In a move that would further loosen America’s marijuana markets, a bill filed in Washington State last week seeks to legalize the transport of cannabis goods across state lines. The measure, which would further entrench state cannabis markets into a web of interstate commerce, includes provisions similar to laws already on the books in Oregon and California. If passed, the legislation would make it possible for businesses and consumers in legal states to engage in interstate marijuana trade without fear of federal intervention.
Senate Bill 5069
Introduced on Monday by four state senators led by Senators Ann Rivers and Karen Keiser, Senate Bill 5069 would grant the governor of Washington the right to engage in agreements with other states to facilitate transactions between state-licensed cannabis enterprises. Any products sent from out-of-state enterprises would still need to be tested in line with Washington regulations and conform with state packaging and labeling requirements.
The legislation would go into effect only if one of two conditions were met: a change in federal law that allows for the interstate transfer of cannabis between legal businesses or the issuance of a U.S. Department of Justice opinion “allowing or tolerating” marijuana commerce across state lines.
Washington marijuana officials must still provide written notification of the federal policy change and any state-level “statutory amendments required to enable the sale, delivery, and receipt of cannabis” from out-of-state enterprises. Regulators would also need to adopt cross-border trading restrictions.
Support For The Bill
Outside supporters of interstate sales, such as the Alliance for Sensible Markets, which launched a campaign in 2020 to encourage governors to support the idea, have stated that the change would help connect cannabis supply with demand, benefiting consumers, medical patients, and businesses.
NORML, the Craft Cannabis Alliance, the Cannabis Distribution Association, the Washington State Cannabis Alliance, and other companies and policy organizations are all engaging in the effort.
The partnership has argued that cross-border trade will improve the value of farms and enterprises in “producer states” while hastening the establishment of marketplaces in newly legal consumer states, which often take years to establish.
States That Can Potentially Export And Import Cannabis In The Future
Oregon and California have already passed legislation comparable to the new Washington legislation.
In 2019, Oregon Governor Kate Brown passed legislation allowing interstate marijuana compacts to solve what many regards as an oversupply of cannabis, which drives down in-state pricing. In September, California Gov. Gavin Newsom signed legislation allowing cannabis imports and exports.
In New Jersey, Senate President Nick Scutari introduced legislation in August to legalize interstate cannabis commerce, but the bill has yet to move forward in the legislature.
The Oregon and Washington bills state that they will only take effect if federal policy changes to ensure that cross-border activity does not put states at risk of Justice Department enforcement actions. At the same time, the California statute and New Jersey bill would also allow interstate commerce to proceed if the state attorney general issues an opinion stating that the risk of federal intervention is low. A clause like this takes the choice away from the federal government and gives state officials more leeway.
This is yet another example of how states are establishing practical marijuana laws that outperform the federal government’s disastrous policies.
While the federal government’s dubious practices continue, early adopter states and others will be allowed to build a model and experiment with their legislation. These states have realized how critical it is to be able to export their valued brands and products beyond state borders.
While more states continue to pass decent marijuana legislation, it appears doubtful that this trend would reverse itself, given how the federal government has been dragging its feet on marijuana policy.
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