By Sen. Jacky Rosen

In 2016, Nevada voters chose to legalize and regulate recreational marijuana. In the time since, our state’s marijuana industry has been an economic success, creating new businesses, more jobs, and increasing tax revenue. However, Nevada’s new and booming industry is being hindered by federal laws that block access to financial institutions and services. That’s why I’m supporting the Secure And Fair Enforcement (SAFE) Banking Act, so that this industry can continue to grow -- and the will of Nevada voters is respected.

Not only has our recreational marijuana industry created over 8,000 new jobs, but in its first full year of legalization, licensed dispensaries have earned over 425 million dollars in sales, generating nearly 70 million dollars in tax revenue for our state, almost 140% higher than anticipated.

However, because of outdated, overreaching federal law, cannabis businesses in states like ours, that have legalized marijuana, are left without access to banking and financial institutions. Under current law, if financial institutions were to provide banking services to authorized cannabis businesses, they would be liable for criminal prosecution. This means that cannabis stores must operate as cash-only businesses, preventing them from accepting credit card payments, depositing revenue, or writing checks for payroll or taxes. This lack of fair access to banking makes it all the more difficult to conduct business.

Currently, there are no Nevada banks that have engaged in business with dispensaries due to the high legal risk. This lack of banking access gives dispensaries few options of where to store their funds. In fact, there have even been reports of stores burying their revenue underground for safekeeping. This presents not only financial hindrances to our new businesses, but also presents dangers to public safety and increases the risk of crime.

I applaud Governor Sisolak’s creation of a marijuana compliance board so that those in the industry remain licensed, transparent, and well regulated. The compliance board is also reviewing the ability of Nevada cannabis industry to engage in banking. This is an issue where Congress and our state can act in a joint partnership to benefit Nevada, as well as other states across the nation.

I’m co-sponsoring the SAFE Banking Act because it’s time to remove the obstacles that prevent banks from conducting business with our state’s marijuana industry. This bill would allow banks to offer services and accounts to marijuana-related businesses that have been licensed and regulated in states that have voted to legalize.

By removing federal penalties preventing banks from interacting with the cannabis industry we can finally give our authorized marijuana businesses the opportunity to operate like any other business in the state. This means that cannabis businesses can store their revenue with banks that allow it, without risk of asset forfeiture or penalties.

I support the developing cannabis industry in our state, which is why last year in the House I co-sponsored the Small Business Tax Equity Act, so that marijuana businesses in compliance with their respective state’s law could make use of small business-related tax deductions and credits.

In this same vein, the SAFE Banking Act is a commonsense next step to protect Nevada’s newest industry and put a stop to the unfair disadvantages they face. It’s time for Washington to step up so that our cannabis industry can continue to thrive and benefit our state. If we don’t work in Congress to modernize our laws regarding marijuana, states like Nevada risk seeing their new form of revenue go up in smoke.

Jacky Rosen, a Democrat, is the junior senator for Nevada.