Here are some observations from the October 31st WSLCB Board Meeting and the Executive Management Team meeting.
My top 3 takeaways:
- During Wednesday’s Board Meeting, action was taken on several cannabis items.
- The Board adopted a revision of their interim policy which enables licensees to phase-in the packaging and labeling (PAL) rule requirements adopted in May. The deadline for compliance with the new PAL rules was pushed out six months from January 1st, 2019 to June 1st, 2019 (audio).
- The Board adopted final language for both the 2017 and 2018 Cannabis Legislation Implementations. The 2017 Cannabis Legislation has been in development for over a year and covers a wide array of technical/descriptive changes (audio). The 2018 Cannabis Legislation focuses on testing of cannabidiol produced outside the 502 system used in 502 products (audio).
- The agency opened rulemaking on two significant cannabis topics: enhanced traceability penalties and true parties of interest (TPI).
- The Cannabis Penalties rules package will offer “guidance on when to escalate a [traceability] violation which may be viewed as aggravated.” The current penalty matrix for traceability violations has been under review in response to recent Enforcement actions. Proposed rules may also address consistency in settlement offers (audio).
- A TPI rules package has been pulled out of the 2017 Cannabis Legislation rulemaking (audio).
- At the EMT meeting, WSLCB Deputy Director Pat Kohler’s update on the state’s traceability implementation revealed MJ Freeway will not meet the schedule for the November 6th Leaf release (audio).
- A subsequent email to licensees confirmed the delay, adding: “In the case of 1.37.5, liquidated damages will be applied after the missed deadline.”
- In the latest contract amendment, WSLCB added financial incentive and penalty language in an attempt to encourage MJ Freeway to deliver on schedule. Starting November 7th, MJ Freeway begins accruing penalties at the rate of $3750 per day until delivery of release 1.37.5.