Caitlin Ryan addresses committee concerns over House Bill 2037 cannabis ownership changes

House Bill 2037 sparked significant debate during the Washington Legislature's House Finance meeting on March 25, 2025, as stakeholders voiced concerns over its sweeping reforms in the cannabis industry. Caitlin Ryan, Executive Director of the Cannabis Alliance, highlighted the need for further discussion on the bill, which aims to address out-of-state ownership in the cannabis market.

Ryan commended Representative Morgan for facilitating dialogue among industry players but stressed that the bill's timing, close to the policy cutoff, limits thorough stakeholder engagement. "Bundling such sweeping reforms into a single bill makes it difficult to gauge the downstream effects," she noted, urging for careful analysis and input from all parties involved.

Key discussions included the proposed $16.57 license fee increase for out-of-state owners, which would be $267 more than what in-state operators currently pay. This raised questions about the implications for social equity within the industry. Ryan clarified that while out-of-state investment is permitted, ownership remains restricted, which could impact access to capital for local operators.

The bill also proposes changes to the classification of cannabis as an agricultural product, a move supported by many in the farming community. Ryan emphasized that this designation is crucial for the future of cannabis farming in Washington.

As the committee continues to deliberate, the potential for out-of-state ownership to reshape the landscape of Washington's cannabis market remains a focal point, with stakeholders eager for a more inclusive and informed discussion. The outcome of this bill could have lasting implications for both local businesses and the broader cannabis industry in the state.