#LivWell Enlightened Health (CO) | Explore Tumblr Posts and Blogs

cannabisbusinessexecutive · 6 years

Text

Cannabis Trade Federation Announces Full Board, Readies Inclusive Membership Options

What started with the formation of the New Federalism Fund back in March of 2017, has taken on increasing momentum as the Cannabis Trade Federation (CTF) has clearly emerged as the professional “Voice of the Cannabis Industry”. After many months of building a formidable team to represent the Cannabis Industry’s interests at the federal level on Capitol Hill, CTF, which was founded on 4/20/2018…

View On WordPress

4 notes · View notes

livwelltrinidad-blog · 5 years

Photo

LivWell Enlightened Health Marijuana Dispensary

Whether you’re a local looking to find the best flower, concentrates, edibles, and accessories in town, or a tourist seeking out the best that Colorado’s marijuana industry has to offer, LivWell Trinidad is the perfect recreational marijuana dispensary for you.

Address: 124 Santa Fe Trail, Trinidad, CO 81082, USA Phone: 719-422-8251 Website: https://www.livwell.com/trinidad-marijuana-dispensary

#Trinidad Dispensary #Dispensaries In Trinidad Colorado #Marijuana Dispensary Trinidad #Marijuana Dispensaries Trinidad CO

2 notes · View notes

livwellcortez · 5 years

Photo

LivWell Enlightened Health Marijuana Dispensary

LivWell Cortez, located in the historic archaeological town of Cortez, officially opened its doors as a recreational marijuana dispensary in early 2015 and has been providing the community with top-notch cannabis products and services ever since.

Address: 1819 E Main St, Cortez, CO 81321, USA Phone: 970-565-9577 Website: https://www.livwell.com/cortez-marijuana-dispensary

#Marijuana Dispensary Cortez CO #Recreational Dispensary Cortez #Cotez Marijuana Dispensaries

1 note · View note

janepwilliams87 · 4 years

Text

Pelosi Wants Marijuana Businesses Included In Next Coronavirus Relief Bill, Congressman Says

A congressman says he’s prepared legislation to allow marijuana businesses to access federal disaster relief loans that are available to other industries during the coronavirus outbreak, as well as banking services that they have long desired, and he wants it inserted in the next COVID-19 stimulus package.

The proposal from Rep. Ed Perlmutter (D-CO) also has the support of top congressional leadership, including House Speaker Nancy Pelosi (D-CA), he said.

On a town hall call with small businesses in his Colorado district on Thursday night, Perlmutter was asked by the executive director of a top marijuana company whether the cannabis market has any hope of becoming eligible for federal loan and lending programs, as businesses that work with marijuana directly or indirectly are currently excluded from Small Business Administration (SBA) benefits.

“We have prepared legislation that we hope will be in the next package. Probably not the one that’s being discussed right now, but we’ve asked for legislation to allow for banking, for SBA lending, for testing to be part of the next package,” the congressman told the LivWell Enlightened Health executive. “Whether we’re going to get it, whether we can get the Senate to finally get off of their fannies and pass it, I don’t know. But you can rest assured that the issue you raised is front and center.”

“I raised this very question to our caucus, to Speaker Nancy Pelosi directly last week, saying, look this is a major employer in Colorado and elsewhere around the country. They have been deemed essential services in many, many states,” he said. “They cannot access any of the relief that we are providing for in any of these three packages that we have passed. She said, as did the other leadership members on the call, said she wanted to see it get passed.”

Perlmutter later reiterated that the speaker supports his proposal and said the Democratic caucus will “continue to work on it over the next couple weeks as we put these additional packages together.” Marijuana Moment reached out to Pelosi’s office for comment, but a representative did not immediately respond.

On cannabis banking, the congressman noted that the House passed a bill to allow cannabis businesses to access financial services last year and it’s currently sitting in the Senate Banking Committee, where negotiations have stalled.

“There had been work on it and then the pandemic hit,” he said.

For the time being, SBA has made clear that federal policies prohibit the agency from providing its services to businesses that market marijuana, or even those that indirectly work with the industry such as accounting or law firms. While many cannabis businesses are continuing to operate as state-approved essential services, industry stakeholders say they need the federal safeguards just like any other legitimate company.

“COVID19 has made this a difficult time for all Americans, and the cannabis industry is not immune,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “The inability for both direct and indirect cannabis businesses to access any relief funds from the Small Business Administration is unacceptable, especially when the majority of states have deemed them essential.”

“Discussions regarding the next coronavirus relief package are well underway, and we are working day and night to remedy this and provide any sort of relief possible for our industry,” he said.

In a letter to state treasurers that was delivered this week, a coalition of marijuana industry associations urged the officials to pressure their congressional delegations to include SBA access for cannabis firms in future coronavirus legislation. They also want the states to explore providing separate loan and lending programs for the market.

“Given the unprecedented government intervention in the economy to mitigate the spread of COVID-19 and the harm on businesses, it is crucial that workers and small businesses in the cannabis industry receive the same protections and resources,” Justin Strekal, political director of NORML, told Marijuana Moment. “It’s downright cruel that a majority of states have designated the marijuana industry as ‘essential’ yet deny them access to desperately needed support.”

Rep. Earl Blumenauer (D-OR), a longtime champion of cannabis reform, also said in a blog post this week that the current COVID-19 response legislation “does not go as far as I’d like to give enough Oregonians the relief and security they deserve” and he’s fighting for “SBA grant eligibility for state-legal cannabis companies” as part of the next package.

Eleven senators wrote in a letter to Appropriations Committee leadership last week that they want the SBA issue for cannabis businesses addressed in separate annual spending legislation.

Cory Booker Says Medical Marijuana Access Should Be Prioritized Amid Coronavirus

The post Pelosi Wants Marijuana Businesses Included In Next Coronavirus Relief Bill, Congressman Says appeared first on Marijuana Moment.

from Updates By Jane https://www.marijuanamoment.net/pelosi-wants-marijuana-businesses-included-in-next-coronavirus-relief-bill-congressman-says/

0 notes

mikesmiller86 · 4 years

Text

Colorado’s marijuana businesses can remain open during pandemic, but they say they’re still struggling

As the coronavirus fueled changes in regulation for Colorado’s cannabis industry, leaders at LivWell Enlightened Health knew they needed to make dramatic moves to keep the business and its workers thriving. And fast.

On March 30, 18 company executives and department heads agreed to suspend their compensation for three months to avoid making cuts elsewhere, including personnel.

The company employs 690 people between its cultivation sites, business administration and 18 dispensaries in Colorado and Oregon. Most are what Executive Director Dean Heizer calls “heartbeat” employees, namely, those on the front lines serving customers in marijuana dispensaries and working in its grow facilities sites to ensure there’s product to sell.

“Our employees in retail and cultivation are the heartbeat of our company. We don’t survive if they aren’t happy and healthy,” he said.

Heizer declined to comment on the exact amount of money made available by deferred compensation, but said it’s enough to “keep our promise” to provide two weeks of paid sick leave and continued health insurance coverage for employees.

“This and other cost-cutting measures put us in a good position to weather the storm,” Heizer said. “So long as the storm lasts 90 days.”

Cannabis is one of the select industries deemed “critical” and allowed to remain open during the coronavirus pandemic, but despite brief, panic-induced surges in business, many contend the industry is still struggling as Coloradans stay home and job losses mount in a crashing economy.

RELATED: After panicked crowds swarm Denver liquor stores and dispensaries, mayor reverses order to close both

The industry’s not alone. A recent survey conducted by the Colorado Chamber of Commerce found about a third of businesses have laid off or furloughed workers, including many in industries considered essential during a public health crisis.

But those hardships are compounded by the fact that marijuana companies and ancillary businesses that service the industry do not qualify for federal stimulus relief. Still, cannabis companies are taking measures to keep their workers from joining the growing ranks of the unemployed.

The circumstances have forced some, like LivWell, to get creative financially. Others, like Green Dragon, are trying to maintain a semblance of normalcy until they can find viable long-term solutions, said co-owner Alex Levine. The company operates 14 dispensaries, including several in mountain towns like Aspen and Telluride, where ski resort closures and a lack of tourists caused sales to drop.

Green Dragon does not currently plan to lay off approximately 250 workers — in fact, it’s hiring to replace personnel that can’t risk working because of the potential for exposure to the coronavirus, Levine said. But the absence of financial aid and a federal tax “burden” that prohibits cannabis companies from deducting businesses expenses from taxable income make planning for the future difficult, he said.

“We’re trying to take it day by day, and trying to keep everything running as normal as possible,” Levine said. “Some are saying this a recession-proof product. That is certainly not the case.”

RELATED: How many people are filing for unemployment and how do you apply for it in Colorado?

The pandemic is not only causing havoc for plant-touching companies, or those that work directly with marijuana. Brian Vicente, founding partner of Vicente Sederberg, which specializes in cannabis law, believes his company will not benefit from the Coronavirus Aid, Relief and Economic Security (CARES) Act because of its affiliation with cannabis. The ramifications, he said, could be “damaging.”

“Law firms like mine, accounting firms and software firms that simply service marijuana industry… now we and folks like us are in a pretty precarious financial position,” Vicente said, adding he’s considered furloughs and pay reductions for his roughly 90-person firm.

More From The Mountain States

DENVER — In a large warehouse, LivWell Enlightened Health feeds its cloned cannabis plants a custom blend of nutrients, sprays them with filtered water and pumps extra carbon dioxide into the air. LivWell releases three types of insects to clear the plants of unwanted pests without the use of toxic pesticides.

Every part of the growing process is meticulously documented and evaluated to constantly refine the process.

After 20 years of experience, legal marijuana growers in the U.S. have the reputation of creating the best product in the world, scientifically grown and tightly regulated for quality and safety.

The crop would be in high demand internationally — perhaps the centerpiece of a new U.S. industry — if not for the regulatory conundrum in which growers operate.

Because marijuana is legal in many states but still illegal federally, marijuana growers are unable to ship their products to other countries or even other American states that have legalized the drug. So while U.S. cannabis firms have driven product innovation and mastered the science of large-scale grow operations, they restlessly wait for the export curtain to lift.

Email Sign-Up

Subscribe to KHN’s free Morning Briefing.

Sign Up

Please confirm your email address below:

Sign Up

Instead Canada has emerged as the dominant exporter in the burgeoning global trade of marijuana, which ArcView Market Research and BDS Analytics estimated at $14.9 billion in sales for 2019. Companies there are raising capital and building international trade ties despite having an unlikely climate to be an agricultural pot haven.

LivWell is building new grow rooms with 30- to 40-foot-high ceilings and state-of-the-art LED lighting that is cool enough to be placed very close to the plant.(Markian Hawryluk/KHN)

Rezwan Khan, vice president of global corporate development for cannabis seed supplier DNA Genetics, believes that U.S. cannabis is the world’s best but said: “Canada has a huge advantage, because they can fill a gap.”

Best In The World

Khan said California cannabis especially is superior because its growers have been developing legal marijuana products since 1996, longer than everywhere but Amsterdam.

“California has been the epicenter of cannabis culture for many years,” he said.

Its cannabis seeds have been distributed all over the world, and many foreign firms are trying to reproduce the quality of West Coast marijuana. But Khan said it takes more than seeds and water to grow good weed.

The genetics and sophistication underlying the U.S. cannabis industry lead to better-quality and higher-potency flowers for those who smoke marijuana and innovations in oils, tinctures and edibles.

“The world wants that technology,” said Michael Sassano, CEO of Solaris Farms, the largest cannabis hybrid greenhouse in Nevada. “The Netherlands had a big jump; they could have done anything. But the U.S. is the one that turned the industry into what it is today, with all the products we make, not Canada.”

The other draw of American-grown cannabis, according to Denver-based cannabis law expert Bob Hoban, is that foreign customers value the regulatory oversight that ensures the product is safe and unadulterated.

“It’s being regulated by a government agency, which is not necessarily what’s happening around the rest of the world,” Hoban said.

Hampered Growth

Because federal law prohibits the sale and use of marijuana, growers have not had easy access to the banking system. LivWell had to pay cash for its HVAC system. And with sales limited to in-state retailers, it hasn’t been cost-effective to invest in much automation for its production line. Most of its processing and packaging is done by hand.

The patchwork of legalization means cannabis isn’t always grown where it’s easiest to grow, in warm climates with limited rainfall. It’s grown where it’s legal. California, Oregon and Colorado grow most of the country’s authorized marijuana as legally isolated islands.

That leaves cold Canada as a somewhat odd choice to be the world’s leader in marijuana exports.

When Canada legalized marijuana in 2018, its firms could be listed on the New York Stock Exchange and NASDAQ. So Canadian companies represent a back door for U.S. firms to access capital and export markets, and, for smaller firms, provide a potential exit strategy. Many U.S. marijuana growers are positioning themselves as attractive acquisition targets for Canadian firms eyeing the lucrative U.S. market.

Canadian firms are using their head start to sign trade deals and secure licenses to sell marijuana internationally. While the market remains limited, at least 30 countries — including Mexico, Germany and Italy — have legalized medical marijuana. And the numbers are growing as scientific studies have demonstrated its utility for pain control, nausea and glaucoma.

“There’s more than enough time for American companies to catch up,” said Kris Krane, president of 4Front Ventures, which grows and sells marijuana in nine states. “But the longer that we wait, the longer we continue to maintain this unsustainable prohibition, the more difficult it’s going to be for American companies to catch up.”

Ready To Export

Changing public sentiments about marijuana in the U.S. have many American cannabis firms readying for the day they can legally sell their products elsewhere.

“If the state borders do break open, we’re preparing for that,” said Sassano, who also is board chairman at Somai Pharmaceutical, a holding company based in Dublin that distributes medical cannabis products to pharmacies across Europe.

That means an industry that began mainly as small mom-and-pop growers and retailers must now consider its corporate hygiene and whether it’s meeting legal requirements to sell in these new markets.

LivWell is building large-scale indoor cannabis growing rooms in Colorado and Oregon designed to scale up production for interstate or international commerce. The new rooms have 30- to 40-foot-high ceilings and state-of-the-art LED lighting cool enough to sit close to the plants.

“Then you farm vertically,” said Dean Heizer, LivWell’s chief legal strategist. “We learned that from the microgreens that people are farming in old cities and in old skyscrapers. If you can cultivate in cubic meters, you can scale. If you’re cultivating in square feet, you can’t.”

With 11 states plus Washington, D.C., approving recreational use and 33 states legalizing medical marijuana, industry insiders believe marijuana may be legalized nationally in the near future, greatly expanding their market.

In November, the House Judiciary Committee passed a bill with more than 50 co-sponsors that would effectively make marijuana legal in the U.S. Though unlikely to pass Congress immediately, it is seen as a sign of hope for the future.

“It’s just a matter of time,” Krane said. “How much time is very much a question of debate.”

from Updates By Dina https://khn.org/news/grade-a-all-american-pot-the-next-big-export/

0 notes

blockheadbrands · 5 years

Text

Senate Schedules Hearing on Cannabis Banking Bill

A.J. Herrington of High Times Reports:

The SAFE Act will the subject of an upcoming Senate hearing.

A Senate legislative committee has scheduled a hearing on a bill that would give cannabis businesses operating legally under state law access to the U.S. banking industry. The hearing before the Senate Committee on Banking, Housing, and Urban Affairs on “Challenges for Cannabis and Banking: Outside Perspectives” will be held on Tuesday, July 23 and will include testimony from sponsors of the Secure and Fair Enforcement (SAFE) Banking Act of 2019 (S. 1200) and representatives of the cannabis, banking, and credit union industries.

Under federal drug and money laundering regulations, even those cannabis businesses operating legally under state laws are usually not able to obtain access to common financial services. Consequently, companies in the cannabis industry often do business only in cash, putting the firms and their employees at risk of crime. The SAFE Banking Act would prohibit federal regulators for penalizing financial institutions and their employees for providing services to legal cannabis businesses, likely making more banks willing to serve the industry.

Witnesses Set to Testify

Witnesses scheduled to testify at next week’s hearing include Democratic Sen. Jeff Merkley of Oregon, the sponsor of the SAFE Act, and Sen. Cory Gardner, a Republican from Colorado who is one of the 31 Senate co-sponsors of the bill, and John Lord, the CEO of LivWell Enlightened Health and board chair of the Cannabis Trade Federation (CTF).

Neal Levine, the CEO of the marijuana industry trade group, said in a press release that the upcoming hearing is an indication of cannabis policy reform’s new support in Congress, including the Republican-led Senate.

“This hearing is yet another sign that Congress is taking the cannabis banking problem seriously and intends to take action to correct it,” said Levine. “Cannabis businesses operating legally under state and local laws should have the same access to banking and financial services as any other type of business.”

Levine added that Lord’s appearance before the committee would give him the opportunity “to discuss the challenges of operating a cannabis business without full banking services.”

“With his decade of experience complying with regulations in this constantly evolving industry, John has a perspective shared by few others in the country,” he said. “We expect his testimony will be educational for members of the Committee and make a compelling case for the SAFE Banking Act.”

Keeping Communities Safe

Jim Nussle, the president and CEO of the Credit Union National Association, said the SAFE Act is about keeping communities safe.

“At its heart, cannabis banking is a public safety issue. It’s an $8.3 billion industry that’s currently being forced to operate almost entirely in cash,” Nussle said. “While 33 states, territories and DC have legalized cannabis, it’s been overwhelmingly difficult to provide these businesses financial services because handling transactions are currently considered money laundering. Credit unions have been leading the way in helping to get this money off the streets. We are dedicated to finding a solution to this ongoing challenge that impacts every community around the country, and look forward to working with Senate leaders during this hearing and with Congress at large.”

The SAFE Banking Act is also pending in the House, where it is sponsored by Colorado Democrat Rep. Ed Perlmutter.

TO READ MORE OF THIS ARTICLE ON HIGH TIMES, CLICK HERE.

https://hightimes.com/news/senate-schedules-hearing-cannabis-banking-bill/

0 notes

forensiceyes · 5 years

Text

So How Did It Go? – The SAFE Banking Act Senate Hearing

As we reported last week, a Senate Banking Committee hearing occurred this past Tuesday to consider the SAFE Banking Act. In short, the hearing didn’t display as much GOP sway or support as we were hoping for.

For one, none of the Republican committee members attended the hearing aside from Committee Chairman Mike Crapo (R-ID) (which he attributed to conflicting hearings). For another, while Chairman Crapo did conclude that “a case has been made pretty strongly here,” he cautioned that it’s still a “very important and complex issue that we need to get right.”

Despite Chairman Crapo’s long faces at times, various witnesses made their cases to the Committee during the 1.5-hour hearing. Those witnesses included SAFE Banking Act sponsors Senators Cory Gardner (R-CO) and Jeff Merkley (D-OR); MAPS Credit Union Chief Risk Officer, Rachel Pross (representing CUNA), Citywide Banks’ President and CEO, Joanne Sherwood (representing ABA); Smart Approaches to Marijuana (SAM) Vice President of Government Affairs, Garth Van Meter; and LivWell Enlightened Health CEO, John Lord.

Senator Gardner called the hearing “an important step toward the federal government waking up to the reality that the cannabis issue is not going away and needs action.” He cited that polling now shows about 65% of Americans support legalization of marijuana and 93% support medical marijuana. Senator Gardner emphasized that the states are leading on this issue, “and the federal government has failed to respond.”

It has closed its eyes and plugged its ears and pretended the issue will go away. It won’t.”

Ms. Pross testified: “There are there are certainly valid concerns being brought to this committee hearing today. But the SAFE Banking Act is narrowly targeted,” she said. “It’s a narrowly targeted protection for financial institutions to serve an $8.3 billion industry that is already in place today.”

Mr. Lord provided perspective on the significant compliance costs associated with serving cannabis customers under the present regime, citing that those financial institutions who service cannabis businesses charge them substantial monthly fees.

Our company pays in excess of $3,000 per month for the mere privilege of having an account. … The current situation is especially challenging for small businesses. While we, due to our size, are able to absorb the additional costs associated with cash management and exorbitant bank fees, many small businesses are not.”

On the opposite end of the spectrum, Mr. Van Meter testified that prioritizing marijuana banking “over science” that verifies the risks of marijuana consumption would be irresponsible.

By skipping ahead to a technicality over banking rules, the marijuana industry is hoping to gain many of the benefits of federal legalization without a debate over the public health effects. But make no mistake, a policy change around banking would have massive public policy and public health ramifications, so we are shirking our duties if we do not consider the full question. The SAFE Banking Act will allow the expansion of an industry pushing new, exponentially more powerful forms of marijuana before any of its health or other societal impacts are fully understood. Today’s marijuana is produced in concentrations that have damaging effects on the brain, are promoted by the industry, and sold in forms attractive to children.”

In response to questions following the hearing, Chairman Crapo commented that the Committee is “trying right now to see if we can find a way to address the various issues” ahead of a potential markup on the cannabis banking legislation. He also indicated he doesn’t intend to hold additional hearings on the issue.

This hearing marks the sixth congressional hearing on marijuana policy this term, following a hearing held by the House Judiciary Subcommittee on Crime, Terrorism and Homeland Security on pathways to ending the federal prohibition of cannabis. It also comes just hours after House Judiciary Committee Chairman Jerry Nadler (D-NY) and Democratic presidential hopeful Senator Kamala Harris (D-CA) announced plans to introduce a bill to decriminalize marijuana at the federal level. These certainly are all positive steps for the industry, but it remains to be seen whether anything will come to fruition.

So How Did It Go? – The SAFE Banking Act Senate Hearing posted first on http://ronenkurzfeld.blogspot.com

0 notes

cannabisbusinessexecutive · 6 years

Text

Cannabis Trade Federation Announces Industry Leaders as Founding Board Members

PRESS RELEASE

New Organization to Focus on Passing the STATES Act, Hires Industry Veteran Neal Levine as CEO

WASHINGTON, D.C. (07/25/18) – The Cannabis Trade Federation (CTF) proudly announced 14 founding board members today, building on the organization’s initial formation just a few months ago. CTF is a newly formed national coalition of cannabis-related businesses that represent all aspects…

View On WordPress

0 notes

livwelltrinidad-blog · 5 years

Photo

LivWell Enlightened Health Marijuana Dispensary

Whether you’re a local looking to find the best flower, concentrates, edibles, and accessories in town, or a tourist seeking out the best that Colorado’s marijuana industry has to offer, LivWell Trinidad is the perfect recreational marijuana dispensary for you.

Address: 124 Santa Fe Trail, Trinidad, CO 81082, USA Phone: 719-422-8251 Website: https://www.livwell.com/trinidad-marijuana-dispensary

#Trinidad Dispensary #Dispensaries In Trinidad Colorado #Marijuana Dispensary Trinidad #Marijuana Dispensaries Trinidad CO

0 notes

livwellcortez · 5 years

Photo

LivWell Enlightened Health Marijuana Dispensary

LivWell Cortez, located in the historic archaeological town of Cortez, officially opened its doors as a recreational marijuana dispensary in early 2015 and has been providing the community with top-notch cannabis products and services ever since.

Address: 1819 E Main St, Cortez, CO 81321, USA Phone: 970-565-9577 Website: https://www.livwell.com/cortez-marijuana-dispensary

0 notes

bestmarijuanaboutiques · 5 years

Text

Cannabis Trade Federation’s, John Lord Writes Key Takeaways On Senate Hearing

New Post has been published on https://bestmarijuanaboutiques.com/?post_type=wprss_feed_item&p=23540

Cannabis Trade Federation’s, John Lord Writes Key Takeaways On Senate Hearing

Yesterday, Cannabis Trade Federation Board Chair John Lord — CEO of LivWell Enlightened Health — represented the cannabis industry during the U.S. Senate hearing on “Challenges for Cannabis and Banking.”

The hearing allowed John to directly address key senators as they consider the SAFE Banking Act, the Senate companion bill to legislation that passed out of committee in the House this spring. The committee also heard testimony from sponsors of the bill — Sens. Cory Gardner (R-CO) and Jeff Merkley (D-OR) — as well as Maps Credit Union Chief Risk Officer Rachel Pross, Citywide Banks President and CEO Joanne Sherwood, and Smart Approaches to Marijuana Vice President of Government Affairs Garth Van Meter.

Below you’ll find my quick takeaways from yesterday’s hearing, as well as additional resources for anyone who would like to take a closer look.

Key Takeaways

1. Lawmakers and witnesses agreed the issues around cannabis banking are not going away. Conversations focused on the safety hazards created by cash-only businesses, the hurdles to state-legal cannabis banking, and the need to pass the SAFE Banking Act.

2. The only witness opposed to the SAFE Banking Act did not appear to convince policymakers. Mr. Van Meter argued that Congress should not pursue a banking fix without first dealing with safety studies and other issues, but lawmakers’ questions refocused the group on the banking issue.

3. Lawmakers and witnesses were supportive of federal regulations related to cannabis. Ms. Pross and Ms. Sherwood emphasized the need for regulators to expand upon the 2014 FinCEN guidance, in order to provide greater clarity to financial institutions. This could occur before or after passage of the SAFE Banking Act. Under questioning from the committee, John voiced his support for additional federal regulation of the cannabis industry and said he looked forward to being part of the system as regulations evolve. He explained why it is so critical for cannabis businesses to have access to the regulated banking system, and he noted that cannabis’s illegal status and the lack of a regulatory framework on the federal level have blocked effective research.

4. This hearing was only the first step, albeit an important one. The consensus among committee members around the need to resolve the cannabis banking crisis — including Chairman Mike Crapo (R-ID), who has not been forward-leaning in his support for cannabis reform in the past — marks a turning point in the conversation. While this opens the Senate for action around the SAFE Banking Act, it may not necessarily herald immediate action on the legislation. CTF is committed to continuing to advocate for the SAFE Banking Act and other positive reforms to federal cannabis laws.

Additional Resources

If you’d like to take a closer look into yesterday’s hearing, I’d recommend exploring the following resources:

WATCH THE VIDEO of yesterday’s committee hearing.

REVIEW JOHN’S TESTIMONY, which highlighted his business’s experiences and the need for reform.

READ THE COVERAGE from Marijuana Business Daily, Yahoo! Finance, and Forbes.

#Array

0 notes

reneeacaseyfl · 5 years

Text

Pot Execs Testify About Being Denied Banking: It’s ‘Federal Chaos’

The Senate Banking Committee heard firsthand on Tuesday about the cannabis industry’s challenges in accessing the U.S. financial system—obstacles that have scared banks away from dealing with the industry and forced cannabis companies across the country to operate as cash businesses.

Both banking and marijuana industry participants testified before the committee’s “Challenges for Cannabis and Banking: Outside Perspectives” hearing in Washington, where the conversation centered around Secure And Fair Enforcement (SAFE) Banking Act of 2019. The bill would provide banks and financial institutions with a “safe harbor” from federal regulations prohibiting them from working with cannabis-related businesses, so long as they do so in states where marijuana is legal.

The hearing also featured testimony from Senators Jeff Merkley (D-Ore.) and Cory Gardner (R-Colo.), who are co-sponsoring the Senate version of the bill and discussed what the legislation aims to achieve—namely, rectifying a situation where the federal prohibition on cannabis means that marijuana cultivators and retailers are often deprived of even the most basic banking services, and even the “ancillary” businesses that provide them with products and services can find themselves subject to sanctions.

“Let’s stand with states’ rights; let’s stand with the judgment from across the nation,” Merkley said of the 33 states (plus the District of Columbia) that have legalized marijuana for recreational use, medicinal use or both.

Merkley described the status quo as “a federal chaos” that enables money laundering, robbery, and tax evasion, and also leaves individuals with indirect ties to cannabis businesses—such as the spouses of people who work in the industry—prone to losing bank accounts and other financial services.

“Forcing legal businesses to operate in all cash is dangerous for our communities,” he said, describing it as “one of the most absurd things I have ever witnessed.”

John Lord, the owner and CEO of Colorado-based marijuana cultivator and retailer LivWell Enlightened Health, depicted a business environment where banking services are few and far between and cannabis businesses have to pay monthly fees of up to $3,000 for bank accounts with state-chartered credit unions.

“At one point, I rented out a former bank to use as a vault to store cash; another time, I had no choice but to walk into the IRS in Denver with more than $3 million in cash in order to pay federal taxes,” Lord said. “Imagine running a business with hundreds of employees and having to make all payments, including payroll in cash. It is difficult, and frankly, it’s dangerous.”

Those challenges were echoed by Rachel Pross, chief risk officer at Oregon-based Maps Credit Union, which banks the legal marijuana industry in its home state. Pross, who testified on behalf of the Credit Union National Association (CUNA), noted that “cannabis businesses don’t operate in a vacuum”—adding that “without a federal law providing explicit legal clearance” to financial institutions, ancillary businesses from accountants and lawyers to plumbers and electricians will continue to be at risk of sanctions for working with cannabis businesses.

Meanwhile, the industry’s reliance on cash continues to pose a safety and security risk for marijuana companies. Joanne Sherwood, the president and CEO of Colorado-based Citywide Banks, pointed out that while cannabis companies represent less than 1% of all local businesses in Denver, they accounted for 10% of reported burglaries in the city from 2016.

Unlike Maps Credit Union, Citywide does not provide financial services to the cannabis industry in its state. “The fundamental issue is that this is illegal from a federal perspective,” Sherwood said. “We are not willing to take the reputational risk or the exposure.” She urged the committee to pass the SAFE Banking Act and asked for federal banking regulators to “clearly define the expectations and operating procedures” for working with the industry.

Yet not all who testified were in favor of more lenient guidelines for dealing with marijuana businesses. Garth Van Meter, director of legislative affairs for the anti-legalization nonprofit Smart Approaches to Marijuana, provided counterpoints to the day’s pro-SAFE Banking Act testimonies by calling for more research into the potency of today’s cannabis products “before we address the banking question.”

“To address banking, and the institutional investors entering the banking system to invest in marijuana firms, is premature before we’ve had a debate over whether or how to regulate the addictive potential and the abuse potential of high-potency marijuana,” Van Meter said.

In addition to criticizing marijuana retailers’ marketing of high-THC “concentrates,” as well as edible products that he said indirectly appeal to children and adolescents, Van Meter gave his view that the cannabis industry “is always going to be a very cash-intensive business” given some customers’ reluctance to divulge their financial information.

“The states’ seed-to-sale tracking systems track customer data, and then those companies turn around and sell that [information] back to the marijuana industry,” he said. “There’s always going to be a proportion of the clientele that doesn’t want to be tracked and is always going to pay in cash.”

Yet that doesn’t address cannabis businesses’ difficulties in finding a place to park that cash, which the SAFE Banking Act is meant to alleviate. So would the federal de-scheduling of marijuana—which is exactly what Rep. Jerry Nadler (D-N.Y.) and Sen. Kamala Harris (D-Calif.) happened to suggest on Tuesday, via their introduction of the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act.

The MORE Act would make marijuana legal under federal law, place a 5% federal tax on legal cannabis and establish an “Office of Cannabis Justice” that would provide grants to communities harmed by the federal prohibition of the drug.