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Senate committee hears explanation of S5277 to allow entities to hold membership in adult-use cannabis cooperatives
Summary
Senator Bailey’s bill S5277 would permit legal entities such as LLCs or corporations to be members of adult-use cannabis cooperatives; a staff explainer said cooperatives would still be subject to democratic control and other limitations.
The Senate Investigations and Government Operations Committee discussed S5277, a bill sponsored on the floor by Senator Bailey that would expand who may hold membership in an adult-use cooperative cannabis license.
Senator Bailey placed the bill before the committee and a committee member asked, "Expanding it to who exactly?" A staff member explained: "So this would allow a cannabis group that may have a person who is not a natural person. So in theory, a corporate person could become part of a cooperative licensee. Because right now, it just says that all must be natural persons." The staff member added that an LLC, partnership or other legal entity could be a member under the proposed change, while other cooperative limitations—such as democratic control by members and limitations on capital—would still apply.
After the explanation, a motion to report the bill was seconded and advanced by voice vote. Chair James Scoofus called for the ayes and then recorded the bill as reported: "All in favor? Aye. Any opposed? Without rec, bill is reported," consistent with the committee's practice on most agenda items.
The transcript does not include bill text, fiscal notes, or a roll-call tally showing how many senators voted in favor; those details are expected to be considered later in the legislative process. The committee referred the bill onward consistent with routine committee procedure.
