A GOP senator said that, while he supported a bipartisan cannabis banking bill, the Democratic leadership was generally uncooperative and he doubted its chances of passing.
Tommy Tuberville, R-AL, said he would vote “yes” on the Secure and Fair Enforcement Banking Act (SAFE), if the bill reaches the floor.
“We have to pass it, but Democrats control the Senate floor and we will never be able to do that,” said the senator who won his position after beating former U.S. attorney general Jeff Sessions in the primary election.
According to Alabama Today, Tuberville said to journalists last week that “a lot of people want to legalize cannabis completely, which is a different issue.” “But SAFE Banking is all about access to basic banking for businesses that are legally operating in the state where they operate,” said Tuberville.
He added: “Under the current federal law banks and credit unions cannot bank for legal marijuana businesses or businesses who provide services to legal Cannabis businesses.” “We have to protect the cash of people.”
The senator stated that he has been “in contact with people all over the nation who have worked with marijuana over the past few years and it is a public issue for people to store cash in their business [outside the traditional banking system].
He said, “We need to make it safe. And if medical marijuana will be legalized in Alabama (which is heading our way), then we must ensure that people are protected.” “That’s what the SAFE Banking Act aims to do, but it will be difficult to get this bill on the floor because [Senate majority leader Chuck Schumer, D-NY] isn’t very cooperative with Republicans.”
Schumer is a strong advocate of cannabis banking legislation. It’s unclear what Schumer means when he says that the majority leader is an obstacle to reform. However, it could be a reference to some Democrats wanting to add broader social justice provisions into the financial services bill. Some stakeholders are concerned that if they go too far, Republicans may oppose the bill and jeopardize its chances of passing.
The bill from Sens. The bill from Sens.
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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.
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 by Congress to repair the damage caused by the drug war.
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.
Brown said he was concerned that banking representatives would try to “weaken” bank rules or “undermine” regulation.
Some lawmakers, advocates, and stakeholders have suggested other changes they would like to see included in the cannabis bill, such as expanding protections for marijuana industry access to financial services 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 “inappropriate references about investments from China as a “misguided” attempt to push for amendements expanding the legislation.
Jacky Rosen, a Nevada senator, said recently that the SAFE Banking Act should be passed with a 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.
Sen. Cory Booker, D-NJ, said that lawmakers are trying to “resurrect the cannabis reform package. He acknowledged that the failure to progress a banking solution for the industry would “literally mean that hundreds of companies go out of business.”
Rep. Earl Blumenauer, D-OR, who is the lead sponsor of the House’s version of the SAFE Banking Act said that it was important for advocates and legislators to align on any incremental proposal to end the war on drugs, cautioning against an “all or nothing” mentality.
The American Bankers Association also recently reiterated its call for passage the legislation. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.
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Photo by Philip Steffan.
The article GOP senator backs Marijuana Banking Bill but doubts Democratic leadership will advance it first appeared on Marijuana Moment.
