The out-of-state ownership bill was heard, two seasoned bills were set for introduction, and medical cannabis patients would make their case for excise tax exemption in 2023.
Here are some observations of the Washington State Legislature (WA Legislature) for Tuesday January 24th, the 16th day of the 2023 Regular Session.
My top 4 takeaways:
- On Monday January 23rd, the Washington State House Regulated Substances and Gaming Committee (WA House RSG) granted an initial public hearing for HB 1341, “Concerning cannabis license ownership.”
- Legislation to permit out-of-state ownership and suspend inactive producers received mostly supportive testimony, with opposition centered on equity implications from the change.
- As judged by observing similar legislation in prior years, industry sentiment appears to be arcing in favor of allowing out-of-state ownership ahead of the anticipated event of interstate commerce accompanied by federal preemption of protectionist measures like residency requirements.
- The addition of measures to suspend production licenses which do not appear to be producing seems an appropriate complement responsive to prior concerns about dormant licenses being snapped up and brought online, exacerbating oversupply. But hashing out the details to define an “active” license entails more work and negotiation on the bill - potentially holding it up.
- Also on Monday, the Washington State Senate Labor and Commerce Committee (WA Senate LC) bumped the executive sessions on two cannabis bills from Tuesday to Thursday.
- Two cannabis bills—new to this biennium but with accrued history and evolution in the legislature—were scheduled for introduction on Tuesday January 24th.
- SB 5546, “Establishing a Washington state cannabis commission,” would be introduced by Senator Sharon Shewmake and four co-sponsors including three leaders of WA Senate LC where the bill was set to be referred.
- HB 1563, “Concerning arrest protections for the medical use of cannabis,” would be introduced by Representative Shelley Kloba and eight co-sponsors.
- During 2021-22, Kloba championed HB 1105 through a circuitous route beginning at the Washington State House Health Care and Wellness Committee (WA House HCW) and ending just after recommendation by the Senate Law and Justice Committee (WA Senate LAW). In 2023, the bill was set to be referred to WA House RSG, which Kloba co-chairs.
- Although a fiscal note on the legislation was not requested during the prior biennium and that bill was not routed through fiscal committees, Representative Timm Ormsby signed on as a co-sponsor in 2023 - the chair of the Washington State House Appropriations Committee (WA House APP).
- Of interest to individuals who utilize cannabis as medicine, a bill to exempt registered patients from the 37% excise tax in limited circumstances was scheduled for its initial public hearing on Tuesday afternoon.
- HB 1453, “Providing a tax exemption for medical cannabis patients,” was scheduled to be heard by WA House RSG members on Tuesday January 24th at 4pm.
- The bill would lift the excise tax from purchases of cannabis products meeting the following criteria:
- Purchase of Washington State Department of Health (DOH) compliant products
- By patients registered in the DOH database
- From retail stores carrying a valid medical cannabis endorsement from the Washington State Liquor and Cannabis Board (WSLCB)
- During the previous biennium, Senator Karen Keiser carried SB 5004 through her chamber but the bill was not brought up for a floor vote in the House.