A bipartisan bill to protect banks that service state-legal marijuana businesses from being penalized by federal regulators has been formally scheduled to receive a House floor vote on Monday, a calendar released by Majority Leader Steny Hoyer’s (D-MD) office confirms.
Marijuana Moment reported on the expected development earlier Friday after obtaining an email that was sent to stakeholders by a staffer for Rep. Ed Perlmutter (D-CO), the bill’s sponsor, seeking letters of support for the Secure and Fair Enforcement (SAFE) Banking Act ahead of the anticipated vote.
The bill is now now officially listed on the majority leader’s agenda of legislation for Monday, with a floor debate expected to happen after 2:30 PM. If a recorded vote is requested, that is projected to take place between 6:30 and 8:00 PM.
This will mark the first floor action on a cannabis reform bill this Congress. The standalone legislation cleared the House with bipartisan support in 2019, and its language was also included in two coronavirus relief packages that the chamber approved. The proposal did not advance in any form in the Senate under GOP control, however.
With Democrats now in control of the House, Senate and White House, industry stakeholders are optimistic that the legislation stands a solid chance of becoming law this year.
The SAFE Banking Act was reintroduced in the House last month, and it currently has 168 cosponsors—more than one-third of the chamber. Days later, it was refiled in the Senate, where Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT) are the chief sponsors.
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The legislation would ensure that financial institutions could take on cannabis business clients without facing federal penalties. Fear of sanctions has kept many banks and credit unions from working with the industry, forcing marijuana firms to operate on a cash basis that makes them targets of crime and creates complications for financial regulators.
Because the bill will be taken up under the process known as suspension of the rules, it will need a two-thirds supermajority to pass—an achievable threshold given the level of support it got during the earlier 2019 vote. No floor amendments will be allowed under the procedure.
Rep. Matt Gaetz (R-FL) said in a tweet on Friday that he’ll “be voting for the SAFE Banking Act in the House” and that it’s “absurd that Marijuana business cannot fully access the US financial system.” He did not comment on the timing of a vote, however.
I’ll be voting for the SAFE Banking Act in the House.
It is absurd that Marijuana business cannot fully access the US financial system. pic.twitter.com/5YDeuUBr0p
— Matt Gaetz (@mattgaetz) April 16, 2021
After it passed the House last Congress, advocates and stakeholders closely watched for any action to come out of the Senate Banking Committee, where it was referred after being transmitted to the chamber. But then-Chairman Mike Crapo (R-ID) did not hold a hearing on the proposal, despite talk of negotiations taking place regarding certain provisions.
Crapo said he opposed the reform proposal, but he signaled that he might be more amenable if it included certain provisions viewed as untenable to the industry, including a 2 percent THC potency limit on products in order for cannabis businesses to qualify to access financial services as well as blocking banking services for operators that sell high-potency vaping devices or edibles that could appeal to children.
Sen. Sherrod Brown (D-OH), who took the top seat in that panel after Democrats secured a majority in the Senate, told reporters in February that he’s “willing” to move the cannabis banking bill, “but with it needs to come sentencing reform.”
The current Senate version of the SAFE Banking Act has 32 cosponsors.
When legislative leaders announced that the SAFE Banking Act was getting a House vote in 2019, there was pushback from some advocates who felt that Congress should have prioritized comprehensive reform to legalize marijuana and promote social equity, rather than start with a measure viewed as primarily friendly to industry interests.
Rep. Earl Blumenauer (D-OR), co-chair of the Congressional Cannabis Caucus and an original cosponsor of the bill, said last month that the plan is to pass the banking reform first this session because it “is a public safety crisis now,” and it’s “distinct—as we’ve heard from some of my colleagues—distinct from how they feel about comprehensive reform.”
Meanwhile, congressional lawmakers are simultaneously preparing to introduce legislation to end federal cannabis prohibition.
Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are in the process of crafting a legalization bill, and they’ve already met with advocates to get feedback on how best to approach the policy change.
Schumer said this week that the legislation will be introduced and placed on the floor “soon.”
On the House side, Judiciary Chairman Jerrold Nadler (D-NY) said recently that he plans to reintroduced his legalization bill, the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, which cleared the chamber last year but did not advance in the Senate under GOP control.