Money on Marijuana
On 4/19/21 the SAFE Act, Secure and Fair Enforcement Act, was passed in the House. It is now at the Senate awaiting to be passed. The law states: “This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business.
Additionally, proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity. Proceeds from unlawful activity are subject to anti-money laundering laws.
Furthermore, a depository institution is not, under federal law, liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business.
The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)” It can be searched here at:
https://www.congress.gov/bill/117th-congress/house-bill/1996. More on the law can be read here at:
According to The National Law Review the bill, which has moved to the Senate, does have “significant support” to being passed. The Law Review article is extremely informative and can be viewed here: https://www.natlawreview.com/article/cannabis-banking-safe-banking-act-20-passes-house-representatives.
Keeping an Eye on Metrc Seed-to-Sale Tracking
Oklahoma - 10,000 licensed cannabis businesses in the state of Oklahoma have filed a class action lawsuit against the Oklahoma Medical Marijuana Authority and State Department of Health. Their goal is to prevent Metrc from being the sole seed-to-sale tracking system in the state.
It was reported that Metrc will stand to make $12 million dollars from the program in Oklahoma alone, also concerning is that the company could create a monopoly, according to the attorney representing the class action suit, Ronald Durbin.
Metrc is currently the only software system used in Michigan, all state licensed marijuana businesses must purchase labels from and do business with Metrc and only Metrc, a for profit company.
One worry about the program, as stated by one dispensary owner, would be the creation of more costs to owners. He also said they already do their own seed-to-sale tracking. Concerns over the ability Metrc has to control the market and inventory with proprietary label availability were also mentioned.
As of the end of April the use of the tracking program in Oklahoma has been placed on hold due to the pending lawsuit.
South Leaning for Weed
Recently, in the sunshine state of Florida, a bill to have a public vote to legalize marijuana was stricken down in April 2021. Currently, the state has a medicinal use only law in place.
Louisiana also has a medical use law, though recreational use law is getting a lot of support. According to a University of New Orleans, survey, 55 percent of those questioned would vote for legalization in the bayou.
Texas House passed a bill just recently to decriminalize marijuana use. It is going to the Senate to debate. Currently, the state has no programs in place for any use.
Tennessee, North Carolina, Kentucky, South Carolina, and Alabama also have no programs in place for THC use. North Carolina does have some laws in place to decriminalize marijuana and have proposed a bill to legalize medical marijuana use. Alabama may likely vote for medical marijuana use. Georgia has limited medical marijuana laws.
Arkansas and Mississippi do have medical use laws in place.
With the House of Representatives passing a bill to federally decriminalize marijuana last December, and the Senate deliberating the law, state-by-state, laws are moving forward.
