While South Dakota is still stalled when it comes to making legal cannabis a reality within state borders, the state is already working on legislation that allows banks to decide whether or not to do business with the legal cannabis and hemp industry.
While this could allow for an avenue to legal cannabis banking, if all or most banks choose not to work with cannabis, the future industry could be in real trouble. HB1203 just passed the House 64-4, and the next step is for it to clear the senate. Republican House Representative Hugh Bartels sponsored the bill and also spoke out in support of it.
According to the legal language of the bill, “A bank may, directly or through subsidiaries, carry on the business of banking, pursuant to § 51A-4-1, with any person licensed in this state to engage in the business of industrial hemp or marijuana, or with any person engaging in business dealings with such licensee. The commission shall promulgate rules, pursuant to chapter 1-26, to facilitate a bank carrying on the business of banking with a person described in this section.”
Many states struggle with illicit market activity and theft because of the reluctance of banks