A Washington State House committee has approved legislation that would allow licensed marijuana producers to form agricultural cooperatives, clearing the bill’s first major legislative hurdle and moving it closer to a vote by the full House of Representatives. The vote was 6 to 5.
The measure, House Bill 1941, was approved by the House Committee on Agriculture & Natural Resources during its January 20 meeting. The bill was filed in February 2025 by six Democratic lawmakers and is led by State Representative Melanie Morgan.
If enacted, the legislation would explicitly allow licensed marijuana producers to organize and operate as agricultural cooperatives under state law. The change would place marijuana alongside other agricultural products already eligible for cooperative formation, while leaving the state’s existing marijuana licensing and regulatory framework intact.
Supporters of the bill say cooperative authorization could provide meaningful relief for small and mid-sized producers facing rising costs and consolidation within Washington’s regulated marijuana market. By working together through cooperatives, producers would be able to collaborate on processing, marketing, and distribution, potentially improving efficiency and strengthening their ability to compete.
Under current law, agricultural producers are allowed to form cooperatives, but marijuana has not been clearly defined as an eligible agricultural product for those purposes. House Bill 1941 addresses that gap by amending state statutes to treat marijuana as a farm product when produced by licensed growers, without altering oversight by state regulators.
The bill does not change marijuana licensing fees, possession limits, or retail sales rules. Instead, it focuses narrowly on cooperative authorization, requiring that any marijuana cooperatives operate for the mutual benefit of their members and comply with existing cooperative governance standards, including restrictions on voting power and dividends.
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