Director's office recommends, and board denies, petition to reopen social equity cannabis rules

The Liquor and Cannabis Board voted to deny a petition seeking changes to the Social Equity in Cannabis program that would allow unrestricted transfer or sale of social equity licenses.

Daniel Jacobs, presenting the director’s office recommendation, said the most recent social equity rulemaking concluded in late 2024 and early 2025 and addressed many of the petitioner's concerns. "The Director's Office is recommending denying this petition because the most recent round of eligibility for the Social Equity program concluded in June. It's too soon to tell if changes are needed," Jacobs said, noting multiple rounds of surveys, public comment, draft rule postings and two public hearings had already taken place.

Jacobs told the board the petition, submitted Sept. 29 by David Rose on behalf of Duchy LLC, asked to change WAC 314-55-570 to permit unrestricted transfer, sale or other conveyance of social equity licenses. Jacobs said reopening that extensive and recently completed rulemaking would not be an effective use of LCB rulemaking resources and that statute or future legislation could better address outstanding concerns. "Therefore, for all the reasons discussed, the director's office is recommending that the board deny the petition for rulemaking submitted by David Rose on September 29," he said.

A board member moved to deny the petition and the motion was seconded and recorded as carried. The transcript records the motion and second but does not include a roll-call vote tally; the board followed staff recommendation to deny.