Interstate cannabis market

AN ACT Relating to preparing for a legal interstate cannabis 1
market; amending RCW 69.50.325, 69.50.348, 43.06.495, and 69.50.401; 2
amending 2023 c 264 s 2 (uncodified); adding a new section to chapter 3
69.50 RCW; and prescribing penalties. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 69.50 6
RCW to read as follows: 7
(1) Upon the occurrence of a legal interstate cannabis market, 8
prior to sale at retail, any cannabis, useable cannabis, cannabis-9
infused products, or cannabis concentrates sold into or brought into 10
Washington from another state, country, or other jurisdiction must:11
(a) Be distributed through a cannabis processor licensed by the 12
board under RCW 69.50.325; and 13
(b) Undergo quality assurance and product testing as required 14
under RCW 69.50.348 by an independent, third-party testing laboratory 15
accredited by the state department of agriculture.16
(2) For purposes of this section, and RCW 69.50.325(2) and 17
69.50.348(1)(c), a legal interstate cannabis market is deemed to 18
occur if federal law is amended to allow for the interstate transfer 19
of cannabis between authorized cannabis-related businesses or the 20
United States department of justice issues an opinion or memorandum 21
H-2407.2
HOUSE BILL 2504
State of Washington 69th Legislature 2026 Regular Session
By Representatives Wylie, Kloba, Scott, and Reeves
Read first time 01/15/26. Referred to Committee on Consumer
Protection & Business.
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allowing or tolerating the interstate transfer of cannabis between 1
authorized cannabis-related businesses. 2
(3) Nothing in this section is intended to authorize the purchase 3
or receipt of cannabis, useable cannabis, cannabis-infused products, 4
or cannabis concentrates from a source in another state, country, or 5
jurisdiction before: 6
(a) Changes in federal law or policy to allow for the interstate 7
transfer of cannabis between authorized cannabis-related businesses 8
as described in subsection (2) of this section; and9
(b) The board authorizing licensed cannabis processors to 10
purchase and receive cannabis, useable cannabis, cannabis-infused 11
products, and cannabis concentrates from persons legally authorized 12
by another state, country, or jurisdiction to produce, process, or 13
sell the cannabis, useable cannabis, cannabis-infused products, or 14
cannabis concentrates. 15
(4) As provided in RCW 69.50.401, cannabis, useable cannabis, 16
cannabis-infused products, or cannabis concentrates may not be sold 17
or delivered to a consumer by mail or shipment. 18
Sec. 2. RCW 69.50.325 and 2025 c 250 s 1 are each amended to 19
read as follows: 20
(1) There shall be a cannabis producer's license regulated by the 21
board and subject to annual renewal. The licensee is authorized to 22
produce: (a) Cannabis for sale at wholesale to cannabis processors 23
and other cannabis producers; (b) immature plants or clones and seeds 24
for sale to cooperatives as described under RCW 69.51A.250; and (c) 25
immature plants or clones and seeds for sale to qualifying patients 26
and designated providers as provided under RCW 69.51A.310. The 27
production, possession, delivery, distribution, and sale of cannabis 28
in accordance with the provisions of this chapter and the rules 29
adopted to implement and enforce it, by a validly licensed cannabis 30
producer, shall not be a criminal or civil offense under Washington 31
state law. Every cannabis producer's license shall be issued in the 32
name of the applicant, shall specify the location at which the 33
cannabis producer intends to operate, which must be within the state 34
of Washington, and the holder thereof shall not allow any other 35
person to use the license. The application fee for a cannabis 36
producer's license shall be ((two hundred fifty dollars )) $250. The 37
annual fee for issuance and renewal of a cannabis producer's license 38
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 39
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separate license shall be required for each location at which a 1
cannabis producer intends to produce cannabis. 2
(2) There shall be a cannabis processor's license to process, 3
package, and label cannabis concentrates, useable cannabis, and 4
cannabis-infused products for sale at wholesale to cannabis 5
processors and cannabis retailers, regulated by the board and subject 6
to annual renewal. The processing, packaging, possession, delivery, 7
distribution, and sale of cannabis, useable cannabis, cannabis-8
infused products, and cannabis concentrates in accordance with the 9
provisions of this chapter and chapter 69.51A RCW and the rules 10
adopted to implement and enforce these chapters, by a validly 11
licensed cannabis processor, shall not be a criminal or civil offense 12
under Washington state law. Every cannabis processor's license shall 13
be issued in the name of the applicant, shall specify the location at 14
which the licensee intends to operate, which must be within the state 15
of Washington, and the holder thereof shall not allow any other 16
person to use the license. The application fee for a cannabis 17
processor's license shall be ((two hundred fifty dollars )) $250. The 18
annual fee for issuance and renewal of a cannabis processor's license 19
shall be ((one thousand three hundred eighty-one dollars )) $1,381. A 20
separate license shall be required for each location at which a 21
cannabis processor intends to process cannabis. Upon the occurrence 22
of a legal interstate cannabis market and authorization from the 23
board, cannabis processors may purchase and receive cannabis, useable 24
cannabis, cannabis-infused products, and cannabis concentrates from 25
persons legally authorized by another state, country, or jurisdiction 26
to produce, process, or sell the cannabis, useable cannabis, 27
cannabis-infused products, or cannabis concentrates.28
(3)(a) There shall be a cannabis retailer's license to sell 29
cannabis concentrates, useable cannabis, and cannabis-infused 30
products at retail in retail outlets, regulated by the board and 31
subject to annual renewal. The possession, delivery, distribution, 32
and sale of cannabis concentrates, useable cannabis, and cannabis-33
infused products in accordance with the provisions of this chapter 34
and the rules adopted to implement and enforce it, by a validly 35
licensed cannabis retailer, shall not be a criminal or civil offense 36
under Washington state law. Every cannabis retailer's license shall 37
be issued in the name of the applicant, shall specify the location of 38
the retail outlet the licensee intends to operate, which must be 39
within the state of Washington, and the holder thereof shall not 40
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allow any other person to use the license. The application fee for a 1
cannabis retailer's license shall be ((two hundred fifty dollars )) 2
$250. The annual fee for issuance and renewal of a cannabis 3
retailer's license shall be ((one thousand three hundred eighty-one 4
dollars)) $1,381. A separate license shall be required for each 5
location at which a cannabis retailer intends to sell cannabis 6
concentrates, useable cannabis, and cannabis-infused products.7
(b)(i) An individual retail licensee and all other persons or 8
entities with a financial or other ownership interest in the business 9
operating under the license are limited, in the aggregate, to holding 10
a collective total of not more than five retail cannabis licenses.11
(ii) A retail licensee and all other persons or entities with a 12
financial or other ownership interest may not enter into any 13
management agreement under RCW 69.50.331(1)(b)(iv) or any agreement 14
as referenced in RCW 69.50.395, whether or not in exchange for 15
payment, that confers a financial interest across more than five 16
retail cannabis licenses. For the purposes of this subsection, 17
"financial interest" includes, but is not limited to:18
(A) Any sharing of profits or revenue; 19
(B) Any assistance, coordination, or recommendation for the 20
purchase of cannabis products whereupon pricing is coordinated or 21
discounted; 22
(C) The common use of intellectual property assets such as 23
branding, trade names, logos, social media accounts, or websites;24
(D) Any operational control over the business or operational 25
support for typical day-to-day business operations, including core 26
business or executive functions of the retail cannabis license;27
(E) Any sharing or coordination of marketing and advertising 28
efforts or expenses; and 29
(F) Any coordinated sharing of employment or hiring decisions, 30
including the shared employment of individuals. 31
(c)(i) A cannabis retailer's license is subject to forfeiture in 32
accordance with rules adopted by the board pursuant to this section.33
(ii) The board shall adopt rules to establish a license 34
forfeiture process for a licensed cannabis retailer that is not fully 35
operational and open to the public within a specified period from the 36
date of license issuance, as established by the board, subject to the 37
following restrictions: 38
(A) No cannabis retailer's license may be subject to forfeiture 39
within the first nine months of license issuance; and40
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(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
Sec. 3. RCW 69.50.348 and 2024 c 69 s 2 are each amended to read 29
as follows: 30
(1)(a) On a schedule determined by the board, every licensed 31
cannabis producer and processor must submit representative samples of 32
cannabis, useable cannabis, or cannabis-infused products produced or 33
processed by the licensee to an independent, third-party testing 34
laboratory meeting the accreditation requirements established by the 35
state department of agriculture. 36
(b) The purpose of testing representative samples is to certify 37
compliance with quality assurance and product standards adopted by 38
the board under RCW 69.50.342 or the department of health under RCW 39
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69.50.375. In conducting tests of cannabis product samples, testing 1
laboratories must adhere to laboratory quality standards adopted by 2
the state department of agriculture under chapter 15.150 RCW. Any 3
sample remaining after testing shall be destroyed by the laboratory 4
or returned to the licensee submitting the sample. 5
(c) Upon the occurrence of a legal interstate cannabis market as 6
defined in section 1 of this act, on a schedule determined by the 7
board, any cannabis, useable cannabis, cannabis-infused products, or 8
cannabis concentrates produced or processed outside of Washington 9
that are sold or distributed into Washington are subject to the same 10
quality assurance and product testing standards as required under 11
this chapter for cannabis, useable cannabis, cannabis-infused 12
products, or cannabis concentrates produced or processed in 13
Washington. Representative samples of cannabis, useable cannabis, 14
cannabis-infused products, or cannabis concentrates from outside 15
Washington must be tested by an independent, third-party testing 16
laboratory accredited by the state department of agriculture, before 17
sale at retail in Washington.18
(2) Independent, third-party testing laboratories performing 19
cannabis product testing under subsection (1) of this section must 20
obtain and maintain accreditation. 21
(3) Licensees must submit the results of inspection and testing 22
for quality assurance and product standards required under RCW 23
69.50.342 to the board on a form developed by the board.24
(4) If a representative sample inspected and tested under this 25
section does not meet the applicable quality assurance and product 26
standards established by the board then, except as otherwise provided 27
by the board in rule, the entire lot from which the sample was taken 28
must be destroyed. 29
(5) The department of agriculture may determine, assess, and 30
collect annual fees to support the direct and indirect costs of 31
implementing a state cannabis product testing laboratory 32
accreditation program and laboratory quality standards program, 33
except for the initial program development costs. The department of 34
agriculture may establish a payment schedule requiring periodic 35
installments of the annual fee. The department of agriculture must 36
review and update its fee schedule biennially. The costs of cannabis 37
product testing laboratory accreditation are those incurred by the 38
department of agriculture in administering and enforcing the 39
accreditation program. The costs may include, but are not limited to, 40
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the costs incurred in undertaking the following accreditation 1
functions: 2
(a) Evaluating the protocols and procedures used by a laboratory;3
(b) Performing on-site audits; 4
(c) Evaluating participation and successful completion of 5
proficiency testing; 6
(d) Determining the capability of a laboratory to produce 7
accurate and reliable test results; and 8
(e) Such other accreditation activities as the department of 9
agriculture deems appropriate. 10
(6) The department of agriculture and the interagency 11
coordination team created in RCW 15.150.020 must act cooperatively to 12
ensure effective implementation and administration of this section.13
(7) All fees collected under this section must be deposited in 14
the dedicated cannabis account created in RCW 69.50.530.15
Sec. 4. RCW 43.06.495 and 2023 c 264 s 1 are each amended to 16
read as follows: 17
(1) ((The)) Subject to section 1 of this act, the governor may 18
enter into an agreement with another state or states for the purposes 19
of: 20
(a) Cross-jurisdictional coordination and enforcement of 21
cannabis-related businesses authorized to conduct business in this 22
state, the other state, or both; and 23
(b) Cross-jurisdictional delivery of cannabis between this state 24
and the other state. 25
(2) An agreement entered into under this section must ensure:26
(a) Enforceable public health and safety standards are met and 27
include a system to regulate and track the interstate delivery of 28
cannabis; 29
(b) Any cannabis delivered into this state, prior to sale to a 30
consumer, is: 31
(i) Tested in accordance with rules adopted by the department of 32
agriculture under RCW 15.125.020, by the department of health under 33
RCW 69.50.375, and by the liquor and cannabis board under RCW 34
69.50.342, 69.50.345, and 69.50.348; 35
(ii) Packaged and labeled in accordance with RCW 69.50.346 and 36
rules adopted by the liquor and cannabis board under RCW 69.50.342 37
and 69.50.345; and 38
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(c) Applicable taxes on the sale, delivery, and receipt of 1
cannabis are collected. 2
(3) In accordance with an agreement entered into under this 3
section: 4
(a) A cannabis producer, cannabis processor, cannabis researcher, 5
or cannabis retailer licensed under chapter 69.50 RCW may deliver 6
cannabis to a person located in, and authorized to receive cannabis 7
by, the other state. 8
(b) A cannabis ((producer, cannabis )) processor((,)) or cannabis 9
researcher((, or cannabis retailer )) licensed under chapter 69.50 RCW 10
may receive cannabis from a person located in, and authorized to 11
export cannabis by, the other state. 12
(4) For the purposes of this section, "cannabis," "cannabis 13
processor," "cannabis producer," "cannabis researcher," "cannabis 14
retailer," and "person" have the meanings provided in RCW 69.50.101.15
Sec. 5. RCW 69.50.401 and 2022 c 16 s 84 are each amended to 16
read as follows: 17
(1) Except as authorized by this chapter, it is unlawful for any 18
person to manufacture, deliver, or possess with intent to manufacture 19
or deliver, a controlled substance. 20
(2) Any person who violates this section with respect to:21
(a) A controlled substance classified in Schedule I or II which 22
is a narcotic drug or flunitrazepam, including its salts, isomers, 23
and salts of isomers, classified in Schedule IV, is guilty of a class 24
B felony and upon conviction may be imprisoned for not more than ten 25
years, or (i) fined not more than twenty-five thousand dollars if the 26
crime involved less than two kilograms of the drug, or both such 27
imprisonment and fine; or (ii) if the crime involved two or more 28
kilograms of the drug, then fined not more than one hundred thousand 29
dollars for the first two kilograms and not more than fifty dollars 30
for each gram in excess of two kilograms, or both such imprisonment 31
and fine; 32
(b) Amphetamine, including its salts, isomers, and salts of 33
isomers, or methamphetamine, including its salts, isomers, and salts 34
of isomers, is guilty of a class B felony and upon conviction may be 35
imprisoned for not more than ten years, or (i) fined not more than 36
twenty-five thousand dollars if the crime involved less than two 37
kilograms of the drug, or both such imprisonment and fine; or (ii) if 38
the crime involved two or more kilograms of the drug, then fined not 39
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more than one hundred thousand dollars for the first two kilograms 1
and not more than fifty dollars for each gram in excess of two 2
kilograms, or both such imprisonment and fine. Three thousand dollars 3
of the fine may not be suspended. As collected, the first three 4
thousand dollars of the fine must be deposited with the law 5
enforcement agency having responsibility for cleanup of laboratories, 6
sites, or substances used in the manufacture of the methamphetamine, 7
including its salts, isomers, and salts of isomers. The fine moneys 8
deposited with that law enforcement agency must be used for such 9
clean-up cost; 10
(c) Any other controlled substance classified in Schedule I, II, 11
or III, is guilty of a class C felony punishable according to chapter 12
9A.20 RCW, except as provided in RCW 69.50.475; 13
(d) A substance classified in Schedule IV, except flunitrazepam, 14
including its salts, isomers, and salts of isomers, is guilty of a 15
class C felony punishable according to chapter 9A.20 RCW; or16
(e) A substance classified in Schedule V, is guilty of a class C 17
felony punishable according to chapter 9A.20 RCW. 18
(3) ((The)) (a) Except as provided in subsection (b) of this 19
section, the production, manufacture, processing, packaging, 20
delivery, distribution, sale, or possession of cannabis in compliance 21
with the terms set forth in RCW 69.50.360, 69.50.363, or 69.50.366 22
shall not constitute a violation of this section, this chapter, or 23
any other provision of Washington state law. 24
(b) A person who sells or delivers cannabis, useable cannabis, 25
cannabis-infused products, or cannabis concentrates to a consumer by 26
mail or shipment is in violation of this section and is guilty of a 27
class C felony punishable under chapter 9A.20 RCW.28
(4) The fines in this section apply to adult offenders only.29
Sec. 6. 2023 c 264 s 2 (uncodified) is amended to read as 30
follows: 31
(1) ((This act takes )) RCW 43.06.495 and section 1 of this act 32
take effect on the earlier of the date on which: 33
(a) Federal law is amended to allow for the interstate transfer 34
of cannabis between authorized cannabis-related businesses; or35
(b) The United States department of justice issues an opinion or 36
memorandum allowing or tolerating the interstate transfer of cannabis 37
between authorized cannabis-related businesses. 38
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(2) If either of the conditions in subsection (1) of this section 1
occur, the liquor and cannabis board must: 2
(a) Provide written notice of the effective date of ((section 1 3
of this act )) RCW 43.06.495 and section 1 of this act to affected 4
parties, the chief clerk of the house of representatives, the 5
secretary of the senate, the office of the code reviser, and others 6
deemed appropriate by the board; 7
(b) Provide written notice of statutory changes necessary to 8
authorize the sale, delivery, and receipt of cannabis in accordance 9
with section 1 of this act or an agreement entered into under 10
((section 1 of this act )) RCW 43.06.495 to the governor and the 11
appropriate committees of the legislature; and 12
(c) Adopt rules necessary to authorize the sale, delivery, and 13
receipt of cannabis in accordance with section 1 of this act or an 14
agreement entered into under ((section 1 of this act)) RCW 43.06.495.15
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