The bill seeks to promote employee ownership in licensed cannabis businesses in Washington by allowing employee stock ownership plans (ESOPs) to own up to 100 percent of these businesses. It highlights the advantages of ESOPs, such as providing wealth-building opportunities for employees and improving company performance through enhanced engagement. To facilitate this, the bill requires the liquor and cannabis board to revise its rules to clarify the qualifications for true parties of interest in cases involving ESOPs, ensuring that only those who control the company are subject to vetting and licensing. Key amendments include defining the role of ESOPs and exempting employees, plan administrators, and trustees from being classified as applicants or owners under the cannabis licensing framework, thereby streamlining the licensing process while maintaining regulatory integrity.

Additionally, the bill amends existing cannabis licensing laws, particularly concerning the issuance of retail licenses and the requirements for producers, processors, and retailers. It stipulates that the board cannot issue a retail license if a local legislative authority objects within 20 days, especially if the objection is based on local ordinances regarding outlet density. The bill encourages cannabis licensees to submit a social equity plan starting January 1, 2024, with provisions for reimbursement of the annual license renewal fee for eligible participants. It also updates the application and renewal fees for cannabis licenses, specifies that licenses must comply with RCW 69.50.331, and introduces forfeiture provisions for non-operational retailers while protecting licensees from forfeiture due to local government actions that impede their ability to open.

Statutes affected:
Original Bill: 69.50.331, 69.50.325