Chief Sponsor: Jacob L. Anderegg

House Sponsor: Melissa G. Ballard


9     General Description:
10          This concurrent resolution urges the President of the United States and Congress to
11     resolve the medical cannabis banking issue.
12     Highlighted Provisions:
13          This resolution:
14          ▸     acknowledges that, despite the enactment of the Utah Medical Cannabis Act,
15     cannabis plant extracts remain classified as Schedule I controlled substances under
16     federal law;
17          ▸     recognizes that the illegality of cannabis under federal law restricts the medical
18     cannabis industry's legal access to financial institutions' banking services;
19          ▸     warns of the dangers associated with businesses that operate entirely in cash; and
20          ▸     urges the President and Congress to remove the barriers that prohibit the medical
21     cannabis industry from legally accessing banking services.
22     Special Clauses:
23          None

25     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
26          WHEREAS, in 2018, the Legislature enacted H.B. 3001, Utah Medical Cannabis Act,
27     which provides for the cultivation, processing, medical recommendation, and patient use of
28     medical cannabis;
29          WHEREAS, despite the legalization of medical cannabis under the Utah Medical

30     Cannabis Act, cannabis plant extracts such as cannabidiol (CBD) and tetrahydrocannabinol
31     (THC) are classified by federal law as Schedule I controlled substances;
32          WHEREAS, the classification of CBD and THC as Schedule I controlled substances
33     makes using, prescribing, and dispensing these substances illegal under federal law;
34          WHEREAS, the illegality of cannabis under federal law further restricts the ability for a
35     cannabis business operating legally under state law to access banking services from United
36     States or state-chartered financial institutions;
37          WHEREAS, in July 2015, the United States Federal Reserve System denied a Colorado
38     credit union access to its payment systems, sparking a lawsuit in which the court upheld the
39     Federal Reserve's claim that, given the illegality of cannabis at the federal level, the credit
40     union did not have the right to insert state cannabis money into the federal banking system;
41          WHEREAS, the outcome of this case indicates that:
42          • courts will defer to the Federal Reserve's significant control over access to its payment
43     systems; and
44          • states are not able to circumvent federal statutes in order to solve the problem of
45     cannabis banking simply by chartering and endorsing special financial institutions;
46          WHEREAS, any industry conducting its business entirely in cash cannot be fairly taxed
47     or regulated, and has historically been associated with unlawful activity, such as money
48     laundering and increased threats to the security of the business and its patrons;
49          WHEREAS, the Utah Medical Cannabis Act will inevitably involve financial
50     transactions between cultivators, producers, medical cannabis pharmacies, and users of medical
51     cannabis, and the ensuing medical cannabis industry in Utah will require access to financial
52     services;
53          WHEREAS, while some financial institutions may be willing to risk breaking federal
54     law in order to provide much-needed banking services to medical cannabis businesses, many
55     remain reluctant to take such a risk; and
56          WHEREAS, it is in the best interest of all Utahns that Utah's financial institutions
57     provide banking services to support the medical cannabis industry and patients under the Utah

58     Medical Cannabis Act:
59          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
60     Governor concurring therein, strongly encourage the President of the United States and
61     Congress to remove the barriers that prohibit the medical cannabis industry from legally
62     accessing banking services.
63          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the President of
64     the United States, each member of Utah's congressional delegation, the National Conference of
65     State Legislatures, and the Governors' Association.