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Keeping the Spotlight on Cannabis Banking Reform 

by Sadaf Naushad, NCIA Intern 

As the middle of May approaches, cannabis advocates, lobbyists, associations, and many more continue to educate congressional offices on the importance of cannabis policy reform. 

So far, 37 states have legalized medical marijuana, and 18 states – including the District of Columbia – permit adult recreational cannabis use. With more businesses operating within the industry, one major issue remains: enacting cannabis banking legislation. 

The Secure and Fair Enforcement (SAFE) Banking Act addresses the ongoing hurdles between financial institutions transacting with cannabis-related businesses. Congressional lawmakers have been working to include the SAFE Banking Act as a provision to the House’s U.S. Innovation and Competition (COMPETES) Act. 

Let’s take a look at where Congress currently stands with the SAFE Banking Act. 

This week, 24 U.S. Senators focused their attention on pressuring congressional leaders in ensuring that cannabis banking provisions are enacted into law as part of the broader-scale, House-passed America COMPETES Act. 

Led by U.S. Senators Jeff Merkley (D-OR) and Jacky Rosen (D-NV), the 19 Democrats and five Republicans wrote a letter to the leaders, outlining the significance of the SAFE Banking Act, along with its potential impacts on the emerging industry.  

The rapidly developing field has led to remarkable job growth, generating significant tax revenue as a result. Thus, if implemented, the SAFE Banking Act would authorize banks, credit unions, and other financial institutions to provide banking services to legally-operating cannabis businesses without facing punishment by federal regulators. Additionally, the banking provision attached to the America COMPETES Act “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.”

As of now, financial institutions remain unwilling to transact with cannabis businesses. Due to the indistinct federal and state laws, banks and credit unions fear the regulatory risks associated with the inconsistent policies. Allowing legal cannabis businesses to operate in compliance with state law in obtaining financial services without federal penalties would confront public safety matters, ultimately assisting communities to lessen cash-motivated crimes.  

According to the 24 senators, law enforcement administrations have previously addressed the risks accompanying an unbanked cannabis system, many of which include theft, robbery, and violence perpetrated against employees. They emphasize the need to transfer the substantial amount of cash within the industry into the banking system to ensure safe monitoring of accounts pursuant to present federal anti-money laundering regulations and the Bank Secrecy Act.  

The National Cannabis Industry Association’s (NCIA) Government Relations team in Washington, D.C. continues to educate Senate offices this week through our Virtual VIP Lobby Days. As we continue to speak with Senate offices on the inclusion of cannabis banking provisions in the America COMPETES Act, our VIP participants are relaying their day-to-day struggles of operating in the cannabis industry. Additionally, participants are pressing for federal de-scheduling, and making sure our nation’s leaders understand the challenges that small and medium-sized cannabis businesses face every day. 

Stay tuned for more details about our next Lobby Days coming this September. For more information on NCIA’s Government Relations works or how to get involved please reach out to madeline@thecannabisindustry.org. 

 

4/20 and Policy: A Week to Remember

by Madeline Grant, Government Relations Manager

There is excitement in the air as we approach April 20; what we recognize as a national holiday for cannabis culture. The 2022 National Cannabis Festival will take place this Saturday, April 23 in Washington, D.C. Prior to a full day of music, vendors, and many more fun surprises, the National Cannabis Policy Summit will be held Friday, April 22 at the Ronald Reagan Building, also in D.C. 

NCIA’s very own Deputy Director of Government Relations, Michelle Rutter Friberg, will give opening remarks to introduce the “Banking on Incrementalism: How and Should Congress Pass the SAFE Banking Act?” panel. Our long-time cannabis champion on Capitol Hill, Congressman Ed Perlmutter (D-CO), will present a special message to all attendees. If you want to tune in, please stay tuned for a link on one of NCIA’s social media platforms.

The panel will discuss the Secure and Fair Enforcement (SAFE) Banking Act and how it made history when it became the first stand-alone “pro-cannabis” bill to pass in a chamber of Congress in September 2019. Since that day, the House has passed the bill an additional five times, but the Senate, under both Republican and Democratic leadership, has refused to consider the legislation for various reasons. Support for SAFE Banking is evident through numerous allies, including dozens of Governors, states Attorneys General, Auditors, and Treasurers from both parties as well as bankers, unions, and advocates. Despite widespread bipartisan support, pro-reform critics of the SAFE Banking Act worry that its passage opens the floodgates for existing licensees to expand operations while not going far enough to ensure equity and meaningful criminal justice reform.

Additionally, with the recent news of the long-anticipated Senate bill to federally legalize marijuana, the Cannabis Administration & Opportunity Act (CAOA) not being introduced this month, frustration continues to grow among advocates. A discussion draft of CAOA was first unveiled last year; however, Senator Schumer said last week that he and colleagues were in the process of reaching out to Republican senators to “see what they want” included in the legislation. The extended time frame is intended to finalize the measure, helping the senators overcome what are currently significant odds stacked against them to reach a high vote threshold in the Senate chamber. The “official introduction” will take place sometime “before the August recess,” according to a press release from Senator Schumer’s office. Stay tuned for more updates from the NCIA Government Relations team.

As NCIA continues to work to get legislation to the finish line, it’s important to build support on incremental and comprehensive bills with the House and Senate offices. From our VIP Virtual Lobby Days with NCIA’s Evergreen members to providing congressional offices industry reports and data, we work as a resource to support and educate Capitol Hill. Furthermore, events centered around cannabis policy, such as the National Cannabis Policy Summit, help to illustrate the crucial importance of cannabis policy reform. Thanks to members of the National Cannabis Industry Association, we can continue to lobby on behalf of small cannabis businesses and move positive cannabis policy reforms in Congress. Although we can’t all be together this year for NCIA’s Annual Cannabis Business Lobby Days, stay tuned for updates for NCIA members to participate virtually. If you’re interested in learning how to get more involved in NCIA’s policy work please reach out to madeline@thecannabisindustry.org. 

 

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