WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

House Passes Sweeping Improvements to State Recreational Marijuana System

OLYMPIA – Since voters approved limited use of marijuana for health reasons in 1998, Washington has worked to create an adequate system to handle medical use of the drug. By approving recreational use of marijuana with Initiative 502, the state created two competing markets: a regulated recreational market catering to the general populace and the unregulated medical marijuana market, which was overrun by bad actors and abuse of the intent of medical marijuana law. During the regular session, the Legislature passed sweeping reforms to the medical marijuana market. Today, the House of Representatives passed 2E2SHB 2136, legislation that will improve the system set up by I-502 and bring additional changes needed to update the state’s recreational medical market.

Previously the law had 1000 foot buffer zones between establishment of recreational stores and certain locations. In addition, requirements for signs or public notice didn’t adequately address concerns for business owners and communities alike.

2E2SHB 2136 updated the buffer zone to allow discretion for counties and cities to reduce the zone to as much as 100 feet for recreation and childcare centers, public parks or transit centers, libraries and arcades, with a 1000 foot zone remaining in place for schools. The legislation also permits local governments to require a public notice to be posted when a licensee applies, and authorizes two retail signs for businesses to place on their business. The residency requirement to apply for a retail license was also increased from three to six months. Other changes include new licenses for transportation of marijuana; bans the use of marijuana vending machines, marijuana clubs, and drive-throughs; and additional definitions that alter what is considered a marijuana concentrate or infused products.

“By enacting these changes, we’re helping to fulfill the voters’ wishes to have a safe, regulated system that reduces crime and keeps marijuana away from children,” said Rep. Chris Hurst. “Criminal enterprises, which have had near complete control over marijuana sales for decades, are going to come to an end as we make it harder and harder for them to compete with our legal recreational and medical stores. Cities and counties will have the flexibility to help the state compete against the black market and provide consumers the access they expected with I-502.”

In addition, 2E2SHB 2136 reforms the structure set in place by I-502 for how taxes are levied on marijuana retailers, producers, and processors. If approved by the Senate and the governor, the law would eliminate the current three tiered tax system that requires producers, processors, and retailers to each pay a 25 percent tax. Replacing the three tiered system would be a single 37 percent excise tax paid by the buyer at the time of purchase. Also, cities and counties would be eligible to receive a share of the revenue collected to use in local prevention and enforcement programs.