Leon Guerrero among 20 governors pushing Congress to pass marijuana banking bill

Haidee V Eugenio 

Gov. Lou Leon Guerrero is among 20 governors who are calling on Congress to pass a bipartisan bill seeking to increase marijuana-related businesses' access to banks to enhance public safety, reduce their risks, and increase financial transparency.

Dozens of states and territories including Guam have legalized the medical and recreational use of marijuana.

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However, the federal government still classifies marijuana as an illegal substance.

Banks and credit unions, as a result, are faced with legal uncertainty.

Under the scrutiny of national banking system

The governors from 18 states and two territories said a legislative fix is needed to allow states with legalized medical or adult-use cannabis to operate safely and under the scrutiny of the national banking system.

They asked Congress to pass the Secure and Fair Enforcement, or SAFE, Banking Act, or H.R. 1595 and S. 1200, or similar legislation "that would remove the legal uncertainty for banks and credit unions, reducing their risk, enhancing public safety, and increasing financial transparency."

Without access to banking services, state-licensed cannabis businesses operate predominantly on a cash basis.

'Financial institutions face enormous barriers'

"The cash-only environment puts an additional burden on state and local government agencies that must collect tax and fee payments, in person and in cash, incurring additional public expenses and employee safety risks," Leon Guerrero and the 19 other governors wrote in a June 13 letter to congressional leaders.

Leon Guerrero's signature on the letter comes two months after she signed into law a bill seeking to legalize limited marijuana use by adults on Guam, and five years after voters approved medical marijuana.

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"Despite legalization of cannabis at the state level, in many cases to provide medical treatment, our financial institutions face enormous barriers, legal risks, and criminal and civil liability under the Controlled Substances Act that prevents them from providing banking services to state-licensed businesses," the governors wrote.

The governors said many of their states have implemented laws and regulations that ensure accountability of the cannabis industry but without banking services, cannabis businesses are less able to obey the law, pay taxes and follow important regulations.

In support of banking legislation

Besides the Guam governor, the other governors who signed off on the letter are those representing New Jersey, Maryland, Washington, West Virginia, Wisconsin, Utah, New Mexico, North Dakota, Virginia, Colorado, Minnesota, Oregon, Illinois, Maine, Nevada, Pennsylvania, Connecticut, Michigan, and the U.S. Virgin Islands.

This group of governors is the latest group to join hands in support of the banking legislation.

Last week, the Guam Bankers Association issued a statement of support to ease restrictions placed on banks that want to work with cannabis-related businesses.

Guam Attorney General Leevin Camacho in May also joined attorneys general from 37 states and territories in urging Congress to pass a cannabis banking bill.