Currently Washington State prohibits vertical integration in the marijuana industry. As a result, marijuana producer and processor licensees are prohibited from holding a retail marijuana license and vice versa.
Two new bills recently introduced in the Washington State legislature, however, would undo this prohibition. HB 1945 and HB 1995 would each allow licensed marijuana producers and processors to sell directly to consumers. Both bills require the marijuana producer or processor licensee to do the following:
- Obtain a direct sales endorsement
- Limit sales to the marijuana producer’s marijuana crop and marijuana products created from their crop, or marijuana products produced by the processor
- Ensure that any direct sale of usable marijuana is at least 3.5 grams (there is no minimum sales quantity for concentrates or infused products)