Washington State votes to legalize interstate cannabis trade

Last week, the Washington State Senate approved a bill that would allow cannabis businesses to engage in interstate commerce.

The measure, approved by a 40-8 vote, would give the governor the authority to enter into agreements with other U.S. states where cannabis is legal to allow imports and exports between licensed cannabis businesses.

«It’s no secret that Washington has been a leader in the cannabis industry,» said Republican Senator Ann Rivers, the bill’s sponsor, before the vote. «We’ve taken significant steps to ensure that the product made here is properly regulated, tested, and of the highest quality. We know that Federal legalization is on the horizon. »We've seen bills introduced, and we get the impression that we're getting closer."

But the state’s industry «could be left in the dust if we are absent and unable to act» when federal law changes, she said. «We can therefore entrust our governor with the task of overseeing this industry and ensuring that goods can move from our state to other states and back home in a legal, safe, and enforceable manner.»

Under the Bill SB 5069, cannabis products from companies located outside the state would be required to comply with Washington’s regulations, particularly regarding packaging and labeling.

However, it would take effect only under one of the following two conditions: 1) if federal law is amended «to permit the interstate transfer of cannabis» between legal businesses, or 2) if the U.S. Department of Justice issues a notice «authorizing or tolerating» the interstate commerce of cannabis.

If either of these conditions is met, state regulators will be required to provide written notice of the change in federal policy, as well as of any «statutory amendments necessary to authorize the sale, the delivery, and the receipt of cannabis» by businesses outside the state. Regulators would also be required to adopt the necessary rules for interstate commerce.

The governor of California signed a similar measure last year. Before that, Oregon Governor Kate Brown, signed a law on interstate commerce of cannabis in 2019.

On the other side of the country, the president of the New Jersey Senate introduced a similar bill last year, but it has not yet been enacted.