The bill seeks to enhance equity in Washington's cannabis industry by removing the state's residency requirement for cannabis licensees, which has been a barrier for social equity applicants in securing funding and investment. This change aims to level the playing field for Washington's cannabis businesses compared to those in other states without such restrictions. Additionally, the legislation introduces tax incentives, including a time-limited tax exemption from the business and occupations tax for cannabis producers, processors, and retailers licensed through the cannabis social equity program, thereby addressing the unique challenges faced by these businesses.

Amendments to existing cannabis licensing laws include a specified application fee of $250, with an annual renewal fee of $1,381, and provisions for the board to impose additional fees for investigating non-residents. The bill also mandates that board representatives must justify any license denials if a hearing is requested, and it requires notification of local authorities upon granting a license. Furthermore, local jurisdictions can enact ordinances to adjust distance restrictions for cannabis premises from schools and other facilities, provided public safety is not compromised. A new section introduces a five-year tax exemption for social equity program licensees after surpassing $5,000 in sales, with a performance statement included to assess the effectiveness of this tax preference. Overall, the bill aims to create a more equitable and competitive environment for cannabis businesses in Washington.

Statutes affected:
Original Bill: 69.50.325, 69.50.335