Washington State Legislature – Committee Report Cutoff
(April 9, 2019)

Tuesday April 9th was the last day to read in committee reports on bills from the opposite chamber. Of the twelve cannabis-related bills that passed the session’s house of origin cutoff, eleven bills remain in motion.

  • WSLCB Enforcement Restructuring (SB 5318). Engrossed Substitute SB 5318 (ESSB 5318) was passed by the full Senate on March 11th. Since our last update on its substantive House Commerce and Gaming Committee executive session, the bill was heard, amended, and passed by the House Appropriations Committee. At publication time, ESSB 5318 had been placed on the House floor calendar for its second reading.
    • In early April, WSLCB Director Rick Garza was celebrating the agency’s alignment of the cannabis penalties rulemaking project with SB 5318.
    • On April 8th, the House Appropriations Committee hosted a public hearing for the bill (audio – 9m, video).
      • The committee heard supportive testimony from Vicki Christophersen of the Washington CannaBusiness Association (WACA).
      • Arne Nelson, co-founder of The Evergreen Market, called for changes to “strengthen” WSLCB’s enforcement powers against fraud or false statements regarding ownership.
    • During executive session later the same day, the committee was briefed on three bill amendments (audio – 4m, video) and adopted two (audio – 5m, video).
      • Representative Gerry Pollet withdrew amendment 5318-S.E AMH APP CLOD 047 regarding penalties for providing false information, violations where a licensee received prior warnings, and other circumstances.
      • Pollet’s amendment 5318-S.E AMH APP CLOD 049 was adopted by voice vote and had the following effects:
        • Eliminates the provision that information obtained by the Liquor and Cannabis Board (LCB) as a result of licensee-requested consultation and training services is confidential and not subject to public inspection under the Public Records Act (chapter 42.56 RCW). Adds a provision that valuable formulae or financial or proprietary commercial information records received during a consultative visit, or while providing consultative services, are not subject to inspection pursuant to the Public Records Act. Adds a parallel reference to this new exemption in the Public Records Act.
      • Representative Drew MacEwen’s amendment 5318-S.E AMH APP H2691.2 was also passed and had the following effects:
        • Adds the word “intentional” to the provisions related to a violation involving the furnishing of marijuana product to minors, so furnishing of marijuana product to minors must be intentional for the Liquor and Cannabis Board (LCB) to issue a marijuana licensee a civil penalty without first issuing a notice of correction, cancel a license for a single violation, or consider violations that occurred more than two years prior as grounds for license denial, suspension, revocation, cancellation, or nonrenewal.
    • The amended bill was passed by voice vote and referred to the House Rules Committee with a “do pass” recommendation.
  • Vacating Misdemeanor Possession Convictions (SB 5605). SB 5605 was passed by the full Senate on March 11th. Since our last update on its House Public Safety Committee executive session, the bill was heard, amended, and passed by the House Appropriations Committee. At publication time, SB 5605 had been placed on the House floor calendar for its second reading.
    • On April 5th, the House Appropriations Committee hosted a public hearing on the bill. On April 8th, the committee hosted an executive session for SB 5605 (audio – 4m, video).
      • Committee Chair Timm Ormsby’s amendment SB 5605 AMH APP FRAS 999 was adopted.
        • Adds a null and void clause. The bill is null and void unless funded in the budget.
        • According to the legislation’s fiscal note, unless lawmakers budget $453,000 to the Washington State Patrol (WSP) for implementation, the bill won’t go into effect.
      • Representative Joe Fitzgibbon, who sponsored the bill’s House companion HB 1500, told fellow members he was happy the bill had finally gotten momentum after several years. He added that passing the bill would “enable all those people who are guilty of something that the voters of our state no longer think should be criminalized to move on with their lives.”
      • Representative MacEwen promised his support, but admitted his caucus would be “mixed” due to costs and resistance to forgiving acts that were illegal at the time.
    • The amended bill was passed by voice vote with 26 “aye” and six “nay” votes, then referred to the House Rules Committee with a “do pass” recommendation.
  • Testing Lab Accreditation (HB 2052). HB 2052 was passed by the full House on March 6th. Since our last update on its Senate Labor and Commerce Committee executive session, the bill was heard and passed by the Senate Ways and Means Committee. At publication time, HB 2052 had been placed on the Senate floor calendar for its second reading.
  • Labeling (SB 5298). Engrossed Substitute SB 5298 (ESSB 5298) was passed by the full Senate on March 11th. See our last update on the bill’s House Commerce and Gaming Committee executive session. At publication time, ESSB 5298 had been placed on the House floor calendar for its second reading.
  • Hemp (SB 5276). Engrossed Second Substitute SB 5276 (E2SSB 5276) was passed by the full Senate on March 12th. Since our last update on its House Commerce and Gaming Committee public hearing and executive session, the bill was heard, amended, and passed by the House Appropriations Committee. At publication time, E2SSB 5276 had been referred to the House Rules Committee for potential scheduling on the floor calendar for its second reading before the full House.
    • On April 8th, the House Appropriations Committee hosted a public hearing for the bill (audio – 5m, video).
      • Jim Jesernig, with the law firm Lane Powell, argued the bill was an important way for Washington to reap the economic benefits of the hemp market other states were already leading on.
    • During executive session on the same day, the committee was briefed on two amendments (audio – 1m, video), adopted both, and moved the amended bill out of committee with a “do pass” recommendation (audio – 3m, video).
      • Representative Derek Stanford presented 5276-S2.E AMH APP CLOD 050, a “clarifying amendment” with the following effects on the bill:
        • Limits authorized hemp food products produced under the new commercial hemp program to those hemp food products that are allowable under federal law. Restores the prohibition in the existing Industrial Hemp Research Program on processing any part of industrial hemp, except seed, as food, extract, oil, cake, concentrate, resin, or other preparation for topical use, oral consumption, or inhalation by humans, while adding an exception for when these activities are allowed under federal law.
      • The committee also adopted amendment 5276-S2.E AMH APP FRAS 999, a “null and void” amendment from Committee Chair Ormsby.
        • The WSDA’s fiscal note on the legislation “[anticipated] an expenditure impact of $212,300 for FY20; including rulemaking and Attorney General costs associated with rulemaking necessary to implement the proposed changes. The WSDA anticipates an annual expenditure impact of $206,300 for FY21 and ongoing for salary/benefits and associates cost.”
    • The bill was passed by voice vote following supportive comments from MacEwen and Stanford on agricultural opportunities for the state afforded by HB 5276.
    • The House version of the hemp bill, HB 1401, was the only cannabis-related bill which did not advance after passing the house of origin cutoff.
  • Licensing Agreements (HB 1794). Engrossed Substitute HB 1794 (ESHB 1794) was passed by the full House on March 7th. See our last update on the bill’s Senate Labor and Commerce Committee executive session. At publication time, ESHB 1794 had been placed on the Senate floor calendar for its second reading.
  • Budtender Penalties (HB 1792). HB 1792 was passed by the full House on March 7th. See our last update on the bill’s Senate Law and Justice Committee public hearing and executive session. At publication time, HB 1792 had been referred to the Senate Rules Committee for potential scheduling on the floor calendar for its second reading before the full Senate.
  • Compassionate Renewals for Patients (HB 1094). Engrossed Substitute HB 1094 (ESHB 1094) was passed by the full House on March 12th. Since our last update on its Senate Labor and Commerce Committee public hearing and executive session, the bill was heard and passed by the Senate Ways and Means Committee. At publication time, ESHB 1094 had been referred to the Senate Rules Committee for potential scheduling on the floor calendar for its second reading before the full Senate.
    • On April 5th, the Senate Ways and Means Committee hosted a public hearing on the bill. On April 9th, the committee hosted an executive session for ESHB 1094 and passed it by voice vote without discussion or amendment (audio – 1m, video).
  • Administering Cannabis to Student-Patients (HB 1095). Substitute HB 1095 (SHB 1095) was passed by the full House on March 12th. Since our last update on its Senate Early Learning and K-12 Education Committee public hearing, the committee hosted an executive session for the bill. At publication time, SHB 1095 had been placed on the Senate floor calendar for its second reading.
  • Patient Database Funding (HB 1415). Substitute HB 1415 (SHB 1415) was passed by the full House on March 8th.
    • On April 3rd, the Senate Ways and Means Committee hosted a public hearing on the bill. See the Senate Bill Report published the next day.
    • On April 9th, the committee hosted an executive session for SHB 1415 and passed it by voice vote without discussion or amendment (audio – 1m, video).
    • At publication time, SHB 1415 had been referred to the Senate Rules Committee for potential scheduling on the floor calendar for its second reading before the full Senate.
  • System Modernization Project (SMP) Account (HB 1430). Substitute HB 1430 (SHB 1430) was passed by the full House on March 7th. Since our updates on its Senate Ways and Means Committee public hearing and canceled executive session, the bill was passed by the committee on March 28th. See the Senate Bill Report published the same day. At publication time, SHB 1430 had been placed on the Senate floor calendar for its second reading.

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