FINAL BILL REPORT

SB 5130

C 316 L 17

Synopsis as Enacted

Brief Description: Increasing marijuana license fees and adding a temporary additional fee on marijuana licenses issued by the Washington state liquor and cannabis board.

Sponsors: Senators Rivers, Conway and Chase; by request of Liquor and Cannabis Board.

Senate Committee on Commerce, Labor & Sports

House Committee on Commerce & Gaming

Background: The LCB has the authority to license and regulate marijuana businesses in Washington State. The LCB issues licenses to marijuana producers, processors, retailers, and researchers. The fee for each license is set in statute at $1,000 for both the original application and each annual renewal, with the exception of the application fee for the research license which is set at $250.

All marijuana licensees are required to electronically track marijuana from seed to sale. This includes the tracking of all marijuana seedlings, clones, plants, lots of usable marijuana or trim, leaves, and other plant matter, batches of extracts, marijuana-infused products, samples, and marijuana waste. These items must be traceable from production through processing, and through the retail stores. The licensees are required to provide the tracking information on a system as specified by the LCB.

Summary: Effective July 1, 2018, the licensing application and renewal fees for marijuana producers, processors, retailers, and researchers are raised to $1,300.

A one-time nonrefundable additional fee of $480 is imposed on all marijuana license applications and modifications. The fee applies to new license applications and modifications received after the effective date of this act and all license renewals for licenses expiring on or after June 30, 2017. The one-time fee expires on June 30, 2018. The LCB is required to use the revenue from this fee to replace the LCB's current electronic traceability system.

Votes on Final Passage: