WSLCB - Executive Management Team
(January 8, 2025) - Summary

Legislative affairs, social equity, traceability, rulemaking, and the board’s role at WSLCB were among topics discussed at the first public meeting of agency leadership in 2025.

Here are some observations from the Wednesday January 8th Washington State Liquor and Cannabis Board (WSLCB) Executive Management Team (EMT) public meeting.

My top 6 takeaways:

• Director of Legislative Relations Marc Webster provided a legislative update, and Board Chair Jim Vollendroff followed up with a question about the cannabis policy committee in the Washington State House of Representatives (WA House, audio - 3m, video - TVW, video - WSLCB).
  • Webster previously reviewed legislative priorities in November 2024.
  • During the EMT, Webster stated that the 2025 legislative session would begin on Monday January 13th, noting that WSLCB staff had been looking for sponsors for their "modest legislative agenda,” which included a request bill for data sharing between the agency and the Washington State Department of Health (DOH) related to sale of medically compliant cannabis products.
  • Webster had met with the new chairs of the policy committees in the legislature including the Washington State House Consumer Protection and Business Committee (WA House CPB) which was chaired by Representative Amy Walen, whom WSLCB staff had worked with previously.
    • In the preceding legislative biennium, cannabis bills were heard by the  Washington State House Regulated Substances and Gaming Committee (WA House RSG) which was disbanded at the end of 2024.
  • The primary Senate cannabis policy body remained the Labor and Commerce Committee, where the retirement of Senator Karen Kaiser resulted in the appointment of Senator Rebecca Saldaña as the new chair. Webster pointed out she was “somebody we've worked a lot with in the past, most notably on the social equity bill, Senate Bill 5080, from 2023.”
    • WSLCB finalized rules implementing that law in December 2024.
  • Webster planned to provide the board with legislative updates during caucuses throughout the session as well as scheduling additional meetings with the board as needed. He indicated agency representatives would give a presentation to WA House CPB members on Tuesday January 14th, focusing on the regulation of alcohol, tobacco, and vapor products, while a cannabis regulatory briefing remained possible later in the session.
    • Webster also mentioned that he would be doing legislative team meetings for agency staff to analyze bills and spot potential issues.
  • Vollendroff confirmed the new House policy committee name and asked if Webster had a list of the members of that committee and to send them on to the board, which Webster promised to do (audio - 1m, video - TVW, video - WSLCB).

• Director of Licensing and Regulation Becky Smith gave an update on the social equity program, and Board Member Ollie Garrett followed up with a question about new license types.
  • Smith was part of a WSLCB panel which gave a legislative update to WA House RSG in December 2024.
  • Smith stated that the LCB had just signed a contract with Alta Point Consulting LLC to review social equity applications to determine if they meet criteria set by statute and agency rule. She noted it “definitely [wa]s a very thorough contract that had a lot of folks reviewing the contract" (audio - 1m, video - TVW, video - WSLCB).
    • When Vollendroff inquired about the scope of work, Board Member Ollie Garrett mentioned their role would be the same as Ponder Diversity Group, which had been contracted to review the initial round of applications and score them against a WSLCB-developed rubric (audio - 1m, video - TVW, video - WSLCB).
    • Smith did not mention that the scope of work associated with the contract was increased in late November after the announcement of Alta Point as the apparently successful bidder in October.  Licensing staff sought out board approval to have the vendor score applicants for transfers and assumptions of social equity licenses—the means of selling a license to another party—which hadn’t been required of Ponder Diversity Group.  That change likely increased the amount of time required to come to agreement with the vendor.
  • Smith remarked the WSLCB sent out a survey to local authorities which included questions about awareness of the social equity program, local caps on the number of licenses, reducing buffer zones, and interest in learning more. She reported that 12 local authorities indicated they had a cap on licenses, nine responded they did not, and two did not want to provide any information. Smith also noted that fifteen local authorities would not be reducing buffer zones, five relayed they would, and three did not want to provide any information about reducing buffer zones (audio - 1m, video - TVW, video - WSLCB).
    • Smith also stated that the WSLCB would continue to reach out to local authorities to encourage them to allow for more retail social equity stores. “I think a lot of it needs to be around education,” she added.
    • Garrett suggested sending local officials a link to the dedicated cannabis account data dashboard showing revenue in different geographies, especially to authorities in areas with moratoriums, and then resend the survey since there may be new officials due to the November 2024 elections. She thought “timing is everything,” and the information "could be something that stand out to them” (audio - 3m, video - TVW, video - WSLCB).
      • Smith responded that staff already sent similar data in letter form, but agreed to send the survey again.
  • Smith then reported that the number of licensed social equity businesses had increased to seven, “we still have four applicants that have found a location, and two are at their final stages of getting licensed, and then one is that final inspection, and the other one just then needs to submit their insurance documents to actually be licensed.” She celebrated this progress by comparison to faltering efforts in other states, stating, “there's a lot of other states out there that haven't even had one social equity retailer or application be successful.” Speaking more favorably about the WSLCB program, she noted, “although small, we are making some movement" (audio - 2m, video - TVW, video - WSLCB).
  • Additionally, Smith also said she sent letters to retail and non-retail licensees about Business Licensing Services (BLS) regarding application delays and other alcohol-related issues (audio - 2m, video - TVW, video - WSLCB).
  • Garrett asked whether there had been any discussion about new license or permit types within the cannabis industry, such as consumption lounges (audio - 4m, video - TVW, video - WSLCB).
    • Smith demurred that Director of Policy and External Affairs Justin Nordhorn would be more likely to have information to share about that.

• Director of Policy and External Affairs Justin Nordhorn briefed on the WSLCB Research Program, highlighting the release of two data dashboards, surveys, research briefs, and a proposal potentially impacting research licensees (audio - 2m,  video - TVW, video - WSLCB).
  • Staff reviewed the first two cannabis data dashboards at the previous day’s board caucus.
  • During EMT, Nordhorn stated that the Research Program would continue to develop data dashboards beyond the two available online. He observed that the dashboards were interactive, allowing users to "drill down in those areas of interest."
    • Other dashboards under development were mentioned by Vollendroff on January 7th.
  • Nordhorn also suggested the team was coordinating an agency-wide approach for surveys to increase efficiency and develop consistent processes.
  • Nordhorn reported that WSLCB received an exempt determination from the Washington State University Institutional Review Board for a follow up budtender survey intended to clarify how cannabis retail employees see their role when interacting with customers and their interest in further education. He indicated "the survey will be going out within the…next couple of weeks" (audio - 1m, video - TVW, video - WSLCB).
  • Nordhorn mentioned that in addition to completed research briefs available on the WSLCB website, there were more in progress, including topics such as blood alcohol content (BAC) driving limits and cannabis consumption lounges (audio - 1m, video - TVW, video - WSLCB).
    • SB 5067 (“Concerning impaired driving”) was prefiled for the 2025 session regarding lowering the allowable BAC. The measure was a request bill put forward by the Washington Traffic Safety Commission (WTSC).
  • Finally, Nordhorn noted Research Program staff were working on a proposal to become “the board’s designated scientific reviewer” for cannabis research licenses outlined in RCW 69.50.372. Confident in the ability of the three Ph.D.s to serve as scientific reviewers, Nordhorn acknowledged for “any expertise that we wouldn't necessarily have, we can continue to find a vendor to help in those particular specialized areas.” He shared that the current contractor “isn't really interested in continuing” when their contract expired in June, and the arrangement would have “cost savings” for research licensees (audio - 2m, video - TVW, video - WSLCB).
  • Vollendroff recognized the work of the research team, saying that the data dashboards were "exemplary" and "exactly the type of information and data that we should be making publicly available” (audio - 1m, video - TVW, video - WSLCB).

• Nordhorn also provided a short rulemaking update which hinted at process changes which Vollendroff voiced his support of (audio - 3m, video - TVW, video - WSLCB).
  • Nordhorn mentioned that the Policy and Rules team was exploring rule development process improvements, particularly around petitions, and had gathered preliminary data from other agencies regarding their processes. He commented that WSLCB received “a significantly greater number of petitions than other agencies."
    • Nordhorn mentioned that they would keep collecting responses from other agencies until the end of January but had already learned that the agency was fielding more petitions than comparable and even much larger agencies. He also announced that WSLCB had opened recruitment for a Policy and Rules manager position.
      • The former manager, Cassidy West, left the agency under unclear circumstances in December 2024.
    • He also announced that the LCB would be presenting an update at the Washington Impaired Drivers Advisory Council (WIDAC) meeting on Thursday January 9th.
      • During the meeting, Nordhorn shared perspective on the agency legislative agenda and the greatly changed legislative context while hinting at anticipated legislation.
  • Product Samples (audio - 2m, video - TVW, video - WSLCB, Rulemaking Project)
    • Nordhorn revealed that supplemental rule language related to regulation of licensee internal quality control and retail vendor samples would be released “at the end of January.” He said this came about after hearing feedback from trade associations along with “specific licensees who have more of a, for lack of a better term, a niche kind of market.”
  • Vollendroff supported the review of the number of petitions recommended for consideration by Policy and Rules staff, stating he felt that "we take on more than we can accomplish in a reasonable amount of time" which he did not think was the best “customer service.” He also noted they were “starting to ask our internal staff for suggestions around rule petitions, and when we can't get to those because we're so backlogged on other things” it might suppress participation. Vollendroff expressed his appreciation for the work Nordhorn was doing to review the process (audio - 1m, video - TVW, video - WSLCB).

• Deputy Director Toni Hood provided an update on the WSLCB traceability project, including a survey of licensees and a comparison of the current system to future requirements (audio - 3m, video - TVW, video - WSLCB).
  • Office of the Washington State Auditor (WA SAO) staff discussed the traceability system with lawmakers in November 2024 following a performance audit of WSLCB.
  • Hood stated that the traceability project team, staffed by Project Manager Krystin Boydstun and Community Engagement Specialist Dustin Brown, had completed a survey with licensees at the end of the year and received approximately 390 responses. She remarked, “I'm really excited that they've thought ahead to work with the research team to figure out how to use this data.”
  • Hood reported that while only two traceability integrators responded to the survey, the team had notes from previous meetings and workgroups with integrators that would be incorporated.
  • She also highlighted that Boydstun met with her counterparts in other states to discuss whether they had conducted a feasibility study before competing a Request for Information (RFI) or Request for Proposal (RFP), and was reviewing the requirements developed for the previous RFI, finding some duplication and areas that needed to be cleaned up.
    • In late 2024, Cannabis Observer requested WSLCB records which included email addresses of employees of traceability vendor Franwell Metrc.  Aside from Metrc’s response to the 2023 RFI, we received emails indicating Sundial Advocacy Lobbyist Nick Streuli, formerly the Executive Director for Policy and Outreach in the Office of Governor Jay Inslee, arranged for an hour-long meeting between Metrc representatives and senior WSLCB staff on October 24th.
      • In addition to Boydstun and Streuli, Deputy Director Toni Hood and CIO George Williams were expected to attend along with Metrc Government Affairs Director Jean Robinson and Vice President of External Affairs and Business Development David Urbanowicz.
      • There were no responsive follow up communications related to the meeting. At publication time, Streuli remained on retainer with Metrc for $6K/month through 2026.
  • Hood mentioned that the team was creating a chart comparing what the existing system, the Cannabis Central Reporting System (CCRS), did versus the requirements compiled for a future traceability system, in order to show where the current system was lacking. This “might be helpful in future funding requests if the agency chooses to do that,” she said before stating the information would be presented to the director's office division meeting.
    • The Governor’s final budget proposal released in December 2024 showed funding for the WSLCB “Cannabis Traceability Project” and “Project Management Office” were among several requests by the agency which were not granted. At publication time prior to the legislative session in relation to an executive transition, it remained unclear what would occur around state budgets.

• Vollendroff provided closing comments at the end of the meeting, noting a new board member was expected soon, and sharing his philosophy as chair (audio - 3m, video - TVW, video - WSLCB).
  • Vollendroff was elevated to Board Chair in December 2024 following the departure of the former chair, David Postman.
  • At the end of EMT, Vollendroff remarked that he believed that Governor-Elect Bob Ferguson’s team was getting closer to a formal announcement about a new board member, stating, "I'm hearing rumors that there will be a new board member coming on in the near future."
    • At the conclusion of the prior day’s board caucus, Vollendroff brought up the board vacancy and conveyed that once someone was appointed, “we are anticipating going into an executive session and having conversations about our various meetings, our frequency of those meetings, the content of those meetings, etcetera. But we wanted to wait until we had a third board member on before we did that” (audio - 1m, video - TVW, video - WSLCB).
  • Vollendroff expressed interest in continuing conversations about process changes around rulemaking petitions and other topics.  He added that he had been very clear with Director Will Lukela about his role as board chair, and the importance of reinforcing the perception that the board was "staying in its lane and not getting involved in operations.” Having said that, Vollendroff remained curious and felt he had an obligation to better understand agency business.
    • Vollendroff also stated that he remained open to being told he was "kind of coming out of your lane a little bit or whatever.”
  • He went on to mention an example that had piqued his curiosity regarding the year-end notice about signage for high tetrahydrocannabinol (THC) products, which he claimed had led him down a "rabbit hole… I wonder how E&E operationalizes this, and how do officers get trained? And…how much time are we going to give people to [be] educated on this, and at what point are we going to start being more on the enforcement side?" Vollendroff stated that he backed off until he asked Lukela if it was okay to talk to Enforcement and Education staff about those things, and had been encouraged to speak with Acting Director of Enforcement and Education Paul Magerl.
    • The development and posting of additional warning signage for high-THC cannabis products was a requirement established in 2024 legislation HB 2320 which mandated retailers display a “conspicuous notice” by December 31st, 2024. Public Health Education Liaison Kristen Haley and Research Program staff worked with the DOH Youth Cannabis and Commercial Tobacco Prevention Program (DOH YCCTPP) during the latter half of 2024 to draft the resulting language, the final version of which was shared with retailers on December 30th.
      • To Cannabis Observer’s knowledge, no cannabis sector licensees, representatives, patients, nor consumers were consulted on the presentation of the information on the sign, nor the associated website.
    • Earlier during his update, Director of Communications Brian Smith highlighted his expectation that a story from NPR affiliate KUOW related to high-THC cannabis would be published soon. “They went through a lot of our data and had a lot of questions around that,” he said, noting that Haley was on point for responding to their inquiries.
      • The article, “Weed sick: High-potency cannabis leads to ER visits, illnesses for some users,” was published shortly after the EMT meeting.
  • In conclusion, Vollendroff reiterated how he understood that the board had a role that was distinct and separate from operations and aimed to respect that boundary.