Washington Pot Shops Can Use Certain Cashless Options, Officials Say

Seattle WA

20 April, 2022

7:34 PM

Description

WASHINGTON — State regulators sent a message to licensed marijuana sellers this week, clarifying state rules for payments, which can allow for shops to implement limited non-cash options. The announcement follows a public meeting among retailers, lawmakers and members of the state Liquor and Cannabis Board in March, citing a "massive public safety crisis." In just the first three months of the year, law enforcement agencies reported more than 70 robberies at pot shops across the state, a figure up significantly from fewer than 50 reported in all of 2021. Many of the recent incidents have involved weapons and some turned deadly. Three people were killed during robberies over just four days in March. Cannabis retailers have become an outsized target for thieves, due in part to the drug's Schedule I federal classification, which limits how shops can utilize banks and results in a large amount of cash transactions. Pot shop owners and state lawmakers have renewed calls for the Senate to pass the SAFE Banking Act, which would allow banks to do business with licensed marijuana stores without incurring federal penalties. Following last month's discussion, the board sent a clarification about its rules Tuesday, which allow for a limited range of alternative payment options, including smartphone apps. "There is concern in the industry about what kind of financial systems are allowed for retailers," Tuesday's bulletin reads. " The LCB developed WAC-314-55-117 to clarify what is allowed, but awareness of this rule has been slow to take hold. Essentially, the rule allows retailers to engage in business with third-party vendors to allow for cashless transactions with customers. Transactions may be conducted through an app on the customer's phone." The LCB also worked with the state Department of Financial Institutions to share a list of local banks, credit unions and other services that are licensed to provide some financial services to the cannabis industry, including Sound Community Bank. At least two apps can also assist with non-cash payments and bank transfers. According to the Capitol Hill Blog, a small number of Seattle shops have already implemented non-cash options, like accepting debit cards.