The proposed bill seeks to stimulate the growth of Washington's cannabis industry by removing barriers to investment and revising 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 anticipated to enhance 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. Additionally, it maintains strict transparency requirements for investors to ensure accountability within the industry.

Amendments to existing laws include a revised application and renewal process for cannabis licenses, with a specified application fee of $250 plus any additional fees under RCW 69.50.331(1), and an annual renewal fee of $1,381. The bill clarifies that individuals holding more than 10% ownership in a cannabis entity must be named on the license, while those with lesser stakes are exempt from this requirement. It also grants the board authority to impose additional fees for non-resident investigations and mandates the suspension of licenses with no recorded activity within a specified timeframe. Furthermore, the bill emphasizes local government input in the licensing process and sets a future effective date of January 1, 2026, for the new regulations, aiming to enhance regulatory oversight and community involvement while ensuring compliance with public safety standards.

Statutes affected:
Original Bill: 69.50.325, 69.50.335