WASHINGTON–Federal legislation that would allow financial institutions to serve cannabis businesses could make a comeback in the current Congress.
Supporters of the Secure and Fair Enforcement Banking (SAFE) Act, including credit unions, were deflated in the prior session of Congress after the bill, which has strong bipartisan support, was included in the National Defense Authorization Act in late 2021. But it was dropped from the final bill that went to the president for his signature.
The SAFE Act, which would permit credit unions and other financial institutions to serve cannabis-related businesses in states in which it has been made legal, has passed the House but struggled in the Senate, where one senator’s opposition has often derailed it.
But now the bill could be back, according to numerous reports.
NAFCU VP-Legislative Affairs Brad Thaler said the biggest reason is the retirement announcement by Rep. Ed Perlmutter (D-CO). Perlmutter, who represents a state where marijuana use has long been legalized, has been a lead sponsor in the House of the SAFE Act, but recently announced he will not run for re-election.
“I think that adds an extra impetus for him and his allies to get it done,” said Thaler, “particularly because the Democratic leadership wants to see it addressed.”
Thaler noted there are “bigger picture” items in front of Congress, but also reminded the SAFE Act has broad support in Congress.
Acknowledging he doesn’t have any special insights into the fate of the legislation, Thaler added, “It’s the kind of thing that could be on the table and included in an omnibus package.”
Bill Passes in Mississippi
Separately, Mississippi has become the latest state to pass a medical marijuana bill and send it to the governor for a signature.
The state’s House and Senate passed the final version of Senate Bill 2095, which will allow people to use marijuana for medical reasons. The bill allows patients to buy three ounces of cannabis per month, with purchases limited to 3.5 grams of cannabis flower or one gram of cannabis concentration per day.
The bill also adds a 7% sales tax and 5% excise tax on cannabis.