Washington HB 1940: Requiring proof of financial responsibility before the issuance of vehicle registrations.

Bill Text

AN ACT Relating to reducing barriers in Washington's cannabis 1
industry; amending RCW 69.50.325 and 69.50.331; adding a new section 2
to chapter 82.04 RCW; creating new sections; and providing an 3
expiration date.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that Washington 6
state, being one of the first two states in the nation to legalize 7
cannabis for adult use, has a mature cannabis industry that has 8
earned its position as a national leader in industry efficiencies, 9
product and brand development, and longevity of active operations.10
(2) The legislature recognizes that Washington's licensed 11
cannabis industry's tax revenues now provide over two percent of the 12
state's operating budget.13
(3) The legislature also recognizes that when the United States 14
federal government deschedules or reschedules cannabis, interstate 15
commerce for cannabis sales will become inevitable under federal law 16
and Washington's licensed cannabis industry will be forced to compete 17
in national markets.18
(4) The legislature finds that social equity applicants seeking 19
licensure under the cannabis social equity program have discovered 20
that it is desperately difficult or even impossible to find funding 21
H-1287.1
HOUSE BILL 1940
State of Washington 69th Legislature 2025 Regular Session
By Representatives Morgan, Wylie, Reed, Parshley, and Hill
Read first time 02/11/25. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 1940

to open licensed cannabis operations. Restrictions against out-of-1
state investors has effectively blocked these applicants from 2
attracting sufficient investors and has been highlighted as a major 3
barrier to the success of the program.4
(5) The legislature recognizes that Washington's licensed 5
cannabis industry has been restricted by a state residency 6
requirement for licensees, blocking access to investors from other 7
states, thus putting Washington cannabis licensees at a disadvantage 8
compared to licensees in other states, almost none of which have such 9
barriers to investment capital from other states.10
(6) The legislature finds that people from many low-income and 11
minority areas do not have the same access to investment capital to 12
start businesses, thus denying certain demographics from achieving 13
generational wealth.14
(7) The legislature acknowledges that residency requirements for 15
licensing do not exist in any other industry and is in direct 16
conflict with the dormant commerce clause of the United States 17
Constitution.18
(8) The legislature finds that it is urgent and critical to 19
eliminate the state's residency requirement while also providing tax 20
incentives to investors to attract investments for social equity 21
applicants.22
(9) The legislature further finds that granting a time-limited 23
tax exemption from the business and occupations tax for cannabis 24
producers, processors, and retailers licensed through the cannabis 25
social equity program, while these licensees start their businesses 26
in the established market, will reduce the unique barriers these 27
businesses are facing relative to other businesses outside and within 28
the licensed cannabis industry.29
Sec. 2. RCW 69.50.325 and 2022 c 16 s 54 are each amended to 30
read as follows:31
(1) There shall be a cannabis producer's license regulated by the 32
board and subject to annual renewal. The licensee is authorized to 33
produce: (a) Cannabis for sale at wholesale to cannabis processors 34
and other cannabis producers; (b) immature plants or clones and seeds 35
for sale to cooperatives as described under RCW 69.51A.250; and (c) 36
immature plants or clones and seeds for sale to qualifying patients 37
and designated providers as provided under RCW 69.51A.310. The 38
production, possession, delivery, distribution, and sale of cannabis 39
p. 2 HB 1940

in accordance with the provisions of this chapter and the rules 1
adopted to implement and enforce it, by a validly licensed cannabis 2
producer, shall not be a criminal or civil offense under Washington 3
state law. Every cannabis producer's license shall be issued in the 4
name of the applicant, shall specify the location at which the 5
cannabis producer intends to operate, which must be within the state 6
of Washington, and the holder thereof shall not allow any other 7
person to use the license. The application fee for a cannabis 8
producer's license shall be ((two hundred fifty dollars)) $250 plus 9
any additional application or licensing fee required under RCW 10
69.50.331(1). The annual fee for issuance and renewal of a cannabis 11
producer's license shall be ((one thousand three hundred eighty-one 12
dollars)) $1,381. A separate license shall be required for each 13
location at which a cannabis producer intends to produce cannabis.14
(2) There shall be a cannabis processor's license to process, 15
package, and label cannabis concentrates, useable c