[Palmetto Balsa]

Either way (fully dried or not) would work fine with lacquer primer. If the propionate sealer has fully dried and all the solvents have evaporated, the solvents in the lacquer primer will etch into the propionate and bond the two together.
Tip for using propionate as a topcoat over lacquers: Spray the final paint job with one or two thin coats of clear lacquer (propionate solution can be sprayed with a airbrush in place of lacquer). I spray 3 thin coats of propionate and with in 5 minutes the bait is ready to start dipping for a final topcoat.
New tip to get a crystal clear finish on the last dip: On the final dip of the topcoat or when sealing. As soon as you remove the bait from the propionate dip hang the bait in a empty jar and place the lid on it. The best way I have found to do this, is to get a mason jar and punch 3 or 4 small hole in the center of the lid. Then bend a piece of wire into a small hook and hang it through a hole in the lid. Then as soon as the bait if removed from the propionate hang it on the hook and just place the lid on the jar. The solvents will evaporate slower and the moisture that causes the blushing will be pushed out of the top of the jar. After about 5 min. the bait can be removed and it will dry crystal clear. I am able to hang 2 or 3 baits at once in the same wide mouth jar.
Good luck, and I will try to answer any more questions.