Washington State lawmakers are close to passing legislation that would allow licensed marijuana businesses to transborder trade with legal cannabis companies from other states.
On Wednesday, the state’s House of Representatives passed SB 5069 in a vote of 71 to 26. A minor amendment was approved by members of the House to correct “a scrivener’s error” in the version passed last month by the Senate. This fix means that the legislation needs to be approved by the Senate before it can go to Gov. Jay Inslee (D), for his signature.
Interstate cannabis commerce would not be allowed immediately by the measure. It would allow the governor to enter into agreements only if there is a federal law amendment “to allow interstate cannabis transfer” or if U.S. Department of Justice issues an opinion “allowing and tolerating” marijuana commerce between states.
“Sometimes government is behind the events. On Wednesday, Rep. Sharon Wylie (D), stated that this is a small step in being proactive. “Should they act while we aren’t in session, we don’t know how we would respond. Although we don’t know when they’ll act, this sends a signal and allows us to respond in a responsible manner.
Similar laws have been adopted by California and Oregon, both West Coast states. California’s would allow the state’s attorney to initiate the policy change via a legal opinion, absent any new federal moves. State regulators asked that Rob Bonta (D) prepare this guidance.
Wylie stated on Wednesday that this puts us on the same level as other states and makes sure our vendors and licensees know what’s going on in their world,” Wylie stated on the Washington House floor.
The bill would require state regulators to notify the federal policy change and any state-level “statutory modifications necessary to authorise the sale, delivery, or receipt of cannabis” from outside-state businesses if one of the two conditions is met. The governor would have the authority to enter into agreements with other states, but regulators would need to also adopt the necessary rules regarding marijuana imports and exports.
Washington regulations would apply to products imported from businesses outside of Washington. This includes packaging and labeling.
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Olympia supporters describe the proposal as a way for Washington’s legal marijuana industry to compete with out-of state businesses, ahead of what many consider the inevitable end to federal prohibition.
Before last month’s Senate floor voting, Sen. Ann Rivers (R), prime sponsor of the bill, called Washington, which legalized marijuana for adults in 2012 through a ballot initiative, “a leader in cannabis industry.” However, she warned that the state could be left behind if it is out of town or unable to act on federal law changes.
“We know that legalization at the federal level will be coming. “We’ve seen bills being introduced, and it feels like it is getting closer,” she stated. SB5069, she stated, entrusts to the governor “to watch out for this sector and ensure that business flows from our state to other States and back to us in an legal way, in safety, and in a manner that can be enforced.”
Washington State’s legislation is the latest attempt by state leaders to prepare for interstate cannabis commerce. Federally, marijuana remains illegal. California’s governor approved a similar measure last year. Oregon Governor. Kate Brown (D- ) signed interstate marijuana commerce legislation in 2019.
Adam Smith, the founder of the non-profit Alliance for Sensible Markets which promotes interstate cannabis trade, stated that this will provide us with all three West Coast states that have interstate commerce laws. This is no accident. Since 2019, when the Oregon original bill was passed, we’ve been working towards that goal.
Smith stated to Marijuana Moment that he does not expect states to wait for federal law to pursue cross-border deals. Smith believes that West Coast laws will push the Biden Administration to issue agency guidance, allowing interstate commerce.
Smith stated, “We are on the cusp.” “Now, we want states say, “Hey, this is the political process. We are open to dialogue with other states. We need to understand that when you state that you won’t prosecute people who act under state regulation, you really mean it.
He stated that if the DOJ will tolerate state regulation in a federally illicit industry, there is no legal or practical reason for them to say “Oh no, but, we will draw the line at moving marijuana from California to New Jersey.”
Smith stated that bills similar to Washington’s would eventually allow states to opt in to a national cannabis market. This could allow long-standing producers, such as those on the West Coast to export their products to other markets at higher prices. States with less favorable conditions for cannabis cultivation or those who are just starting a legal market could import products from other states, rather than each state creating its legal industry.
“None” of these is about opening up commerce between Washington, California, and Oregon. He said that sending low-priced cannabis back to those border areas will not help anyone. “This is about opening up the possibility for deals and discussions with medical and adult use states where cannabis cultivation is more difficult and more costly [and] where it’s not practical to incentivize large amounts of investment in production.”
Smith predicted that some of the first cross border agreements between states would be inked before the end of this year. He said that he believes it will be the most significant shift since the legalization of the first states. “And I don’t think most people see it coming.”
Before the end of the legislative session, lawmakers had been working on dozens of bills, including some drug-related ones. The Senate approved a measure that would make the state more interested in psilocybin’s therapeutic use. The House amended to the bill would create a pilot program at Washington University for veterans and first responders. The Senate did not include the pilot program in the final bill. It needs to be signed off by the Senate before it can go to the governor.
Both chambers also passed legislation to prohibit employers from discriminating against applicants for jobs who have tested positive for marijuana use. This would not apply to people who are already employed and use off-duty cannabis.
Texas House passes bill to allow medical marijuana as an opioid alternative and replace THC limit.
Photo by Philip Steffan.
The post Washington Lawmakers Enact Interstate Marijuana Sales Bill was first published on Marijuana Moment.
