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SAFE Banking Act Reintroduced in the U.S House and Senate

FOR IMMEDIATE RELEASE
Wednesday, April 26, 2023

CONTACT:

Aaron Smith, CEO and Cofounder
(888) 683-5650, Aaron@TheCannabisIndustry.org

Bethany Moore, Communications Director
(240) 678-2654, Communications@TheCannabisIndustry.org

SAFE Banking Act Reintroduced in the U.S House and Senate

Advocates call for passage of bipartisan SAFE Banking Act to open the financial system to licensed cannabis businesses

WASHINGTON, D.C. – Today, a bipartisan group of lawmakers reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the U.S. Senate and House of Representatives. This bicameral legislation, which was introduced by Sen. Jeff Merkley (D-OR), Sen. Steve Daines (R-MT), Rep. Dave Joyce (R-OH), and Rep. Earl Blumenauer (D-OR), would protect financial institutions from federal prosecution for providing services to cannabis businesses operating in compliance with state laws.

Federal banking regulations currently do not recognize the legal cannabis industry that exists in dozens of U.S. states, creating a significant barrier for licensed businesses accessing banking and financial services. This creates transparency issues for the industry and government officials tasked with regulating it and has led to cannabis businesses being increasingly targeted for robbery with sometimes fatal results.

Providing a safe harbor for financial service providers to work with cannabis businesses would also allow for traditional lending, which is currently limited throughout the industry. This lack of access to capital most adversely affects small and minority-owned businesses.

Previous versions of the SAFE Banking Act have been approved by the House with wide margins and significant bipartisan support seven times over the past two congressional sessions, however, the bill has so far stalled in the Senate. Advocates are hopeful that the legislation will receive a hearing and an affirmative vote in both chambers and signed into law this year, as more states continue to enact laws licensing cannabis sales.

There are currently 322 House members and 76 senators representing states with comprehensive medical or adult-use cannabis laws and whose constituents would directly benefit from passage of the SAFE Banking Act.

“With a supermajority of Congress now representing a state with licensed cannabis sales, enacting this sensible and necessary legislation should be among the least controversial issues before the Senate today,” said National Cannabis Industry Association co-founder and CEO Aaron Smith. “This bill is a common sense step toward improving public safety and transparency while also opening much-needed access to capital to struggling small businesses throughout the nation.”

A November 2022 Gallup survey found that 68% of Americans support making cannabis legal for adults and a recent Pew Research Center poll found that less than 10% of Americans still support marijuana prohibition.

Over 100 National Cannabis Industry Association members are expected to travel to Washington, D.C. to lobby for the passage of the SAFE Banking Act and other industry priorities at the organization’s 11th Annual Cannabis Industry Lobby Days May 16-18.

Laws to make cannabis legal for adults have passed in 22 states as well as the District of Columbia and the territories of CNMI and Guam, and 38 states, as well as several territories, have comprehensive medical cannabis laws. Nearly three in four Americans live in a state where cannabis is legal in some form.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization focused on representing small and independent cannabis-related businesses at the national level. NCIA promotes the growth of a responsible, sustainable, and inclusive cannabis industry and works for a favorable social, economic, and regulatory environment for that industry throughout the United States.

 

House Approves Appropriations Amendment to Protect State-Legal Cannabis Markets

Provision would prevent federal interference in all legal cannabis programs, including adult use

 

WASHINGTON, D.C. – After approving legislation to protect state cannabis programs in a voice vote on Thursday afternoon, the House of Representatives reiterated its support with a roll call vote of 254-163 hours later. The bipartisan amendment to the Commerce, Justice, and Science appropriations bill was introduced by Reps. Earl Blumenauer (D-OR), Barbara Lee (D-CA), Tom McClintock (R-CA), and Del. Eleanor Holmes Norton (D-DC).

The provision would prevent the federal government from using any funds to interfere with state medical or adult-use programs or target individuals and businesses that are in compliance with state cannabis laws. If passed, this spending restriction would remain in effect for the next fiscal year.

“Today’s House vote aligns with the overwhelming majority of Americans who oppose federal interference with the successful cannabis programs operating throughout the country,” said Aaron Smith, executive director of the National Cannabis Industry Association. “Now, it’s time for the Senate to do the right thing and ensure this sensible provision makes it into the final budget legislation so that states can continue to forge their own path on marijuana policy without federal intrusion.”

A recent poll by SurveyUSA showed that 76% of Americans think states should be able to enact their own marijuana laws without interference from the federal government, including more than two thirds of Republicans. The annual Gallup poll on the subject from last year showed that nearly two-thirds of respondents support making cannabis legal for adults.

“Passage of this amendment would give state-legal and essential cannabis businesses some temporary peace of mind while Congress works to permanently end federal prohibition and repair the damage it has done to marginalized communities,” continued Smith. “It is clear that there is strong bipartisan support for cannabis policy reform and we will continue working with lawmakers to promote further legislation in this session.”

Last year, this amendment was passed by the House but did not end up in the final budget bill. Since 2014, Congress has approved appropriations language that prevents interference in only state medical cannabis programs, and has included that language in the original budget language for the last two years.

Cannabis is legal for adults in eleven states as well as the District of Columbia and the territories of CNMI and Guam, and 33 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states.

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House Bill Introduced to Make Cannabis Businesses Eligible for COVID-19 Relief Funds

Widespread recognition of necessity for regulated cannabis providers spurs calls for equal access to federal assistance

 

WASHINGTON, D.C. – Legislation to give legal marijuana businesses, which have been declared essential in a majority of states with regulated cannabis markets, access to resources being made available by congressional COVID-19 emergency response packages was introduced in the House today by Rep. Earl Blumenauer (D-OR) and Rep. Ed Perlmutter (D-CO). The Emergency Cannabis Small Business Health and Safety Act would stop cannabis businesses and those that provide services to them from being excluded from further federal relief funding provided through the Small Business Administration (SBA).

The full text of the bill is available here.

“The cannabis industry employs nearly a quarter of a million Americans and has been deemed essential in state after state, yet many businesses will not survive the pandemic without help,” said Aaron Smith, executive director of the National Cannabis Industry Association. “They already face disproportionate financial burdens during normal conditions, and the strains created by the coronavirus response are putting them at an even greater disadvantage and jeopardizing their ability to provide vital healthcare services. We are incredibly grateful for the dozens of lawmakers who are urging their colleagues to give cannabis businesses fair access to federal relief funds in these difficult times.”

Under current policy, businesses that deal directly with cannabis production and sale, as well as many that provide services to them, are ineligible for any SBA programs. Many indirect businesses have not been declared essential and have been forced to close. Cannabis businesses that have remained open must contend with declining sales, supply chain disruptions, onerous tax rates, lack of access to banking services, and the costs incurred by implementing additional health and safety measures to protect employees and customers.

Last week, Rep. Blumenauer and nearly three dozen of his colleagues sent a letter to House leadership urging them to make cannabis businesses eligible for SBA programs. Senators Jacky Rosen (D-NV) and Ron Wyden (D-OR) along with eight co-signers sent a similar letter to Senate leadership on Wednesday. They have been joined by cannabis industry advocates, the United Food and Commercial Workers International Union, state officials including Colorado Gov. Jared Polis, and others.

Cannabis is legal for adults in eleven states as well as the District of Columbia and the territories of CNMI and Guam, and 33 states as well as several territories have comprehensive medical cannabis laws. Every state with a functional regulated cannabis market is allowing continued legal access in some form during the ongoing pandemic restrictions.

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