The WSLCB may re-evaluate fundamental regulatory choices about tied house rules and financing that structure the Washington I-502 marketplace.
Here are some observations from the November 7th WSLCB Executive Management Team meeting.
My top 3 takeaways:
- Director of Licensing and Regulation Becky Smith presented to the Board and agency leadership for thirty minutes on “Financier Vetting and Investment Opportunities” (audio).
- The presentation surveyed options to modify rules and internal policies on fingerprint requirements; license owner access to pre-vetted personal funds; revolving loans; limiting vetting to +10% owners or contributions greater than $10,000; and entering into relationships with publicly traded companies.
- Smith is considering convening “a few folks from industry” to better understand their concerns and suggested approaches.
- Board Member Russ Hauge: “…the problem is how can we make the cannabis business more like business—period—and still meet our obligations?”
- Director Rick Garza’s update prompted discussion about re-evaluating the agency’s strict tied house rules (audio).
- There appears to be interest in updating rules to provide “…support or incentive for smaller businesses, along the lines of what happens with the craft breweries and the wineries.”
- WSLCB has suggested this topic as a draft agenda item for the next Cannabis Advisory Council meeting (December 12 or January 16).
- In the interim, the Board requested an effort to marshal knowledge from within the agency to more clearly define the scope of potential changes.
- Director of Communications Brian Smith mentioned preparations to publicly announce the emergency suspension of two licenses issued to North Coast Concentrates (audio).
- WSLCB Communications issued a press release later in the day.
Follow Up (November 21, 2018)
Here is a transcript of the “Financier Vetting and Investment Opportunities” segment of the November 7th WSLCB Executive Management Team meeting generated by Cannabis Observer on request from one of our Patreon Allies, and the slidedeck obtained via public record request.
- “Financier Vetting and Investment Opportunities” by Becky Smith (WSLCB Director of Licensing and Regulation) and Nicola Reid (WSLCB Licensing Compliance and Policy Manager).
- Audio (previously released)
- Slidedeck: “Financier Investigations (November 7, 2018)” (PPTX)
Follow Up (November 23, 2018)
At the November 7th WSLCB Executive Management Team meeting, the WSLCB Licensing division presented a cannabis retailer update. Here is Cannabis Observer’s source audio, transcript, and the single page meeting handout obtained via public record request.
- Licensing Update by Kaitlin Leeberg, WSLCB Licensing Management Analyst.
- Audio (10m21s)
- Transcript (1788 words, 6 pages)
- Handout: “Retailers Not Reporting Sales – Update 11.7.2018” (PDF)