The bill aims to enhance the accessibility and competitiveness of Washington's cannabis industry by amending existing laws and introducing new provisions that specifically address the challenges faced by social equity applicants. Key changes include the elimination of state residency requirements for cannabis business licenses, allowing non-residents to apply and thereby broadening access to investment capital. The bill also proposes tax incentives for investors and a time-limited tax exemption from the business and occupations tax for cannabis businesses licensed under the social equity program. Additionally, it modifies application fees for cannabis licenses to a base fee of $250, while maintaining the annual renewal fee at $1,381.

Further amendments focus on the licensing process and the proximity of cannabis businesses to schools and public facilities. The bill requires that if an applicant requests a hearing, board representatives must provide justification for any initial license denials. It also establishes a distance requirement of 1,000 feet from certain facilities for licensing, with local jurisdictions allowed to reduce this distance to a minimum of 100 feet under specific conditions. Moreover, the legislation introduces a five-year tax exemption for cannabis businesses under the social equity program that exceed $5,000 in sales, aiming to support these businesses in overcoming historical disadvantages. A performance statement is included to evaluate the effectiveness of this tax preference, ensuring ongoing support for social equity businesses in a competitive market.

Statutes affected:
Original Bill: 69.50.325, 69.50.335