WA Legislature - Update
(February 24, 2025)

WA Legislature - Update (February 24, 2025) - Takeaways

Five more cannabis-related bills made it through the first cutoff bringing the total to 13, five of which must be moved by fiscal committees by the next gateway on Friday to continue onwards, including home grow.

Here are some observations of the Washington State Legislature (WA Legislature) for Monday February 24th, the 43rd day of the 2025 regular session.

My top 5 takeaways:

  • On Friday, the Washington State House Consumer Protection and Business Committee (WA House CPB) deferred action on two cannabis-related bills and recommended two ahead of the House of Origin Policy Committee Cutoff before a prospective hearing on the social consumption events bill.
    • At the beginning of the event, Chair Amy Walen announced the removal of HB 1348 (Cannabis ESOPs) and HB 1884 (WSLCB Enforcement Priorities) from the list of bills which would be granted executive sessions, greatly diminishing opportunities for action on those bills for the remainder of the 2025 regular session.
    • HB 1940 - Out of State Ownership + Social Equity Tax Preference
      • Representative Melanie Morgan introduced legislation seeking to allow out of state ownership while also creating a five year business and occupation (B&O) tax break for operational social equity licensees.
      • Testimony during the public hearing on Wednesday February 19th almost entirely focused on the out of state ownership elements of the bill adapted from HB 1346 which was heard on February 4th and SB 5456 which was heard on February 17th.
      • During the executive session on Friday February 21st, no amendments were proposed on the legislation.  The bill was narrowly recommended 8-7 along largely partisan lines with the exception of Democrat Shelley Kloba who voted “do not pass.”
      • Due to the substantial fiscal note, the committee report read in the chamber later that morning referred the legislation to the Washington State House Finance Committee (WA House FIN).  At publication time, a fiscal committee hearing on the bill had not been announced.
    • HB 1449 - Cannabis Home Grow
      • 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 and published three amendments on the legislation the evening before the executive session.
        • On Friday, Cannabis Observer incorrectly claimed Reeves published all four amendments put forward.  Assistant Ranking Minority Member Jeremie Dufault filed Amendment H-1320.1 to enable land owners and landlords to prohibit “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.”
      • During the executive session on Friday, members adopted the three amendments put forward by Reeves.  They were incorporated into a substitute bill which was recommended by the committee in a 9-6 vote along strictly partisan lines.
      • Due to the fiscal note on the original bill and the additional requirements imposed by the amendments, the committee report recommended and the legislation was referred to the Washington State House Appropriations Committee (WA House APP).  Late on Saturday night, legislative staff announced a fiscal committee hearing on the bill had been scheduled for Tuesday February 25th.
    • 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.
      • Positions: testifying + not testifying = total (duplicates)
        • Pro: 16 + 55 = 71 (10)
        • Con: 2 + 599 = 601 (13)
        • Other: 0 + 1 = 1 (0)
      • During the public hearing on Friday, members had a few questions for the prime sponsor including around event insurance and public consumption, but recognized potential value in promoting responsible tourism.  Testimony was largely supportive of the move across a range of cannabis sector stakeholders.  Law enforcement and prevention interests opposed expansion of cannabis consumption opportunities and increasing the risk of driving under the influence (DUI) incidents.
      • As the legislation was not advanced out of the committee prior to the House of Origin Policy Committee Cutoff, it was unlikely further action on the bill would be undertaken during the 2025 regular session.
  • Also on Friday, the Washington State Senate Labor and Commerce Committee (WA Senate LC) interviewed the Washington State Liquor and Cannabis Board (WSLCB) Chair to review his gubernatorial appointment before amending and moving three cannabis-related bills.
    • SGA 9188 - Confirmation - Jim Vollendroff
      • Following the departure of David Postman in November, former Governor Jay Inslee promoted Vollendroff to the role of Chair of the Board in late December subject to confirmation by the Senate.  Members heard Vollendroff’s opening remarks and had several probing questions regarding the perspective he brought to the agency, his opinion on the board structure, and his willingness to work with legislators.
    • SB 5700 - DOH Patient Data Sharing
    • SB 5758 - Social Equity Buffer Zones
      • Introduced on Monday February 17th by Chair Rebecca 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 on Tuesday February 18th, proponents backed the move to help facilitate social equity retail ownership in contested and prohibitively zoned jurisdictions.  The measure was opposed by some established cannabis sector interests and at least one licensed equity business.
      • On Thursday, Ranking Member 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.
      • During the executive session on Friday, King acknowledged having met with stakeholders who were concerned about buffer zones more generally and committed to work on the issue in the future.  Saldaña supported the proposed substitute as “a step forward” while pointing to local bans and moratoria as a larger concern worthy of attention.
      • The proposed substitute was adopted and the members recommended the legislation with two Republican senators voting nay:
      • The committee report was read during the pro forma floor session on Friday afternoon and the legislation was referred to WA Senate RULE for calendaring.
    • SB 5403 - Cannabis Direct Sales
      • Introduced by Saldaña, 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 February 13th.
      • Late on Thursday February 20th, Saldaña filed a proposed striker which aimed to rewrite the bill on a different subject:
        • “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 during a WSLCB work session, Licensing Deputy Director of Administration Nicola Reid briefed committee members on cannabis license ownership constraints before lawmaker questions around management agreements suggested potential blind spots in agency oversight.
      • On Friday February 21st during the executive session, Saldaña introduced the striking amendment by saying her direct sales bill had been focused on making the cannabis industry more sustainable.  But a more pressing concern had been raised in the context of the hearings on SB 5403 and several other bills regarding de facto retail consolidation which she believed warranted timely action.  Members had no further remarks to offer.
      • The proposed substitute was adopted and the senators recommended the legislation with two Republicans voting nay:
        • Republican Deputy Leader Drew MacEwen
        • Senator Mark Schoesler
      • The committee report was read during the pro forma floor session on Friday afternoon and the legislation was referred to WA Senate RULE for calendaring.
  • Friday February 21st marked the House of Origin Policy Committee Cutoff and 13 cannabis-related bills remained active - nearly half didn’t make it through.
    • The first legislative gateway is the “Last day to read in committee reports in house of origin, except House fiscal committees and Senate Ways & Means and Transportation committees.”
    • 13 cannabis-related bills remain active after the first cutoff.  12 cannabis-related bills became inactive resulting in an attrition rate of 48%.
      • At publication time, Cannabis Observer was also tracking 4 operating budget bills, 2 gubernatorial appointment confirmations, and 2 adjacent bills (5 adjacent bills became inactive).
      • You can review “Inactive or Dead Legislation” on the biennium landing screen.
    • Five cannabis-related bills were assigned to fiscal committees and must be moved prior to the House of Origin Fiscal Committee Cutoff on Friday February 28th.
      • HB 1449 - Cannabis Home Grow
        • At publication time, the legislation was scheduled for a public hearing in WA House APP on Tuesday February 25th.  An executive session had not been announced.
      • HB 1940 - Out of State Ownership + Social Equity Tax Preference
        • At publication time, the legislation had not been scheduled for a public hearing in WA House FIN.
      • SB 5206 - Cannabis Retailer Advertising
      • SB 5547 - Cannabis Excise Tax Local Distributions
        • On Tuesday February 4th, the WA Senate WM hosted a hearing on the bill to increase distributions of State cannabis excise tax and fee revenue to counties, cities, and towns.  At publication time, an executive session had not been announced.
      • SB 5650 - Local Retail Excise Tax
        • At publication time, the legislation had not been scheduled for a public hearing in WA Senate WM.
  • The cannabis lab certification authority bill was introduced in the Senate on Friday, but no introductions were planned for Monday.
    • HB 1347 - WSLCB Lab Certification Authority
    • The draft introduction reports in the House and the Senate for Monday February 24th did not appear to include new cannabis-related legislation, reflecting the complications besetting introduction of legislation after the House of Origin Policy Committee Cutoff.
  • On Monday, the cannabis retailer advertising bill was scheduled to be heard in the Washington State Senate Ways and Means Committee (WA Senate WM) for review ahead of the House of Origin Fiscal Committee Cutoff on Friday February 28th.
    • 1:30pm: WA Senate WM - Committee Meeting [ Event Details ]
      • Public Hearing
        • SB 5206 - Cannabis Retailer Advertising
          • Republican Deputy Leader Drew MacEwen introduced a reprise of his 2023-24 bill SB 5363 which was not advanced by representatives prior to the opposite house cutoff in 2024.  The bill would change requirements for retail advertising signage and transfer authority over trade name signs from the WSLCB to local jurisdictions.
            • See the bill report and fiscal note for more details.
            • Curiously, WSLCB staff provided SB 5363 with a $0 fiscal note in 2023 and 2024, but expected over $150K in expenses implementing SB 5206 during the 2025-27 fiscal biennium.  The bill text of SB 5206 was substantively identical to the final engrossed version of SB 5363.
          • During the public hearing in WA Senate LC on Monday February 10th, cannabis sector interests presented an uncharacteristically unified message of support for the legislation.  The bill was resisted by public health and prevention representatives who framed the measure as increasing retail advertising, overburdening local jurisdictions, and threatening normalization of cannabis retailers as legitimate businesses in communities.
            • During the WSLCB Board Caucus on Tuesday February 18th, Director of Legislative Relations Marc Webster recalled that WSLCB publicly supported SB 5363, but found “public health was pretty outraged and we’ve been neutral on it this year” (audio < 1m, video - WSLCB, video - TVW).
          • During the executive session on Tuesday February 18th, SB 5206 was passed without changes.
            • Democrat Bill Ramos representing District 5 (Enumclaw, North Bend) was the only member to vote against recommendation of the bill.
          • The committee report was read during the Senate floor session on Wednesday February 19th and the bill was referred to the WA Senate WM for fiscal review.  A public hearing on the legislation was scheduled the next day.
            • During the 2023-24 biennium, SB 5363 bypassed consideration by fiscal committees in both chambers.
    • Also on Monday, 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 10:00am [ TVW ].