Financial institutions: cannabis.
If AJR28 is acknowledged, it may lead to significant changes in current banking practices for cannabis-related businesses. By lobbying Congress and the President to amend federal laws, the resolution aims to alleviate the banking challenges faced by the cannabis industry, allowing these businesses to operate more sustainably and securely. The resolution highlights that the inability to access banking services forces many cannabis entrepreneurs to rely on cash transactions, posing safety risks for businesses and their clientele.
Assembly Joint Resolution No. 28 (AJR28), introduced by Jones-Sawyer, urges the United States Congress and the President to enact legislation enabling financial institutions to provide services to the cannabis industry. This resolution is a response to the growing complexities surrounding the banking needs of a legal cannabis market, particularly in California, where the adult-use of cannabis was legalized through Proposition 64 in 2016. The regulated cannabis market is projected to significantly contribute to California's economy while creating thousands of jobs, yet it faces substantial hurdles due to the federal status of cannabis as a Schedule I drug, which discourages banks from engaging with cannabis businesses.
General sentiment surrounding AJR28 is largely supportive, especially among advocates of the cannabis industry. Proponents argue that providing banking access is not only beneficial for cannabis entrepreneurs but also essential for public safety, as cash-only operations can become targets for crime. However, there are concerns about the potential federal resistance to any legislative changes, given the historical stigma and regulatory challenges associated with cannabis. This creates a polarized environment where the potential economic benefits must contend with longstanding federal policies.
Despite the support for AJR28, there remains contention regarding the coordination between state and federal government regulations on cannabis. Critics may argue against loosening federal restrictions under the current federal administration, as such changes can be seen as undermining drug enforcement policies. The urgency of this resolution stems from the rescinding of the Cole Memorandum by the U.S. Attorney General, which previously allowed for some leniency towards cannabis operations, making the push for legislative change even more critical for the industry's stability.