Washington State Legislature – Opposite House Cutoff
(April 17, 2019)

Wednesday April 17th was the last day to pass bills through the opposite chamber (with exceptions). Eleven cannabis-related bills that passed the session’s house of origin cutoff remain in motion – including one bill Cannabis Observer considered inactive after the committee report cutoff. Here are some observations of the cannabis-related bills which have passed both chambers of the Washington State Legislature.

  • SB 5318 – “Reforming the compliance and enforcement provisions for marijuana licensees.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Tuesday April 16th, the House called ESSB 5318 up for its second reading allowing floor amendments to be proposed, debated, and voted upon (video):
      • 5318-S.E AMH STAN CLOD 054 from Representative Derek Stanford was adopted. Its effect on the bill is broad:
        • Strikes the word “intentional” from the provisions related to a violation involving the intentional furnishing of marijuana product to minors, so the Liquor and Cannabis Board (LCB) must prove by a preponderance of the evidence a licensee furnished marijuana product to minors, but not that the action was intentional, for the 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.
        • Modifies the provisions regarding employee misconduct leading to a violation, to provide that the LCB must give substantial consideration to mitigating any penalty imposed on a licensee when there is employee misconduct that led to the violation and the licensee: (1) established a compliance program designed to prevent the violation; (2) performed meaningful training with employees designed to prevent the violation; and (3) had not enabled or ignored the violation or other similar violations in the past.
        • Adds the following circumstances when the LCB may issue a civil penalty to a marijuana licensee without first issuing a notice of correction, cancel a license for a single violation, or consider violations occurring more than two years prior in making licensing decisions: Knowingly making a misrepresentation of fact to the LCB, an officer of the LCB, or an employee of the LCB related to conduct or an action that is, or alleged to be, any of four specific violations identified in the act (i.e., diversion of marijuana product to the illicit market; furnishing of marijuana to minors; diversion of revenue to criminal enterprises; or the commission of nonmarijuana-related crimes).
    • Striking amendment 5318-S.E AMH ENGR H2875.E from the Appropriations Committee was adopted and engrossed.
    • After amending, House rules were suspended to jump to the bill’s third reading and vote. After favorable testimony from multiple members of the House Commerce and Gaming Committee, ESSB 5318 was passed by the House with 88 yea votes; eight nays, and two absent or excused. Read the final House Bill Report and updated Senate Bill Report.
    • Differences in the bill versions passed by each chamber will likely necessitate a vote to concur by one chamber to agree with the other chamber’s version, or conference committee with members from each chamber negotiating a new version of the bill to be voted upon.
  • HB 1401 – “Concerning hemp production.”
    • See Cannabis Observer’s house of origin cutoff summary.
    • Just last week, Cannabis Observer considered E2SHB 1401 inactive for the remainder of the session as the Senate Agriculture, Water, Natural Resources, and Parks Committee (AWNP) had not granted the bill a public hearing nor executive session prior to the committee report cutoff. In contrast, the Senate version of the hemp bill, SB 5276, was positioned for its second reading in the House. But as we’ve seen with other cannabis legislation this session, bills remain active if they have a fiscal note attached as that appears sufficient to consider them “necessary to implement the budget” (NTIB).
      • Rumor has it that E2SHB 1401 became the preferred hemp vehicle because bills sponsored by Senator Ericksen are not being passed by legislators. A review of the bills introduced by Ericksen as prime sponsor confirms he has not had much success moving his bills this session – and SB 5276 was his last active bill.
    • On Friday morning April 12th, the Senate AWNP Committee hosted an executive session for E2SHB 1401 without hosting a public hearing for the bill and two days after the committee report cutoff. A striking amendment, 1401-S2.E AMS AWNP S3919.2, was adopted with the following impacts (video):
      • Changes the term “grower” to “producer” in certain circumstances. Provides that Washington State University may, within existing resources, develop and make accessible an internet-based application to assist hemp producers with planting times. Requires the Department of Agriculture to regulate the processing of hemp for food products, that are allowable under federal law, in the same manner as other food processing. Clarifies the definition of “postharvest test”. Removes the null and void clause.
      • Provides that all receipts from fees are deposited in the Hemp Regulatory Account. Eliminates the requirement that the United States Department of Agriculture must approve Washington’s hemp plan before expedited rule making to adopt the state hemp plan may begin. Removes the prohibition in the Industrial Hemp Research Program on processing industrial hemp, except seed, as food, extract, oil, or other preparation for topical use, oral consumption, or inhalation by humans.
    • The two members of the seven-member committee present for the executive session, Committee Chair Kevin Van De Wege and Senator Jim Honeyford, made short work of amending and referring the bill to the Senate Rules Committee, concluding their dedicated public meeting in 69 seconds to the laughter of staffers present.
    • On Monday April 15th, the Senate called the bill up for its second reading then suspended rules to jump to the bill’s third reading and vote. E2SHB 1401 was passed by the Senate with a vote of 48 yeas, no nays, and one absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • The bill will be returned to its house of origin for concurrence, dispute, or conference.
  • HB 1792 – “Concerning criminal penalties applicable to licensed marijuana retailers and employees of marijuana retail outlets.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Monday April 15th, the Senate called HB 1792 up for its second reading allowing floor amendments to be proposed, debated, and voted upon (video):
      • 1792 AMS KUDE S3659.1 from Senator Patty Kuderer was adopted and incorporated the following changes:
        • Removes the criminal penalty (misdemeanor) for a licensed marijuana retailer or employee of a retail outlet that allows a person under the age of twenty-one years to enter or remain on the premises of the retail outlet.
      • Another amendment, 1792 AMS PADD S3658.1, from Senator Mike Padden was not adopted. The amendment:
        • Makes it a felony for an employee of a retail outlet to sell marijuana to an unauthorized person under the age of 21 who is a resident of a state where the sale of marijuana for recreational use is not legal.
    • After amending, Senate rules were suspended to jump to the legislation’s third reading and vote. HB 1792 was passed by the Senate with 28 yeas, 17 nays, and four absent or excused. Read the final Senate Bill Report and the updated House Bill Report.
    • The bill will be returned to its house of origin for concurrence, dispute, or conference.
  • SB 5298 – “Regarding labeling of marijuana products.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Tuesday April 16th, the House called ESSB 5298 up for its second reading allowing floor amendments to be proposed, debated, and voted upon (video):
      • 5298-S.E AMH COG H2727.1 was adopted from the Commerce and Gaming Committee, the amendment:
        • (1) Removes the requirement that a structure or function claim included on any Department of Health (DOH) compliant marijuana product label, or a claim that describes a product’s psychoactive effect included on any marijuana product label, be substantiated.
        • (2) Requires a structure or function claim included on any DOH compliant marijuana product label, or a claim that describes a product’s psychoactive effect included on any marijuana product label, to include a disclaimer that states such claims: (a) have not been evaluated by the State of Washington; and (b) are not intended to diagnose, treat, cure, or prevent any disease.
        • (3) Removes “relief” from the list of example marijuana product label terms that may be used to describe the product’s intended role in maintaining a structure or function of the body.
        • (4) Exempts drug and pharmaceutical products approved by the United States Food and Drug Administration from the marijuana product labeling requirements in the section.
      • 5298-S.E AMH ENGR H2727.E is the adopted and engrossed text for the amendment above.
      • 5298-S.E AMH DAVI RAYM 041, by Representative Lauren Davis was also adopted and engrossed into the bill. The change:
        • (1) Removes example terms that Department of Health compliant marijuana products may include on a product label that describes the product’s intended role in maintaining a structure or function of the body.
        • (2) Provides that a warning (rather than a claim) describing the psychoactive effect of a marijuana product is allowed on the product label.
        • (3) Removes the provision that allows a marijuana product label to contain a legal claim related to any non-marijuana ingredients in the product.
    • After amending, House rules were suspended to jump to the bill’s third reading and vote. ESSB 5298 was passed by the House by a vote of 88 yeas, 10 nays, no absent or excused. Read the final House Bill Report and the updated Senate Bill Report.
    • The bill will be returned to its house of origin for concurrence, dispute, or conference.
  • HB 1794 – “Concerning agreements between licensed marijuana businesses and other people and businesses, including royalty and licensing agreements relating to the use of intellectual property.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Saturday April 13th, ESHB 1794 was passed by the Senate with 39 yeas, six nays, and four absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • On Thursday April 18th, the Speaker of the House signed the bill. Once its passage has been formally endorsed by the Senate, the bill will be transferred to the Office of the Governor for executive action.
  • SB 5605 – “Concerning misdemeanor marijuana offense convictions.”
  • HB 2052 – “Clarifying marijuana product testing by revising provisions concerning marijuana testing laboratory accreditation and establishing a cannabis science task force.”
  • HB 1094 – “Establishing compassionate care renewals for medical marijuana qualifying patients.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Monday April 15th, ESHB 1094 was passed by the Senate with 44 yeas, one nay, and four absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • On Thursday April 18th, the House concurred with the changes by a vote of 86 yeas, nine nays, and three absent or excused. Once its passage has been formally endorsed by officers in each chamber it will go to the Governor’s office for executive action.
  • HB 1095 – “Concerning the administration of marijuana to students for medical purposes.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Saturday April 13th, SHB 1095 was passed by the Senate by a vote of 41 yeas, four nays, and four absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • On Thursday April 18th, the House concurred with the Senate amendments with 79 yeas, 16 nays, and three absent or excused. Once its passage has been formally endorsed by officers in each chamber it will go to the Governor’s office for executive action.
  • HB 1415 – “Modifying funding of the medical marijuana authorization database.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Tuesday April 16th, SHB 1415 was passed by the Senate with 48 yeas, no nays and one absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • On Thursday April 18th, the Speaker of the House signed the bill. Once its passage has been formally endorsed by the Senate the bill will go to the Governor’s office for executive action.
  • HB 1430 – “Concerning the licensing and enforcement system modernization project account.”
    • See Cannabis Observer’s committee report cutoff summary.
    • On Saturday April 13th, SHB 1430 was passed by the Senate by a vote of 45 yeas, no nays, and four absent or excused. Read the final Senate Bill Report and the updated House Bill Report (video).
    • On Thursday April 18th, the Speaker of the House signed the bill. Once its passage has been formally endorsed by the Senate the bill will go to the Governor’s office for executive action.

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