Madam Speaker, I have an amendment at the desk. Madam Speaker, I yield myself 1\1/2\ minutes. Madam Speaker, I offer this amendment, which is identical to the SAFE Banking Act the House passed by a vote of 321-101 in April. 180 bipartisan…
Madam Speaker, I have an amendment at the desk.
Madam Speaker, I yield myself 1\1/2\ minutes.
Madam Speaker, I offer this amendment, which is identical to the SAFE Banking Act the House passed by a vote of 321-101 in April. 180 bipartisan Members of Congress and 39 bipartisan Senators are cosponsors of this important legislation to allow State-regulated cannabis businesses to access the financial system and improve safety in our communities by getting cash off the streets.
By bringing cash into the financial system, banks and credit unions will
subject the funds and the account holders to rigorous anti-money laundering and ``know your customer'' requirements. Under FinCEN's 2014 guidance, financial institutions must comply with a heightened anti- money laundering reporting regime when providing services to cannabis businesses. This will strengthen the security of our financial system and our country by keeping bad actors like foreign cartels out of the cannabis industry.
But most importantly, this amendment will reduce the risk of violent crime in our communities. By dealing in all cash, these businesses and their employees become targets for robbery, assaults, burglaries, and more. In Colorado, Travis Mason, a young father and Marine Corps veteran, was murdered while working as a security guard for a cannabis business. We cannot wait any longer to address this public safety threat.
I want to thank my cosponsors on this amendment, Representatives Velazquez, Davidson, Correa, Blumenauer, Joyce, and Barbara Lee, as well as former Representatives Heck and Stivers.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I just would remind the gentleman from Alabama the matter was deemed germane by the Parliamentarian.
I yield 1 minute to the gentleman from Ohio (Mr. Davidson).
Madam Speaker, I include in the Record a letter from Governors from 21 States and Territories endorsing the SAFE Banking Act, along with a list of 41 other diverse organizations who support the legislation.
Hon. Charles E. Schumer,
Majority Leader,
Washington, DC.
Hon. Nancy Pelosi,
Speaker of the House,
Washington, DC.
Hon. Sherrod Brown,
Chair, Senate Committee on Banking,
Housing and Urban Affairs, Washington, DC.
Hon. Maxine Waters,
Chair,
House Committee on Financial Services, Washington, DC.
Hon. Mitch McConnell,
Minority Leader,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader,
Washington, DC.
Hon. Pat Toomey,
Ranking Member, Senate Committee on Banking, Housing and
Urban Affairs, Washington, DC.
Hon. Patrick McHenry,
Ranking Member, House Committee on Financial Services,
Washington, DC.
April 19, 2021.
Dear Congressional Leaders: As our States' chief
executives, we urge Congress to pass legislation allowing
states with legalized medical or adult-use cannabis to
operate safely under the national banking system. We strongly
support the passage of the Secure and Fair Enforcement (SAFE)
Banking Act of 2021 (H.R. 1996/S. 910) or similar legislation
that would remove the legal uncertainty and allow banks and
credit unions to provide services to state-licensed cannabis-
related businesses.
We were pleased that the House passed similar legislation
in the 116th Congress (H.R. 1595). The SAFE Banking Act of
2021 already has more than 165 bipartisan House cosponsors
and more than 30 bipartisan Senate cosponsors. The
legislation has also received support from more than 30
associations.
Currently, 36 U.S. states, four U.S. territories, and the
District of Columbia have legalized the medical use of
cannabis. Additionally, 18 states, two territories, and the
District of Columbia have legalized recreational use by
adults over 21 years of age. Despite legalization of cannabis
at the state-level, our financial institutions face enormous
legal risks and criminal and civil liability under the
Controlled Substances Act. These barriers disincentive
financial institutions from providing banking services to
state-licensed and regulated cannabis businesses.
Because few banks and credit unions provide these services,
state-licensed cannabis businesses predominantly operate on a
cash basis. Without banking services, state-licensed cannabis
businesses are unable to write checks, make and receive
electronic payments, utilize a payroll provider, or accept
credit and debit cards. Cash only businesses pose a
significant public safety risk to customers and employees.
The cash-only environment also burdens state and local
government agencies that must collect tax and fee payments in
person and in cash, which creates additional public expenses
and employee safety risks.
State and federal governments have a shared interest in
upholding the rule of law, protecting public safety, and
transitioning markets out of the shadows and into our
transparent and regulated banking system. Many of our states
have implemented laws and regulations to reduce these risks
while ensuring financial accountability of the cannabis
industry. These public safety risks can be further mitigated
on the federal level by passing the SAFE Banking Act to
provide state-licensed cannabis businesses with access to
banking service providers.
We urge you to pass the SAFE Banking Act of 2021 or similar
legislation that would provide a safe harbor for depository
institutions that provide a financial product or service to a
state-licensed cannabis business in states that have
legalized cannabis. We look forward to working with you as
legislation progresses to address this urgent public policy
and safety concern.
Sincerely,
Governor Jared Polis, State of Colorado; Governor Ned
Lamont, State of Connecticut; Governor John Bel
Edwards, State of Louisiana; Governor Charlie Baker,
State of Massachusetts; Governor Steve Sisolak, State
of Nevada; Governor Michelle Lujan Grisham, State of
New Mexico; Governor Doug Burgum, State of North
Dakota; Governor Gavin Newsom, State of California;
Governor JB Pritzker, State of Illinois; Governor Janet
Mills, State of Maine; Governor Gretchen Whitmer, State
of Michigan; Governor Phil Murphy, State of New Jersey;
Governor Andrew Cuomo, State of New York; Governor Kate
Brown, State of Oregon; Governor Tom Wolf, State of
Pennsylvania; Governor Albert Bryan, Territory of U.S.
Virgin Islands; Governor Jay Inslee, State of
Washington; Governor Tony Evers, State of Wisconsin;
Governor Spencer Cox, State of Utah; Governor Ralph
Northam, State of Virginia; Governor Jim Justice, State
of West Virginia.
The SAFE Banking Act is supported by Governors from 21 states and
territories as well as these 41 organizations
1. American Bankers Association (ABA).
2. American Council of Independent Laboratories (ACIL).
3. American Council of Life Insurers (ACLI).
4. American Financial Services Association (AFSA).
5. American Land Title Association (ALTA).
6. American Property Casualty Insurance Association
(APCIA).
7. American Trade Association for Cannabis and Hemp
(ATACH).
8. Arizona Dispensaries Association (ADA).
9. Association of Bermuda Insurers and Reinsurers (ABIR).
10. California and Nevada Credit Union Leagues (CCUL).
11. California Insurance Commissioner and California
Department of Insurance.
12. Cannabis Business Association of Illinois.
13. Colorado Bankers Association.
14. Colorado Municipal League.
15. Credit Union National Association (CUNA).
16. Council of lnsurance Agents & Brokers (CIAB).
17. Electronic Transactions Association (ETA).
18. Independent Community Bankers of America (ICBA).
19. Independent Insurance Agents & Brokers of America
(IIABA).
20. Insured Retirement Institute (IRI).
21. Law Enforcement Action Partnership (LEAP).
22. Mountain West Credit Union Association (MWCUA).
23. National Armored Car Association.
24. National Association of Federally-Insured Credit Unions
(NAFCU).
25. National Association of Mutual Insurance Companies
(NAMIC).
26. National Association of Professional Insurance Agents
(PIA).
27. National Association of Realtors.
28. National Association of State Treasurers (NAST).
29. National Cannabis Roundtable (NCR).
30. National Cannabis Industry Association (NCIA).
31. National Medicinal Cannabis Coalition (NMCC).
32. National Organization for the Reform of Marijuana Laws
(NORML).
33. Minority Cannabis Business Association (MCBA).
34. Policy Center for Public Health & Safety.
35. Reinsurance Association of America (RAA).
36. Rural County Representatives of California (RCRC)
37. The Real Estate Roundtable.
38. United Food and Commercial Workers (UFCW).
39. U.S. Cannabis Council (USCC).
40. U.S. Hemp Roundtable.
41. Wholesale & Specialty Insurance Association (WSIA).
Madam Speaker, I yield 1\1/2\ minutes to the gentleman from California (Mr. Correa).
Madam Speaker, I yield myself the balance of my time to close.
This is a public safety and a national security matter, very germane to the issues at hand, dealing with foreign cartels and particularly the cash that is developed by this business that leads to crime. We have seen murders, robberies, assaults, and then the potential for foreign malignant forces to get into the cannabis industry here in the United States.
I urge the passage of amendment No. 1 and yield back the balance of my time.