WSLCB - Board Caucus
(September 26, 2023)

Here are some observations from the Tuesday September 26th Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Policy and Rules Manager Cassidy West went over several cannabis rulemaking engagements and presentations planned over the following month.
  • West last updated on cannabis rulemaking on September 12th, and Director of Policy and External Affairs Justin Nordhorn spoke to the slow down in rule work as he looked to fill two Policy and Rules Coordinator positions on September 13th.
  • SB 5367 Implementation (Rulemaking Project) and Product Samples (audio - 1m, Video - TVW, Video - WSLCB, Rulemaking Project)
    • West indicated that invitations for “engagement sessions” scheduled for October 6th and 11th would be sent out “no later than tomorrow.”
    • Additionally, she commented that separate events for “discussion about proposed options for the detectable limit” of tetrahydrocannabinol (THC)---which SB 5367 left up to agency staff to determine—would be hosted by staff on October 16th and 18th. She was still “working out times for those” (audio - <1m, Video - TVW, Video - WSLCB).
  • Batch Tracking Rulemaking Petition (audio - <1m, Video - TVW, Video - WSLCB)
    • West affirmed a previous estimate on August 29th that she would present the board with the petition on October 11th.
  • Retail Medical Cannabis Endorsements (audio - <1m, Video - TVW, Video - WSLCB)
    • The petition regarding medically endorsed retailers that was accepted on March 29th was slated to have a CR-101 introduced almost seven months later, on October 25th.
  • SB 5080 Implementation (audio - <1m, Video - TVW, Video - WSLCB)
    • A CR-101 for SB 5080, which amended and expanded the social equity licensing program, would also be presented to board members on October 25th.
  • West mentioned that the laws and rules page for WSLCB was being updated “so people can find more information about the stakeholder engagements, and just rulemaking in general.”

• Research Manager Kathy Hoffman reviewed why the Cannabinoid Science Work Group may continue after submitting its final report, and her staff talked about the continued development of the Research Unit.
  • The agency research unit was formally announced on May 2nd. Hoffman introduced the rest of the team, Operational Research Specialist Sarah Okey and Research Analyst Stephen Ziegler, on August 8th.
  • Cannabinoid Science Work Group (audio - 2m, Video - TVW, Video - WSLCB)
    • An announcement would be made as soon as there were “docs posted on the webpage” about the group’s next meeting on October 5th, Hoffman told board members. She said the work group planned to review the final draft of her requested report dealing with “detectable levels of THC” and “pathways to implement [SB] 5367.”
    • Hoffman expected a supplemental report would be needed to cover information from RJ Lee, which contracted with WSLCB to provide a lab accreditation program and annual audits, concerning the testing “limit of detection and limit of quantification for cannabinoids.” The supplemented report would also “have the results—hopefully—of the WSDA [Washington State Department of Agriculture] survey” of labs, though they were a “little behind on their lab survey at this point based on some of the rulemaking that they've been doing.”
    • “We were sort of thinking that the cannabinoids work group would…expire on or about the last meeting in December,” but Hoffman stated all members of a subgroup were amenable to “continuing the work” in 2024 under Okey’s leadership, and with the support of board members.
  • Psilocybin Task Force (audio - <1m, Video - TVW, Video - WSLCB)
    • Last brought up by Postman on August 29th, Hoffman acknowledged that Okey “will also be repping the LCB on the psilocybin task force” which was slated for “meet[ing] next also on October 5th.”
  • Social Equity (audio - <1m, Video - TVW, Video - WSLCB)
    • Hoffman said Research Unit staff would also have work to do on this subject, but had undertaken devising an “outlet density…methodology to project how many licenses could be added to counties in the future consistent with what we're required to do by Senate Bill 5080.” She promised that would be “done before I depart the agency.”
      • Density of cannabis retail had emerged as a concern during deliberations about additional cannabis licensing for social equity purposes, especially among parties concerned about greater availability of cannabis products. Both Washington State Health Care Authority materials on “Balancing commerce and public health in disadvantaged communities” released September 8th, and the third installment of required reporting on cannabis legalization by analysts at the Washington State Institute for Public Policy highlight retail access near residential areas as a factor to consider in retail licensing.
  • Moving to research program development, Hoffman indicated staff were “identifying databases they'll need to access…both internal and external.” This could necessitate “data sharing agreements” or finding “who our points of contact might be, both internal and external” (audio - <1m, TVW, Video - WSLCB).
    • Okey shared that tasks around data access, storage, and security were complicated by the continuing systems modernization project (SMP) rollout. She remained focused on “figuring out how we'll do ethical data management, both now and also as the phases of SMP occur down the road.” Okey was “also working with…the Washington State Institutional Review Board to discuss when it's best to have IRB approval, and discuss timelines and collaborations” around when such approval was necessary, or when “it's not absolutely needed given that it might help…create a larger audience and give us the ability to have different deliverables” (audio - 2m, Video - TVW, Video - WSLCB).
      • Postman asked about SMP, specifically if research staff had “communications with that team…as part of those ongoing conversations now.” Okey said she’d spoken to information technology (IT) staffer Jillian Murphy “yesterday, and she gave me a list of contacts so we can start becoming more involved with, with SMP going forward” (audio - <1m, Video - TVW, Video - WSLCB).
    • Hoffman added that the initial priorities of the Research Unit would be determined through an “evaluation tool” that would “be internally driven to start” (audio - <1m, Video - TVW, Video - WSLCB).
    • Responsible for setting up the office’s webpage, Ziegler didn’t have a timeline but was “engaged in pure benchmarking and determining what other agencies are doing so we don't reinvent the wheel, while at the same time customized for our own purposes” (audio - 1m, Video - TVW, Video - WSLCB).

• As she prepared to leave the agency, Hoffman addressed her rulemaking tenure at WSLCB and received praise from board members.
  • Hoffman’s departure for a senior policy post with the Washington State Department of Labor and Industries (WA LNI) was first publicly confirmed by Nordhorn on September 13th.
  • Hoffman established that “a lot has changed” since her previous board presentation on August 29th, and relayed that her last day working for WSLCB would be October 15th. “We've been working not only on my transition but also on continuing to build out the foundational elements of the [research] program.” She “acknowledged what a pleasure it has been to work with the three of you,” finding “the policy and rules program changes that you've supported…are sought after by other agencies, including the agency I'm going to.” As the Senior Policy Advisor for WA LNI she wouldn’t lead department rulemaking, but was “bringing that program design over with me and helping the agency implement it there, along with all the other stuff that…research and policy advisors do.” Hoffman concluded by thanking the board “for making it possible for me to make those changes at LCB” (audio - 1m, Video - TVW, Video - WSLCB).
    • Board Chair David Postman felt “it’s been an absolute honor” to work with Hoffman, adding, “we are thankful for the time you put into the LCB and your insight and intellect will be missed” (audio - <1m, Video - TVW, Video - WSLCB). Board Member Jim Vollendroff swiftly agreed with Postman on the importance of Hoffman’s contribution (audio - <1m, Video - TVW, Video - WSLCB).
    • Later in the meeting, Vollendroff again thanked Hoffman for her work, remarking that he’d been reaching out to research staff, and while her departure was “unexpected…we celebrate that and wish you the very best, but also look forward to this work continuing.” He joked that because “I have your cell phone number…I know how to reach you if we need to” (audio - 1m, Video - TVW, Video - WSLCB).
    • Board Member Ollie Garrett seconded the gratitude her colleagues voiced for Hoffman (audio - <1m, Video - TVW, Video - WSLCB).
  • “I may provide…one more update [in] caucus on October 3rd if there's anything new to report between now and then, which there - it could be,” Hoffman said (audio - <1m, Video - TVW, Video - WSLCB).