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.
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