WSLCB - Board Meeting
(February 3, 2021)

Here are some observations from the Wednesday February 3rd Washington State Liquor and Cannabis Board (WSLCB) Board Meeting.

My top 3 takeaways:

• The public hearing on proposed rules for the HB 2826 Implementation rulemaking project was short as no one signed up to testify.
  • Policy and Rules Coordinator Casey Schaufler summarized the scope of the rulemaking project as adding definitions and new sections on cannabis vapor products and ingredient disclosure (audio - 3m).
  • Schaufler previously stated he expected to ask the Board to adopt final rules as part of a CR-103 package on February 17th.

• Shawn DeNae Wagenseller offered public comment on “the unintended consequences of cannabinoids coming into the system” from “huge amounts of hemp biomass” (audio - 3m, written comments).
  • Wagenseller, Co-Owner of tier 2 producer/processor Washington Bud Company, claimed 502 processors were “not only able to extract just CBD, but all the other cannabinoids: CBG, CBN, you know, on and on and on, there’s 144 cannabinoids.” Wagenseller noted, “it’s coming into competition in my licensed business. I haven’t been able to sell bulk biomass sugarleaf trim since October, since the hemp and THC harvest last fall.” She indicated, “I used to get $600 a pound for that. I can’t sell that for $100 a pound right now.”
  • Wagenseller added that “not only are other cannabinoids being extracted, but then they can go through a chemical process to create Delta-8, which you may or may not have heard of. It’s the new big deal that gives you the feeling of THC without it being THC from what I understand. And Delta-8’s byproduct is psychoactive THC from what I understand.”
    • During the previous day’s Board Caucus, Policy and Rules Manager Kathy Hoffman provided an update on her work crafting a formal Policy Statement on Delta-8-THC.
  • Wagenseller concluded, “So, we really need to change this. I don’t know if it’s gonna take a rulemaking change or a legislative change. But for me to have to go through all the regulations that we go through and all of the added expense that we go to create this highly regulated crop that is a high value crop - to put in low grade hemp biomass into the system that I now have to compete against - it’s just not fair. It’s just unfair competition.”
  • Board Chair Jane Rushford acknowledged “this is important information” and indicated Schaufler would follow up.

• Washington SunGrowers Industry Association (WSIA) Executive Director Crystal Oliver offered feedback to the Board after a strange incident revealed differing expectations about WSLCB Policy and Rules Manager Kathy Hoffman’s new deliberative dialogue meeting format.
  • Hoffman had become known for introducing new community and stakeholder outreach techniques such as the listen and learn forums, and continued that innovation in 2021 by introducing deliberative dialogue sessions. The first event was hosted on January 28th to garner the perspectives of patients and consumers and hear underlying concerns which motivated the Quality Control Testing and Product Requirements rulemaking project. The second event in the series on Thursday February 4th would bring together a panel of licensees, including several producers and processors who were also WSIA members.
  • It’s Cannabis Observer’s understanding that WSIA staff responded to calls for help from its members who were selected by WSLCB staff to be panelists or alternates by organizing a call to answer questions and prepare the individuals for a three hour moderated discussion and public forum. This action was brought to the attention of Hoffman by a third party, and Hoffman responded by contacting Oliver on Tuesday to express concerns. Oliver’s public comment to the Board followed on Wednesday.
  • In her comment, Oliver acknowledged the importance of the QC rulemaking to “Washington’s independent cannabis farmers.” She indicated WSIA helped promote the deliberative dialogue sessions and the opportunity for individuals to apply to be a panelist. Oliver said, “These panelists wanted help from their trade association” and asserted “If members of the Washington Sungrowers Industry Association or network reach out for help understanding an issue and how to best advocate for farmers using a platform they have been provided we are going to get those folks together to talk and we’re going to support them in any way we can.” In conclusion, Oliver said, “We did not realize that our actions were not in the spirit of the deliberative dialogue process. The panelist expectations were not clearly laid out in the selection e-mails they received. Had we known that freedom of association within our own organization was prohibited under the deliberative dialogue process we never would have scheduled those meetings” (audio - 2m, written comments).
  • Board Chair Jane Rushford asked Hoffman to “clarify or underscore a couple of things related to this.” Hoffman said the agency had attempted to communicate a ground rule that “all participants speak for themselves and not as representatives of others’ interests.” She said panelists were not informed of the identity of other panelists and were provided a list of questions in advance with instructions to contact her if they had follow up questions. Hoffman indicated the licensee panel would proceed “but, it’s going to be a challenge given, um, the concerning activity that happened with this particular panel” (audio - 2m).
  • The QC testing deliberative dialogue panel and question and answer session was scheduled for Thursday February 4th at 1:30pm via WebEx.