Oregon’s Governor, Tina Kotek, recently turned down a proposal aimed at establishing a State Public Bank Task Force. The proposed 19-member group would have delved into the advantages and disadvantages of a public bank tailored for cannabis business operations and then put forth suggestions for its establishment.
Leading proponents of the proposal were Rep. Mark Gamba, Rep. Jules Walters, and Sen. Jeff Golden, who presented House Bill 2763 earlier this year. By the end of June, the bill had seen approval from both the House and Senate. However, it faced a veto from Governor Kotek on August 4.
According to a press release from July 28, in which she shared her perspective on potential vetoes, Governor Kotek voiced her concerns with HB-2763. The release stated that while the Governor is not opposed to the idea of a state bank, this particular bill presented various operational challenges. These included burdening the Oregon Business Development Department (OBDD) with an additional task force and other responsibilities on a tight schedule.
If HB-2763 had received the green light, it would have assessed the possible advantages, risks, governance models, and other aspects for the proposed bank. The ultimate aim was to pave the way for a state-backed bank that would bolster economic activity in Oregon and save public funds. The team would then have compiled a comprehensive report on their research by September 2024.
Moreover, the committees expressed a desire to “…evaluate potential roadblocks and solutions to offering banking services to legitimate adult-use cannabis ventures and consider alternatives for integrating banking services into New York’s rapidly growing cannabis market.”
Ensuring cannabis businesses have access to banking is a challenge faced by many states. Several have undertaken legislative measures to protect cannabis business owners and further legitimize their operations.
In March 2022, Rep. John DiSanto and Rep. Sharif Street from Pennsylvania introduced a bill focused on cannabis banking. DiSanto commented, “Every business needs access to financial and insurance services. Having a massive industry dealing primarily in cash is not in the public’s best interest. Secure banking for this cash not only provides stability for these businesses but also presents an excellent opportunity for economic growth in Pennsylvania. This should eventually lead to reduced prices for medical cannabis consumers.” The bill got the nod from the then Pennsylvania Governor, Tom Wolf, in July 2022.
The previous year, in October, Rep. Dan Donovan and ex-NBA player David Harrison from the Indiana Pacers introduced Token HiFi, a proposed banking solution designed specifically for cannabis businesses.
In December, efforts to pass the Secure and Fair Enforcement (SAFE) Banking Act resurfaced, but the bill wasn’t included in the National Defense Appropriations Act (NDAA). Senate Majority Leader has been at the forefront of pushing this bill, saying, “The bill remains a top priority for me. We’re figuring out the most effective approach to ensure its passage.”
Back then, certain Republican figures, including Senate Majority Leader Mitch McConnell, criticized the Democrats for introducing “unrelated” aspects in the defense legislation. McConnell remarked, “It seems Democrats are hindering the finalization of the NDAA by trying to insert unrelated priorities. These priorities appear to have no connection to defense, such as making our financial systems more accommodating to illegal drugs.”
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