Marijuana Business Bills Get Nevada Backing

Even as more states across the country legalize marijuana use and commerce, many businesses find themselves stymied by a very significant roadblock - federal regulation. While states are legalizing its use, the federal government still considers it illegal.

As a result, many simple activities taken for granted by most small businesses are off-limits to businesses that deal in marijuana.

Now, two Nevada legislators, both Democrats - one in the House of Representatives and one in the Senate - are looking to change things.

Representative Dina Titus announced on Friday that she has signed on to a bill that would allow marijuana businesses to deduct business expenses - something they are currently forbidden from doing.

"The tax code is outdated and out of step," Titus said. "It is time for Congress to give legal marijuana businesses equal footing under the law. In Nevada, more than 190 marijuana businesses exist and dozens more are expected to form in the coming months.

"These small businesses deserve access to the same deductions in the tax code that other legal enterprises utilize."

Meanwhile, over in the Senate, Catherine Cortez Masto joined seven of her colleagues - Democrat and Republican - in introducing legislation that would allow legal marijuana businesses to access banking services.

"We need to put the right infrastructure in place for the marijuana industry to operate legally and securely," Cortez Masto said. "Allowing lawful cannabis-related businesses access to the mainstream banking system will alleviate security concerns and create more regulatory certainty for Nevada dispensaries and related providers, as well as the banking system.

"This bill will give our economy a boost by letting local businesses thrive and will also aid in the economic development of Nevada tribes."

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The bill would prevent federal banking regulators from:

• Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as a lawyer or landlord providing services to a legal cannabis business);
• Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
• Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
• Taking any action on a loan to an owner or operator of a cannabis-related business.

The bill also creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services.

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