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STATES Act
April 10, 2019

STATES Act Is Reintroduced, Would Protect Canna-businesses In Legal States

It has been nine long months since the STATES Act was first introduced (and subsequently shot down), but Senators Corey Gardner (R, CO) and Elizabeth Warren (D, MA) have reintroduced the legislation to the Senate floor. Additionally, Earl Blumenauer (D, OR) and Dave Joyce (R, OH) have followed suit in the House of Representatives.

What would the STATES Act do?

The STATES Act would afford states some degree of autonomy when it comes to cannabis. Namely, it would grant states the right to protect compliant and legal cannabis businesses (and their proprietors/employees) from being prosecuted under federal Controlled Substances Act. Notably, the Act also calls for the Government Accountability Office to study the impact that legalization would have on such matters as traffic safety, which is an interesting item to extrapolate federal legalization scenarios from.

The reintroduction of the STATES Act comes at a crucial juncture for cannabis, what with the other popular federal act bouncing around: the SAFE Act. As a refresher, the SAFE Act would allow banks and insurance companies to do business with compliant cannabis companies without fear of federal punishments.

Between the two pieces of legislation, there has never been a stronger case to be made on Capitol Hill for legalization or the erosion of the stigma that still swirls around the cannabis industry. Likewise, with both measures gaining increasing momentum, there has never been a stronger case for cannabis companies to become (and stay) compliant with all requisite state and municipal laws.

STATES Act and SAFE Act are massive opportunities

Compliance is the key to both of these acts. For a business there’s tremendous amounts of psychological and tangible relief in the form of the the fear of federal audit or arrest dissolving to say nothing of the ability to have such “luxuries” as a line of credit, bank loans or just not having to only operate in “cash-only.” That relief is only granted with compliance if the STATES and SAFE Acts pass, but good lord would be a relief.

Additionally, both STATES and SAFE make strong arguments for enhanced safety of cannabis companies via more transparency and, again, crucially not existing in a cash-only environment.

How can you help? Contact your Congressperson or Senator today, and let them know how much passage of these bills means to you, a taxpayer who LOVES voting.