Banking continues to be one of the most serious obstacles for states that have legalized marijuana. Despite marijuana being legal in 23 states and the District of Columbia, banks cannot work with marijuana businesses without fear of federal prosecution.
This means that businesses are often forced to operate in cash–a risky and impractical means of doing business.
“It’s the biggest problem we have,” the deputy director of the National Cannabis Industry Association told the Huffington Post earlier this year.
On Tuesday Colorado’s Rep. Ed Perlmutter (D) introduced the Marijuana Businesses Access to Banking Act, which would free banks from federal repercussions should they choose to do business with legalized marijuana sellers.
“First and foremost, this is an issue of public safety,” Perlmutter said in a statement provided to The Hill. “Not only are the proprietors at risk, but the employees and customers are also at risk of serious and violent crimes.”
He claimed that 40 percent of Colorado’s marijuana businesses operate without banks, meaning that “hundreds of millions of dollars in cash are moving around the streets.”
Rep. Denny Heck, (D-Wash.) who also supports the bill, said, “Forcing businesses into cash-only territory is a dangerous step away from legitimacy, transparency, and regulation and a huge step towards crime, tax evasion, and access to minors.”
The bill has bipartisan support from 16 other representatives.
In 2013, when Perlmutter also introduced the bill, a Denver business owner told the Marijuana Policy Project, “Each year, my companies contribute to the five million dollars in tax revenue Colorado collects from the sales of medical marijuana. Making those tax payments is unnecessarily challenging because we do not have access to banking services other local businesses take for granted. Regulators, business owners, and medical marijuana patients alike all deserve the accountability, safety, and efficiency offered by this legislation.”
