Washington Lawmakers Set To Enact Interstate Marijuana Sales Bill!
Legislation that would enable licensed marijuana enterprises to conduct cross-border business with cannabis businesses in other legal states is about to be approved by Washington State legislators.
On Wednesday, the final day of the legislative session, the state’s House of Representatives passed the SB 5069 legislation by a vote of 71 to 26. On the House floor, members agreed on a small adjustment to fix what was referred to as a scrivener’s error in the Senate’s version from last month. In order for Gov. Jay Inslee (D) to sign the bill, it still needs one more final Senate approval, according to the fix.
The law would not instantly permit the interstate trade in cannabis. Instead, it would grant the governor the power to sign agreements with other states that have legalized marijuana only if federal law is changed to permit interstate transfers of cannabis or if the U.S. Department of Justice (DOJ) issues a statement approving or tolerating marijuana commerce across state lines.
The government occasionally lags behind current developments. Rep. Sharon Wylie (D) stated on the floor on Wednesday that this is just a small step toward being proactive. We don’t know how the federal government would behave if it took action while we weren’t in session. Although we are unsure of when they will take action, this sends a signal and positions us for a responsible response.
Similar measures have previously been passed in California and Oregon, the other two West Coast states. However, California would also let the state’s attorney general, in the absence of further federal action, to initiate the policy shift through a legal opinion. State regulators asked the office of Attorney General Rob Bonta (D) to create that guidance in January.
According to Wylie, who spoke on the floor of the Washington House on Wednesday, this equalizes the playing field between us and those other states and ensures that our vendors and licensees are aware of what is happening in their own communities.
If one of the two federal requirements is satisfied, the proposed legislation would force state regulators to notify the public in writing of the change in federal policy as well as any modifications to state law required to permit the sale, delivery, and acceptance of cannabis from out-of-state businesses. The governor would have the power to engage into agreements with other states, but regulators would still need to approve the required standards for marijuana imports and exports.
It would be necessary for goods imported from out-of-state companies to adhere to Washington standards, particularly those pertaining to packaging and labeling.
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Before what many consider to be the inevitable end of federal prohibition, supporters in Olympia have portrayed the measure as a method to keep Washington’s legal cannabis economy competitive with out-of-state enterprises.
Sen. Ann Rivers (R), the bill’s primary sponsor before last month’s Senate floor vote, referred to Washington, which legalized cannabis for adults through a ballot initiative in 2012, as a trailblazer in the cannabis sector. But she emphasized that if we are absent and unable to respond when federal law changes, the state risks being left behind.
We are aware that federal legalization is on the horizon. It feels like it’s getting closer now that bills have been introduced, she added. According to her, SB 5069 gives the governor the responsibility of protecting this industry and ensuring that trade may move from our state to other states and back to us in a legal, secure, and enforceable manner.
The Washington State law is the most recent state-level effort to get ready for potential interstate cannabis commerce even while marijuana is still illegal on the federal level. A similar bill was signed into law by the governor of California last year, and the interstate marijuana commerce bill was signed into law by the governor of Oregon in 2019.
Adam Smith, the head of the organization Alliance for Sensible Markets, which promotes interstate cannabis trading, said that this will give us all three West Coast states with interstate commerce laws. That wasn’t a mistake. Since the initial measure in Oregon was passed in 2019, we have been working on that.
According to Smith, states won’t have to wait for federal legalization before negotiating cross-border agreements. He believes that the laws enacted by West Coast states will persuade the Biden Administration to provide agency recommendations enabling interstate commerce.
Smith added, “We are on the verge of something.” We want states to acknowledge that they have participated in the political process. We are prepared to communicate with other nations. We only need confirmation that you mean it when you claim you won’t prosecute anyone for behaving in accordance with state law.
He continued, there is just no legal justification and no practical reason for the DOJ to say, “Oh no, but we will draw the line at moving cannabis from California to New Jersey.” If the DOJ is willing to permit state regulation of a sector that is illegal under federal law.
Finally, Smith said, laws like Washington’s would let states choose to join a federal marijuana market. Long-established producer states, such as those on the West Coast, may have opportunity to sell their goods to other markets for better prices as a result. Instead of each state developing its own legal sector, those with less favorable producing circumstances for cannabis or those just setting up a legal market might import goods from elsewhere.
All of this has nothing to do with promoting trade between Oregon, California, and Washington. Sending cheap marijuana back and forth across those borders won’t assist anyone, he claimed. By doing this, the door is being left open for negotiations and partnerships with states that have legalized marijuana for medical and adult use, where producing it is more challenging and expensive, and where it makes little sense to provide financial incentives for production.
By the end of the year, according to Smith, some of the first cross-border agreements between states may be signed. He claimed that the change is the most significant to have occurred since the first states legalized marijuana and that most people are unaware of it.
Before the end of the legislative session on Wednesday, lawmakers were going through scores of proposals, including a few that dealt with drugs. One Senate proposal, which the House passed on Tuesday, would obligate the state to continue researching psilocybin’s potential as a treatment. A House amendment to the bill would launch a University of Washington pilot program for the treatment of veterans and first responders. The pilot program needs the Senate’s approval before heading to the governor because it was not included in the version of the measure that passed the Senate.
Additionally, legislation that forbids discrimination against job candidates in the state who test positive for marijuana usage during the hiring process has been approved by both chambers of the legislature. Cannabis usage by those who are already working while off-duty would not be covered by this.
