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HB1704 • 2026

Cannabis revenue/local gov.

Increasing cannabis revenue distributions to local governments.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Schmidt, Representative Zahn, Representative Eslick, Representative Walen, Representative Low, Representative Barnard
Last action
2026-01-12
Official status
H Approps
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Cannabis revenue/local gov.

Cannabis revenue/local gov.

What This Bill Does

  • Cannabis revenue/local gov.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-12 House

    By resolution, reintroduced and retained in present status.

Official Summary Text

Cannabis revenue/local gov.

Current Bill Text

Read the full stored bill text
AN ACT Relating to increasing cannabis revenue distributions to 1
local governments; and amending RCW 69.50.540. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 69.50.540 and 2023 c 470 s 1015 are each amended to 4
read as follows: 5
(1) For the purposes of this subsection (1), the legislature must 6
appropriate the amounts provided in this subsection:7
(a) $12,500,000 annually to the board for administration of this 8
chapter as appropriated in the omnibus appropriations act;9
(b) $11,000,000 annually to the department of health for the 10
following: 11
(i) Creation, implementation, operation, and management of a 12
cannabis, vapor product, and commercial tobacco education and public 13
health program that contains the following: 14
(A) A cannabis use public health hotline that provides referrals 15
to substance abuse treatment providers, uses evidence-based or 16
research-based public health approaches to minimizing the harms 17
associated with cannabis use, and does not solely advocate an 18
abstinence-only approach; 19
(B) Programs that support development and implementation of 20
coordinated intervention strategies for the prevention and reduction 21
H-0728.1
HOUSE BILL 1704
State of Washington 69th Legislature 2025 Regular Session
By Representatives Schmidt, Zahn, Eslick, Walen, Low, and Barnard
Read first time 01/29/25. Referred to Committee on Appropriations.
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of commercial tobacco, vapor product, and cannabis use by youth and 1
cannabis cessation treatment services, including grant programs to 2
local health departments or other local community agencies;3
(C) Media-based education campaigns across television, internet, 4
radio, print, and out-of-home advertising, separately targeting youth 5
and adults, that provide medically and scientifically accurate 6
information about the health and safety risks posed by cannabis use; 7
and 8
(D) Outreach to priority populations regarding commercial 9
tobacco, vapor product, and cannabis use, prevention, and cessation; 10
and 11
(ii) The Washington poison control center; 12
(c)(i) $3,000,000 annually to the department of commerce to fund 13
cannabis social equity grants under RCW 43.330.540; and14
(ii) $200,000 annually to the department of commerce to fund 15
technical assistance through a roster of mentors under RCW 16
43.330.540; 17
(d) $200,000 annually, until June 30, 2032, to the health care 18
authority to contract with the Washington state institute for public 19
policy to conduct the cost-benefit evaluations and produce the 20
reports described in RCW 69.50.550; 21
(e) $25,000 annually to the University of Washington alcohol and 22
drug abuse institute for the creation, maintenance, and timely 23
updating of web-based public education materials providing medically 24
and scientifically accurate information about the health and safety 25
risks posed by cannabis use; 26
(f) $300,000 annually to the University of Washington and 27
$175,000 annually to the Washington State University for research on 28
the short-term and long-term effects of cannabis use to include, but 29
not be limited to, formal and informal methods for estimating and 30
measuring intoxication and impairments, and for the dissemination of 31
such research; 32
(g) $550,000 annually to the office of the superintendent of 33
public instruction to fund grants to building bridges programs under 34
chapter 28A.175 RCW; 35
(h) $2,423,000 for fiscal year 2022 and $2,423,000 for fiscal 36
year 2023 to the Washington state patrol for a drug enforcement task 37
force; 38
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(i) $270,000 for fiscal year 2022 and $290,000 for fiscal year 1
2023 to the department of ecology for implementation of accreditation 2
of cannabis product testing laboratories; 3
(j) $800,000 for each of fiscal years 2020 through 2023 to the 4
department of health for the administration of the cannabis 5
authorization database; and 6
(k) $621,000 for fiscal year 2022 and $635,000 for fiscal year 7
2023 to the department of agriculture for compliance-based laboratory 8
analysis of pesticides in cannabis. 9
(2) ((Subsections [Subsection])) Subsection (1)(a) through (g) of 10
this section must be adjusted annually based on the United States 11
bureau of labor statistics' consumer price index for the Seattle 12
area. 13
(3) After appropriation of the amounts identified in subsection 14
(1) of this section, the legislature must annually appropriate such 15
remaining amounts for the purposes listed in this subsection (3) as 16
follows: 17
(a) ((Fifty-two)) 52 percent to the state basic health plan trust 18
account to be administered by the Washington basic health plan 19
administrator and used as provided under chapter 70.47 RCW;20
(b) ((Eleven)) 11 percent to the health care authority to:21
(i) Design and administer the Washington state healthy youth 22
survey, analyze the collected data, and produce reports, in 23
collaboration with the office of the superintendent of public 24
instruction, department of health, department of commerce, family 25
policy council, and board. The survey must be conducted at least 26
every two years and include questions regarding, but not necessarily 27
limited to, academic achievement, age at time of substance use 28
initiation, antisocial behavior of friends, attitudes toward 29
antisocial behavior, attitudes toward substance use, laws and 30
community norms regarding antisocial behavior, family conflict, 31
family management, parental attitudes toward substance use, peer 32
rewarding of antisocial behavior, perceived risk of substance use, 33
and rebelliousness. Funds disbursed under this subsection may be used 34
to expand administration of the healthy youth survey to student 35
populations attending institutions of higher education in Washington;36
(ii) Develop, implement, maintain, and evaluate programs and 37
practices aimed at the prevention or reduction of maladaptive 38
substance use, substance use disorder, substance abuse or substance 39
dependence, as these terms are defined in the diagnostic and 40
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statistical manual of mental disorders, among middle school and high 1
school-age students, whether as an explicit goal of a given program 2
or practice or as a consistently corresponding effect of its 3
implementation, mental health services for children and youth, and 4
services for pregnant and parenting women. In deciding which programs 5
and practices to fund under this subsection (3)(b)(ii), the director 6
of the health care authority must consult, at least annually, with 7
the University of Washington's social development research group and 8
the University of Washington's alcohol and drug abuse institute; and9
(iii) Contract with community health centers to provide primary 10
health and dental care services, migrant health services, and 11
maternity health care services as provided under RCW 41.05.220;12
(c)(i) ((One and one-half )) Seven percent to counties, cities, 13
and towns where licensed cannabis retailers are physically located. 14
Each jurisdiction must receive a share of the revenue distribution 15
under this subsection (3)(c)(i) based on the proportional share of 16
the total revenues generated in the individual jurisdiction from the 17
taxes collected under RCW 69.50.535, from licensed cannabis retailers 18
physically located in each jurisdiction. For purposes of this 19
subsection (3)(c), 100 percent of the proportional amount attributed 20
to a retailer physically located in a city or town must be 21
distributed to the city or town; 22
(ii) ((Three and one-half )) 10 percent to counties, cities, and 23
towns ratably on a per capita basis. Counties must receive 60 percent 24
of the distribution based on each county's total proportional 25
population. Funds may only be distributed to jurisdictions that do 26
not prohibit the siting of any state licensed cannabis producer, 27
processor, or retailer; 28
(iii) By September 15th of each year, the board must provide the 29
state treasurer the annual distribution amount made under this 30
subsection (3)(c), if any, for each county and city as determined in 31
(c)(i) and (ii) of this subsection; and 32
(iv) Distribution amounts allocated to each county, city, and 33
town in (c)(i) and (ii) of this subsection must be distributed in 34
four installments by the last day of each fiscal quarter; and35
(d) ((Thirty-two)) 20 percent must be deposited in the state 36
general fund. 37
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