A bill filed today in the Washington State House of Representatives would significantly reshape the state’s marijuana production landscape by tying license size directly to sales performance, a move sponsors say is intended to curb chronic oversupply in the legal market.
Filed today by State Reps. Kristine Reeves (D) and Melanie Morgan (D), the legislation would require larger marijuana producers to meet minimum revenue thresholds in order to keep their current production tier. Producers that fail to do so would be required to scale back their licensed canopy size at the time of renewal.
Under the bill, Tier 3 producers — those allowed to grow marijuana in up to 30,000 square feet — would need to show at least $24,000 in gross monthly sales, or $288,000 annually, averaged over the two years prior to license renewal. If they fail to meet that benchmark, their license would automatically be converted to a Tier 2 license, limiting them to a maximum of 10,000 square feet of production space.
Tier 2 producers would face a similar requirement, needing to demonstrate at least $8,000 per month or $96,000 per year in gross sales over the same two-year period. Falling short would result in a downgrade to Tier 1 status, capping production at 4,000 square feet. Tier 1 producers would not be subject to any sales thresholds under the proposal.
The bill would also give the Washington State Liquor and Cannabis Board discretion to grant a one-year exemption from these requirements if a producer can show extenuating circumstances, such as natural disasters or other events beyond their control, as long as the request is made shortly after license renewal.
If enacted, the measure would mark one of the most direct attempts yet by lawmakers to address persistent oversupply in Washington’s marijuana market by shrinking production capacity through mandatory downsizing rather than license revocations or new caps.
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