House lawmakers and Senate members re-filed a bipartisan marijuana banking reform this week , and it’s been praised by many major marijuana stakeholders and financial institutions that had backed previous versions of the bill. Key advocates, including critics who criticized the measure’s equity limitations, are giving tepid approval to the revisions made in the most recent version. They urge further work as the legislation advances.
This could include making changes to the bill to satisfy the concerns of Sherrod Brown, the chairman of the Senate Banking Committee (D-OH), who is expected to have his panel be the first one to consider it. The senator stated on Thursday that the committee’s consideration of the bill is being delayed due to banking industry representatives trying to “weaken” bank rules and “undermine regulations”–though he did not specify what he meant.
@JulieNBCNews asking you questions about the hearing date of #SAFEBanking is a sure sign that a bill has serious implications. pic.twitter.com/al1bxtgUCw
Don Murphy (@donmurphy12a April 27, 2020 HTML0)
The Secure and Fair Enforcement Banking Act (SAFE) is one of the most likely pieces of cannabis legislation to pass this session, even with a divided Congress and Republicans controlling the House. While some equity advocates criticized earlier versions, certain changes have encouraged them, showing that the coalition of supporters for this bill could grow in this session.
The bill is sponsored by Senators. Jeff Merkley and Steve Daines, along with Reps. Dave Joyce and Earl Blumenauer from the OR and MT respectively, would protect banks who work with state-legal marijuana businesses against federal penalties.
Last Congress there was some pushback on the standalone proposal. Equity advocates expressed concern that its passing would primarily benefit the large marijuana corporations while undermining efforts to enact a comprehensive legalization which addresses the harms of the drug war.
There seems to be consensus on a new approach that legislators have proposed: pass a SAFE Banking Act cleanly through the committee, and then bring it up for a vote where they can attach justice-focused changes and create a package called “SAFE Plus”.
The standalone version does include some changes that have been applauded by advocates, such as protections for Community Development Financial Institutions and Minority Depository Institutions that make commercial loan to minority-owned business.
The bill also provides mortgage loans backed by the federal government for marijuana workers, which was not included in previous versions.
The bill also includes revised data collection and reporting provisions that, according to advocates, will give more information on the barriers minorities, veterans, women and small businesses face in accessing financial services, and participating in the marijuana industry.
The law also clarifies the fact that financial protections are available for both hemp and marijuana businesses.
This is how stakeholders and advocates are reacting to a refiled SAFE Banking Act.
American Bankers Association
The ABA released a statement that said: “This bipartisan, commonsense bill, which was already passed by the House several times, will resolve the conflict between federal and state law, allowing banks to serve cannabis and cannabis related businesses authorized by the state.”
This bipartisan, commonsense bill will resolve the conflict between federal and state law, allowing banks to serve cannabis businesses and state-authorized cannabis businesses. It will also improve public safety.
American Bankers Association April 27, 2020 HTML0
The SAFE Banking Act will also improve public safety, taxation and financial transparency. National surveys have shown that a large majority of Americans are in favor of this bill, according to the association. “We urge Congress not to delay in considering this legislation.”
Cannabis Regulators of Color Coalition
Dasheeda Dawson said in a recent press release that she was “delighted” to see SAFE Banking Act reintroduced, with the changes they had been promoting. Dawson is the chairperson of CRCC. “However, there is still more to be done in order to create a level playing field for all. This is especially true for those who have been the most affected by prohibition and face high barriers to entry.
Dawson also proposed “relatively small changes” to the bill alone, including language that would prohibit financial institutions from automatically flagging a person’s account based on their prior marijuana conviction records.
She said that without this change, criminal records for marijuana will continue to be an important barrier for participation in the state-legal cannabis industries. This will disproportionately affect Black, Latinx, and Indigenous entrepreneurs. It could also result in federal interference with state licensing programs which have tried to create more diversity of ownership opportunities. These technical amendments could be a big help in providing commercial lending to minority-owned marijuana businesses.
Cat Packer, vice chair of the CRCC, said that there are “several technical changes that can be made in SAFE to make access to banking more FAIR.” The F in SAFE is what it stands for, by the way!
— Cat Packer April 27, 2020 HTML0
Credit Union National Association
Jim Nussle, CUNA’s President and CEO, said that the legislation offers state-legalized business owners safe mainstream options to meet their financial needs. We thank Senators Merkley, Daines, Representatives Joyce, and Blumenauer for introducing bipartisan legislation to both chambers. We will work hard to move the bills forward this Congress.
Troy Stang is the CEO of GoWest Credit Union Association. He added, “This is a crucial public safety issue in our communities and it is common sense legislation.”
Drug Policy Alliance
Maritza Perez-Medina, director of DPA’s office of federal affairs, said that the improvements to the SAFE Banking Act study and data collection sections are a welcomed addition to the bill. These minor changes to the bill ensure timely and comprehensive data collection to measure if banking services are provided in an equitable way.
She said that, “While much work remains to be done, and we remain neutral about the legislation,” the changes were an encouraging sign. As this legislation advances, more needs to be done to lower the barriers small marijuana businesses have to overcome in order to obtain commercial lending. It is impossible to compete with multi-state, large operators without this.
Perez Medina stated, “We look forward to working with stakeholders in order to improve this legislation so that it benefits communities who have been disproportionately affected by prohibition.”
Minority Cannabis Business Association
“MCBA has worked diligently over the past few years to improve this legislation, and we’re grateful that our suggestions were incorporated into the most recent text,” MCBA president Kaliko Castille stated. We believe that the final bill is a critical first step to ensure a more equal cannabis industry. We look forward to working with Republican and Democratic offices in order to address public safety concerns by passing this bipartisan bill, which is supported by small business owners across the country.
National Cannabis Roundtable
Saphira Galoob said, “The legislation is critical for public safety. It allows cannabis companies, which are currently forced into operating in a cash-heavy fashion, to bank their business like any other domestic industries.”
#SAFEBanking must include the full range of financial resources that are currently denied to domestic marijuana operators, such as institutional investments and the senior exchanges. We hope this crucial language will be added to the committee process. pic.twitter.com/UpnvUw5YMD
National Cannabis Roundtable April 26th, 2023
She said, “NCR is looking forward to the bill being considered by the Senate’s regular committee and working with those from both sides of Capitol Hill to bring this important bill to a successful conclusion.” By passing SAFE Banking, Congress could enhance public safety, crackdown on Chinese-backed illegal operations, support 38 states’ jobs with legal programs, create equal economic opportunities for American business, and provide equitable access to capital.
NORML
Morgan Fox, NORML’s Political Director, said in a recent press release that “Congress must pass SAFE Banking immediately if cannabis businesses hope to operate safely, transparently and in a way that is competitive with the current underground market.” It is irresponsible for the US financial system to exclude this heavily regulated sector. Congress’ failure to act every day puts small businesses at risk, puts regulators, law enforcement, and criminals at a disadvantage.
Fox stated that “the vast majority of Americans, across all political spectrums, support cannabis banking reform.” Even lawmakers from the states that have no regulated cannabis market, which is a rapidly decreasing number, should be able see the importance of passing this commonsense, narrowly tailored legislation. It will encourage small business growth and improve accountability.
Parabola Center for Law and Policy
Shaleen title, founder and director at the Parabola Center which is neutral about the bill, told Marijuana Moment the changes to the latest banking legislation “are minor.”
She said that even with the amendments, the bill could still cause more harm than benefit by increasing inequalities and leaving small businesses without bank accounts in a worse situation. “But minor changes and their impact are real. And more importantly, these changes show that sponsors are willing to listen and adapt. “The next step is to rally behind more improvements as the legislation progresses.”
U.S. Cannabis Council
Jessica Billingsley, Chair of USCC, said that the USCC “welcomes” today’s SAFE Banking Act. The bill offers vital protections to regulated cannabis businesses, including small businesses and entrepreneurs. It allows them to access financial services in a level playing field.
She said that federal law forced the $30+ billion cannabis business in America to operate almost exclusively with cash. As a result of this, dispensaries are now attractive targets for criminals with guns, and many lives have been lost. The status quo is only beneficial to armed robbers, illegal operators and themselves.
She added, “The bill has strong bipartisan support and is bicameral. We look forward to working with leaders of both chambers in order to ensure its passage.” We are grateful for the bipartisan support that the bill’s lead sponsors have provided in moving this important legislation forward.
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The Senate Banking Committee will again be the first obstacle to the bill’s passage. While the chairman had previously expressed his interest in moving forward with equity amendments, this week he stated that he was “skeptical about” measures used by bankers to influence regulations. He was able to give a date for when his panel might take up the legislation.
Senate Majority leader Chuck Schumer (D, NY) reiterates his commitment to advance the marijuana banking bill with criminal justice provisions, calling the larger effort to repair harms from the drug war “moral responsibility” of Congress.
Schumer stated that “right now, cannabis businesses are operating on cash only, which is not fair. It exposes them too many risks, and limits their growth opportunities.” “Congress shouldn’t be holding back job growth or entrepreneurs. It should promote them.”
To pass any reform this session, lawmakers are expected to focus their efforts on smaller marijuana measures, such as the banking bill, rather than a 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 to advance bipartisan legislation that would require studies on the medical potential for cannabis to help 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 the Senate for years, under both Democratic leadership and Republican leadership.
Schumer stated 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 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.
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.
In recent weeks there have been several cannabis reform proposals, especially in the run-up to last week’s 4/20 holiday.
Bipartisan legislators in both chambers, for example, reintroduced a bill on Thursday that would give insurance companies a safe harbor if they work with cannabis businesses licensed by the state.
Rep. Brian Mast, R-FL, introduced legislation last Thursday to protect Second Amendment rights for people who use marijuana legally in states. This would allow them to buy and possess firearms 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 expulsions.
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.
House Speaker pledges to give Marijuana Legalization bill a committee vote, GOP Congresswoman says
The article Marijuana Moment : Advocates and Industry Groups React to Marijuana Bank Bill Refiling as Key Senator Raised Early Concerns first appeared on Marijuana Moment .
