The Washington House of Representatives has passed legislation to restrict financial interest agreements among marijuana retail businesses, a move supporters say will curb vertical integration and increase market fairness.
Approved on a 57 to 37 vote, Engrossed Substitute Senate Bill 5403 would bar individuals or entities with ownership in a licensed marijuana retail business from entering into financial agreements that span more than five retail licenses. The bill had already passed the Senate in March with a 41 to 7 vote but now heads back for a concurrence vote due to amendments made in the House.
The bill, sponsored by Senators Rebecca Saldaña (D), Noel Krishnadasan (D), and T’wina Nobles (D), clarifies what constitutes a prohibited financial interest. This includes shared marketing, coordinated purchasing, revenue sharing, or operational control between businesses beyond the license limit.
Under current law, a person or group can hold up to five retail licenses, but some operators have formed indirect agreements to consolidate influence across more than that number. The new provisions are intended to stop this practice, emphasizing that such arrangements violate the spirit of the existing license cap.
If the Senate concurs with the House amendments, the bill will take effect on January 1, 2026. If not, further negotiations could follow. Lawmakers say the changes are necessary to maintain a competitive and diverse marijuana marketplace, especially as the state’s industry matures.
