Cannabis licensing/zoning

AN ACT Relating to aligning cannabis licensing decisions by the 1
liquor and cannabis board with local zoning ordinances; and amending 2
RCW 69.50.331 and 69.51A.250. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 69.50.331 and 2023 c 220 s 2 are each amended to 5
read as follows: 6
(1) For the purpose of considering any application for a license 7
to produce, process, research, transport, or deliver cannabis, 8
useable cannabis, cannabis concentrates, or cannabis-infused products 9
subject to the regulations established under RCW 69.50.385, or sell 10
cannabis, or for the renewal of a license to produce, process, 11
research, transport, or deliver cannabis, useable cannabis, cannabis 12
concentrates, or cannabis-infused products subject to the regulations 13
established under RCW 69.50.385, or sell cannabis, the board must 14
conduct a comprehensive, fair, and impartial evaluation of the 15
applications timely received. 16
(a) The board may cause an inspection of the premises to be made, 17
and may inquire into all matters in connection with the construction 18
and operation of the premises. For the purpose of reviewing any 19
application for a license and for considering the denial, suspension, 20
revocation, cancellation, or renewal or denial thereof, of any 21
H-1103.1
HOUSE BILL 1835
State of Washington 69th Legislature 2025 Regular Session
By Representatives Burnett, Graham, Ley, Abell, Schmidt, Davis, and
Eslick
Read first time 02/04/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1835
license, the board may consider any prior criminal arrests or 1
convictions of the applicant, any public safety administrative 2
violation history record with the board, and a criminal history 3
record information check. The board may submit the criminal history 4
record information check to the Washington state patrol and to the 5
identification division of the federal bureau of investigation in 6
order that these agencies may search their records for prior arrests 7
and convictions of the individual or individuals who filled out the 8
forms. The board must require fingerprinting of any applicant whose 9
criminal history record information check is submitted to the federal 10
bureau of investigation. The provisions of RCW 9.95.240 and of 11
chapter 9.96A RCW do not apply to these cases. Subject to the 12
provisions of this section, the board may, in its discretion, grant 13
or deny the renewal or license applied for. Denial may be based on, 14
without limitation, the existence of ((chronic)) illegal activity 15
documented in objections submitted pursuant to subsections (((7))) 16
(8)(c) and (((10))) (11) of this section. Authority to approve an 17
uncontested or unopposed license may be granted by the board to any 18
staff member the board designates in writing. Conditions for granting 19
this authority must be adopted by rule. 20
(b) No license of any kind may be issued to: 21
(i) A person under the age of 21 years; 22
(ii) A person doing business as a sole proprietor who has not 23
lawfully resided in the state for at least six months prior to 24
applying to receive a license; 25
(iii) A partnership, employee cooperative, association, nonprofit 26
corporation, or corporation unless formed under the laws of this 27
state, and unless all of the members thereof are qualified to obtain 28
a license as provided in this section; ((or))29
(iv) A person whose place of business is conducted by a manager 30
or agent, unless the manager or agent possesses the same 31
qualifications required of the licensee; or32
(v) Any entity when there is a written objection from a city, 33
town, county, port authority, or tribal government of a federally 34
recognized Indian tribe, pursuant to subsection (7) of this section.35
(2)(a) The board may, in its discretion, subject to RCW 36
43.05.160, 69.50.563, 69.50.562, 69.50.334, and 69.50.342(3) suspend 37
or cancel any license; and all protections of the licensee from 38
criminal or civil sanctions under state law for producing, 39
processing, researching, or selling cannabis, cannabis concentrates, 40
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useable cannabis, or cannabis-infused products thereunder must be 1
suspended or terminated, as the case may be. 2
(b) The board must immediately suspend the license of a person 3
who has been certified pursuant to RCW 74.20A.320 by the department 4
of social and health services as a person who is not in compliance 5
with a support order. If the person has continued to meet all other 6
requirements for reinstatement during the suspension, reissuance of 7
the license is automatic upon the board's receipt of a release issued 8
by the department of social and health services stating that the 9
licensee is in compliance with the order. 10
(c) The board may request the appointment of administrative law 11
judges under chapter 34.12 RCW who shall have power to administer 12
oaths, issue subpoenas for the attendance of witnesses and the 13
production of papers, books, accounts, documents, and testimony, 14
examine witnesses, receive testimony in any inquiry, investigation, 15
hearing, or proceeding in any part of the state, and consider 16
mitigating and aggravating circumstances in any case and deviate from 17
any prescribed penalty, under rules the board may adopt.18
(d) Witnesses must be allowed fees and mileage each way to and 19
from any inquiry, investigation, hearing, or proceeding at the rate 20
authorized by RCW 34.05.446. Fees need not be paid in advance of 21
appearance of witnesses to testify or to produce books, records, or 22
other legal evidence. 23
(e) In case of disobedience of any person to comply with the 24
order of the board or a subpoena issued by the board, or any of its 25
members, or administrative law judges, or on the refusal of a witness 26
to testify to any matter regarding which he or she may be lawfully 27
interrogated, the judge of the superior court of the county in which 28
the person resides, on application of any member of the board or 29
administrative law judge, compels obedience by contempt proceedings, 30
as in the case of disobedience of the requirements of a subpoena 31
issued from said court or a refusal to testify therein.32
(3) Upon receipt of notice of the suspension or cancellation of a 33
license, the licensee must forthwith deliver up the license to the 34
board. Where the license has been suspended only, the board must 35
return the license to the licensee at the expiration or termination 36
of the period of suspension. The board must notify all other 37
licensees in the county where the subject licensee has its premises 38
of the suspension or cancellation of the license; and no other 39
licensee or employee of another licensee may allow or cause any 40
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cannabis, cannabis concentrates, useable cannabis, or cannabis-1
infused products to be delivered to or for any person at the premises 2
of the subject licensee. 3
(4) Every license issued under this chapter is subject to all 4
conditions and restrictions imposed by this chapter or by rules 5
adopted by the board to implement and enforce this chapter. All 6
conditions and restrictions imposed by the board in the issuance of 7
an individual license must be listed on the face of the individual 8
license along with the trade name, address, and expiration date.9
(5) Every licensee must post and keep posted its license, or 10
licenses, in a conspicuous place on the premises. 11
(6) No licensee may employ any person under the age of 21 years.12
(7) The board may not issue a new or renewed cannabis license for 13
any premises in which the city, town, county, port authority, or 14
tribal government of a federally recognized Indian tribe, as 15
applicable, has provided a written objection under subsection (8) of 16
this section stating that the jurisdiction's local zoning ordinances 17
prohibit the use of the property for activities authorized under the 18
terms of the applicable cannabis license. For purposes of making 19
licensing decisions in conformity with local zoning ordinances under 20
this subsection, the board may rely on a written statement submitted 21
to the board by the following entities, stating that the 22
jurisdiction's local zoning ordinances either do or do not prohibit 23
the use of the property for activities authorized under the terms of 24
the cannabis license:25
(a) The chief executive officer of the incorporated city or town 26
if the application is for a license in an incorporated city or town;27
(b) The county legislative authority if the application is for a 28
license outside the boundaries of incorporated cities or towns;29
(c) The port authority if the application is for a license on 30
property owned by a port authority; or31
(d) The tribal government if the application is for a license on 32
property within Indian country, as defined in 18 U.S.C. Sec. 1151, 33
including any fee patent lands within the exterior boundaries of a 34
reservation.35
(8)(a) Before the board issues a new or renewed license to an 36
applicant it must give notice of the application to the chief 37
executive officer of the incorporated city or town, if the 38
application is for a license within an incorporated city or town, or 39
to the county legislative authority, if the application is for a 40
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license outside the boundaries of incorporated cities or towns, or to 1
the tribal government if the application is for a license within 2
Indian country, or to the port authority if the application for a 3
license is located on property owned by a port authority.4
(b) The incorporated city or town through the official or 5
employee selected by it, the county legislative authority or the 6
official or employee selected by it, the tribal government, or port 7
authority has the right to file with the board within twenty days 8
after the date of transmittal of the notice for applications, or at 9
least thirty days prior to the expiration date for renewals, written 10
objections against the applicant or against the premises for which 11
the new or renewed license is asked. The board may extend the time 12
period for submitting written objections upon request from the 13
authority notified by the board. 14
(c) The written objections must include a statement of all facts 15
upon which the objections are based, and in case written objections 16
are filed, the city or town or county legislative authority may 17
request, and the board ((may in its discretion )) shall hold, a 18
hearing subject to the applicable provisions of Title 34 RCW. If the 19
board makes an initial decision to deny a license or renewal based on 20
the written objections of an incorporated city or town or county 21
legislative authority, the applicant may request a hearing subject to 22
the applicable provisions of Title 34 RCW. If a hearing is held at 23
the request of the applicant, board representatives must present and 24
defend the board's initial decision to deny a license or renewal. If 25
denial is based upon written objections of a city, town, county, port 26
authority, or tribal government of a federally recognized Indian 27
tribe, the board must notify the city, town, county, port authority, 28
or tribal government of a federally recognized Indian tribe and 29
provide opportunity for the city, town, county, port authority, or 30
tribal government of a federally recognized Indian tribe to provide 31
additional information in support of the board's denial.32
(d) Upon the granting of a license under this title the board 33
must send written notification to the chief executive officer of the 34
incorporated city or town in which the license is granted, or to the 35
county legislative authority if the license is granted outside the 36
boundaries of incorporated cities or towns. 37
(((8))) (9)(a) Except as provided in (b) through (e) of this 38
subsection, the board may not issue a license for any premises within 39
1,000 feet of the perimeter of the grounds of any elementary or 40
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secondary school, playground, recreation center or facility, child 1
care center, public park, public transit center, or library, or any 2
game arcade admission to which is not restricted to persons aged 21 3
years or older. 4
(b) A city, county, or town may permit the licensing of premises 5
within 1,000 feet but not less than 100 feet of the facilities 6
described in (a) of this subsection, except elementary schools, 7
secondary schools, and playgrounds, by enacting an ordinance 8
authorizing such distance reduction, provided that such distance 9
reduction will not negatively impact the jurisdiction's civil 10
regulatory enforcement, criminal law enforcement interests, public 11
safety, or public health. 12
(c) A city, county, or town may permit the licensing of research 13
premises allowed under RCW 69.50.372 within 1,000 feet but not less 14
than 100 feet of the facilities described in (a) of this subsection 15
by enacting an ordinance authorizing such distance reduction, 16
provided that the ordinance will not negatively impact the 17
jurisdiction's civil regulatory enforcement, criminal law 18
enforcement, public safety, or public health. 19
(d) The board may license premises located in compliance with the 20
distance requirements set in an ordinance adopted under (b) or (c) of 21
this subsection. Before issuing or renewing a research license for 22
premises within 1,000 feet but not less than 100 feet of an 23
elementary school, secondary school, or playground in compliance with 24
an ordinance passed pursuant to (c) of this subsection, the board 25
must ensure that the facility: 26
(i) Meets a security standard exceeding that which applies to 27
cannabis producer, processor, or retailer licensees;28
(ii) Is inaccessible to the public and no part of the operation 29
of the facility is in view of the general public; and30
(iii) Bears no advertising or signage indicating that it is a 31
cannabis research facility. 32
(e) The board must issue a certificate of compliance if the 33
premises met the requirements under (a), (b), (c), or (d) of this 34
subsection on the date of the application. The certificate allows the 35
licensee to operate the business at the proposed location 36
notwithstanding a later occurring, otherwise disqualifying factor.37
(f) The board may not issue a license for any premises within 38
Indian country, as defined in 18 U.S.C. Sec. 1151, including any fee 39
patent lands within the exterior boundaries of a reservation, without 40
p. 6 HB 1835
the consent of the federally recognized tribe associated with the 1
reservation or Indian country. 2
(((9))) (10) A city, town, or county may adopt an ordinance 3
prohibiting a cannabis producer or cannabis processor from operating 4
or locating a business within areas zoned primarily for residential 5
use or rural use with a minimum lot size of five acres or smaller.6
(((10))) (11) In determining whether to grant or deny a license 7
or renewal of any license, the board must give substantial weight to 8
objections from an incorporated city or town or county legislative 9
authority based upon ((chronic)) illegal activity associated with the 10
applicant's operations of the premises proposed to be licensed or the 11
applicant's operation of any other licensed premises, or the conduct 12
of the applicant's patrons inside or outside the licensed premises. 13
"((Chronic illegal )) Illegal activity" means : (a) ((a pervasive 14
pattern of activity )) Activity that threatens the public health, 15
safety, and welfare of the city, town, or county including, but not 16
limited to, open container violations, assaults, disturbances, 17
disorderly conduct, or other criminal or civil law violations, or as 18
documented in crime statistics, police reports, emergency medical 19
response data, calls for service, field data, or similar records of a 20
law or code enforcement agency for the city, town, county, or any 21
other municipal corporation or any state agency; or (b) an 22
unreasonably high number of citations for violations of RCW 46.61.502 23
associated with the applicant's or licensee's operation of any 24
licensed premises as indicated by the reported statements given to 25
law enforcement upon arrest. 26
(((11))) (12) The board may not issue a cannabis retail license 27
for any premises not currently licensed if: 28
(a) The board receives a written objection from the legislative 29
authority of an incorporated city or town, or county legislative 30
authority, relating to the physical location of the proposed 31
premises; 32
(b) The objection to the location from the incorporated city or 33
town, or county legislative authority, is received by the board 34
within 20 days of the board notifying the incorporated city or town, 35
or county legislative authority, of the proposed cannabis retail 36
location; and 37
(c) The objection to the issuance of a cannabis retail license at 38
the specified location is based on a preexisting local ordinance 39
limiting outlet density in a specific geographic area. For purposes 40
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of this subsection (((11))) (12), a preexisting local ordinance is an 1
ordinance enacted and in effect before the date the applicant submits 2
an application for a cannabis retail license to the board identifying 3
the premises proposed to be licensed. No objection related to the 4
physical location of a proposed premises may be made by a local 5
government under this subsection (((11))) (12) based on a local 6
ordinance enacted after the date the applicant submits an application 7
for a cannabis retail license to the board identifying the premises 8
proposed to be licensed. 9
(((12))) (13) After January 1, 2024, all cannabis licensees are 10
encouraged but are not required to submit a social equity plan to the 11
board. Upon confirmation by the board that a cannabis licensee who is 12
not a social equity applicant, and who does not hold a social equity 13
license issued under RCW 69.50.335, has submitted a social equity 14
plan, the board must within 30 days reimburse such a licensee an 15
amount equal to the cost of the licensee's annual cannabis license 16
renewal fee. The license renewal fee reimbursement authorized under 17
this subsection is subject to the following limitations:18
(a) The board may provide reimbursement one time only to any 19
licensed entity; and 20
(b) Any licensed entity holding more than one cannabis license is 21
eligible for reimbursement of the license renewal fee on only one 22
license. 23
Sec. 2. RCW 69.51A.250 and 2022 c 16 s 129 are each amended to 24
read as follows: 25
(1) Qualifying patients or designated providers may form a 26
cooperative and share responsibility for acquiring and supplying the 27
resources needed to produce and process cannabis only for the medical 28
use of members of the cooperative. No more than four qualifying 29
patients or designated providers may become members of a cooperative 30
under this section and all members must hold valid recognition cards. 31
All members of the cooperative must be at least twenty-one years old. 32
The designated provider of a qualifying patient who is under twenty-33
one years old may be a member of a cooperative on the qualifying 34
patient's behalf. All plants grown in the cooperative must be from an 35
immature plant or clone purchased from a licensed cannabis producer 36
as defined in RCW 69.50.101. Cooperatives may also purchase cannabis 37
seeds from a licensed cannabis producer. 38
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(2) Qualifying patients and designated providers who wish to form 1
a cooperative must register the location with the state liquor and 2
cannabis board and this is the only location where cooperative 3
members may grow or process cannabis. This registration must include 4
the names of all participating members and copies of each 5
participant's recognition card. Only qualifying patients or 6
designated providers registered with the state liquor and cannabis 7
board in association with the location may participate in growing or 8
receive useable cannabis or cannabis-infused products grown at that 9
location. 10
(3) No cooperative may be located in any of the following areas:11
(a) Within one mile of a cannabis retailer; 12
(b) Within the smaller of either: 13
(i) One thousand feet of the perimeter of the grounds of any 14
elementary or secondary school, playground, recreation center or 15
facility, child care center, public park, public transit center, 16
library, or any game arcade that admission to which is not restricted 17
to persons aged twenty-one years or older; or 18
(ii) The area restricted by ordinance, if the cooperative is 19
located in a city, county, or town that has passed an ordinance 20
pursuant to RCW 69.50.331(((8))) (9); or 21
(c) Where prohibited by a city, town, or county zoning provision.22
(4) The state liquor and cannabis board must deny the 23
registration of any cooperative if the location does not comply with 24
the requirements set forth in subsection (3) of this section.25
(5) If a qualifying patient or designated provider no longer 26
participates in growing at the location, he or she must notify the 27
state liquor and cannabis board within fifteen days of the date the 28
qualifying patient or designated provider ceases participation. The 29
state liquor and cannabis board must remove his or her name from 30
connection to the cooperative. Additional qualifying patients or 31
designated providers may not join the cooperative until sixty days 32
have passed since the date on which the last qualifying patient or 33
designated provider notifies the state liquor and cannabis board that 34
he or she no longer participates in that cooperative.35
(6) Qualifying patients or designated providers who participate 36
in a cooperative under this section: 37
(a) May grow up to the total amount of plants for which each 38
participating member is authorized on their recognition cards, up to 39
a maximum of sixty plants. At the location, the qualifying patients 40
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or designated providers may possess the amount of useable cannabis 1
that can be produced with the number of plants permitted under this 2
subsection, but no more than seventy-two ounces; 3
(b) May only participate in one cooperative; 4
(c) May only grow plants in the cooperative and if he or she 5
grows plants in the cooperative may not grow plants elsewhere;6
(d) Must provide assistance in growing plants. A monetary 7
contribution or donation is not to be considered assistance under 8
this section. Participants must provide nonmonetary resources and 9
labor in order to participate; and 10
(e) May not sell, donate, or otherwise provide cannabis, cannabis 11
concentrates, useable cannabis, or cannabis-infused products to a 12
person who is not participating under this section.13
(7) The location of the cooperative must be the domicile of one 14
of the participants. Only one cooperative may be located per property 15
tax parcel. A copy of each participant's recognition card must be 16
kept at the location at all times. 17
(8) The state liquor and cannabis board may adopt rules to 18
implement this section including: 19
(a) Any security requirements necessary to ensure the safety of 20
the cooperative and to reduce the risk of diversion from the 21
cooperative; 22
(b) A seed to sale traceability model that is similar to the seed 23
to sale traceability model used by licensees that will allow the 24
state liquor and cannabis board to track all cannabis grown in a 25
cooperative. 26
(9) The state liquor and cannabis board or law enforcement may 27
inspect a cooperative registered under this section to ensure members 28
are in compliance with this section. The state liquor and cannabis 29
board must adopt rules on reasonable inspection hours and reasons for 30
inspections. 31
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