The bill seeks to promote the growth of Washington's cannabis industry by removing barriers to investment and updating licensing requirements. Notably, it eliminates the in-state residency requirement for investors, allowing non-residents to invest in Washington cannabis businesses, which is expected to enhance competition and access to funding. The bill also addresses market oversupply by introducing provisions for the suspension of inactive cannabis producer licenses until a federal or interstate cannabis marketplace is established. Additionally, it amends existing laws related to cannabis licenses, specifying that individuals with less than a 10% ownership stake are not required to qualify for or be named on the license, and clarifies the application and renewal fees for cannabis licenses.

Moreover, the bill introduces new provisions for witness fees and mileage, ensuring compensation for witnesses involved in inquiries or hearings without requiring advance payment. It clarifies the process for handling disobedience to subpoenas and outlines the responsibilities of licensees during license suspension or cancellation. The bill also establishes guidelines for local authorities to object to new or renewed licenses based on proximity to certain facilities and defines "chronic illegal activity" while evaluating objections from local authorities. It encourages cannabis licensees to submit social equity plans and provides for the reimbursement of renewal fees for those who do. The legislation includes definitions relevant to its provisions and sets an effective date of January 1, 2026, aiming to enhance regulatory oversight and promote social equity within the cannabis industry.

Statutes affected:
Original Bill: 69.50.325, 69.50.335