SEATTLE (AP) — When Washington and Colorado launched their pioneering marijuana industries in the face of U.S. government prohibition, they imposed strict rules in hopes of keeping the U.S. Justice Department at bay.

Businesses would need to track plants and products with bar codes. Owners of pot operations would have to live in-state and pass background checks.

Five years later, federal authorities have stayed away, but the industry says it has been stifled by over-regulation. Lawmakers in both states have heard the complaints and are moving to ease the rules.

Washington lawmakers are considering a dual approach: easing financial restrictions while taking a more lenient view of rules violations, making it less likely businesses will lose their licenses for things like sloppy record-keeping. Three dozen have had their licenses canceled since 2015, while 32 more face revocation notices, according to the state Liquor and Cannabis Board.

One measure pending in the Democratic-led Legislature would open the industry to out-of-state ownership and allow businesses to become bigger, with a caveat: Any licensees hoping to take advantage would have to agree to let their workforce unionize.

Those that do could have up to 40% of their ownership held outside of Washington. They would also be able to obtain two additional marijuana licenses, allowing them to have up to seven retail shops or up to five growing and processing licenses, said the main sponsor, Sen. Rebecca Saldaña.

Investors could hold up to 10% of the business without undergoing background checks, though their names would still need to be disclosed.