Inslee Joins Call To Allow Pot Shops Access To Banks

WASHINGTON — Gov. Jay Inslee has joined 20 other governors from across the country in calling on Congress to pass the SAFE Banking Act.

The Secure and Fair Enforcement, or SAFE, Banking Act would ban federal regulators from punishing or penalizing banks that work with legal cannabis businesses.

Banking has been a hot-button issue for pot shops in Washington for some time. While recreational marijuana has been legal for years in the Evergreen State, it's still illegal federally. As a result, banks that work with pot shops currently face significant legal risks, including criminal and civil liability under the Controlled Substances Act.

Because of those risks, most pot shops are forced to work without access to banks, taking money on a cash-only basis.

In a letter to Congress, the 21 governors argue that forcing these businesses to be cash-only, unfairly hinders them and causes a number of unexpected consequences and complications:

"Without banking services, state licensed cannabis businesses are unable to write checks, make and receive electronic payments, utilize a payroll provider, or accept credit and debit cards. Cash only businesses pose a significant public safety risk to customers and employees. The cash-only environment also burdens state and local government agencies that must collect tax and fee payments in person and in cash, which creates additional public expenses and employee safety risks."

As the letter notes, because weed dispensaries are forced to process and store large quantities of cash, they've become a common target for thieves. Just last month, three suspects were arrested for a string of pot shop robberies in Snohomish, King, and Kitsap counties. It took detectives 29 warrants to make an arrest in that case, the News Tribune reported.

"Many of our states have implemented laws and regulations to reduce these risks while ensuring financial accountability of the cannabis industry," the letter reads. "These public safety risks can be further mitigated on the federal level by passing the SAFE Banking Act to provide state-licensed cannabis businesses with access to banking service providers."

The SAFE Banking Act passed the House Monday on a vote of 321 - 101, it now heads to the Senate for further consideration. Following the House vote, cannabis stocks rallied 4.6 percent, according to MarketWatch.

>> Read the governor's full letter to Congres.