Modernizing adult use cannabis laws.

HB 2037 removes Washington's state residency requirement for cannabis business owners, allowing out-of-state investors to participate in the industry. It creates time-limited tax exemptions from business and occupation taxes for social equity applicants and businesses transferring ownership under the social equity program. These changes directly affect cannabis producers, processors, and retailers seeking licenses through the social equity program, particularly low-income and minority entrepreneurs who face barriers to securing startup funding. The bill aims to address current investment barriers by aligning Washington's rules with other states and supporting generational wealth creation in underserved communities.