The Washington Legislature delivered two cannabis-related measures to Governor Bob Ferguson today.
Washington State’s Capitol Building.
Senate Bill 5403 was given approval by the Senate in a 39 to 9 vote earlier this month, and it passed the House 57 to 37. Today, the measure was officially delivered to Governor Ferguson. Also sent to Governor Ferguson is Senate Bill 5206, which passed the House 72 to 23, and the Senate 39 to 9.
SB 5403 caps the number of cannabis retail licenses any individual or group of related investors can control at five. It also blocks management or branding agreements that effectively link separate retailers under shared ownership, branding or profit-sharing arrangements.
Under the legislation, “financial interest” is broadly defined to include shared profits, coordinated purchasing, common intellectual property and joint marketing efforts. The Washington State Liquor and Cannabis Board would be required to enforce the cap and could order forfeiture of a license if a retailer tries to skirt the limit.
The measure applies retroactively to existing agreements and prospectively to any contracts signed or renewed on or after its January 1, 2026 effective date, giving current operators time to unwind partnerships that exceed the new threshold.
SB 5206 would modify existing rules on marijuana signage and advertising, expanding the number of allowable signs on a retailer’s building from two to four. Signs smaller than 512 square inches would be excluded from this limit.
The proposal also clarifies rules around window signs, trade name signage, and the size and content of advertisements. Notably, it prohibits ads from depicting cannabis products, using mascots, referencing motor vehicles, or displaying transit ads such as those at bus stops or train stations.
The legislation provides specific definitions for “commercial mascot” and “transit advertisements”. A commercial mascot would be defined as any live person, animal, or mechanical device—such as inflatable tube displays or individuals in costume—used to draw attention to a marijuana business or its products. These mascots would be prohibited from being used outside or near a licensed cannabis retailer. “Transit advertisements” are defined as any ads placed on or within public or private vehicles, as well as locations like bus stops, taxi stands, and train stations. These forms of advertising would also be banned under the bill.
Ferguson has 20 days to sign, veto or allow the bills to become law without his signature.
