AUGUSTA, Maine—New legislation in this state would authorize a study into how Maine can support the banking needs of the recreational and medical cannabis industries, which last year brought in about $500 million to the Pine Tree State and employed thousands of workers, the Portland Press Herald reported.
Cannabis is still illegal under federal law. The bill has been introduced by Rep. Sally Cluchey (D-Bowdoinham).
Maine is home to 332 state-licensed recreational cannabis businesses, including cultivators, store owners, manufacturers and testing labs. In the medical market, according to Feb. 28 data, there were 1,634 providers — known as caregivers — and 77 active dispensaries, Portland Press Herald noted.
“While some credit unions will work with cannabis-related businesses, these services are prohibitively expensive and place substantial burdens on the financial institutions,” Cluchey told the Committee on Veterans and Legal Affairs at a recent hearing. “Without access to multiple banking options, many cannabis-related businesses have no choice but to operate on a cash-only basis.
Cash-only puts both the businesses and their employees’ personal and financial security at risk, Cluchey said. It also increases the likelihood of “bad actors” entering the illicit market, Portland Press Herald reported.
Financial institutions have said the regulations in place are burdensome for FIs. Many would rather continue not serving cannabis businesses than take on the burden, Portland Press Herald noted.
The Committee on Veterans and Legal Affairs approved a nearly identical version of the bill proposed by Sen. Nicole Grohoski (D-Hancock) in 2023, but it died on the study table, Portland Press Herald added.