House approves limited producer co-ops for small cannabis growers

The House passed Engrossed House Bill 1941, which the Senate amended to cap producer participation in a cannabis co-operative at three producers rather than using a square-footage formula.

A sponsor said the change will help small cannabis farmers and producers form limited co-ops to create economies of scale and better compete in the marketplace, calling it a pragmatic adjustment. “This allows limited co-ops… I think that's worth giving them that opportunity to see how this works out,” Representative Engel said on the floor in support.

Opponents disagreed that cannabis should be treated as an agricultural activity and raised concerns about public health and social license for increased cannabis production. One lawmaker said, “I strongly oppose this bill because I don't believe the production of cannabis is an agricultural activity,” and argued the policy risks normalizing drug production.

After brief floor remarks the clerk reported the roll-call result as 69 yays, 26 nays and 3 excused; the presiding officer declared the bill passed as amended by the Senate.

The bill implements a narrow change to licensing structure for producers and was discussed primarily in terms of economic opportunity for small producers versus public-health objections.