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Hickenlooper, Bennet Push for SAFE Banking Act to be Included in Bipartisan Innovation and Competition Bill

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Bipartisan group of Senators call for cannabis businesses to be able to access safe and secure banking services

DISTRICT OF COLUMBIA: U.S. Senators John Hickenlooper and Michael Bennet today joined their colleagues in a bipartisan letter urging congressional leadership to include the Secure and Fair Enforcement (SAFE) Banking Act of 2021 in the final version of the Bipartisan Innovation and Competition legislation currently being negotiated between the House and the Senate. 

The SAFE Banking Act would allow state-legal cannabis businesses to access banking services. Currently most legal cannabis businesses have to operate in all-cash, which has led to ongoing threats of robbery and assault for business owners and employees. In Denver, cannabis businesses make up less than 1 percent of all local businesses, but accounted for 10 percent of reported business burglaries from 2012 to 2016.

“The SAFE Banking Act, as included in the House-passed America COMPETES Act, would allow banks, credit unions, and other financial institutions to offer banking services to legally-operating cannabis businesses without fear of punishment by federal regulators,” wrote Hickenlooper, Bennet, and the lawmakers. “Allowing cannabis businesses operating legally and in compliance with state law to access financial services without federal reprisal would address public safety and compliance challenges, helping communities reduce cash-motivated crimes.”

The SAFE Banking Act has passed the House six times–most recently as an amendment to its version of the bipartisan competition bill. This letter, sent to Senate Leaders Chuck Schumer and Mitch McConnell, and Speaker Nancy Pelosi and Leader Kevin McCarthy in the House, urges leadership to ensure the text of that amendment remains in the final conference version of the Bipartisan Innovation and Competition Bill to be considered by both the House and the Senate.

Hickenlooper is a member of the Conference Committee that will finalize the Bipartisan Innovation and Competition Bill. In the first public hearing today, Hickenlooper spoke about his priorities for the legislation, including the need to modernize our banking laws so that the cannabis industry isn’t operating with the challenges of the current all-cash system.

Full text of the letter can be found HERE and below:

May 12, 2022

Dear Leader Schumer, Leader McConnell, Speaker Pelosi, and Leader McCarthy,

We write to request that the final conferenced American competitiveness, jobs, and innovation package retain the text of the Secure and Fair Enforcement Banking Act (SAFE Banking Act) of 2021 included in the House of Representatives’ American COMPETES Act of 2022. The House has now passed the SAFE Banking Act six times, including most recently as an amendment to its version of the bipartisan competition bill, and we ask you to ensure that the text of that amendment remains in the final conferenced version of the bill to be considered by both the House and the Senate.

The SAFE Banking Act, as included in the House-passed America COMPETES Act, would allow banks, credit unions, and other financial institutions to offer banking services to legally-operating cannabis businesses without fear of punishment by federal regulators. Currently, thirty-seven states and the District of Columbia have legalized marijuana for medical use, and eighteen states and the District of Columbia allow adult recreational use. As a result, the cannabis industry has become a powerful job creator and a significant generator of tax revenue. However, financial institutions are often reluctant to transact with cannabis-related businesses, even in states that have some form of legalized cannabis, due to legal and regulatory risks arising from inconsistent federal and state laws. Allowing cannabis businesses operating legally and in compliance with state law to access financial services without federal reprisal would address public safety and compliance challenges, helping communities reduce cash-motivated crimes. Law enforcement organizations have publicly testified before Congress about these cash-related safety risks, including theft, robbery, and serious violence perpetrated against employees responsible for conducting what should be routine business operations.2 The same law enforcement organizations also have testified about the importance of moving these large amounts of cash in the cannabis industry into the banking system, where accounts are monitored in accordance with existing federal anti-money laundering laws and the Bank Secrecy Act. Enacting the SAFE Banking Act via the jobs and competitiveness legislation before us would support a rapidly growing industry that creates jobs, fosters innovation, supports small businesses, and raises revenue in states that have chosen to legalize cannabis, while reducing safety risks to industry employees and the public alike.

The House of Representatives already added the SAFE Banking Act as an amendment to the America COMPETES Act by a bipartisan a vote of 262-168, and on February 4, 2022, passed the amended America COMPETES Act by a bipartisan vote of 222 to 210. The standalone legislation on which the amendment is based previously passed the House of Representatives 321-101, garnering the support of more than three-quarters of the chamber and a majority of the members of each party. The bill’s list of co-sponsors is also bipartisan in both the House and the Senate. Given the demonstrated broad support for this measure, we ask you to ensure that the text of the SAFE Banking Act remain in the forthcoming final conferenced version of the jobs and competitiveness bill when it comes to the House and Senate for final votes. This will help cannabis-related businesses, support innovation, create jobs, and strengthen public safety in our communities. We look forward to working with you on this important issue.

Sincerely,

Senators Merkley, Rosen Lead Bipartisan Effort to Improve Safety for Legal Cannabis Businesses

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Bipartisan Group of Senators Calls to Include the SAFE Banking Act in Compromise House-Senate Competitiveness Bill

DISTRICT OF COLUMBIA: Oregon’s U.S. Senator Jeff Merkley and Senator Jacky Rosen (D-NV) led 22 of their colleagues in a bipartisan effort requesting that congressional leadership include the Secure and Fair Enforcement (SAFE) Banking Act of 2021, which would allow state-legal cannabis business to access banking services, in the final version of competitiveness legislation currently being negotiated between the House and Senate. Passage of the SAFE Banking Act, which Merkley has introduced since 2015, would help ensure that legal cannabis businesses do not have to operate in all-cash—the current reality for thousands of small businesses across the country, which has led to ongoing threats of robbery and assault for business owners and employees. 

The letter sent to Senate Leaders Chuck Schumer and Mitch McConnell, and Speaker Nancy Pelosi and Leader Kevin McCarthy in the House, notes the SAFE Banking Act has passed the House six times—most recently as an amendment to its version of the bipartisan competition bill, and urges leadership to ensure the text of that amendment remains in the final conferenced version of the bill to be considered by both the House and the Senate.

“The SAFE Banking Act, as included in the House-passed America COMPETES Act, would allow banks, credit unions, and other financial institutions to offer banking services to legally-operating cannabis businesses without fear of punishment by federal regulators,” wrote the lawmakers. “Currently, thirty-seven states and the District of Columbia have legalized marijuana for medical use, and eighteen states and the District of Columbia allow adult recreational use. As a result, the cannabis industry has become a powerful job creator and a significant generator of tax revenue. However, financial institutions are often reluctant to transact with cannabis-related businesses, even in states that have some form of legalized cannabis, due to legal and regulatory risks arising from inconsistent federal and state laws.

“Allowing cannabis businesses operating legally and in compliance with state law to access financial services without federal reprisal would address public safety and compliance challenges, helping communities reduce cash-motivated crimes,” they continued. “Law enforcement organizations have publicly testified before Congress about these cash-related safety risks, including theft, robbery, and serious violence perpetrated against employees responsible for conducting what should be routine business operations.1 The same law enforcement organizations also have testified about the importance of moving these large amounts of cash in the cannabis industry into the banking system, where accounts are monitored in accordance with existing federal anti-money laundering laws and the Bank Secrecy Act. Enacting the SAFE Banking Act via the jobs and competitiveness legislation before us would support a rapidly growing industry that creates jobs, fosters innovation, supports small businesses, and raises revenue in states that have chosen to legalize cannabis, while reducing safety risks to industry employees and the public alike.”

Senators Merkley and Rosen have repeatedly advocated for the bipartisan SAFE Banking Act and have been a vocal advocates and leaders for federal action that treats Oregon’s and Nevada’s legally-operating cannabis businesses fairly.

In addition to Senators Merkley and Rosen, the letter is signed by Senators Steven Daines (R-MT), Cynthia Lummis (R-WY), Gary Peters (D-MI), Tammy Duckworth (D-IL), Angus King (I-ME), Michael Bennet (D-CO), Mark Kelly (D-AZ), Dan Sullivan (R-AK), Kevin Cramer (R-ND), Martin Heinrich (D-NM), Ben Ray Lujan (D-NM), Patty Murray (D-WA), Catherine Cortez Masto (D-NV), Tim Kaine (D-VA), Robert Menendez (D-NJ), Lisa Murkowski (R-AK), Mazie Hirono (D-HI), Kyrsten Sinema (D-AZ), Alex Padilla (D-CA), Patrick Leahy (D-VT), John Hickenlooper (D-CO), and Chris Coons (D-DE).

Full text of the letter can be found here and follows below:

May 12, 2022

Dear Leader Schumer, Leader McConnell, Speaker Pelosi, and Leader McCarthy,

We write to request that the final conferenced American competitiveness, jobs, and innovation package retain the text of the Secure and Fair Enforcement Banking Act (SAFE Banking Act) of 2021 included in the House of Representatives’ American COMPETES Act of 2022. The House has now passed the SAFE Banking Act six times, including most recently as an amendment to its version of the bipartisan competition bill, and we ask you to ensure that the text of that amendment remains in the final conferenced version of the bill to be considered by both the House and the Senate.

The SAFE Banking Act, as included in the House-passed America COMPETES Act, would allow banks, credit unions, and other financial institutions to offer banking services to legally-operating cannabis businesses without fear of punishment by federal regulators. Currently, thirty-seven states and the District of Columbia have legalized marijuana for medical use, and eighteen states and the District of Columbia allow adult recreational use. As a result, the cannabis industry has become a powerful job creator and a significant generator of tax revenue. However, financial institutions are often reluctant to transact with cannabis-related businesses, even in states that have some form of legalized cannabis, due to legal and regulatory risks arising from inconsistent federal and state laws. Allowing cannabis businesses operating legally and in compliance with state law to access financial services without federal reprisal would address public safety and compliance challenges, helping communities reduce cash-motivated crimes. Law enforcement organizations have publicly testified before Congress about these cash-related safety risks, including theft, robbery, and serious violence perpetrated against employees responsible for conducting what should be routine business operations.2 The same law enforcement organizations also have testified about the importance of moving these large amounts of cash in the cannabis industry into the banking system, where accounts are monitored in accordance with existing federal anti-money laundering laws and the Bank Secrecy Act. Enacting the SAFE Banking Act via the jobs and competitiveness legislation before us would support a rapidly growing industry that creates jobs, fosters innovation, supports small businesses, and raises revenue in states that have chosen to legalize cannabis, while reducing safety risks to industry employees and the public alike.

The House of Representatives already added the SAFE Banking Act as an amendment to the America COMPETES Act by a bipartisan a vote of 262-168, and on February 4, 2022, passed the amended America COMPETES Act by a bipartisan vote of 222 to 210. The standalone legislation on which the amendment is based previously passed the House of Representatives 321-101, garnering the support of more than three-quarters of the chamber and a majority of the members of each party. The bill’s list of co-sponsors is also bipartisan in both the House and the Senate. Given the demonstrated broad support for this measure, we ask you to ensure that the text of the SAFE Banking Act remain in the forthcoming final conferenced version of the jobs and competitiveness bill when it comes to the House and Senate for final votes. This will help cannabis-related businesses, support innovation, create jobs, and strengthen public safety in our communities. We look forward to working with you on this important issue.

Sincerely,

Senator Murray Pushes for Passage of SAFE Banking Act

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“It makes absolutely no sense that legal cannabis businesses are being forced to operate entirely in cash. It’s dangerous—and sometime even fatal—for the employees behind the register, but this situation is also completely preventable.” — Senator Murray

DISTRICT OF COLUMBIA:  U.S. Senator Patty Murray (D-WA), held a press conference in Tukwila on April 20th, to discuss the urgent need to pass the Secure and Fair Enforcement (SAFE) Banking Act in order to update federal cannabis banking regulations and build safer communities in Washington state. During the event, Senator Murray outlined the path forward for the SAFE Banking Act and affirmed her commitment to getting this legislation signed into law. Of note, Senator Murray—is a key negotiator and member of the conference committee which will negotiate the differences between the Senate-passed United States Innovation and Competition Act (USICA) and the House-passed America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act. The SAFE Banking Act was included in the House-passed COMPETES Act, but not the Senate-passed USICA. Senator Murray announced that she would work to ensure the final bill negotiated by the House and Senate includes the SAFE Banking Act. 

“It makes absolutely no sense that legal cannabis businesses are being forced to operate entirely in cash. It’s dangerous—and sometime even fatal—for the employees behind the register, but this situation is also completely preventable,” said Senator Murray. “I’ve been pushing the federal government—particularly my Republican colleagues—to catch up with Washington state. I am working to update our laws so that these legal small businesses have a safe way to do business. I am urging every one of my colleagues to come together so that we can finally pass the SAFE Banking Act.”

“Over in the other Washington, we have gotten a lot of good bipartisan work done in recent months and weeks: The Bipartisan Infrastructure Law, a major government funding package, a bill to strengthen supply chains and boost manufacturing, badly-needed postal reform to keep USPS solvent, and a whole lot more. I want us to make 2022 the year we send SAFE Banking to President Biden’s desk—and I believe we can do it.”

During the event, Senator Murray was joined by Washington State Treasurer Mike Pellicciotti and Shea Hynes, a local cannabis store owner.

To address the safety concerns resulting from these state legal businesses being shut out of banking services, the SAFE Banking Act would prevent federal banking regulators from:

  • Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as an lawyer or landlord providing services to a legal cannabis business);
  • Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
  • Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
  • Taking any action on a loan to an owner or operator of a cannabis-related business.

The bill also creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services. The bill also provides protections for hemp and hemp-derived CBD related businesses.

The bill would require banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational cannabis policies.

SAFE Banking Act Reintroduced as Momentum for Cannabis Reform Continues to Grow

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Landmark, bipartisan legislation passed U.S. House multiple times in last two years

DISTRICT OF COLUMBIA: U.S. Rep. Ed Perlmutter (CO-07) reintroduced his landmark legislation to reform federal cannabis laws and reduce the public safety risk in communities across the country. The bipartisan Secure and Fair Enforcement (SAFE) Banking Act of 2021 – authored by Perlmutter and sponsored by Reps. Nydia M. Velázquez (D-NY-07), Steve Stivers (R-OH-15), and Warren Davidson (R-OH-08) and cosponsored by more than 100 members – would allow marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system. The SAFE Banking Act is seen as the first of many cannabis reforms Congress needs to address.

Forty-seven states, four U.S. territories, and the District of Columbia – representing 97.7 % of the U.S. population – have legalized some form of recreational or medical marijuana, including CBD. Yet current law restricts legitimate licensed marijuana businesses from accessing banking services and products, such as depository and checking accounts, resulting in businesses operating in all cash. This is a serious public safety risk for our communities, inviting theft, robberies, burglaries, or worse, as Colorado saw with the murder of Travis Mason in June 2016 and Michael Arthur in Portland, Oregon in December 2020.

“The genie is out of the bottle and has been for many years. Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long, and it is the responsibility of Congress to step up and take action to align federal and state laws for the safety of our constituents and communities. The public safety need is urgent, and a public health and economic need has also emerged with the pandemic further exacerbating the cash-only problem for the industry,” said Congressman Perlmutter. “In many states, the industry was deemed essential yet forced to continue to operate in all cash, adding a significant public health risk for businesses and their workers. As we begin our economic recovery, allowing cannabis businesses to access the banking system would also mean an influx of cash into the economy and the opportunity to create good-paying jobs. Thank you to Reps. Velázquez, Stivers and Davidson for their continued support and input on the bill, and I look forward to working with Senators Merkley and Daines to get the SAFE Banking Act passed in the Senate and signed into law.”

“The cannabis industry has been operating with great success, with many of these businesses deemed essential as the coronavirus pandemic took hold,” said Congresswoman Velázquez. “However, without the ability to safely utilize the banking system, cannabis-related businesses are left behind and stuck resorting to tactics that can threaten public safety and economic success. That’s why I am proud to join to Reps. Perlmutter, Stivers, and Davidson in introducing the SAFE Banking Act, to allow these business in states that have legalized cannabis to access to the banking system, just as any other business currently enjoys. Doing so will help create jobs in communities throughout America, while stimulating the economy as we recover from the fallout of the pandemic.”

“We have a responsibility to legislate for the reality we live in, and the reality is that legal businesses in thirty-three states, including Ohio, are being denied access to the banking system and forced to assume huge risks as a result of operating solely in cash,” Congressman Stivers said. “The SAFE Banking Act is about keeping people safe, something that 321 of my colleagues recognized last year. I look forward to seeing this bill make it all the way to the President’s desk this Congress.”

“I’m excited we’re reintroducing SAFE Banking, again with bipartisan support. This bill is an important hedge against financial cancellation, and it will protect businesses and industries that find themselves out of favor with the latest trends of the day,” said Congressman Davidson. “Today we’re talking about banking cannabis, hemp, and firearms, but tomorrow there could be another industry that has its access to the banking system threatened by statute or by public opinion. With SAFE Banking, as long as its legal in the jurisdiction, no bank should be compelled to cancel their customers by a mob saying, ‘You aren’t going to bank THOSE people are you?’ Sadly, that has already happened too often in American history and it must end.”

“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment. That means we can’t keep forcing legal cannabis businesses to operate entirely in cash—a nonsensical rule that is an open invitation to robbery and money laundering,” said Senator Merkley (D-OR). “Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”

“The ‘SAFE Banking Act’ will help Montana small businesses, create jobs, boost local economies, and improve public safety,” stated Senator Daines (R-MT). “I’m glad to be working on this bipartisan legislation to provide certainty for small businesses in Montana. Montana business owners should have the ability to freely use banks, credit unions and other financial institutions without the fear of punishment.”

In the 116th Congress, 206 members cosponsored the SAFE Banking Act and it passed the U.S. House in a broad bipartisan vote of 321 to 103, with 91 Republicans and one Independent voting in support. The bill also passed as part of the Heroes Act, an earlier COVID relief package which was approved by the House on two separate occasions. In February 2019, the SAFE Banking Act prompted the first-ever congressional hearing on the issue of cannabis banking.

The SAFE Banking Act provides protections from money laundering laws for any proceeds derived from these state-legal marijuana businesses. This will get cash off the streets and into the financial system which is built to root out fraud and illicit activity. This bill also includes protections for hemp and hemp-derived CBD related businesses, which still struggle in accessing financial services despite the legalization of hemp in the 2018 Farm Bill. The current version of the bill has been updated slightly to include minor technical changes to the safe harbor, strengthened hemp provisions, and other technical updates.

The U.S. cannabis industry continues to grow at a rapid rate, with the current value estimated at $17.7 billion, a substantial amount of which remains unbanked. As of January 2021, the legal cannabis industry supports 321,000 jobs across the country. Over the 2018-2028 period, job growth in this market is projected to climb 250%, the fastest rate for any sector in the U.S. Bringing in this cash will make the industry safer and give banks and credit unions more capital to lend during the economic recovery as a result of the COVID-19 pandemic.