A bipartisan group of 20 state and territorial legal professional generals has referred to as for the passage of a federal invoice that might give cannabis trade companies entry to the U.S. banking system. In a letter despatched to leaders of each the U.S. Senate and Home of Representatives on Thursday, the governors urged the passage of the Safe and Fare (SAFE) Banking Act of 2019 (H.R. 1595).

Gov. Gretchen Whitmer of Michigan, one of many governors who signed the letter, mentioned that voters have made it clear that it’s time for a brand new strategy to cannabis coverage.

“Michiganders turned out in historic numbers on this final election to legalize the usage of leisure marijuana, and we should respect the need of the voters,” Whitmer mentioned. “There may be an inherent hazard for companies working in an all-cash enterprise as a result of monetary establishments are unable to simply accept the dangers and penalties related to offering service to this trade below present regulation. This letter sends a transparent message to Congress that our states are searching for an actual answer to an actual drawback, and we assist them to get this executed.”  

Hashish Trade Denied Entry to Banking

As a result of federal drug and cash laundering laws, even cannabis companies working in compliance with state legal guidelines are sometimes unable to acquire monetary companies frequently utilized by different industries. Consequently, corporations within the cannabis trade usually do enterprise solely in money, creating excessive danger for the corporations and their workers. The SAFE Banking Act would defend monetary establishments and sure make extra banks keen to serve the cannabis trade.

“A lot of our states have carried out legal guidelines and laws that guarantee accountability of the cannabis trade,” wrote the governors within the letter. “Nonetheless, with out banking companies, cannabis companies are much less in a position to obey the regulation, pay taxes, and comply with these vital laws. The general public security dangers posed by these cash-only companies will be mitigated by entry to banking service suppliers.”

The governors referred to as on congressional leaders to hitch the states in supporting cannabis operators keen to depart the black market and topic their companies to regulation and taxation.

“State and federal governments have a shared curiosity in upholding the rule of regulation, defending public security, and transitioning markets out of the shadows and into our clear and controlled banking system. With out entry to banking companies, state-licensed cannabis companies function predominantly on a money foundation. This poses a big public security danger to clients and workers,” the letter reads.

Letter Signed by 20 Governors

Along with Whitmer, the letter was signed by the governors of Colorado, Connecticut, Guam, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New Mexico, North Dakota, Oregon, Pennsylvania, Utah, Virginia, the U.S. Virgin Islands, Washington, West Virginia, and Wisconsin.

The governors’ motion comes simply over a month after the attorneys basic of 33 states and 5 territories equally referred to as for the passage of the SAFE Banking Act. The invoice was launched by Democratic Rep. Ed Perlmutter of Colorado in March and accredited by the Home Monetary Companies Committee later that month. The laws is pending additional motion within the Home, the place it has greater than 200 cosponsors.