WA Senate LCTA - Committee Meeting
(March 24, 2021) - HB 1443 - Executive Session

Several amendments to legislation modifying the Washington cannabis social equity program and task force were considered by committee members before it was recommended in a divided vote.

Here are some observations from the Wednesday March 24th Washington State Senate Labor, Commerce, and Tribal Affairs Committee (WA Senate LCTA) meeting.

My top 3 takeaways:

• Staff reviewed a striking amendment to a bill modifying the cannabis social equity program and task force with various effects including removal of the pilot grant program as well as several additional amendments to the striker.
  • HB 1443 (“Concerning social equity within the cannabis industry”) was passed by the Washington State House of Representatives (WA House) on March 2nd. The bill received a public hearing in WA Senate LCTA on March 11th.
  • WA Senate LCTA Counsel Matt Shepard-Koningsor refreshed members on the bill’s subject matter before listing “four total amendments” including “a striking amendment” as well as three amendments “to the striker” (audio - 3m, video).
    • Amendment S-2159.1 was a striking amendment from Senator Rebecca Saldaña with several effects:
      • Removes the term ‘competitive’ from the cannabis social equity technical assistance grant program (Grant Program).
      • Provides that cannabis licensees holding a license granted after June 30, 2020, and before the effective date of the grant section, who meet the social equity applicant criteria, are eligible for the Grant Program (rather than all cannabis licensees holding a license, who meet the social equity applicant criteria).
      • Adds "strengthening [a cannabis license applicant's and licensee's] social equity plan" to the list of technical assistance activities eligible for funding under the Grant Program. Removes provisions requiring the Department of Commerce (Commerce) to create a technical assistance pilot program, and instead, requires Commerce to contract to establish a roster of mentors who are available to support and advise social equity applicants and current licensees who meet the social equity applicant criteria, with specified contractor requirements.
      • Replaces the use of "interested parties" with "community members" when referring to persons the Liquor and Cannabis Board (LCB) must consult with prior to rulemaking.
      • Clarifies that the social equity task force report must include the social equity impact of removing nonviolent cannabis-related felonies and misdemeanors from the existing point system used to determine if a person qualifies for obtaining or renewing a cannabis license.
      • Provides that the social equity task force must provide recommendations for the Grant Program in its reports to the Governor, Legislature, and the LCB.
    • Other proposed amendments would have further modified amendment S-2159.1:
      • Amendment S-2248.1 from Saldaña would extend “the date by which the task force must submit its final recommendations from January 10, 2022, to December 9, 2022.”
      • Amendment S-2193.1 from Senator Curtis King would mandate “that the cannabis social equity task force is no longer required to report on the social equity impact of reducing or ending the funding directed to the Washington state patrol drug enforcement task force and redirecting an equivalent amount to a cannabis social equity program.”
      • Amendment S-2194.1 from King proposed to restore “current law, with the cannabis social equity task force expiring on June 30, 2022 (rather than June 30, 2023).”
        • King later chose to withdraw this amendment before a vote (audio - <1m, video).
    • Saldaña and King represent the WA Senate majority and minority caucuses on the Washington State Legislative Task Force on Social Equity in Cannabis (WA SECTF).

• Before the committee voted on the striking amendment itself, they first voted on whether to include two amendments to the striker.
  • Vice Chair Steve Conway moved to adopt Saldaña’s striking amendment (audio - 1m, video). 
    • The first change to that striking amendment, Amendment S-2248.1, came from Saldaña as well, who said it “simply puts back the date for the final report that we need from the task force” from January 10th to December 9th, 2022. She admitted the existing date was “a bit of a[n] oversight” while “trying to get this bill written.” Saldaña said WA SECTF could “give us reports and updates and recommendations prior to that but the final report...we’d give them more time to actually produce it and get it back to us in time” (audio - 1m, video). Chair Karen Keiser called for a voice vote of the committee who adopted the amendment unanimously (audio - <1m, video).
    • Next, there was a motion to pass another change to the striking amendment, King’s Amendment S-2193.1 (audio - <1m, video). King advocated for removing consideration of WSP drug enforcement funding from the task force’s list of required recommendations because “it went beyond the, really what...the task force is set up” to accomplish (audio - 1m, video). Saldaña spoke up to add that shifting money from state drug enforcement to investments in cannabis industry equity “is something that we need to look at in terms of funding for this program.” She questioned “whether [the WSP drug task force was] the best use of that revenue” while ultimately being “willing to accept this because I do think the task force has plenty of work to focus on” (audio - 1m, video). The amendment was passed unanimously (audio - <1m, video).
  • A second draft of the striking amendment including the two amendments was subsequently published.

• Senators offered final remarks before the committee voted to adopt the revised striking amendment and recommend the bill, during which three Republican senators opposed passage.
  • Conway moved that the modified striking amendment be adopted, recommended for passage, and delivered to the Washington State Senate Rules Committee (WA Senate RULE, audio - <1m, video).
  • Saldaña described her striking amendment as something “done, in part, in consultation with [the] Department of Commerce where they explained to us that doing a pilot would actually diffuse their ability to just focus on actually building up a program that would be informed by the recommendations” of WA SECTF. She said the amendment would “recognize that the focus is more on, you know, creating a, a possible mentorship program...would be a better focus of the resources.” Saldaña viewed the amendment as a way “to try to streamline” mentoring and the eventual technical assistance grant program, with other changes “trying to clean up and clarify everyone’s roles and responsibilities”  (audio - 1m, video). 
  • King stated that he had “a little concern about this, some of the provisions in this bill, but I will be supporting it today and I am also a member of that task force so I hopefully will have the opportunity to, to provide some input as that task force moves forward” (audio - 1m, video). 
  • Keiser called for the committee to “support this bill. I think there’s been a lot of positive, helpful work that's gone into this approach” (audio - <1m, video).  
  • Committee staff conducted a roll call vote of members, all of whom supported passage of the revised HB 1443 with three exceptions (audio - 1m, video):
    • Senator John Braun, Republican Leader
      • Braun initially voted ‘do not pass’ but later instructed staff to ease his opposition to ‘without recommendation.’
    • Senator Jim Honeyford
    • Senator Mark Schoesler
  • On Friday March 26th, HB 1443 was calendared by the Washington State Senate Rules Committee (WA Senate RULE) as part of a package pull. Should the bill be scheduled for floor action in a WA Senate order of consideration, the bill would have until April 11th at 5pm to be passed before the opposite house cutoff.

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