WA Legislature - Update
(March 8, 2024)

WA Legislature - Update (Mar 8, 2024) - Takeaways

The first cannabis bill of 2024 was signed into law before a dynamic conclusion to the session as the “high THC” legislation criss-crossed the rotunda for a last minute change which may have fiscal consequences.

Here are some observations of the Washington State Legislature (WA Legislature) for Friday March 8th, one day after the conclusion of the 2024 regular session.

My top 4 takeaways:

  • On Thursday morning, Governor Jay Inslee signed the first cannabis bill of the 2024 legislative session into law, authorizing low dose tetrahydrocannabinol (THC) beverages for processing and retail sale.
    • HB 1249 - “Regarding limits on the sale and possession of retail cannabis products.”
      • The final bill report summarized the legislation’s effects:
        • “Authorizes cannabis retailers to sell additional amounts of certain cannabis-infused product in liquid form to a retail customer in a single transaction.
        • “Authorizes persons 21 years of age or older to possess and, subject to requirements in current law, to transfer additional amounts of certain cannabis-infused product in liquid form to another person or persons 21 years of age or older.
      • More specifically:
        • “New authorization is provided for cannabis retailers to sell 200 milligrams of THC within a cannabis-infused product in liquid form, to a retail customer, if the product is packaged in individual units containing no more than 4 milligrams of THC per unit.”
      • Assistant Minority Floor Leader Chris Corry (the prime sponsor of the legislation) was joined by Minority Caucus Vice Chair Kelly Chambers and Minority Caucus Vice Chair Eric Robertson along with Senator Curtis King (the prime sponsor of the companion bill, SB 5340)—all Republicans—to observe the signing.
      • Washington CannaBusiness Association (WACA) Executive Director and Lobbyist Vicki Christophersen was accompanied by WACA Deputy Director and Associate Lobbyist Brooke Davies and Painted Rooster Cannabis Company CEO Doug Henderson.
      • Inslee briefly noted "this legislation will give consumers more options for lower concentration THC products, which is also more favorable from a public health perspective," adding he was “happy to sign this improvement of our continuing efforts in this realm” (video - TVW).
      • As no effective date was specified in the legislation, the law takes effect 90 days after the end of session on Thursday June 6th, 2024.
  • The “high THC” products bill was eventually passed by the Legislature on Thursday, but not before senators were called upon to recede from one of their changes, re-tasking the Washington State Health Care Authority (WA HCA) with responsibility for identifying a vendor for the clinical guidance and intervention work.
    • HB 2320 - “Concerning high THC cannabis products.”
      • In the late morning, legislative staff published a new striking amendment by President Pro Tempore Karen Keiser which reversed a change introduced by Senator Drew Hansen in the Washington State Senate Labor and Commerce Committee (WA Senate LC).  The change concerned ultimate responsibility for carrying out section 5 of the legislation for “an entity to develop, implement, test, and evaluate guidance and health interventions for health care providers and patients at risk for developing serious complications due to cannabis consumption who are seeking care in emergency departments, primary care settings, behavioral health settings, other health care facilities, and for use by state poison control and recovery hotlines to promote cannabis use reduction and cessation.”
      • Early on Thursday afternoon, Speaker Pro Tempore Tina Orwall brought HB 2320 up for consideration and motioned for the House to dispute the Senate changes and ask the body to recede therefrom.  Hearing no objections, the motion was passed and a message transmitted to the Senate (video - TVW).
      • Shortly thereafter, still in the early afternoon on Thursday, Senate President Denny Heck brought HB 2320 back up for reconsideration in the Senate (video - TVW).
        • Keiser motioned for the body to accept the House request to recede from its changes, remarking that “we have been working with our colleagues across the rotunda and we have a process here before us that will achieve our shared goals of having a good policy on high THC cannabis."  The motion was accepted in a voice vote.
        • Senate rules were suspended and the bill was brought up for second reading and amendment with Keiser’s new striker.  She indicated the effect of the change was “simply to return the responsibility to develop guidance and health interventions for health care providers and at-risk patients to the Health Care Authority rather than as was earlier detailed to the University of Washington.” Senator Curtis King indicated Republican backing for the change and the striker was adopted in a voice vote.
        • After being advanced to third reading and in her remarks on passage, Keiser indicated “this is important, that we provide better information to consumers and customers of retail cannabis stores about high THC products, especially for their potential health effects for younger consumers.”  Acknowledging access to minors was not allowed by law, Keiser noted “there are concerns, even older people have issues with high THC products.”  Turning to her earlier amendment to incorporate the language of SB 6271 into the bill, Keiser pointed out the Washington State Liquor and Cannabis Board (WSLCB) would be tasked to collect more detailed information on the sales of as yet undefined high THC products.  In conclusion, she expected the legislation would help lawmakers “understand what is happening with this new approach to cannabis that may have serious health effects for some people.”
        • In a roll call vote, senators passed the legislation 46-0-0-3 with Senators Kauffman, Schoesler, and Short excused.
      • Later in the afternoon, Speaker Laurie Jinkins brought HB 2320 back up for concurrence and final passage in the House (video - TVW).
        • After ordering the concurrence, Jinkins opened the floor to remarks.
        • Wylie offered brief remarks in support, noting, “like many bills, people involved compromised with goodwill and we all learned a lot in the process.”
        • Chambers followed up with even briefer remarks in support, feeling there was “no reason to change your vote on the bill from what you voted out of the House previously.”
        • Davis, the prime sponsor, opened her final remarks by stating, “high potency cannabis products are dangerous.  They are associated with psychosis and psychotic disorder, including individuals with no history of mental illness.  They are associated with something called cannabis hyperemesis syndrome which is cyclic vomiting which took the life of a young man in the Skagit Valley.  And they are associated with significantly higher rates of cannabis use disorder, or cannabis addiction, than lower potency products and dried flower cannabis.”  She foreshadowed, “we are going to be talking about this issue for a very long time and I’m excited to see that we’re taking this small step forward to addressing the public health harms of these products today.”
        • Lawmakers voted 94-3-0-1 to pass the legislation, with Representative Bruce Chandler excused.
        • Three Republicans voted against the legislation:
      • Following final passage, legislation must be signed by the leaders of both chambers then delivered to the Washington State Office of the Governor (WA Governor).  If the Governor fails to act on the bill, it may become law without a signature.  Bills passed within five days of sine die can be acted upon within 20 days.
  • The conference committee report on the supplemental operating budget was adopted by both chambers, effecting final passage - but some uncertainty around funding for the WA HCA was created as a result of the last minute modification of HB 2320 (“Concerning high THC cannabis products”).
    • SB 5950 - “Making 2023-2025 fiscal biennium supplemental operating appropriations.”
      • In the early afternoon, the conference committee report was adopted in the House and in the Senate.  Signatures by the Speaker of the House and the President of the Senate were applied shortly thereafter, and the legislation would subsequently be sent to the Governor’s desk.
      • In relation to HB 2320, the supplemental operating budget language was finalized with an understanding that WA HCA would be explicitly asked to contract with UW ADAI to complete section 5 of the legislation.  Section 215, subsection 137 stated:
        • “$328,000 of the general fund—state appropriation for fiscal year 2025 and $328,000 of the general fund—federal appropriation are provided solely for the authority to contract with the University of Washington addictions, drug, and alcohol institute for implementing Second Substitute House Bill No. 2320 (high THC cannabis products). If the bill is not enacted by June 30, 2024, the amounts provided in this subsection shall lapse.”
      • It was likely that UW ADAI would respond to the RFP and may be designated to undertake the work by WA HCA staff.  If not, WA HCA may have to absorb the fiscal year (FY) 2025 costs of the work.
      • In an earlier fiscal note in response to a version of the bill which tasked the Authority with responsibility for conducting an RFP, WA HCA staff estimated costs of $758K for FY 2025 but assumed 50% of those “contracting costs are eligible for federal matching” leaving a needed appropriation of $379K.
  • All four remaining cannabis-related bills passed by the Legislature had been signed by chamber leadership and were delivered or on their way to the Washington State Office of the Governor (WA Governor) for action during the following 20 days.
    • In addition to HB 1249, the low dose cannabis beverages legislation signed into law on Thursday, four other cannabis-related bills were passed during the 2024 regular session:
      • HB 1453 - “Providing a tax exemption for medical cannabis patients.”
      • HB 2151 - “Reassigning the accreditation of private cannabis testing laboratories from the department of ecology to the department of agriculture.”
        • Delivered to the WA Governor on March 1st more than five days before sine die, this legislation may have become law without a formal signing ceremony.
      • HB 2320 - “Concerning high THC cannabis products.”
      • SB 5376 - “Allowing the sale of cannabis waste.”
        • While not yet delivered to the WA Governor at publication time, this legislation had been signed by both the Speaker of the House and the President of the Senate.