july 2018 bar bulletin
By Dominique R. Scalia
The Washington State Liquor and Cannabis Board (LCB) recently closed the public comment period on a proposed omnibus rulemaking impacting many aspects of the cannabis industry. The rule includes one new section dedicated to addressing receiverships of licensed cannabis businesses.
Regulations on that topic are needed. The proposed rule, however, would dramatically restrict receivers’ ability to operate in the industry, and would likely also have a chilling effect on their willingness to do so.
For the cannabis industry, receiverships are an especially important tool for both licensees and their creditors. Across the country, federal bankruptcy has been...