The proposed bill aims to enhance Washington's cannabis industry by removing barriers to investment and modifying licensing requirements. A significant change is the elimination of the in-state residency requirement for investors, allowing non-residents to invest in Washington cannabis businesses, which is expected to promote competition and innovation. The bill also introduces provisions for cannabis producer licenses, including the suspension of inactive licenses until a federal marketplace is established, addressing oversupply issues. It maintains strict transparency requirements for investors to ensure accountability within the industry. Additionally, the application and annual fees for cannabis licenses are set at $250 and $1,381, respectively, and it clarifies that a cannabis producer's license must be issued according to specific regulations.

Furthermore, the bill redefines "chronic illegal activity" to provide clearer guidelines for local authorities when objecting to license applications and allows for the reimbursement of annual cannabis license renewal fees for licensees who submit a social equity plan, with certain eligibility limitations. It emphasizes local input in the licensing process, requiring the board to consider objections from city or county legislative authorities based on existing local ordinances and chronic illegal activity associated with the applicant. The effective date of the act is set for January 1, 2026, ensuring a structured implementation of these changes.

Statutes affected:
Original Bill: 69.50.325, 69.50.335