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Tide Turns Towards Tolerance: Washington Regulatory Enforcement

Tide Turns Towards Tolerance: Washington Regulatory Enforcement

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SB 5318 was signed into law in Washington on May 13, and requires the Washington State Liquor and Cannabis Board (WSLCB) to overhaul its practices when enforcing cannabis regulations. But even before the bill was signed, a look through the WSLCB’s Adjudicative Proceedings Log indicates that the WSLCB had already begun making some changes in how it handled certain license-cancelling administrative violation notices (AVN). In particular, the WSLCB in 2019 has been more willing to agree to levy large financial penalties against cannabis businesses rather than cancel their licenses outright.

Cannabis businesses in Washington are quite familiar with the dreaded “True Party of Interest” AVN, which can be issued for a variety of circumstances including hidden ownership, hidden control, out-of-state ownership, undisclosed financiers, and other issues relating to the overall control or ownership of the business.

Tide Turns Towards Tolerance: Washington Regulatory Enforcement






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