The bill seeks to regulate cannabis production in Washington State by introducing new definitions and tiered revenue threshold requirements for cannabis producers based on their cultivation methods, which include indoor, light deprivation, mixed-light, and outdoor cultivation. A new section added to chapter 69.50 RCW establishes criteria for determining a producer's cultivation method designation and mandates that tier two and tier three producers must meet specific annual gross sales thresholds to maintain their tier status, with provisions for lower tier conversions if they fail to comply. The bill also includes exemptions for extenuating circumstances and provisions for social equity licenses.

Additionally, the bill amends existing laws regarding cannabis producer, processor, and retailer licenses, requiring annual renewals that adhere to the new revenue thresholds while keeping application and renewal fees unchanged. It clarifies that multiple licenses under a shared business identifier will be treated as a single entity for revenue threshold purposes and introduces an 18-month grace period for new licensees. The bill outlines procedures for licensing, including considerations of applicants' criminal history and public safety violations, and establishes conditions for license suspension and cancellation. It also allows local jurisdictions to set distance requirements for cannabis businesses from schools and encourages the submission of social equity plans with a reimbursement mechanism. The act is set to take effect on December 11, 2026.

Statutes affected:
Original bill: 69.50.325, 69.50.335
Substitute bill: 69.50.325, 69.50.335