Bills that would legalize and tax marijuana at the national level, and provide opportunities for people convicted of federal pot crimes to clear their records, were introduced July 23, 2019, in Congress.
The companion legislation in the House and Senate were introduced by Democratic Sen. Kamala Harris of California and U.S. Rep. Jarrold Nadler of New York, the chairman of the powerful House Judiciary Committee.
An important issue for the future of marijuana businesses won crucial support this week on Capitol Hill. Several U.S. senators expressed support for giving banking access to the billion-dollar marijuana industry, which deals almost exclusively in cash.
Marijuana is legal in 33 states but still illegal under federal law, so any bank that handles marijuana money can be charged with money laundering. That threat makes it difficult for most growers and sellers to get a bank account for their business.
Governors from 18 states and two U.S. territories are calling on Congress to pass a bipartisan marijuana banking bill.
In a letter sent to congressional leaders on Thursday, the governors said a legislative fix was needed to “remove the legal uncertainty for banks and credit unions, reducing their risk, enhancing public safety, and increasing financial transparency.”
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.
Rest assured that the cash that patients pay at local medical marijuana dispensaries doesn’t end up under a mattress.
“We do have a bank,” said Jimil Wilson, chief financial officer for Maitri Medicinals, which operates Fayette County’s only state-approved medical marijuana dispensary in Uniontown.
So does Washington County’s only medical marijuana dispensary, The Healing Center in Washington.
Federal statutes create risk for banks that want to operate in the cannabis space. Banks face the threat of civil actions, asset forfeiture, reputational risk, and even criminal penalties if they do business with customers in the cannabis industry. Further, because most banks will not touch cannabis money, the growers, processors, and retailers in the industry must often operate on a cash-only basis. The Internal Revenue Service has even had to build “cash rooms” to accommodate taxes paid by legal cannabis companies.
As state legalization measures in New York and New Jersey stumbled near the finish line this week, better news emerged from Washington, DC, as Congress made progress on two of the most prominent federal reform measures.