A public hearing was held today in the Senate Committee on Labor & Commerce for Senate Bill 5403, a measure designed to bolster the sustainability of Washington’s marijuana industry by authorizing direct-to-consumer sales of certain marijuana products.
The bill, introduced on January 21, 2025, is sponsored by State Senators Rebecca Saldaña (D), Deborah Krishnadasan (D), and T’wina Nobles (D).
The legislation would allow licensed marijuana producers and processors to sell marijuana flower directly to consumers, provided the products are limited to those produced by the licensee. These direct sales would need to comply with existing purchase limits for adults 21 and older, which include up to one ounce of usable marijuana or seven grams of marijuana concentrate, among other restrictions.
Under the proposed bill, direct-to-consumer sales would still be subject to the state’s 37% marijuana excise tax, which would need to be clearly reflected in price lists and advertisements. The Washington State Liquor and Cannabis Board would be authorized to adopt rules for security and operational requirements for such sales, although these rules could not exceed the stringency of regulations already applied to retail licensees.
During today’s hearing, numerous people spoke in favor of the bill, arguing that it would help ensure the vitality of the marijuana industry. Speakers included multiple licensed marijuana producers, many arguing that it would help ensure their profitability and even the playing field between small and large producers. However, a few speakers, including a spokesperson for the Cannabis Business Association, spoke in opposition to the measure, stating that it could lead to vertical integration of the state’s marijuana industry.
If passed, the measure would take effect 90 days after the session’s adjournment.
