SUCCESS IN STRIDES

Many important legal questions were addressed at the first-ever Washington cannabis policy conference, which happened at the University of Washington Law School in June.

According to mynorthwest.com, the organizer of the event, Sam Mendez shared that although Washington legalized recreational cannabis two years ago, there are still many questions to be answered. Mendez shared some questions that were addressed, “Such as what to do about pesticides now, what about access to youth. And a number of other issues that, now that we have at least a state legal system, how do we approach that from a policy perspective to make sure the system works?”

Sam Mendez is the executive director of the Cannabis Law and Policy Project (CLPP), which not only organized the cannabis policy conference, but the organization also conducts essential research alongside the Washington State Liquor and Cannabis Board (WSLCB).

Like with the launch of any new industry, the transition into recreational cannabis has not always been the smoothest. For example, when recreational cannabis became legal in Washington back in 2014, the medical cannabis market was basically forgotten, leaving medical dispensaries forced to shut their doors.

The work that Mendez and his organization have been doing alongside the state’s board has produced research unique to the market. Mendez shared with mynorthwest.com, “We concluded that between about 1.7 to 2 million square feet would satisfy the current medical marijuana market. At the same time, the WSLCB had licensed 10 million square feet of canopy for the state. It’s now up to about 12 million square feet. So we concluded that the current allotment was enough to satisfy demand for both the recreational market and the medical market in Washington State.”

There are still many other issues Washington’s cannabis market continues to face, which include problems with taxes and banking. For example, cannabis businesses are facing difficulty working with the Internal Revenue Service (IRS) and deducting expenses due to Section 280E of the Internal Revenue Code. This code prohibits businesses from deducting expenses from income associated with Schedule I or II substances, and cannabis is still deemed a Schedule I substance on the federal level.

Cannabis businesses also face difficulty when it comes to banking. Many banks are federally chartered, which means they are not permitted to take on medical and recreational cannabis businesses as clients, because these businesses are operating illegally under federal law. Although some credit unions have taken clients in the cannabis industry, many businesses have to depend on cash transactions. Carrying large sums of cash is not only inconvenient, but it can be dangerous by attracting thieves.

These problems and more were addressed at Washington’s first conference of its kind. By working together as a community and with government officials, Mendez and his team hope to see positive changes in the future of cannabis business.