WSLCB - Board Caucus
(May 10, 2022)

Here are some observations from the Tuesday May 10th Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Staff planned to present a new cannabinoid regulation rulemaking project at the next board meeting, which led to several questions from Board Chair David Postman (audio - 2m, WSLCB video, TVW video, Rulemaking Project).
  • Policy and Rules Coordinator Robert DeSpain told the board he’d be presenting a CR-101 at the Wednesday May 11th board meeting to start "expanding definitions regarding the evaluation of additives, solvents, ingredients, compounds, or concentrates used in the production or processing of cannabis products." He said agency staff were considering “creating new, amending, or repealing sections as necessary” to “identify or further define” terms in these processes, as well as “additional revisions.” Because production and processing of cannabis could “involve the use of potentially harmful additives, solvents, ingredients, compounds, or concentrates,” DeSpain outlined the concern of staff over substances “that pose, or may pose, a risk to public health or youth access.” With board approval, staff from across WSLCB would begin to contribute to the rulemaking work, he concluded. 
    • This project was first mentioned on April 26th.
    • DeSpain projected a CR-102 could be filed as early as September 14th to consider input from related public events tentatively scheduled by WSLCB (audio - 1m, WSLCB video, TVW video).
  • Postman asked if the project was related to the deliberative dialogues hosted by agency staff. Policy and Rules Manager Kathy Hoffman spoke up to say it was, commenting that the session planned for May 31st would have "more of an enforcement meaning to it" rather than only looking at scientific definitions, which she pointed out had been “challenging” to try and enact during the previous legislative session. Another dialogue session was confirmed for June 11th, and while not mentioning the topic of that event, she made it known that staff were interested in the “behavioral health and prevention perspective on delta-8[-tetrahydrocannabinol] and other products like it" (audio - 2m, WSLCB video, TVW video). 
    • The last deliberative dialogue on April 27th addressed expert and public comment on cannabis impairment.
    • The explicit mention of an interest in behavioral health perspectives was possibly an acknowledgment of new Board Member Jim Vollendroff, whose background was in the field. Vollendroff’s addition to the board was, in part, a response to ​​a January 19th letter of support from 22 Democratic legislators. Among them was the sponsor—Representative Lauren Davis—and eight co-sponsors of HB 2035, unsuccessful legislation that would have required a "behavioral health prevention and equity impact framework" be integrated into decision-making at the WSLCB.
  • Hoping he wasn’t “stirring the pot unnecessarily,” Postman wondered if staff would try to “define impairing.” In addition to judging if “that’s the word we need to use,” Hoffman replied that staff might consider “another word to frame impairment.” She remarked that there would also be a listen and learn forum after the dialogues in June to review draft conceptual rules (audio - 1m, WSLCB video, TVW video). 
  • Postman asked when the CR-103 to adopt changes might be presented to the board. DeSpain commented that if the CR-102 was approved September 14th, a public hearing would likely take place on October 26th. Under this timeline, the “CR-103 would be November 23rd,” leaving rules to take effect on December 24th “just in time for Christmas” (audio - 1m, WSLCB video, TVW video). 

• Policy and Rules Manager Kathy Hoffman briefed on a plan to withdraw the proposed rules on the social equity rulemaking project for further revision, which Postman also had a question about (audio - 1m, WSLCB video, TVW video, Rulemaking Project). 
  • Hoffman announced that she would be asking the board to withdraw the project’s CR-102 approved on April 13th. She attributed the halt to a desire to “engage in some additional research and analysis to make sure that we align with the intentions” of the social equity program in statute. Hoffman expected to bring a revised CR-102 back to the board “on or about June 22nd” and reaffirmed the commitment of staff “to implementing a successful social equity program,” claiming the delay would enable them “to get closer to it.”
  • Postman wanted to know how long a delay the withdrawal would cause. Hoffman anticipated the suspension of their work delaying progress “three or four weeks, it’s not going to be a terribly significant” delay. As staff planned to begin accepting applications to the social equity program “in the early fall” or “late summer,” she believed withdrawing the CR-102 at this point “doesn't throw us off by a lot" (audio - 1m, WSLCB video, TVW video).
    • On April 13th, Postman asked Director of Licensing Becky Smith for her timeline on acceptance of equity applications. At the time, she predicted staff would be prepared to do so in September.

• Policy and Rules staff described other active rulemaking projects to implement legislation, electronic service rules, and reframe pesticide action levels, as well as the timeline for future efforts on packaging and labeling (PAL) and advertising.
  • HB 1210 Implementation (audio - <1m, WSLCB video, TVW video, Rulemaking Project). 
    • Hoffman reported that expedited rulemaking for a 2022 law that required the board to change the word ‘marijuana’ to ‘cannabis’ in rule remained “on schedule.” She indicated that "a handful of comments" had come in, but nothing that would alter the trajectory offered by staff on April 27th.
  • Electronic Service (audio - 4m, WSLCB video, TVW video, Rulemaking Project).
    • Policy and Rules Coordinator Audrey Vasek shared that she would present a CR-102 on “electronic transmission of documents for service and filing” at the following day’s board meeting. Since beginning the project to streamline agency functions on February 2nd, she said there’d been three public comments received, but they were “questions, statements of interest” that were neutral on the overall purpose of the rulemaking project.
    • Staff from across the agency were involved with the project’s proposed revisions, indicated Vasek, which didn’t require electronic filing of documents, but would offer the processes as a convenience for both licensees and regulators. She understood the proposal to place no new compliance costs on licensees, as use of electronic service was voluntary.
    • Assuming no major changes were warranted, Vasek anticipated a CR-103 for the board to adopt final changes on July 6th, making changes effective on August 6th.
  • Pesticide Action Levels (audio - 2m, WSLCB video, TVW video, Rulemaking Project). 
    • Policy and Rules Coordinator Jeff Kildahl affirmed that the public hearing on the proposed changes to rules on action levels in cannabis would take place at the following day’s board meeting. He gave some background on the project to “update technical, chemical isomer information in the WAC for several of the pesticides currently allowed for use in the production of cannabis.” Language updates related to “recently adopted cannabis quality control testing rules” would be added, and “redundant” language would be removed, according to Kildahl. Changes would also make consistent use of the term “quality control testing,” he noted. Kildahl expected a CR-103 for final adoption of changes on May 25th, and “under that timeline the updated rule” would take effect on June 25th.
    • Postman was curious if the changes staff were offering was more a reformat of pesticide action level information, as opposed to changing the levels. Kildahl confirmed that understanding, remarking that “the levels do not change at all” and several changes involved “alternative names” for pesticide “sub-varieties” already restricted by WSLCB (audio - 1m, WSLCB video, TVW video).
  • Future Rulemaking (audio - 1m, WSLCB video, TVW video).
    • Last discussed on April 26th, Hoffman made clear that rulemaking projects for packaging and labeling and for cannabis advertising were on track to start in “early June.” Internal deliberations on the topics were underway.