WA Legislature - Update
(February 21, 2025)

WA Legislature - Update (February 21, 2025) - Takeaways

The lab certification bill was passed in the House before a mishmash of amendments were published on seven cannabis-related bills up for executive sessions Friday morning in advance of the first cutoff.

Here are some observations of the Washington State Legislature (WA Legislature) for Friday February 21st, the 40th day of the 2025 regular session.

My top 5 takeaways:

  • Also on Thursday, legislators in the Washington State Senate Law and Justice Committee (WA Senate LAW) amended and moved legislation seeking to create “treatment off ramps” for justice-involved individuals diagnosed with substance use disorders.
    • 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.
      • Testimony was divided during the public hearing on January 28th.  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.”
      • During the executive session on Thursday, Holy withdrew his amendment after providing a breakdown of why he thought the bill would ultimately fail which called on case law regarding separation of powers.  The proposed substitute was adopted and the bill recommended by the committee.
      • The fiscal note indicated multiple entities projected indeterminate but potentially significant expenses, but WA Senate LAW Chair and Deputy Majority Leader Manka Dhingra said the legislation was headed to the Washington State Senate Rules Committee (WA Senate RULE) for calendaring.
  • The cannabis retailer advertising bill was scheduled for a public hearing in the Senate fiscal committee in the early part of the following week.
  • There were no introductions of new cannabis-related bills on Thursday, but the lab certification authority bill would be introduced in the Senate on Friday.
    • The draft introduction reports in the House and the Senate for Friday February 21st did not appear to include new cannabis-related legislation, reflecting an overall continued decline in introductions of legislation ahead of the House of Origin Policy Committee Cutoff at the close of business on Friday, the “Last day to read in committee reports in house of origin, except House fiscal committees and Senate Ways & Means and Transportation committees.”
    • After passage in the House, HB 1347 (WSLCB Lab Certification Authority) was scheduled for introduction in the Senate and referral to WA Senate LC.
  • On Friday—the House of Origin Policy Committee Cutoff—the standing committees had full agendas for their early morning meetings which included executive sessions on seven cannabis bills, the gubernatorial appointment confirmation of the WSLCB Chair, and a public hearing on social consumption legislation.
    • 8am: WA House CPB - Committee Meeting [ Event Details ]
      • Public Hearing
        • HB 1932 - Cannabis Consumption Events
          • Representative Melanie Morgan introduced legislation that would support the evolution of the Washington state cannabis sector by authorizing strictly regulated events where social consumption of cannabis was allowed.
          • Unusually, Morgan published an amendment on HB 1932 Thursday evening even though the legislation was not formally scheduled for an executive session on Friday.  It was described as having the following effects:
            • “Directs moneys received from application fees, license fees, and permit fees from the cannabis consumption event organizer license and the temporary on-site consumption event permit as follows:
              • “83 percent to the Dedicated Cannabis Account;
              • “10 percent to the Community Reinvestment Account for specified uses;
              • “5 percent to a newly created Youth Cannabis Cessation Account; and
              • “2 percent to the Youth Tobacco and Vapor Products Prevention Account.”
      • Executive Session
        • HB 1348 - Cannabis ESOPs
          • Representative David Hackney introduced legislation regarding employee stock ownership plans (ESOPs) specific to the cannabis sector, clarifying legislation sought by the Washington CannaBusiness Association (WACA) after WSLCB staff withdrew the ESOPs rulemaking project in December.
          • During the public hearing on February 4th, WACA representatives and members testified in support of the legislation which was framed as a more equitable business structure actively encouraged by the State within other sectors.  Opponents spoke out against ESOPs, which were anticipated to only be affordable business structures for the largest entities in the cannabis sector as well as a means of skirting true party of interest (TPI) vetting and residency requirements for out of state “trustees” of the ESOP.
          • An executive session on the legislation had been planned for February 12th, but consideration of the bill was deferred.
          • Two potential amendments on the ESOPs bill were published on Monday February 17th and a previously published amendment was renewed on Thursday:
            • Amendment H-1476.1 by WA House CPB Chair Amy Walen “Specifies that the proceeds of the sale of a licensed cannabis business's employee stock ownership plan (ESOP) to a private party must go entirely to the employees in the ESOP, after payment of any debts attributable to the ownership interests sold and a fixed fee to a firm or other person outside of the licensed cannabis business to cover administrative costs related to the sale.”
            • Amendment H-1477.1, also by Walen, was described as having the following “EFFECT: Limits corporate officers and directors, and persons with equivalent titles, of businesses with employee stock ownership plans that are applying for or hold a cannabis license, from holding these types of positions with, or an ownership interest in, more than five licensed cannabis retailers; more than three licensed cannabis producers, cannabis processors, or licensed cannabis producer/ processors; and between the retail and producer/processor tiers of the cannabis industry.”
            • Walen published amendment CLOD 309 before the prior executive session on February 12th which was rescheduled.  That amendment “Requires an employee of a licensed cannabis business with an employee stock ownership plan (ESOP) to be a Washington resident prior to participating in the ESOP. Requires the trustee of the ESOP, except for the trustee who performs the initial valuation and negotiation of the ESOP transaction, to be a Washington resident.”
        • HB 1940 - Out of State Ownership + Social Equity Tax Preference
        • HB 1449 - Cannabis Home Grow
          • Representative Shelley Kloba introduced legislation to allow an adult to grow six cannabis plants (combined up to 15 per ‘housing unit’) while establishing parameters and penalties around the practice.
            • For more details, see the bill analysis and comparatively low fiscal note compared to prior iterations of the legislation.
          • During the public hearing on January 28th, the majority of testifiers supported having Washington follow the example of 21 out of 24 other states that had legalized adult use of cannabis while also safely allowing home growing of a limited number of plants.  Four representatives of law enforcement, public health, and prevention groups testified in opposition to the legislation.
            • Representative Kristine Reeves exhibited an unusual interest in the legislative concept for the third year in a row, asking staff whether law enforcement concerns had been met (audio - 2m, video - TVW), spinning a hard to follow hypothetical about colluding adjacent apartment renters (audio - 2m, video - TVW), and attempting to encourage a commercial grower to speculate about home insurance policy impacts (audio - 2m, video - TVW).
          • Originally scheduled for an executive session during the February 11th WA House CPB meeting, on Monday February 17th home grow was granted another opportunity for advancement.  Four amendments on the bill were published on Thursday evening.
          • Amendment H-1615.1 by Reeves:
            • “Requires cannabis plants lawfully produced by persons age 21 and over to be sourced from a licensed cannabis producer.
            • “Adds traceability requirements administered by the Liquor and Cannabis Board (LCB) to the cannabis home production authorization, subject to a fee the LCB may impose to recoup costs.
            • “Adds cannabis waste disposal requirements to the cannabis home production authorization, and limits criminal liability of solid waste facility or waste management service providers.
            • “Requires cannabis producers to post information for consumers about Washington law regarding home production of cannabis.
            • “Requires the LCB to post comprehensive information and answers to frequently asked questions on the LCB's website related to the cannabis home production authorization including information about risk of civil and criminal legal liability that may arise for individuals producing cannabis and about the aspects of the activity that are legal and aspects of activity that are illegal or for which the legal status is not specified and therefore may carry risk of liability.”
          • Amendment H-1322.1 by Reeves:
            • “Adds a liability insurance coverage requirement to the authorization for a person age 21 or over to produce and possess six cannabis plants and the cannabis and cannabis products derived from those plants on the premises of the housing unit occupied by the person.”
          • Amendment H-1320.1 by Assistant Ranking Minority Member Jeremie Dufault:
            • “Specifies that nothing in the authorization for a person age 21 or over to produce six cannabis plants and possess cannabis and cannabis products derived from those plants prevents or restricts a landlord or property owner from prohibiting the production of cannabis plants by a renter or lessee on the premises of a housing unit or upon or within the property under the terms of a rental agreement, lease, or other contract.”
          • Amendment H-1323.1 by Reeves:
            • “Specifies that an individual gets one warning related to producing or knowingly possessing cannabis plants or the cannabis and cannabis products derived from those plants outside of the legal authorization.
            • “Directs law enforcement officers and enforcement personnel within jurisdictions in which there is no licensed cannabis retailer to consider at their discretion, the lack of accessible cannabis, and the totality of the circumstances, when deciding to enforce Washington law against an individual suspected of producing or knowingly possessing cannabis in violation of Washington law.
            • “Requires all law enforcement personnel required to complete basic law enforcement training, beginning July 1, 2026, to complete bias training on the war on drugs, including the bias around cannabis and the history of cannabis in the war on drugs, how certain communities were targeted and disproportionately impacted by use of these laws, and about an individual's right to one warning related to producing or knowingly possessing cannabis outside of legal authorization.”
        • 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.
          • During the public hearing on Wednesday February 19th, WACA Executive Director and Lobbyist Vicki Christophersen framed the bill as a continuation of efforts to change WSLCB Enforcement “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).
          • Washington Association for Substance Misuse and Violence Prevention (WASAVP) Board Member Scott Waller spoke against the bill as “we object to the reduction of emphasis for administrative violations.”  However, his group welcomed the proposed emphasis on preventing youth access (audio - 1m, video - TVW).
          • Washington Sun and Craft Growers Association (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, there were no published amendments on the legislation.
    • 8am: WA Senate LC - Committee Meeting [ Event Details ]
      • Public Hearing
        • SGA 9188 - Jim Vollendroff
          • WA Senate LC members were scheduled to interview Jim Vollendroff to confirm his gubernatorial appointment as Chair of the WSLCB Board.
      • Executive Session
        • SGA 9188 - Jim Vollendroff
        • SB 5700 - DOH Patient Data Sharing
        • SB 5403 - Cannabis Direct Sales
          • Introduced by Senator Rebecca Saldaña, Chair of WA Senate LC, the legislation would authorize cannabis producers to sell their own flower directly to consumers.
          • During the public hearing on January 27th, a supermajority of the 23 people who testified supported the legislation, although questions were raised about market impacts.
          • The cannabis farm gate sales bill had been scheduled for an executive session in WA Senate LC on Friday February 14th - but was reshuffled after an amendment was published on Thursday afternoon.
          • Late on Thursday afternoon, Saldaña filed a proposed substitute which was described as having the following effects:
            • “Strikes entirety of bill and instead prohibits a retail licensee and all other persons or entities with a financial or other ownership interest from entering into any agreement under specified law that confers a financial interest across more than five retail cannabis licenses.
            • “Provides that financial interest includes negotiating or coordinating purchases of cannabis products, any operational control over the business, sharing profits or revenue, sharing marketing and advertising costs, or sharing employment and hiring decisions.
            • “Adds an effective date of January 1, 2026.”
            • On Monday February 10th, WSLCB Licensing Deputy Director of Administration Nicola Reid briefed committee members on cannabis license ownership before lawmaker questions around management agreements suggested potential blind spots in agency oversight.
        • SB 5758 - Social Equity Buffer Zones
          • Introduced on Monday February 17th by Saldaña, the legislation as written would create less restrictive buffer zones for licenses issued under the cannabis social equity program in RCW 69.50.335(1).
          • During the public hearing, Black Excellence in Cannabis (BEC) members called the move necessary to ensure Black retail ownership in King County.  But the measure was opposed by representatives from WACA, FMS Global Strategies, and WASAVP.
            • Rolando Rodriguez from Green Roads Cannabis, a social equity retailer in Moses Lake, spoke against creating separate buffer zones for equity businesses given the time and money he’d spent finding a compliant location.
            • Representatives from the Cannabis Alliance and Raven were signed in to testify in support of the legislation but were not granted an opportunity to speak as the committee meeting ran long.
          • On Thursday, Ranking Member Curtis King filed a proposed substitute which would retain the language preventing local governments from creating ordinances requiring social equity businesses to locate more than 250’ from other retailers, but strike the provision halving the distance requirement from protected zones.
            • Earlier in the day, Saldaña briefly published an amendment labeled S-1706.1 which was removed from the legislature website prior to the publication of King’s proposed substitute.
    • COB: WA Legislature - House of Origin Policy Committee Cutoff
      • Most legislation must be heard, potentially amended, recommended, and a policy committee report read during a chamber floor session before the close of business Friday to continue beyond the first cutoff gateway of the 2025 regular session.  More specifically, Friday is the “Last day to read in committee reports in house of origin, except House fiscal committees and Senate Ways & Means and Transportation committees.”
        • There are exceptions.  Legislation can be designated “necessary to implement budgets” (NTIB) by chamber leaders to exempt it from the regular rules of order, loosely interpreted to mean a bill has been projected to have a measurable fiscal impact.
        • See the Cannabis Observer 2025-26 biennium landing screen for a complete list of cannabis-related and -adjacent legislation we are tracking.
    • On Friday, the House planned to convene a pro forma floor session at 9:55am [ TVW ] and the Senate planned to convene a pro forma floor session at 12:30pm [ TVW ] to introduce bills and read in the standing committee reports.