HB 1443 — Concerning social equity within the cannabis industry.

ENGROSSEDH-0665.1 SUBSTITUTE HOUSE BILL 1443 State of Washington 67th Legislature 2021 Regular Session By House Commerce & Gaming (originally sponsored by Representatives Morgan, Wicks, Simmons, Berry, J.

Johnson, Ramel, Kloba, Ryu, Peterson, Ormsby, Ortiz-Self, Harris-Talley, and Macri)Macri READRead FIRSTfirst TIMEtime 02/15/21.02/01/21.

Referred to Committee on Commerce & Gaming.

and providing an expiration date.date;

and declaring an emergency.

(2)(a)(2) The ((marijuana)) cannabis social equity technical assistance competitive grant program must award grants on a competitive basis to ((marijuana retailer)):

(i)(a) Cannabis license applicants who are social equity applicants submitting social equity plans under RCW 69.50.335;

and (ii)(b) Cannabis licensees holding a license on the effective date of this section who meet the social equity applicant criteria under RCW 69.50.335.

(b)(3) GrantThe recipientsdepartment undermust thisaward subsectiongrants (2)primarily mustbased demonstrateon completionthe strength of theirthe projectsocial withinequity 12plans monthssubmitted ofby receivingcannabis alicense grant,applicants unlessand acannabis grantlicensees recipientholding requests,a andlicense on the departmenteffective approves,date additionalof timethis tosection, completebut themay project.also consider additional criteria if p.

p.1 HB 1443 deemed necessary or appropriate by the department.

1 ESHB 1443 (3) The department must award grants primarily based on the strength of the social equity plans submitted by cannabis license applicants and cannabis licensees holding a license on the effective date of this section, but may also consider additional criteria if deemed necessary or appropriate by the department.

(a) Assistance navigating the ((marijuana((marijuana)) retailer)) cannabis retailer licensure process;

(((3))) (4) The department must create a pilot program by OctoberAugust 2, 2021, to provide technical assistance to cannabis retailers holding a license on the effective date of this section who meet the social equity applicant criteria under RCW 69.50.335.

(b) Grant recipients under this subsection (4) must demonstrate completion of their project within 12 months of receiving a grant,grant. unless a grant recipient requests, and the department approves, additional time to complete the project.

p.(7) For the purposes of this section, "cannabis" has the meaning provided for "marijuana" under RCW 69.50.101.

2 ESHB 1443 (7) For the purposes of this section, "cannabis" has the meaning provided for "marijuana" under RCW 69.50.101.

(1) Beginning December 1, 2020, and until July 1, ((2028)) 2029, ((marijuana)) cannabis retailer licenses that have been subject to forfeiture,p. revocation, or cancellation by the board, or ((marijuana)) 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 ((marijuana)) cannabis retailer licenses established before January 1, 2020, by the board, may be issued or reissued to an applicant who meets the ((marijuana)) cannabis retailer license requirements of this chapter.

2 HB 1443 forfeiture, revocation, or cancellation by the board, or ((marijuana)) 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 ((marijuana)) cannabis retailer licenses established before January 1, 2020, by the board, may be issued or reissued to an applicant who meets the ((marijuana)) cannabis retailer license requirements of this chapter.

Rules may also require that licenses awarded under this section be p.transferred or sold only to individuals or groups of individuals who comply with the requirements for initial licensure as a social equity applicant with a social equity plan under this section.

3 ESHB 1443 transferred or sold only to individuals or groups of individuals who comply with the requirements for initial licensure as a social equity applicant with a social equity plan under this section.

(a)p. "Cannabis" has the meaning provided for "marijuana" under this chapter.

(b)3 "DisproportionatelyHB impacted1443 area"(a) means"Cannabis" ahas census tract or comparable geographic area that satisfies the followingmeaning criteria,provided whichfor may"marijuana" beunder furtherthis definedchapter. in rule by the board after consultation with the commission on African American affairs and other agencies, commissions, and ((stakeholders)) interested parties as determined by the board:

(b) "Disproportionately impacted area" means a census tract or comparable geographic area that satisfies the following criteria, which may be further defined in rule by the board after consultation with the commission on African American affairs and other agencies, commissions, and ((stakeholders)) advocates as determined by the board:

(i) An applicant who has at least fifty-one percent ownership and control by one or more individuals who have resided ((forfor at least five of((of the preceding tenten)) years))years induring a1975 disproportionatelythrough impacted2015 areain for a perioddisproportionately ofimpacted timearea; defined in rule by the board after consultation with the commission on African American affairs and other commissions, agencies, and interested parties as determined by the board;

or (iii) An applicant who meets criteria defined in rule by the board after consultation with the commission on African American affairs and other commissions, agencies, and interestedadvocates parties as determined by the board.

p.(i) Increasing the number of ((marijuana)) cannabis retailer licenses held by social equity applicants from disproportionately impacted areas;

4 ESHB 1443 (i) Increasing the number of ((marijuana)) cannabis retailer licenses held by social equity applicants from disproportionately impacted areas;

(((d))) (e) "Social equity plan" means a plan that addresses at least some of the elements outlined in this subsection (6)(((d)))(e), along with any additional plan components or requirements approved by thep. board following consultation with the task force created in RCW 69.50.336.

4 HB 1443 the board following consultation with the task force created in RCW 69.50.336.

The purpose of the task force is to make recommendations to the board including but not limited to establishing a social equity program for the issuance and reissuance of existing retail ((marijuana)), processor, and producer cannabis licenses, and to advise the governor and the legislature on policies p.that will facilitate development of a ((marijuana)) cannabis social equity program.

5 ESHB 1443 that will facilitate development of a ((marijuana)) cannabis social equity program.

(c)p. The president of the senate and the speaker of the house of representatives shall jointly appoint:

5 HB 1443 (c) The president of the senate and the speaker of the house of representatives shall jointly appoint:

p.(c) A majority of the task force members constitutes a quorum.

6 ESHB 1443 (c) A majority of the task force members constitutes a quorum.

(5)p. Staff support for the task force, including arranging the first meeting of the task force and assisting the chair of the task force in arranging subsequent meetings, must be provided by the health equity council of the governor's interagency council on health disparities.

6 HB 1443 (5) Staff support for the task force, including arranging the first meeting of the task force and assisting the chair of the task force in arranging subsequent meetings, must be provided by the health equity council of the governor's interagency council on health disparities.

(6) ((TheThe expenses of the task force must be paid jointly by the senate and the house of representatives.

(7)))(7) Legislative members of the task force may be reimbursed for travel expenses in accordance with RCW 44.04.120.

(((8)))(8) (7) The task force is a class one group under chapter 43.03 RCW.