Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Commerce & Gaming Committee

HB 2247

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

The Liquor and Cannabis Board (LCB) issues the following licenses to qualified individuals, business entities, and nonprofit entities, subject to requirements: (1) marijuana producer license; (2) marijuana processor license; (3) marijuana retailer license; (4) marijuana researcher license; and (5) marijuana transporter license. For the purposes of considering an application for such a license, the LCB must conduct a comprehensive, fair, and impartial evaluation of the applications that are received in a timely manner.

Pursuant to statute, the LCB cannot issue a marijuana business license to:

a person under 21 years of age;
a person doing business as a sole proprietor who has not lawfully resided in the state for at least six months prior to applying to receive a license;
a partnership, employee cooperative, association, nonprofit corporation, or corporation unless formed under the laws of this state, and unless all members thereof are otherwise qualified to obtain a license; or
a person whose place of business is conducted by a manager or agent, unless the manager or agent possesses the same qualifications required of the licensee.

Before the LCB issues or renews a license to an applicant, the LCB must give notice of the application to the chief executive officer of the incorporated city or town if the application is for a license within an incorporated city or town, or to the county legislative authority, if the application is for a license outside the boundaries of incorporated cities or towns.

The city, town, or county, as appropriate, may file with the LCB within 20 days after the date of transmittal of the notice for application, or at least 30 days prior to the expiration date for a renewal, written objections against the applicant, or against the premises for which the new or renewed license is asked. The written objections must include a statement of all facts upon which the objections are based, and if written objections are filed, the city, town, or county may request that the LCB hold a hearing subject to the Administrative Procedure Act. The LCB may extend the time period for submitting written objections.

If the LCB makes an initial decision to deny a license or renewal based on the written objections of a city, town, or county, the applicant may request a hearing. If a hearing is held at the request of the applicant, the LCB must present and defend the LCB's initial decision to deny a license or renewal.

The LCB may, in its discretion, grant or deny the renewal or license applied for. Denial may be based on, without limitation, the existence of chronic illegal activity documented in objections submitted to the LCB from the chief executive officer of the incorporated city or town that the applicant's premises is located in, or from the county legislative authority, if the applicant's premises is not located in an incorporated city or town. The LCB must give substantial weight to such objections.

Summary of Bill:

An eligible local jurisdiction may submit a written objection to the Liquor and Cannabis Board (LCB) stating the issuance of a new or renewed marijuana license violates the zoning ordinances of the local jurisdiction.

The LCB may not issue a new or renewed marijuana license for any premises located in an area for which the LCB has received a written objection from an eligible local jurisdiction stating the marijuana license violates local zoning ordinances.

For purposes of making licensing decisions that conform with local zoning ordinances, the LCB may rely on a written statement submitted from the following entities:

the chief executive officer of an incorporated city or town if the application is for a license in an incorporated city or town;
the county legislative authority if the application is for a license outside the boundaries of incorporated cities or towns;
the port authority if the application is for a license on port authority property; or
the tribal government if the application is for a license on tribal land property.