WASHINGTON–For the fourth time, the House of Representatives has passed the SAFE Act, which provides protections to banks and credit unions that service state-legal marijuana businesses from being penalized by federal regulators.
The legislation, which has the backing of credit unions, passed by a vote of 321-101.
The bill was reintroduced by Rep. Ed Perlmutter (D-CO) and a long bipartisan list of cosponsors last month. It was taken up under a process known as suspension of the rules, which does not allow for amendments and requires a two-thirds supermajority to pass.
“The fact is that people in states and localities across the country are voting to approve some level of cannabis use, and we need these cannabis businesses and employees to have access to checking accounts, payroll accounts, lines of credit, credit cards and more,” Perlmutter said on the House floor. “This will improve transparency and accountability, and help law enforcement root out illegal transactions to prevent tax evasion, money laundering and other white collar crime. But most importantly, this will reduce the risk of violent crime in our communities.
“Even if you are opposed to the legalization of cannabis, you should support this bill,” Perlmutter continued. “American voters have spoken and continue to speak—and the fact is, you can’t put the genie back in the bottle. Prohibition is over.”
CUNA CEO Jim Nussle issued a statement of support for the bill.
"Today’s landmark vote will help credit unions keep their communities safe by providing state-legalizes businesses access to mainstream financial services," said Jim Nussle. "We offer our appreciation to Representatives Perlmutter, Stivers, Velázquez, Davidson and others who have worked on this bipartisan legislation for so long. There is more work to be done to get the SAFE Banking Act across the finish line. We are ready to work in the Senate to advance legislation on this issue to the President’s desk."
In the House, Rep. Patrick McHenry (R-NC) spoke in opposition to the legislation. “Regardless of your position on this bill, I do think the fact remains that cannabis is a prohibited substance under Schedule I of the Controlled Substances Act—and let me further state, by enacting this legislation, we’re effectively kneecapping law enforcement and legalizing money laundering,” said McHenry.
McHenry was the only lawmaker to rise against the bill on the floor, yielding all additional opposition time to other Republican members who actually spoke in support of it.
Governors Send Letter
Prior to the vote, the governors of 20 states and one U.S. territory—as well as bankers associations representing every state in the country and a coalition of state treasurers—sent letters to House leadership expressing support for the bill.
While the House has passee the legislation four times, the legislation never moved forward in the Republican-controlled Senate. Prospects may be better in the current Senate, given that Democrats hold the tie-breaking vote.
Hearings to Watch This Week
Meanwhile, both the House and the Senate are back in session this week for what CUNA’s chief advocacy office, Ryan Donovan, called a “busy week” that will include testimony by one credit union CEO before Congress.
On the agenda of the two houses of Congress are bills related to cannabis banking, statehood for Washington, D.C., the COVID-19 Hate Crimes Act, and more.
In addition to the mark-up of a number of bills by the House Financial Services Committee, Donovan said CUNA will be paying attention to a number of hearings this week, including:
Today
- House Committee on Small Business hearing on “Update on SBA’s Pandemic Response Programs”
- Senate Committee on Banking, Housing & Urban Affairs hearing on “An Economy that Works For Everyone: Investing in Rural Communities.” Bill Bynum, CEO of Hope Credit Union, will be among those testifying.
Thursday
Senate Committee on Banking, Housing & Urban Affairs hearing on “21st Century Communities: Capitalizing on Opportunities in the Clean Energy Economy.”