This bill amends multiple sections of chapter 69.50 RCW, primarily replacing and expanding the definitions in RCW 69.50.101, and changing statutory treatment of cannabis licensing and taxation. It is a modification of existing law that updates and adds many statutory definitions for cannabis products, licensees, practitioners, lot labeling, social equity plans, and related terms, but several definitions in the provided text are incomplete (for example portions of the "narcotic drug," "controlled substance analog," and "THC concentration" definitions are cut off). The bill establishes a new cannabis excise tax structure in RCW 69.50.535 with specified rates by weight for useable cannabis, prerolls, and cannabis trim and by milligram THC for concentrates and edibles/topicals (useable cannabis/preroll: $2.50/gram for under 7 g, $2.25 for 7–13.9 g, $2.00 for 14–27.9 g, $1.50 for 28 g+; trim: $1.00/gram under 7 g, $0.75 for 7–27.9 g, $0.50 for 28 g+; concentrates: $0.01187 per mg THC; solid edibles and topicals: $0.07427 per mg THC; liquid edibles: $0.04051 per mg THC). The tax is separate from state and local sales taxes, must be separately itemized on receipts and price displays, collected by sellers in trust and remitted to the board, deposited daily into a dedicated cannabis account, and sellers are personally liable if they fail to collect or remit. An exemption applies, until June 30, 2029, for certain medical sales by retailers with a medical endorsement to qualifying patients or designated providers for products tested and identified as compliant under chapter 246-70 WAC; sellers claiming the exemption must maintain proof of eligibility and the board must provide a separate reporting line for exempt amounts. The board is directed to regularly review the tax level and consult the Department of Revenue in making legislative recommendations. The bill also amends RCW 69.50.325 to establish three license types (cannabis producer, processor, retailer), prescribes application and annual renewal fees ($250 application; $1,381 annual issuance/renewal), requires a separate license for each physical location, and requires lot numbers to include the licensee business name, Washington unified business identifier, and date of harvest or processing. It creates a procedural change requiring the board to adopt license forfeiture rules for retailers not fully operational: no forfeiture within the first nine calendar months after issuance, mandatory forfeiture on or before 24 months unless delay is caused by circumstances beyond the licensee’s control, and a prohibition on forfeiture when local government actions (bans, moratoria, zoning or permitting rules) prevent opening. The statutory recognition of product types for tax application (edibles, topicals, trim, flower, prerolls) is expressly not an expansion of licensee authority. Sectional timing provided in the extracted material indicates Sec. 1 expires June 30, 2027, and Sec. 2 takes effect June 30, 2027. Several referenced amendments, cross-references, and portions of the bill text were not included in the extracted facts, so broader context and final effective dates for other sections are unclear from the material provided.

If enacted, consumers will see a separate cannabis excise tax added to retail prices and listed on receipts and shelf/advertised prices: dried cannabis and prerolls are taxed by gram on four weight tiers ($2.50/gram under 7 g down to $1.50/gram for 28 g or more), cannabis trim has lower per-gram tiers ($1.00 to $0.50), and products taxed by THC content include concentrates at $0.01187 per mg THC, solid edibles and topicals at $0.07427 per mg, and liquid edibles at $0.04051 per mg. Sellers must collect that tax from buyers, hold it in trust, remit it to the board, deposit receipts daily into a dedicated cannabis account, separately report and document any medical-patient exemptions (which apply until June 30, 2029 for qualifying, tested products), and follow board rules on price display; failure to collect or remit makes sellers personally liable. The businesses most affected are licensed cannabis producers, processors, and retailers, who will also face a $250 application fee and a $1,381 annual renewal fee for each physical location, new lot-number labeling that must include business name, the Washington state unified business identifier, and harvest/processing date, and requirements around social equity plans subject to board approval. Retail applicants must get operational within protected timelines or risk license forfeiture (no forfeiture in the first nine months; forfeiture required by 24 months unless prevented by local government actions), and the board will periodically review tax levels with the Department of Revenue and may recommend changes. Some definitions and related amendments are missing from the provided text, and Sections 1 and 2 have different effective/expiration dates (Sec. 1 expires June 30, 2027; Sec. 2 takes effect June 30, 2027), so full implementation details and interactions with other provisions remain unclear.