Cannabis excise tax

AN ACT Relating to the cannabis excise tax; amending RCW 1
69.50.101, 69.50.101, 69.50.535, and 69.50.325; providing an 2
effective date; and providing an expiration date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 69.50.101 and 2024 c 62 s 17 are each amended to 5
read as follows: 6
The definitions in this section apply throughout this chapter 7
unless the context clearly requires otherwise. 8
(1) "Administer" means to apply a controlled substance, whether 9
by injection, inhalation, ingestion, or any other means, directly to 10
the body of a patient or research subject by: 11
(a) a practitioner authorized to prescribe (or, by the 12
practitioner's authorized agent); or 13
(b) the patient or research subject at the direction and in the 14
presence of the practitioner. 15
(2) "Agent" means an authorized person who acts on behalf of or 16
at the direction of a manufacturer, distributor, or dispenser. It 17
does not include a common or contract carrier, public 18
warehouseperson, or employee of the carrier or warehouseperson.19
(3) "Board" means the Washington state liquor and cannabis board.20
H-2818.1
HOUSE BILL 2433
State of Washington 69th Legislature 2026 Regular Session
By Representatives Reeves and Parshley
Read first time 01/13/26. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 2433
(4) "Cannabis" means all parts of the plant Cannabis, whether 1
growing or not, with a THC concentration greater than 0.3 percent on 2
a dry weight basis during the growing cycle through harvest and 3
usable cannabis. "Cannabis" does not include hemp or industrial hemp 4
as defined in RCW 15.140.020, or seeds used for licensed hemp 5
production under chapter 15.140 RCW. 6
(5) "Cannabis concentrates" means products consisting wholly or 7
in part of the resin extracted from any part of the plant Cannabis 8
and having a THC concentration greater than ((ten)) 10 percent.9
(6) "Cannabis edibles in liquid form" means cannabis-infused 10
products that are intended for oral human consumption and are in 11
liquid form.12
(7) "Cannabis edibles in solid form" means cannabis-infused 13
products that are intended for oral human consumption and are in 14
solid form.15
(8) "Cannabis flower" means the flowering reproductive structures 16
of the plant Cannabis that have been harvested, dried, and cured, 17
comprised of calyx, pistils, and trichomes.18
(9) "Cannabis processor" means a person licensed by the board to 19
process cannabis into cannabis concentrates, useable cannabis, and 20
cannabis-infused products, package and label cannabis concentrates, 21
useable cannabis, and cannabis-infused products for sale in retail 22
outlets, and sell cannabis concentrates, useable cannabis, and 23
cannabis-infused products at wholesale to cannabis retailers.24
(((7))) (10) "Cannabis producer" means a person licensed by the 25
board to produce and sell cannabis at wholesale to cannabis 26
processors and other cannabis producers. 27
(((8))) (11)(a) "Cannabis products" means useable cannabis, 28
cannabis concentrates, and cannabis-infused products as defined in 29
this section, including any product intended to be consumed or 30
absorbed inside the body by any means including inhalation, 31
ingestion, or insertion, with any detectable amount of THC.32
(b) "Cannabis products" also means any product containing only 33
THC content. 34
(c) "Cannabis products" does not include cannabis health and 35
beauty aids as defined in RCW 69.50.575 or products approved by the 36
United States food and drug administration. 37
(((9))) (12) "Cannabis researcher" means a person licensed by the 38
board to produce, process, and possess cannabis for the purposes of 39
conducting research on cannabis and cannabis-derived drug products.40
p. 2 HB 2433
(((10))) (13) "Cannabis retailer" means a person licensed by the 1
board to sell cannabis concentrates, useable cannabis, and cannabis-2
infused products in a retail outlet. 3
(((11))) (14) "Cannabis topical" means any product containing 4
parts of the cannabis plant that is intended for application to the 5
body's surface including, but not limited to, lotions, ointments, 6
salves, gels, or creams that are not intended for ingestion, 7
inhalation, or insertion by humans or animals.8
(15) "Cannabis trim" means the leaves and other nonflowering 9
parts of the plant Cannabis separated from the cannabis flower during 10
harvest or postharvest processing that have been harvested, dried, 11
and cured, and transformed into a cannabis product that is not 12
cannabis flower, not including any calyx or pistils.13
(16) "Cannabis-infused products" means products that contain 14
cannabis or cannabis extracts, are intended for human use, are 15
derived from cannabis as defined in subsection (4) of this section, 16
and have a THC concentration no greater than ((ten)) 10 percent. The 17
term "cannabis-infused products" does not include either useable 18
cannabis or cannabis concentrates. 19
(((12))) (17) "CBD concentration" has the meaning provided in RCW 20
69.51A.010. 21
(((13))) (18) "CBD product" means any product containing or 22
consisting of cannabidiol. 23
(((14))) (19) "Commission" means the pharmacy quality assurance 24
commission. 25
(((15))) (20) "Controlled substance" means a drug, substance, or 26
immediate precursor included in Schedules I through V as set forth in 27
federal or state laws, or federal or commission rules, but does not 28
include hemp or industrial hemp as defined in RCW 15.140.020.29
(((16))) (21)(a) "Controlled substance analog" means a substance 30
the chemical structure of which is substantially similar to the 31
chemical structure of a controlled substance in Schedule I or II and:32
(i) that has a stimulant, depressant, or hallucinogenic effect on 33
the central nervous system substantially similar to the stimulant, 34
depressant, or hallucinogenic effect on the central nervous system of 35
a controlled substance included in Schedule I or II; or36
(ii) with respect to a particular individual, that the individual 37
represents or intends to have a stimulant, depressant, or 38
hallucinogenic effect on the central nervous system substantially 39
similar to the stimulant, depressant, or hallucinogenic effect on the 40
p. 3 HB 2433
central nervous system of a controlled substance included in Schedule 1
I or II. 2
(b) The term does not include: 3
(i) a controlled substance; 4
(ii) a substance for which there is an approved new drug 5
application; 6
(iii) a substance with respect to which an exemption is in effect 7
for investigational use by a particular person under Section 505 of 8
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 9
chapter 69.77 RCW to the extent conduct with respect to the substance 10
is pursuant to the exemption; or 11
(iv) any substance to the extent not intended for human 12
consumption before an exemption takes effect with respect to the 13
substance. 14
(((17))) (22) "Deliver" or "delivery" means the actual or 15
constructive transfer from one person to another of a substance, 16
whether or not there is an agency relationship. 17
(((18))) (23) "Department" means the department of health.18
(((19))) (24) "Designated provider" has the meaning provided in 19
RCW 69.51A.010. 20
(((20))) (25) "Dispense" means the interpretation of a 21
prescription or order for a controlled substance and, pursuant to 22
that prescription or order, the proper selection, measuring, 23
compounding, labeling, or packaging necessary to prepare that 24
prescription or order for delivery. 25
(((21))) (26) "Dispenser" means a practitioner who dispenses.26
(((22))) (27) "Distribute" means to deliver other than by 27
administering or dispensing a controlled substance.28
(((23))) (28) "Distributor" means a person who distributes.29
(((24))) (29) "Drug" means (a) a controlled substance recognized 30
as a drug in the official United States pharmacopoeia/national 31
formulary or the official homeopathic pharmacopoeia of the United 32
States, or any supplement to them; (b) controlled substances intended 33
for use in the diagnosis, cure, mitigation, treatment, or prevention 34
of disease in individuals or animals; (c) controlled substances 35
(other than food) intended to affect the structure or any function of 36
the body of individuals or animals; and (d) controlled substances 37
intended for use as a component of any article specified in (a), (b), 38
or (c) of this subsection. The term does not include devices or their 39
components, parts, or accessories. 40
p. 4 HB 2433
(((25))) (30) "Drug enforcement administration" means the drug 1
enforcement administration in the United States Department of 2
Justice, or its successor agency. 3
(((26))) (31) "Electronic communication of prescription 4
information" means the transmission of a prescription or refill 5
authorization for a drug of a practitioner using computer systems. 6
The term does not include a prescription or refill authorization 7
verbally transmitted by telephone nor a facsimile manually signed by 8
the practitioner. 9
(((27))) (32) "Immature plant or clone" means a plant or clone 10
that has no flowers, is less than ((twelve)) 12 inches in height, and 11
is less than ((twelve)) 12 inches in diameter. 12
(((28))) (33) "Immediate precursor" means a substance:13
(a) that the commission has found to be and by rule designates as 14
being the principal compound commonly used, or produced primarily for 15
use, in the manufacture of a controlled substance;16
(b) that is an immediate chemical intermediary used or likely to 17
be used in the manufacture of a controlled substance; and18
(c) the control of which is necessary to prevent, curtail, or 19
limit the manufacture of the controlled substance.20
(((29))) (34) "Isomer" means an optical isomer, but in subsection 21
(((33))) (38)(e) of this section, RCW 69.50.204(1) (l) and (hh), and 22
69.50.206(2)(d), the term includes any geometrical isomer; in RCW 23
69.50.204(1) (h) and (pp)((,)) and 69.50.210(3)(([,])), the term 24
includes any positional isomer; and in RCW 69.50.204(1)(ii), 25
69.50.204(3), and 69.50.208(1)(([,])), the term includes any 26
positional or geometric isomer. 27
(((30))) (35) "Lot" means a definite quantity of cannabis, 28
cannabis concentrates, useable cannabis, or cannabis-infused product 29
identified by a lot number, every portion or package of which is 30
uniform within recognized tolerances for the factors that appear in 31
the labeling. 32
(((31))) (36) "Lot number" must identify the licensee by business 33
or trade name and Washington state unified business identifier 34
number, and the date of harvest or processing for each lot of 35
cannabis, cannabis concentrates, useable cannabis, or cannabis-36
infused product. 37
(((32))) (37) "Manufacture" means the production, preparation, 38
propagation, compounding, conversion, or processing of a controlled 39
substance, either directly or indirectly or by extraction from 40
p. 5 HB 2433
substances of natural origin, or independently by means of chemical 1
synthesis, or by a combination of extraction and chemical synthesis, 2
and includes any packaging or repackaging of the substance or 3
labeling or relabeling of its container. The term does not include 4
the preparation, compounding, packaging, repackaging, labeling, or 5
relabeling of a controlled substance: 6
(a) by a practitioner as an incident to the practitioner's 7
administering or dispensing of a controlled substance in the course 8
of the practitioner's professional practice; or 9
(b) by a practitioner, or by the practitioner's authorized agent 10
under the practitioner's supervision, for the purpose of, or as an 11
incident to, research, teaching, or chemical analysis and not for 12
sale. 13
(((33))) (38) "Narcotic drug" means any of the following, whether 14
produced directly or indirectly by extraction from substances of 15
vegetable origin, or independently by means of chemical synthesis, or 16
by a combination of extraction and chemical synthesis:17
(a) Opium, opium derivative, and any derivative of opium or opium 18
derivative, including their salts, isomers, and salts of isomers, 19
whenever the existence of the salts, isomers, and salts of isomers is 20
possible within the specific chemical designation. The term does not 21
include the isoquinoline alkaloids of opium. 22
(b) Synthetic opiate and any derivative of synthetic opiate, 23
including their isomers, esters, ethers, salts, and salts of isomers, 24
esters, and ethers, whenever the existence of the isomers, esters, 25
ethers, and salts is possible within the specific chemical 26
designation. 27
(c) Poppy straw and concentrate of poppy straw.28
(d) Coca leaves, except coca leaves and extracts of coca leaves 29
from which cocaine, ecgonine, and derivatives or ecgonine or their 30
salts have been removed. 31
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.32
(f) Cocaine base. 33
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 34
thereof. 35
(h) Any compound, mixture, or preparation containing any quantity 36
of any substance referred to in (a) through (g) of this subsection.37
(((34))) (39) "Opiate" means any substance having an addiction-38
forming or addiction-sustaining liability similar to morphine or 39
being capable of conversion into a drug having addiction-forming or 40
p. 6 HB 2433
addiction-sustaining liability. The term includes opium, substances 1
derived from opium (opium derivatives), and synthetic opiates. The 2
term does not include, unless specifically designated as controlled 3
under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-4
methylmorphinan and its salts (dextromethorphan). The term includes 5
the racemic and levorotatory forms of dextromethorphan.6
(((35))) (40) "Opium poppy" means the plant of the species 7
Papaver somniferum L., except its seeds. 8
(((36))) (41) "Package" means a container that has a single unit 9
or group of units. 10
(((37))) (42) "Person" means individual, corporation, business 11
trust, estate, trust, partnership, association, joint venture, 12
government, governmental subdivision or agency, or any other legal or 13
commercial entity. 14
(((38))) (43) "Plant" has the meaning provided in RCW 69.51A.010.15
(((39))) (44) "Poppy straw" means all parts, except the seeds, of 16
the opium poppy, after mowing. 17
(((40))) (45) "Practitioner" means: 18
(a) A physician under chapter 18.71 RCW; a physician assistant 19
under chapter 18.71A RCW; an osteopathic physician and surgeon under 20
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 21
who is certified by the optometry board under RCW 18.53.010 subject 22
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 23
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 24
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 25
registered nurse practitioner, or licensed practical nurse under 26
chapter 18.79 RCW; a naturopathic physician under chapter 18.36A RCW 27
who is licensed under RCW 18.36A.030 subject to any limitations in 28
RCW 18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 29
investigator under this chapter, licensed, registered or otherwise 30
permitted insofar as is consistent with those licensing laws to 31
distribute, dispense, conduct research with respect to or administer 32
a controlled substance in the course of their professional practice 33
or research in this state. 34
(b) A pharmacy, hospital or other institution licensed, 35
registered, or otherwise permitted to distribute, dispense, conduct 36
research with respect to or to administer a controlled substance in 37
the course of professional practice or research in this state.38
(c) A physician licensed to practice medicine and surgery, a 39
physician licensed to practice osteopathic medicine and surgery, a 40
p. 7 HB 2433
dentist licensed to practice dentistry, a podiatric physician and 1
surgeon licensed to practice podiatric medicine and surgery, a 2
licensed physician assistant or a licensed osteopathic physician 3
assistant specifically approved to prescribe controlled substances by 4
his or her state's medical commission or equivalent and his or her 5
participating physician as defined in RCW 18.71A.010, an advanced 6
registered nurse practitioner licensed to prescribe controlled 7
substances, or a veterinarian licensed to practice veterinary 8
medicine in any state of the United States. 9
(((41))) (46) "Preroll" means a consumable or smokable cannabis 10
product that consists of:11
(a) a wrap or paper; and12
(b) dried cannabis flower, buds, or other plant material.13
(47) "Prescription" means an order for controlled substances 14
issued by a practitioner duly authorized by law or rule in the state 15
of Washington to prescribe controlled substances within the scope of 16
his or her professional practice for a legitimate medical purpose.17
(((42))) (48) "Production" includes the manufacturing, planting, 18
cultivating, growing, or harvesting of a controlled substance.19
(((43))) (49) "Qualifying patient" has the meaning provided in 20
RCW 69.51A.010. 21
(((44))) (50) "Recognition card" has the meaning provided in RCW 22
69.51A.010. 23
(((45))) (51) "Retail outlet" means a location licensed by the 24
board for the retail sale of cannabis concentrates, useable cannabis, 25
and cannabis-infused products. 26
(((46))) (52) "Secretary" means the secretary of health or the 27
secretary's designee. 28
(((47))) (53) "Social equity plan" means a plan that addresses at 29
least some of the elements outlined in this subsection (((47))), 30
along with any additional plan components or requirements approved by 31
the board following consultation with the task force created in RCW 32
69.50.336. The plan may include: 33
(a) A statement that indicates how the cannabis licensee will 34
work to promote social equity goals in their community;35
(b) A description of how the cannabis licensee will meet social 36
equity goals as defined in RCW 69.50.335; 37
(c) The composition of the workforce the licensee has employed or 38
intends to hire; and 39
p. 8 HB 2433
(d) Business plans involving partnerships or assistance to 1
organizations or residents with connections to populations with a 2
history of high rates of enforcement of cannabis prohibition.3
(((48))) (54) "State," unless the context otherwise requires, 4
means a state of the United States, the District of Columbia, the 5
Commonwealth of Puerto Rico, or a territory or insular possession 6
subject to the jurisdiction of the United States. 7
(((49))) (55) "THC concentration" means percent of 8
tetrahydrocannabinol content of any part of the plant Cannabis, or 9
per volume or weight of cannabis product, or the combined percent of 10
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of 11
the plant Cannabis regardless of moisture content.12
(((50))) (56) "Ultimate user" means an individual who lawfully 13
possesses a controlled substance for the individual's own use or for 14
the use of a member of the individual's household or for 15
administering to an animal owned by the individual or by a member of 16
the individual's household. 17
(((51))) (57) "Unit" means an individual consumable item within a 18
package of one or more consumable items in solid, liquid, gas, or any 19
form intended for human consumption. 20
(((52))) (58) "Useable cannabis" means dried cannabis flowers. 21
The term "useable cannabis" does not include either cannabis-infused 22
products or cannabis concentrates. 23
(((53))) (59) "Youth access" means the level of interest persons 24
under the age of ((twenty-one)) 21 may have in a vapor product, as 25
well as the degree to which the product is available or appealing to 26
such persons, and the likelihood of initiation, use, or addiction by 27
adolescents and young adults. 28
Sec. 2. RCW 69.50.101 and 2025 c 58 s 5126 are each amended to 29
read as follows: 30
The definitions in this section apply throughout this chapter 31
unless the context clearly requires otherwise. 32
(1) "Administer" means to apply a controlled substance, whether 33
by injection, inhalation, ingestion, or any other means, directly to 34
the body of a patient or research subject by: 35
(a) a practitioner authorized to prescribe (or, by the 36
practitioner's authorized agent); or 37
(b) the patient or research subject at the direction and in the 38
presence of the practitioner. 39
p. 9 HB 2433
(2) "Agent" means an authorized person who acts on behalf of or 1
at the direction of a manufacturer, distributor, or dispenser. It 2
does not include a common or contract carrier, public 3
warehouseperson, or employee of the carrier or warehouseperson.4
(3) "Board" means the Washington state liquor and cannabis board.5
(4) "Cannabis" means all parts of the plant Cannabis, whether 6
growing or not, with a THC concentration greater than 0.3 percent on 7
a dry weight basis during the growing cycle through harvest and 8
usable cannabis. "Cannabis" does not include hemp or industrial hemp 9
as defined in RCW 15.140.020, or seeds used for licensed hemp 10
production under chapter 15.140 RCW. 11
(5) "Cannabis concentrates" means products consisting wholly or 12
in part of the resin extracted from any part of the plant Cannabis 13
and having a THC concentration greater than ((ten)) 10 percent.14
(6) "Cannabis edibles in liquid form" means cannabis-infused 15
products that are intended for oral human consumption and are in 16
liquid form.17
(7) "Cannabis edibles in solid form" means cannabis-infused 18
products that are intended for oral human consumption and are in 19
solid form.20
(8) "Cannabis flower" means the flowering reproductive structures 21
of the plant Cannabis that have been harvested, dried, and cured, 22
comprised of calyx, pistils, and trichomes.23
(9) "Cannabis processor" means a person licensed by the board to 24
process cannabis into cannabis concentrates, useable cannabis, and 25
cannabis-infused products, package and label cannabis concentrates, 26
useable cannabis, and cannabis-infused products for sale in retail 27
outlets, and sell cannabis concentrates, useable cannabis, and 28
cannabis-infused products at wholesale to cannabis retailers.29
(((7))) (10) "Cannabis producer" means a person licensed by the 30
board to produce and sell cannabis at wholesale to cannabis 31
processors and other cannabis producers. 32
(((8))) (11)(a) "Cannabis products" means useable cannabis, 33
cannabis concentrates, and cannabis-infused products as defined in 34
this section, including any product intended to be consumed or 35
absorbed inside the body by any means including inhalation, 36
ingestion, or insertion, with any detectable amount of THC.37
(b) "Cannabis products" also means any product containing only 38
THC content. 39
p. 10 HB 2433
(c) "Cannabis products" does not include cannabis health and 1
beauty aids as defined in RCW 69.50.575 or products approved by the 2
United States food and drug administration. 3
(((9))) (12) "Cannabis researcher" means a person licensed by the 4
board to produce, process, and possess cannabis for the purposes of 5
conducting research on cannabis and cannabis-derived drug products.6
(((10))) (13) "Cannabis retailer" means a person licensed by the 7
board to sell cannabis concentrates, useable cannabis, and cannabis-8
infused products in a retail outlet. 9
(((11))) (14) "Cannabis topical" means any product containing 10
parts of the cannabis plant that is intended for application to the 11
body's surface including, but not limited to, lotions, ointments, 12
salves, gels, or creams that are not intended for ingestion, 13
inhalation, or insertion by humans or animals.14
(15) "Cannabis trim" means the leaves and other nonflowering 15
parts of the plant Cannabis separated from the cannabis flower during 16
harvest or postharvest processing that have been harvested, dried, 17
and cured, and transformed into a cannabis product that is not 18
cannabis flower, not including any calyx or pistils.19
(16) "Cannabis-infused products" means products that contain 20
cannabis or cannabis extracts, are intended for human use, are 21
derived from cannabis as defined in subsection (4) of this section, 22
and have a THC concentration no greater than ((ten)) 10 percent. The 23
term "cannabis-infused products" does not include either useable 24
cannabis or cannabis concentrates. 25
(((12))) (17) "CBD concentration" has the meaning provided in RCW 26
69.51A.010. 27
(((13))) (18) "CBD product" means any product containing or 28
consisting of cannabidiol. 29
(((14))) (19) "Commission" means the pharmacy quality assurance 30
commission. 31
(((15))) (20) "Controlled substance" means a drug, substance, or 32
immediate precursor included in Schedules I through V as set forth in 33
federal or state laws, or federal or commission rules, but does not 34
include hemp or industrial hemp as defined in RCW 15.140.020.35
(((16))) (21)(a) "Controlled substance analog" means a substance 36
the chemical structure of which is substantially similar to the 37
chemical structure of a controlled substance in Schedule I or II and:38
(i) that has a stimulant, depressant, or hallucinogenic effect on 39
the central nervous system substantially similar to the stimulant, 40
p. 11 HB 2433
depressant, or hallucinogenic effect on the central nervous system of 1
a controlled substance included in Schedule I or II; or2
(ii) with respect to a particular individual, that the individual 3
represents or intends to have a stimulant, depressant, or 4
hallucinogenic effect on the central nervous system substantially 5
similar to the stimulant, depressant, or hallucinogenic effect on the 6
central nervous system of a controlled substance included in Schedule 7
I or II. 8
(b) The term does not include: 9
(i) a controlled substance; 10
(ii) a substance for which there is an approved new drug 11
application; 12
(iii) a substance with respect to which an exemption is in effect 13
for investigational use by a particular person under Section 505 of 14
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 15
chapter 69.77 RCW to the extent conduct with respect to the substance 16
is pursuant to the exemption; or 17
(iv) any substance to the extent not intended for human 18
consumption before an exemption takes effect with respect to the 19
substance. 20
(((17))) (22) "Deliver" or "delivery" means the actual or 21
constructive transfer from one person to another of a substance, 22
whether or not there is an agency relationship. 23
(((18))) (23) "Department" means the department of health.24
(((19))) (24) "Designated provider" has the meaning provided in 25
RCW 69.51A.010. 26
(((20))) (25) "Dispense" means the interpretation of a 27
prescription or order for a controlled substance and, pursuant to 28
that prescription or order, the proper selection, measuring, 29
compounding, labeling, or packaging necessary to prepare that 30
prescription or order for delivery. 31
(((21))) (26) "Dispenser" means a practitioner who dispenses.32
(((22))) (27) "Distribute" means to deliver other than by 33
administering or dispensing a controlled substance.34
(((23))) (28) "Distributor" means a person who distributes.35
(((24))) (29) "Drug" means (a) a controlled substance recognized 36
as a drug in the official United States pharmacopoeia/national 37
formulary or the official homeopathic pharmacopoeia of the United 38
States, or any supplement to them; (b) controlled substances intended 39
for use in the diagnosis, cure, mitigation, treatment, or prevention 40
p. 12 HB 2433
of disease in individuals or animals; (c) controlled substances 1
(other than food) intended to affect the structure or any function of 2
the body of individuals or animals; and (d) controlled substances 3
intended for use as a component of any article specified in (a), (b), 4
or (c) of this subsection. The term does not include devices or their 5
components, parts, or accessories. 6
(((25))) (30) "Drug enforcement administration" means the drug 7
enforcement administration in the United States Department of 8
Justice, or its successor agency. 9
(((26))) (31) "Electronic communication of prescription 10
information" means the transmission of a prescription or refill 11
authorization for a drug of a practitioner using computer systems. 12
The term does not include a prescription or refill authorization 13
verbally transmitted by telephone nor a facsimile manually signed by 14
the practitioner. 15
(((27))) (32) "Immature plant or clone" means a plant or clone 16
that has no flowers, is less than ((twelve)) 12 inches in height, and 17
is less than ((twelve)) 12 inches in diameter. 18
(((28))) (33) "Immediate precursor" means a substance:19
(a) that the commission has found to be and by rule designates as 20
being the principal compound commonly used, or produced primarily for 21
use, in the manufacture of a controlled substance;22
(b) that is an immediate chemical intermediary used or likely to 23
be used in the manufacture of a controlled substance; and24
(c) the control of which is necessary to prevent, curtail, or 25
limit the manufacture of the controlled substance.26
(((29))) (34) "Isomer" means an optical isomer, but in subsection 27
(((33))) (38)(e) of this section, RCW 69.50.204(1) (l) and (hh), and 28
69.50.206(2)(d), the term includes any geometrical isomer; in RCW 29
69.50.204(1) (h) and (pp) and 69.50.210(3), the term includes any 30
positional isomer; and in RCW 69.50.204(1)(ii), 69.50.204(3), and 31
69.50.208(1), the term includes any positional or geometric isomer.32
(((30))) (35) "Lot" means a definite quantity of cannabis, 33
cannabis concentrates, useable cannabis, or cannabis-infused product 34
identified by a lot number, every portion or package of which is 35
uniform within recognized tolerances for the factors that appear in 36
the labeling. 37
(((31))) (36) "Lot number" must identify the licensee by business 38
or trade name and Washington state unified business identifier 39
number, and the date of harvest or processing for each lot of 40
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cannabis, cannabis concentrates, useable cannabis, or cannabis-1
infused product. 2
(((32))) (37) "Manufacture" means the production, preparation, 3
propagation, compounding, conversion, or processing of a controlled 4
substance, either directly or indirectly or by extraction from 5
substances of natural origin, or independently by means of chemical 6
synthesis, or by a combination of extraction and chemical synthesis, 7
and includes any packaging or repackaging of the substance or 8
labeling or relabeling of its container. The term does not include 9
the preparation, compounding, packaging, repackaging, labeling, or 10
relabeling of a controlled substance: 11
(a) by a practitioner as an incident to the practitioner's 12
administering or dispensing of a controlled substance in the course 13
of the practitioner's professional practice; or 14
(b) by a practitioner, or by the practitioner's authorized agent 15
under the practitioner's supervision, for the purpose of, or as an 16
incident to, research, teaching, or chemical analysis and not for 17
sale. 18
(((33))) (38) "Narcotic drug" means any of the following, whether 19
produced directly or indirectly by extraction from substances of 20
vegetable origin, or independently by means of chemical synthesis, or 21
by a combination of extraction and chemical synthesis:22
(a) Opium, opium derivative, and any derivative of opium or opium 23
derivative, including their salts, isomers, and salts of isomers, 24
whenever the existence of the salts, isomers, and salts of isomers is 25
possible within the specific chemical designation. The term does not 26
include the isoquinoline alkaloids of opium. 27
(b) Synthetic opiate and any derivative of synthetic opiate, 28
including their isomers, esters, ethers, salts, and salts of isomers, 29
esters, and ethers, whenever the existence of the isomers, esters, 30
ethers, and salts is possible within the specific chemical 31
designation. 32
(c) Poppy straw and concentrate of poppy straw.33
(d) Coca leaves, except coca leaves and extracts of coca leaves 34
from which cocaine, ecgonine, and derivatives or ecgonine or their 35
salts have been removed. 36
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.37
(f) Cocaine base. 38
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 39
thereof. 40
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(h) Any compound, mixture, or preparation containing any quantity 1
of any substance referred to in (a) through (g) of this subsection.2
(((34))) (39) "Opiate" means any substance having an addiction-3
forming or addiction-sustaining liability similar to morphine or 4
being capable of conversion into a drug having addiction-forming or 5
addiction-sustaining liability. The term includes opium, substances 6
derived from opium (opium derivatives), and synthetic opiates. The 7
term does not include, unless specifically designated as controlled 8
under RCW 69.50.201, the dextrorotatory isomer of 3-methoxy-n-9
methylmorphinan and its salts (dextromethorphan). The term includes 10
the racemic and levorotatory forms of dextromethorphan.11
(((35))) (40) "Opium poppy" means the plant of the species 12
Papaver somniferum L., except its seeds. 13
(((36))) (41) "Package" means a container that has a single unit 14
or group of units. 15
(((37))) (42) "Person" means individual, corporation, business 16
trust, estate, trust, partnership, association, joint venture, 17
government, governmental subdivision or agency, or any other legal or 18
commercial entity. 19
(((38))) (43) "Plant" has the meaning provided in RCW 69.51A.010.20
(((39))) (44) "Poppy straw" means all parts, except the seeds, of 21
the opium poppy, after mowing. 22
(((40))) (45) "Practitioner" means: 23
(a) A physician under chapter 18.71 RCW; a physician assistant 24
under chapter 18.71A RCW; an osteopathic physician and surgeon under 25
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 26
who is certified by the optometry board under RCW 18.53.010 subject 27
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 28
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 29
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 30
practice registered nurse, or licensed practical nurse under chapter 31
18.79 RCW; a naturopathic physician under chapter 18.36A RCW who is 32
licensed under RCW 18.36A.030 subject to any limitations in RCW 33
18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 34
investigator under this chapter, licensed, registered or otherwise 35
permitted insofar as is consistent with those licensing laws to 36
distribute, dispense, conduct research with respect to or administer 37
a controlled substance in the course of their professional practice 38
or research in this state. 39
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(b) A pharmacy, hospital or other institution licensed, 1
registered, or otherwise permitted to distribute, dispense, conduct 2
research with respect to or to administer a controlled substance in 3
the course of professional practice or research in this state.4
(c) A physician licensed to practice medicine and surgery, a 5
physician licensed to practice osteopathic medicine and surgery, a 6
dentist licensed to practice dentistry, a podiatric physician and 7
surgeon licensed to practice podiatric medicine and surgery, a 8
licensed physician assistant or a licensed osteopathic physician 9
assistant specifically approved to prescribe controlled substances by 10
his or her state's medical commission or equivalent and his or her 11
participating physician as defined in RCW 18.71A.010, an advanced 12
practice registered nurse licensed to prescribe controlled 13
substances, or a veterinarian licensed to practice veterinary 14
medicine in any state of the United States. 15
(((41))) (46) "Preroll" means a consumable or smokable cannabis 16
product that consists of:17
(a) a wrap or paper; and18
(b) dried cannabis flower, buds, or other plant material.19
(47) "Prescription" means an order for controlled substances 20
issued by a practitioner duly authorized by law or rule in the state 21
of Washington to prescribe controlled substances within the scope of 22
his or her professional practice for a legitimate medical purpose.23
(((42))) (48) "Production" includes the manufacturing, planting, 24
cultivating, growing, or harvesting of a controlled substance.25
(((43))) (49) "Qualifying patient" has the meaning provided in 26
RCW 69.51A.010. 27
(((44))) (50) "Recognition card" has the meaning provided in RCW 28
69.51A.010. 29
(((45))) (51) "Retail outlet" means a location licensed by the 30
board for the retail sale of cannabis concentrates, useable cannabis, 31
and cannabis-infused products. 32
(((46))) (52) "Secretary" means the secretary of health or the 33
secretary's designee. 34
(((47))) (53) "Social equity plan" means a plan that addresses at 35
least some of the elements outlined in this subsection (((47))), 36
along with any additional plan components or requirements approved by 37
the board following consultation with the task force created in RCW 38
69.50.336. The plan may include: 39
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(a) A statement that indicates how the cannabis licensee will 1
work to promote social equity goals in their community;2
(b) A description of how the cannabis licensee will meet social 3
equity goals as defined in RCW 69.50.335; 4
(c) The composition of the workforce the licensee has employed or 5
intends to hire; and 6
(d) Business plans involving partnerships or assistance to 7
organizations or residents with connections to populations with a 8
history of high rates of enforcement of cannabis prohibition.9
(((48))) (54) "State," unless the context otherwise requires, 10
means a state of the United States, the District of Columbia, the 11
Commonwealth of Puerto Rico, or a territory or insular possession 12
subject to the jurisdiction of the United States. 13
(((49))) (55) "THC concentration" means percent of 14
tetrahydrocannabinol content of any part of the plant Cannabis, or 15
per volume or weight of cannabis product, or the combined percent of 16
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of 17
the plant Cannabis regardless of moisture content.18
(((50))) (56) "Ultimate user" means an individual who lawfully 19
possesses a controlled substance for the individual's own use or for 20
the use of a member of the individual's household or for 21
administering to an animal owned by the individual or by a member of 22
the individual's household. 23
(((51))) (57) "Unit" means an individual consumable item within a 24
package of one or more consumable items in solid, liquid, gas, or any 25
form intended for human consumption. 26
(((52))) (58) "Useable cannabis" means dried cannabis flowers. 27
The term "useable cannabis" does not include either cannabis-infused 28
products or cannabis concentrates. 29
(((53))) (59) "Youth access" means the level of interest persons 30
under the age of ((twenty-one)) 21 may have in a vapor product, as 31
well as the degree to which the product is available or appealing to 32
such persons, and the likelihood of initiation, use, or addiction by 33
adolescents and young adults. 34
Sec. 3. RCW 69.50.535 and 2024 c 79 s 1 are each amended to read 35
as follows: 36
(1)(a) There is levied and collected a cannabis excise tax 37
((equal to thirty-seven percent of the selling price on each retail 38
p. 17 HB 2433
sale in this state of cannabis concentrates, useable cannabis, and 1
cannabis-infused products.)) on each retail sale as follows:2
(i) For usable cannabis and prerolls:3
(A) For products weighing less than seven grams, $2.75 per gram;4
(B) For products weighing between seven grams and 13.9 grams, 5
$2.50 per gram;6
(C) For products weighing between 14 grams and 27.9 grams, $2.25 7
per gram; and8
(D) For products weighing 28 grams, $1.75 per gram;9
(ii) For cannabis trim:10
(A) For products weighing less than seven grams, $1 per gram;11
(B) For products weighing between seven grams and 27.9 grams, 12
$0.75 per gram; and13
(C) For products weighing 28 grams, $0.50 per gram;14
(iii) For cannabis concentrates, $0.01187 per mg of THC;15
(iv) For cannabis edibles in solid form and topicals, $0.07427 16
per mg of THC; and17
(v) For cannabis edibles in liquid form, $0.04051 per mg of THC.18
(b) This tax is separate and in addition to general state and 19
local sales and use taxes that apply to retail sales of tangible 20
personal property, and is not part of the total retail price to which 21
general state and local sales and use taxes apply. The tax must be 22
separately itemized from the state and local retail sales tax on the 23
sales receipt provided to the buyer. 24
(((b))) (c) The tax levied in this section must be reflected in 25
the price list or quoted shelf price in the licensed cannabis retail 26
store and in any advertising that includes prices for all useable 27
cannabis, cannabis concentrates, or cannabis-infused products.28
(2)(a) Until June 30, 2029, the tax levied by subsection (1) of 29
this section does not apply to sales by a cannabis retailer with a 30
medical cannabis endorsement to qualifying patients or designated 31
providers who have been issued a recognition card, of cannabis 32
concentrates, useable cannabis, or cannabis-infused products, 33
identified by the department as a compliant cannabis product in 34
chapter 246-70 WAC and tested to the standards in WAC 246-70-040.35
(b) Each seller making exempt sales under this subsection (2) 36
must maintain information establishing eligibility for the exemption 37
in the form and manner required by the board. 38
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(c) The board must provide a separate tax reporting line on the 1
excise tax form for exemption amounts claimed under this subsection 2
(2). 3
(3) All revenues collected from the cannabis excise tax imposed 4
under this section must be deposited each day in the dedicated 5
cannabis account. 6
(4) The tax imposed in this section must be paid by the buyer to 7
the seller. Each seller must collect from the buyer the full amount 8
of the tax payable on each taxable sale. The tax collected as 9
required by this section is deemed to be held in trust by the seller 10
until paid to the board. If any seller fails to collect the tax 11
imposed in this section or, having collected the tax, fails to pay it 12
as prescribed by the board, whether such failure is the result of the 13
seller's own acts or the result of acts or conditions beyond the 14
seller's control, the seller is, nevertheless, personally liable to 15
the state for the amount of the tax. 16
(5) The definitions in this subsection apply throughout this 17
section unless the context clearly requires otherwise.18
(a) "Retail sale" has the same meaning as in RCW 82.08.010.19
(b) "Selling price" has the same meaning as in RCW 82.08.010, 20
except that when product is sold under circumstances where the total 21
amount of consideration paid for the product is not indicative of its 22
true value, "selling price" means the true value of the product sold.23
(c) "Product" means cannabis, cannabis concentrates, useable 24
cannabis, and cannabis-infused products. 25
(d) "True value" means market value based on sales at comparable 26
locations in this state of the same or similar product of like 27
quality and character sold under comparable conditions of sale to 28
comparable purchasers. However, in the absence of such sales of the 29
same or similar product, true value means the value of the product 30
sold as determined by all of the seller's direct and indirect costs 31
attributable to the product. 32
(6)(((a))) The board must regularly review the tax level 33
established under this section and make recommendations, in 34
consultation with the department of revenue, to the legislature as 35
appropriate regarding adjustments that would further the goal of 36
discouraging use while undercutting illegal market prices.37
(((b) The board must report, in compliance with RCW 43.01.036, to 38
the appropriate committees of the legislature every two years. The 39
report at a minimum must include the following:40
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(i) The specific recommendations required under (a) of this 1
subsection;2
(ii) A comparison of gross sales and tax collections prior to and 3
after any cannabis tax change;4
(iii) The increase or decrease in the volume of legal cannabis 5
sold prior to and after any cannabis tax change;6
(iv) Increases or decreases in the number of licensed cannabis 7
producers, processors, and retailers;8
(v) The number of illegal and noncompliant cannabis outlets the 9
board requires to be closed;10
(vi) Gross cannabis sales and tax collections in Oregon; and11
(vii) The total amount of reported sales and use taxes exempted 12
for qualifying patients. The department of revenue must provide the 13
data of exempt amounts to the board.14
(c) The board is not required to report to the legislature as 15
required in (b) of this subsection after January 1, 2025.))16
(7) The legislature does not intend and does not authorize any 17
person or entity to engage in activities or to conspire to engage in 18
activities that would constitute per se violations of state and 19
federal antitrust laws including, but not limited to, agreements 20
among retailers as to the selling price of any goods sold.21
Sec. 4. RCW 69.50.325 and 2025 c 250 s 1 are each amended to 22
read as follows: 23
(1) There shall be a cannabis producer's license regulated by the 24
board and subject to annual renewal. The licensee is authorized to 25
produce: (a) Cannabis for sale at wholesale to cannabis processors 26
and other cannabis producers; (b) immature plants or clones and seeds 27
for sale to cooperatives as described under RCW 69.51A.250; and (c) 28
immature plants or clones and seeds for sale to qualifying patients 29
and designated providers as provided under RCW 69.51A.310. The 30
production, possession, delivery, distribution, and sale of cannabis 31
in accordance with the provisions of this chapter and the rules 32
adopted to implement and enforce it, by a validly licensed cannabis 33
producer, shall not be a criminal or civil offense under Washington 34
state law. Every cannabis producer's license shall be issued in the 35
name of the applicant, shall specify the location at which the 36
cannabis producer intends to operate, which must be within the state 37
of Washington, and the holder thereof shall not allow any other 38
person to use the license. The application fee for a cannabis 39
p. 20 HB 2433
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. 5
(2) There shall be a cannabis processor's license to process, 6
package, and label cannabis concentrates, useable cannabis, and 7
cannabis-infused products , including cannabis products identified in 8
subsection (4) of this section, for sale at wholesale to cannabis 9
processors and cannabis retailers, regulated by the board and subject 10
to annual renewal. The processing, packaging, possession, delivery, 11
distribution, and sale of cannabis, useable cannabis, cannabis-12
infused products, and cannabis concentrates in accordance with the 13
provisions of this chapter and chapter 69.51A RCW and the rules 14
adopted to implement and enforce these chapters, by a validly 15
licensed cannabis processor, shall not be a criminal or civil offense 16
under Washington state law. Every cannabis processor's license shall 17
be issued in the name of the applicant, shall specify the location at 18
which the licensee 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
processor's license shall be ((two hundred fifty dollars )) $250. The 22
annual fee for issuance and renewal of a cannabis processor's license 23
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 24
separate license shall be required for each location at which a 25
cannabis processor intends to process cannabis. 26
(3)(a) There shall be a cannabis retailer's license to sell 27
cannabis concentrates, useable cannabis, and cannabis-infused 28
products, including cannabis products identified in subsection (4) of 29
this section, 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
p. 21 HB 2433
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)(i) 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
(ii) A retail licensee and all other persons or entities with a 11
financial or other ownership interest may not enter into any 12
management agreement under RCW 69.50.331(1)(b)(iv) or any agreement 13
as referenced in RCW 69.50.395, whether or not in exchange for 14
payment, that confers a financial interest across more than five 15
retail cannabis licenses. For the purposes of this subsection, 16
"financial interest" includes, but is not limited to:17
(A) Any sharing of profits or revenue; 18
(B) Any assistance, coordination, or recommendation for the 19
purchase of cannabis products whereupon pricing is coordinated or 20
discounted; 21
(C) The common use of intellectual property assets such as 22
branding, trade names, logos, social media accounts, or websites;23
(D) Any operational control over the business or operational 24
support for typical day-to-day business operations, including core 25
business or executive functions of the retail cannabis license;26
(E) Any sharing or coordination of marketing and advertising 27
efforts or expenses; and 28
(F) Any coordinated sharing of employment or hiring decisions, 29
including the shared employment of individuals. 30
(c)(i) A cannabis retailer's license is subject to forfeiture in 31
accordance with rules adopted by the board pursuant to this section.32
(ii) The board shall adopt rules to establish a license 33
forfeiture process for a licensed cannabis retailer that is not fully 34
operational and open to the public within a specified period from the 35
date of license issuance, as established by the board, subject to the 36
following restrictions: 37
(A) No cannabis retailer's license may be subject to forfeiture 38
within the first nine months of license issuance; and39
p. 22 HB 2433
(B) The board must require license forfeiture on or before 1
((twenty-four)) 24 calendar months of license issuance if a cannabis 2
retailer is not fully operational and open to the public, unless the 3
board determines that circumstances out of the licensee's control are 4
preventing the licensee from becoming fully operational and that, in 5
the board's discretion, the circumstances warrant extending the 6
forfeiture period beyond ((twenty-four)) 24 calendar months.7
(iii) The board has discretion in adopting rules under this 8
subsection (3)(c). 9
(iv) This subsection (3)(c) applies to cannabis retailer's 10
licenses issued before and after July 23, 2017. However, no license 11
of a cannabis retailer that otherwise meets the conditions for 12
license forfeiture established pursuant to this subsection (3)(c) may 13
be subject to forfeiture within the first nine calendar months of 14
July 23, 2017. 15
(v) The board may not require license forfeiture if the licensee 16
has been incapable of opening a fully operational retail cannabis 17
business due to actions by the city, town, or county with 18
jurisdiction over the licensee that include any of the following:19
(A) The adoption of a ban or moratorium that prohibits the 20
opening of a retail cannabis business; or 21
(B) The adoption of an ordinance or regulation related to zoning, 22
business licensing, land use, or other regulatory measure that has 23
the effect of preventing a licensee from receiving an occupancy 24
permit from the jurisdiction or which otherwise prevents a licensed 25
cannabis retailer from becoming operational. 26
(d) The board may issue cannabis retailer licenses pursuant to 27
this chapter and RCW 69.50.335. 28
(4) Among the types of cannabis products that licensed cannabis 29
producers, processors, and retailers may engage in licensed 30
activities with respect to include cannabis edibles in solid form, 31
cannabis edibles in liquid form, cannabis topicals, cannabis trim, 32
cannabis flower, and prerolls. This subsection does not grant new 33
authority to cannabis licensees or expand any authorization for any 34
person under this chapter. This subsection is intended to recognize 35
types of cannabis products included within existing categories of 36
cannabis products for purposes of applying the cannabis excise tax in 37
RCW 69.50.535.38
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NEW SECTION. Sec. 5. Section 1 of this act expires June 30, 1
2027.2
NEW SECTION. Sec. 6. Section 2 of this act takes effect June 3
30, 2027.4
--- END ---
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