House leadership confirmed on Friday that a bipartisan marijuana banking bill will receive a floor vote next week despite objections from several leading advocacy groups who want broader justice-oriented cannabis reforms to advance before what they see as an industry-focused proposal.
The Secure and Fair Enforcement (SAFE) Banking Act, which cleared the Financial Services Committee in March, will be voted on through a process known as suspension of the rules, requiring two-thirds of the chamber (290 members) to support it for passage.
Majority Leader Steny Hoyer (D-MD) announced the scheduling of the vote in remarks on the House floor on Friday morning.
“We will consider several bills under suspension of the rules, including H.R. 1595, the SAFE Banking Act of 2019, as amended.”
A staffer for his office told Marijuana Moment that they “expect it on the 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 broader its GOP appeal. 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.
“After six years of working on this bill, the SAFE Banking Act will go a long way in providing certainty for financial institutions to work with cannabis businesses and getting cash off our streets to make our communities safer,” Ashley Verville, communications director for Perlmutter, told Marijuana Moment following Hoyer’s announcement.
“We are very pleased that the broad support for this much-needed reform has finally led to a vote,” Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment. “Small businesses cannot afford to delay access to financial services, and every day that traditional lending and banking is denied to the cannabis industry is another day that marginalized communities will continue to be left behind by the opportunities created in legal cannabis markets.”
“The time to act is now, and success next week will only improve our chances for more comprehensive reforms in the future,” he said.
Neal Levine, CEO of the Cannabis Trade Federation, echoed that point.
“We applaud the House for taking up this vital piece of cannabis policy reform that will greatly increase public safety within the markets we operate, while helping to address some of the challenges that we face regarding equity,” he said.
While advocates initially expected a floor vote to be scheduled prior to the summer recess, that didn’t materialize. Hoyer announced last week that he intended to get a vote before the end of September.
— House Press Gallery (@HouseDailyPress) September 20, 2019
The announcement sparked a debate within advocacy circles, however. Groups including the ACLU, Human Rights Watch (HRW) and Drug Policy Alliance (DPA) wrote a letter urging leadership to delay the vote on banking—legislation viewed as primarily favorable to the industry—until comprehensive marijuana reform is passed first.
“This is disappointing news,” Queen Adesuyi, policy coordinator for DPA, told Marijuana Moment about Hoyer’s vote announcement. “We will continue to talk with leadership, members, and allies on next steps.”
While Democrats have largely embraced marijuana reform, including the banking bill, frustration over the order in which the House tackles cannabis legislation has led to some dissent within the party and its constituencies, potentially jeopardizing the chances that the SAFE Banking Act will garner the required 290 votes. For example, Rep. Alexandria Ocasio-Cortez said on Thursday that she may vote against the bill if the chamber doesn’t first tackle social equity issues.
“She feels strongly that addressing racial justice should be the first priority,” a staffer for the congresswoman told Marijuana Moment.
Groups that backed delaying the vote have yet to decide on next steps since the scheduling announcement.
DPA Director of National Affairs Michael Collins told Marijuana Moment that “no decision has been made” in terms of whether the organization will urge lawmakers to vote against the bill on the floor without broader reform measures advancing first.
Jasmine Tyler, advocacy director for HRW’s U.S. program, said “we actually haven’t gotten that far.”
“Pushing for delay still,” she said.
Late on Friday, Hoyer’s office formally listed the planned vote on the SAFE Banking Act on next week’s floor calendar.
Lawmakers such as House Financial Services Chair Maxine Waters (D-CA) and Perlmutter told Marijuana Moment this week that while they share the groups’ desire for broader cannabis legislation, there’s been a lack of movement within the Judiciary Committee to advance a legalization bill from its chair, Rep. Jerrold Nadler (D-NY), and so lawmakers are in a bind.
“SAFE Banking is a narrowly focused bill that serves as the ice breaker for this Congress to take up additional marijuana legislation,” Verville, from Perlmutter’s office, said. “We appreciate the strong broad, bipartisan coalition of support behind this bill, and look forward to the vote next week.”
Senate Minority Leader Chuck Schumer (D-NY) said on Thursday that he agrees with the sentiment expressed in the advocacy letter, writing that “Congress should not enact banking reform alone and think the job is done.” He didn’t specify whether he also wanted a vote to be delayed, however.
Sen. Cory Booker (D-NJ) didn’t specifically mention the banking bill, but in a tweet published hours after the House vote was announced, he reiterated his stance that “any marijuana legislation moving through Congress must include restorative justice for those most harmed by the War on Drugs in order to get my vote.”
As I said earlier this year, any marijuana legislation moving through Congress must include restorative justice for those most harmed by the War on Drugs in order to get my vote.https://t.co/Y1dOwgHbm2
— Sen. Cory Booker (@SenBooker) September 20, 2019
Justin Strekal, political director for NORML, which supports moving forward with the banking bill while broader legislation is worked out, told Marijuana Moment that the House vote next week “is an important first step by Congress.”
“But much more action will still need to be taken in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana,” he added.
While some advocates have raised concerns about the timing of the banking vote, there’s been widespread support for the legislation among financial associations and state officials.
The American Bankers Association (ABA), Credit Union National Association (CUNA), Independent Community Bankers of America (ICBA) and National Bankers Association (NBA) wrote a letter supporting the bill’s passage on Thursday.
They’re joined by 50 state banking associations, the National Association of State Treasurers, the top financial regulators of 25 states, a majority of state attorneys general and bipartisan governors of 20 states, all of which have backed the SAFE Banking Act this year.
If the banking bill clears the House next week, it’s prospects remain uncertain in the Republican-controlled Senate. Though certain key senators such as Banking Chairman Mike Crapo (R-ID) have recently indicated that they’re inclined to pursue a legislative fix to the issue, GOP lawmakers have generally not had the same appetite for marijuana reform as their Democratic colleagues.
That said, the chairman revealed last week that he plans to hold a vote on cannabis banking legislation in his panel before the year’s end, and Perlmutter’s proposed amendments are likely to increase Senate leadership’s interest in taking up the SAFE Banking Act. Crapo is an especially strong proponent of preventing financial regulators from targeting certain industries such as gun sellers, which the bill will now address.
However, Crapo’s communications director told Marijuana Moment on Friday that there are “no plans to mark anything up/hold a vote at this time.”
Meanwhile, Senate Majority Leader Mitch McConnell (R-KY) is a fierce advocate for the hemp and CBD industries, and he may be persuaded to put the legislation to a vote since it includes explicit protections for those businesses even if he personally opposes broader marijuana reform.
This story has been updated to include comments from lawmakers and advocates.
Trade Associations And Civil Rights Groups Send Mixed Messages On Marijuana Banking To Senate
A coalition of trade associations sent a letter to Senate Banking Committee leadership on Thursday, urging a vote on legislation to protect financial institutions that service state-legal marijuana businesses.
But those senators are also feeling pressure from leading civil rights groups like the ACLU and Human Rights Watch, which sent an earlier letter insisting that they not allow cannabis banking to detract from more comprehensive reform that addresses social equity.
The organizations involved in the latest letter—including the American Bankers Association and Credit Union National Association—said that advancing the Secure and Fair Enforcement (SAFE) Banking Act or similar legislation is pivotal to ensuring that stakeholders receive needed clarity and are shielded from being penalized by federal regulators.
The letter, addressed to Banking Chair Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH), emphasized the bipartisan nature of the House passage of the bill in September and the growing movement at the state level to legalize cannabis for medical or recreational purposes.
“Our organizations support an initial legislative step that allows the legal cannabis industry into the banking system,” the groups, which also include the Council of Insurance Agents and Brokers, International Council of Shopping Centers and National Association of REALTORS, wrote. “Ultimately, protecting law-abiding financial institutions and ancillary businesses from their currently untenable position and addressing increasing public safety concerns.”
As more states reform their marijuana laws, however, “distribution, sale, possession, research, transaction, housing, employment, and a broader landscape of cannabis is becoming increasingly problematic” for stakeholders under federal prohibition.
“Ultimately, this creates more legal and security concerns that impact the operations and safety of businesses and consumers,” they said. “Finally, the lack of an available safe harbor for cannabis will continue to challenge the full adoption and deployment of the legal hemp and CBD products market in the U.S. due to the inextricable link between hemp and cannabis.”
“To resolve this, we urge the Committee to vote on the SAFE Banking Act or similar measures. Such measures are meant to create a safe harbor for depository institutions that provide a financial product or service to businesses in a state permitting the use of cannabis. A safe harbor will enable law enforcement and states to effectively monitor and regulate businesses while simultaneously bringing billions into the regulated banking sector.”
12 groups including ABA just wrote @MikeCrapo @SenSherrodBrown @senatemajldr @SenSchumer urging a vote on the #SAFEBanking Act. It's time to end the legal limbo over banking cannabis in the growing number of states where it's legal. Read the letter: https://t.co/1529vIHawq
— American Bankers Association (@ABABankers) December 12, 2019
The letter, also signed by Americans for Prosperity and R Street, recognizes that creating a federal regulatory scheme for marijuana will take time but says that the SAFE Banking Act represents “a critical first step to ensure that legal cannabis marketplaces are safe, legal, and transparent.”
Crapo has said that he’s interested in holding a vote on resolving the cannabis banking issue in his panel before the year’s end, but so far nothing has been scheduled. The chairman told Marijuana Moment in earlier interviews that there are several changes to the House-passed bill that he’d like to see but that he’s worried impeachment proceedings against the president will interfere with plans to hold a vote.
All that said, pressure from civil rights advocacy groups could complicate congressional efforts to get the banking bill approved. In October, several organizations including the ACLU, Drug Policy Alliance, Human Rights Watch and Center for American Progress sent a letter to Senate leadership, as well as Crapo and Brown, demanding that “marijuana legislation considered in the Senate include provisions that will guarantee equity in the industry.”
The letter, which doesn’t appear to have been previously reported and was obtained by Marijuana Moment, states that while the coalition agrees the SAFE Banking Act “is an incremental step toward rolling back the federal prohibition of marijuana, it fails to help communities that have been historically and disproportionately devastated by United States’ punitive drug laws.”
“As the Senate Committee on Banking, Housing, and Urban Affairs considers similar legislation, we insist that the legislation include provisions that ensure equity in the marijuana industry by creating opportunities for individuals who have been prohibited from this growing business either by legal or financial means,” the letter, which was also signed by the Immigrant Legal Resource Center, Leadership Conference on Civil and Human Rights and National Association of Social Workers, states.
“Indeed, this Congress has shown it understands the economic impact of legalization. But while progress on the business side of legalization is promising, it is not sufficient. Federal marijuana legislation must be comprehensive and lead with equity, addressing past and current harms to communities of color and low-income communities who bore the brunt of the failed war on drugs. We demand that any marijuana reform or legalization bill considered by the Senate] include robust provisions addressing equity. More than simply adding equity provisions to bills that address industry concerns, we need comprehensive reform that deschedules marijuana and addresses the inequities and harms continually inflicted by the failed war on drugs.”
In other words, the groups are insisting on broad reform prior to a vote on a bill viewed as largely beneficial to the cannabis industry—similar to a request they made of House members prior to the legislation’s passage in the chamber.
Read the marijuana banking letters from the trade associations and civil rights groups below:
GOP Congressman Knocks His Party For Failing To Pass Marijuana Reform
A Republican congressman says that whichever party is responsible for passing federal marijuana reform will “instantly” shoot up in the polls, while lamenting the fact that the GOP failed to do so when they controlled the House.
Rep. Thomas Massie (R-KY), a vocal advocate for hemp, was asked by Fox Business host Kennedy on Wednesday whether cannabis should be rescheduled under federal law.
“Absolutely,” he said. “The first party that does this—and I don’t understand why either party won’t do it—is going instantly gain 10 points in the general poll on which party versus the other.”
“We should have done it when we were in the majority,” he added. “The liberals should be asking Pelosi why she hasn’t put it on the floor yet.”
The House Judiciary Committee approved legislation last month to end federal marijuana prohibition, but it hasn’t yet been scheduled for floor action.
Massie made similar points during an interview with Marijuana Moment earlier this year, stating that if Republicans had advanced states’ rights-focused marijuana legislation, “I think we might still be in the majority.”
Of course, while Massie has supported legislation to allow states to set their own cannabis policies without federal intervention, as well as other more modest reform measures such as protecting banks that service marijuana businesses, he’s so far declined to cosponsor any bills that seek to deschedule cannabis.
The congressman has also expressed interest in changing federal gun control laws to allow cannabis consumers to purchase firearms.
Though it’s not clear exactly how much of a boost either party would get by passing a marijuana reform bill, a Pew poll released last month does show that there’s majority support for legalization among those who lean Republican (55 percent) as well those who lean Democratic (78 percent).
Photo courtesy of YouTube/Rep. Massie.
State Department Warns Travelers About Flying With Cannabis Oil Internationally
The U.S. State Department is warning international holiday travelers that while hemp-derived CBD might be legal in the U.S., it can land you in trouble if you take it certain places abroad.
“Make sure your gift isn’t a fa la la la la la la la la fail,” the department said in a tweet on Thursday. “Bringing along gifts like drones, CBD oils, and firearms can land you in trouble in foreign countries. Research what is and isn’t allowed before you travel.”
(Marijuana Moment’s editor provides some content to Forbes via a temporary exclusive publishing license arrangement.)
Photo courtesy of Flickr/DHS.