WSLCB - Board Meeting
(February 17, 2021)

Here are some observations from the Wednesday February 17th Washington State Liquor and Cannabis Board (WSLCB) Board Meeting.

My top 3 takeaways:

• Board members approved a staff suggestion to begin a rulemaking project to revise the manner in which the agency conducts criminal history reviews of cannabis license applicants.
  • Policy and Rules Coordinator Casey Schaufler previously talked about the proposal, which would support the agency’s social equity endeavors, at the February 16th Board Caucus.
    • Learn more about WSLCB involvement with the Washington State Legislative Task Force on Social Equity in Cannabis (WA SECTF).
  • Criminal History (audio - 2m, Rulemaking Project). Schaufler briefed on the CR-101 enabling revisions to WAC 314-55-040 on “criminal history background checks” to “evaluate rules regarding the criminal history of cannabis license applicants” whom the agency had authority over after passage of initiative 502.
    • Schaufler discussed the history of the rule section, reporting it was “established in late 2013” ahead of the first cannabis license application window “and the most recent revision occured in early 2016.” The only substantive change became effective in June 2015, making the “Exception to criminal history point assignment” permanent.
    • Schaufler said the rulemaking project was needed “in order to review current criminal history background check standards and criteria in an effort to remove unnecessary barriers to entry in the legal cannabis market by individuals disproportionately impacted by cannabis criminalization.” Board Member Russ Hauge “happily” moved approval and received unanimous support.

• With the Board’s adoption, Policy and Rules Coordinator Casey Schaufler completed the rulemaking project on cannabis vapor products required by 2020 legislation.
  • The rulemaking to implement HB 2826 came after the agency hosted two listen and learn forums in September 2020. In December, Schaufler described the addition of definitions to WAC 314-55-010, creation of a new section “outlining the Board’s processes for regulating cannabis vapor products,” and codification of “currently active” emergency rules requiring ingredient disclosure to the Washington State Department of Health (DOH). No one signed up to testify on the proposed rules during a February 3rd public hearing. 
  • HB 2826 Implementation (audio - 4m, Rulemaking Project). Schaufler told the Board that the legislation encoded in RCWs 69.50.101, 327, and 342 dealt with cannabis vapor items in response to “an outbreak of lung injuries associated with individuals who consume [tetrahydrocannabinol] THC or nicotine vapor products.” 
    • He then outlined the CR-103’s new definitions, a new rule section on “the Board’s processes for regulating cannabis vapor products,” and another new section on ingredient disclosure forms which were “currently active” since the passage of emergency rules in October 2019. 
    • Next, Schaufler went over the memorandum on background, scope, previous agency actions on the subject, as well as the Washington State Board of Health (SBOH) adoption of permanent rules banning vitamin E acetate in October 2020.
    • He said once effective, the new rules “will require processors and producers to disclose all compounds used to produce, or added to marjuana vapor products.” This would result in “administrative costs for licensees, but is not expected to exceed any of the thresholds for more than minor costs as defined under the Regulatory Fairness Act.” Otherwise, rule changes wouldn’t “alter the license application process” and both public comments received on the CR-102 had been addressed by staff.
    • Schaufler concluded, “If approved, this CR-103 will be filed with the [Washington State] Office of the Code Reviser today and become effective” on March 20th. Having no questions, the Board unanimously adopted the rule changes.

• Director Rick Garza uncharacteristically signed up to offer public comment to talk about Jane Rushford’s tenure with the agency during what was revealed to be her final board meeting as Chair.
  • Garza said it was the “last board meeting” for Rushford, who announced her decision to leave after her six-year term in December 2020. WSLCB leadership “paid tribute to the years that Jane has been with us” during the previous day’s Management Team meeting. Thanking her, Garza conveyed staff comments about Rushford’s style as one of “grace,” “support,” “transparency and openness," as well as "respect and courtesy" she’d shown everyone. He said her encouragement had been “something that, that people will hold onto and I think that was really important to our employees.” He called her an “example and role model for the culture we want to build in the organization.”
  • In addition to being an able administrator, Rushford was “always looking forward to the future” he said, highlighting her collaborative Cannabis 2.0 campaign, recent board priorities, and progress around “changes that we all think are important.” Garza reflected on their work in government, which predated her time as Board Chair, saying he’d miss her, while suspecting “you won’t retire because there’s other endeavors for you to be involved in.” He thanked her one last time on behalf of the agency leadership, staff, “and our stakeholders, too” for her contribution to WSLCB (audio - 5m).
  • At times a bit overcome with emotion, Rushford thanked Garza for his “generous comments...I just don't have the appropriate words to share with you and everyone in the organization how meaningful and enriching this has been." She promised she would “miss you all, and will be forever appreciative” (audio - 1m).