This week, the House Financial Services Subcommittee on Consumer Protection and Financial Institutions held a hearing entitled “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses.”  The hearing examined the Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act), introduced by Representatives Ed Perlmutter (D-Colorado) and Denny Heck (D-Washington).  

Cannabis remains illegal under the federal Controlled Substances Act, despite decriminalization and legalization in some form in at least 47 states and the District of Columbia.  Due to the federal statute, financial institutions turn away legitimate marijuana businesses to avoid the risk of federal prosecution and the loss of assets within a financial institution.  The legislation would lift the federal prohibition on cannabis-related businesses for the financial services industry.  

The SAFE Act is a long sought after priority for Representatives Perlmutter, Heck, and states where medical and adult uses of marijuana have been legalized. The Subcommittee examined a draft version of the bill but the final legislation is expected to be formally submitted by the end of February.

Last Congress, the bill was endorsed by the Independent Community Bankers of America, the Credit Union National Associations and 19 State Attorneys General. The bill has enough support from Democrats to clear the House but its passage would be uncertain in the Senate.

The issue is a legislative priority for rural California, and will be one of the topics that RCRC’s senior leadership will address when visiting the nation’s Capital later this month.  RCRC issued a letter of support to the sponsors of the SAFE Banking Act on behalf of its member counties.