The Washington State Legislature has passed a series of bills that will significantly impact alcohol and cannabis licensees, compliance trainers, and hospitality operators. Most of these new laws take effect on July 27, 2025, with additional provisions beginning in January 2026.
The Liquor and Cannabis Board (LCB) has released official summaries of these bills, available through their GovDelivery announcement and on the LCB’s Legislative Fact Sheets page. These fact sheets are a valuable resource for trainers and businesses who need to stay on top of compliance requirements.
As the National Association of Hospitality Compliance Trainers (NAHCT), our goal is to provide members with clear, actionable insights on what these changes mean and how they may affect training requirements, compliance obligations, and industry practices.
Below is a breakdown of the most important updates.
Cannabis Excise Tax Verification (HB 1341)
Effective: July 27, 2025
This bill modifies the medical cannabis authorization database to allow the Liquor and Cannabis Board (LCB) to access information for verifying excise tax exemptions. Previously, only the Department of Revenue (DOR) had this authority. Now, both agencies will be able to confirm whether sales tax exemptions are valid for registered medical cannabis patients.
What it means:
- Cannabis retailers will see closer oversight to ensure excise tax exemptions are applied correctly.
- Compliance trainers should emphasize the expanded verification process when training retail staff who handle medical cannabis sales.
Alcohol Service in Public Spaces (HB 1515)
Effective: July 27, 2025
This wide-reaching bill modernizes alcohol service regulations, particularly for outdoor and extended service areas. It establishes requirements for fencing/barriers, openings, staffing, and food service in public or shared service spaces. It also creates new privileges for outdoor service expansions in cities, counties, and ports, including special allowances for major events such as the 2026 FIFA World Cup.
What it means:
- Local jurisdictions and licensees must coordinate approvals and enforcement for outdoor service areas.
- Compliance training should address staffing requirements, physical barrier rules, and the shared responsibility among licensees when multiple businesses operate in the same service space.
- Trainers working with event organizers should be prepared for new provisions tied to civic campuses and fan zones.
Food Service Options for Licensees (HB 1602)
Effective: July 27, 2025
Historically, breweries and microbreweries without kitchens faced barriers in contracting food service. HB 1602 resolves this by allowing contracted food trucks or kitchen providers to meet food service requirements. The contracted food service provider remains responsible for meeting local health department rules.
What it means:
- Breweries can now subcontract food service while staying compliant.
- Trainers should stress that the food service provider, not the brewery, is held responsible for food safety compliance.
Eliminating the 24-Liter Purchase Cap (HB 1636)
Effective: July 27, 2025
Previously, retailers purchasing from other alcohol retailers were capped at 24 liters per transaction. HB 1636 eliminates this limit, making it easier for businesses like restaurants and bars to stock up directly from other retailers if needed.
What it means:
- Simplified purchasing for retailers and licensees.
- Compliance training should note that while volume restrictions are lifted, all recordkeeping and tax obligations remain unchanged.
Liquor Permit and Licensing Provisions (HB 1698)
Effective: July 27, 2025
This bill clarifies that all servers in on-premise establishments must hold a MAST permit (Class 12 or 13), removing ambiguity in prior law. It also repeals outdated license types, including a requirement for military installations to buy liquor under a special permit and the unused public house license type.
What it means:
- Clearer training requirement: every server in on-premise licensed facilities must be MAST certified.
- Compliance trainers should update materials to reflect that no exceptions remain for license types previously excluded from this rule.
Cannabis Retailer Advertising (ESB 5206)
Effective: January 1, 2026
This bill increases the number of allowable outdoor cannabis retailer signs from two to four, with restrictions on placement and size. It also clarifies that signs smaller than 512 square inches (without branding or imagery) are not considered advertising signs. Restrictions on appealing-to-children content remain.
What it means:
- Cannabis retailers gain slightly more flexibility in signage.
- Trainers should highlight ongoing restrictions — including no advertising near schools, no mascots, and no use of alcohol/tobacco themes.
Cannabis Retailer Financial Agreements (ESSB 5403)
Effective: January 1, 2026
This law prohibits financial agreements that allow more than five cannabis retailers to operate under shared management or branding if it involves profit-sharing or ownership interests. While outside services (branding, accounting, social media) may still be contracted, retailers may not centralize operations beyond five stores.
What it means:
- Retailers must be cautious with management agreements to avoid violating ownership cap rules.
- Trainers should ensure cannabis licensees understand the difference between service contracts and prohibited financial arrangements.
License, Permit, and Endorsement Fee Increases (2SSB 5786)
Effective: July 27, 2025
The Legislature approved broad fee increases for liquor licenses, permits, and endorsements, with most rising by 50%. This includes application fees, renewal fees, and other license-related charges.
What it means:
- Businesses should prepare for higher costs when applying for or renewing licenses.
- Trainers should emphasize this change for employers budgeting for compliance and licensing costs.
Final Thoughts
Washington State’s 2025–2026 legislative session brought sweeping updates to alcohol and cannabis regulations. For compliance trainers, these changes underscore the importance of keeping course content and student instruction up-to-date with current law.
For official summaries, visit the LCB GovDelivery bulletin and the LCB Legislative Fact Sheets page.
The NAHCT will continue monitoring developments and providing members with timely resources. These updates should be incorporated into training programs immediately to ensure both licensees and their staff remain compliant once the new laws take effect.
The information presented in this blog was prepared by the National Association of Hospitality Compliance Trainers (NAHCT) as a summary to assist training providers in staying informed about compliance updates. While every effort has been made to provide accurate information, NAHCT is not responsible for any errors, omissions, or misinterpretations. Each training provider is responsible for reviewing the official statutes, regulations, and guidance from the appropriate regulatory authority to ensure their curriculum is accurate and compliant.
