An organization representing mayors from across the U.S. adopted a resolution imploring Congress to pass a bill to safeguard banks that work with state-legal marijuana businesses from federal penalties.
The U.S. Conference of Mayors approved the measure during the body’s 90th annual meeting on Monday. Last year, the organization adopted a separate measure calling for an end federal cannabis prohibition and promoting social equity in the industry. The latest resolution on banking also expresses support for federal legalization bills, including one that passed the House and another that’s being finalized by Senate leadership.
The mayors’ proposal this year focuses on marijuana banking reform, which comes at a pivotal time as Congress considers including the bipartisan Secure and Fair Enforcement (SAFE) Banking Act as part of a large-scale manufacturing bill that’s currently being negotiated in bicameral conference.
The whereas section of the measure states that “the conflict between state law and the illegality of cannabis under federal law creates significant challenges and barriers for legally-owned and operated recreational and medical cannabis dispensaries and cannabis-related companies.”
It goes on to say that “cannabis companies are unable to access banking services that financial institutions and insurers offer to other businesses due to the potential for severe criminal and civil penalties,” which forces many operators to operate on a largely cash-only basis that has led to a surge of targeted crime.
The mayors of Tacoma, Washington; Fort Lauderdale, Florida; and Henderson, Nevada sponsored the resolution for the organization, which represents the 1,400 U.S. cities with populations of 30,000 or more.
