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No.

22-35647

IN THE UNITED STATES COURT OF APPEALS


FOR THE NINTH CIRCUIT

JAMES K. SHELTON, BEN SHELTON III AND SAMI SAAD

Plaintiffs-Appellants,

v.

LIQUOR AND CANNABIS BOARD


OF THE STATE OF WASHINGTON ET AL.,

Defendants-Appellees.

THIRD SUPPLEMENTAL REPLY BRIEF SHOWING MORE


BOGUS DENIALS OF SOCIAL EQUITY APPLICATIONS
FOR FRIENDS OF CHRISTOPHER KING, J.D.

On Appeal from the United States District Court


Western District of Washington
No. C22-5135 BHS

______________________________
James Kevin Shelton et al.
22832 26th Ave S.
Des Moines WA 98198

APPELLANTS PRO SE

1
NOW COME PLAINTIFFS-APPELLANTS to note that the Sheltons have
been involuntarily removed from the so-called cannabis social equity
program and left without any clear explanation as to why, thus making any
meaningful appeal virtually impossible.
That’s correct. Read the attached Decision and ask yourself exactly
what the Shelton applicants allegedly failed on: The Court will read it back
and forth, forth and back and have no more Answer than Mr. Shelton, Tamara
Barger (the WSLB Licensing wonk in the email chain) or Mr. King, as noted in
the excerpted email chain below, with the complete email chain available at
Oral Argument if necessary. Ms. Barger flat out stated “that is information I
do not have… you can do a public records request.” See Decision, Appendix A.
Verbatim Summary of October 23, 2023 Email Discussion with WSLCB
on Shelton Brothers Cannabis Social Equity Denial Appeal:

The Lights Are On But There is No One Home


Procedural and Substantive Due Process Denied.

On Friday, October 20, 2023 at 11:34:43 AM PDT, Licensing Appeals (LCB)


<licensingappeals@lcb.wa.gov> wrote:

Good morning,

Attached is the Statement of Intent to Withdraw and a Request for Hearing


related to your Social Equity Cannabis Retailer license application.

*********

From: James s <jameskshelton@yahoo.com>


Sent: Monday, October 23, 2023 11:10 AM

Greetings Tamara,

After reviewing the hearing request documents, I do not see the reason for
the withdrawal of my social equity application.

Will You/WSLCB please provide me with 1 of the 3 requirements that my


application was withdrawn for, please. (So I know what to appeal)

2
Warmest Regards,
James k Shelton

*********

From: Licensing Appeals (LCB)


Sent: Monday, October 23, 2023 11:26 AM

Good morning, James.

I am only able to tell you that the application was withdrawn due to you not
meeting at least two of the three minimum requirements to be scored. I am
not able to tell you what those requirements were/are as I do not know that
information. That is a question for our Cannabis Social Equity Unit. I have cc’d
them on this email for you. Someone from that department will be in contact
with you.

Sincerely,

Tamara Barger (she/her)

*********
From: Christopher King <kingcast955@icloud.com>
Subject: Re: #435783 Greenwood Cannabis Company Statement of
Intent to Withdraw and Hearing Request Form
Date: October 23, 2023 at 12:01:45 PM PDT
To: James s <jameskshelton@yahoo.com>
Cc: "Licensing Appeals (LCB)" <licensingappeals@lcb.wa.gov>

Good Afternoon to All:

Yeah... I took a look at it and I can't figure out any precise reason for the
Decision either.
https://www.scribd.com/document/679139084/Kevin-2023-WSLCB-
Lottery-435783-Greenwood-Cannabis-Company-Intent-to-Withdraw

Obviously in order to commence a well-principled Appeal a would-be


participant (and former Black Pioneer stakeholder mind you) needs a well-
principled Decision with enough clarity to put him on Actual Notice of alleged
basis for the Decision from which he appeals.
Best regards,

Christopher King, J.D.

3
*********

From: "Licensing Appeals (LCB)" <licensingappeals@lcb.wa.gov>


Subject: RE: #435783 Greenwood Cannabis Company Statement of
Intent to Withdraw and Hearing Request Form
Date: October 23, 2023 at 12:14:36 PM PDT
To: Christopher King <kingcast955@icloud.com>, James s
<jameskshelton@yahoo.com>
Cc: "Licensing Appeals (LCB)" <licensingappeals@lcb.wa.gov>

Good afternoon,

Per my last email, that is information that I do not have. I cc’d the Cannabis
Social Equity Unit on my last email response, and they will be able to help you
further with your question.

Sincerely,

Tamara Barger (she/her)

*********
From: Christopher King <kingcast955@icloud.com>

Subject: Re: #435783 Greenwood Cannabis Company Statement of


Intent to Withdraw and Hearing Request Form
Date: October 23, 2023 at 12:33:21 PM PDT
To: "Licensing Appeals (LCB)" <licensingappeals@lcb.wa.gov>
Cc: James s <jameskshelton@yahoo.com>

I see.

Well that's interesting because one would *THINK* that information should
be readily discernible somewhere in the file. But then again I had thought that
#WSLCB would have no problem providing a public CV for its new Director
either but somewhere I must have been misguided on that as well: All I got
was giant redactions.

Here, take a look on WSLCB's own YouTube Channel


https://www.youtube.com/watch?v=D5jq1lY4frc&t=1826s

4
https://www.youtube.com/watch?v=IB4imHahC50&t=2065s

https://youtu.be/j7OmFnDKLNs?si=U6v_kanxLmNyFNId&t=1529

But I digress.

As a Washington Resident I look forward to seeing what WSLCB has to say.

Mr. Shelton, what say you?

Best regards,

Christopher King, J.D.


617.543.8085m

5
*********
From: Barger, Tamara (LCB) <tamara.barger@lcb.wa.gov>
To: Licensing Appeals (LCB) <licensingappeals@lcb.wa.gov>; James s
<jameskshelton@yahoo.com>; Licensing Social Equity (LCB)
<licensingsocialequity@lcb.wa.gov>
Sent: Monday, October 23, 2023 at 01:11:17 PM PDT
Subject: RE: #435783 Greenwood Cannabis Company Statement of Intent to
Withdraw and Hearing Request Form

Hi James,

You can also do a public records request for the documents that you
submitted to Ponders Diversity Group and the Documents that they returned
regarding your application. The directions are below.

Important note: The WSLCB has automated the Public Records Requests
process. You may now submit your request through the public records portal
located on our webpage rather than by email. This will ensure proper
tracking, timely processing, and to avoid unintentional delays in processing
your request.

Sincerely,

Tamara Barger (she/her)

*********
From: Christopher King <kingcast955@icloud.com>
Subject: Re: #435783 Greenwood Cannabis Company Statement of
Intent to Withdraw and Hearing Request Form
Date: October 23, 2023 at 1:53:31 PM PDT
To: James s <jameskshelton@yahoo.com>
Cc: tamara.barger@lcb.wa.gov

How is he supposed to do an RCW §42.56 Request in time to prosecute an


Appeal?

That is absurd.

And oh, by the way I already have filed such a request for my own review....
and as usual, #WSLCB proceeds at a niggardly pace in that regard.

Best regards,
Christopher King, J.D.

6
There is more:

1. The Non-Appearance of WSLCB Board Director William N. Lukela.

The WSLCB refuses to provide the CV or any interview notes or


anything about its quasi-new Director William N. Lukela, as noted in a June 1,
2023 Press Release yet he has not made one single appearance at a WSLCB
Board Meeting even though Mr. King has celebrated him as a pioneer who
potentially started a Social Equity Loan program in Colorado. See below:
https://lcb.wa.gov/pressreleases/lcb-hires-william-n-lukela-as-agency-
director

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https://www.youtube.com/watch?v=D5jq1lY4frc&t=1809s
LCB Board Meeting September 13, 2023

2. Arbitrary and Capricious Treatment for Non-Black (Korean) Licensees.

The latest information informs the complete lack of integrity in this


entire system. While all of this is ongoing they are giving completely Arbitrary
and Capricious rewards for non-Black (Koreans) for simply showing up to a
meeting:

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ㅜ인리세에뇌업뇌(뇌& 이인이)피 거&인구 인디이0뇌의

• 박용국), 한식진흥원 등이 오는 23일 오전 10시부터 오후
2시까지 턱윌라 컴포트 슈츠에서 '워싱턴주 한인상공인을 위한 세미나'를 개최한다.
이번 세미나에는 시애틀총영사관은 물론이고 보건국, 주류국, 경 제서비스국, 소수민족 및 여성사업국,
주지사 법률국 등이 총출동 해 한인상공인들에게 유익한 각종 정보를 제공한다.
우선 보건국 인스펙션시 최우수 등급을 받을 수 있는 방법을 소개 하고 식당 등에서 주류를 제공할때
유의해야 할 사항도 알려준
다.
또 스스몰 비지니스에서 직원 고용시 반드시 알아야할 사항 소정 부 일과 관련된 공개 입찰 참여 방법 스스몰
비지니스를 위한 소
액 대출(5,000달러에서 75만 달러) 스대출시 이자율 2% 낮추는 법 스스몰 비지니스 라이센스, 세금 보고 관련
노하우를 알려준 다.
이와 더불어 스 하나의 웹사이트로 여러 정부기관 정보 검색하는 방법 소비지니스를 위한 다양한 대출 소개,
비지니스를 효율적으 로 효과적으로 운영할 수 있는 정보 소스 소개 등도 이뤄진다.
이번 세미나를 주관하고 있는 한식세계화협회 이진성 회장은 “워 싱턴주 주류국은 이번 세미나에 참석해
교육을 받는 한인 업체들 이 향후 주류단속에 걸릴 경우 한 번은 경고로 감면해주는 방안도 추진하기로
했다”고 설명했다.
이 회장은 "시애틀 등 워싱턴주내 한인 식당들이 이번 세미나에 참석해 보건국 인스펙션에서 엑설런트 등급을
받을 수 있는 노하 우를 배우시길 바란다”면서 "이번 세미나 이후에도 한식세계화협
_ 회가 자체적으로 고용한 컨설턴트가 한인 식당들을 돌며 좋은 등 급을 유지할 수 있도록 도와줄
방침"이라고 말했다.
이 회장은 "이번 세미나를 통해 한인들이 운영하는 식당들은 모두 위생등급에서 최우수 등급을 받아 한인들이
취급하는 K-푸드는 모든 위생적이고 깨끗하다는 이미지를 갖게 되길 바란다”고 말했 다.
~ seattlen.com

Sent from my iPhone

• Park Yong-guk), Korean Food Promotion Agency, etc. from 10 a.m. to p.m.
on the 23rd.

‘Seminar for Korean business owners in Washington State’ will be held at


Tuckwilla Comfort Suits until 2 p.m.

At this seminar, not only the Consulate General in Seattle, but also the
Department of Public Health, Department of Alcoholic Beverages, Department
of Economic Services, Department of Minorities and Women's Business, and
Governor's Legislative Department are present to provide various useful
information to Korean business owners.
****
First, it introduces how to get the highest grade during a public health
department inspection and also tells you what to keep in mind when serving
alcohol in restaurants.

Also, things you must know when hiring employees in a small business. How
to participate in public bidding related to certain work.

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It provides know-how on how to lower the interest rate by 2% on small loans
(from $5,000 to $750,000), small business licenses, and tax reporting.
In addition, information on how to search for information on multiple
government agencies through one website, introduction of various loans for
consumer businesses, and information sources that can run a business
efficiently and effectively are also provided.
****
Lee Jin-seong, president of the Korean Food Globalization Association, which
is hosting this seminar, said, “The Washington State Liquor Bureau has
decided to push for a plan to give Korean businesses that attend this seminar
and receive training a one-time warning and discount if they are subject to
liquor control in the future.” explained.

Chairman Lee said, “I hope that Korean restaurants in Washington state,


including Seattle, will attend this seminar and learn the know-how to receive
an Excellent grade in the Department of Public Health inspection.”
“We plan to have a consultant hired by the association to tour Korean
restaurants and help them maintain good ratings,” he said.

Chairman Lee said, “Through this seminar, I hope that all restaurants run by
Koreans will receive the highest hygiene rating and that K-food served by
Koreans will have the image of being hygienic and clean.”

*******
The approximate translation includes what is arguably an Affirmative
Action plan to give Koreans what Blacks in cannabis never received, i.e. a
break; a warning:
“The Washington State Liquor Bureau has decided to push for a
plan to give Korean businesses that attend this seminar and
receive training a one-time warning and discount if they are
subject to liquor control in the future.”

…….as noted by the Art West v. WSLCB RCW §42.56 lawsuit settlement from
the time he noted that the WSLCB Agents were actively planning to
discriminate against Blacks and predominately Black cannabis operations in
Black neighborhoods. Naturally the major press does not mention this aspect
of things but we do because it is a fact that other lawyers have noted, as noted
in this case on repeated occasion.

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https://www.seattletimes.com/seattle-news/liquor-board-pays-192k-to-
make-public-records-gadfly-go-
away/#:~:text=Washington%27s%20Liquor%20Control%20Board%20has,v
iolations%20at%20various%20public%20agencies.

Washington’s Liquor Control Board has paid nearly $200,000 to make a


public records gadfly go away.
Arthur West, of Olympia, is known for filing records requests and complaints
of open meetings law violations at various public agencies. In one recent
example, he said, he collected $187,000 from the Port of Olympia to settle
lawsuits over open meetings violations.
This time, it’s the liquor board paying out. He accused the board of breaking
the state’s open meetings law as it began working on rules for the new legal
marijuana industry. A Thurston County judge agreed, finding 17 violations.
In a settlement late last month, the board agreed to pay West $192,000 to
withdraw all of his public records requests and legal actions.
Beyond that, West is agreeing not to file any future records requests or
lawsuits relating to the board’s oversight of the recreational or medical
marijuana markets…..1
The crux of all of this has been noted in prior occasion but bears
repeating as heard in a video with the real Black Excellence in Cannabis as it
existed prior to Peter Manning and other pirating it away from founder Aaron
Barfield (seen chatting with Mr. King).

1They paid him off not to talk about the injustice to Negroes and now he brags about his lakefront
home he bought from agreeing to turn his back on them. Sad but true.

11
https://www.youtube.com/watch?v=hUHPahv9exI&t

Be that as it may, Respondents’ conduct is arguably in violation of


Decades-Old Decisional Law banning Affirmative Action in Washington (I-
200, 1998 et seq. ) and of course more recently at SCOTUS as noted by the
Washington State Standard June 29, 2023 as Asians and other Non-Blacks
continue to operate at Vincere’s address and others.
https://washingtonstatestandard.com/2023/06/29/what-the-us-supreme-
court-decision-rejecting-affirmative-action-means-in-
washington/#:~:text=Affirmative%20action%20in%20Washington's%20pu
blic,law%20voters%20approved%20in%201998.

The state shall not discriminate against, or grant preferential treatment


to, any individual or group on the basis of race, sex, color, ethnicity, or
national origin in the operation of public employment, public
education, or public contracting.

12
CONCLUSION

This entire process has been, and continues to be, a complete sham just
like the first “Lottery” as succinctly stated by NAACP Economic Chair Darrell
Powell:
https://youtu.be/3nXaPSdoyEo?si=7Hi6LtW3qoD6cuc8&t=231

It is patently obvious that racism and cronyism in violation of, inter


alia, the First Amendment Inalienable Rights to Petition the Government and
of Association, continues unabated. Should this Court decline to issue
Remand it too will be just another effective cog in the hegemonic machinery
that intentionally cripples Blacks in this Country, the Land of the Free. The
choice is yours. We will be waiting right here to see which way you go.

13
14
CERTIFICATE OF SERVICE

I served a true and accurate copy of this Third Supplemental Authority to:

Jessica Leiser, WSBA# 49349

Ghazal Sharifi, WSBA# 47750

Assistant City Attorney

Jessica.Leiser@seattle.gov
Ghazal.Sharifi@seattle.gov

Leah E. Harris, WSBA# 40815


Jonathan E. Pitel, WSBA# 47516
Assistant Attorney General
1125 Washington St. SE
Olympia, WA 988504-0110
Leah.harris@atg.wa.gov
Jonathan.pitel@atg.wa.gov

On this 23rd Day of October, 2023

_________________________________
James Kevin Shelton

15
October 20, 2023

James Kevin Shelton


Greenwood Cannabis Company
22832 26TH Avenue South
Des Moines, WA 98198

RE: License No.435783 Social Equity Cannabis Retailer


UBI #: 605-139-417-001-0001
LCB No. M-27,893

Dear Applicant:

Enclosed for service upon you is the Statement of Intent to Withdraw the Social Equity Program
Cannabis Retail Application and a Request for Hearing form related to the withdrawal of your cannabis
application.

If you wish to request a hearing, you must complete the enclosed Request for Hearing Form. We must
receive it by the close of business, no later than November 9, 2023, twenty (20) calendar days from the
date this notice was emailed to you. If you request a hearing within the time limit, you will be notified at
least seven (7) days before the hearing of the time and place.

If you do not request a hearing within the time limit, you will lose your right to a hearing and a decision
will be implemented without input from you.

If you have questions concerning these documents, please contact me at the number below or send an
email to licensingappeals@lcb.wa.gov. The Liquor and Cannabis Board recognizes that this is a very
serious matter and will consider any information you provide.

Sincerely,

Tamara Barger
Licensing Adjudications Coordinator
Licensing and Regulation Division
360-664-1618
licensingappeals@lcb.wa.gov

Enclosures: Statement of Intent to Withdraw


Request for Hearing Form

cc: Adjudicative Proceedings Coordinator, WSLCB Board Office


Adjudicative Program Specialist, Board Office
File Copy

PO Box 43098, Olympia WA 98504-3098, (360) 664-1600,


www.lcb.wa.gov
STATE OF WASHINGTON
WASHINGTON STATE LIQUOR AND CANNABIS BOARD

In the Matter of the Withdrawal of the Social LCB No. M-27,893


Equity Cannabis Retail Application for:
STATEMENT OF INTENT TO
James Kevin Shelton WITHDRAW SOCIAL EQUITY
Greenwood Cannabis Company CANNABIS RETAIL APPLICATION

License No. 435783


UBI: 605-139-417-001-0001

The authority of the Washington State Liquor and Cannabis Board in this proceeding is based on

the provisions of Title 69.50 Revised Code of Washington (RCW) and Title 314-55 Washington

Administrative Code (WAC). Based upon the facts available as of the date of this Statement of Intent, the

Director of Licensing, through their designee, the Compliance and Adjudications Manager, Nicola Reid,

initiates this proceeding and finds as follows:

1. APPLICANT HISTORY

1.1 Applicant.
James Kevin Shelton is a Sole Proprietor that applied for a Social Equity Cannabis Retail
License. The applicant has the following addresses on file:

Mailing Address:

22832 26TH Avenue South

Des Moines, WA 98198

Email Address:

jameskshelton@yahoo.com

2. SUMMARY OF RELEVANT FACTS

2.1 An application for a Social Equity Cannabis Retail license was received for Greenwood

Cannabis Company. During the application review process, Ponder Diversity Group determined
the following:
1) The social equity applicant didn’t meet at least two of the three minimum requirements
to be scored.

3. APPLICABLE AUTHORITIES

STATEMENT OF INTENT TO WITHDRAW - LCB No.M-27,893, Greenwood Cannabis Company


Page 1 of 11
3.1 Application for License.
Pursuant to RCW 69.50.331:

(1) For the purpose of considering any application for a license to produce, process, research,
transport, or deliver cannabis, useable cannabis, cannabis concentrates, or cannabis-infused
products subject to the regulations established under RCW 69.50.385, or sell cannabis, or for the

renewal of a license to produce, process, research, transport, or deliver cannabis, useable


cannabis, cannabis concentrates, or cannabis-infused products subject to the regulations
established under RCW 69.50.385, or sell cannabis, the board must conduct a comprehensive,

fair, and impartial evaluation of the applications timely received.


3.2 Cannabis retailer licenses—Social equity applicants—Rules—Definitions.
Pursuant to WAC 314-55-010: The following definitions apply for the purpose of this chapter in
addition to the definitions provided in RCW 69.50.101.
(1) "Applicant" or "cannabis license applicant" means any person or business entity who is
considered by the WSLCB as a true party of interest in a cannabis license, as outlined in
(26) "Member," except as that term is used in relation to registered cooperatives, means a
principal or governing person of a given entity including, but not limited to: LLC
member/manager, president, vice president, secretary, treasurer, CEO, director, stockholder,
partner, general partner, limited partner. This includes all spouses of all principals or governing
persons named in this definition and referenced in WAC 314-55-035.
(42) "WSLCB" means the Washington state liquor and cannabis board.
3.3 General information about cannabis licenses.

Pursuant to WAC 314-55-015:


(1) To be issued and maintain a license to produce, process, or sell cannabis at retail, a person or
entity applying for a cannabis license must meet all of the qualifications described in this
chapter.
3.4 Cannabis license qualifications and application process—Licensing change requests.
Pursuant to WAC 314-55-020: Each cannabis license application is unique and evaluated

individually. The board may inquire and request documents regarding all matters in connection
with the cannabis license application.

STATEMENT OF INTENT TO WITHDRAW - LCB No.M-27,893, Greenwood Cannabis Company


Page 2 of 11
(1) Cannabis license qualification criteria and application process. To be issued a license, all
cannabis license applicants must meet the qualifications required by the board. The board will

verify that the proposed business meets the minimum requirements for the type of cannabis
license requested. The qualifications and application process for a cannabis license include:
(b) Inquiry to verify the source of funds used to acquire an existing business and start the

business, the applicant's right to the real and personal property, and to verify the true party or
parties of interest.
3.5 Qualifying for a cannabis license.

Pursuant to WAC 314-55-035: A cannabis license must be issued in the name(s) of the true
party(ies) of interest. The board may conduct an investigation of any true party of interest who
exercises control over the applicant's business operations. This may include financial and
criminal background investigations.
(1) True parties of interest. True parties of interest must qualify to be listed on the license, and
meet residency requirements consistent with this chapter. For purposes of this title, "true party
of interest" means:

Entity True party(ies) of interest

Sole proprietorship Sole proprietor

3.6 Withdrawal, denial, suspension, or cancellation of a cannabis license application or license.


Pursuant to WAC 314-55-050:
(1) The board has the discretion to withdraw, deny, suspend, or cancel a cannabis license
application or license consistent with RCW 69.50.331, for reasons including, but not limited to,

the following:
(a) Not meeting the initial or ongoing qualifications, requirements, or both for a specific
cannabis license, as outlined in this chapter and chapter 69.50 RCW;

3.7 Cannabis retailer license—Privileges, requirements, and fees.


Pursuant to WAC 314-55-079:
1) A cannabis retailer license allows the licensee to sell only useable cannabis, cannabis

concentrates, cannabis-infused products, cannabis paraphernalia, and lockable boxes to store


cannabis at retail in licensed retail outlets to persons 21 years of age and older, except as

STATEMENT OF INTENT TO WITHDRAW - LCB No.M-27,893, Greenwood Cannabis Company


Page 3 of 11
allowed for persons under 21 years of age consistent with RCW 69.50.357 and WAC 314-55-
080.
(2) The board may accept applications for cannabis retail licenses at time frames published on
its website at lcb.wa.gov. Using estimated consumption data and population data obtained from
the office of financial management (OFM) population data, the board will determine the
maximum number of cannabis retail locations per county.
(a) The number of retail locations will be determined using a method that distributes the number
of locations proportionate to the most populous cities within each county and to accommodate
the medical needs of qualifying patients and designated providers. Locations not assigned to a
specific city will be at large. At large locations can be used for unincorporated areas in the
county or in cities within the county that have no retail licenses designated.
Consistent with WAC 314-55-570 (4)(d), social equity licenses that are currently designated to
specific cities may be located anywhere within the county in which the city is located. A license
may not be transferred outside of that county.
(b) The number of retail licenses determined by the board can be found on the board website at
lcb.wa.gov.
(3) Any entity and/or principals within any entity are limited to no more than five retail cannabis
licenses.
3.8 Social equity in cannabis program.
Pursuant to WAC 314-55-570:
(1) Definitions.
(a) "Disproportionately impacted area (DIA)" means a census tract within Washington state
where community members were more likely to be impacted by the war on drugs. These areas

are determined using a standardized statistical equation to identify areas of high unemployment,
low income, and demographic indicators consistent with populations most impacted by the war
on drugs, including areas with higher rates of arrest for drug charges. The board will provide

maps to identify disproportionately impacted areas. The maps will reflect census tracts from
different time periods to account for gentrification.
(b) "Family member" means:

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(i) A biological, adopted, or foster child, a stepchild, a child's spouse, or a child to whom the
applicant stands in loco parentis (in place of the parent), is a legal guardian, or is a de facto
parent, regardless of age or dependency status;
(ii) Grandchild, grandparent, parent, or sibling of a child as defined in (b)(i) of this subsection;
(iii) Spouse or domestic partner;
(iv) Any individual who regularly resides in the applicant's home or where the relationship
creates an expectation that the applicant care for the person and that individual depends on the
applicant for care, or that the individual care for the applicant and that the applicant depends on
the individual for care.
(c) "Median household income" means the most recent median household income within the
state of Washington as calculated by the United States Census Bureau.
(d) "Person" means a real human being, distinguished from a corporation, company, or other
business entity.
(e) "Preliminary letter of approval" means an approval letter issued to a social equity program
applicant for purposes of securing a grant from the department of commerce and a location and
other necessities to complete the licensing process.
(f) "Social equity program applicant" means a person(s) who meets the requirements of the

social equity program.


(g) "Social equity contractor" means a third party responsible to review and score social equity
program applications.
(h) "Social equity licensee" means a person or entity that holds a social equity cannabis license
or any person or entity who is a true party of interest in a social equity in cannabis license as
described in WAC 314-55-035.

(i) "Social equity plan" means a plan that addresses the following elements including, but not
limited to:
(i) A description of how issuing a cannabis retail license to the social equity applicant will meet
social equity goals as described in statute;
(ii) The social equity applicant's personal or family history with the criminal justice system,
including any offenses involving cannabis; and

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(iii) Business plans involving partnerships or assistance to organizations or residents with
connections or contributions to populations with a history of high rates of enforcement of
cannabis prohibition.
(j) "Social equity title certificate holder" means a cannabis retail license title certificate holder
that meets the requirements of a social equity program applicant as determined by the social
equity contractor, and is unable to open for business in the city or county where the cannabis
retail license is located.
(2) Social equity applicant requirements.
(a) To be considered for the social equity program under this chapter and RCW 69.50.335, the
following requirements must be met by each applicant:
(b) At least a 51 percent majority, or controlling interest, in the applicant, must be held by a
person, or persons, who has or have resided in Washington state for six months prior to the
application date, consistent with RCW 69.50.331, and meets at least two of the following
qualifications:
(i) Qualification 1: The social equity applicant or applicants have lived in a disproportionately
impacted area in Washington state for a minimum of five years between 1980 and 2010; or
(ii) Qualification 2: The social equity applicant or a family member of the applicant has been

arrested or convicted of a cannabis offense; or


(iii) Qualification 3: The social equity applicant's household income in the year prior to
submitting the application was less than the median household income within the state of
Washington as calculated by the United States Census Bureau.
(3) Social equity application process.
(a) Application window.

(i) The board will open the application window for an initial period of 30 calendar days.
(ii) At its sole discretion, the board may reopen the application window:
(A) After initial evaluation of applications is received and locations are still available; or
(B) If additional allotments become available after the initial application window has closed
pursuant to RCW 69.50.335.
(b) Initial application requirements.

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(i) The social equity application must be submitted electronically through the department of
revenue's business licensing online application system.
(ii) The social equity applicant must apply to the department of revenue's business licensing
service within the 30-day application window. All required information must be completed on
the application and payment must be submitted within the 30-day application window for the
application to be accepted.
(iii) The social equity applicant, whether applying as a person, persons, or entity, may apply for
a cannabis license only once during each application window described in subsection (4)(c) of
this section.
(iv) An application to reinstate the license of a social equity title certificate holder will not be
considered a new social equity license application. The social equity title certificate holder may
submit an application for a social equity license and an application to reinstate their existing
license through the social equity program.
(v) A location address is not required at the time of application.
(c) Social equity contractor review. Once the application window is closed, the social equity
contractor will evaluate and prioritize all applications received within the 30-day application
window.

(i) The social equity applicant must select one county where they wish to operate their business
and notify the social equity contractor of their selection in the form and manner required by the
social equity contractor.
(ii) The social equity applicant must submit documentation verifying the eligibility requirements
described in (c)(D)(viii) of this subsection to the social equity contractor in the form and manner
required by the social equity contractor.

(iii) Examples of documentation that may verify eligibility requirements include, but are not
limited to:
(A) School records, rental agreements, utility bills, mortgage statements, loan documents, bank
records, or tax returns that show the applicant's address(es), or a signed declaration that includes
the applicant's address(es) indicating that the applicant resided in a DIA; or
(B) The applicant's arrest or conviction records, or family member's arrest or conviction records

and an affirmation of the familial relationship signed by the applicant and the family member; or

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(C) The applicant's tax returns demonstrating their income for the prior year; or
(D) Any other documentation that verifies the eligibility requirements described in (c)(D)(viii)
of this subsection.
(iv) If additional materials are needed, the social equity applicant will receive a letter
electronically from the social equity contractor directing the applicant to submit additional
application materials directly to the social equity contractor.
(v) The social equity applicant must submit complete and accurate additional application
materials directly to the social equity contractor within 15 business days of the date of the letter.
It is the responsibility of the social equity applicant to comply with the application requirements
in this section and ensure the application is complete, accurate, and successfully submitted to
the social equity contractor.
(vi) If the application is determined to be incomplete by the social equity contractor, the social
equity applicant will be provided with 14 days to submit a complete application. The social
equity contractor will score the application based on the materials submitted within the time
frame.
(vii) The social equity contractor will review the application materials, including the social
equity plan provided by the social equity applicant to determine if the applicant meets the

requirements of a social equity applicant.


(viii) After the social equity contractor determines that the requirements have been met, the
social equity contractor will score social equity applications using the following scoring rubric
to prioritize social equity applicants:

Social Equity Application Scoring Rubric


Category - Eligibility Requirements Point Scale
1. Lived in a disproportionately impacted area (DIA) 40
1a. How long have you lived in a DIA? 40
5y -10y = 20 points
10 + years = 40 points
2. Convicted of a drug offense? (Self) 10
2a. Convicted of a cannabis offense? (Self) 40
3. Convicted of a drug offense? (Family) 5
3a. Convicted of a cannabis offense? (Family) 5
4. If you were convicted of a cannabis offense, what type of sentence did you receive: 80
Fine = 10 points
Served probation = 20 points
Confined to home = 40 points

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Served time in jail or prison = 80 points
5. Did you or your family member's incarceration keep you from getting employment? 5
6. Did you lose your home or ability to purchase a home or rent a home as a result of your 5
convictions or arrests?
7. Is your household income less than the median household income within the state of 40
Washington as calculated by the United States Census Bureau?
8. Did you own or operate a medical cannabis dispensary or collective garden, licensed as 10
a business, prior to July 1, 2016 (10 points)? 30 in a DIA
or
Did you own and operate a medical cannabis dispensary or collective garden licensed as a
business in a DIA (30 points)?
9. Have you held or do you currently hold 51 percent majority/controlling interest of a 10
state cannabis (marijuana) retailer license?
No = 10 points
Yes = 0 points
Total Maximum Points 310 points

(ix) The social equity contractor will provide the board with a list of eligible and scored social
equity applicants.
(x) Neither the social equity contractor nor its employees shall benefit from any license or
licenses granted as a result of their review.
(d)(i) Board review. Social equity applicants that are scored highest by the social equity
contractor within the county selected by the social equity applicant will be processed by the
board.
(ii) In the event of a tie, the board will use a double-blind lottery conducted by an independent
third party to identify the application(s) that will be processed.
(e) Preliminary letter of approval. Once the social equity applications that will be processed are
identified as described in this section, eligible social equity applicants will be issued a
preliminary letter of approval.
(4) Additional provisions.
(a) Time restrictions. There are no time restrictions for a social equity applicant to select and
secure a location.
(b) Ownership changes. Social equity applicants may not make ownership changes to an
application after the application has been reviewed, scored, and prioritized by the social equity
contractor.
(c) Social equity applicants may apply for a social equity license once per application window.
If a social equity applicant applies more than once, the board will accept only the first
application.

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(d) License mobility. Social equity licenses that are currently designated to specific cities may
be located anywhere within the county in which the city is located. However, the license may
not be transferred outside of that county.
(e) Qualifying for the social equity program will not result in or guarantee cannabis business
license approval. Social equity applicants must meet all license qualifications in WAC 314-55-
077 and this chapter to receive a license.
(f) License transfer and assumption. Licenses awarded under this section may not be transferred
or assumed within the first year of the license being issued. Licenses awarded under this section
may only be transferred to or assumed by individuals or groups of individuals who meet the
definition of a social equity program applicant for a period of five years from the date of the
initial license was approved.
(5) Social equity title certificate holders. A title certificate holder that meets the requirements of
a social equity program applicant as determined by the social equity contractor may reinstate
their retail cannabis license anywhere within the county that they hold their title certificate.
(6) Application withdrawal. The board will withdraw a social equity application if:
(a) The social equity program application or additional materials are determined to be
incomplete or incorrect by the social equity contractor;

(b) The social equity program application materials are not timely received by the social equity
contractor;
(c) The social equity applicant is not selected to continue with the licensing application process;
or
(d) The social equity applicant(s) requests withdrawal of the social equity program application
at any time in the application process. The social equity applicant(s) must request withdrawal in
writing. The voluntary withdrawal of a social equity program application does not result in a
hearing right.

4. REQUEST FOR WITHDRAWAL

The below-signed Compliance & Adjudications Manager of Licensing for the Washington State

Liquor and Cannabis Board, having reviewed WSLCB record systems and documents, particularly the ones

detailed below, but not limited to:

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• Appeal Request, dated September 17, 2023, 1 Pg.
• Notification of Application Withdrawal to Applicant, dated September 17, 2023,
1 Pg.
• AS400 Entity Screen Screenshot, dated September 25, 2023, 1 Pg.
• Application and documents submitted to PDG, multiple dates, N/A Pgs.

And based on those materials, having concluded as set forth above, constitutes grounds for the

withdrawal of cannabis license Social Equity Cannabis Retail application of Greenwood Cannabis

Company.

DATED: 10/20/2023 ________________________________________________


Nicola Reid, Compliance and Adjudications Manager
Licensing & Regulation Division

The Washington State Liquor and Cannabis Board has a policy of providing equal access to its services.

This document was sent electronically to:


EMAIL ADDRESS
jameskshelton@yahoo.com

STATEMENT OF INTENT TO WITHDRAW - LCB No.M-27,893, Greenwood Cannabis Company


Page 11 of 11
STATE OF WASHINGTON
WASHINGTON STATE LIQUOR AND CANNABIS BOARD

In the Matter of the Statement of Intent to LCB No. M-27,893


Withdraw Social Equity Cannabis Retailer
Application for: REQUEST FOR HEARING,
RESPONSE TO STATEMENT OF INTENT TO
James Kevin Shelton WITHDRAW SOCIAL EQUITY CANNABIS
Greenwood Cannabis Company RETAILER APPLICATION
License No. 435783
UBI: 605-139-417-001-0001

Respondent.
Correct Name:
James Kevin Shelton Correct Address:
TO: Greenwood Cannabis Company
22832 26TH Avenue South
Des Moines, WA 98198
Correct Phone:

THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHT TO A HEARING. PLEASE READ


THIS NOTICE CAREFULLY. IF YOU HAVE ANY QUESTIONS ABOUT YOUR LEGAL RIGHTS,
YOU SHOULD CONTACT AN ATTORNEY.

INSTRUCTION: Use this form to request a hearing and respond to the Statement of Intent to
Withdraw in this matter. Correct your name, address, and telephone number above if necessary; enter your
responses below; sign and date this form and return it to:

Board Adjudicative Proceedings Coordinator


Washington State Liquor and Cannabis Board
P.O. Box 43076
Olympia WA 98504-3076
You may also send the hearing request via email to: lcbadjudicationfax@lcb.wa.gov

1. PROCEDURAL RIGHTS

You have the right to be represented by an attorney at your own expense, to subpoena witnesses
and to defend against the denial of your cannabis license application. Chapters 314-42 and 10-08 of the

Washington Administrative Code and Chapter 34.05 of the Revised Code of Washington govern the
conduct of this hearing.

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2. OPPORTUNITY TO REQUEST A HEARING
To request an administrative hearing, you must complete this form and return it to the
Washington State Liquor and Cannabis Board at the above address or email. All hearing requests must be
RECEIVED by close of business no later than twenty (20) calendar days after service upon you. A
document is “served” on the date it is deposited by the Washington State Liquor and Cannabis Board in the
U.S. mail, the date it is hand delivered to you, or emailed to you. If you timely submit a hearing request,
this matter will be referred to the Office of Administrative Hearings to conduct a hearing pursuant to the
Administrative Procedure Act (Chapter 34.05 RCW).
If you fail to request a hearing within the twenty (20) day period, you will lose your right to
a hearing.
3. REQUEST FOR HEARING
INSTRUCTIONS: If you would like to request a hearing, please mark the box below and return
this form within the twenty (20) day period.
We request an administrative hearing in this matter.
4. INTERPRETER REQUEST
INSTRUCTIONS: You may request an interpreter for a primary language other than English
and/or for a hearing or speech impairment. To request an interpreter, complete the information below and
one will be appointed at no cost to you.
We request that a qualified interpreter be appointed to interpret for us or for our witness(es). The
primary language is .

We request that a qualified interpreter be appointed to interpret for us or for our witness(es). The
hearing or speech impairment requires an interpreter able to communicate in the following
language/manner: .

Please sign and date this document.


DATED this day of_____________________, [Document
Date].

_________________________________________
Name/Title (Print)

I. ____________________________________________
Signature

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This document was sent electronically to the following email addresses:

EMAIL ADDRESS
jameskshelton@yahoo.com

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