The Senate GOP Marijuana Banking Bill's Sponsor and Key Chairman are at Odds over Next Steps

Two senators who are pushing for a bipartisan marijuana bank bill appear to disagree on what’s needed to pass the legislation through a committee.

In interviews conducted this week, Sherrod Daines (R) and Steve Daines (D) of the Senate Banking Committee (D-OH), the leading GOP sponsor for the Secure and Fair Enforcement Banking Act (SAFE), shared contradictory stories about the current state of the negotiations.

Brown told Politico he was entrusting Daines with securing more Republican support, and specifically getting additional members of his caucus sign on as co-sponsors for the SAFE Banking Act to codify this support.

Brown stated that “We won’t bring a bill up to the floor only to have [Minority leader Mitch McConnell, R-KY),” undercut it by 58 or even 59 votes. “He has done it many times.” We want Daines…to commit and sign the dotted-line on this, to really get members to cosponsor. If they are serious, they will co-sponsor.”

Daines says that it is not a lack in Republican support that’s at issue, but rather that Democratic members want to amend the bill that would violate the agreement he made with the chairman.

Daines said to Punchbowl News, Republicans are “ready” to move forward on the bill but Democrats “are changing it.” Daines added that he did not “see any positive yardage” from the bipartisan negotiations during the recent Fourth of Independence recess.

He did not specify the type of changes Democrats want, but the main argument over the legislation centers around section 10 of the SAFE Banking Act, which includes language that some Democrats, like Sen. Jack Reed, (D-RI), have flagged as being problematic. They argue that it would undermine banking regulations beyond the cannabis sector.

Brown told Politico: “It is a concern and Jack is as straight-forward in this area as he has been with everything else.” “We have to figure it out.”

The section is supported by conservatives, but removing it could undermine some of the bipartisanship that was behind the bill when introduced.

Sherrod brown told Politico on Tuesday that he is waiting for Steve Daines’s confirmation of GOP support before moving forward with SAFE Banking.

Daines said that the ball did not move during July break, and there are still issues.

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Brendan Pedersen July 11th, 2023 HTML0

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 previously that he is “open” for adding expungements, as proposed by Senate majority leader Chuck Schumer (DNY).

The window for scheduling a summer marking up in the Senate Banking Committee where the bill was first heard in May is slowly closing.

A spokesperson for Brown told Marijuana Moment in a Wednesday statement that the Committee was working toward a vote on the SAFE Banking Act. “Senator Brown is committed to working with Banking and Housing Committee Members on both sides to find a way forward for SAFE Banking and the other committee priorities.”

Marijuana Moment contacted Daines’ office to clarify the differences in the views of the two senators on next steps. A representative was not available.

Politico reported that the GOP’s lawmaker office said “Senator Daines, Chairman Brown and Senator Daines had an agreement” when Brown reintroduced his bill. Now Democrats are demanding change.

The spokesperson stated that “we have enough Republican voters to pass it, but Democrats are constantly moving the goalposts.”

Schumer stated in a Dear Colleague Letter that was sent out on Sunday that SAFE banking remains a legislative goal. He also admitted that the task “will not easy” and will require GOP buy-in.

Sen. John Cornyn, R-TX, stated on Monday that majority leader Schumer’s summer agenda was too ambitious. He also expressed serious doubts about marijuana banking, among a list other legislative items identified by Schumer in the letter.

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Schumer also recently spoke to a cannabis industry leadership, who approached him last month at an unrelated conference. According to the entrepreneur, Schumer is “confident” that the cannabis banking bill will pass.

, for his part, said last month he was a “yes”. He doubts the Democratic leadership’s ability to deliver on their promise.

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.

In May, 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 an 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 working to “resurrect the cannabis reform package. He acknowledged that the failure to advance an industry banking solution “literally” means hundreds of businesses will 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 (ABA), which also renewed its call recently for the passage the legislation. All 50 state chapters of the ABA did the same. Insurance and union organizations also wrote to Congress.

Monday marked the 10th anniversary of the introduction the first version of the SAFE Banking Act.