WSLCB - Board Caucus
(March 18, 2025) - Social Equity Program Update

Staff brought the board up to speed on the status of social equity applicants, outreach to local officials, training videos, and the next application window.

Here are some observations from the Tuesday March 18th Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Cannabis Licensing Manager Linda Thompson provided an update on the social equity program, including the status of applications and barriers faced by applicants.
  • Agency representatives went over the status of the equity program with a legislative committee on February 10th.
  • During the caucus, Thompson reported that of the 40 successful applicants, seven had received licenses, "32 applicants [we]re still going through the licensing process while one license was withdrawn per their request.” The 32 applicants "have not secured a location, therefore haven't moved forward in our next steps of the licensing process,” she said. Thompson provided a map of Washington counties showing where the seven issued licenses had opened, and noted that there was “no time limit to find a location or secure funding” (audio - 2m, video - TVW).
    • Thompson then discussed title certificate holders who applied under the program, and explained that they were “a licensee who was unable to open for business in a city or county where the cannabis retail license was originally located due to a ban or moratorium.” She indicated that three title certificate holders were still looking for a location in King, Pierce, and Lewis Counties; and mentioned that they only needed to qualify as social equity applicants and had not been scored. Thompson added that in addition to the seven licensees from the program, two title certificate holders were licensed, “and those were in Clark and Benton Counties."
  • Addressing barriers to licensure, Thompson remarked that through conversations with applicants, the social equity team found that "the most common barrier social equity applicants have reported to us is finding and securing a location”  (audio - 3m, video - TVW).
    • Challenges she mentioned related to this were finding compliant locations “due to distance requirements” and zoning restrictions, as well as “jurisdictions' additional restrictions” such as proximity to other retailers. Even when appropriate locations were identified, she told the board, "often the cost associated with making the property usable…are high.” Other times, “landlords are not willing to lease to a cannabis business," or if they did, “the rent is inflated due to it being a cannabis business." Thompson concluded that the limited number of compliant locations likely contributed to the pattern of “unreasonable rents.”
      • SB 5758, related to buffer zones for equity retailers, was scheduled to get a public hearing Washington State House Consumer Protection and Business Committee (WA House CPB) on Wednesday March 19th.

• Case Manager Sarah Worley provided an update on the social equity team's local authority outreach efforts and upcoming educational videos for applicants (audio - 4m, video - TVW).
  • Worley discussed a survey sent to local authorities at the end of 2024, which asked about cannabis businesses in their area, buffer zones, and understanding of their power to increase local allotments for social equity licenses. She noted that they "had received 23 responses…which is more than we have received in the past.” The survey aimed to gauge interest in more information about buffer zones and the social equity program, although she reported that respondents could “pick and choose” which questions they answered. Only three of the respondents indicated interest in a virtual presentation or panel discussion, she added, and WSLCB staff had “reached out to those ones in hopes that…we can have that one-on-one” conversation.
    • Worley mentioned that the team also emailed a letter about excise tax distributions as a way of highlighting how locals could benefit from “having cannabis retailers in their jurisdiction." This was followed up with direct communication to city managers, mayors, and county commissioners, “specifically those who have a ban or moratorium” on cannabis businesses, she said.
      • During the February 26th Executive Management Team (EMT) meeting, Director of Licensing and Regulation Becky Smith mentioned how Board Member Ollie Garrett pushed for letters about cannabis revenue and direct contact with city managers.
  • She stated that they "made some great connections with a handful of local authorities" and were building relationships by answering questions “about the social equity program, buffer zones, [and] allotments.” Worley elaborated that her team was also making clear the willingness of WSLCB staff to speak directly to local elected officials at city or county public meetings. She offered examples of meetings held with local authorities in the City of Pacific, which recently “made changes to their ordinance to allow cannabis, [and] they did mention that the excise tax was actually an incentive for them.” Agency staff had also spoken with Tacoma officials, she commented, and answered their questions. Worley added, “we do have a presentation scheduled with the City of Lynwood at the end of the month. It was supposed to be last week, but it got rescheduled,” possibly to the March 24th City Council meeting. She also mentioned that there had been outreach to the Washington City/County Management Association (WCCMA).
    • Board Chair Jim Vollendroff expressed his appreciation for the team's efforts, especially “recognition of the effort that you all are going through to make those local connections” (audio - <1m, video - TVW).
  • Regarding education efforts for applicants, Worley announced the creation of several "videos…we'll be sharing with the applicants about the program, and we'll assist them through the applying for the next window.” The videos would cover the program's overview, history, qualification criteria, the revised registration process “through the new [Licensing Enforcement Education and Administrative Data Systems] LEEADS system,” required documentation for scoring, and next steps for selected applicants. Her presentation indicated videos were scheduled to be released in April (audio - 1m, video - TVW).

• Social Equity Program Manager Aaron Washington provided an update on preparations for the program’s next registration window, including the involvement of a third-party contractor to score applicant qualifications, and the anticipated timeline (audio - 5m, video - TVW).
  • Washington announced that AltaPoint Consulting LLC was selected as the third-party contractor on January 3rd. The firm’s staff would determine eligibility for the next round of applicants. AltaPoint Consulting was a Seattle-based firm with over 40 years of experience, and a “nationwide network of over [400] consultants,” he explained. Washington told the board that the social equity contractor was reported to be “on schedule to complete three of six deliverables after weekly meetings with the LCB since the kickoff meeting on January 9th.”
    • Washington said consultants from the firm had presented “configurations for the data management system”—called the Reviewer Platform—which would be used to store and evaluate information from future registrants. He remarked that personnel from various WSLCB divisions had conducted a trial of the Reviewer Platform and provided feedback. Washington further expected completion of the platform in April 2025.
  • Turning to a tentative timeline for the next equity licensing window, Washington cautioned that it "may be contingent on current proposed legislation about the Social Equity Program, which is being heard during this legislative session.” He stated that external notification for the actual registration window date would be communicated through GovDelivery, LinkedIn, BlueSky, and…newsletters of organizations that are in support of the next round of applicants.”
    • At time of publication, there were two active bills regarding the equity program: an evaluation of the program (HB 1551), and SB 5758, the bill proposing different buffer distances for equity businesses.
  • Washington mentioned that his team would be posting a blog at the end of March to encourage prospective registrants to watch the education videos that Worley had discussed, as these would assist with understanding the evaluation process. He also addressed potential confusion with the launch of LEEADS on March 31st, clarifying that LEEADS was a key part of the new registration process, but the launch date was not the same as the registration window date. Clearing up that registration would be a 30-day window and was only to identify who would be able to proceed with an evaluation by AltaPoint Consulting, Washington anticipated the window occurring in June, but more tentatively between late spring and early summer of 2025.
    • After registration closed, registrants would receive further notification about when to submit documentation for evaluation through the Reviewer Platform. Washington encouraged prospective registrants to begin gathering documentation that would support their qualifications.
  • When Vollendroff asked about the board's role in assisting Washington’s team, Washington mentioned that continued advocacy and support for their outreach to local authorities was appreciated. Vollendroff expressed an openness to board member participation in local outreach events, stating, “if it would be helpful to have that kind of support during those meetings I wouldn't hesitate to reach out and ask that.” Washington emphasized the importance of a regulated market and the need for participation in the process, requesting that the board "continue to spread that message” (audio - 2m, video - TVW).