Cannabis Revolution: Washington’s Policy Changes May Transform Nevada Industry
- The Senate Banking, Housing, and Urban Affairs Committee has passed the SAFER Banking Act, a bipartisan legislation that is aimed at giving legal cannabis businesses access to banking and insurance services, thereby reducing the risks associated with all-cash transactions in the industry.
- The Department of Health and Human Services recommended that cannabis be rescheduled from Schedule I to Schedule III, which would not legalize marijuana but could significantly reduce the high taxes cannabis businesses currently face. Rescheduling would also correct a misclassification of the drug under federal law, as it is currently classified alongside drugs that are deemed to have no medicinal use.
- In Nevada, there is an ongoing effort to remove cannabis from the state’s Schedule I list. The Cannabis Equity and Inclusion Community has filed a lawsuit against the Nevada Board of Pharmacy over the classification of cannabis, and while the case has been won, the Board has appealed to the Nevada Supreme Court.
Nevada Cannabis Businesses Look to Washington
The Nevada cannabis industry is keenly watching Washington due to recent developments in cannabis banking and classification.
The Senate committee has approved the SAFER Banking Act, enabling legal cannabis enterprises to access banking and insurance services without federal law enforcement interference. Additionally, the Department of Health and Human Services suggested the reclassification of cannabis from Schedule I to Schedule III status to the Drug Enforcement Agency.
The SAFER Banking Act
Nevada Sen. Catherine Cortez Masto successfully pushed for the SAFER Banking legislation, arguing its passage would improve safety and ensure fair access to banking for legal cannabis businesses.
Initially, all-cash transactions posed significant risks for the cannabis industry. However, with the SAFER Banking Act, businesses can now conduct regular payroll and offer normal credit or debit card transactions, providing convenience and security. This law could also enable access to loans and capital for these businesses.
Rescheduling Cannabis
The recommendation to reschedule cannabis comes after President Biden’s review of the drug. If rescheduled, cannabis businesses would face less tax burden. Currently, due to an old law, cannabis businesses cannot deduct ordinary business expenses due to its Schedule I or II status.
However, the Nevada-based Cannabis Equity and Inclusion Community is advocating for full decriminalization of cannabis. The group believes that their lawsuit could initiate a nationwide effort towards decriminalization. Despite the appeal made by the Nevada Board of Pharmacy, cannabis still remains a Schedule I drug in Nevada.
While rescheduling is considered a step in the right direction, it doesn’t fully address full decriminalization, according to the Nevada Cannabis Association.
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