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Marijuana Businesses

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Production, Processing, and Retail

Initiative 502

In 2012, Washington State passed Initiative 502 legalizing the production, processing, retail, possession, and consumption of marijuana with the following stipulations.

Individual Possession and Consumption

Persons aged 21 or older are legally allowed to possess and use the following:

  • 1 ounce of usable marijuana
  • 7 grams of marijuana concentrate/extract for inhalation
  • 16 ounces of marijuana infused product
  • 72 ounces of marijuana infused product in liquid form
  • Marijuana-related paraphernalia

Consumption while in view of the general public is illegal.

Driving with a level higher than 5 nanograms of marijuana per milliliter of blood is considered driving under the influence (DUI) and is punishable by law.

It is illegal to transport marijuana purchased in Washington into other states.

Home grown marijuana for recreational use or sale is still illegal.

Business Licenses

There are three different marijuana business licenses that can be applied for with the Washington State Liquor and Cannabis Board at:

Marijuana Producers

  • Producers grown marijuana in either indoor/greenhouse or outdoor facilities. Outdoor facilities must be fully enclosed by a physical barrier at least eight feet high to obscure public view of the premises. Outdoor facilities must also meet security requirements as described in WAC 314-55-083 and TMC 8.04.040.M.
  • There can be up to one and quarter years’ worth of harvest for an outdoor facility and six months’ worth of harvest for an indoor facility on the premises.
  • Producers must hold their product for a mandatory 24 hour quarantine period before transporting it to a processor.

Marijuana Processors

  • Processors process, package, and label usable marijuana and marijuana infused products for wholesale to marijuana retailers.
  • Marijuana products may not be packaged or labeled in a manner that makes them appealing to children and must be in child resistant packaging.
  • There can be up to six months’ worth of usable marijuana and total production.

Marijuana Retailers

  • Retailers sell marijuana, marijuana infused products, and marijuana paraphernalia.
  • Retailers cannot sell over the internet, have a delivery service, or a food truck selling marijuana infused dishes.
  • Marijuana retailers can only sell marijuana products and cannot be incorporated into existing businesses.
  • No one under the age of 21 can enter or be employed by a marijuana retailer.
  • All packages of marijuana on the premises must be closed with the exception of a sample jar with a plastic or metal mesh to allow customers to smell the product before purchasing.
  • Customers cannot consume product in store.
  • There can be up to four months’ worth of average inventory on the premises.

The only licenses that can be mixed are the producer and processor licenses, though they must be applied for separately. Retail must be a separate business.

Taxes on marijuana are state controlled.


Marijuana businesses cannot be within 1000 feet of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library, or game arcade that allows minors to enter. Local authorities will also be notified and have an opportunity to object.

Businesses in these zones must comply with all building, fire safety, health code, business licensing requirements, and any zone specific standards for lot size, setbacks, and lot coverage, as well as signage guidelines as stated in Initiative 502 and Chapter 18.44 of the Tumwater Municipal Code.

Business must also comply with Section 8.04.040.M of the Tumwater Municipal Code by controlling any offensive odors from becoming a nuisance to the public.

Sections 18.21.030 and 18.42.080 state that processors and producers are allowed in the Light Industrial and Airport Related Industry zones. Retailers are allowed in the same zones as processors and producers as well as the Capitol Boulevard Community and General Commercial zones. 

Further Questions?

For zoning or municipal code questions, contact the Community Development Department at: 

Phone: ; (360) 754-4180


For regulatory or licensing questions, check with the Washington State Liquor and Cannabis Board at:


Contact info: