At the US Conference of Mayors’ annual meeting in Reno on June 6, the gathering of mayors passed a resolution urging Congress to pass the SAFE Banking Act for cannabis businesses.
The SAFE Banking Act would allow legal cannabis businesses to access banking and financial services. Under federal law, legal cannabis businesses cannot access traditional banking and financial services like other legal businesses.
“Be it resolved that The United States Conference of Mayors urges Congress to pass the SAFE Banking Act of 2021 to provide financial security for cannabis dispensaries and related companies and enhance public safety,” the resolution read. “Be it further resolved that The United States Conference of Mayors supports federal legislation legalizing the medicinal use of cannabis and the adult use of recreational cannabis, including the Marijuana Opportunity Reinvestment and Expungement (MORE) Act (H.R. 3617) and the Cannabis Administration and Opportunity Act (CAOA).”
The resolution — offered by mayors Victoria Woodards of Tacoma, Wash.; Dean Trantalis of Fort Lauderdale, Fla.; and Debra March of Henderson, Nev.—was approved by the delegation.
U.S. Rep. Ed Perlmutter (D-CO), one of the sponsors of the SAFE Banking Act, was pleased to get the approval of the US Conference of Mayors.
“The support from the @usmayors is a testament to the importance of #SAFEBanking for the financial security of legal businesses and the public safety of cities across the country,” Perlmutter tweeted.
The House advanced the SAFE Banking Act as part of another bill, the America COMPETES Act. But the Senate stripped out the SAFE Banking Act when it passed the America COMPETES Act. Now the two houses of Congress are working out a compromise final bill.
Currently, 18 states and the District of Columbia have legalized recreational cannabis use, while 37 states and the District of Columbia have legalized the medicinal use of cannabis. Further, 22 states, the U.S. Virgin Islands, and the District of Columbia have decriminalized cannabis.
The mayors point out that because cannabis businesses don’t have access to traditional banking, they must rely on cash-only transactions, making them targets of criminal activity. Officials from the Credit Union National Association (CUNA) testified before the Senate Committee on Banking, Housing, and Urban Affairs that one in two cannabis dispensaries has been robbed or burglarized. The total value of stolen goods in a single theft totaled, on average, between $20,000 and $50,000. This creates a public safety threat to not only the business but their communities as well.