HISTORY OF PROGRAM 

The WSLCB was formed in 1933 by the Steele Act. The mission of the WSLCB is to promote safety by consistent and fair administration of liquor and cannabis laws through education, voluntary compliance, responsible sales and preventing the misuse of alcohol, cannabis and tobacco. In 2011, the citizens of Washington state privatized the sale of spirits and in 2012, Initiative 502 was passed which legalized recreational marijuana sales and mandated WSLCB to oversee the recreational market.

The Washington state legislature found that additional efforts are necessary to reduce barriers to entry to the cannabis industry for individuals and communities most adversely impacted by the enforcement of cannabis-related laws. In the interest of establishing a cannabis industry that is equitable and accessible to those most adversely impacted by the enforcement of drug-related laws, including cannabis-related laws, the legislature determined that a Social Equity Program should be implemented.

The legislature found that individuals who have been arrested or incarcerated due to drug laws, and those who have resided in areas of high poverty, suffer from long-lasting adverse consequences, including impacts to employment, business ownership, housing, health, and long-term financial well-being. The legislature also determined that family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws, suffer from emotional, psychological, and financial harms because of such arrests and incarceration. The legislature further found that individuals in disproportionately impacted areas (also referred to as “DIA”) suffered the harms of enforcement of cannabis-related laws. As a result, those individuals who reside primarily in diverse communities face greater difficulties accessing traditional banking systems and capital for establishing and developing successful businesses.

The legislature therefore found that in the interest of remedying harms resulting from the enforcement of cannabis-related laws in disproportionately impacted areas, a Social Equity Program should be created to facilitate an equitable cannabis industry. Such a program will promote business ownership among individuals who have resided in areas of high poverty and high enforcement of cannabis-related laws. The Social Equity Program will offer financial assistance, technical support and license application 3 benefits to individuals most directly and adversely impacted by the enforcement of cannabis related laws who are interested in starting cannabis business enterprises.

The Social Equity in Cannabis Program was created to issue cannabis retail licenses that have been subject to forfeiture, revocation or cancellation by the Board, or cannabis retailer licenses that were not previously issued by the Board but could have been issued without exceeding the limit on the statewide number of cannabis retailer licenses established before January 1, 2020 by the Board that may be issued or reissued to social equity applicants. Additionally, the Social Equity in Cannabis Task Force (SECTF) was created to provide recommendations to the WSLCB about establishing the Social Equity Program.

Since the legalization of cannabis in 2012, some jurisdictions have passed moratoria, bans, restrictive zoning laws, reduced allocations and placed other prohibitions on the retail sale of cannabis. In some areas, these ordinances have prevented cannabis retail licensees from opening. Washington state law requires all cannabis licensees to have a qualifying location, security requirements, report sales and maintain insurance - whether they are able to open or not. To reduce the costs of maintaining license requirements, WSLCB has allowed retail cannabis licensees who are legally prohibited from opening anywhere within their allotted jurisdiction to apply for a Title Certificate. Title certificate holders are not required to maintain all license requirements. Title certificate holders may also apply to participate in the WSLCB Social Equity in Cannabis Program.