AN ACT Relating to the suspension of inactive cannabis producer licenses;
Bill Description
Concerning the suspension of inactive cannabis producer licenses.
What this bill does Powered by Legitron
This bill amends RCW 69.50.331 and adds a new legislative findings section. It directs the licensing board (name not specified in the provided text) to suspend any cannabis producer license that had no reported business activity between July 1, 2023, and December 31, 2024, until interstate or federal authorization (including a DOJ opinion) allows interstate transfer of cannabis. It expands and clarifies licensing procedures and grounds for denial or nonrenewal (including criminal history, public safety administrative violations, and documented "chronic illegal activity"), authorizes criminal history checks including FBI checks with fingerprinting, permits delegation to staff to approve uncontested licenses, allows suspension or cancellation of licenses with attendant loss of licensee protections, requires immediate suspension for DSHS certification of child support noncompliance, requires surrendered licenses and notice to other licensees upon suspension/cancellation, prohibits employing persons under 21, and requires licenses to display conditions and other identifying information.
The bill also modifies location and local-authority procedures. It bars issuance within 1,000 feet of specified facilities (schools, playgrounds, parks, transit centers, libraries, certain arcades) but allows a city, county, or town by ordinance to reduce that buffer to no less than 100 feet for most listed facilities (not for elementary/secondary schools or playgrounds). For research licenses located within 100–1,000 feet under such an ordinance, the board must ensure enhanced security, inaccessibility to the public, and no advertising or signage, and may issue a certificate of compliance if those conditions were met at the time of application. The board may not issue a license within Indian country without the affiliated federally recognized tribe’s consent. Local governments may adopt ordinances limiting operations in residential or small-lot rural zones, and the board must give substantial weight to local objections based on chronic illegal activity; a preexisting local outlet-density ordinance can block issuance of a new retail license if timely objected to. The bill also encourages voluntary submission of a social equity plan and requires a one-time reimbursement of a licensee’s annual renewal fee if the board confirms submission (subject to limits).
The provided text is incomplete in parts: the identity of "the board" is not specified in the extracted material, subsection (8)(d) and subsequent provisions are truncated, certain earlier subsections referenced for the certificate-of-compliance tests are missing, and details such as how distances are measured, what a social equity plan must include, and the amount of the renewal fee are not included in the extracts.
Why it matters Powered by Legitron
If enacted, the bill would force cannabis producers whose licenses showed no reported business activity between July 1, 2023 and December 31, 2024 to have their producer licenses suspended until either federal law allows interstate transfer of cannabis or the U.S. Department of Justice issues a memo tolerating interstate transfers. Affected producers would have to turn in their licenses, lose the state protections that come with being licensed while suspended, and be cut off from deliveries to their premises; the board would notify other local licensees when a suspension occurs. Reissuance would happen automatically once the federal trigger occurs if other reinstatement conditions are met, so many inactive license holders would likely be sidelined for an uncertain period, reducing the number of active producers in the market.
The bill also increases regulatory checks and local control: the board (unspecified in the text) would be able to run criminal background checks including FBI fingerprints, give substantial weight to local objections based on chronic illegal activity, and require stricter security and no signage for research facilities allowed closer than 1,000 feet to schools or playgrounds under local ordinance. Cities and counties could limit locations or ban producers/processors in certain residential or small-lot rural zones, and tribes must consent to licensing in Indian country. There is a one-time reimbursement of a licensee’s annual renewal fee if a non–social equity licensee voluntarily files a social equity plan after January 1, 2024. Important details are missing from the provided text—most notably the board’s formal identity, some cut-off subsections that may alter distance and other rules, and the exact fee amounts—so some implementation effects remain unclear.