Senate Majority leader Chuck Schumer (DNY) said that passing a marijuana bank bill was one of his legislative goals for the rest of the year, as Congress returns from its August recess. But he is “under no illusions” that cannabis reform and other victories can be achieved without bipartisan support.
In a Dear Colleague note circulated Friday, Schumer lauded the achievements of Democrats in the first half year. He also said that recess gave lawmakers an opportunity to “talk with our constituents directly” about their progress. The work will continue once Congress reconvenes in this month.
The majority leader stated that “in the remaining months of the year, we have the opportunity to advance legislation on several critical issues.” He listed 10 priorities. “Safeguarding cannabis banking,” he said, was the second priority, just after “lowering insulin and prescription drug costs.”
He’s referring to the Secure and Fair Enforcement Banking Act (SAFE), a bipartisan measure that awaits committee action before it can potentially advance to the floor.
The U.S. Department of Health and Human Services is now recommending marijuana be moved from Schedule I into Schedule III of Controlled Substances Act. This move would, amongst other things, allow state-licensed cannabis business to claim federal tax deductions.
Schumer’s letter will be familiar to those who have followed this issue, as it was also a top priority when he outlined his summer agenda in July. The SAFE Banking Act was not passed at that time due to disagreements between senators about a section of the bill that dealt with broader banking regulations.
Schumer, at a late-July press conference before the lawmakers went on recess, said that Senators were “making progress” in bipartisan discussions about the legislation, and predicted a “very productive fall in Senate.”
He said that the bill was “always a top priority” for him. “There’s lots to do once we return.”
Both Dear Colleague letters emphasize the importance of bipartisan support to advance the measure.
Schumer’s latest message to his colleagues stated that “Finding a compromise is not easy. But our efforts have resulted in significant accomplishments.” “I want to thank you all for your hard work on a variety of issues. We need to keep working with good faith in order achieve more.”
The SAFE Banking Act currently has 42 sponsors, which is nearly half the Senate. Eight Republicans and three Independents are also part of this group. The reform has a bipartisan nature, as earlier versions have been passed by the House several times. The issue is Section 10. Certain Democrats are concerned that it 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’s not clear if there was any progress made during the recess in reaching an agreement to allow the bill to pass through the Senate Banking Committee.
Insiders claim that the measure, in its current form as a stand-alone, has enough Republican support to pass the Senate with 60 votes.
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Sherrod Daines (R) and Sherrod Daines (D) of the Senate Banking Committee, who are the main co-sponsors of the SAFE Banking Act, sparred about the next steps in the lead up to the August recess. Brown insists that Daines must secure more GOP sponsors, but Daines says that Republicans are ready to pass the bill as agreed upon.
Daines also warned against trying to expand the measure to include social justice reforms, which progressives would love to add. However, his office told Marijuana Moment that the senator was “open” about adding the expungements language as proposed by Schumer.
In July, the American Trade Association for Cannabis and Hemp, along with other trade groups representing marijuana business in 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.
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.
Sen. Cory Booker, (D-NJ), said that legislators are trying to “resurrect the cannabis reform package“, acknowledging that the failure to advance an industry banking fix “literally” means that hundreds 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 for the passage the legislation, has done the same. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.
New Hampshire Marijuana Legalization Commission takes shape, with first meeting to consider state-run reform model set for next week
The post Schumer Renews His Push for ‘Safeguarding Marijuana Banks’, But Stresses the Need for Bipartisan Support first appeared on Marijuana Moment.
