This bill aims to support a sustainable cannabis industry in Washington by allowing direct-to-consumer sales of cannabis flower from licensed producers and processors. Starting in 2024, cannabis producers and processors will be permitted to sell cannabis flower directly to consumers, provided that the sales are limited to products produced at their licensed locations and comply with existing regulations. The bill emphasizes that these changes are intended to support small and independent producers without replacing existing cannabis retail licensees. Additionally, the Washington State Liquor and Cannabis Board is granted the authority to adopt rules regarding security and operational requirements for these direct sales, ensuring that they are not more stringent than those imposed on cannabis retailers.

The bill also amends existing laws related to cannabis licensing and taxation. It updates the cannabis producer's and processor's licenses to include the ability to sell cannabis flower directly to consumers, while maintaining the annual fees for these licenses at $1,381. Furthermore, the cannabis excise tax is set at 37% of the selling price for retail sales, which must be itemized separately from other taxes. The bill includes provisions for tax exemptions for qualifying patients purchasing from retailers with a medical cannabis endorsement until June 30, 2029. Overall, the legislation seeks to enhance the viability of the cannabis industry in Washington while ensuring compliance with state regulations.

Statutes affected:
Original Bill: 69.50.325, 69.50.335