Washington Gov. Jay Inslee.

OLYMPIA, Jan. 22.—After a meeting that many had hoped would settle the marijuana question once and for all, Washington Gov. Jay Inslee and Attorney General Bob Ferguson emerged from a talk with the nation’s top law enforcement official with no assurance that the feds will stand aside and allow the state to proceed with legalization.

The two Washington-state officials met with U.S. Attorney General Eric Holder Tuesday in the nation’s capital, where they had been mixing business with pleasure as they attended President Obama’s second inaugural. Speculation was rife in this Washington that Holder would deliver a message on behalf of the Obama Administration – that the feds will not sue to stop the full legalization of marijuana authorized by this state’s voters last November. But no such message came, Inslee and Ferguson told reporters in a conference call afterward.

“He said nothing to show what direction he was heading or where he would like to end up,” Inslee said.

Yet a no-comment was as good as a go-ahead for the rulemaking process now under way at the state Liquor Control Board, they said. Inslee said he wants the state agency to continue writing regulations for the strictly controlled marijuana market that will be created in Washington by the end of the year. The burning question right now is whether the U.S. Justice Department, which Holder heads, will file suit to block legalization in Washington state and Colorado. Though voters in both states said yes to legalization, by 56-44 in Washington, marijuana remains illegal under federal law.

Said Ferguson, “The one thing that I really emphasized, and what the governor emphasized was, and I said it directly to Attorney General Holder – look, we want to avoid a legal fight here. We want to find a pathway for working with the federal government. That said, obviously I made it clear to Attorney General Holder that if it comes to it, the attorney general’s office in Washington state will be prepared if we need to go to a legal fight.”

No Clear Signal

Thus was dashed the hopes of many interests in this state that Holder would follow through with the message Obama delivered to television talk-show host Barbara Walters last month – interpreted by some as a promise that the federal government would turn a blind eye and allow the Evergreen and Mile-High states to go their own way. Obama stated that the feds “had bigger fish to fry.” But a pledge to a television interviewer is rather short of a formal legal statement. Many interpreted Obama’s statements during the 2008 campaign as an indication that the feds would stay their hand in medical-marijuana prosecutions. And yet arrests continued.

Given the millions that entrepreneurs are expected to invest in the new marijuana industry, Holder’s failure to commit either way may be a bit unsettling. Inslee said he had no advice for those who might wish to invest in what is expected to be a billion-dollar marijuana business in this state.

Inslee said, “Well, I’m not in the business of giving investment advice, so I’m not going to start today to give investors particular advice – except to say this. We have a governor and an attorney general who are intent on following the will of Washington voters. We believe that there is reason for some confidence that we can do that and respect the voters’ will and to protect state employees. This needs further conversation with the federal authorities, and we are pursuing that. And that is all I can say right now.”

The Half-Full Glass

On the other hand, Holder didn’t say he was taking Washington to court, either. Inslee said he didn’t press Holder for a decision, and he said he remains hopeful that eventually the U.S. Justice Department will see things Washington’s way. He said Holder asked insightful questions about what this state will do to ensure that legal marijuana in this state will not find its way into states where marijuana remains illegal. “I think what we had was a confidence builder that we have an attorney general who was a colleague and who is going to give this a full and fair evaluation,” the governor said. “I think it is going to give us an opportunity to make our case to allow us to express and respect the voters’ will, and I think that is a good thing, so all I can tell you is that I am encouraged by this discussion. That discussion is going to continue. And we’re going to continue on the path that we are on, which is to adopt the rule[s] and to make every reasonable effort to effectuation of the will of the voters and bring this initiative home.”

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