WSLCB - Board Caucus
(February 16, 2021)

Here are some observations from the Tuesday February 16th Washington State Liquor and Cannabis Board (WSLCB) Board Caucus.

My top 3 takeaways:

• Policy and Rules Manager Kathy Hoffman mentioned the agency’s first policy statement on Delta-8-tetrahydrocannabinol (THC), an isomer of the legal and common Delta-9-THC, had been circulated to “associations.”
  • A prospective change in the agency’s position on use of the THC isomer in legal cannabis products was first mentioned in September 2020. That November, Hoffman discussed the topic during a WSLCB webinar.
  • At the February 2nd Board Caucus, Hoffman confirmed a policy statement would address the presence of delta-8 in the 502 market. On February 3rd, a licensee offered public comment mentioning the isomer amongst several “unintended consequences of cannabinoids coming into the system.”
  • Hoffman told the Board she emailed cannabis trade groups and Cannabis Advisory Council (CAC) representatives the draft “statement on delta-8 in the 502 system” on February 8th. “And so some feedback that has been coming in on that that we’ll consider internally. The deadline for response on that is [February] 22nd,” she said (audio - 1m).
    • The draft statement summary concludes, “To encourage and promote best practices, and until the agency has both authority and verifiable information on which to base its decision making regarding delta-8 THC or any other isomer of THC, regardless of the form of THC, the total THC amount cannot exceed that allowed per serving as specified in WAC 314-55-095.”

• Hoffman also noted that a second version of the agency’s policy agenda for 2021 had been sent to cannabis and alcohol stakeholders.
  • The agency policy agenda was set broadly by board priorities which were last considered on January 12th after an extended gap between planning sessions going back to July 2018. As appointment of a new Board Chair in 2021 has been expected since December 2020, an effort to maintain most positions and projects was agreed to until the new chair was acclimated to the role and could contribute their prerogatives.
  • Hoffman emailed cannabis and alcohol stakeholders the second draft of the agenda and the revised policy process on February 9th. A deadline for responses was set for March 2nd, but Hoffman indicated staff hadn’t “had a lot of feedback on that quite yet” (audio - <1m).
    • Draft agenda goals included:
      • Transformative innovation that reduces invisible barriers to opportunity, and will result in socially equitable conditions.
        • Board Member Ollie Garrett was appointed to the Washington State Legislative Task Force on Social Equity in Cannabis (WA Task Force on Social Equity in Cannabis) which was formed in part to assist WSLCB in this regard.
      • Increase opportunities for licensee support and success that leads to business sustainability and persistence in a post-COVID 19 economy. Identify role Board should play to help business be successful as businesses and what steps they could take to start.
      • Well-defined focus on public health and prevention partnerships that support collaborative, informed decision making and educational opportunities.
        • Agency staff partnerships with prevention advocates prompted questions during a January 6th CAC meeting.
      • Help create more reliable access to medically compliant cannabis products, including a vehicle for solid advice to potential patients.

• Policy and Rules Coordinator Casey Schaufler talked about a new CR-101 opening rulemaking on license applicant criminal history in advance of the agency opening a new licensing window for social equity applicants.
  • WA Task Force on Social Equity in Cannabis members and the public have been critical of existing WSLCB processes for scoring criminal histories of applicants.
    • In November 2020, Director of Legislative Relations Chris Thompson told lawmakers a re-evaluation of rules and policies was underway.
    • Director of Licensing Becky Smith verified the evaluation was underway in December, and shared that information with task force members directly on January 25th.
    • Hoffman announced that a proposal to open rulemaking on the topic was in the works on February 9th. 
  • Schaufler said he would seek board approval to file a CR-101 to begin the rulemaking project during the February 17th Board Meeting. He elaborated that the project would “evaluate rules regarding the criminal history of cannabis license applicants” and “review current criminal history background check standards and criteria in an effort to remove unnecessary barriers to entry in the legal cannabis market from individuals disproportionately impacted by cannabis criminalization.” He described how proposed revisions would be “designed to support socially equitable conditions” (audio - 2m).
  • Board Member Russ Hauge asked Schaufler to set aside time to “talk about that” with him as “I might be able to help out given all the years I wasted trying to put people in prison.”
    • A former county prosecutor, Hauge told the Board he’d resigned as chair of the Washington State Sentencing Guidelines Commission in June 2020.