Washington Senate Committee Approves House-Backed Bill to Raise Marijuana License Renewal Fees
- The Senate Ways & Means Committee approved a bill to increase annual licensing fees for Washington’s marijuana businesses, moving it closer to a full Senate vote.
- Engrossed House Bill 2681 proposes raising the annual fee for marijuana producer, processor, and retailer licenses from $1,381 to $1,781, while keeping the application fee at $250.
- The bill maintains existing restrictions limiting an individual or affiliated group to no more than five retail marijuana licenses and prohibits coordinated financial interests across more than five stores.
- It preserves the license forfeiture rules for retailers not operational within required timeframes, allowing up to 24 months before forfeiture, with exceptions for local regulatory barriers.
A bill that would increase annual licensing fees for Washington’s marijuana businesses was approved today by the Senate Ways & Means Committee, moving the measure one step closer to a vote by the full Senate. The proposal, Engrossed House Bill 2681, previously passed the House on February 28 by a vote of 52 to 42. Filed by State Representative Timm Ormsby (D) by request of the Office of Financial Management, the bill would update state law covering licensing fees for marijuana producers, processors and retailers. Under the measure, the application fee for each of those license types would remain $250, while the annual fee for issuance and renewal would be set at $1,781 (up from the current price of $1,381, a nearly 30% increase). The legislation is titled Concerning cannabis license fees, although the bill text itself continues to use the state’s existing licensing structure for businesses involved in producing, processing and selling marijuana.
Although the measure is centered on fees, it also leaves in place key restrictions tied to retail marijuana licenses. That includes the longstanding rule limiting an individual licensee and affiliated ownership interests to no more than five retail marijuana licenses in total. It also continues restrictions on agreements that create a financial interest across more than five stores, including shared profits, coordinated pricing, shared branding, shared marketing efforts and coordinated hiring decisions.
The bill would also preserve Washington’s license forfeiture framework for retailers that fail to open for business within required timeframes. Under the proposal, no retailer license could be forfeited within the first nine months after issuance, but forfeiture would generally be required by 24 months if the business is still not fully operational, unless delays are outside the licensee’s control. The bill specifically says local bans, moratoriums, zoning restrictions and similar local barriers can qualify as valid reasons to avoid forfeiture.
With today’s committee approval, the bill now advances in the Senate. If approved by the full chamber without changes, it would head to Governor Bob Ferguson for consideration.