S-0682.1
SENATE BILL 5456
State of Washington
69th Legislature
2025 Regular Session
By Senators Stanford, MacEwen, and Nobles
Read first time 01/23/25. Referred to Committee on Labor & Commerce.
AN ACT Relating to removing barriers to the responsible growth of Washington's cannabis industry by removing restrictions on investing in Washington cannabis businesses, modifying which owners must qualify for and be named on a cannabis license, authorizing additional fees, and providing for the suspension of inactive cannabis producer licenses; amending RCW 69.50.325 and 69.50.331 ; creating a new section; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. (1) The legislature finds that restricting investment in Washington's cannabis industry solely to Washington residents has created a significant and unnecessary barrier, one that does not exist in other state-regulated cannabis markets or any other industry nationwide. This restriction prevents cannabis businesses from accessing the standard tools needed for growth and innovation. While current regulations permit lending and financing, direct investment, such as angel investment, venture capital, and equity investment, is a critical mechanism for businesses across all industries to expand, particularly for those lacking personal wealth. Without access to these resources, small businesses are left at a distinct disadvantage compared to larger, well-funded ventures and competitors in other states.
(2) The legislature further finds that this restriction was originally enacted when Washington became the first state to legalize cannabis, as a precaution to avoid potential federal enforcement. However, as cannabis legalization has expanded across the nation, every other state with legal cannabis has adopted regulatory structures without such a residency requirement. To date, no federal action has been taken against these states' systems, underscoring the outdated nature of Washington's restrictive policy.