Cannabis license fees

AN ACT Relating to cannabis producer, processor, and retailer 1
license fees; and amending RCW 69.50.325. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 69.50.325 and 2025 c 250 s 1 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
Z-0630.1
HOUSE BILL 2681
State of Washington 69th Legislature 2026 Regular Session
By Representative Ormsby; by request of Office of Financial
Management
Read first time 01/27/26. Referred to Committee on Appropriations.
p. 1 HB 2681
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 )) $1,781. 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 for sale at wholesale to cannabis 8
processors and cannabis retailers, regulated by the board and subject 9
to annual renewal. The processing, packaging, possession, delivery, 10
distribution, and sale of cannabis, useable cannabis, cannabis-11
infused products, and cannabis concentrates in accordance with the 12
provisions of this chapter and chapter 69.51A RCW and the rules 13
adopted to implement and enforce these chapters, by a validly 14
licensed cannabis processor, shall not be a criminal or civil offense 15
under Washington state law. Every cannabis processor's license shall 16
be issued in the name of the applicant, shall specify the location at 17
which the licensee intends to operate, which must be within the state 18
of Washington, and the holder thereof shall not allow any other 19
person to use the license. The application fee for a cannabis 20
processor's license shall be ((two hundred fifty dollars )) $250. The 21
annual fee for issuance and renewal of a cannabis processor's license 22
shall be ((one thousand three hundred eighty-one dollars )) $1,781. A 23
separate license shall be required for each location at which a 24
cannabis processor intends to process cannabis. 25
(3)(a) There shall be a cannabis retailer's license to sell 26
cannabis concentrates, useable cannabis, and cannabis-infused 27
products at retail in retail outlets, regulated by the board and 28
subject to annual renewal. The possession, delivery, distribution, 29
and sale of cannabis concentrates, useable cannabis, and cannabis-30
infused products in accordance with the provisions of this chapter 31
and the rules adopted to implement and enforce it, by a validly 32
licensed cannabis retailer, shall not be a criminal or civil offense 33
under Washington state law. Every cannabis retailer's license shall 34
be issued in the name of the applicant, shall specify the location of 35
the retail outlet the licensee intends to operate, which must be 36
within the state of Washington, and the holder thereof shall not 37
allow any other person to use the license. The application fee for a 38
cannabis retailer's license shall be ((two hundred fifty dollars )) 39
$250. The annual fee for issuance and renewal of a cannabis 40
p. 2 HB 2681
retailer's license shall be ((one thousand three hundred eighty-one 1
dollars)) $1,781. A separate license shall be required for each 2
location at which a cannabis retailer intends to sell cannabis 3
concentrates, useable cannabis, and cannabis-infused products.4
(b)(i) An individual retail licensee and all other persons or 5
entities with a financial or other ownership interest in the business 6
operating under the license are limited, in the aggregate, to holding 7
a collective total of not more than five retail cannabis licenses.8
(ii) A retail licensee and all other persons or entities with a 9
financial or other ownership interest may not enter into any 10
management agreement under RCW 69.50.331(1)(b)(iv) or any agreement 11
as referenced in RCW 69.50.395, whether or not in exchange for 12
payment, that confers a financial interest across more than five 13
retail cannabis licenses. For the purposes of this subsection, 14
"financial interest" includes, but is not limited to:15
(A) Any sharing of profits or revenue; 16
(B) Any assistance, coordination, or recommendation for the 17
purchase of cannabis products whereupon pricing is coordinated or 18
discounted; 19
(C) The common use of intellectual property assets such as 20
branding, trade names, logos, social media accounts, or websites;21
(D) Any operational control over the business or operational 22
support for typical day-to-day business operations, including core 23
business or executive functions of the retail cannabis license;24
(E) Any sharing or coordination of marketing and advertising 25
efforts or expenses; and 26
(F) Any coordinated sharing of employment or hiring decisions, 27
including the shared employment of individuals. 28
(c)(i) A cannabis retailer's license is subject to forfeiture in 29
accordance with rules adopted by the board pursuant to this section.30
(ii) The board shall adopt rules to establish a license 31
forfeiture process for a licensed cannabis retailer that is not fully 32
operational and open to the public within a specified period from the 33
date of license issuance, as established by the board, subject to the 34
following restrictions: 35
(A) No cannabis retailer's license may be subject to forfeiture 36
within the first nine months of license issuance; and37
(B) The board must require license forfeiture on or before 38
((twenty-four)) 24 calendar months of license issuance if a cannabis 39
retailer is not fully operational and open to the public, unless the 40
p. 3 HB 2681
board determines that circumstances out of the licensee's control are 1
preventing the licensee from becoming fully operational and that, in 2
the board's discretion, the circumstances warrant extending the 3
forfeiture period beyond ((twenty-four)) 24 calendar months.4
(iii) The board has discretion in adopting rules under this 5
subsection (3)(c). 6
(iv) This subsection (3)(c) applies to cannabis retailer's 7
licenses issued before and after July 23, 2017. However, no license 8
of a cannabis retailer that otherwise meets the conditions for 9
license forfeiture established pursuant to this subsection (3)(c) may 10
be subject to forfeiture within the first nine calendar months of 11
July 23, 2017. 12
(v) The board may not require license forfeiture if the licensee 13
has been incapable of opening a fully operational retail cannabis 14
business due to actions by the city, town, or county with 15
jurisdiction over the licensee that include any of the following:16
(A) The adoption of a ban or moratorium that prohibits the 17
opening of a retail cannabis business; or 18
(B) The adoption of an ordinance or regulation related to zoning, 19
business licensing, land use, or other regulatory measure that has 20
the effect of preventing a licensee from receiving an occupancy 21
permit from the jurisdiction or which otherwise prevents a licensed 22
cannabis retailer from becoming operational. 23
(d) The board may issue cannabis retailer licenses pursuant to 24
this chapter and RCW 69.50.335. 25
(4) Beginning July 1, 2027, and annually thereafter, the board 26
shall add to the annual fee for issuance and renewal of the licenses 27
in subsections (1) through (3) of this section the change in the 28
consumer price index since July 1, 2026. For the purposes of this 29
subsection, "consumer price index" means the consumer price index for 30
all urban consumers, all items, for the Seattle area as published by 31
the United States bureau of labor statistics.32
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