wa-law.org > bill > 2025-26 > HB 2504 > Original Bill

HB 2504 - Interstate cannabis market

Source

Section 1

  1. Upon the occurrence of a legal interstate cannabis market, prior to sale at retail, any cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates sold into or brought into Washington from another state, country, or other jurisdiction must:

    1. Be distributed through a cannabis processor licensed by the board under RCW 69.50.325; and

    2. Undergo quality assurance and product testing as required under RCW 69.50.348 by an independent, third-party testing laboratory accredited by the state department of agriculture.

  2. For purposes of this section, and RCW 69.50.325(2) and 69.50.348(1)(c), a legal interstate cannabis market is deemed to occur if federal law is amended to allow for the interstate transfer of cannabis between authorized cannabis-related businesses or the United States department of justice issues an opinion or memorandum allowing or tolerating the interstate transfer of cannabis between authorized cannabis-related businesses.

  3. Nothing in this section is intended to authorize the purchase or receipt of cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates from a source in another state, country, or jurisdiction before:

    1. Changes in federal law or policy to allow for the interstate transfer of cannabis between authorized cannabis-related businesses as described in subsection (2) of this section; and

    2. The board authorizing licensed cannabis processors to purchase and receive cannabis, useable cannabis, cannabis-infused products, and cannabis concentrates from persons legally authorized by another state, country, or jurisdiction to produce, process, or sell the cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates.

  4. As provided in RCW 69.50.401, cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates may not be sold or delivered to a consumer by mail or shipment.

Section 2

  1. There shall be a cannabis producer's license regulated by the board and subject to annual renewal. The licensee is authorized to produce: (a) Cannabis for sale at wholesale to cannabis processors and other cannabis producers; (b) immature plants or clones and seeds for sale to cooperatives as described under RCW 69.51A.250; and (c) immature plants or clones and seeds for sale to qualifying patients and designated providers as provided under RCW 69.51A.310. The production, possession, delivery, distribution, and sale of cannabis in accordance with the provisions of this chapter and the rules adopted to implement and enforce it, by a validly licensed cannabis producer, shall not be a criminal or civil offense under Washington state law. Every cannabis producer's license shall be issued in the name of the applicant, shall specify the location at which the cannabis producer intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a cannabis producer's license shall be $250. The annual fee for issuance and renewal of a cannabis producer's license shall be $1,381. A separate license shall be required for each location at which a cannabis producer intends to produce cannabis.

  2. There shall be a cannabis processor's license to process, package, and label cannabis concentrates, useable cannabis, and cannabis-infused products for sale at wholesale to cannabis processors and cannabis retailers, regulated by the board and subject to annual renewal. The processing, packaging, possession, delivery, distribution, and sale of cannabis, useable cannabis, cannabis-infused products, and cannabis concentrates in accordance with the provisions of this chapter and chapter 69.51A RCW and the rules adopted to implement and enforce these chapters, by a validly licensed cannabis processor, shall not be a criminal or civil offense under Washington state law. Every cannabis processor's license shall be issued in the name of the applicant, shall specify the location at which the licensee intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a cannabis processor's license shall be $250. The annual fee for issuance and renewal of a cannabis processor's license shall be $1,381. A separate license shall be required for each location at which a cannabis processor intends to process cannabis. Upon the occurrence of a legal interstate cannabis market and authorization from the board, cannabis processors may purchase and receive cannabis, useable cannabis, cannabis-infused products, and cannabis concentrates from persons legally authorized by another state, country, or jurisdiction to produce, process, or sell the cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates.

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    1. There shall be a cannabis retailer's license to sell cannabis concentrates, useable cannabis, and cannabis-infused products at retail in retail outlets, regulated by the board and subject to annual renewal. The possession, delivery, distribution, and sale of cannabis concentrates, useable cannabis, and cannabis-infused products in accordance with the provisions of this chapter and the rules adopted to implement and enforce it, by a validly licensed cannabis retailer, shall not be a criminal or civil offense under Washington state law. Every cannabis retailer's license shall be issued in the name of the applicant, shall specify the location of the retail outlet the licensee intends to operate, which must be within the state of Washington, and the holder thereof shall not allow any other person to use the license. The application fee for a cannabis retailer's license shall be $250. The annual fee for issuance and renewal of a cannabis retailer's license shall be $1,381. A separate license shall be required for each location at which a cannabis retailer intends to sell cannabis concentrates, useable cannabis, and cannabis-infused products.

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      1. An individual retail licensee and all other persons or entities with a financial or other ownership interest in the business operating under the license are limited, in the aggregate, to holding a collective total of not more than five retail cannabis licenses.

      2. A retail licensee and all other persons or entities with a financial or other ownership interest may not enter into any management agreement under RCW 69.50.331(1)(b)(iv) or any agreement as referenced in RCW 69.50.395, whether or not in exchange for payment, that confers a financial interest across more than five retail cannabis licenses. For the purposes of this subsection, "financial interest" includes, but is not limited to:

(A) Any sharing of profits or revenue;

(B) Any assistance, coordination, or recommendation for the purchase of cannabis products whereupon pricing is coordinated or discounted;

(C) The common use of intellectual property assets such as branding, trade names, logos, social media accounts, or websites;

(D) Any operational control over the business or operational support for typical day-to-day business operations, including core business or executive functions of the retail cannabis license;

(E) Any sharing or coordination of marketing and advertising efforts or expenses; and

(F) Any coordinated sharing of employment or hiring decisions, including the shared employment of individuals.

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    i. A cannabis retailer's license is subject to forfeiture in accordance with rules adopted by the board pursuant to this section.

    ii. The board shall adopt rules to establish a license forfeiture process for a licensed cannabis retailer that is not fully operational and open to the public within a specified period from the date of license issuance, as established by the board, subject to the following restrictions:

(A) No cannabis retailer's license may be subject to forfeiture within the first nine months of license issuance; and

(B) The board must require license forfeiture on or before 24 calendar months of license issuance if a cannabis retailer is not fully operational and open to the public, unless the board determines that circumstances out of the licensee's control are preventing the licensee from becoming fully operational and that, in the board's discretion, the circumstances warrant extending the forfeiture period beyond 24 calendar months.

    iii. The board has discretion in adopting rules under this subsection (3)(c).

    iv. This subsection (3)(c) applies to cannabis retailer's licenses issued before and after July 23, 2017. However, no license of a cannabis retailer that otherwise meets the conditions for license forfeiture established pursuant to this subsection (3)(c) may be subject to forfeiture within the first nine calendar months of July 23, 2017.

v. The board may not require license forfeiture if the licensee has been incapable of opening a fully operational retail cannabis business due to actions by the city, town, or county with jurisdiction over the licensee that include any of the following:

(A) The adoption of a ban or moratorium that prohibits the opening of a retail cannabis business; or

(B) The adoption of an ordinance or regulation related to zoning, business licensing, land use, or other regulatory measure that has the effect of preventing a licensee from receiving an occupancy permit from the jurisdiction or which otherwise prevents a licensed cannabis retailer from becoming operational.

d. The board may issue cannabis retailer licenses pursuant to this chapter and RCW 69.50.335.

Section 3

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    1. On a schedule determined by the board, every licensed cannabis producer and processor must submit representative samples of cannabis, useable cannabis, or cannabis-infused products produced or processed by the licensee to an independent, third-party testing laboratory meeting the accreditation requirements established by the state department of agriculture.

    2. The purpose of testing representative samples is to certify compliance with quality assurance and product standards adopted by the board under RCW 69.50.342 or the department of health under RCW 69.50.375. In conducting tests of cannabis product samples, testing laboratories must adhere to laboratory quality standards adopted by the state department of agriculture under chapter 15.150 RCW. Any sample remaining after testing shall be destroyed by the laboratory or returned to the licensee submitting the sample.

    3. Upon the occurrence of a legal interstate cannabis market as defined in section 1 of this act, on a schedule determined by the board, any cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates produced or processed outside of Washington that are sold or distributed into Washington are subject to the same quality assurance and product testing standards as required under this chapter for cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates produced or processed in Washington. Representative samples of cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates from outside Washington must be tested by an independent, third-party testing laboratory accredited by the state department of agriculture, before sale at retail in Washington.

  2. Independent, third-party testing laboratories performing cannabis product testing under subsection (1) of this section must obtain and maintain accreditation.

  3. Licensees must submit the results of inspection and testing for quality assurance and product standards required under RCW 69.50.342 to the board on a form developed by the board.

  4. If a representative sample inspected and tested under this section does not meet the applicable quality assurance and product standards established by the board then, except as otherwise provided by the board in rule, the entire lot from which the sample was taken must be destroyed.

  5. The department of agriculture may determine, assess, and collect annual fees to support the direct and indirect costs of implementing a state cannabis product testing laboratory accreditation program and laboratory quality standards program, except for the initial program development costs. The department of agriculture may establish a payment schedule requiring periodic installments of the annual fee. The department of agriculture must review and update its fee schedule biennially. The costs of cannabis product testing laboratory accreditation are those incurred by the department of agriculture in administering and enforcing the accreditation program. The costs may include, but are not limited to, the costs incurred in undertaking the following accreditation functions:

    1. Evaluating the protocols and procedures used by a laboratory;

    2. Performing on-site audits;

    3. Evaluating participation and successful completion of proficiency testing;

    4. Determining the capability of a laboratory to produce accurate and reliable test results; and

    5. Such other accreditation activities as the department of agriculture deems appropriate.

  6. The department of agriculture and the interagency coordination team created in RCW 15.150.020 must act cooperatively to ensure effective implementation and administration of this section.

  7. All fees collected under this section must be deposited in the dedicated cannabis account created in RCW 69.50.530.

Section 4

  1. Subject to section 1 of this act, the governor may enter into an agreement with another state or states for the purposes of:

    1. Cross-jurisdictional coordination and enforcement of cannabis-related businesses authorized to conduct business in this state, the other state, or both; and

    2. Cross-jurisdictional delivery of cannabis between this state and the other state.

  2. An agreement entered into under this section must ensure:

    1. Enforceable public health and safety standards are met and include a system to regulate and track the interstate delivery of cannabis;

    2. Any cannabis delivered into this state, prior to sale to a consumer, is:

      1. Tested in accordance with rules adopted by the department of agriculture under RCW 15.125.020, by the department of health under RCW 69.50.375, and by the liquor and cannabis board under RCW 69.50.342, 69.50.345, and 69.50.348;

      2. Packaged and labeled in accordance with RCW 69.50.346 and rules adopted by the liquor and cannabis board under RCW 69.50.342 and 69.50.345; and

    3. Applicable taxes on the sale, delivery, and receipt of cannabis are collected.

  3. In accordance with an agreement entered into under this section:

    1. A cannabis producer, cannabis processor, cannabis researcher, or cannabis retailer licensed under chapter 69.50 RCW may deliver cannabis to a person located in, and authorized to receive cannabis by, the other state.

    2. A cannabis processoror cannabis researcher licensed under chapter 69.50 RCW may receive cannabis from a person located in, and authorized to export cannabis by, the other state.

  4. For the purposes of this section, "cannabis," "cannabis processor," "cannabis producer," "cannabis researcher," "cannabis retailer," and "person" have the meanings provided in RCW 69.50.101.

Section 5

  1. Except as authorized by this chapter, it is unlawful for any person to manufacture, deliver, or possess with intent to manufacture or deliver, a controlled substance.

  2. Any person who violates this section with respect to:

    1. A controlled substance classified in Schedule I or II which is a narcotic drug or flunitrazepam, including its salts, isomers, and salts of isomers, classified in Schedule IV, is guilty of a class B felony and upon conviction may be imprisoned for not more than ten years, or (i) fined not more than twenty-five thousand dollars if the crime involved less than two kilograms of the drug, or both such imprisonment and fine; or (ii) if the crime involved two or more kilograms of the drug, then fined not more than one hundred thousand dollars for the first two kilograms and not more than fifty dollars for each gram in excess of two kilograms, or both such imprisonment and fine;

    2. Amphetamine, including its salts, isomers, and salts of isomers, or methamphetamine, including its salts, isomers, and salts of isomers, is guilty of a class B felony and upon conviction may be imprisoned for not more than ten years, or (i) fined not more than twenty-five thousand dollars if the crime involved less than two kilograms of the drug, or both such imprisonment and fine; or (ii) if the crime involved two or more kilograms of the drug, then fined not more than one hundred thousand dollars for the first two kilograms and not more than fifty dollars for each gram in excess of two kilograms, or both such imprisonment and fine. Three thousand dollars of the fine may not be suspended. As collected, the first three thousand dollars of the fine must be deposited with the law enforcement agency having responsibility for cleanup of laboratories, sites, or substances used in the manufacture of the methamphetamine, including its salts, isomers, and salts of isomers. The fine moneys deposited with that law enforcement agency must be used for such clean-up cost;

    3. Any other controlled substance classified in Schedule I, II, or III, is guilty of a class C felony punishable according to chapter 9A.20 RCW, except as provided in RCW 69.50.475;

    4. A substance classified in Schedule IV, except flunitrazepam, including its salts, isomers, and salts of isomers, is guilty of a class C felony punishable according to chapter 9A.20 RCW; or

    5. A substance classified in Schedule V, is guilty of a class C felony punishable according to chapter 9A.20 RCW.

  3. (a) Except as provided in subsection (b) of this section, the production, manufacture, processing, packaging, delivery, distribution, sale, or possession of cannabis in compliance with the terms set forth in RCW 69.50.360, 69.50.363, or 69.50.366 shall not constitute a violation of this section, this chapter, or any other provision of Washington state law.

    1. A person who sells or delivers cannabis, useable cannabis, cannabis-infused products, or cannabis concentrates to a consumer by mail or shipment is in violation of this section and is guilty of a class C felony punishable under chapter 9A.20 RCW.
  4. The fines in this section apply to adult offenders only.

Section 6

(1) This act takes RCW 43.06.495 and section 1 of this act take effect on the earlier of the date on which:


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