The bill seeks to enhance equity in Washington's cannabis industry by removing the state's residency requirement for cannabis license applicants, a barrier that has hindered social equity applicants from 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 bill proposes tax incentives to attract investments for social equity applicants, including a time-limited tax exemption from the business and occupations tax for licensed cannabis producers, processors, and retailers participating in the cannabis social equity program.

Amendments to existing cannabis licensing laws, specifically RCW 69.50.325 and 69.50.331, include adjustments to application fees, setting them at $250 plus any additional fees, while maintaining the annual renewal fee at $1,381. The bill also introduces provisions for the board to impose extra licensing fees for investigating non-residents and allows for license denial if thorough investigations cannot be conducted. Furthermore, it establishes a five-year tax exemption for cannabis businesses under the social equity program after surpassing $5,000 in sales, expiring on July 1, 2038. The legislation also addresses licensing proximity to schools and public facilities, requiring justifications for license denials and ensuring heightened security for research facilities near sensitive areas.

Statutes affected:
Original Bill: 69.50.325, 69.50.335