WASHINGTON–New legislation has been introduced in Congress to address issues related to banking cannabis businesses. HR 1595, the Secure and Fair Enforcement (SAFE) Banking Act of 2019 has bipartisan support and is cosponsored by Rep. Ed Perlmutter (D-CO), Denny Heck (D-WA), Warren Davidson (R-OH), and Steve Stivers (R-OH).
As credit unions have sought in several congresses, the bill allows financial institutions to serve marijuana-related businesses in those states with existing regulatory structures to access the banking system. Both Perlmutter and Heck, who hail from states that were among the first to legalize marijuana, have introduced similar legislation in prior sessions of Congress. As CUToday.info reported earlier, the bill follows a hearing on cannabis banking in mid-February.
One change in the newest version of the legislation is it adds additional protections for ancillary businesses, such as real estate owners, accountants, and other vendors who may directly or indirectly provide services to a cannabis business.
The legislation proposes to resolve a conflict between the federal Controlled Substances Act, under which cannabis remains illegal, and the laws in states that have legalized pot. As CUToday.info has reported extensively, most credit unions have avoided providing banking services to marijuana businesses, but some have put together extensive programs for doing so.