A drug-abuse group claims that the passage of a bipartisan bill to reform marijuana banking will increase traffic deaths and hospitalizations.
Community Anti-Drug Coalitions of America, a non-profit organization, sent an email blast Tuesday encouraging its members contact their federal representatives and Senators with a letter they had written opposing the Secure and Fair Enforcement Banking Act (SAFE).
In the email, it claimed that the legislation – which would protect banks and credit unions from being penalized for simply working with state-licensed marijuana businesses – “would set a precedent that allows other federally illegal sectors to gain access the banking system.”
The CADCA, who previously fought against a federal cannabis legalization bill in Congress last year, urged supporters to contact their legislators.
CADCA has removed a webpage from its website after receiving criticism for this effort. The page listed corporate partners such as the NFL, Krispy Creme, and pharma companies.
It is clear that the government will ramp up its campaign to stop another marijuana bill in this session. They have made bold claims about what they claim would be negative consequences of incremental banking reform.
This is the complete text of the letter CADCA asks supporters to send their House and Senate members:
“I’m writing to you today to urge that you oppose the SAFE Banking Act. This legislation aims to legitimize marijuana businesses that are illegal under federal law. The banking system opening up to marijuana businesses will increase access and availability, which could have grave consequences for public safety and health. SAFE Banking Act will give international drug cartels an advantage in their ability to launder money derived from other illegal activities. The SAFE Banking Act would be a bad idea as we battle the opioid, stimulant, and vaping crisis in our country.
This legislation would only exacerbate the negative effects of the marijuana industry’s growth, such as increased traffic deaths, youth usage rates, ER and hospital visits. Please vote “No” on the SAFE Banking Act.”
The group states that allowing cannabis businesses to access the banking system “would make it easier for them do business.” But supporters strongly disagree with CADCA’s assertion that this would result in the serious problems that they outlined.
The impact of legalizing cannabis on traffic safety has been studied in a mixed way. Several studies, and federally-funded research, have found that youth marijuana usage remains stable or even decreases after states set up regulated adult-use market.
Justin Strekal, founder of BOWL PAC, told Marijuana Moment that it must be frustrating for CADCA to be so clearly wrong about cannabis and yet still fear monger to appease the bloodlust of a rapidly decreasing prohibitionist population.
Disclosure: Strekal is a supporter of Marijuana Moment through a pledge per month on Patreon.
CADCA’s claims may be consistent with the prohibitionist narratives surrounding legalization. However, the group argues that its modest proposal of allowing banks to work with licensed marijuana businesses as they would with any other traditional industry could have drastic public safety ramifications.
Supporters of SAFE Banking Act – which received an first hearing in the Senate Banking Committee, last month, and will receive a “soon” markup before possibly advancing to floor – argue that the reform is a public-safety imperative.
Many cannabis businesses are cash-only operations, and as such, they are particularly vulnerable to criminal activity. Numerous marijuana shops have been robbed with deadly consequences to the workers.
Joy Sweeney, CADCA’s Joy Sweeney, also tried to block the cannabis legalization initiative from appearing on Missouri’s statewide ballot last year. She failed. A court dismissed the lawsuit and Missouri voters approved legalization.
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Other advocates and legislators are working to amend the bill.
Senate Majority leader Chuck Schumer (DNY) and other have discussed plans to modify the legislation before the floor in order to adopt “critical” criminal justice provisions, such as expungements of prior marijuana convictions. They called broader efforts to repair the damages caused by the drug war “moral responsibility” on Congress.
Uncertain if the members of the committee will make any changes to the bill at the markup. However, at least one Democratic Senator on the panel has already indicated that he wants to make some modifications to the banking provisions.
Some consumer groups and Sen. Jack Reed, D-RI have expressed concern that section 10 of the bill may inadvertently limit the ability of the regulators to take action against those who abuse banking services.
Sherrod Brown, the chairman of the Senate Banking Committee (D-OH), himself stated that he was concerned that banking representatives would try to “weaken” bank rules and “undermine regulations” by using legislation.
Other people have proposed changes they would like to see included in the cannabis bill, such as expanding protections for marijuana industry access all forms of financial service, including participation on major U.S. Stock Exchanges.
Other advocates have criticized the request, saying that it would be inappropriate to assist businesses at a time when efforts to legalize cannabis in Congress are stalled.
Last month, a major cannabis lobbying company apologized for sending a letter to the Senate Banking Committee’s leadership regarding the Banking Bill . The letter contained references referring to Chinese investments in an “inappropriate attempt” to push amendments to the legislation.
Jacky Rosen, a Nevada senator, said recently that the SAFE Banking Act should be passed with an amendment to allow cannabis businesses access to federal Small Business Administration services (SBA).
The legislators will continue “to work in a bipartisan manner” in order to accomplish the task.
In the first months of the new Congress, the majority leader has met with Democratic members and Republican members to discuss marijuana reform proposals which might be able to garner bipartisan support this year.
Rep. Barbara Lee, D-CA, co-chairwoman of the Congressional Cannabis Caucus said that she is “cautiously hopeful” that Congress will pass the SAFE Banking Act in this session. However the prospects have been complicated by the Republican control of Congress.
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Photo by Philip Steffan.
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