Washington

Equity Project State Briefing

Social Equity

Social Equity Definition / Criteria

  • i. Previous Cannabis Conviction:
  • ii. Income:
  • iii. State Residency:
  • iv. Qualifying Neighborhood / Municipal Residency:

In Washington, a “Social Equity Applicant” is:

  1. i) An applicant with at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a disproportionately impacted area. 
  2. ii) An applicant who has at least fifty-one percent ownership and control by at least one individual who has been convicted of a cannabis offense or is a family member of such an individual.

In order to be considered for a retail license an applicant must be a social equity applicant and submit a social equity plan along with other marijuana retailer license application requirements to the board. While not a requirement of the social equity program specifically, cannabis licensure applicants must be residents of the state for at least six months.

Source:

Wash. Rev. Code § 69.50.335. Definitions.
Washington State Liquor and Cannabis Board "Bill summary, E2SHB 2870". Retrieved January 10, 2022

Social Equity Provisions

In order to be considered for a retail license in Washington, an applicant must be a social equity applicant and submit a social equity plan. Washington State’s social equity provisions include technical assistance grants, priority licensing, regulatory compliance training and financial management training and assistance in seeking financing. Activities eligible for funding under the grant program include, but are not limited to, assistance with the marijuana retailer licensing process, marijuana business education and business plan development, regulatory compliance training, and connecting the social equity applicant with established industry members.

Source:

Washington State Liquor and Cannabis Board "Bill summary, E2SHB 2870". Retrieved January 10, 2022
Wash. Rev. Code § 69.50.335. Definitions.
Wash. Rev. Code § 43.330.540. Subsections (3)(a-f)

License Priorities and Set Asides

  • License Priorities / Set Asides:
Yes

Under 2020 social equity legislation, The Washington Liquor and Cannabis Control Board may only issue new or revoked licenses to social equity applicants. The board may prioritize applicants based on the extent to which the application addresses the components of the social equity plan.

Source:

Washington State Liquor and Cannabis Board "Bill summary, E2SHB 2870". Retrieved January 6, 2022
Wash. Rev. Code § 69.50.335. Definitions. Subsection (2)(a)

Fee Waivers and Reductions

  • Fee Waivers / Reductions:
No

Washington does not offer fee reductions. The annual fee for issuance, re-issuance, or renewal for  social equity license holders is the same as for general applicants.

Source:

Wash. Rev. Code § 69.50.335. Subsection (5)

Other Financial Support for Social Equity Applicants and Licensees

In Washington state, a total of $1,100,000 annually shall be paid to the department of commerce to fund the cannabis social equity program. The department receives its money from”The Dedicated Marijuana Fund.”

Source:

HB-2870. Section 4. Subsection (1)(h)(i)
Wash. Rev. Code § 43.330.540. Subsection (5)
Wash. Rev. Code § 69.50.540. Subsection (1)(i)
Washington State Liquor and Cannabis Board "Bill summary, E2SHB 2870". Retrieved January 6, 2022

Other Licensing Provisions

License Caps

  • License Caps:
Yes

Washington has licensing caps as it is a limited license state. The statewide cap is 556. Localities may also impose license caps or opt out of participating in the adult use sector all together.

Source:

Wash. Admin. Code § 314-55-079. Subsection (2)(b)
Washington State Liquor and Cannabis Board " Local Municipal Authorities". Retrieved January 21, 2021

Application Selection Process

  • Selection System:
Merit

Washington has a merit-based award system used to distribute adult use licenses.

Felony Disqualification on Ownership

  • Ownership Exclusion for Felony Convictions:
Yes
  • Exemption for Cannabis Offenses:
Yes

Washington’s adult use framework disqualifies applicants for cannabis licensure on the basis of their conviction history. However, as of Oct 2021, the state revised their background check methodology in order to make licenses more accessible to individuals who have been disproportionately impacted by cannabis criminalization. Individuals with certain conviction types within a certain period will have to undergo a threshold review for the board to evaluate additional criteria to determine if the individual should be granted a license. 

Under new rules, Class A and B felonies within a 10 year look back period will be considered. An individual with one or more of these convictions will have to undergo threshold review. 

Class C felonies within a 7 year look back period will be considered. An individual with two or more of these convictions will have to undergo threshold review. 

Gross misdemeanors and misdemeanors within a 3 year look back period will be considered. An individual with three or more  of these convictions will have to undergo threshold review. 

If an application is sent to a threshold review, applicants will have an opportunity to submit information on their behalf for LCB to consider as the application is reviewed. When a background check results in a determination for a threshold review, the board will consider the following criteria:

(a) Time since the conviction, or pending offenses;

(b) Nature and specific circumstances of the offense;

(c) Relationship of the offense or incident to the nature of the work performed;

(d) Number of offenses or incidents;

(e) If criminal, any relevant evidence of rehabilitation, such as information about compliance with conditions of parole or probation, including orders of no contact with victims and witnesses, and the individual’s conduct and experience since the time of the offense; and

(f) Any other relevant information, including information submitted by the applicant or licensee, or requested by the board.

Source:

Wash. Admin. Code § 314-55-040. Cannabis applicant or licensee background checks
Washington State Liquor and Cannabis Board RULE-MAKING ORDER PERMANENT RULE ONLY. Retrieved January 21, 2021
Washington State Liquor and Cannabis Board "Criminal History Record Check - Cannabis Licenses". Retrieved January 21, 2021
Washington State Liquor and Cannabis Board "Notice of Permanent Rules". Retrieved January 21, 2021

Employee Criminal Records

  • Conviction Restrictions for Employees:
No
  • Exemption for Cannabis Offenses:
No

Within the adult use sector, Washington does not require state level background checks on cannabis employees. Employers may however elect to conduct a background check so long as it is in compliance with Washington’s Fair Chance Act, also known as Ban the Box.

Source:

Wash. Rev. Code § 49.94.010. Inquiries about criminal records-Timing-Advertisements-Exceptions
Harris and Bricken law firm, Blog "Washington Bans the Box: Hiring Cannabis Employees Just Got Trickier". Retrieved January 21, 2021
Reason Foundation "Criminal Conviction Restrictions for Marijuana licensing". Retrieved January 6, 2022
Washington State Office of Attorney General "Use of Criminal Record Information in Job Hiring". Retrieved January 6, 2022

Availability of Expungements

  • Expungements:
Yes

Every person convicted of misdemeanor marijuana possession offenses may petition the court to vacate their conviction. Individuals with certain qualifying felonies may petition for a vacature after a variation of times depending on the offense.

Source:

Wash. Rev. Code § 9.96.060. Vacating records of conviction for misdemeanor and gross misdemeanor offenses. Subsection 5
Wash. Rev. Code § 9.94A.640. Vacation of offender's record of conviction