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, including adjustments to 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 for retailers that do not become operational within a specified timeframe, while allowing the board discretion to extend this period. Other provisions include requirements for licensees to return licenses upon suspension or cancellation, display conditions and restrictions on licenses, and prohibit the employment of individuals under 21. The bill recognizes cannabis as an agricultural product, allows licensed producers to form agricultural organizations, and introduces tax exemptions for social equity program participants, all aimed at addressing historical inequities in cannabis licensing and supporting disadvantaged business owners.

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