Bipartisan U.S. House And Senate Lawmakers Reintroduce Marijuana Banking Bill

Bipartisan lawmakers from the Senate and House have re-filed a bill that was much anticipated to open up banking services for marijuana businesses.

Sens. On Wednesday, Jeff Merkley and Steve Daines from Oregon and Montana respectively reintroduced a new version of the Secure and Fair Enforcement Banking Act (SAFE).

The bill, which was slightly revised from the last session, protects banks who work with cannabis businesses that are legal in their state.

Merkley stated in a release that forcing legal businesses to only accept cash is dangerous to our communities. It’s an invitation for robbery and money laundering. Organized crime will also benefit. And it’s time to fix this problem. “For the very first time, SAFE Banking has a way to get through the Senate Banking Committee. We can now vote on the Senate floor.”

Currently, cannabis businesses that are legal must operate in cash. This is a very dangerous system, ripe for money laundering, tax fraud and robbery. Cash is not a good system if you are concerned about the safety of others.

— Senator Jeff Merkley (@SenJeffMerkley) April 26, 2023

He said: “Let 2023 be the year we pass this bill into law, so that all legal cannabis companies have access to financial services that will help them keep their employees, businesses and communities safe.”

Cannabis reform must be rooted in restorative Justice. The SAFE Banking Act of 2020 includes expanded equity provisions. I will be pushing for funding to support states who choose to expunge their cannabis records. #SAFEBankingAct

— Senator Jeff Merkley (@SenJeffMerkley) April 26, 2023

Daines stated that the legislation will “provide the security, peace of mind, and financial products that Montana cannabis businesses require to freely use without fear of punishment banks, credit unions, and other financial services” as well as “help keep Montana communities safe, keeping crime off the street, supporting Montana small businesses, and bolstering local economies.”

The latest version makes it clear that safe harbor extends to Community Development Financial Institutions and Minority Depository Institutions that make commercial loan to minority-owned business. This is a new provision, which advocates sought at the last Congress.

Joyce, cochair of the Congressional Cannabis Caucus said, “As things stand, the federal government denies state-legal cannabis businesses the same access as other legal businesses across the Buckeye State, and throughout our country.” This not only distorts the market, but also forces businesses to work in cash, leaving them and their staff vulnerable to violent robberies.

He said: “The SAFE Banking Act, which is bipartisan, will allow cannabis businesses operate legally without fearing punishment from federal regulators. This will make our communities safer.”

Blumenauer, the founder of the Cannabis Caucus said that this bill “will save many lives and livelihoods.”

He said: “It’s past time Congress addressed the unfair, irrational and unsafe prohibition on basic banking services for state-legal cannabis business,” he added. The SAFE Banking Act has been passed seven times by the House on a bipartisan base. “I am thrilled that the Senate has joined us in making this a priority.”

The Senate bill also has 38 co-sponsors including five Republican members.

Sens. Jacky Rosen, Bill Cassidy, Kirsten Gillibrand, Cynthia Lummis and Rand Paul are among the senators who have endorsed this bill.

Eight additional co-sponsors have joined the two main sponsors in the House version.

These lawmakers are Reps. Warren Davidson, (R) (OH), Jim Himes, (D), (CT), Brian Mast, (R), Barbara Lee (D), Guy Reschenthaler(R), Nydia Velizquez (D), Lori Chavez DeRemer (R), and Lou Correa.

This isn’t the “SAFE Plus” package of marijuana banking legislation and expungements that Senate leadership tried to pass last year, but it fell short.

Sherrod Brown, the chairman of the Senate Banking Committee (D-OH), said in a statement earlier this month that he will be tackling cannabis banking reform by himself and leaving other committees to deal with equity and criminal justice issues.

Merkley and Daines issued a separate statement on Wednesday that addressed SAFE Plus prospects. They said the introduction of the standalone revised bill “puts [us] on a pathway to move through Senate Banking Committee and to get a vote in the Senate floor.” However, there will be “an opportunity to add additional regular order passed provisions” once it reaches Senate floor.

Senators have cited recent bipartisan proposals filed on marijuana expungements, and gun rights, as possible add-ons.

They said that the expanded “SAFE Banking Plus” package would represent the largest cannabis reform legislation ever with bipartisan support at Congress. “We are committed in 2023 to ensuring that all legal cannabis companies have access to financial services.”

To pass any reform this session, lawmakers are expected to focus their efforts on smaller marijuana measures, such as the banking bill, rather than broader legalization centered around justice.

A vote on Wednesday in the Senate has raised concerns about the feasibility of any modest cannabis reform under the current makeup of Congress. Senate Republicans have blocked a motion that would have advanced a bipartisan measure that simply required studies into the potential medical benefits of cannabis for veterans suffering from chronic pain or PTSD.

In recent years, the SAFE Banking Act was approved in a largely bipartisan manner in the House. It’s been stuck in a rut for years, under both Democratic and Republican leaders.

Advocates had expected that this legislation would come from the Senate, but it seems that lawmakers have decided to begin with a bipartisan push.

The Senate Majority leader Chuck Schumer, D-NY, said last week that he is “disappointed,” that the SAFE Plus package, which he worked on in last year, did not advance. He said that lawmakers will “continue to work in a multipartisan way” in order to accomplish the task.

He said: “Until we achieve our goal, I will be by your side and do everything in my power to bring federal cannabis policy up to date.” We will need you to continue to reach out to both parties in both chambers, especially the Republicans, so that we can progress on cannabis reform.

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.

Booker acknowledged that the failure to pass a banking solution for the cannabis industry would “literally” mean that hundreds of businesses will go out of business.

Blumenauer, who last week filed a bill to allow marijuana businesses to claim federal tax deductions, stated at a press conference that it is important for advocates and legislators to align on any incremental proposal to end the war on drugs, cautioning against an “all or nothing” mentality.

A number of cannabis-related bills were introduced last week, leading up to 4/20. However, lawmakers did not explicitly state that they filed the bills in relation to the unofficial holiday.

Rep. Brian Mast, R-FL, introduced a bill last week that would protect Second Amendment rights for people who use marijuana legally in states. This legislation would allow them to buy and possess firearms, which they are currently prohibited to have under federal law.

Reps. Dave Joyce, R-OH and Alexandria Ocasio Cortez, D-NY have introduced a bill that would provide federal grants to encourage state and local marijuana exclusions.

In the beginning of this month, Hakeem Jeffreys (D-NY), the House Minority leader, and Joyce filed a bill to help prepare the federal government to legalize marijuana. The measure directed the Attorney General to create a commission that would study cannabis and make recommendations on how to regulate it in a similar way to alcohol.

The Senate is set to vote Wednesday on a motion for cloture in a bill to promote research on marijuana for veterans. The procedural vote that will bring the legislation up for a vote is scheduled to take place on Wednesday.