The governors of states with differing political ideologies are urging Congress to act on marijuana banking and debating reform initiatives in their individual states.
Last month, as part of a Politico event series, the governors of Illinois, Minnesota, and North Dakota sat down for one-on-one interviews and answered questions regarding cannabis policy at the state and federal levels.
While the top state officials may have divergent views on the optimal path for marijuana reform, one theme that emerged from the interviews was the necessity for Congress to pass legislation allowing licensed cannabis businesses access to regular financial institutions.
It is a similarity despite the fact that their states have different marijuana laws, with Illinois having already legalized marijuana for adult use, Minnesota lawmakers actively pushing to advance the change this session, and North Dakota voters rejecting a legalization ballot initiative last year.
Illinois Gov. J.B. Prizker (D)
Prizker advocated for the legalization of marijuana for adults and has attempted to establish himself as an industry ally while pushing social fairness programs.
In his interview, the governor was questioned about the state’s inadequacies in ensuring that communities most affected by prohibition are represented in the legal economy.
Pritzker stated that despite “obstacles” in adopting equity policies, “we still have the most equity-focused cannabis market in the entire country.” “We built this sector with the intention of including and empowering those who have been historically excluded and neglected, and we have succeeded.”
The governor noted that the coronavirus outbreak and a protracted lawsuit regarding a cannabis business licensing lottery “actually prevented us from achieving all of our goals.”
In addition, he was questioned regarding congressional efforts to implement federal marijuana banking reform and what he would say to “old guard” opponents on Capitol Hill.
“Economic development depends upon it. “The growth of the industry depends on it,” added Pritzker. “We have a very outdated system for managing funds and resources for those in this profession in jurisdictions where marijuana is authorized. Hence, why not make it simpler?”
“You don’t have to legalize it in your state to allow states that have already stepped forward to operate in a more industrious, more businesslike fashion, rather than essentially having a huge safe on premise at many of these places that are holding cash, which causes all kinds of issues from a security perspective and then forcing us to create state-based solutions to something that really should be part of the federal banking system.”
Minnesota Gov. Tim Walz (D)
Several House and Senate committees have advanced a plan to legalize marijuana in Minnesota this session, and the governor firmly supports passing the reform.
Walz, who has worked on cannabis policy issues since his tenure in Congress, stated, “I believe it will happen.”
“I’ve been discussing this for a very long time. We are all aware that prohibition does not work,” he stated. “We do not know what is in street-level [illegal marijuana] items. We believe that regulation and, truthfully, taxation are components of reinvesting these funds in education.”
The governor stated that racial disparities in incarceration and the manner in which it was enforced disproportionately affected the Black community. So, I believe that is a very genuine possibility.
“I’ve always gone back to this: I have a little bit of that libertarian streak. I think adults should make their own decisions on these types of things. And I think that’s resonating, and it will probably work… States are the laboratories of democracy.”
The governor recently released his biennial budget request, which included proposed funding to implement marijuana legalization and expungements, as well as projections regarding the millions of dollars in cannabis tax revenue that his office estimates the state will earn after the reform is implemented.
In a recent interview, he also outlined his idea, explaining why he is pushing for a tax rate on marijuana sales that is roughly double that of the bill currently moving through the legislature.
North Dakota Gov. Doug Burgum (R)
The ballot item that voters rejected in November, according to Burgum, was a “quite sensible” proposition. Instead of commenting on the future of cannabis legalization in North Dakota, he shifted his focus to the federal banking issue.
On the financial services reform, he stated, “It’s far past due.” “As long as the banking system prohibits anyone from banking from the cannabis market, you are clearly creating a moral hazard by building a cash economy around everything that occurs.”
“Whether it’s building a greenhouse, purchasing materials, or paying your employees, we’re effectively pushing that to be a cash-based business,” Burgum said. “When you have cash-based businesses, you have all the opportunities for organized crime and tax fraud.”
He stated that he is “totally” in agreement with members of Congress who want a federal marijuana banking reform.
In the 2020 edition of Politico’s annual governor’s interview series, Pritzker and Burgum chimed in on cannabis legislation among five other senior state officials. In the prior year, governors also discussed marijuana and hemp.
