New Bill Allows Oregon Banks to Work with Marijuana Businesses

Governor Kate Brown signed House Bill 4094 which removes state criminal liability from banks and credit unions doing business with marijuana industry businesses in Oregon. The Oregon Department of Consumer and Business Services has been directed to explore additional banking options for marijuana businesses as well.

Liability, however, is only removed within the State of Oregon. Banking with marijuana industry businesses is still illegal federally, as Oregon Live reports.  Representative Tobias Read believes that this sends a message to lawmakers on a federal level showing Oregon’s position on marijuana.

He said, “It makes no sense to say these businesses are legal on one hand and simultaneously on the other hand say that legal businesses don’t have access to banking services. In the end, having an entire segment of the economy – and a growing one at that – based on cash is not good for anybody.”

One Portland lawyer, Vince Sliwoski, said “It doesn’t do anything to ease up the federal restrictions on banks.”

Marijuana business owners are forced to work solely in cash or attempt to open bank accounts and not provide the details of the business to the bank. Some lawmakers and bankers believe that this measure is the first step toward opening the federal government’s eyes in regards to legally operating businesses being able to use the banking system like every other business can.

Spokeswoman for the Northwest Credit Union Association, Lynn Heider, said, “Unless Congress passes a law removing the criminal liability for financial institutions, our concern is that the regulatory environment may prevent many from serving marijuana businesses.”