A coalition of 22 attorneys general from both parties is calling for Congress to approve a marijuana banking law that was approved by a Senate committee last Wednesday.
In a Tuesday letter to congressional leaders, nearly half of the U.S. states’ top law enforcement officials said that they are “strongly interested in enabling economic stability and growth while protecting the physical and financial wellbeing of constituents who work in this industry.”
The attorneys general noted that marijuana policy “is evolving rapidly and the industry grows even faster.” They cited the fact that most states have legalized some form of cannabis, which has created hundreds of thousands jobs and billions in profit.
They wrote: “The current federal law presents a risk of civil and criminal liability for banks that provide services to state licensed cannabis dispensaries, and other businesses.” This risk has severely limited the ability of banks to provide services to cannabis operators who are regulated and left these businesses struggling to get financing.
The letter states that “further, when the public perceives regulated businesses as only being able to conduct business with cash, both employees and customers face a greater risk of violent crimes in pursuit of this cash.” In several jurisdictions, there has been a rise in the number of robberies at cannabis businesses. Some of these have led to deaths. Stable access to regulated banks is crucial to the success of these businesses as well as their physical safety.
The top officials in state law enforcement said that federal policy complicates the state tax collection process and the oversight of the marijuana business. The Secure and fair Enforcement Regulation (SAFER), Banking Act, which passed the Senate Banking Committee Wednesday and is now headed to the floor of the Senate, “would ensure state governments don’t forfeit hundreds of millions in tax revenues that the cannabis industry produces.”
To address these challenges, “we ask that the Senate advances the SAFER Banking Act” or similar legislation which would establish a safe harbour for depository institution providing a financial service or product to a regulated businesses states that have regulations ensuring accountability in the cannabis sector. A safe harbor that is effective would bring billions into the banking industry, allowing law enforcement, federal and state tax agencies, as well as cannabis regulators, in 38 states and multiple territories, to monitor and ensure compliance with cannabis businesses and transactions.
Our banking industry needs to be equipped with the right tools to meet the demands of all businesses in the various states and territories. The letter concluded that this will allow the development of a banking network for cannabis-related businesses which is both effective and responsive to the needs of our economy. We look forward to working together as Congress advances in this process, and lending our expertise and voice as you draft legislation.
The letter was written by Maryland Attorney-General Anthony G. Brown, Washington, D.C. Assistant Attorney General Brian L. Schwalb, and Oklahoma Attorney-General Gentner Drummond. The letter was signed by attorneys general from Georgia, Hawaii Illinois, Arizona Massachusetts California Maine Colorado Michigan Connecticut New Jersey New Mexico Washington State Nevada New York Oregon Pennsylvania Rhode Island Vermont and Oklahoma.
This is a much larger list than last year when only the attorneys general from Colorado and Ohio pleaded with the Senate leadership to take action to solve the banking issue for the cannabis industry.
In 2021, a second group consisting of four attorneys general from both parties sent a letter to the leaders of Congress . They argued that any federal legalization of marijuana should respect state autonomy while providing resources necessary to ensure cannabis is properly regulated.
The latest letter focuses on the SAFER Banking Act which will be brought to the floor after a committee meeting on Wednesday. Senate Majority leader Chuck Schumer (D-NY), has promised to bring the bill to a vote “as soon as possible.”
Below, you can read the letter that the Attorney General sent to the congressional leader regarding marijuana banking:
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Photo by Mike Latimer.
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