The bill introduces new regulations for cannabis producers in Washington State, specifically targeting tier two and tier three producers to prevent an oversupply of cannabis. It establishes a new section in chapter 69.50 RCW that defines these tiers based on production space size and sets revenue threshold requirements for license renewal. Tier three producers must demonstrate minimum gross sales of $24,000 per month or $288,000 annually, while tier two producers must show $8,000 per month or $96,000 annually. Failure to meet these thresholds will result in a downgrade to a lower tier with reduced production space, although producers can request a one-year exemption under extenuating circumstances.

Additionally, the bill amends existing laws regarding cannabis licenses, incorporating the new revenue requirements into the renewal process while maintaining application and renewal fees at $250 and $1,381, respectively. It introduces stricter conditions for license forfeiture if a cannabis retailer is not operational within a specified timeframe, with provisions for extensions. The bill also addresses the proximity of cannabis businesses to schools and public facilities, requiring justification for license denials and allowing local jurisdictions to adjust distance requirements. Furthermore, it emphasizes local objections based on illegal activity and encourages cannabis licensees to submit social equity plans, with provisions for fee reimbursements upon confirmation of such submissions starting January 1, 2024.

Statutes affected:
Original bill: 69.50.325, 69.50.335