SB 5403 Washington Senate · 2025-2026 Regular Session

Allowing direct to consumer sales of certain cannabis products.

Senate Bill 5403, effective January 1, 2026, amends regulations for licensed cannabis retailers in Washington state. The bill limits any individual or entity, including those with financial interests, to holding a collective total of not more than five retail cannabis licenses. It also requires the board to establish rules for the forfeiture of a cannabis retailer's license if the business is not fully operational and open to the public within a specified period, generally within 24 months of license issuance. These provisions aim to regulate ownership and operational status within the cannabis retail sector.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

Apr 2025

House Passage

Apr 2025

Signed into Law

May 2025

Introduced Jan 21, 2025 Signed May 12, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

Engrossed Substitute Bill → Substitute Passed Legislature · 4 edits

MODERATE

The bill was amended to expand the definition of prohibited financial interests for cannabis retailers, explicitly banning management agreements that create cross-license ownership beyond five licenses. It also clarified that the new restrictions apply retroactively to agreements entered before the effective date, ensuring immediate compliance for existing arrangements.

Scope change

The scope of prohibited agreements was broadened to include management agreements under RCW 69.50.331(1)(b)(iv) in addition to previously referenced agreements, and the applicability was extended retroactively to pre-existing contracts.

REQUIREMENT

Added explicit prohibition on management agreements that confer financial interests across more than five retail cannabis licenses.

Expanded the list of prohibited financial interests to include specific examples like shared intellectual property, operational support, and coordinated marketing efforts.

TIMELINE

Changed the effective date provision to apply retroactively to agreements entered before January 1, 2026, while remaining prospective for new agreements.

TECHNICAL

Added a new section (Sec. 3) reiterating the January 1, 2026 effective date alongside the retroactive application clause.

Floor votes · Senate Mar 12, 2025 · House Apr 11, 2025

How they voted

43–7

Passed · 1 other

Total votes 51

Mar 12, 2025

D Democratic31

29 Yea 1 Nay 1

93% Yea

R Republican20

14 Yea 6 Nay

70% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 12, 2025

Signed into law

Governor signed.

executive

Apr 22, 2025

Lower · Passed

Speaker signed.

lower

Apr 19, 2025

Upper · Passed

President signed.

upper

Apr 18, 2025

Upper · Passed

Passed final passage; yeas, 39; nays, 9; absent, 0; excused, 1.

upper

Apr 18, 2025

Upper · Passed

Senate concurred in House amendments.

upper

Apr 11, 2025

Lower · Passed

Committee amendment(s) adopted as amended.

lower

Apr 11, 2025

House · Passed

House Vote: pass (58-38-4)

house

Apr 2, 2025

Committee

Referred to Rules 2 Review.

lower

Apr 1, 2025

Lower · Passed

Minority; without recommendation.

lower

Apr 1, 2025

Lower · Passed

CPB - Majority; do pass with amendment(s).

lower

Apr 1, 2025

Lower · Passed

Executive action taken in the House Committee on Consumer Protection & Business at 1:30 PM.

lower

Mar 26, 2025

Lower · Passed

Public hearing in the House Committee on Consumer Protection & Business at 1:30 PM.

lower

Mar 12, 2025

Upper · Passed

Floor amendment(s) adopted.

upper

Feb 21, 2025

Upper · Passed

Minority; without recommendation.

upper

Feb 21, 2025

Upper · Passed

Minority; do not pass.

upper

Feb 21, 2025

Upper · Passed

Executive action taken in the Senate Committee on Labor & Commerce at 8:00 AM.

upper

Jan 27, 2025

Upper · Passed

Public hearing in the Senate Committee on Labor & Commerce at 10:30 AM.

upper

1 primary · 2 co-sponsors