Hemp-derived cannabinoids

AN ACT Relating to hemp-derived cannabinoid products; amending 1
RCW 15.140.020, 69.50.101, 69.50.101, and 69.50.325; adding new 2
sections to chapter 15.140 RCW; adding a new section to chapter 69.50 3
RCW; adding a new section to chapter 82.32 RCW; creating a new 4
section; prescribing penalties; providing effective dates; providing 5
an expiration date; and declaring an emergency. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 15.140.020 and 2023 c 365 s 1 are each amended to 8
read as follows: 9
The definitions in this section apply throughout this chapter 10
unless the context clearly requires otherwise. 11
(1) "Agriculture improvement act of 2018" means sections 7605, 12
10113, 10114, and 12619 of the agriculture improvement act of 2018, 13
P.L. 115-334. 14
(2) "Cannabis" has the meaning provided in RCW 69.50.101.15
(3) "Container" means the innermost bottle, can, jar, bag, box, 16
cartridge, or other receptacle that is in direct contact with a hemp-17
derived cannabinoid product and is used for retail sale to a 18
consumer.19
(4) "Crop" means hemp grown as an agricultural commodity.20
H-3615.1
HOUSE BILL 2740
State of Washington 69th Legislature 2026 Regular Session
By Representative Reeves
Read first time 02/24/26. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 2740
(((4))) (5) "Cultivar" means a variation of the plant Cannabis 1
sativa L. that has been developed through cultivation by selective 2
breeding. 3
(((5))) (6) "Department" means the Washington state department of 4
agriculture. 5
(((6))) (7) "Food" has the same meaning as defined in RCW 6
69.07.010. 7
(((7))) (8) "Hemp" means the plant Cannabis sativa L. and any 8
part of that plant, including the seeds thereof and all derivatives, 9
extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 10
whether growing or not, with a ((delta-9)) total tetrahydrocannabinol 11
concentration of not more than 0.3 percent on a dry weight basis , 12
measured after decarboxylation. 13
(((8))) (9) "Hemp consumable" means a product that is sold or 14
provided to another person, that is: 15
(a) Made of hemp; 16
(b) Not a cannabis product, as defined in RCW 69.50.101; and17
(c) Intended to be consumed or absorbed inside the body by any 18
means, including inhalation, ingestion, or insertion.19
(((9))) (10) "Hemp-derived cannabinoid product" means a hemp 20
consumable that contains one or more cannabinoids derived from hemp, 21
including tetrahydrocannabinols, and is packaged in a container for 22
retail sale.23
(11) "Hemp processor" means a person who takes possession of raw 24
hemp material with the intent to modify, package, or sell a 25
transitional or finished hemp product. 26
(((10)(a) "Industrial hemp" means all parts and varieties of the 27
genera Cannabis, cultivated or possessed by a grower, whether growing 28
or not, that contain a tetrahydrocannabinol concentration of 0.3 29
percent or less by dry weight that was grown under the industrial 30
hemp research program as it existed on December 31, 2019.31
(b) "Industrial hemp" does not include plants of the genera 32
Cannabis that meet the definition of "cannabis."33
(11))) (12) "Postharvest test" means a test of 34
((tetrahydrocannabinol concentration levels of hemp after being 35
harvested based on:36
(a) Ground whole plant samples without heat applied; or37
(b) Other approved testing methods )) hemp after harvest for the 38
purpose of determining the total level of delta-9 39
tetrahydrocannabinol concentration on a dry weight basis.40
p. 2 HB 2740
(((12))) (13) "Process" means ((the processing, compounding, or 1
conversion of hemp into hemp commodities or products )) a method of 2
preparing hemp or hemp products and includes, but is not limited to, 3
decortication, devitalization, extraction, crushing, packaging, or 4
changing the form of the hemp, or changing the hemp into a hemp 5
product. 6
(((13))) (14) "Produce" or "production" means the planting, 7
cultivation, growing, or harvesting of hemp including hemp seed.8
(15) "Total tetrahydrocannabinols" means the sum of 9
tetrahydrocannabinol and tetrahydrocannabinolic acid and any other 10
tetrahydrocannabinol isomers included in federal law for purposes of 11
determining compliance with hemp standards, calculated on a molar 12
basis as provided in federal regulations.13
NEW SECTION. Sec. 2. A new section is added to chapter 15.140 14
RCW to read as follows: 15
(1) A hemp-derived cannabinoid product remains hemp and a hemp 16
consumable for the purposes of this chapter only if:17
(a) The hemp used to produce the product meets the definition of 18
hemp in RCW 15.140.020, including the 0.3 percent total 19
tetrahydrocannabinols dry-weight limit; and 20
(b) The product contains not more than 0.4 milligrams combined 21
total per container of: 22
(i) Total tetrahydrocannabinols; and 23
(ii) Any other cannabinoids that federal law or the United States 24
department of health and human services determines have effects on 25
humans or animals that are similar to tetrahydrocannabinols, or that 26
are marketed as having such effects. 27
(2) A hemp-derived cannabinoid product does not qualify as hemp 28
or as a hemp consumable under this chapter if it: 29
(a) Contains a cannabinoid that cannot be produced naturally by 30
the Cannabis sativa L. plant; or 31
(b) Contains a naturally occurring cannabinoid that has been 32
synthesized or manufactured outside of the plant. 33
(3)(a) A person may not sell, furnish, or transfer a hemp 34
consumable that contains any detectable amount of 35
tetrahydrocannabinols, including any hemp-derived cannabinoid 36
product, to a person under 21 years of age. 37
(b) A person purchasing a hemp consumable described in (a) of 38
this subsection must be at least 21 years of age and must present 39
p. 3 HB 2740
satisfactory evidence of age in a form permitted for age-restricted 1
products under state law. 2
(4) Any hemp-derived cannabinoid product that does not comply 3
with subsections (1) and (2) of this section, or that is sold or 4
distributed in violation of subsection (3) of this section, is not a 5
hemp consumable under this chapter and is subject to regulation and 6
enforcement as cannabis or a cannabis product, as those terms are 7
defined in RCW 69.50.101 and related provisions. 8
(5) The department may adopt rules to implement this section 9
including, but not limited to, testing, recordkeeping, and labeling 10
requirements necessary to determine compliance with the per container 11
limit established in subsection (1)(b) of this section, and to ensure 12
appropriate age verification at the point of sale.13
NEW SECTION. Sec. 3. A new section is added to chapter 15.140 14
RCW to read as follows: 15
(1)(a) A person may not manufacture, distribute, or sell a hemp-16
derived cannabinoid product in this state unless the product and its 17
product formulation are registered annually with the department, as 18
provided in this section. 19
(b) For purposes of this subsection, "product formulation" means 20
a distinct combination of: 21
(i) Active hemp-derived ingredients including total 22
tetrahydrocannabinols; 23
(ii) Product form and delivery system including, but not limited 24
to, beverage, edible, capsule, or tincture; and 25
(iii) Strength or concentration of active ingredients per 26
serving. 27
(2) The department shall establish by rule an annual hemp-derived 28
cannabinoid product registration program. At a minimum, the rules 29
must: 30
(a) Require a separate registration for each product formulation;31
(b) Require submission of product labels, ingredient lists, and 32
certificates of analysis from a qualifying laboratory;33
(c) Establish procedures for renewal, modification, and 34
cancellation of registrations; and 35
(d) Provide for suspension and revocation of a registration for 36
violations of this chapter or rules adopted under it.37
(3)(a) The department shall assess an annual registration fee for 38
each hemp-derived cannabinoid product formulation.39
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(b) The department shall set the amount of the registration fee 1
by rule, but in no case may the annual registration fee be less than 2
$2,500 per product formulation per year. 3
(c) Registration fees collected under this subsection (3) must be 4
deposited in the hemp regulatory account created in RCW 15.140.080 5
for the administration and enforcement of this chapter.6
(4)(a) A person who manufactures, distributes, or sells a hemp-7
derived cannabinoid product in this state that is not registered with 8
the department as required under this section is subject to a civil 9
penalty of up to $10,000 per product, per day, in addition to any 10
other remedy available under state law. 11
(b) Each distinct product formulation and each day of violation 12
is a separate violation for purposes of assessing civil penalties 13
under this subsection (4). 14
(5) In addition to civil penalties under subsection (4) of this 15
section, the department may: 16
(a) Issue a stop-sale, stop-distribution, or embargo order for 17
any noncompliant product; 18
(b) Refer violations to the Washington state liquor and cannabis 19
board or the attorney general for investigation and enforcement as 20
unlicensed cannabis activity when the product meets the definition of 21
cannabis or cannabis product under chapter 69.50 RCW; and22
(c) Seek injunctive relief in superior court to prevent ongoing 23
or threatened violations of this chapter. 24
(6) The department may coordinate product registration and 25
enforcement activities under this section with other department 26
programs regulating food processing, labeling, and consumer 27
protection, but retains primary responsibility for administration of 28
this chapter. 29
NEW SECTION. Sec. 4. A new section is added to chapter 69.50 30
RCW to read as follows: 31
(1) A licensed cannabis processor may manufacture, package, and 32
label products that meet the definition of a hemp consumable and a 33
hemp-derived cannabinoid product under chapter 15.140 RCW, including 34
products containing tetrahydrocannabinols, only if:35
(a) The hemp and hemp-derived ingredients used in the product 36
meet the definition of hemp in RCW 15.140.020, including the total 37
tetrahydrocannabinols concentration of not more than 0.3 percent on a 38
dry weight basis; 39
p. 5 HB 2740
(b) Each finished product container contains not more than 0.4 1
milligrams total tetrahydrocannabinols per container, as provided in 2
chapter 15.140 RCW; and 3
(c) The product otherwise complies with all requirements of 4
chapter 15.140 RCW and rules adopted under that chapter, including 5
any product registration, testing, labeling, and age restriction 6
requirements. 7
(2) A licensed cannabis processor that manufactures products 8
under subsection (1) of this section: 9
(a) Must hold and maintain a valid processor license under this 10
chapter; 11
(b) Is subject to all applicable rules of the board governing 12
processing operations, recordkeeping, testing, packaging, and 13
labeling; and 14
(c) May sell or transfer such products to: 15
(i) Other licenses under this chapter for further processing or 16
distribution; and 17
(ii) Any person or entity for resale or retail sale in this state 18
including, but not limited to, grocery stores, convenience stores, 19
and other noncannabis retail outlets, so long as the products comply 20
with chapter 15.140 RCW, are registered with the department of 21
agriculture, do not exceed the 0.4 milligram total 22
tetrahydrocannabinols per container limit, and are sold in accordance 23
with applicable age restriction requirements. 24
(3) Products manufactured under this section that do not comply 25
with the 0.4 milligram per container limit or other requirements of 26
chapter 15.140 RCW are cannabis products and must comply with all 27
provisions of this chapter and rules adopted under it and may not be 28
represented or sold as hemp consumables. 29
(4) The board may adopt rules to implement this section, 30
including rules: 31
(a) Governing the use of hemp and hemp-derived ingredients by 32
licensed cannabis processors; 33
(b) Establishing traceability, segregation, and recordkeeping 34
requirements for hemp-derived cannabinoid products manufactured by 35
licensed cannabis processors; and 36
(c) Coordinating with the department of agriculture to avoid 37
duplication of testing or registration requirements where practical.38
p. 6 HB 2740
NEW SECTION. Sec. 5. The department may adopt rules necessary 1
to implement sections 1 and 2 of this act.2
NEW SECTION. Sec. 6. A new section is added to chapter 82.32 3
RCW to read as follows: 4
(1)(a) There is levied and collected a hemp-derived cannabinoid 5
product tax equal to 10 percent of the selling price on each retail 6
sale of a hemp-derived cannabinoid product. This tax is separate and 7
in addition to general state and local sales and use taxes that apply 8
to retail sales of tangible personal property, and is not part of the 9
total retail price to which general state and local sales and use 10
taxes apply. The tax must be separately itemized from the state and 11
local retail sales tax on the sales receipt provided to the buyer.12
(b) The tax levied in this section must be reflected in the price 13
list or quoted price at the licensed premises and in any advertising 14
that includes prices for all hemp-derived cannabinoid products.15
(2) For revenues collected from the hemp-derived cannabinoid 16
product tax imposed under this section, 50 percent must be deposited 17
each day in the hemp regulatory account established in RCW 15.140.080 18
and 50 percent must be deposited in the state general fund.19
(3) The tax imposed in this section must be paid by the buyer to 20
the seller. Each seller must collect from the buyer the full amount 21
of the tax payable on each taxable sale. The tax collected as 22
required by this section is deemed to be held in trust by the seller 23
until paid to the department. If any seller fails to collect the tax 24
imposed in this section or, having collected the tax, fails to pay it 25
as prescribed by the department, whether such failure is the result 26
of the seller's own acts or the result of acts or conditions beyond 27
the seller's control, the seller is, nevertheless, personally liable 28
to the state for the amount of the tax. 29
(4) The definitions in this subsection apply throughout this 30
section unless the context clearly requires otherwise.31
(a) "Hemp-derived cannabinoid product" has the same meaning as in 32
RCW 15.140.020. 33
(b) "Retail sale" has the same meaning as in RCW 82.08.010.34
(c) "Selling price" has the same meaning as in RCW 82.08.010, 35
except that when a product is sold under circumstances where the 36
total amount of consideration paid for the product is not indicative 37
of its true value, "selling price" means the true value of the 38
product sold. 39
p. 7 HB 2740
(d) "True value" means market value based on sales at comparable 1
locations in this state of the same or similar product of like 2
quality and character sold under comparable conditions of sale to 3
comparable purchasers. However, in the absence of such sales of the 4
same or similar product, true value means the value of the product 5
sold as determined by all of the seller's direct and indirect costs 6
attributable to the product. 7
NEW SECTION. Sec. 7. A new section is added to chapter 15.140 8
RCW to read as follows: 9
The legislature does not intend and does not authorize any person 10
or entity to engage in activities or to conspire to engage in 11
activities that would constitute per se violations of state and 12
federal antitrust laws including, but not limited to, agreements 13
among retailers as to the selling price of any goods sold.14
Sec. 8. RCW 69.50.101 and 2024 c 62 s 17 are each amended to 15
read as follows: 16
The definitions in this section apply throughout this chapter 17
unless the context clearly requires otherwise. 18
(1) "Administer" means to apply a controlled substance, whether 19
by injection, inhalation, ingestion, or any other means, directly to 20
the body of a patient or research subject by: 21
(a) a practitioner authorized to prescribe (or, by the 22
practitioner's authorized agent); or 23
(b) the patient or research subject at the direction and in the 24
presence of the practitioner. 25
(2) "Agent" means an authorized person who acts on behalf of or 26
at the direction of a manufacturer, distributor, or dispenser. It 27
does not include a common or contract carrier, public 28
warehouseperson, or employee of the carrier or warehouseperson.29
(3) "Board" means the Washington state liquor and cannabis board.30
(4) "Cannabis" means all parts of the plant Cannabis, whether 31
growing or not, with a THC concentration greater than 0.3 percent on 32
a dry weight basis during the growing cycle through harvest and 33
usable cannabis. "Cannabis" does not include hemp or industrial hemp 34
as defined in RCW 15.140.020, or seeds used for licensed hemp 35
production under chapter 15.140 RCW. 36
p. 8 HB 2740
(5) "Cannabis concentrates" means products consisting wholly or 1
in part of the resin extracted from any part of the plant Cannabis 2
and having a THC concentration greater than ((ten)) 10 percent.3
(6) "Cannabis processor" means a person licensed by the board to 4
process cannabis into cannabis concentrates, useable cannabis, and 5
cannabis-infused products, package and label cannabis concentrates, 6
useable cannabis, and cannabis-infused products for sale in retail 7
outlets, and sell cannabis concentrates, useable cannabis, and 8
cannabis-infused products at wholesale to cannabis retailers.9
(7) "Cannabis producer" means a person licensed by the board to 10
produce and sell cannabis at wholesale to cannabis processors and 11
other cannabis producers. 12
(8)(a) "Cannabis products" means useable cannabis, cannabis 13
concentrates, and cannabis-infused products as defined in this 14
section, including any product intended to be consumed or absorbed 15
inside the body by any means including inhalation, ingestion, or 16
insertion, with ((any detectable amount of THC )) a total THC 17
concentration of more than 0.3 percent on a dry weight basis.18
(b) "Cannabis products" also means any product containing only 19
THC content. 20
(c) "Cannabis products" does not include cannabis health and 21
beauty aids as defined in RCW 69.50.575 or products approved by the 22
United States food and drug administration. 23
(9) "Cannabis researcher" means a person licensed by the board to 24
produce, process, and possess cannabis for the purposes of conducting 25
research on cannabis and cannabis-derived drug products.26
(10) "Cannabis retailer" means a person licensed by the board to 27
sell cannabis concentrates, useable cannabis, and cannabis-infused 28
products in a retail outlet. 29
(11) "Cannabis-infused products" means products that contain 30
cannabis or cannabis extracts, are intended for human use, are 31
derived from cannabis as defined in subsection (4) of this section, 32
and have a THC concentration no greater than ((ten)) 10 percent. The 33
term "cannabis-infused products" does not include either useable 34
cannabis or cannabis concentrates. 35
(12) "CBD concentration" has the meaning provided in RCW 36
69.51A.010. 37
(13) "CBD product" means any product containing or consisting of 38
cannabidiol. 39
p. 9 HB 2740
(14) "Commission" means the pharmacy quality assurance 1
commission. 2
(15) "Controlled substance" means a drug, substance, or immediate 3
precursor included in Schedules I through V as set forth in federal 4
or state laws, or federal or commission rules, but does not include 5
hemp or industrial hemp as defined in RCW 15.140.020.6
(16)(a) "Controlled substance analog" means a substance the 7
chemical structure of which is substantially similar to the chemical 8
structure of a controlled substance in Schedule I or II and:9
(i) that has a stimulant, depressant, or hallucinogenic effect on 10
the central nervous system substantially similar to the stimulant, 11
depressant, or hallucinogenic effect on the central nervous system of 12
a controlled substance included in Schedule I or II; or13
(ii) with respect to a particular individual, that the individual 14
represents or intends to have a stimulant, depressant, or 15
hallucinogenic effect on the central nervous system substantially 16
similar to the stimulant, depressant, or hallucinogenic effect on the 17
central nervous system of a controlled substance included in Schedule 18
I or II. 19
(b) The term does not include: 20
(i) a controlled substance; 21
(ii) a substance for which there is an approved new drug 22
application; 23
(iii) a substance with respect to which an exemption is in effect 24
for investigational use by a particular person under Section 505 of 25
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 26
chapter 69.77 RCW to the extent conduct with respect to the substance 27
is pursuant to the exemption; or 28
(iv) any substance to the extent not intended for human 29
consumption before an exemption takes effect with respect to the 30
substance. 31
(17) "Deliver" or "delivery" means the actual or constructive 32
transfer from one person to another of a substance, whether or not 33
there is an agency relationship. 34
(18) "Department" means the department of health.35
(19) "Designated provider" has the meaning provided in RCW 36
69.51A.010. 37
(20) "Dispense" means the interpretation of a prescription or 38
order for a controlled substance and, pursuant to that prescription 39
or order, the proper selection, measuring, compounding, labeling, or 40
p. 10 HB 2740
packaging necessary to prepare that prescription or order for 1
delivery. 2
(21) "Dispenser" means a practitioner who dispenses.3
(22) "Distribute" means to deliver other than by administering or 4
dispensing a controlled substance. 5
(23) "Distributor" means a person who distributes.6
(24) "Drug" means (a) a controlled substance recognized as a drug 7
in the official United States pharmacopoeia/national formulary or the 8
official homeopathic pharmacopoeia of the United States, or any 9
supplement to them; (b) controlled substances intended for use in the 10
diagnosis, cure, mitigation, treatment, or prevention of disease in 11
individuals or animals; (c) controlled substances (other than food) 12
intended to affect the structure or any function of the body of 13
individuals or animals; and (d) controlled substances intended for 14
use as a component of any article specified in (a), (b), or (c) of 15
this subsection. The term does not include devices or their 16
components, parts, or accessories. 17
(25) "Drug enforcement administration" means the drug enforcement 18
administration in the United States Department of Justice, or its 19
successor agency. 20
(26) "Electronic communication of prescription information" means 21
the transmission of a prescription or refill authorization for a drug 22
of a practitioner using computer systems. The term does not include a 23
prescription or refill authorization verbally transmitted by 24
telephone nor a facsimile manually signed by the practitioner.25
(27) "Immature plant or clone" means a plant or clone that has no 26
flowers, is less than ((twelve)) 12 inches in height, and is less 27
than ((twelve)) 12 inches in diameter. 28
(28) "Immediate precursor" means a substance: 29
(a) that the commission has found to be and by rule designates as 30
being the principal compound commonly used, or produced primarily for 31
use, in the manufacture of a controlled substance;32
(b) that is an immediate chemical intermediary used or likely to 33
be used in the manufacture of a controlled substance; and34
(c) the control of which is necessary to prevent, curtail, or 35
limit the manufacture of the controlled substance.36
(29) "Isomer" means an optical isomer, but in subsection (33)(e) 37
of this section, RCW 69.50.204(1) (l) and (hh), and 69.50.206(2)(d), 38
the term includes any geometrical isomer; in RCW 69.50.204(1) (h) and 39
(pp)((,)) and 69.50.210(3)(([,])), the term includes any positional 40
p. 11 HB 2740
isomer; and in RCW 69.50.204(1)(ii), 69.50.204(3), and 69.50.208(1)1
(([,])), the term includes any positional or geometric isomer.2
(30) "Lot" means a definite quantity of cannabis, cannabis 3
concentrates, useable cannabis, or cannabis-infused product 4
identified by a lot number, every portion or package of which is 5
uniform within recognized tolerances for the factors that appear in 6
the labeling. 7
(31) "Lot number" must identify the licensee by business or trade 8
name and Washington state unified business identifier number, and the 9
date of harvest or processing for each lot of cannabis, cannabis 10
concentrates, useable cannabis, or cannabis-infused product.11
(32) "Manufacture" means the production, preparation, 12
propagation, compounding, conversion, or processing of a controlled 13
substance, either directly or indirectly or by extraction from 14
substances of natural origin, or independently by means of chemical 15
synthesis, or by a combination of extraction and chemical synthesis, 16
and includes any packaging or repackaging of the substance or 17
labeling or relabeling of its container. The term does not include 18
the preparation, compounding, packaging, repackaging, labeling, or 19
relabeling of a controlled substance: 20
(a) by a practitioner as an incident to the practitioner's 21
administering or dispensing of a controlled substance in the course 22
of the practitioner's professional practice; or 23
(b) by a practitioner, or by the practitioner's authorized agent 24
under the practitioner's supervision, for the purpose of, or as an 25
incident to, research, teaching, or chemical analysis and not for 26
sale. 27
(33) "Narcotic drug" means any of the following, whether produced 28
directly or indirectly by extraction from substances of vegetable 29
origin, or independently by means of chemical synthesis, or by a 30
combination of extraction and chemical synthesis: 31
(a) Opium, opium derivative, and any derivative of opium or opium 32
derivative, including their salts, isomers, and salts of isomers, 33
whenever the existence of the salts, isomers, and salts of isomers is 34
possible within the specific chemical designation. The term does not 35
include the isoquinoline alkaloids of opium. 36
(b) Synthetic opiate and any derivative of synthetic opiate, 37
including their isomers, esters, ethers, salts, and salts of isomers, 38
esters, and ethers, whenever the existence of the isomers, esters, 39
p. 12 HB 2740
ethers, and salts is possible within the specific chemical 1
designation. 2
(c) Poppy straw and concentrate of poppy straw.3
(d) Coca leaves, except coca leaves and extracts of coca leaves 4
from which cocaine, ecgonine, and derivatives or ecgonine or their 5
salts have been removed. 6
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.7
(f) Cocaine base. 8
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 9
thereof. 10
(h) Any compound, mixture, or preparation containing any quantity 11
of any substance referred to in (a) through (g) of this subsection.12
(34) "Opiate" means any substance having an addiction-forming or 13
addiction-sustaining liability similar to morphine or being capable 14
of conversion into a drug having addiction-forming or addiction-15
sustaining liability. The term includes opium, substances derived 16
from opium (opium derivatives), and synthetic opiates. The term does 17
not include, unless specifically designated as controlled under RCW 18
69.50.201, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan 19
and its salts (dextromethorphan). The term includes the racemic and 20
levorotatory forms of dextromethorphan. 21
(35) "Opium poppy" means the plant of the species Papaver 22
somniferum L., except its seeds. 23
(36) "Package" means a container that has a single unit or group 24
of units. 25
(37) "Person" means individual, corporation, business trust, 26
estate, trust, partnership, association, joint venture, government, 27
governmental subdivision or agency, or any other legal or commercial 28
entity. 29
(38) "Plant" has the meaning provided in RCW 69.51A.010.30
(39) "Poppy straw" means all parts, except the seeds, of the 31
opium poppy, after mowing. 32
(40) "Practitioner" means: 33
(a) A physician under chapter 18.71 RCW; a physician assistant 34
under chapter 18.71A RCW; an osteopathic physician and surgeon under 35
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 36
who is certified by the optometry board under RCW 18.53.010 subject 37
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 38
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 39
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 40
p. 13 HB 2740
registered nurse practitioner, or licensed practical nurse under 1
chapter 18.79 RCW; a naturopathic physician under chapter 18.36A RCW 2
who is licensed under RCW 18.36A.030 subject to any limitations in 3
RCW 18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 4
investigator under this chapter, licensed, registered or otherwise 5
permitted insofar as is consistent with those licensing laws to 6
distribute, dispense, conduct research with respect to or administer 7
a controlled substance in the course of their professional practice 8
or research in this state. 9
(b) A pharmacy, hospital or other institution licensed, 10
registered, or otherwise permitted to distribute, dispense, conduct 11
research with respect to or to administer a controlled substance in 12
the course of professional practice or research in this state.13
(c) A physician licensed to practice medicine and surgery, a 14
physician licensed to practice osteopathic medicine and surgery, a 15
dentist licensed to practice dentistry, a podiatric physician and 16
surgeon licensed to practice podiatric medicine and surgery, a 17
licensed physician assistant or a licensed osteopathic physician 18
assistant specifically approved to prescribe controlled substances by 19
his or her state's medical commission or equivalent and his or her 20
participating physician as defined in RCW 18.71A.010, an advanced 21
registered nurse practitioner licensed to prescribe controlled 22
substances, or a veterinarian licensed to practice veterinary 23
medicine in any state of the United States. 24
(41) "Prescription" means an order for controlled substances 25
issued by a practitioner duly authorized by law or rule in the state 26
of Washington to prescribe controlled substances within the scope of 27
his or her professional practice for a legitimate medical purpose.28
(42) "Production" includes the manufacturing, planting, 29
cultivating, growing, or harvesting of a controlled substance.30
(43) "Qualifying patient" has the meaning provided in RCW 31
69.51A.010. 32
(44) "Recognition card" has the meaning provided in RCW 33
69.51A.010. 34
(45) "Retail outlet" means a location licensed by the board for 35
the retail sale of cannabis concentrates, useable cannabis, and 36
cannabis-infused products. 37
(46) "Secretary" means the secretary of health or the secretary's 38
designee. 39
p. 14 HB 2740
(47) "Social equity plan" means a plan that addresses at least 1
some of the elements outlined in this subsection (47), along with any 2
additional plan components or requirements approved by the board 3
following consultation with the task force created in RCW 69.50.336. 4
The plan may include: 5
(a) A statement that indicates how the cannabis licensee will 6
work to promote social equity goals in their community;7
(b) A description of how the cannabis licensee will meet social 8
equity goals as defined in RCW 69.50.335; 9
(c) The composition of the workforce the licensee has employed or 10
intends to hire; and 11
(d) Business plans involving partnerships or assistance to 12
organizations or residents with connections to populations with a 13
history of high rates of enforcement of cannabis prohibition.14
(48) "State," unless the context otherwise requires, means a 15
state of the United States, the District of Columbia, the 16
Commonwealth of Puerto Rico, or a territory or insular possession 17
subject to the jurisdiction of the United States. 18
(49) "THC concentration" means percent of tetrahydrocannabinol 19
content of any part of the plant Cannabis, or per volume or weight of 20
cannabis product, or the combined percent of tetrahydrocannabinol and 21
tetrahydrocannabinolic acid in any part of the plant Cannabis 22
regardless of moisture content. 23
(50) "Ultimate user" means an individual who lawfully possesses a 24
controlled substance for the individual's own use or for the use of a 25
member of the individual's household or for administering to an 26
animal owned by the individual or by a member of the individual's 27
household. 28
(51) "Unit" means an individual consumable item within a package 29
of one or more consumable items in solid, liquid, gas, or any form 30
intended for human consumption. 31
(52) "Useable cannabis" means dried cannabis flowers. The term 32
"useable cannabis" does not include either cannabis-infused products 33
or cannabis concentrates. 34
(53) "Youth access" means the level of interest persons under the 35
age of ((twenty-one)) 21 may have in a vapor product, as well as the 36
degree to which the product is available or appealing to such 37
persons, and the likelihood of initiation, use, or addiction by 38
adolescents and young adults. 39
p. 15 HB 2740
Sec. 9. RCW 69.50.101 and 2025 c 58 s 5126 are each amended to 1
read as follows: 2
The definitions in this section apply throughout this chapter 3
unless the context clearly requires otherwise. 4
(1) "Administer" means to apply a controlled substance, whether 5
by injection, inhalation, ingestion, or any other means, directly to 6
the body of a patient or research subject by: 7
(a) a practitioner authorized to prescribe (or, by the 8
practitioner's authorized agent); or 9
(b) the patient or research subject at the direction and in the 10
presence of the practitioner. 11
(2) "Agent" means an authorized person who acts on behalf of or 12
at the direction of a manufacturer, distributor, or dispenser. It 13
does not include a common or contract carrier, public 14
warehouseperson, or employee of the carrier or warehouseperson.15
(3) "Board" means the Washington state liquor and cannabis board.16
(4) "Cannabis" means all parts of the plant Cannabis, whether 17
growing or not, with a THC concentration greater than 0.3 percent on 18
a dry weight basis during the growing cycle through harvest and 19
usable cannabis. "Cannabis" does not include hemp or industrial hemp 20
as defined in RCW 15.140.020, or seeds used for licensed hemp 21
production under chapter 15.140 RCW. 22
(5) "Cannabis concentrates" means products consisting wholly or 23
in part of the resin extracted from any part of the plant Cannabis 24
and having a THC concentration greater than ((ten)) 10 percent.25
(6) "Cannabis processor" means a person licensed by the board to 26
process cannabis into cannabis concentrates, useable cannabis, and 27
cannabis-infused products, package and label cannabis concentrates, 28
useable cannabis, and cannabis-infused products for sale in retail 29
outlets, and sell cannabis concentrates, useable cannabis, and 30
cannabis-infused products at wholesale to cannabis retailers.31
(7) "Cannabis producer" means a person licensed by the board to 32
produce and sell cannabis at wholesale to cannabis processors and 33
other cannabis producers. 34
(8)(a) "Cannabis products" means useable cannabis, cannabis 35
concentrates, and cannabis-infused products as defined in this 36
section, including any product intended to be consumed or absorbed 37
inside the body by any means including inhalation, ingestion, or 38
insertion, with ((any detectable amount of THC )) a total THC 39
concentration of more than 0.3 percent on a dry weight basis.40
p. 16 HB 2740
(b) "Cannabis products" also means any product containing only 1
THC content. 2
(c) "Cannabis products" does not include cannabis health and 3
beauty aids as defined in RCW 69.50.575 or products approved by the 4
United States food and drug administration. 5
(9) "Cannabis researcher" means a person licensed by the board to 6
produce, process, and possess cannabis for the purposes of conducting 7
research on cannabis and cannabis-derived drug products.8
(10) "Cannabis retailer" means a person licensed by the board to 9
sell cannabis concentrates, useable cannabis, and cannabis-infused 10
products in a retail outlet. 11
(11) "Cannabis-infused products" means products that contain 12
cannabis or cannabis extracts, are intended for human use, are 13
derived from cannabis as defined in subsection (4) of this section, 14
and have a THC concentration no greater than ((ten)) 10 percent. The 15
term "cannabis-infused products" does not include either useable 16
cannabis or cannabis concentrates. 17
(12) "CBD concentration" has the meaning provided in RCW 18
69.51A.010. 19
(13) "CBD product" means any product containing or consisting of 20
cannabidiol. 21
(14) "Commission" means the pharmacy quality assurance 22
commission. 23
(15) "Controlled substance" means a drug, substance, or immediate 24
precursor included in Schedules I through V as set forth in federal 25
or state laws, or federal or commission rules, but does not include 26
hemp or industrial hemp as defined in RCW 15.140.020.27
(16)(a) "Controlled substance analog" means a substance the 28
chemical structure of which is substantially similar to the chemical 29
structure of a controlled substance in Schedule I or II and:30
(i) that has a stimulant, depressant, or hallucinogenic effect on 31
the central nervous system substantially similar to the stimulant, 32
depressant, or hallucinogenic effect on the central nervous system of 33
a controlled substance included in Schedule I or II; or34
(ii) with respect to a particular individual, that the individual 35
represents or intends to have a stimulant, depressant, or 36
hallucinogenic effect on the central nervous system substantially 37
similar to the stimulant, depressant, or hallucinogenic effect on the 38
central nervous system of a controlled substance included in Schedule 39
I or II. 40
p. 17 HB 2740
(b) The term does not include: 1
(i) a controlled substance; 2
(ii) a substance for which there is an approved new drug 3
application; 4
(iii) a substance with respect to which an exemption is in effect 5
for investigational use by a particular person under Section 505 of 6
the federal food, drug, and cosmetic act, 21 U.S.C. Sec. 355, or 7
chapter 69.77 RCW to the extent conduct with respect to the substance 8
is pursuant to the exemption; or 9
(iv) any substance to the extent not intended for human 10
consumption before an exemption takes effect with respect to the 11
substance. 12
(17) "Deliver" or "delivery" means the actual or constructive 13
transfer from one person to another of a substance, whether or not 14
there is an agency relationship. 15
(18) "Department" means the department of health.16
(19) "Designated provider" has the meaning provided in RCW 17
69.51A.010. 18
(20) "Dispense" means the interpretation of a prescription or 19
order for a controlled substance and, pursuant to that prescription 20
or order, the proper selection, measuring, compounding, labeling, or 21
packaging necessary to prepare that prescription or order for 22
delivery. 23
(21) "Dispenser" means a practitioner who dispenses.24
(22) "Distribute" means to deliver other than by administering or 25
dispensing a controlled substance. 26
(23) "Distributor" means a person who distributes.27
(24) "Drug" means (a) a controlled substance recognized as a drug 28
in the official United States pharmacopoeia/national formulary or the 29
official homeopathic pharmacopoeia of the United States, or any 30
supplement to them; (b) controlled substances intended for use in the 31
diagnosis, cure, mitigation, treatment, or prevention of disease in 32
individuals or animals; (c) controlled substances (other than food) 33
intended to affect the structure or any function of the body of 34
individuals or animals; and (d) controlled substances intended for 35
use as a component of any article specified in (a), (b), or (c) of 36
this subsection. The term does not include devices or their 37
components, parts, or accessories. 38
p. 18 HB 2740
(25) "Drug enforcement administration" means the drug enforcement 1
administration in the United States Department of Justice, or its 2
successor agency. 3
(26) "Electronic communication of prescription information" means 4
the transmission of a prescription or refill authorization for a drug 5
of a practitioner using computer systems. The term does not include a 6
prescription or refill authorization verbally transmitted by 7
telephone nor a facsimile manually signed by the practitioner.8
(27) "Immature plant or clone" means a plant or clone that has no 9
flowers, is less than ((twelve)) 12 inches in height, and is less 10
than ((twelve)) 12 inches in diameter. 11
(28) "Immediate precursor" means a substance: 12
(a) that the commission has found to be and by rule designates as 13
being the principal compound commonly used, or produced primarily for 14
use, in the manufacture of a controlled substance;15
(b) that is an immediate chemical intermediary used or likely to 16
be used in the manufacture of a controlled substance; and17
(c) the control of which is necessary to prevent, curtail, or 18
limit the manufacture of the controlled substance.19
(29) "Isomer" means an optical isomer, but in subsection (33)(e) 20
of this section, RCW 69.50.204(1) (l) and (hh), and 69.50.206(2)(d), 21
the term includes any geometrical isomer; in RCW 69.50.204(1) (h) and 22
(pp) and 69.50.210(3), the term includes any positional isomer; and 23
in RCW 69.50.204(1)(ii), 69.50.204(3), and 69.50.208(1), the term 24
includes any positional or geometric isomer. 25
(30) "Lot" means a definite quantity of cannabis, cannabis 26
concentrates, useable cannabis, or cannabis-infused product 27
identified by a lot number, every portion or package of which is 28
uniform within recognized tolerances for the factors that appear in 29
the labeling. 30
(31) "Lot number" must identify the licensee by business or trade 31
name and Washington state unified business identifier number, and the 32
date of harvest or processing for each lot of cannabis, cannabis 33
concentrates, useable cannabis, or cannabis-infused product.34
(32) "Manufacture" means the production, preparation, 35
propagation, compounding, conversion, or processing of a controlled 36
substance, either directly or indirectly or by extraction from 37
substances of natural origin, or independently by means of chemical 38
synthesis, or by a combination of extraction and chemical synthesis, 39
and includes any packaging or repackaging of the substance or 40
p. 19 HB 2740
labeling or relabeling of its container. The term does not include 1
the preparation, compounding, packaging, repackaging, labeling, or 2
relabeling of a controlled substance: 3
(a) by a practitioner as an incident to the practitioner's 4
administering or dispensing of a controlled substance in the course 5
of the practitioner's professional practice; or 6
(b) by a practitioner, or by the practitioner's authorized agent 7
under the practitioner's supervision, for the purpose of, or as an 8
incident to, research, teaching, or chemical analysis and not for 9
sale. 10
(33) "Narcotic drug" means any of the following, whether produced 11
directly or indirectly by extraction from substances of vegetable 12
origin, or independently by means of chemical synthesis, or by a 13
combination of extraction and chemical synthesis: 14
(a) Opium, opium derivative, and any derivative of opium or opium 15
derivative, including their salts, isomers, and salts of isomers, 16
whenever the existence of the salts, isomers, and salts of isomers is 17
possible within the specific chemical designation. The term does not 18
include the isoquinoline alkaloids of opium. 19
(b) Synthetic opiate and any derivative of synthetic opiate, 20
including their isomers, esters, ethers, salts, and salts of isomers, 21
esters, and ethers, whenever the existence of the isomers, esters, 22
ethers, and salts is possible within the specific chemical 23
designation. 24
(c) Poppy straw and concentrate of poppy straw.25
(d) Coca leaves, except coca leaves and extracts of coca leaves 26
from which cocaine, ecgonine, and derivatives or ecgonine or their 27
salts have been removed. 28
(e) Cocaine, or any salt, isomer, or salt of isomer thereof.29
(f) Cocaine base. 30
(g) Ecgonine, or any derivative, salt, isomer, or salt of isomer 31
thereof. 32
(h) Any compound, mixture, or preparation containing any quantity 33
of any substance referred to in (a) through (g) of this subsection.34
(34) "Opiate" means any substance having an addiction-forming or 35
addiction-sustaining liability similar to morphine or being capable 36
of conversion into a drug having addiction-forming or addiction-37
sustaining liability. The term includes opium, substances derived 38
from opium (opium derivatives), and synthetic opiates. The term does 39
not include, unless specifically designated as controlled under RCW 40
p. 20 HB 2740
69.50.201, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan 1
and its salts (dextromethorphan). The term includes the racemic and 2
levorotatory forms of dextromethorphan. 3
(35) "Opium poppy" means the plant of the species Papaver 4
somniferum L., except its seeds. 5
(36) "Package" means a container that has a single unit or group 6
of units. 7
(37) "Person" means individual, corporation, business trust, 8
estate, trust, partnership, association, joint venture, government, 9
governmental subdivision or agency, or any other legal or commercial 10
entity. 11
(38) "Plant" has the meaning provided in RCW 69.51A.010.12
(39) "Poppy straw" means all parts, except the seeds, of the 13
opium poppy, after mowing. 14
(40) "Practitioner" means: 15
(a) A physician under chapter 18.71 RCW; a physician assistant 16
under chapter 18.71A RCW; an osteopathic physician and surgeon under 17
chapter 18.57 RCW; an optometrist licensed under chapter 18.53 RCW 18
who is certified by the optometry board under RCW 18.53.010 subject 19
to any limitations in RCW 18.53.010; a dentist under chapter 18.32 20
RCW; a podiatric physician and surgeon under chapter 18.22 RCW; a 21
veterinarian under chapter 18.92 RCW; a registered nurse, advanced 22
practice registered nurse, or licensed practical nurse under chapter 23
18.79 RCW; a naturopathic physician under chapter 18.36A RCW who is 24
licensed under RCW 18.36A.030 subject to any limitations in RCW 25
18.36A.040; a pharmacist under chapter 18.64 RCW or a scientific 26
investigator under this chapter, licensed, registered or otherwise 27
permitted insofar as is consistent with those licensing laws to 28
distribute, dispense, conduct research with respect to or administer 29
a controlled substance in the course of their professional practice 30
or research in this state. 31
(b) A pharmacy, hospital or other institution licensed, 32
registered, or otherwise permitted to distribute, dispense, conduct 33
research with respect to or to administer a controlled substance in 34
the course of professional practice or research in this state.35
(c) A physician licensed to practice medicine and surgery, a 36
physician licensed to practice osteopathic medicine and surgery, a 37
dentist licensed to practice dentistry, a podiatric physician and 38
surgeon licensed to practice podiatric medicine and surgery, a 39
licensed physician assistant or a licensed osteopathic physician 40
p. 21 HB 2740
assistant specifically approved to prescribe controlled substances by 1
his or her state's medical commission or equivalent and his or her 2
participating physician as defined in RCW 18.71A.010, an advanced 3
practice registered nurse licensed to prescribe controlled 4
substances, or a veterinarian licensed to practice veterinary 5
medicine in any state of the United States. 6
(41) "Prescription" means an order for controlled substances 7
issued by a practitioner duly authorized by law or rule in the state 8
of Washington to prescribe controlled substances within the scope of 9
his or her professional practice for a legitimate medical purpose.10
(42) "Production" includes the manufacturing, planting, 11
cultivating, growing, or harvesting of a controlled substance.12
(43) "Qualifying patient" has the meaning provided in RCW 13
69.51A.010. 14
(44) "Recognition card" has the meaning provided in RCW 15
69.51A.010. 16
(45) "Retail outlet" means a location licensed by the board for 17
the retail sale of cannabis concentrates, useable cannabis, and 18
cannabis-infused products. 19
(46) "Secretary" means the secretary of health or the secretary's 20
designee. 21
(47) "Social equity plan" means a plan that addresses at least 22
some of the elements outlined in this subsection (47), along with any 23
additional plan components or requirements approved by the board 24
following consultation with the task force created in RCW 69.50.336. 25
The plan may include: 26
(a) A statement that indicates how the cannabis licensee will 27
work to promote social equity goals in their community;28
(b) A description of how the cannabis licensee will meet social 29
equity goals as defined in RCW 69.50.335; 30
(c) The composition of the workforce the licensee has employed or 31
intends to hire; and 32
(d) Business plans involving partnerships or assistance to 33
organizations or residents with connections to populations with a 34
history of high rates of enforcement of cannabis prohibition.35
(48) "State," unless the context otherwise requires, means a 36
state of the United States, the District of Columbia, the 37
Commonwealth of Puerto Rico, or a territory or insular possession 38
subject to the jurisdiction of the United States. 39
p. 22 HB 2740
(49) "THC concentration" means percent of tetrahydrocannabinol 1
content of any part of the plant Cannabis, or per volume or weight of 2
cannabis product, or the combined percent of tetrahydrocannabinol and 3
tetrahydrocannabinolic acid in any part of the plant Cannabis 4
regardless of moisture content. 5
(50) "Ultimate user" means an individual who lawfully possesses a 6
controlled substance for the individual's own use or for the use of a 7
member of the individual's household or for administering to an 8
animal owned by the individual or by a member of the individual's 9
household. 10
(51) "Unit" means an individual consumable item within a package 11
of one or more consumable items in solid, liquid, gas, or any form 12
intended for human consumption. 13
(52) "Useable cannabis" means dried cannabis flowers. The term 14
"useable cannabis" does not include either cannabis-infused products 15
or cannabis concentrates. 16
(53) "Youth access" means the level of interest persons under the 17
age of ((twenty-one)) 21 may have in a vapor product, as well as the 18
degree to which the product is available or appealing to such 19
persons, and the likelihood of initiation, use, or addiction by 20
adolescents and young adults. 21
Sec. 10. 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. 23 HB 2740
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 for sale at wholesale to cannabis 8
processors and cannabis retailers, and to manufacture, package, and 9
label hemp consumables and hemp-derived cannabinoid products, both as 10
defined in RCW 15.140.020 and in accordance with section 4 of this 11
act, regulated by the board and subject to annual renewal. The 12
processing, packaging, possession, delivery, distribution, and sale 13
of cannabis, useable cannabis, cannabis-infused products, and 14
cannabis concentrates in accordance with the provisions of this 15
chapter and chapter 69.51A RCW and the rules adopted to implement and 16
enforce these chapters, by a validly licensed cannabis processor, 17
shall not be a criminal or civil offense under Washington state law. 18
Every cannabis processor's license shall be issued in the name of the 19
applicant, shall specify the location at which the licensee intends 20
to operate, which must be within the state of Washington, and the 21
holder thereof shall not allow any other person to use the license. 22
The application fee for a cannabis processor's license shall be ((two 23
hundred fifty dollars)) $250. The annual fee for issuance and renewal 24
of a cannabis processor's license shall be ((one thousand three 25
hundred eighty-one dollars )) $1,381. A separate license shall be 26
required for each location at which a cannabis processor intends to 27
process cannabis. 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
p. 24 HB 2740
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
p. 25 HB 2740
(B) The board must require license forfeiture on or before 1
twenty-four 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
NEW SECTION. Sec. 11. Section 5 of this act is necessary for 29
the immediate preservation of the public peace, health, or safety, or 30
support of the state government and its existing public institutions, 31
and takes effect immediately.32
NEW SECTION. Sec. 12. (1) Sections 1 through 4, 6 through 8, 33
and 10 of this act take effect July 1, 2026.34
(2) Section 9 of this act takes effect June 30, 2027.35
p. 26 HB 2740
NEW SECTION. Sec. 13. Section 8 of this act expires June 30, 1
2027.2
--- END ---
p. 27 HB 2740