The bill aims to promote employee ownership in licensed cannabis businesses in Washington State by allowing employee stock ownership plans (ESOPs) to own up to 100 percent of these businesses. It recognizes the advantages of ESOPs, such as wealth-building opportunities for employees and improved company performance through enhanced engagement. To simplify the licensing process, the bill proposes amendments to current laws that require all employees in an ESOP to be vetted as true parties of interest, which is considered impractical. Instead, it establishes clearer guidelines for vetting, specifying that only corporate officers and directors need to undergo the vetting process, while employees participating in the ESOP, plan administrators, and trustees are exempt from residency and criminal background checks.

Additionally, the bill amends existing cannabis licensing laws by addressing the issuance of cannabis retail licenses and the requirements for producers, processors, and retailers. It stipulates that a cannabis retail license cannot be issued if a written objection is received from the local legislative authority within 20 days, particularly if the objection is based on local ordinances regarding outlet density. The bill also encourages cannabis licensees to submit a social equity plan to the board after January 1, 2024, with a provision for reimbursement of the annual license renewal fee for compliant businesses. Furthermore, it updates application and renewal fees, sets conditions for license issuance, and introduces a process for license forfeiture for retailers that do not become operational within a specified timeframe, while protecting against forfeiture due to local government actions.

Statutes affected:
Original Bill: 69.50.331, 69.50.325