Agricultural coops/cannabis

AN ACT Relating to authorizing agricultural cooperatives for 1
cannabis producers; and amending RCW 69.50.325 and 24.34.010.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 69.50.325 and 2022 c 16 s 54 are each amended to 4
read as follows: 5
(1) There shall be a cannabis producer's license regulated by the 6
board and subject to annual renewal. The licensee is authorized to 7
produce: (a) Cannabis for sale at wholesale to cannabis processors 8
and other cannabis producers; (b) immature plants or clones and seeds 9
for sale to cooperatives as described under RCW 69.51A.250; and (c) 10
immature plants or clones and seeds for sale to qualifying patients 11
and designated providers as provided under RCW 69.51A.310. The 12
production, possession, delivery, distribution, and sale of cannabis 13
in accordance with the provisions of this chapter and the rules 14
adopted to implement and enforce it, by a validly licensed cannabis 15
producer, shall not be a criminal or civil offense under Washington 16
state law. Every cannabis producer's license shall be issued in the 17
name of the applicant, shall specify the location at which the 18
cannabis producer intends to operate, which must be within the state 19
of Washington, and the holder thereof shall not allow any other 20
person to use the license. The application fee for a cannabis 21
H-1286.1
HOUSE BILL 1941
State of Washington 69th Legislature 2025 Regular Session
By Representatives Morgan, Wylie, Reed, Parshley, Doglio, and Hill
Read first time 02/11/25. Referred to Committee on Agriculture &
Natural Resources.
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producer's license shall be ((two hundred fifty dollars )) $250. The 1
annual fee for issuance and renewal of a cannabis producer's license 2
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 3
separate license shall be required for each location at which a 4
cannabis producer intends to produce cannabis. Licensed cannabis 5
producers may form associations or cooperatives and engage in 6
activities as provided in RCW 24.34.010.7
(2) There shall be a cannabis processor's license to process, 8
package, and label cannabis concentrates, useable cannabis, and 9
cannabis-infused products for sale at wholesale to cannabis 10
processors and cannabis retailers, regulated by the board and subject 11
to annual renewal. The processing, packaging, possession, delivery, 12
distribution, and sale of cannabis, useable cannabis, cannabis-13
infused products, and cannabis concentrates in accordance with the 14
provisions of this chapter and chapter 69.51A RCW and the rules 15
adopted to implement and enforce these chapters, by a validly 16
licensed cannabis processor, shall not be a criminal or civil offense 17
under Washington state law. Every cannabis processor's license shall 18
be issued in the name of the applicant, shall specify the location at 19
which the licensee intends to operate, which must be within the state 20
of Washington, and the holder thereof shall not allow any other 21
person to use the license. The application fee for a cannabis 22
processor's license shall be ((two hundred fifty dollars )) $250. The 23
annual fee for issuance and renewal of a cannabis processor's license 24
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 25
separate license shall be required for each location at which a 26
cannabis processor intends to process cannabis. 27
(3)(a) There shall be a cannabis retailer's license to sell 28
cannabis concentrates, useable cannabis, and cannabis-infused 29
products at retail in retail outlets, regulated by the board and 30
subject to annual renewal. The possession, delivery, distribution, 31
and sale of cannabis concentrates, useable cannabis, and cannabis-32
infused products in accordance with the provisions of this chapter 33
and the rules adopted to implement and enforce it, by a validly 34
licensed cannabis retailer, shall not be a criminal or civil offense 35
under Washington state law. Every cannabis retailer's license shall 36
be issued in the name of the applicant, shall specify the location of 37
the retail outlet the licensee intends to operate, which must be 38
within the state of Washington, and the holder thereof shall not 39
allow any other person to use the license. The application fee for a 40
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cannabis retailer's license shall be ((two hundred fifty dollars )) 1
$250. The annual fee for issuance and renewal of a cannabis 2
retailer's license shall be ((one thousand three hundred eighty-one 3
dollars)) $1,381. A separate license shall be required for each 4
location at which a cannabis retailer intends to sell cannabis 5
concentrates, useable cannabis, and cannabis-infused products.6
(b) An individual retail licensee and all other persons or 7
entities with a financial or other ownership interest in the business 8
operating under the license are limited, in the aggregate, to holding 9
a collective total of not more than five retail cannabis licenses.10
(c)(i) A cannabis retailer's license is subject to forfeiture in 11
accordance with rules adopted by the board pursuant to this section.12
(ii) The board shall adopt rules to establish a license 13
forfeiture process for a licensed cannabis retailer that is not fully 14
operational and open to the public within a specified period from the 15
date of license issuance, as established by the board, subject to the 16
following restrictions: 17
(A) No cannabis retailer's license may be subject to forfeiture 18
within the first nine months of license issuance; and19
(B) The board must require license forfeiture on or before 20
((twenty-four)) 24 calendar months of license issuance if a cannabis 21
retailer is not fully operational and open to the public, unless the 22
board determines that circumstances out of the licensee's control are 23
preventing the licensee from becoming fully operational and that, in 24
the board's discretion, the circumstances warrant extending the 25
forfeiture period beyond ((twenty-four)) 24 calendar months.26
(iii) The board has discretion in adopting rules under this 27
subsection (3)(c). 28
(iv) This subsection (3)(c) applies to cannabis retailer's 29
licenses issued before and after July 23, 2017. However, no license 30
of a cannabis retailer that otherwise meets the conditions for 31
license forfeiture established pursuant to this subsection (3)(c) may 32
be subject to forfeiture within the first nine calendar months of 33
July 23, 2017. 34
(v) The board may not require license forfeiture if the licensee 35
has been incapable of opening a fully operational retail cannabis 36
business due to actions by the city, town, or county with 37
jurisdiction over the licensee that include any of the following:38
(A) The adoption of a ban or moratorium that prohibits the 39
opening of a retail cannabis business; or 40
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(B) The adoption of an ordinance or regulation related to zoning, 1
business licensing, land use, or other regulatory measure that has 2
the effect of preventing a licensee from receiving an occupancy 3
permit from the jurisdiction or which otherwise prevents a licensed 4
cannabis retailer from becoming operational. 5
(d) The board may issue cannabis retailer licenses pursuant to 6
this chapter and RCW 69.50.335. 7
Sec. 2. RCW 24.34.010 and 2013 c 23 s 40 are each amended to 8
read as follows: 9
Persons engaged in the production of agricultural products as 10
farmers, licensed cannabis producers, planters, ranchers, dairy 11
farmers, nut growers, or fruit growers may act together in 12
associations, corporate or otherwise, with or without capital stock, 13
in collectively processing, preparing for market, handling, and 14
marketing in intrastate commerce, such products of persons so 15
engaged. Such associations may have marketing agencies in common; and 16
such associations and their members may make the necessary contracts 17
and agreements to effect such purposes ((: PROVIDED, That such )). For 18
purposes of this section only and only with respect to licensed 19
cannabis producers, cannabis is considered an agricultural product 20
like other covered agricultural products. Such associations ((are)) 21
must be operated for the mutual benefit of the members thereof, as 22
such producers, and conform to one or both of the following 23
requirements: 24
First. That no member of the association is allowed more than one 25
vote because of the amount of stock or membership capital he or she 26
may own therein, or, 27
Second. That the association does not pay dividends on stock or 28
membership capital in excess of eight percent per annum.29
And in any case to the following: 30
Third. That the association shall not deal in the products of 31
nonmembers to an amount greater in value than such as are handled by 32
it for members. 33
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