Concerning the cannabis industry.

HB 1940 removes Washington's requirement that cannabis business owners must be state residents, which has limited investment options for social equity applicants. It creates a temporary tax exemption from the business and occupations tax for social equity cannabis businesses during their startup phase to help overcome funding barriers. The bill amends licensing laws (RCW 69.50.325 and 69.50.331) to eliminate residency restrictions and support low-income and minority entrepreneurs in accessing capital. These changes aim to align Washington's cannabis industry with national market competition and address inequities in business ownership.