two subjects worthy of attention, listing “youth prevention” ahead of inversion/diversion.
      • WSCA Board Member Micah Sherman said “the important part of the bill for us is what’s not in it.  The biggest issue right now in the industry is retail consolidation and price fixing via management contracts, and this bill appears to direct the LCB to continue to ignore that issue” (audio - 1m, video - TVW).
      • The Cannabis Alliance Executive Director Caitlein Ryan noted “this is being done within a system that’s really in dire need of comprehensive reform” and suggested “restructuring LCB’s leadership and internal departments” (audio - 1m, video - TVW).
      • At publication time, the legislation had been proactively granted an executive session on the morning of Friday February 21st, the same day as the House of Origin Policy Committee Cutoff.
    • HB 1940 - Out of State Ownership + Social Equity Tax Preference
    • HB 1551 - Social Equity Program Evaluation
      • Representative Kristine Reeves put forward legislation which would pause the social equity program, require the WSLCB and the Washington State Department of Commerce (WA Commerce) to create a legislative report on the first round for publication by December 2025, and defer a second round until at least July 2026.
        • See the bill analysis and fiscal note for more details.
        • The relatively modest fiscal note published late on Tuesday included a caveat which was not incorporated into the estimate:
          • “Additionally, the agency has recently contracted with a vendor to score social equity license applicants. If the social equity licensing process is paused, the contract would need to be terminated. If canceled, the agency would still be liable for payment in accordance with the terms of the contract for services rendered prior to the date of termination of up to $234,000 in FY25.”
      • During the public hearing on February 4th, one advocate representing certain initial social equity program applicants testified in support of the bill.  Several others testified against the legislation, highlighting concerns about pausing in-process first round applicants.  Other parties emphasized ways to improve the bill.
        • When asked directly during her introduction to the bill, Reeves stated a pause on first round applicants had not been her intent but did not at that time offer to modify the bill.
      • During the WSLCB Board Caucus on February 11th (audio < 1m, video - TVW) and again on Tuesday February 18th (audio - 1m, video - WSLCB, video - TVW), Director of Legislative Relations Marc Webster voiced his concern that the legislation as written would “pause” further progress by remaining first round applicants.  He confirmed, “we’ll definitely want amendments there” but indicated Reeves had yet to reply to his outreach.
      • An executive session on the legislation was previously planned for the WA House CPB meeting on Wednesday February 12th, but Chair Amy Walen announced all planned executive sessions had been deferred at the start of that event.
        • No amendments on HB 1551 had been published prior to that meeting.
      • On Wednesday morning, amendment CLOD 314 was published and described as having the following effect:
        • “Removes the proposed restriction on the Liquor and Cannabis Board (LCB) issuing or reissuing a cannabis license under the Cannabis Social Equity Program (Program) through June 30, 2026, while retaining the restriction on the LCB opening a new license application window under the Program through June 30, 2026.”
      • During the executive session on Wednesday, Reeves presented her amendment, acknowledging, “I screwed up” before thanking “the community” for bringing the unintended consequence to her attention.  She reiterated her reasons for moving the legislation as the social equity program “isn’t going as well as our community deserves” (audio - 1m, video - TVW).
      • Assistant Ranking Minority Member Jeremie Dufault appreciated how the amendment would help keep the State’s promise to applicants "regardless of what you think of the social equity program" (audio - 1m, video - TVW).
        • Wednesday February 19th was also the Day of Remembrance recognizing the internment of Japanese-Americans after President Franklin Roosevelt signed Executive Order 9066 in 1942 which gave the U.S. Army the authority to remove civilians from the military zones established in Washington, Oregon, and California leading to the forced removal and incarceration of some 120,000 Americans of Japanese ancestry living on the West Coast.
        • During the House floor session earlier that day, Dufault rose to speak in favor of House Resolution 4619 (“Honoring Japanese-Americans who suffered relocation and internment during World War II”), but can be seen to have made a questionable gesture during his oration.
        • Dufault is the prime sponsor of HB 1959 which would abolish the Washington State Office of Equity.  The Legislative Black Caucus, which is chaired by Reeves, published a response to the legislation which they interpreted as an attempt to “gut efforts aimed at achieving racial and social justice for marginalized communities across our state.”
      • The amendment was adopted.  In final remarks on the substitute, Dufault led Republican opposition to passage, asserting “the bill still artificially constrains the pool of available licenses" for the social equity program.  The legislation was recommended in a strictly partisan vote, 9-6.
      • As the legislation required the agency to undertake the work within existing resources, the committee report may not recommend the bill be sent to a fiscal committee for review.  The fiscal note estimated “the proposed legislation will result in 36 new appeals being referred to the Office of Administrative Hearings (OAH) per fiscal year beginning in FY 2026,” but with the amendment allowing first round applicants to proceed, that may no longer be the case.
  • The preliminary schedules for the following week in the House and the Senate were published late on Wednesday, calling attention to how few cannabis-related bills had been referred to fiscal committees in 2025.
    • Both the Washington State Senate Ways and Means Committee (WA Senate WM) and Washington State House Appropriations Committee (WA House APP) committees played their agendas close to the vest - few bills were listed among the confirmed meeting times.
    • At publication time, only one cannabis-related bill had been referred to WA Senate WM and another recommended in the House may bypass fiscal consideration.
      • SB 5206 (Cannabis Retailer Advertising)—at publication time the only cannabis-related bill recommended by a Senate policy committee—was referred to WA Senate WM in its committee report on Wednesday.  The legislation would likely get a hearing as fiscal committee leaders have seemed to try to schedule time for most every bill they receive - but certainly do not promise an executive session.
      • HB 1551 (Social Equity Program Evaluation) may be referred to WA House APP as detailed above, but its next destination remained uncertain at publication time.
      • The first cutoff was traditionally the most brutal for all sectors and quite a few cannabis-related bills remained scheduled for executive sessions on Friday February 21st in the WA House CPB and WA Senate LC.  Still, the culling of cannabis-related legislation seemed unusually high even when accounting for the unique weirdnesses of 2025.
    • Tuesday February 25th
      • 1:30pm: WA Senate TRAN - Committee Meeting (gf)
        • Executive Session
          • SB 5067 - Alcohol BAC Limit and DUI
            • Transportation committees, which combine policy and fiscal responsibilities, are exempt from the House of Origin Policy Committee Cutoff, enabling bills to be moved up until the House of Origin Fiscal Committee Cutoff.
    • Friday February 28th
      • COB: House of Origin Fiscal Committee Cutoff
        • Friday would be the “Last day to read in committee reports from House fiscal committees and Senate Ways & Means and Transportation committees in house of origin.”
  • There were no introductions of new cannabis-related bills on Wednesday, and none planned for Thursday.
    • The draft introduction reports in the House and the Senate for Thursday February 20th did not appear to include additional cannabis-related legislation, reflecting an overall continued decline in introductions of new legislation ahead of the House of Origin Policy Committee Cutoff at the close of business on Friday February 21st.
  • On Thursday, legislators in the Washington State Senate Law and Justice Committee (WA Senate LAW) may move legislation seeking to create “treatment off ramps” for justice-involved individuals diagnosed with substance use disorders.
    • 10:30am: WA Senate LAW - Committee Meeting [ Event Details ]
      • SB 5290 - Pre-Hearing SUD Treatment
        • Senator Jesse Salomon introduced cannabis-adjacent criminal justice and behavioral health legislation to create incentives to pursue substance use disorder (SUD) treatment for dismissal of certain drug possession charges.
          • Salomon, a former public defender, described his legislation as a renewed effort to create “treatment off ramps” which had been compromised out of SB 5536, the “Blake fix” bill passed during a special session in May 2023.  Diversion of cases regarding minor possession or public drug use had been left to the discretion of prosecutors, and Salomon sought to also give judges the ability to refer people to State-certified treatment programs.
          • See the bill report and fiscal note for more details.
        • In testimony during the public hearing on January 28th, a representative of the Washington Defender Association (WDA) and the Washington Association of Criminal Defense Lawyers (WACDL) supported the legislation, while representatives of the Washington Association of Prosecuting Attorneys (WAPA) and the Washington State Narcotics Investigators Association (WSNIA) opposed the bill.
        • The legislation had been scheduled for consideration during the January 30th meeting of WA Senate LAW, but was removed from the list of potential executive sessions after the public hearing.
        • On Wednesday, Salomon published proposed substitute language which was described as having the following effects:
          • “Provides an intent section.
          • “Permits individuals charged with possession related offenses in courts of limited jurisdiction to seek dismissal of those charges after showing proof of successfully completing SUD or co-occurring SUD and MH treatment.
          • “Requires the court to dismiss possession charges if, at or before the readiness hearing, if the court finds:
            • “The assessment considered the individual’s criminal history and substance use history and shows the person has a substance use disorder which requires treatment;
            • “The individual successfully completed the recommended treatment through a court-approved and state certified treatment provider; and
            • “The interests of justice warrant dismissal.
          • “Permits the court to dismiss other non-possession charges filed under the same cause number unless the prosecutor objects.
          • “Requires the court in dismissing charges to state the reasons for the dismissal in writing and on the record.”
        • Ranking Member Jeff Holy then published an amendment on the proposed substitute which “Prohibits the court from dismissing charges of possession after a defendant successfully completes substance use disorder treatment if the prosecutor objects.”
    • Also on Thursday, the House planned to convene a floor session at 10:30am [ TVW ] and the Senate planned to convene a pro forma floor session at 12:30pm [ TVW ].
      • At publication time, one cannabis-related bill was available for debate in the House:
        • HB 1347 - WSLCB Lab Certification Authority