Washington Bill to Allow Marijuana Producer Cooperatives Advances to Full Senate

A proposal to allow licensed marijuana producers in Washington to form agricultural cooperatives has been moved to the full Senate by the Rules Committee. House Bill 1941 already cleared the Washington House of Representatives earlier this session by a vote of 66 to 27. The measure was introduced by State Representative Melanie Morgan (D) and would explicitly allow state-licensed marijuana producers to organize as agricultural cooperatives under Washington law.

Under the proposal, marijuana produced by licensed growers would be treated as a farm product specifically for the purpose of cooperative formation. That designation would place marijuana alongside other agricultural commodities already eligible for cooperative structures, allowing licensed producers to collectively process, prepare for market, handle and market their products through cooperatives.

If enacted, licensed growers could work together through cooperatives on activities such as processing, marketing and distribution. Supporters say this structure could help smaller producers reduce operational costs and remain competitive in Washington’s regulated marijuana market, which has experienced consolidation and financial pressure in recent years.

The proposal also includes a provision limiting the size of any single cooperative, stating that no association of licensed marijuana producers may represent more than 30% of the total production square footage licensed by the Washington Liquor and Cannabis Board at any given time.

With approval from the Senate Rules Committee, HB 1941 is now eligible for consideration by the full Washington Senate.