Congress Should end N.J.’s Cash-Heavy Cannabis Conundrum | Opinion

hen I was growing up In Trenton in the 1990s, marijuana arrests were commonplace. I had some encounters with the police, but never went to jail like others in my neighborhood. I learned from those mistakes. — and I am pleased President Biden has now moved to address some of the racial wrongs of our nation’s failed war on cannabis.

I was blessed to have the opportunity to go to college and worked hard to have a successful career as an investment advisor. In 2013, my interest in marijuana was piqued in a very different way. I saw a company go public with a cannabis-derived product, CBD, that reduced inflammation and joint pain. I knew I wanted to get involved in what was clearly a growing and progressive industry.

I also wanted to make sure that people who are less fortunate could participate. My goal was not just to start a profitable cannabis business, but also to help other African Americans become involved. But the more I analyzed the cannabis industry business model I realized that none of us could fully take advantage of the possible opportunities.

Lack of capital blocks many people from entry because New Jersey’s dispensaries, like everywhere else in the U.S., are predominantly cash-only. They have minimal access to banking services and other resources because cannabis is illegal at the federal level.

Common sense legislation called the SAFE Banking Act would start to remedy this problem. It wouldn’t legalize cannabis at the federal level, but it would end the industry’s cash-heavy predicament in several ways.

Cannabis entrepreneurs are frequently forced to sell off parts of their businesses or fall victim to predatory lenders because they can’t borrow from commercial banks. SAFE Banking would help legally operating cannabis firms in New Jersey and across the nation raise capital and grow their services by granting them access to those banks.

The SAFE Banking Act would help cannabis firms improve their credit ratings and therefore more easily qualify for mortgages. Federal banking regulators would be required to provide uniform guidelines for cannabis-related business accounts. Depository institutions would be protected from civil and criminal sanctions for providing financial services to the nation’s growing number of state-sanctioned, cannabis- related firms.

Improving public safety is also a major benefit. Cash-heavy cannabis stores are prime targets for violent criminals. A deadly shooting in Los Angeles County is just the latest incident. Robberies of dispensaries happen all the time. In some places, organized caravans of armed thieves have ransacked cannabis businesses. The temptation to steal ready cash in Newark, Trenton or Camden dispensaries will be just as great as it is in Los Angeles, Oakland or Seattle.

These problems are well known. The New Jersey Banking Association joined 49 other state associations in signing a letter to U.S. Senate and House leaders stressing the SAFE Banking Act’s public safety and regulatory benefits. So have 24 U.S. Senators. Their bipartisan letter states: “Allowing cannabis businesses operating legally and in compliance with state law to access financial services without federal reprisal would address public safety and compliance challenges, helping communities reduce cash-motivated crimes.”

I was heartened to hear recent comments by New Jersey’s U.S. Sen. Cory Booker. He expressed optimism that a bipartisan legislative solution combining banking reforms and financial fixes for the cannabis industry with equity and justice-related policy changes may be within reach.

I agree with Booker’s view that those who suffered most from America’s failed war on cannabis should be first in line for help. And it is always beneficial when leaders from both sides of the aisle can work together to pass vital legislation. The U.S. House of Representatives has passed the SAFE Banking Act seven times, with strong support from the New Jersey congressional delegation.

It’s now the Senate’s turn. Booker and his colleagues should pass the SAFE Banking Act this year.

Tahir Johnson and business partner John Dockery, were granted dispensary licenses for their companies Simply Pure Trenton NJ Inc. and Simply Pure Downtown Trenton. They plan to open the businesses in Ewing Township and Trenton, respectively. Johnson is also director of Social Equity & Inclusion at the Marijuana Policy Project.

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