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House Judiciary Committee advances substitute and amendment to Senate Bill 56, favorably reports bill
Summary
The committee accepted a dash-16 substitute for Senate Bill 56, adopted an amendment to modify expungement language to conform with the Bloom decision, and voted to favorably report the bill (8 yes, 5 no); the bill restores a 36% local revenue share and creates regulatory pathways for intoxicating hemp, THC beverages, and expungement processes.
The House Judiciary Committee on Feb. 20 accepted a substitute for Senate Bill 56, adopted an amendment to refine expungement language, and then voted to favorably report the bill and recommend its passage.
Representative Stewart moved to accept the dash-16 substitute and outlined key provisions: preserving the core elements of the Issue 2 initiated statute (including allowance for 12 home-grown plants, possession, sharing between adults), prohibiting public consumption, establishing a regulated, licensed pathway for intoxicating hemp limited to dispensaries (not convenience stores), aligning potency, advertising and operating restrictions with marijuana for dispensaries, applying a 10% tax to intoxicating hemp as with adult-use marijuana, and clarifying rules for THC beverages (allowing on-premises service below specified milligram limits and limited carryout). Stewart also said the bill includes an expungement process for past possession convictions now made legal and that the substitute underwent 16 iterations to incorporate stakeholder feedback.
Representative Callender praised the substitute for preserving protections from Issue 2 (sharing, home grow, local tax distribution) while acknowledging outstanding issues and promising further legislation. Ranking Member Sennenberg said she would vote no today because committee members received the final language late and had limited opportunity for additional testimony amid an expedited timeline driven by executive and court actions.
Representative Thichmann Antonio asked about differential penalties for drinkable cannabinoid products versus underage alcohol sales; Stewart said the dash-16 harmonizes penalties so that first-offense selling intoxicating hemp to an adult is an M1 misdemeanor and second offense is an F5, bringing hemp penalties in line with cannabis and reducing harsher treatment from earlier drafts.
Representative Tims expressed concern that legalization could enrich a few while others remain burdened by past convictions and urged consideration of automatic expungement or proactive notice to eligible people; Stewart said the bill provides an expedited process to petition for expungement and that an amendment from Representative Williams would address additional constitutional concerns.
Representative Odioso asked whether local governments would receive revenue; Stewart explained a drafting defect in the initiated statute left no authorizing mechanism, effectively reducing the intended 36% local share to 0%; the substitute restores a 36% local share in perpetuity and provides mechanisms to release those funds to local governments.
Representative Williams offered Amendment 1084 to modify the expungement section to reflect the Bloom decision by giving courts a balancing test and shifting the burden to the state; the clerk recorded the roll call and the amendment passed on a 12-1 vote. Representative Stewart then moved to favorably report Senate Bill 56 out of committee; the roll call recorded 8 yes votes and 5 no votes, and Chairman Thomas declared the bill favorably reported. Stewart said the bill will go to rules and be re-referred to the finance committee.
The committee noted two submitted testimonies were entered into the record on members' iPads. The fourth and final hearing for Senate Bill 56 concluded and the committee moved to other bills.
