The American Bankers Association is renewing their call for passage of a bipartisan cannabis banking bill, which was re-filed last month.
The ABA, a few days before the Senate Banking Committee was scheduled to hold a hearing on marijuana to discuss the issue, sent a letter expressing “strong support” of the Secure and Fair Enforcement Banking Act.
This “important legislation” would bring certainty to a major issue that is a challenge in so many communities across the country and for the banks who serve them.
“The SAFE Banking Act is an urgently needed, and widely supported, bipartisan solution that will allow banks to handle not only the proceeds from both state-licensed cannabis businesses and the ancillary businesses–accountants, skilled trades, landlords, law firms, and other service providers–those businesses rely upon to operate, but also accept deposits from and make loans to employees of those businesses,” the letter says.
The measure, which has been passed by the House multiple times in recent sessions under Republican and Democratic control, has repeatedly stalled at the Senate. The Senate, this time, is leading the charge, beginning with the Banking Committee’s hearing on Thursday.
“Banks are prohibited from banking cannabis and ancillary businesses without fear of sanctions,” ABA stated. This industry operates primarily with cash. Not only is this a safety issue, but it also makes it difficult for law enforcement, regulators and tax collectors to effectively monitor the industry.
The association stated that it did not have a position regarding federal marijuana legalization, but that “member banks are in conflict with state and federal laws as local communities encourage them to bank cannabis business and federal law prohibits it.”
The ABA has been a consistent advocate for the SAFE Banking Act, with letters sent to Congress. polls that show public support for financial reform.
The latest letter stated that “the bipartisan, bicameral SAFE Banking Act” would provide legal and regulatory certainty for banks, and facilitate access to financial service for state-sanctioned marijuana businesses, while strengthening the abilities of financial institutions to detect illegal activity and the law enforcement agencies to detect it.
The SAFE Banking Act has received strong bipartisan support both in the House and Senate. ABA encourages all members of Congress to cosponsor the SAFE Banking Act. The ABA requests that these bills be considered quickly by the Senate Banking Committee and House Financial Services Committees through regular order and advocates for quick passage of Congress.
Senate Majority leader Chuck Schumer (DNY) said that he intended to bring the bill to the floor once it cleared committee, and then modify it to include equity provisions like expungements for previous marijuana convictions.
He said that Congress has a “moral obligation” to address the harms caused by the war on drugs.
Sherrod Brown, the chairman of the Senate Banking Committee (D-OH), told reporters in advance that senators would “move swiftly” to pass the Sens. Jeff Merkley, R-MT and Steve Daines, D-OR.
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Both sides of the aisle are pushing for urgent action to be taken on this standalone measure.
The SAFE Banking Act protects banks who work with state-legal marijuana businesses from being penalized. The version of the latest version has been modified in several ways, which have encouraged advocates.
This bill is seen as one of the most likely to pass this session, with Republicans controlling the House. Former top aide of Senate Majority leader Chuck Schumer (D-NY), recently wrote an opinion piece for Marijuana Moment explaining the new political dynamics that could boost the bill’s chances of passing this year.
The current makeup of Congress has led to some doubts about the feasibility of any cannabis reform. Senate Republicans have blocked a motion to move forward a bipartisan measure that would require studies on the medical potential for cannabis to help veterans suffering from chronic pain or PTSD.
Schumer stated last month that he is “disappointed,” that the SAFE Plus package, which included marijuana banking and expungements, 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.
Rep. Earl Blumenauer, D-OR, who is sponsoring a House version of SAFE Banking Act said that he believes it’s crucial that advocates and legislators align on any incremental proposal to end the war on drugs, warning that an “all or nothing” mentality.
New Jersey Governor signs bill to allow marijuana businesses to claim state tax deductions as a partial 280E workaround
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