The bill seeks to modernize Washington state's adult-use cannabis laws by removing barriers for social equity applicants and enhancing the competitiveness of the cannabis industry. A significant change is the elimination of the state residency requirement for cannabis licensees, which has previously restricted access to investment capital from out-of-state investors. Additionally, the bill introduces tax incentives, including time-limited exemptions from the business and occupation tax for cannabis producers, processors, and retailers licensed through the social equity program, aimed at helping these applicants overcome financial challenges and promoting diversity within the industry.

The legislation also amends existing regulations concerning cannabis licenses, adjusting application and renewal fees, with an annual renewal fee of $1,657 for non-resident owners and a $250 application fee. It establishes new rules for license forfeiture and clarifies the board's authority in evaluating applications, including considerations of prior criminal history and public safety violations. Furthermore, the bill promotes social equity by exempting certain licensed businesses from taxes for five years after surpassing $5,000 in sales and allows for the transfer of licenses within the social equity program while maintaining eligibility for tax exemptions. Overall, the bill aims to create a more equitable and competitive environment for cannabis businesses in Washington, addressing historical barriers to entry for disadvantaged communities.

Statutes affected:
Original Bill: 69.50.325, 69.50.335, 19.86.070, 24.34.010