A bill that overhauls the state cannabis revenue account means millions in additional money for cities.
SB 5796 provides increased investments to the state cannabis revenue account. Cities and counties will share 5% of state cannabis tax revenues once a list of other financial obligations are met. This formula is a welcome change for local
governments. Under this new formula, cities and counties would share around $25 million in Fiscal Year 2023. Cities are only eligible to receive funds if they do not prohibit the siting of any state-licensed cannabis producer, processor, or retailer.
Based on the formula, cities receive a greater share if they have licensed marijuana retailers physically located within their jurisdiction.
After cannabis was legalized in Washington, many minorities were left behind in the rush to obtain licenses. Several bills were introduced in 2022 with an eye towards addressing these inequities.
HB 1827 would have created the Community Reinvestment Account with the state treasurer. Monies from the account would have been used to address goals such as greater economic development, which includes addressing wealth disparities to
promote asset building, such as home ownership, and expanding access to financial resources including, but not limited to, grants and loans for small businesses and entrepreneurs, financial literacy training, and other small business training and
support activities. Additionally, the bill would have required the Department of Commerce to create a Community Reinvestment Plan to guide distribution of funds from the account. However, HB 1827 failed to pass out of the Senate in
time.
Finally, HB 2022 would have expanded social equity cannabis licenses in Washington by requiring the Liquor & Cannabis Board (LCB) to issue 63 new social equity cannabis licenses beginning in 2022 and each calendar year through 2029.
These new social equity licenses would have included 38 new cannabis retailer licenses to applicants who qualify as social equity applicants and 25 new producer and/or processor licenses.
As originally drafted, licenses issued under the social equity program were mobile and available for premises located within any city, town, or county in the state that permits cannabis business activity at the proposed location. While HB 2022 received several amendments that addressed many of the concerns for cities, the bill ultimately failed to pass the Legislature.
Bill # | Description | Status |
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SB 5796 | Restructures state cannabis revenue appropriations including providing cities with additional funds. | Law; effective June 9, 2022. |
HB 1827/ SB 5706 | Creates the community reinvestment account and the community reinvestment program. | Did not pass – incorporated into the budget. |
HB 2022 | Expands the social equity licensing program. | Did not pass. |