U.S. Reps Earl Blumenauer (D-OR) and Ed Perlmutter (D-CO) are urging House and Senate leaders to include the SAFE Banking Act in the larger America COMPETES Act.
The Secure and Fair Enforcement (SAFE) Banking Act, sponsored by Perlmutter, would prohibit federal regulators from taking punitive measures against financial institutions that provide banking services to legitimate cannabis-related businesses. Currently, financial institutions that offer banking services to legitimate and licensed cannabis businesses under state laws are subject to criminal prosecution under several federal statutes.
The bill passed in the House earlier this year as part of the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (COMPETES) Act, but the Senate passed the larger bill with the SAFE Banking Act stripped out. The two versions now must be worked out to arrive at a compromise version.
Blumenauer, who is on the committee to come up with a compromise version, and Perlmutter, sent a letter to Senate Majority Leader Chuck Schumer (D-NY), Senate Minority Leader Mitch McConnell (R-KY), Speaker of the House Nancy Pelosi (D-CA), and House Minority Leader Kevin McCarthy (R-CA), urging them to include SAFE Banking in the final version of America COMPETES.
“The SAFE Banking Act is crucial for small operators, especially those owned and staffed by people of color and those who have already been punished during the War on Drugs. We have repeatedly seen these small businesses be denied access to the banking alternatives available to large operators and independently wealthy operators. This leaves these local businesses and community-based entrepreneurs dependent on cash-only operations that are vulnerable targets for violent crime,” Blumenauer and Perlmutter wrote to congressional leaders.
The lawmakers point out that 47 states, four U.S. territories, and the District of Columbia have already enacted some level of cannabis reform. Cannabis is legal for recreational use in 18 states, Washington, D.C., and Guam.
“Just last month, three people were killed in one week during robberies targeting cannabis businesses in Washington State. This violence is widespread and ongoing, and it punishes the communities already most vulnerable and targeted in the War on Drugs. Expanding access to banking is a critical element of reform that centers on communities disproportionately harmed by punitive drug prohibitions, and this reform cannot wait,” they added.
They called it imperative that the committee finally pass the SAFE Banking Act for good, as it has already been passed six times in the House only to stall in the Senate.
“The SAFE Banking Act is a critical piece of the reform our underserved communities and small businesses need. This legislation will make impactful progress in moving towards a fairer industry, especially for business led by lower-income community members and owners of color. As the conference process begins in earnest it is imperative that the final conference committee report include the SAFE Banking Act in its entirety. This is a matter of public safety, equity, and justice, and there is no longer any reason to delay,” they concluded.