The Michigan Chamber of Commerce stated Thursday that the recent spate of break-ins to legal marijuana retailers throughout the state highlights the need for federal banking reform. This, according to the group, would reduce the risk of theft and fraud resulting from the industry’s current reliance upon cash.
The chamber has joined Common Citizen, a Michigan-based marijuana business, in calling on Congress to pass the Secure and Fare Enforcement Regulation Banking Act (SAFER), which would eliminate the threat of penalities facing banks who work with state legal cannabis businesses whose activities remain illegal under federal law.
Leah Robinson said, “With almost 40 states legalizing or decriminalizing medical cannabis, adult use cannabis or both, the cannabis landscape today is hardly recognisable from only a few short years ago.” It’s time for the SAFER Banking Act to be passed without delay, so that cannabis workers and business owners can have access to the same banking options and protections available in other legal industries.
The release cites media reports about a series of break-ins, and attempts to break-in, at cannabis retailers in Detroit. It also cites warrants issued last spring by the Attorney General for more than 20 breakins throughout the state .
Michael Elias, CEO of Common Citizen, drew the attention of investors and entrepreneurs to the impact that break-ins can have.
Elias stated that as Michigan’s $3 billion industry is largely cash-only and has thousands of employees, the theft risk for entrepreneurs who hire millions to invest in this industry is high. As Michigan’s cannabis industry grows and evolves, entrepreneurs who want to enter this market deserve peace of mind that their investment and hard work are protected. This starts with the SAFER Banking Act.
Elias, along with Jim Holcomb, the president and CEO of the Chamber, wrote an opinion piece for Bridge Michigan recently in support of federal legislation. They noted the obstacles that business owners have faced in accessing cannabis banking.
The pair wrote: “Despite your plans to hire dozens and support your local community, you’re denied the typical construction loans and credit lines from institutions who use federal products and are backed or backed by federal government — which is almost all of them.” Imagine you have a great job in a growing sector, and you want to provide for your family a life of middle class. You decide to purchase a home, only to be denied financing.
Recent data from Michigan’s Cannabis Regulatory Agency shows that while some cannabis workers in Michigan are middle-class, the majority of people who apply for licenses to operate marijuana businesses come from families earning more than $200,000.
In 2023, the state’s marijuana market will continue to grow. Last year, legal retailers in Michigan sold more than $3 billion in marijuana products. In December, retailers sold nearly $280 million more in cannabis than ever before.
According to CRA statistics, by 2023 there will be 2,170 licensed cannabis businesses on the adult-use market. The majority of these are growers. This number includes 751 licensed retail stores, 250 processors as well as 46 marijuana event organizers. There are also seven microbusinesses, two designated consumption establishments and 751 licensed retailers.
Last month, Senate Majority leader Chuck Schumer (DNY) announced that the federal will “hit the ground” running in 2024. He said this to build upon bipartisan progress made on a number of key issues including SAFER Banking. He acknowledged that the road to passage would not be an easy one.
In other parts of Michigan’s legal marijuana landscape, a change approved by the state Civil Service Commission in July took effect in October . This ended pre-employment cannabis testing for most government workers . People who have already been penalized for positive THC test can also request that the sanction be retroactively lifted.
Michigan Gov. Gretchen Whitmer, a Democrat, signed two bills into law that would allow state-licensed cannabis businesses to trade with tribal cannabis entities. Both bills took immediate effect.
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The post Michigan Chamber Of Commerce Asks Congress to Pass Marijuana Banking Bill Citing Raft Of retail Break-ins first appeared on Marijuana Moment.
