WSLCB - Board Caucus
(November 7, 2023) - Transcript - Cannabis Observer

Right. Good morning Chair Postman; members Garrett and Vollendroff; staff and guests. The lobbies are open and the recording has begun.

Thanks, Dustin. Good morning, everybody. We will call to order the Liquor and Cannabis Board Caucus meeting for November 7th, 2023. The first thing, we're gonna make a quick amendment, an addition to the agenda. We're gonna add a briefing on the sports entertainment facility pilot program from Nicola Reid, the Compliance and Adjudications Manager. That'll be at the end of the agenda, but it was not on the original version. So, we've added that.

The first item on our agenda, though, is an executive session for the board. The board is now going to go into executive session to discuss legal matters relating to litigation or potential litigation that the agency is, or likely to become, a party too. I anticipate we will complete the executive session at 10:30, at which point we will come back into the Open Session and continue our agenda. If we're done before that we will come back and let know you, and we'll stand at ease till 10:30. If we go long, we'll come and let you know that too. So with that, if everyone can just stand by and, and we will go into executive session.

All right. Good morning, everybody. Hi, good morning, everybody. Sorry about the reverb there. Dustin Dixon, Executive Assistant to the Board speaking on behalf of the board. Their executive session conversation is running- is still continuing. So we're to going extend that executive session by five minutes now anticipating a return at 10:35. Thank you.

Okay, we are done with our executive session and we'll pick up our, I was going to say regular agenda, we'll say our amended agenda. And our next item is a briefing on Policy and Rules and I will call on Cassidy West. I'm sorry-

Chair, if I may interrupt.

Of course.

We did extend the---I know it's only going to be a couple seconds---but we did extend the executive session till 10:35.

Oh, we- Alright gotta- We'll stand at ease a minute, thank you.

So, we gotta hold on.

Yep, okay. We'll stand at ease till 10:35. Sorry about that.

Okay. It's now 10:35. Again, we're done with our executive session. We'll reconvene the meeting where you're at ease for a minute till 10:35,

And I will turn it over to Cassidy West. Good morning.

Good morning. Thank you. Chair Postman, board members Garrett, Vollendroff, Director Lukela, LCB staff, and members of the public.

I'll go ahead and start with alcohol rules updates. For the MAST 13, 13 and alcohol delivery. So that's the 5448 legislation, the rule project. We will be filing the CR-102 soon. I should have a date for you tomorrow. I'll also have an update on the trade area project for you tomorrow. Daniel will be presenting a petition response regarding beer-to-go endorsements on December 6th. More information about this petition, and all rulemaking activity can be found on the laws and rules web page.

For cannabis, the THC- I'm sorry. The THC bill, I'm working on developing conceptual draft rule language, but the internal project team as well as the class team- CLASP team members, and so that's WSDA, Department of Ecology, and Department of Health, to make sure that rules are consistent as lab standards and accreditation standards are- transition to the WSDA and Department of Ecology, respectively. I will also be working with Dr. Okey and the Cannabinoid Science Work Group to develop and refine proposed rule language. We'll be holding a stakeholder engagement session on the, on the draft rules sometime after Thanksgiving, early December, most likely

For the Cannabis sampling, I am working to incorporate feedback that we- from the collaborative rulemaking discussions that were held on October 6th, and October 11th. And I tentatively plan to have a draft of the proposed rule language publicly disseminated in the coming weeks. I'm tentatively planning on holding stakeholder engagement sessions on proposed draft rule language in early December.

For medical cannabis endorsements Daniel filed as CR-101 on October 25th. And he tentatively plans to request the board's approval for the 102 in January.

We received a petition on October 30th, that- And the petitioner request that the board consider rulemaking to extend the expiration date for the certificate of analysis for cannabis products not yet, not yet transferred to a retail store, from 12 months to 18 months. We'll be presenting a response to the board in December that will include a recommendation to either approve or deny the petitioner's request. Unless there are any questions, I can go ahead and move on to the preview for the 101 I'll be presenting tomorrow.

Just one quick question on that last one you mentioned about extending that, the shelf life from 12 to 18 months. Did you say you would bring a recommendation to us in December?

Yes. So, 60 days is December 29th.

Okay.

So, it'll be the board meeting before that.

Okay. So that's just, you know, a heads up for the public, and on, on people who you know- There's no public hearing prior to a petition coming to the board, but it doesn't stop people from sending their thoughts to, to any of us or you, and so just would encourage people to take a look at the petitions that are there. Because that next step would be for us to accept or deny, but even that is not as we said, I mean rulemakings happening, but people sometimes want to let us know whether they think we should. They're free to let us know, either in public comment or written material.

Yes, thank you. Thank you for that.

Okay, great. Thank you. Okay, you can go till- prep for tomorrow.

All right, great.

Okay, so I'm gonna provide a preview of the CR-101 to implement the provisions of Engrossed Second Substitute Senate Bill 5080 related to expanding and improving, improving the Social Equity in Cannabis Program that I will be presenting to, for the board's approval tomorrow.

In recognizing that cannabis prohibition laws were disproportionately enforced for decades, and that cu- cumulative harms from the enforcement remain today, in 2020 LCB developed agency request legislation that created the state Social Equity Program, Social Equity Task Force, an opportunity to provide a limited number of licenses to individuals disproportionately enforced- impacted by the enforcement of prohibition laws. In 2023, following the recommendations by the Social Equity in Cannabis Task Force, the LCB requested legislation that would amend and expand the Social Equity program. The legislation enacted expands the scale of the current Social Equity program, and makes it more effective by allowing additional retail stores over time. Up to 100 processor licenses immediately, and up to ten producer licenses, there will also be issued in conjunction with the processor licenses.

Additionally, Social Equity licenses are provided more flexibility to locate a store, while also retaining local control over zoning and outlet density. Rules are needed to implement the provisions of the legislation, including but not limited to: updating definitions such as "disproportionately impacted area," "Social Equity Plan," "Social Equity Applicant," and other, excuse me, definitions within the scope of the Social Equity in Cannabis Program; creating a framework and process for local jurisdiction input on outlet density; expanding a Social Equity issuance, license issuance and reissuance; providing for license mobility and county threshold establishment; and other revisions as necessary---excuse me, my voice is a little rough---to align the current rules with the scope of the legislation.

If the board votes to approve the CR-101 tomorrow stakeholder engagement sessions are tentatively planned to be held early next year, and the CR-102 is tentatively planned to be presented to the board in early April. Thank you, I'm happy to answer any questions.

Go ahead and take a drink. Go over the long-range time plan here. What, what, what are we looking for, for when signed, sealed, and delivered?

Yes, so I'll pull, I have this right over here.

We'll be doing the evaluation of the rule in December or January, and then we'll be holding stakeholder engagement, um, early next year on those conceptual draft rules, rule language. And then, on- in April, April 10th, we'd be, we are tentatively planning on bringing the CR-102 to the board. The public hearing would be held on May 22nd, and then we would be presenting the 103 to the board on June 5th, which would mean that the rules would be effective July 21st.

Okay. July 21st. Yeah. Alright, stretch- Any other questions from the board? About this?

Alright.

It's a big one appreciate, appreciate that update and we'll have lots of conversation about it between now and, and then I'm sure, so.

Sure, alright, thanks.

Okay, the next item is our amended agenda. I don't think Nicola Reid has been able to join so far. So I think Joe Radermacher is going to step in. This is for an update on sports entertainment facility pilot program update, and I do see Joe, so I'll turn it over to you. Thanks for joining.

Good morning Chair Postman, board members Garrett and Vollendroff, Director Lukela, LCB staff and members the of public. Today, I'm here to give a brief overview of the presentation that will be given at the board meeting tomorrow as a continuance of the two pilot programs we previously discussed for Levy at Lumen Field and Climate Pledge Arena in seeking the board's consideration of Licensing's recommendation to move their pilot program levels of service into permanent status. We will be doing a collaborative presentation with representatives from both arenas to discuss the pilot program process and how the process has worked through the lens of the licensees, Enforcement, and Licensing. This has been a great opportunity to continue our engagement with licensee stakeholders, and we look forward to sharing with you tomorrow. Are there any questions or concerns I can answer for you today?

Don't think so. Is there a written thing that will we have already in our inbox?

Yes, correct. There is a- There, there are two decision papers, one for each of the two licenses that will be presented at the end of the presentation, and I'm sure there's also slides that are, are the presentation that are made available to you, as well.

Okay, great. Yeah. Sorry that I did not have a chance to, to go through those yet, but will before tomorrow. Any questions for Joe? No? Okay, look forward to that presentation tomorrow. Thanks for stepping in on this.

Absolutely. Thank you for the opportunity today.

Great.

All right, and that's our last agenda item except for executive assistant and board member reports. Dustin anything from you today?

Nothing today. Thank you, chair.

Board colleagues?