WASHINGTON–The House is expected to take action this week on credit union-supported legislation that would, among other things, allow financial institutions to serve cannabis businesses in states where it has been approved without fear of federal prosecution.
The Secure and Fair Enforcement (SAFE) Banking Act has bipartisan support in addition to that from financial institutions, although some groups are pressing for additional changes. The bill has been before Congress in various forms for the past six years.
Majority Leader Steny Hoyer (D-MD) announced the scheduling of the vote in remarks on the House floor late last week, according to Marijuana Moment, which reported the bill is expected to be on the House floor on Wednesday.
No amendments will be allowed on the floor, but the bill’s sponsor, Rep. Ed Perlmutter (D-CO) is moving to make a series of changes ahead of the vote in order to broaden its appeal to GOP members, according to Marijuana Moment. That includes adding language clarifying that banks that service hemp and CBD business as well as marijuana firms would be protected from being penalized by federal financial regulators.
The revised bill also stipulates that financial regulators can’t target certain industries like firearm dealers without a valid reason.
The legislation passed out of committee earlier this year and will need 290 votes to pass the House.
CUNA Pushes For Passage
Late last week CUNA joined with several financial trade organizations to call on House leadership to finally move forward with the SAFE Act.
CUNA repeated it takes no position on legalizing or decriminalizing cannabis, but strongly supports removing barriers for credit unions to serve such businesses where legal.
“The SAFE Banking Act of 2019 provides a mechanism for the cannabis industry and its service providers to deposit their cash in regulated financial institutions, which allows our members to meet the needs of their communities and helps those communities reduce cash-motivated crimes, increase the efficiency of tax collections, and improve the financial transparency of the cannabis industry,” the letter reads. “Without congressional action, a significant portion of economic activity, including those businesses with only indirect connections to the cannabis industry, such as vendors, suppliers, and utility companies, risk being marginalized from the financial system in states with legal cannabis industries.”
CUNA has testified twice in support of the bill, before the House Financial Services Committee in February and before the Senate Banking Committee in July.