WSLCB - Board Caucus
(July 3, 2023)

Here are some observations from the Monday July 3rd Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Research Manager Kathy Hoffman revealed Policy and Rules Coordinator Cassidy West would take over her former post heading up the Policy and Rules team, and talked about beginning to recruit staff for her new office (audio - 2m, Video - TVW, Video - WSLCB).
  • Hoffman, whose transition to be the head of the research division was announced on May 2nd, explained that West would be taking on the position of Manager of the Policy and Rules Team, “starting July 16th.” West commented that she’d “learned from the best,” and Hoffman joked she’d “still be lurking" around her former office and staying involved with rules work as West took over and agency staff hired a replacement Coordinator.
    • West was hired in December 2022, with the board touting her prior cannabis industry compliance work in Colorado as a first for WSLCB staff. At that time, West was described as assisting cannabis rulemaking “alongside” Policy and Rules Coordinator Jeff Kildahl, and she had since contributed to several petition and rulemaking efforts.
    • After joining in May 2021, Kildahl’s last rulemaking presentation at time of publication was on March 1st. The following day at a WSLCB Quality Control Standards Work Group meeting, agency staff indicated in minutes Kildahl “had some issues come up this morning. And so he may not be able to make it.” He was also mentioned as working on the Cloud Storage Rulemaking Project in May, though that effort was withdrawn by Policy and Rules Coordinator Daniel Jacobs on June 21st. At publication time, Kildahl remained listed with the rulemaking staff on the agency website.
    • The Policy and Rules Manager job position outlined a three coordinator team, with staffing role changes potentially contributing to some rulemaking projects being placed on hold or withdrawn.
  • “We are, are starting interviewing for the operation research specialist” for the Research unit “starting this Friday,” said Hoffman, in addition to the other research post, a Management Analyst 5 position (audio - <1m, Video - TVW, Video - WSLCB).

• Hoffman then briefed on several active and paused rulemaking projects at WSLCB.
  • Payment Terms (audio - <1m, Video - TVW, Video - WSLCB)
    • Hoffman most recently updated on the project on May 2nd.
    • During the caucus she mentioned this effort was “still on hold” and officials “hope to resurrect that soon.”
  • SB 5367 Implementation (audio - <1m, Video - TVW, Video - WSLCB, Rulemaking Project)
    • Opened on June 21st, a CR-102 with proposed rules was anticipated to be ready by November 1st. Hoffman indicated that a public hearing was on track for “mid-December, and then rules effective the first part of January.”
  • Product Samples (audio - 1m, Video - TVW, Video - WSLCB, Rulemaking Project)
    • Hoffman expected draft conceptual rules related to licensee staff sampling of cannabis products to be finalized “on or about September 27th.” She added that West was preparing survey questions that “she's gonna send out here in the next couple days.”
    • West chimed in to say she would make an announcement about the survey during the July 5th Board Meeting.
  • SB 5080 Implementation (audio - <1m, Video - TVW, Video - WSLCB)
    • Hoffman anticipated the CR-101 to start rulemaking in this area would be introduced once “background” work was completed in “late July/early August.”
  • Other Rulemaking Projects (audio - <1m, Video - TVW, Video - WSLCB)
    • Hoffman listed several paused rulemaking projects relating to: advertising, minors on wholesale premises, and medical cannabis endorsements.
    • Hoffman noted board action on endorsements might include a policy statement.

• An update on alcohol legislation implementation by staff indicated a cannabis-related bill previously included would be addressed through agency guidance instead of new rule language (audio - 1m, Video - TVW, Video - WSLCB, Rulemaking Project).
  • Alcohol legislation implementation had combined several bills, but Jacobs stated that staff had determined HB 1772, "Prohibiting products that combine alcohol and tetrahydrocannabinol (THC),"  and another alcohol bill didn’t need rulemaking language. Agency officials had published notice of the interpretation, and anyone could still submit public comments on the draft conceptual rules via email.
    • Alcohol statutes RCW 66.24.150 and RCW 66.24.248 had established subsections stating alcohol licensees and packaging services “May not mix or infuse THC, CBD [cannabidiol], or any other cannabinoid into any products containing alcohol.” Neither the House nor Senate bill reports noted these statutes when summarizing the background or effect of HB 1772.
    • The RCW 66.24.150 restriction on mixing or infusing alcohol with cannabinoids was cited in a 2021 WSLCB policy statement PS21-05 regarding “False or Misleading Statements Concerning Marijuana [Cannabis] Infused Products.”