Marijuana legislation pending on Capitol Hill garnered support Wednesday from a bipartisan coalition of attorneys general representing the majority of U.S. states and territories.
Thirty-eight members of the National Association of Attorneys General signed a letter to leaders in the House and Senate calling them to pass a bill allowing state-legal marijuana businesses to access the federal banking system.
“Our banking system must be flexible enough to address the needs of businesses in the various states and territories, with state and territorial input, while protecting the interests of the federal government,” they wrote. “This includes a banking system for marijuana-related businesses that is both responsive and effective in meeting the demands of our economy.”
Most states have legalized marijuana for medicinal or recreational purposes, putting their pot laws in direct conflict with the federal government’s.
Marijuana is classified as a Schedule 1 drug under the U.S. Controlled Substances Act, however, effectively making individuals involved in state-legal marijuana industries subject to criminal and civil liabilities under the CSA as well as certain federal banking statutes, the attorneys general wrote.
“Despite the contradictions between federal and state law, the marijuana industry continues to grow rapidly. Industry analysts estimate 2017 sales at $8.3 billion and expect those totals to exceed $25 billion by 2025,” they wrote.
“Yet those revenues are handled outside of the regulated banking system. Businesses are forced to operate on a cash basis. The resulting grey market makes it more difficult to track revenues for taxation and regulatory compliance purposes, contributes to a public safety threat as cash-intensive businesses are often targets for criminal activity and prevents proper tracking of billions in finances across the nation,” they added.
The letter urged Congress to pass a bipartisan bill that would allow state-legal marijuana business to access the federal banking industry, the Secure and Fair Enforcement (SAFE) Banking Act, or similar measure to provide a safe harbor for banks that deal with businesses operating in accordance with state pot laws.
Supported by 173 co-sponsors in the House and more than 20 in the Senate, the SAFE Banking Act was endorsed days earlier by a group of 17 state treasurers.
Several other marijuana bills pending on Capitol Hill would address conflicting state and federal laws that prevent the Department of Veterans Affairs from recommending medicinal marijuana to former service members seeking treatment, meanwhile.
• Andrew Blake can be reached at ablake@washingtontimes.com.
Please read our comment policy before commenting.