U.S. House Of Representatives Approves Cannabis Banking Reform In Larger COVID-19 Relief Package

Lawmakers voted 208-199 (23 not voting) in favor of coronavirus “HEROES” relief package

DISTRICT OF COLUMBIA: On Friday evening (5/15/20) lawmakers in the United States House of Representatives passed additional coronavirus relief legislation to provide continued economic and government support to the country. The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act includes the language of the SAFE Banking Act, which would prevent federal financial regulators from punishing financial institutions that provide services to state-legal cannabis businesses.

Since the onset of the COVID-19 pandemic, cannabis businesses across the country have been deemed essential and continue to operate. However, many of these businesses still lack access to the same financial services that are granted to every other industry in the United States. Because it is possible that coronavirus can be transmitted on currency — placing private industry and government workers at risk when handling large amounts of cash — allowing the cannabis industry to access banking services is now more crucial than ever. This policy change would also ensure that small and minority-owned businesses can access the financial assistance designed for them in many state programs.

The HEROES Act, which includes provisions to allow banks and financial institutions to provide services to the cannabis industry without fear of criminal prosecution, will now head to the Senate for consideration. In September 2019, the House of Representatives voted in favor of the SAFE Banking Act, but the legislation has since stalled in the Senate.

Statement from Steve Hawkins, executive director at the Marijuana Policy Project:
“I’m encouraged that the House recognizes the urgency of this issue and has taken this strong and necessary position. We thank Chairwoman Maxine Waters and Rep. Ed Perlmutter for their leadership on the issue.

“Continuing to exclude the cannabis industry from accessing basic and essential financial services during this time will result in more harm than good. Not only will it make the country’s economic recovery that much harder, but the provisions intended to help minority-owned businesses would continue to be absent within the industry.”

Statement from Don Murphy, director of federal policies at the Marijuana Policy Project:
“In light of the public health and public safety benefits of this specific change in policy, the Senate has good reason to pass this language into law. This is a change in policy that the banks are asking for even more than the cannabis companies. We urge the Senate Banking Committee to adopt the SAFE Banking provisions to ensure financial institutions can provide basic banking services to businesses that are compliant with state law.”

Read more

Read full article @ MPP