A bipartisan marijuana banking law has been scheduled for a vote by a key Senate committee, signaling the resolution of disagreements between Democrats and Republicans on key provisions.
On Friday, the Senate Banking Committee released an official schedule showing that members will mark up the Secure and Fair Enforcement Banking Act (SAFE) on Wednesday, 27 September. This is a crucial step in the measure’s journey to the Senate floor.
The news comes just a day after the media began citing sources who had revealed plans to hold a marking up on the last week in September. However, the exact date was unclear until now. The meeting time on September 27th has been listed as “to determined.”
After weeks of negotiation, it’s not clear how the bill will change. Senators have been discussing revisions to provisions in a section relating to broad banking regulations. Other lawmakers and stakeholders, however, have suggested changes pertaining Small Business Administration access and stock-uplisting for cannabis industry.
He said last week that an agreement was “imminent” and on Monday he expressed his hope to announce the scheduling of legislation within the next few days.
We need to ensure we have enough votes. “I mean, some members have some differences,” said the chairman. I’m not going publically to talk about negotiations and what people want or don’t. Minor issues remain. We hope to bring people on board and have a strong voting.”
A few industry insiders had predicted the markup to be held next Monday. However, a Banking Committee spokeswoman told Marijuana Moment that was not the plan.
His office recently told Marijuana Moment that Sen. Steve Daines, R-MT, the GOP sponsor of this legislation, had a “very productive” discussion with Democratic members during the recess. They also added that they are “moving in a positive direction.”
Since returning from recess Senate Majority leader Chuck Schumer (DNY) has cited the Cannabis Banking Bill as a legislative priorities in several occasions, including a floor address and Dear Colleague Letter outlining the Fall agenda .
It is likely that the SAFE Banking Act will not be passed by the Senate in the fall due to a variety of factors. One of these is the time required to move through spending legislation necessary to fund the federal government. The resolution of the senators’ disagreement on Section 10 of cannabis bill is also crucial to the passage.
Some Democrats are concerned that Section 10 would undermine the banking regulations, and they want to change or remove it. Republicans, however, have stated that they do not support this option. It is unclear whether any progress has been made in reaching an agreement over the recess.
As of now, the SAFE Banking Act is co-sponsored by 42 senators, which is nearly half the Senate. Eight Republicans and three Independents are also on board. Insiders claim that the SAFE Banking Act, in its current standalone form, has enough Republican support to pass the Senate’s 60-vote requirement.
Brown and Daines sparred about the next steps of the bill as the summer recess approached. Brown insisted Daines needed to get more GOP co-sponsors. Daines, however, argued that Republicans were already ready to pass the bill as agreed upon.
Schumer and other lawmakers have discussed plans to amend legislation currently on the floor to adopt “critical” criminal-justice provisions, such as expungements of prior marijuana convictions. They also called for a broader effort to repair harms caused by the drug war to be a “moral obligation” for Congress.
Daines’ spokesperson told Marijuana Moment that the senator is “open” about including the additional reform provision. However, he warned Democrats not to expand the bill’s scope significantly in a manner that would jeopardize GOP backing. Insiders claim that the bill, in its current form and as a stand-alone measure, has the Republican support needed to pass the Senate.
In July, the American Trade Association for Cannabis and Hemp, along with other trade groups representing marijuana businesses from 16 states and Washington D.C., sent a letter to Brown and Banking Committee ranking member Tim Scott (R-SC), imploring them to pass the cannabis banking legislation “without further delay.”
Schumer also talked with a cannabis business leader earlier this summer , after being approached by the entrepreneur at an unrelated function. According to the entrepreneur, Schumer is “confident” that the cannabis banking bill will pass.
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In its current form, the measure protects banks, credit unions and depository institutions from being penalized for working with cannabis businesses licensed by state regulators.
Other people have suggested other 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 representative 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.
Sen. Jacky Rose (D-NV), has said that , she wants the SAFE Banking Act passed with an amendment to allow cannabis businesses to have 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 April, Sen. Cory Booker of New Jersey said that lawmakers are working on “resurrecting” the Cannabis Reform Package. He acknowledged that the failure to advance an industry-wide banking solution “literally means hundreds of businesses will go out of business.”
Rep. Earl Blumenauer, D-OR, who is the lead Democratic sponsor for the House version SAFE Banking Act in April, stated at a media briefing that he believes it’s crucial that advocates and legislators align on any incremental proposal to end the war on drugs, cautioning against a “all or nothing” mentality.
The American Bankers Association (ABA), which also renewed its call recently for the passage the legislation. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.
Colorado Gov. Jared Polis, a Democrat, said separately in a letter sent to President Joe Biden recently that he should support the congressional push for marijuana bank reform at the same time the Drug Enforcement Administration begins its review of the cannabis schedule after receiving a rescheduling recommendations from the top federal agency.
FDA and other federal agencies discuss marijuana research barriers, state legalization models, and CBD regulations at National Academies meeting
Photo by Mike Latimer.
The article Key Senate Committee officially schedules Marijuana banking vote first appeared on Marijuana Moment.
