Washington Social Equity In Cannabis Licensing Window Opens March 1

The Washington State Liquor and Hashish Board (“WSLCB”) announced this Wednesday, January 18, that the 30 day window to use for a Washington Social Fairness In Hashish Retail License will open March 1, 2023.

The WSLCB will reissue 44 retail licenses to certified candidates that rank the very best on a factors scale to “prioritize” candidates. The licenses will likely be anchored to particular counties. As a refresher, we’ve been following the developments in Washington’s efforts so as to add Section 570 to Washington Annotated Code (“WAC”) Title 314-55 from the draft rules and their points, the final (and unchanged) rule, and the lately launched, somewhat unhelpful Disproportionately Impacted Space (“DIA”) mapping tool.

The license utility course of will likely be accomplished electronically on the WA Division of Income’s enterprise licensing system, although it’s not presently obtainable on the DOR’s web site.

Washington social fairness hashish license eligibility standards

To qualify for a license and earlier than being ranked in keeping with the purpose system, an applicant have to be a Washington resident, should personal not less than 51% of every social fairness retail enterprise, and the particular person or individuals proudly owning the enterprise should meet not less than two of the next {qualifications}:

• the applicant has lived in a DIA in WA for no less than 5 years between 1980 and 2010;
• the applicant or a member of the family of the applicant has been arrested or convicted of a hashish offense; or
• the applicant’s family revenue within the 12 months previous to submitting the appliance was lower than the median family revenue throughout the state of Washington.

Whereas it’s not listed particularly as a qualification, candidates should additionally submit a “social fairness plan” describing how they are going to meet social fairness objectives, “applicant’s private or household historical past with the felony justice system, together with any offenses involving hashish” and a “marketing strategy involving partnerships or help to organizations or residents with connections or contributions to populations with a historical past of excessive charges of enforcement of hashish prohibition.” WAC 314-55-570(h)((i).

RCW 69.50.335 defines Social fairness objectives as “(i) growing the variety of marijuana retailer licenses held by social fairness candidates from disproportionately impacted areas; and (ii) decreasing accrued hurt suffered by people, households, and native areas topic to extreme impacts from the historic utility and enforcement of marijuana prohibition legal guidelines.” Having a social fairness plan will affect eligibility and rating so it can be crucial for candidates to place the time in to create one.

Washington social fairness hashish license scoring rubric

As soon as discovered eligible in keeping with the factors above, candidates are ranked so as of precedence based mostly on a scoring system.

Washington social fairness license restrictions

If a license is be granted, there are license restrictions Washington social fairness hashish candidates ought to learn about. The extra heavy-handed (and pointless) restrictions are:

• No possession modifications to the appliance are allowed after it has been reviewed;
• No change of location exterior of the county through which the license is initially issued;
• No license switch or assumption is allowed throughout the first 12 months of issuance and all social fairness licenses could solely be transferred or assumed by an individual or individuals who meet the definition of a social fairness program applicant for five years from the date the license is accredited.

These restrictions dramatically cut back the transferability of a social fairness license, that are exhausting to switch as it’s. As we wrote on this subject final 12 months “Many licensees will construct their companies into affluent enterprises and this rule knee-caps their capacity to promote them within the already extremely (and unnecessarily) restricted WA market.” The eligibility and rating standards have their very own points, however the license restrictions are solely going to harm licensees–the very individuals the rule is meant to serve.

Nonetheless ?

Candidates who’re all for making use of for these licenses can discover sure informational supplies on the WSLCB website and attend just a few upcoming webinars. This course of could also be made extra complicated by the probably of lawsuits being filed to problem sure elements of the rule. If that occurs, it might freeze or complicate the appliance course of so staying updated with developments from the WSLCB will likely be necessary. As normal, we may even be writing about them right here.