Washington’s Senate Labor & Commerce Committee has given approval to a measure that would allow marijuana producers and processors to sell directly to consumers.
Senate Bill 5403 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 those 21 and older, which include up to one ounce of usable marijuana or seven grams of marijuana concentrate, among other restrictions.
The legislation would require direct-to-consumer sales to include the state’s 37% marijuana excise tax, with prices and advertisements clearly reflecting the added cost. The Washington State Liquor and Cannabis Board would have the authority to establish security and operational rules for these sales, but the regulations could not be more stringent than those imposed on retail licensees.
During a recent public hearing, numerous people spoke in favor of the bill, arguing that it would help ensure the vitality of the marijuana industry, help to ensure the profitability of producers and processors, and even the playing field between small and large producers. However, 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 enacted into law, the measure would take effect 90 days after the session’s adjournment.
