Violent crime and theft at cannabis dispensaries have been in the news for years. Employees and customers have been robbed with frightening frequency. But an easy fix is pending in the U.S. Congress.
The Senate recently restarted debate about crime-fighting legislation called the SAFE Banking Act, which would finally allow marijuana dispensaries to become less cash-heavy and, in that way, less of a magnet for robberies.
The heart of the legislation – and of the problem that needs to be fixed – is, surprisingly, a shortcoming in the federal banking system. One of easiest and most effective crime-fighting measures would open the way for commercial banks to do business with cannabis companies, something that isn’t allowed today.
Cannabis businesses are denied access to commercial banking services, including credit cards, because marijuana is illegal at the federal level. This forces dispensary workers and customers to have large amounts of cash on hand. The industry produces billions of dollars in transactions annually. The cash they must keep makes them perfect targets for criminals.
Congress has the answer. The SAFE Banking Act, which has strong bipartisan support, would give cannabis businesses access to financial services of many types. Its provisions would end cannabis companies’ cash-related risks. The bill would give cannabis firms access to banking services available to other companies, including business accounts, improved access to loans, and, of course, credit cards. The measure would protect insurers, depository institutions, and other businesses from civil and criminal sanctions if they provide financial services to cannabis-related companies.
The result would be improved public safety in all states and neighborhoods that have a legal cannabis market. And that’s a lot of places. More than 30 states now have legal marijuana of one type or another.
SAFE Banking, if approved, would do more than lower the risk of theft and robberies. It also would strengthen law enforcement’s ability to track money laundering and allow law enforcement authorities and agencies to distinguish lawful from illicit operators.
In addition, the SAFE Banking Act would create a safer business environment. As more states legalize recreational cannabis, opportunity increases for those looking to exploit the patchwork of state-based laws and regulations. The challenge of monitoring the growing number of cannabis businesses is daunting without the help of banks. SAFE Banking would enable more oversight and accountability.
No U.S. company should be forced to haul around bags of cash. And no American community should operate in constant fear of theft. If police authorities want to crack down on drug cartels and replace illicit marijuana with legal cannabis operations, passing the SAFE Banking Act is an important step.
Approval is close at hand. The U.S. House of Representatives has passed the SAFE Banking Act seven times and likely will do so again. The Senate has been the hold up. Some senators criticize SAFE Banking as too small a step; they want federal legalization, which SAFE Banking does not do. But that shouldn’t stop the significant progress that approving the legislation would deliver.
Several senators have said publicly that the crazy quilt of federal and state cannabis laws are confusing and counterproductive. The Senate Banking Committee has held its first cannabis hearing of the year to discuss the SAFE Banking Act, which is sponsored by Democratic Sen. Jeff Merkley of Oregon and Republican Sen. Steve Daines of Montana.
Approving SAFE Banking will be a noteworthy benchmark well worth achieving. It will make communities, neighborhoods, and businesses safer. Congress needs to act.
Cynthia Coffman was Attorney General of Colorado from 2015 to 2019, which coincided with the implementation of voter-approved legalized adult use marijuana in Colorado.
Read Full Article »