Oregon’s governor recently vetoed an effort to create a state bank for marijuana businesses, in another blow to the struggling industry. The lack of consistent, equitable access to banking has been recurring issue for Oregon marijuana businesses and those in other states. Federal reform through the Secure and Fair Enforcement Banking Act (SAFE Act) has languished in the Senate for years. Again, the SAFE Act would “permit financial institutions to provide banking services to cannabis-related businesses even though marijuana remains federally illegal. Despite the tidal wave of legalization at the state level, financial institutions remain wary of providing banking services to these businesses because of the state/federal conflict of law and these institutions innate risk-avoidant nature.” But it has gone nowhere and we question if it ever will. Probably not.
This legislative session, Oregon considered creating a State Public Bank Task Force in HB 2673. The bill directed the task force to study and make recommendations concerning the establishment of a public state bank. The bill expressly directed the task force to investigate the provision of financial services for cannabis businesses. As we wrote previously, “a state public bank could be a real boon for licensed Oregon cannabis businesses.” But
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