Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
Assemblyman JAMEL C. HOLLEY
District 20 (Union)
Co-Sponsored by:
Assemblywoman Murphy
SYNOPSIS
Urges Congress to pass “Secure and Fair Enforcement Banking Act of 2017.”
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging Congress to pass the “Secure and Fair Enforcement Banking Act of 2017.”
Whereas, New Jersey, like many other states, allows for the production and sale of marijuana for medicinal purposes; and
Whereas, Marijuana is effective in treating pain, muscle stiffness, nausea, lack of appetite, and other symptoms associated with serious illnesses like cancer, AIDS, and multiple sclerosis; and
Whereas, The American College of Physicians, the American Nurses Association, the American Academy of HIV Medicine, and the HIV Medicine Association are among the major organizations that endorse legalizing marijuana for medical purposes; and
Whereas, Current federal law makes it difficult for persons engaged in the medicinal marijuana trade to keep their business’s assets in banks, since both the persons engaged in the medicinal marijuana trade and the banks fear reprisal from the federal government; and
Whereas, This situation decreases public safety, since the presence of large amounts of cash encourages attempts at armed robbery, money laundering, and other crimes, and it is inefficient, since it necessitates transporting and counting large amounts of cash, which are therefore not available to the larger market; and
Whereas, These problems would be alleviated by the passage of the “Secure and Fair Enforcement (SAFE) Banking Act of 2017;” and
Whereas, This bill prohibits federal banking regulators from terminating or limiting the deposit insurance or share insurance of a bank or credit union solely because the bank or credit union provides or has provided financial services to a marijuana-related business; and
Whereas, This bill also prohibits federal banking regulators from recommending, incentivizing, or encouraging banks to withhold financial services from marijuana-related businesses or to downgrade or cancel financial services offered to an account holder of a marijuana-related business; and
Whereas, If enacted, this bill would improve the safety of New Jersey’s residents by eliminating the large sums of cash currently involved in the medical marijuana trade, and it would allow New Jersey’s medicinal marijuana businesses to freely participate in banking services in New Jersey, injecting more capital into the market; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully urges the United States Congress to pass the “Secure and Fair Enforcement Banking Act of 2017.”
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Majority and Minority Leaders of the United States Senate; the Speaker and Minority Leader of the United States House of Representatives; and every member of Congress elected from this State.
STATEMENT
This resolution urges Congress to pass the federal “Secure and Fair Enforcement (SAFE) Banking Act of 2017.”
New Jersey, like many other states, allows for the production and sale of marijuana for medicinal purposes. Marijuana is effective in treating pain, muscle stiffness, nausea, lack of appetite, and other symptoms associated with serious illnesses like cancer, AIDS, and multiple sclerosis. The legalization of medical marijuana has been endorsed by the American College of Physicians, the American Nurses Association, the American Academy of HIV Medicine, the HIV Medicine Association, and many other medical organizations.
However, current federal law makes it difficult for persons engaged in the medicinal marijuana trade to keep their business’s assets in banks, since both the persons engaged in the medicinal marijuana trade and the banks fear reprisal from the federal government. This causes many people engaged in the medicinal marijuana trade to keep their business assets entirely in cash. This is dangerous, since it encourages armed robbery and other crimes against these businesses. It is also inefficient, since it involves counting and transporting large amounts of cash, and it excludes this capital from the market.
The federal “SAFE Banking Act of 2017” would solve these problems by prohibiting federal bank regulators from punishing banks that service marijuana businesses and by prohibiting federal bank regulators from discouraging banks to do business with marijuana companies. This would improve public safety in New Jersey and would allow marijuana businesses to fully utilize the banking services offered in the State.