Record-sealing for drug convictions: 5 Questions for The Color of Cannabis’s Graydon Washington

Washington discusses the role record-sealing can play in getting cannabis and psilocybin businesses off the ground, and other lessons the psilocybin industry might learn from cannabis.

About one in three Americans has a criminal record and those records can have lifelong consequences that make it harder for a person to rent a home, get a job, or obtain a professional license or bank loan. In November, Colorado voters passed Proposition 122, which established psilocybin services in the state, and decriminalized the use and possession of other psychedelic drugs including DMT, mescaline, and ibogaine. Days after the Governor certified the election results, an organization called The Color of Cannabis announced a clinic to seal criminal records for people with drug-related convictions. The non-profit group promotes equity in the cannabis industry for communities of color negatively impacted by the war on drugs. The idea behind their record sealing clinic was to make sure the people charged with drug-related crimes in the past were not left out of the future cannabis and psilocybin industries in the state.  

To seal a criminal record means information about a person’s record of arrest and conviction is hidden from the public. Most states allow people to apply to have records from a criminal case sealed if the case was ultimately dismissed or acquitted. Many states also have special provisions allowing some people with previous drug charges to seal their records. But that record-sealing doesn’t happen automatically (though some states with so-called clean slate bills are pushing for that to be the norm). The process for navigating record sealing varies by state and can be both expensive and time-consuming for applicants. 

Graydon Washington is The Color of Cannabis’s director of operations. He spoke with The Microdose about the role record-sealing can play in getting cannabis and psilocybin businesses off the ground, and other lessons the psilocybin industry might learn from cannabis.

What led The Color of Cannabis to hold that January record-sealing event?

We saw an opportunity with Proposition 122 passing to clean up records for folks who might’ve gotten psychedelics charges. Most folks did come in for cannabis charges, but there were also a few who have had arrest records for psychedelics. 

We know that it’s a lot of work to educate yourself on the process, let alone talking yourself into actually starting the legal paperwork. After that, you have to wait for weeks or even months for a response. For some people it’s also an emotional process — it can be challenging to get out the door and face these previous charges. But cleaning up that background can release people from worrying about the past still haunting them, or holding them back from building a better life for themselves.

How does having a criminal record affect people’s ability to get into the cannabis industry — and how do you expect it will influence the psilocybin industry?

In cannabis, a criminal record can really affect whether you get a small business loan. But not even business loans — if you want to just get any kind of loan, for a house or for a car, you could be denied if you have a felony charge on your record. It really affects people on a day to day level; if people do a background check after you’ve applied for a place to live, you might be denied if you’ve got something on your record, even though possession of cannabis or certain psychedelics is now legal.  

What happens at these record-sealing clinics? 

Folks have to bring an ID just to confirm their identity; they fill out an intake form, and there’s food in the seating area while they wait to talk with a lawyer. Those lawyers talk with them one-on-one about their situation — every situation is a bit different, but they can take steps towards remediation. We’ve partnered with Vincente, a law firm who had a big hand in passing Proposition 64, which legalized marijuana in Colorado. 

You’ve been in the cannabis industry for the last decade. What other barriers have you seen cannabis entrepreneurs facing that might also be a hurdle for psilocybin business owners?

Our tax code is one of the most difficult aspects of trying to open a cannabis business. In the IRS’s tax code, 280E dictates that dispensaries can’t take business deductions because they’re involved with trafficking, since cannabis — and psilocybin — are illegal drugs at the federal level. This really squeezes out the little guys; you have to have deep pockets to withstand the tax burden. We talk about equity but it’s the tax code that’s most regressive. 

Until 280E goes away, it’s going to be large corporations who are in a position to succeed. That’s been true of cannabis and I can see it potentially being even more restricting for psilocybin, since the cost of maintaining a psilocybin center could be even higher. Rather than just a retail store, you also have to pay therapists; there’s more human capital involved. 

How would you compare how equity issues are being addressed related to psychedelics in Colorado compared to what you’ve seen in cannabis?  

I see major differences in the conversations around equity. When Prop 64 passed, it didn’t have equity provisions. And that wreaked havoc on communities of color. But I’m seeing more focus on equity in psychedelics, particularly towards including Indigenous communities. But I do think that if we aren’t careful, the same old issues could crop up — it’s like history repeating itself, but in a different costume.  One thing we preach is being proactive versus reactive. We want to show up and get involved in policy discussions while they’re happening rather than reacting to changes legislators make on our behalf. 

This interview has been edited and condensed for clarity and length.