SENATE BILL REPORT
SB 5363
As Reported by Senate Committee On:
Labor & Commerce, February 13, 2023
Title: An act relating to cannabis retailer advertising.
Brief Description: Concerning cannabis retailer advertising.
Sponsors: Senators MacEwen and Stanford.
Brief History:
Committee Activity: Labor & Commerce: 1/30/23, 2/13/23 [DP].
Brief Summary of Bill
  • Restricts the Liquor and Cannabis Board from regulating the size of certain licensed cannabis retailer signs and billboards, and places the regulation under the authority of local jurisdictions.
SENATE COMMITTEE ON LABOR & COMMERCE
Majority Report: Do pass.
Signed by Senators Keiser, Chair; Conway, Vice Chair; Saldaña, Vice Chair; King, Ranking Member; Braun, MacEwen, Robinson, Schoesler and Stanford.
Staff: Matt Shepard-Koningsor (786-7627)
Background:

The Liquor and Cannabis Board (LCB) regulates the adult-use, recreational cannabis system in Washington.  State statutes, and regulations adopted by LCB specify requirements of cannabis signage and advertising.

 

Cannabis Retailer Signage.  Outdoor Signage.  Except for the use of billboards authorized under state law, licensed cannabis retailers may not display any signage outside of the licensed premises, other than two signs identifying the retail outlet by the business or trade name, stating the location of the business, and identifying the nature of the business.  Each sign must be no larger than 1600 square inches, be permanently affixed to a building or other structure, and is subject to other requirements and restrictions established in law, including, without limitation, restrictions on depicting cannabis plants or products, or images that might be appealing to children.  LCB rules specify the text and images permissible on outdoor advertising.  Outdoor advertising and billboards are prohibited in specified locations, such as arenas, stadiums, and shopping malls.

 

Indoor Signage.  Advertising signs within the premises of a retail cannabis business visible to the public from outside the premises are subject to the same requirements applicable to outdoor signs, with certain exceptions.

 

Local Jurisdictions.  A city, town, or county may adopt rules of outdoor advertising by licensed cannabis retailers that are more restrictive, and must enforce its own restrictions.
Summary of Bill:

LCB may not regulate the size of retail signs, whether indoor or outdoor, and billboards for licensed cannabis retailers.  Licensed cannabis retailers are subject to any size requirements for retail signs and billboards of the city, town, or county in which the retailer is located.  LCB's rule-making authority regarding any other advertising requirements is not affected.  The requirement for retail signs to not exceed 1600 square inches is removed.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:

PRO:  This seeks to return signage to local control and allow them to regulate this more or less robustly as they see fit.  This is a narrow issue and is limited to allowing local jurisdictions to oversee signage.  Under current law, a cannabis store in a strip mall cannot put a sign on the totem.  This bill would modernize regulating signage.  This bill would put state law in line with a 2019 King County Superior Court decision, holding that LCB's strict signage rules violated the First Amendment.  This is about normalization of cannabis.

 

CON:  Many cannabis signs appeal to youth and we want to make sure the regulations stay in place. 

 

OTHER:  Advertising to youth is a high priority of the prevention community, and this bill goes against that.
Persons Testifying: PRO: Senator Drew MacEwen, Prime Sponsor; Vicki Christophersen, Washington CannaBusiness Association; Adan Espino Jr, Craft Cannabis Coalition; Burl Bryson, The Cannabis Alliance.
CON: Linda Thompson, Washington Association for Substance Misuse and Violence Prevention (WASAVP).
OTHER: Hailey Croci.
Persons Signed In To Testify But Not Testifying: No one.