HB 2406 Summary

• Establishes legal framework allowing adults 21+ to possess up to 1 ounce of cannabis, grow up to 5 plants, and transfer cannabis without payment to other adults 21+, while prohibiting seizure or forfeiture of lawfully possessed cannabis.

• Creates registration system for cannabis establishments (cultivation facilities, product manufacturing facilities, testing facilities, and retail stores) administered by the Department of Health Services, with applications processed within 45-90 days.

• Imposes $50 per ounce excise tax on cannabis sales from cultivation facilities to retailers and manufacturers, with excess revenues distributed to education (30%), substance abuse treatment (10%), public health campaigns (10%), and the state general fund (50%).

• Prohibits public cannabis smoking (civil penalty up to $250), requires personal cultivation to be hidden from public view and secure from unauthorized access (civil penalty up to $750), and makes false identification to purchase cannabis a class 1 misdemeanor.

• Requires the Department of Health Services to adopt implementing rules within 180 days addressing registration procedures, fee schedules, security requirements, labeling standards, and age verification, with rules prohibited from making cannabis establishment operations unreasonably impracticable.