“Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees, or customers,” Menendez said in a statement released Tuesday. “We can solve this problem with legislation that allows insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.”
New Jersey Sen. Robert Menendez (D) has introduced legislation to ensure cannabis businesses can access property, casualty, and title insurance. The Clarifying Law Around Insurance of Marijuana (CLAIM) Act, has bipartisan support in the Senate including Democrat Jeff Merkley (OR) and Republicans Rand Paul (KY) and Kevin Cramer (ND) as co-sponsors.
The bill would perform a similar function for the insurance industry as it relates to the cannabis industry as the SAFE Banking Act would for financial institutions – giving the sector explicit approval to serve cannabusinesses.
“In short, the sky is not falling in Colorado.”
That is how Republican Sen. Cory Gardner summed up his testimony to the Senate Banking Committee on Tuesday morning, where he was advocating legislative action to give legal marijuana businesses access to banks and protection for banks from being viewed as money launderers under federal law for handling their money.
Cannabis businesses operating under state laws that have legalized recreational or medical marijuana are often denied access to the insurance market because insurance providers could be prosecuted or face penalties under federal law. Without access to insurance products such as property, casualty and title insurance, businesses remain vulnerable, and employees, customers, and the community face safety risks. Businesses can also be denied bank financing if they do not have the proper insurance.
The CLAIM Act would:
Given the title of the hearing, it is no surprise that the majority party witnesses focused mostly on how communities of color have been disproportionately targeted for arrest under cannabis prohibition, and how that has saddled a generation of young people of color with criminal records that impact their ability to secure gainful employment, access public assistance benefits, and obtain financial aid to attend college.
The Capitol Hill Club sits kiddy-corner from Cannon House Office building in downtown Washington, D.C. White table cloths and carved wooden elephants define the decor of this Hill hangout, which caters to mostly Republican lobbyists, staffers, and the occasional politician. But on a stifling day in June, a Democrat lobbyist came to lunch.
Typically, cannabis plants can produce buds or flowers that have a high level of THC. Hemp plants tend to have very little THC in them. However, that doesn't mean there is no THC or that the hemp plants couldn't be modified to contain more THC.
Mark Singleton, the owner of Singleton Investments said, "This removes the argument of .3% THC." He is referring to the designation that hemp-derived CBD is legal as long as there is less than .3% THC. If hemp THC is legal then it doesn't matter whether it is .3% or not.
Attorneys General from 38 U.S. States and five Territories are calling on Congress to pass to the “SAFE Banking Act” that will allow legal marijuana businesses access to the massive U.S. banking system. SAFE stands for Secure And Fair Enforcement.
This bipartisan group sent a letter to congressional leaders Thursday, saying they want to move the $8.3 billion marijuana industry into the regulated banking sector where its money can be better monitored. They noted that many marijuana businesses transact in cash, making revenue tracking and taxation more difficult for states.
We are in a time of unprecedented growth and rapid change for the cannabis industry across the U.S. As we look ahead at issues in the law at both the Oregon state and federal levels, here are five changes we see on the horizon.
1. Access to Banking.
U.S. Senator Bob Menendez has introduced legislation that will allow legal cannabis businesses to access banking services.
Menendez’s proposal will help medicinal or recreational marijuana businesses legal under state laws to gain access to banking services. Under Menendez’s plan, cannabis-related companies can have bank accounts, accept credit cards and write checks – avoiding the need to operative with large amounts of cash.
The bill will also help local and state governments collect taxes.