Today, Washington’s House Consumer Protection & Business held a public hearing on four different cannabis-related measures.
During today’s hearings, the committee covered the following four bills:
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House Bill 1346 – Removing cannabis industry barriers
House Bill 1346 modifies cannabis licensing by removing Washington residency requirements. Entities must have at least one qualifying owner with over 10% interest named on the license. Minority owners (1-10%) must be disclosed. The LCB could impose fees for nonresident investigations and deny licenses if investigations fail. Inactive producer licenses will be suspended but reissued if federal law allows interstate cannabis transfers. Directors must meet the same qualifications as licensees.
Public Hearing:
Opinions on HB 1346 were mixed, with multiple speakers both in support of the bill and in opposition.
Peter Manning from Black Excellence in Cannabis spoke first, calling the bill “a direct attack on Washington state’s social equity program” by allowing out-of-state investors to obtain retail licenses.
Mike Asai from the same group said “it’s going to decimate me, its going to decimate every social equity applicant. Do not pass this bill, it will create a Walmart of cannabis here and we do not need that.”
Trent Mason from the Washington Cannabis Licensee Association also spoke in opposition, saying the measure would punish Washington-based marijuana owners.
Eric Gaston from The Evergreen Market opposed the measure, saying that Washington’s market is currently one of the most profitable and successful in the nation, due in part to their denial of out-of-state investments and ownership of cannabis licenses.
Bethany Rondeaux from Falcanna said they “oppose House Bill 1346 for many reasons”, including the fact that it could allow out-of-state owners to devalue current marijuana businesses. Bethany said the bill “Would encourage and promote monopolies”.
Becca Burghardi from the Northwest Cannabis Solutions spoke in favor of the bill, saying it would increase marketing dollars for the state’s cannabis industry.
Jamie Hoffman from Craft Elixirs spoke in support of the measure, saying it would increase access to capital for marijuana businesses and “create a business culture that treats all businesses equally”.
Bill Wagenseller from the Washington Bud Company opposed the bill, calling it “unnecessary” and saying it would “cause more pressure on supply”.
Andy Brasington from Evergreen Herbal – “This is about normalizing the industry”, giving it “equally opportunity to other Washington businesses”. He points out that Washington is one of only two states to currently prohibit out-of-state investments in their marijuana industry.
Justin Rondeaux from BC Labs opposed the bill, saying it would “lead to further consolidation in the cannabis industry”.
Sarah Eltinge CEO of the Herbery said the bill would have “detrimental effects on the cannabis industry and the state’s economy”, saying proponents are “ignoring supply and demands basics.”
Scott Waller from the WA Association for Substance Misuse and Violence Prevention spoke in opposition to the bill, saying current law “prevents involvement from big tobacco and big pharma”.
Brooke Davies from the Washington Cannabusinesses Association spoke in favor of the bill, saying the residency requirement was only put in place because proponents of the law feared federal restrictions. She points out how Colorado initially had a similar provision in their marijuana law but have since revoked it.
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House Bill 1348 – Concerning employee ownership of licensed cannabis businesses
House Bill 1348 allows Employee Stock Ownership Plans (ESOPs) to own up to 100% of a licensed cannabis business or its parent company. Corporate officers and directors are considered the applicants or owners and must qualify for the license. ESOP participants, administrators, and trustees are not considered owners, true parties of interest, or subject to residency, background checks, or financial disclosure requirements.
Public Hearing:
HB 1348 had the fewest number of speakers.
Vicki Christophersen from the Washington Cannabusiness Association spoke in “strong support” of the measure, saying “Cannabis businesses should access this tool like every other business in Washington.”
Jesse Huminski from Fairwinds Manufacturing also spoke in support, arguing that it would help employees secure their financial futures.
Zach Richardson from ZIPS Cannabis spoke in “strong support” of the bill, saying it would help marijuana businesses recruit top talent for their companies.
Scott Atkinson, also from ZIPS Cannabis, said the bill would “allow for a more inclusive model” than the status quo.
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House Bill 1410 – Concerning the suspension of inactive cannabis producer licenses
HB 1410 requires the LCB to suspend a cannabis producer license if no activity is reported to the Department of Revenue between July 1, 2023, and December 31, 2024. Suspended licenses will be reissued if federal law allows interstate cannabis transfers or if the DOJ permits or tolerates such transfers.
Public Hearing:
During the hearing, of the 10 speakers three spoke in opposition, including the Cannabis Alliance, arguing that there are many reasons why a license may remain dormant that shouldn’t result in it being suspended.
Those speaking in favor include Shea Hynes, co-founder of the Lux Pot Shop, who argued that the bill would “address the issue of oversupply”.
Rolando Rodriguez of Green Roads Cannabis said the bill would “help level the playing field” among small and big producers and “free up supply chain opportunities” and “help stabilize pricing”.
The Washington Cannabusiness Association’s Brooke Davis similarly argued that the measure would help to create stability within the marketplace.
Washington Bud Company co-owner Shawn Denae Wagenseller spoke in strong support of the measure, saying that “zombie licenses” are disrupting the market.
Producers NW’s Ezra Eickmeyer, the longest-serving marijuana lobbyist in Washington State, spoke in favor of the bill as an effort to “prevent potential future infusion of brand new cannabis into the market”. He said that the bill is only appropriate “while we’re stuck in this intrastate market”, but it will “change radically” when interstate transport is allowed.
Two speakers from Black Excellence in Cannabis spoke in opposition to the measure, saying it’s “an insult to introduce a bill like this in black history month”, when it would impact black license holders. “prevent social equity” – This bill does not help social equity. Mike Asai said the measure would “prevent social equity”.
Bethany Rondeaux from Falcanna, Eric Gaston from The Evergreen Market, and Trent Matson from the Washington Cannabis Licensee Association Trent Matson also spoke in favor.
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House Bill 1551 – Extending the cannabis social equity program
The Program is extended to July 1, 2034, with no new license applications or issuances allowed until an evaluation is completed. By December 1, 2025, the LCB must report to the Governor and Legislature, assessing public feedback, license issuance, grant distribution, demographic data, and barriers to success. Restrictions on new applications end July 1, 2026.
Public Hearing:
HB 1551 had both supporters and opposers during the public hearing.
Peter Manning from Black Excellence in Cannabis opposed the measure, saying he believes “it paused the social equity program”, calling it “a blatant attempt to stall social equity in the cannabis industry, and the timing couldn’t be worse – black history month.”
Mike Asai, also from Black Excellence in Cannabis, said “We need to fix social equity but not pause it.”
Paula Sardina from FMS Global Strategies, the former co-chair of the social equity task force, spoke “in strong support of this bill”.
Green Roads Cannabis’s Rolando Rodriguez and Jeremy Larson from Dondo Enterprises, LLC, both social equity licensees, expressed support for some aspects of the bill, but saying it needs improvements.
