WSLCB - Board Caucus
(September 12, 2023)

Here are some observations from the Tuesday September 12th Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 2 takeaways:

• Agency leaders were advised by staff from the Office of the Governor that modifications to cannabis advertising they hoped to offer as a 2024 request bill should instead be offered as amendments to an established bill.
  • Director of Policy and External Affairs Justin Nordhorn’s most recent mention of the concept for the draft request bill was on September 5th, when he told board members he would bring the measure to staff at Governor Jay Inslee’s office. Previously, there had been stakeholder outreach in webinars hosted by WSLCB staff on August 11th, August 17th, and August 21st.
  • In caucus, Director of Legislative Affairs Marc Webster mentioned that a bill introduced in 2023 that would stay active for the 2024 session, SB 5363, was suggested as a better vehicle as compared to introducing competing legislation. He said their “strong recommendation was to seek amendments, or to use the existing piece of legislation…because it's simply further along in the process,” which was important during the 60-day “short session.” Additionally, industry representatives had already encouraged the move and stakeholder groups had positions on SB 5363. Webster’s interpretation of “plenty of easily identifiable opposition or support for SB 5363 pathway, and with not a lot of identifiable support for our own bill” made offering it separately less viable (audio - 2m, Video - WSLCB, Video - TVW).
  • Board Member Ollie Garrett spoke up to say that approach “makes sense,” inquiring about who Webster would be working with. He responded that the plan was to work with sponsoring Senator Drew MacEwen on amending SB 5363 which was “much more limited in scope. The only thing it did was to remove the cap on cannabis advertising size that [signs] had to be 1600 square inches” or less. Webster argued their proposal went further by addressing the number of allowable signs, and if the change was amended into SB 5363, “I think that's something…industry would presumably support” (audio - 7m, Video - WSLCB,  Video - TVW).
    • Garrett also asked about prior outreach to MacEwen on a WSLCB proposal for advertising changes. Board Chair David Postman stated that when SB 5363 was before legislators early in 2023, “we largely just stayed out of this…partly because we had our own big heavy lifts” with request bills on tetrahydrocannabinol (THC) regulation and social equity. “This was one that we chose not to really get involved in, is my recollection,” he noted.
    • “One of the things that Marc and I have talked about a little bit is where were local governments” on SB 5363, commented Postman, who felt their voices had been “on the sidelines, they didn't testify, they didn't show support. Now they're coming forward and saying they do support the MacEwen bill. So that seems to put a little weight behind it.” Postman remarked that Garrett had said “how it's important for us to get out there, and show where we're at” with stakeholders and lawmakers, and he expected “our participation will be welcome.” He cautioned that agency officials needed to understand SB 5363 was “the vehicle and…the MacEwen bill's different approach than what we had, but if that's the preferred one, let's work with them and see if we can…make sure that it's enforceable for us.” Postman further wanted “to continue to work and talk to prevention and public health because they have some concerns around this…we can help bring them into the conversation this year…and come up with a bill that maybe almost everybody likes.”
    • Garrett wondered if they should have met with MacEwen sooner when staff considered a competing bill. Webster claimed that he and Director William Lukela had “been trying to get on [MacEwen’s] calendar for over a month.”
    • Postman believed “different people saw [their draft bill] differently, but at least everybody knows where our head was at” and the draft “officially expresses that interest, that we want to be a part of those conversations” on advertising. Garrett hadn’t remembered a time when WSLCB offered a request bill “when there's an existing bill,” and reiterated her view on the importance of working “with the existing bill sponsor first.” Postman indicated that changes to SB 5363 would require it to be voted upon again by the Washington State Senate (WA Senate), and Webster pointed out the bill “doesn't go through the policy committees” on the Senate side.
    • Reflecting on the likelihood of only having one request bill related to alcohol in 2024, Postman said this would free up staff attention “to work on other bills that are making their way through the process and make sure that we're part of those conversations,” naming cannabis laboratory oversight and home cultivation as issues they might weigh in on.

• Policy and Rules Manager Cassidy West updated on three cannabis rulemaking projects covering retail medical endorsements; batch tracking; and tetrahydrocannabinol (THC) regulations and product samples.
  • Retail Medical Cannabis Endorsements (audio - <1m, Video - WSLCB, Video - TVW)
    • Patient advocate John Kingsbury petitioned the board for a rulemaking project on January 31st to establish a process to remove medical cannabis endorsements from retailers as he alleged some were either unable or unwilling to comply with rules for the endorsements.
      • WSLCB representatives began discussing the issue late in 2022. 
      • Staff mentioned Kingsbury’s petition on February 28th, March 28th, and on May 2nd, when former-Policy and Rules Manager Kathy Hoffman indicated they would wait for adequate staffing before working on the project.
    • During the caucus, West reported that her staff would be presenting a “CR-101 for that in October.”
  • Batch Tracking (audio - <1m, Video - WSLCB, Video - TVW)
    • First mentioned on August 29th, West noted staff would “be providing a response for recommending what the board” could do on October 11th.
  • SB 5367 Implementation (Rulemaking Project) and Product Samples (audio - <1m, Video - WSLCB, Video - TVW, Rulemaking Project)
    • SB 5367—agency request legislation on THC signed into law on May 9th—was approved for rulemaking on June 21st, 
      • Staff also facilitated a focus group on product samples on March 22nd.
      • WSLCB staff hosted a listen and learn forum on cannabinoid regulation generally in July 2022, prior to the introduction and subsequent passage of SB 5367.
    • Considering THC rulemaking, West announced plans for “holding additional stakeholder engagement sessions this month,” adding she was “working this morning on figuring out solid dates and putting an invitation together” that would be distributed in the coming days.