State representatives gave practically unanimous help Monday to permitting South Dakota-chartered banks to conduct transactions with companies which have state licenses for marijuana and industrial hemp.

The 64-Four vote within the House sends HB 1203 to the Senate for additional consideration. The prime sponsor, Republican Representative Hugh Bartels, was the one one to communicate on it. He a retired neighborhood banker from Watertown.

It additionally would permit banks to determine whether or not to serve companies that carry out work for these license holders, resembling {an electrical} contractor for a develop facility.

If the legislation passes, every financial institution would nonetheless have to determine whether or not to proceed with what Bartels described as “the extraordinary compliance issues” which might be required on the federal degree. “This is just the first step,” he mentioned.

Banks would want to conduct increased scrutiny of marijuana companies beneath a federal coverage. The federal authorities nonetheless considers marijuana to be unlawful. The marijuana business had lengthy relied on money.

South Dakota voters accredited two marijuana-legalization measures within the November three election. [Read more at Keloland]

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