Washington House Passes Bill Letting Licensed Marijuana Producers Form Cooperatives
- The Washington House of Representatives approved House Bill 1941, allowing licensed marijuana producers to form agricultural cooperatives, passing the measure 66 to 27 and sending it to the Senate for further consideration.
- The bill, led by State Representative Melanie Morgan, would officially classify marijuana as a farm product for cooperative formation, aligning it with other agricultural commodities without changing existing licensing or regulatory structures.
- Supporters argue the legislation would help smaller marijuana producers manage rising costs and market consolidation by enabling collaboration on processing, marketing, and distribution to reduce expenses and improve competitiveness.
- House Bill 1941 does not affect licensing, retail rules, possession limits, or taxes; it solely clarifies cooperative formation rights for marijuana growers under existing state cooperative laws and will next be reviewed by the Senate Labor and Commerce Committee.
(Photo credit: Getty Images).
The Washington House of Representatives has approved legislation that would allow licensed marijuana producers to form agricultural cooperatives, passing the measure by a 66 to 27 vote and sending it to the Senate for further consideration. House Bill 1941 was previously advanced by the House Committee on Agriculture & Natural Resources before clearing the full chamber this week. The proposal, led by State Representative Melanie Morgan (D), would explicitly authorize licensed marijuana producers to organize and operate as agricultural cooperatives under state law.
If enacted, the bill would treat marijuana as a farm product for the purpose of cooperative formation when produced by state-licensed growers. The change would place marijuana alongside other agricultural commodities already eligible for cooperatives, while leaving Washington’s existing marijuana licensing and regulatory structure unchanged.
Supporters say the measure could provide relief for smaller producers navigating rising operating costs and ongoing market consolidation. By forming cooperatives, licensed growers would be able to collaborate on processing, marketing and distribution, potentially lowering expenses and increasing competitiveness in the state’s regulated marijuana market.
The legislation does not alter licensing requirements, retail rules, possession limits or tax structures. Instead, it focuses specifically on clarifying that licensed marijuana producers may form cooperatives and operate for the mutual benefit of their members, consistent with existing state laws governing agricultural cooperatives, including rules on voting rights and distribution of earnings.
Following House approval, HB 1941 has been assigned to the Senate Labor and Commerce Committee, where it will receive further review as the legislative session continues.