The bill amends RCW 69.50.325 to impose new restrictions on financial interest agreements for licensed cannabis retailers in Washington State. Specifically, it limits an individual retail licensee and all associated persons or entities to holding a maximum of five retail cannabis licenses collectively. Additionally, it prohibits these licensees from entering into management agreements or any other agreements that confer a financial interest across more than five retail cannabis licenses. The definition of "financial interest" is expanded to include various forms of profit-sharing, operational control, and coordinated marketing efforts.

Furthermore, the bill establishes a process for the forfeiture of cannabis retailer licenses if the retailer is not fully operational within a specified timeframe after license issuance. It includes provisions that prevent forfeiture within the first nine months and allows for extensions under certain circumstances. The act is set to take effect on January 1, 2026, and applies retroactively to agreements made before this date while also governing agreements entered or renewed thereafter.

Statutes affected:
Original Bill: 69.50.325, 69.50.335
Substitute Bill: 69.50.325
Engrossed Substitute: 69.50.325
Bill as Passed Legislature: 69.50.325
Session Law: 69.50.325