![\"Conference](\"https:\/\/missionvalleynews.com\/wp-content\/uploads\/2017\/03\/web-MAIN-cannabis-conference1.jpg\")
<\/a>Gabriel Johnson, a marijuana grower, said he came to the conference because he\u2019s interested in getting to know what the laws are going to be and any potential changes to them that are coming up.<\/p>\n
\u201cIt\u2019s very vague right now with what the laws and regulations and procedures are,\u201d he said, adding that he is especially interested in real estate aspects of the laws because he is looking to buy a property to farm.<\/p>\n
One of the other consultants who presented at the conference was Derek Davis, CEO of California Cannabis CPA, who jokingly described his presentation as \u201cthe most interesting topic in the world, which is taxes.\u201d<\/p>\n
Davis said marijuana business entrepreneurs need professional help because there are special rules and tax codes for the marijuana industry that need to be followed, and knowing what is legally deductible could be the difference between success and failure.<\/p>\n
\u201cThey unjustly penalize cannabis-related companies by not allowing them to deduct a lot of their business expenses and so what ends up happening is you end up with a huge tax rate,\u201d he said.<\/p>\n
Despite the complicated tax codes involving marijuana businesses, Davis recommends that marijuana business operators pay the taxes and be thorough with their returns.<\/p>\n
\u201cThe risk is higher to not pay your taxes because it\u2019s tax evasion,\u201d he said. \u201cThe classic example is Al Capone, who was caught for tax evasion, not bootlegging.\u201d<\/p>\n
A question on the minds of many of the conference attendees was whether they would \u201cget caught\u201d up in what Simms described as the \u201cfederal situation\u201d \u2014 the fact that marijuana is still an illegal drug in the eyes of the federal government. And the federal government has just given the marijuana industry a reason for concern.<\/p>\n
On Feb. 23, White House Press Secretary Sean Spicer said that the Trump administration would pursue \u201cgreater enforcement\u201d of federal marijuana laws, despite several states, including California, that have legalized.<\/p>\n
Simms said the announcement will have a \u201cchilling effect\u201d on some new investors, especially on \u201cbig money\u201d investors who only recently have begun to see the industry as viable. But, she said, people who have been doing this for a long time have been dealing with the federal uncertainty all along.<\/p>\n
\u201cThis is just more of the same bullying that we have been fighting in California for over 20 years,\u201d she said. \u201cThis is far from settled and far from over. The cannabis industry, both in the state of California and federally, have many more years of ups and downs and bumps and twists, and that\u2019s part of the fun but it\u2019s also part of the challenge. It is high risk, high reward.\u201d<\/p>\n David McPhearson, principal at HdL Companies which works with governments to draft marijuana policy and legislation, said that because California\u2019s Proposition 64, which legalizes recreational marijuana, is not in effect yet, it gives businesses in the state a chance to slowly transition and keep an eye on what the Trump administration\u2019s policy eventually becomes.<\/p>\n \u201cIf the new administration cracks down, no one is settled in yet,\u201d he said. \u201cSometimes being not the first mover is a good thing.\u201d<\/p>\n Even without the threat of stricter federal enforcement, marijuana businesses face regulatory challenges locally.<\/p>\n Chris Boudreau, CEO of M Deliveries, spoke about the future of marijuana delivery businesses and how a new rule requires deliveries be only from licensed and permitted dispensaries.<\/p>\n \u201cYou\u2019ve got opposing directions,\u201d he said. \u201cIn one direction, you\u2019ve got a world and a marketplace that is becoming increasingly interested in delivery of things that are fast and convenient. On the flipside, you\u2019ve got increasing regulatory challenges that make delivery of cannabis more difficult.\u201d<\/p>\n Boudreau\u2019s delivery business will not be affected because he is in the process of opening a Mission Valley dispensary at 3455 Camino del Rio South that is tentatively named Emerald Courtyard.<\/p>\n He said that his experience in opening the legal dispensary makes it understandable why there are so many delivery businesses that aren\u2019t code compliant.<\/p>\n \u201cThe cost of starting a dispensary is so, so high that it makes it impossible for most people and so if you can\u2019t do that, it limits what you can do,\u201d he said, adding that his own dispensary went through 31 months of review until it was approved by the city and it will cost around $1 million when completed. He suggested a regulated delivery system might be a solution.<\/p>\n \u201cIn San Diego, you can\u2019t be in manufacturing or growing so if you want to be in the business, you have to be in retail,\u201d he said. \u201cSo, it seems like a sensible compromise that we could allow some delivery if they go through some kind of city process.\u201d<\/p>\n Another city process that marijuana business advocates would like to see changed are the strict land use rules governing dispensaries and other marijuana-related businesses.<\/p>\n \u201cHowever, we could live in a city that has an outright ban,\u201d Simms said. \u201cI\u2019m grateful that we, as a city, decided to be more progressive.\u201d<\/p>\n<\/a>