This bill seeks 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 aims to simplify the licensing process for employees involved in ESOPs by ensuring that only those who have actual control over the business are subject to licensing requirements. Key amendments include defining the role of ESOPs in cannabis ownership and clarifying that employees, plan administrators, and trustees will not be considered true parties of interest unless they hold corporate officer or director titles, thereby reducing regulatory burdens while maintaining licensing integrity.

Additionally, the bill amends existing cannabis licensing laws, particularly concerning the issuance of retail licenses. It stipulates that the board cannot issue a cannabis retail license if a written objection is received from the local legislative authority 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 after January 1, 2024, with provisions for fee reimbursement for compliant licensees. It also updates application and renewal fees, specifies that licenses must be issued in the applicant's name, and introduces a process for license forfeiture for non-operational retailers, while protecting against forfeiture due to local government actions.

Statutes affected:
Original Bill: 69.50.331, 69.50.325