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. A new section is added to chapter 69.50 RCW, defining the tiers based on production space size and establishing revenue thresholds 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, limiting production space, although producers may request a one-year exemption under extenuating circumstances. The bill also amends existing laws regarding cannabis licenses, maintaining application and renewal fees while introducing stricter conditions for license forfeiture if retailers are not operational within 24 months.

Additionally, the bill emphasizes local government involvement in the licensing process, requiring the board to consider objections from city or county authorities related to chronic illegal activity associated with applicants. It establishes criteria for licensing cannabis research facilities near schools and playgrounds, including enhanced security measures. The bill also mandates that if a hearing is requested by an applicant, board representatives must justify any initial denial of a license or renewal. Furthermore, it prohibits the issuance of licenses for premises within 1,000 feet of certain facilities, although local jurisdictions can reduce this distance to a minimum of 100 feet. The bill encourages cannabis licensees to submit social equity plans, offering reimbursement for the annual license renewal fee to compliant applicants, with specific eligibility limitations.

Statutes affected:
Original bill: 69.50.325, 69.50.335