Concerning employee ownership of licensed cannabis businesses.

HB 1348 allows cannabis businesses in Washington to be fully or partially owned by employee stock ownership plans (ESOPs), enabling employees to gain ownership stakes. It directly affects cannabis businesses seeking licenses and employees participating in ESOPs by changing who must undergo licensing vetting. The key provision revises licensing rules to require only corporate officers/directors of ESOP-owned businesses to be vetted - employees, ESOP administrators, and trustees are exempt from criminal background checks, residency requirements, and other owner-level screenings. This simplifies the licensing process while maintaining oversight of business control. The bill aims to align cannabis business ownership with other industries that use ESOPs for employee engagement and wealth-building.