WSLCB - Executive Management Team
(October 12, 2022)

Wednesday October 12, 2022 1:30 PM - 3:30 PM Observed
WSLCB Enforcement Logo

The three-member board of the Washington State Liquor and Cannabis Board (WSLCB) and agency leadership meet weekly as the Executive Management Team to facilitate coordination between the appointed Board and staff.

Observations

Diversity, equity, and inclusion efforts at WSLCB were discussed along with the budding social equity program, related community engagement efforts, and request legislation for 2023.

Here are some observations from the Wednesday October 12th Washington State Liquor and Cannabis Board (WSLCB) Executive Management Team (EMT) Public Meeting.

My top 3 takeaways:

  • Diversity, Equity, and Inclusion (DEI) Manager Jim Weatherly updated the board on a recent review of literature—including from a former WSLCB board member—and the status of the Pro-Equity, Anti-Racism (PEAR) team at the agency.
    • Weatherly was hired for a position informally called ‘Diversity Manager’ one year earlier in October 2021. His DEI endeavors were mentioned by Deputy Director Toni Hood on April 13th.
    • Weatherly acknowledged that some staff had been reading more about DEI concepts, including a 1999 article updated in May 2021 on White Supremacy Culture - Still Here." He also mentioned looking at a 2021 book by former WSLCB acting chair Merritt D. Long, “My view from the back of the bus,” and lauded several staff members helping to “infuse this work into our agencies” (audio - 10m, WSLCB video, TVW video).
      • A top priority was implementation of the March 21st Executive Order 22-04 on a Washington State Pro-Equity Anti-Racism (PEAR) Plan and Playbook, which Weatherly said led to the formation of a WSLCB PEAR team comprised of representatives from divisions across the agency. Board Member Jim Vollendroff, the board sponsor for the initiative, was “working on how we want to do community stakeholders, how that invite’s going to look, how we want…to put this together.”
    • Board Member Ollie Garrett asked about “community stakeholders” and what involvement with PEAR entailed (audio - 4m, WSLCB video, TVW video).
      • Weatherly said that was “something that other DEI managers are asking amongst ourselves,” but could look like:
        • “a customer perspective” 
        • “other organizations [and] agencies”
        • “feedback about our external facing web pages”
      • “Really the sky's the limit on this in terms of who is welcome at the table,” remarked Weatherly, “we are looking for people that are passionate about DEI-related discussions and you know anything that would infuse or advance what we do here at the LCB in a positive way.” Though feedback “doesn't have to just be the positive,” he added, the input could be “things that we might want to try differently, or things that have been a challenge in the past.”
      • Garrett pointed out that Black Excellence in Cannabis (BEC) member Peter Manning had been calling for transparency at a board meeting earlier that same day, and did "want to actually be at the table" with WSLCB staff. She hoped to be able to invite people who have “a passion about the work we're doing whether it's specific to social equity in cannabis or…being inside the agency and the PEAR, it all comes full circle.” Weatherly answered, “that is exactly where we want to be,” feeling that “relationships are kind of an underlying theme here as well as how we communicate and share information back and forth.”
      • Moreover, he found that because “we don't have community stakeholders” nor “a tribal liaison currently represented,” the PEAR team should be cautious and not “continue moving forward with developing any sort of LCB DEI-related statement because we know that…we're not a fully realized team yet.”
        • On October 25th, an article by Weatherly was published on the WSLCB Medium account indicating, “With guidance from the Washington State Office of Equity, all of state government has initiated a new journey to transform the state’s approach from an intuitive, values-based commitment to one that is more methodical, precise, intentional, and accountable.” Those “interested in joining the LCB PEAR Team” were encouraged to contact Weatherly at jim.weatherly@lcb.wa.gov or 360.764.3642.
    • In addition to the PEAR team, Weatherly reported that agency staff were looking for diverse experiences in their hiring and would be preparing a DEI “strategic plan” for review by Washington State Office of Equity Assistant Director Carolyn Cole (audio - 3m, WSLCB video, TVW video).
      • Board Chair David Postman requested Weatherly be sure to schedule DEI discussions with board members directly (audio - 1m, WSLCB video, TVW video).
      • Garrett was pleased, finding it “important to engage that external and maybe individuals.” But she said “going through this whole social equity process and talking to stakeholders and being engaged with stakeholders, the number one thing that keeps coming back when I'm talking to people” about equity concerns “is trust, and it's very hard for them to…see what we're doing.” For this reason, Garrett considered DEI work “a good opportunity to get some of those folks from the community involved…because it's gonna include them getting to know employees within the agency.” Weatherly agreed wholeheartedly, “I'm excited about those new relationships and being able to provide that feedback here internally so that we can all grow from it” (audio - 2m, WSLCB video, TVW video).
      • Vollendroff took a few moments as the board representative for PEAR to promise to follow up, seeing “opportunities to engage the community in our work, and I really feel strongly about community participation in public policy.” He thought it was “very clear that we've got people who do want to participate in these conversations. And so, I'll make sure that I represent that at our meetings.” He complimented Weatherly and other staff on their commitment to DEI practices within WSLCB (audio - 2m, WSLCB video, TVW video).
    • Director of Licensing and Regulation Becky Smith touched on “recruitment outreach” to find a “diverse pool of applicants.” This was especially true, she said, “for licensing we do want to…represent the community and so we have, we've reached out to it's called ‘The Fact[s].’ It's actually a paper we're going to be posting in. It's been operating since 1961 as the first black newspaper in the Pacific Northwest….I just think that any way that we…can reach out in a different way to our community of color, we need to take advantage of that” (audio - 3m, WSLCB video, TVW video).
      • Garrett encouraged Smith to consider posting similar ads in The Seattle Medium, “if you're doing The Facts you should do The Medium.” She also wondered whether the advertising would be online and “are we looking outside of previous state agency government experience,” as she’d seen that be a barrier for people open to working at WSLCB in the past. Smith claimed that the human resources department within the agency would be “looking at different ways and different places…to post positions” and evaluate what experience would be needed in a role with the agency (audio - 3m, WSLCB video, TVW video).
  • Director of Licensing and Regulation Becky Smith had new information about social equity contractors, disproportionately impacted area (DIA) mapping, and the equity task force.
    • Smith talked about the process for awarding an agency contract for a third-party to vet equity applications. After receiving three bids, they awarded the contract to Quintairos, Prieto, Wood & Boyer P.A. (QPWB). Smith elaborated, “They identify as the largest minority and women owned law firm in the country. They have experience working with local, state, and federal agencies to develop comprehensive programs to engage minority owned contractors. In addition, the firm has a cannabis law group that provides guidance on the cannabis law in Illinois.” She anticipated hearing from them “at the end of this month, they will be providing us with the roadmap, with the documents, and workshop information, and…help us with communication. And so we're going to be setting up a meeting with our communication division as well just to talk about outreach” and being more “purposeful” in that regard (audio - 3m, WSLCB video, TVW video).
      • Garrett called the selection of QPWB “great,” but wished it had been communicated earlier, based on public comments expressing surprise that the announcement was confined to a page amidst their social equity resources. She wished the board had been “proactive” in sharing “who was selected” and why. Smith promised that Communications Director Brian Smith and his team were “working on…getting that information out to a bigger group of folks” (audio - 1m, WSLCB video, TVW video).
      • Several QPWB partners spoke on a 2018 Marijuana Law Seminar panel in Chicago sponsored by Defense Research Institute (DRI).
    • Smith affirmed that "we are making progress" on DIAs even though “it feels like we're in the sand.” She assured board members that court data from King County would be forthcoming “by the end of this month.” She claimed there was “some difficulty in getting the 1980 data, because it is 1980 data.” She relayed that University of Washington (UW) and agency IT staff were considering “geomapping” and there were many “resources going into the development of the DIAs” even as it was “a little bit, certainly, out of our expertise.” Smith remarked that “we're hopeful that we'll have something to show for this soon…we're shooting for November, but that might be a little too aggressive.” Nonetheless, she promised “interactive” mapping so that “an applicant should be able to put in their address and if they live there 1980, go to the 1980 map and they'll be able to see whether or not that area was in DIA. Or in 2000, see if that was a DIA, or in 2010.” The maps would be used to help prospective social equity applicants know whether they could qualify based on prior DIA residency, added Smith (audio - 2m, WSLCB video, TVW video).
    • Smith informed the board that WA Commerce representatives had been communicating with WSLCB Program Specialist for Social Equity Sarah Davis and the department would publish a request for proposals (RFP) for social equity licensee mentors. Additionally, she mentioned a bulletin regarding updated web resources from the department on the mentor program were from a company called Make Green Go! Smith relayed that the company had done work in other states around “training that's going to be available for the application…we'll be doing videos and we'll be having just the walk through information, the modules that folks will be able to use as well, and have a, the process of what a social equity plan looks like” (audio - 3m, WSLCB video, TVW video).
    • She added that they “have had some struggles” working with Washington State Business Licensing Services (WA BLS), but “we've come through in a good place…so we don't have local fees.” Smith clarified that equity applicants would likely “know where they're going to be putting their business at and where they would be applying is probably their home address.” In order to avoid “added on fees” related to opening a business, they’d struck an agreement with WA BLS and “they're not going to be charging those fees when the application window does open.”

Board members heard legislative updates, mentioned special guests attending upcoming caucuses, and discussed how to achieve prevention of 100% of retail sales to youth.

Here are some observations from the Wednesday October 12th Washington State Liquor and Cannabis Board (WSLCB) Executive Management Team (EMT) Public Meeting.

My top 3 takeaways:

  • Outgoing Director of Legislative Affairs Chris Thompson talked with board members about a legislative work session planned for December, a state review of cannabis appropriations, and participating in a panel discussion with legislative staff.
    • Thompson, whose retirement from WSLCB was announced on August 30th, acknowledged there was “no news" on agency request bills from the Washington State Office of Financial Management (WA OFM) or the Governor's office. “We haven't had questions or inquiries from them,” he noted (audio - 1m, WSLCB video, TVW video).
    • Looking ahead to a December 2nd Washington State House Commerce and Gaming Committee (WA House COG) work session, Thompson anticipated there would be “a little bit further refinement” as “staff had not yet conferred with the committee chair about further focus of the presentation.” He suggested the subject would be “regulatory and enforcement activities related to cannabinoid products, including products containing delta-8-[tetrahydrocannabinol] THC or other cannabinoids that are synthetically derived from hemp.” Thompson anticipated a response to their request legislation by then, and planned to “share some detail with the committee” and hear their thoughts on the proposals ahead of pre-filing for the 2023 session in December (audio - 3m, WSLCB video, TVW video).
      • WA House COG Chair Shelley Kloba talked about her philosophy and cannabis issues she expected the committee would hear about at a Cannabis Alliance summit on October 1st. She spoke of “work on protecting the integrity of the product and the industry, and the way we're going to do this…is to make it abundantly clear that synthetically derivedtetrahydrocannabinols (THC) have “no place in the market.” Her belief was that the agency needed to validate their authority to “do enforcement outside of the regulated market” and 2023 request legislation could help maintain that ability.
      • Postman also figured there would be approval for the request bills by that time, and thought the settlement with licensed processor Unicorn Brands LLC over creation of synthesized cannabinoids should be communicated to legislators given “we've always gotten a lot of questions from members…and let's go ahead and answer them up front” (audio - 1m, WSLCB video, TVW video).
      • Director Rick Garza discussed how he’d gone “last week to meet with [Kloba] and kind of walk through our proposed legislation…and she's very very comfortable with it.” He was ready to adjust their bills to legislators’ requests, indicating “I think they’re interested in” enforcement around “the delta 8 products are out in the private market and…an update of where we are with that.” Garza then said it was a chance for officials to “share with the committee…the meat of the new THC bill” (audio - 2m, WSLCB video, TVW video).
        • Thompson thanked Garza for touching base with Kloba and relayed how there’d been “a question from her about our proposal and I answered her question without going a lot beyond that.” He anticipated bringing “our enforcement division in the planning meeting. We'll need to bring in folks involved with the development of our legislative proposal, obviously our communication director” Brian Smith, and others “pretty soon.”
        • On October 24th, WSLCB published procurement information for a “One-year Contract with Orange Photonics, Inc. to provide Light Lab 3” Cannabis Analyzers. The analyzer modules include the ability to test for delta-8-THC and other minor cannabinoids.
      • Vollendroff recalled the legislative process during his time as an official with the King County Department of Community and Human Services, noting staff shared talking points because they recognized “not everybody can talk to just anybody, but people do talk to constituents…using high concentration THC products as an example, or Delta 8…what is our position on that? Where do we stand on certain things.” He encouraged Thompson to “consider…some fact sheets, or some elevator speech, talking points, whatever you want to call it.” Thompson agreed, and offered, “we did put together a statement of need that addresses a lot of these kinds of issues and topics so we have some things to work with” assuming the request bill was approved to offer for sponsorship (audio - 2m, WSLCB video, TVW video).
    • “The Joint Legislative Audit and Review Committee is starting a study,” reported Thompson. It had been mandated by SB 5796 ("Restructuring cannabis revenue appropriations”), he noted, which was “substantially revised along the way” resulting in a review of “appropriation and expenditure of cannabis revenues” to be summarized in a “report to the appropriate legislative committees by July 1, 2023.” JLARC staff had communicated with WSLCB representatives, Thompson told the board members, and he would be scheduling a meeting so they could start “to assist them with their project.” He stated they would be looking at whether the appropriations were “consistent with law, whether information about…these topics is readily available to the general public, and…whether there are ways to enhance or increase the transparency and accountability” around them (audio - 2m, WSLCB video, TVW video).
    • Thompson added that he’d presented “a couple of weeks ago” to the Legislative Staff Academy, an annual meeting for legislative assistants and caucus staff. He’d been on a panel with WA House COG staff about “cannabis, 10 years later,” and offered to find a recording of the event for those interested (audio - 1m, WSLCB video, TVW video).
  • WSLCB leadership also discussed medical endorsements, a symposium on high concentration cannabinoid products, and restricting youth access to cannabis.
    • Justin Nordhorn, Director of Policy and External Affairs, explained that “we're making some progress on some of our medical cannabis efforts” (audio - 5m, WSLCB video, TVW video):
      • Nordhorn talked about outreach around medical cannabis with the board on August 10th.He indicated staff were “drafting educational materials for licensees, trying to inform folks about the importance of maintaining the standards within the medical endorsements area. We've worked with Department of Health to get their take so that we're on the same page with them and their program,” and the materials would be “out in the near future.”“A student at a university that is working on their master's program that was looking for” topics had picked “research around the medical cannabis area, and surveying not only patients but retail stores about different practices.” This could give officials the chance to better understand ”some of the trends that are being shared with us anecdotally,” he added.
    • Turning to the UW ADAI Symposium, Garza stated that he, Board Member Jim Vollendroff, and “several of the staff” were in attendance. “It was on high THC [tetrahydrocannabinol] cannabis,” he explained, remarking that “we did a debrief last week that maybe, Jim, you could share what you gained from that and…anything that we learned there that we should consider with respect to policy, rules, or legislation (audio - 1m, WSLCB video, TVW video).
      • “We had good representation,” Vollendroff noted. Aside from Garza and himself, Deputy Director Toni Hood was present at the campus where it was hosted while Nordhorn and Policy and Rules Manager Kathy Hoffman attended remotely (audio - 3m, WSLCB video, TVW video).
        • Vollendroff shared that Gillian Schauer, a UW Researcher and the Cannabis Regulators Association (CANNRA) Executive Director who also presented at the event, participated in the agency debrief. He predicted that “we can expect innovation” and that “things that we are facing relating to delta-8[-THC] and high concentration THC and innovation are gonna [do] nothing but continue.”
        • Vollendroff found the speech by Jonathan Caulkins, Professor of Operations Research and Public Policy at the Heinz College of Information Systems and Public Policy at Carnegie Mellon University (CMU), “highlighted that while high concentration THC products are something for us to be…concerned about, there are probably four or five other things that he finds even more compelling for us to be thinking about.” Cannabis concentrates “makes the list of the top 10 [concerns], but it's not number one on the list,” he said, adding that he was considering hosting sessions where staff listened to recordings and discussed some of what was presented.
        • Moreover, Vollendroff considered the event to lend “itself to our conversation earlier about community involvement and conversations with community and one of the things that we talked about when we debrief is how do we engage more with our licensees, and producers, processors, getting them to the table and identifying what some of our common goals are and where we need to work together.” He was open to helping facilitate “listen and learn sessions if people are interested in having some sessions with some of the topics that were presented.”
    • During an update by Enforcement and Education Director Chandra Brady, she said “we've been doing things a little differently” on compliance checks around not selling to youth. Officers had been randomly “selecting and assigning our locations for compliance checks as opposed to…officers selecting them. We've been selecting them just to make sure that we are being attentive to the equity issues as well. And so what we expected to see was potentially a small drop in the compliance rate and that's kind of, it's kind of what we're seeing. We don't have enough long-term data to see whether that's in fact the case, but it looks like over the last two months that is what's happening” (audio - 17m, WSLCB video, TVW video).
    • Vollendroff delved into WSLCB “benchmarks” for retail compliance in not selling cannabis to those under 21. With a background in public health and substance use prevention, he was “really curious about our benchmark and what we're actually hoping to accomplish versus what we actually see” (audio - 9m, WSLCB video, TVW video).
      • Vollendroff was further curious about “if we, you know, find compliance at, you know, 70% or whatever, for example, what's our estimation of how many sales are actually happening to a minor that we don't find or don't catch?” Vollendroff felt “that seems like it's a…fairly high number, and…I think sales to a minors are 100% preventable…given the right set of circumstances.” He encouraged planning a discussion about “what would 100%...no sales to minors look like? And what is our benchmark…because I'm kind of alarmed when I see these numbers.”
      • Brady acknowledged Vollendroff’s concerns as valid: “it's alarming when you think of it.” She was willing to follow up with Vollendroff after collecting more information, explaining “there's a study and it's a standard and that's why we do it this way.” As for a benchmark for WSLCB, Brady said, “what we want to see as an outcome for youth access” was “a hundred percent success….what we want to see from the industry when we're measuring this is zero sales to minors. Our goal is public safety, therefore our goal is zero sales to minors.”
      • But she qualified that compliance checks were “measuring for our staff performance, it is how many checks are conducted,” Brady stated, often reminding ”our staff that our work is doing the checks; it's the industry's work to prevent youth access, that's their responsibility.” Through this lens, she felt low compliance rates reflected a failure on the part of licensees, not her staff. “While I do agree with that 100%, I do think we have a role to play on the policy side of things,” Vollendroff responded, “I feel like there are opportunities that perhaps we could help address some of those concerns, potentially.” Brady added that there was “follow up education” provided, as well as internal benchmarks, “we have high numbers some months…because some units will say each officer has to do seven of these each quarter, some units are by June, and so you can see that, ‘oh in June there was this many checks.’”
      • Board Member Ollie Garrett agreed with a goal of total compliance with not selling to youth, but felt the challenge was in part based on outstanding staffing needs, “and it's not that they are not trained, or committed.” She believed difficulties included “getting people in to fill positions, but the staff and whether it's our industry, whether it's the restaurant industry, or whatever, customer service has dropped, folks that are being hired don't care.” Garrett found that those filling service positions “are not the same type of employees that are there to protect and work with” customers. As the president of the business organization Tabor100, Garrett had seen “at those self-checks in the grocery stores, and on and on, and all of these new kids and people they’re having to hire just to have somebody to fill the shift….it's a struggle.”
      • Board Chair David Postman suggested diving into the numbers at a meeting in November, wondering if Brady could provide “pre-pandemic alcohol compliance numbers” and compare them with recent years to see whether “the great resignation and quiet quitting and all the rest is impacting that.” He felt the whole board was “concerned about this” and did have “policy levers we can use” beyond compliance checks like looking for licensees repeatedly selling to youth. Postman added that compliance in this area “is one of the prime measures of protecting the public safety and health.”
      • Garza believed “an interesting thing is the recidivism rate has always been very low for alcohol, that they're not going to typically offend again within that two or three-year period.” The board members’ impression was that this may have changed. Garza knew anecdotally that two Olympia-area businesses were “basically just not accepting vertical IDs because they know that [when] we do our checks, we use vertical ID on those minors that go in there.” Brady promised to focus on youth compliance rates during the November 9th EMT.

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