WSLCB - Board Caucus
(March 22, 2022)

Here are some observations from the Tuesday March 22nd Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Due to federal financial restrictions, cannabis retailers were cash-heavy businesses carrying inventory readily resold in illicit markets and had become appealing targets for robberies of increasing frequency and violence.
  • Cannabis was the nation's and world’s most used illicit substance prior to being legalized in Washington and elsewhere. Theft and robbery in prohibited markets had been nearly impossible to quantify, but it had been observed that violence in them is commonplace in part due to there being no legal protection or recourse. Licensed cannabis businesses had been responsible for security and insurance, but as retailers faced federal banking and financial service barriers which push sales almost entirely to cash transactions, a dangerous pattern was becoming apparent.
  • In January 2022, the owners of Uncle Ike's shared a spreadsheet of cannabis store robberies and burglaries in Washington they’d identified dating back to February 2017 which showed 187 crimes at publication time including 29 in January, 30 in February, and 18 in March.
  • SB 5927, "Concerning the safety and security of retail cannabis outlets," was proposed during the 2022 legislative session but not passed by legislators. The bill report described it as mandating “a sentencing enhancement for robbery in the first or second degree of a cannabis retail outlet where the perpetrator committed the robbery as a premeditated act in concert with another individual or individuals.”
    • SB 5927 was initially heard by the Washington State Senate Law and Justice Committee (WA Senate LAW) on January 31st. The sponsor, Senator Jim Honeyford, told colleagues the incidents would “continue unless we take action” and he worried there’d be a “fatal result.”
    • The bill was passed by senators on February 10th, but momentum stopped following a public hearing and recommendation for passage by the Washington State House Public Safety Committee (WA House PS).
      • Representative David Hackney, a WA House PS member, was reported as saying “there are more good bills than there is time to pass them," adding, "Unfortunately, members of Sen. Honeyford’s party chose to take part in a number of lengthy debates that prevented other legislation from being considered."
      • Honeyford placed responsibility with the Democratic Majority, telling KING 5 the party was “more interested in turning people out of prison and reducing penalties than they are of increasing” them. He observed the bill “would only have increased [incarceration] by 12 months.”
    • A budget proviso to fund a state task force to review the problem was approved by senators, but not included in the final budget passed by lawmakers on March 10th.
    • Washington State Liquor and Cannabis Board (WSLCB) board members talked about the bill and potential task force on February 15th and 22nd, as well as during meetings on March 1st, 8th, and 15th.
  • In addition to the continued threat and reality of robberies, at publication time there had been fatalities in multiple circumstances. The traumatic crimes were garnering increased media attention—perhaps unwittingly exacerbating the problem—while reporting on suspects being arrested or charged was comparatively sparse.
    • Tacoma Police reported responding to five robberies at the beginning of February.
    • Q13 FOX covered the topic in a story on February 9th and a spotlight segment on ‘Pot shop robberies’ featuring an interview with wounded Dockside Cannabis budtender Huckleberry Kid.
    • On February 18th, police rammed a car used by a suspect in a robbery of a Lynnwood retailer, and the individual was subsequently accused of first and second degree robbery for two incidents in Snohomish County.
    • On March 16th, police in south Seattle reported arresting two suspected robbers and exchanging gunfire with a third suspected robber, killing him. The surviving 19 and 20-year-old suspects were charged with first-degree robbery, with one also facing a firearms-related charge.
    • On March 17th, an individual associated with a retailer in Covington shot and killed an assailant reported to be “in his late teen's or early 20's.” The article identified the shooter as an employee of the business, though their affiliation wasn’t confirmed and may impact their liability in the event.
      • On February 9th, Board Member Ollie Garrett asked whether employees of a cannabis retailer were allowed to bear a firearm. Director of Communications Brian Smith confirmed RCW 9.41.300(11) authorized weapons for “the proprietor of the premises or his or her employees while engaged in their employment.” However, his impression was that there remained conflict between federal and state law over the types of firearms allowed on licensed premises (audio - 1m).
    • Jordan Brown, a 29-year-old Tacoma budtender, was killed during an armed robbery on March 19th.

• At the caucus, Board Chair David Postman offered condolences to the family of a cannabis retail employee killed in Tacoma, then talked about the pattern of armed robberies and what more could be done to reduce their occurrence (audio - 6m, video).
  • Postman shared his condolences publicly with those grieving the loss of Jordan Brown, a staffer at World of Weed, and the chair said he “spoke to the owner” about the tragedy. Contemplating a “cold-blooded” murder of a co-worker was hard enough for Postman, but---even worse---the killing was “the third shooting death within a four day period, in just the Puget Sound area” involving robberies at cannabis businesses. Postman credited the licensee with supporting “his employees, that’s the most important job right now for him.”
  • “It’s an incredibly violent crime wave,” Postman asserted, “busting in, shooting...up into the ceiling, making people lay down” at gunpoint, “the most traumatic kind of event.” He noted that the board had been talking about the problem and hearing from those affected, “industry experts,” and law enforcement officials.
  • Even though there’d been legislative responses “that didn’t advance,” Postman considered “the one thing that is universal is the need to get…safe banking for the cannabis industry.” He said it was “so, so past due” but acknowledged there’d been “a lot of reasons why it hasn’t happened, I suppose, there’s still some new reasons now.” Yet, until cannabis stores could conduct banking “like any other legitimate business,” Postman asserted, “we’re going to have a problem.” 
    • Federal reform of cannabis law, banking and otherwise, had been a stated priority of U.S. Senate Majority Leader Chuck Schumer since February 2021, and WSLCB leaders talked about a federal draft bill in September 2021. That December, some proponents in the U.S. House of Representatives promised the topic would be taken up the following spring.
      • U.S. Representative Don Young of Alaska, the longest serving member in the chamber, a longtime cannabis reform advocate and founding member of the Congressional Cannabis Caucus, passed away on March 18th.
    • Following complaints of inaction on the issue in January 2022, Schumer held a high-profile meeting with cannabis and equity stakeholders on January 28th. Attendees said Schumer assured them that the draft bill would be finalized “soon.” Another article claimed that “​​Industry lobbyists and legalization advocates say the movement has been stymied by a lack of consensus on the legislative strategy. Liberal advocacy groups are pushing for a comprehensive overhaul of federal cannabis policies with the aim of helping people harmed by criminal enforcement, while industry groups are seeking any piecemeal policy victory that could provide momentum toward more sweeping changes.”
  • The Seattle Times covered the violent trend in an article from March 22nd where individuals, including Washington State Treasurer Mike Pellicciotti, said the “simple” fix for the pattern was federal approval of the SAFE Banking Act, federal legislation to give cannabis retail access to common banking services like accepting credit cards. He furthered the call to act on the bill in social media and on talk radio, where he reported he’d also been lobbying Washington Congressional Delegations on the matter.
    • Treasurers in Colorado and elsewhere had also called for this legislation to become law. Even the Governor of Utah, where adult use retail remains prohibited, said members of congress “oughta be ashamed” for not acting on the matter in 2019.
    • The Columbian Editorial Board supported the importance of this change on February 2nd.
  • While the language of the SAFE Banking Act was attached as an amendment to a federal spending bill on February 3rd, it was removed in the Senate. Some blamed inaction around cannabis banking on Schumer and Democratic leaders. Lobbying for the act was expected to continue ahead of the 2022 midterm elections.

• Postman explained that the March 29th caucus meeting would feature an hour-long “roundtable discussion with licensees, including some who have been victims of robberies,” elected officials, industry experts, WSLCB Enforcement staff, and possibly other law enforcement representatives.
  • “Licensees want to tell their story,” he commented, and “want to ask some questions” of each other and state officials. Postman said some “retailers are meeting today on their own to information share and work together.” The board supported their coordination and was ready “to help in any way that we can.”
  • The public would be able to observe the discussion, Postman noted, and a formal announcement would go out “soon today” which may list some roundtable participants. He promised the conversation would cover “what stores can do,” what the agency or legislators could do, “what Congress has to do,” as well as “how best to communicate that” collectively. Confident that officials and stakeholders “stand together” in confronting the problem, Postman encouraged people to “listen to that conversation” even if the event wouldn’t be “delivering answers” to everyone’s concerns.
  • The press release issued later that day indicated the caucus would feature:
    • “Perspectives from Michael Correia on national conversations on the SAFE Banking Act;
    • Updates from Treasurer Pellicciotti on his recent lobbying efforts in D.C. to urge Congress to pass the federal SAFE Banking Act;
    • [Senator Karen] Keiser’s efforts as Chair of the Senate Labor, Commerce and Tribal Affairs Committee work to enact retail safety measures in the state legislature;
    • First-hand experiences and insights of retailers; and
    • LCB Enforcement and Education Division experiences and insights.”