State monetary organizations request marijuana banking options

Creating a statute to permit Wisconsin banking institutions to defend myself against clients into the cannabis company would offer quality for the state’s institutions that are financial.

It’s now unclear if a Wisconsin bank could take an Illinois marijuana dispensary on as a client, for instance, explained Wisconsin Bankers Association COO Mike Semmann and WBA Legal Affairs Director Scott Birrenkott.

Semmann described it as “highly complex, extremely dangerous … rather than always into the monetary institution’s best interest” to just take a marijuana business on in Wisconsin because marijuana is illegal in the state.

A statutory change in Wisconsin would give banks the certainty to answer if it’s legal to bank a customer in the marijuna business, Birrenkott added.

Rep. Terry Katsma, R-Oostburg, asked what impact marijuana that is legalizing have on Wisconsin’s bank system during an Assembly Committee on Financial Institutions hearing yesterday. Katsma functions as vice seat associated with committee.

Department of finance institutions Deputy Secretary Cheryll Olson-Collins stated other states have actually legalized cannabis it poses a problem if there’s no way to handle money that gets exchanged because they’ve found. Those customers and businesses if marijuana is not legal, banks and credit unions cannot bank. Gov. Tony Evers in their budget proposed legalizing and taxing cooking pot.

Surrounding states such as for example Illinois and Michigan have actually legalized cannabis, offering those finance institutions an advantage that is unfair state lines, she noted in her testimony.

“Sometimes The institutions that are financial that they’re likely to be outside of the lines and additionally they don’t wish to be,” Olson-Collins said, including that a marijuana banking statute, permitting banking institutions to take part, is “a little bit of convenience.”

Wisconsin Credit Union League Vice President of Government Affairs Sarah Wainscott stated the conversation happens to be occurring during the level that is federal a number of years.

“It creates a environment that is difficult these firms, now that we’re seeing these firms have closer and nearer to Wisconsin state lines, don’t have a spot to properly place their money,” she stated.

Wainscott recalled an account of companies in other states leasing an truck that is armored keep their money.

“You want to be able to make sure that these businesses have a safe place to do their banking, and so that’s what we would look for in some sort of cannabis or marijuana banking options.”

Committee Chair Rep. Cindi Duchow, R-Town of Delafield, indicated the committee would further the discussion “at some point* that is.”(

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