The U.S. House of Representatives on Sept. 25 voted 321–103 to approve bipartisan legislation supported by U.S. Sen. Cory Gardner (R-CO) that would permit American cannabis businesses to access banking services.
“Today Congress began to take its head out of the sand and recognize that states are moving forward with their own cannabis policies and the federal government is holding them back,” said Sen. Gardner.
The Secure and Fair Enforcement (SAFE) Banking Act of 2019, H.R. 1595, is sponsored by U.S. Rep. Ed Perlmutter (D-CO) and 206 cosponsors. Sen. Gardner is the lead original cosponsor among 33 cosponsors of the same-named S. 1200, introduced in April in his chamber by U.S. Sen. Jeff Merkley (D-OR).
If enacted, the bill would prevent federal banking regulators from prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business, such as a lawyer or landlord providing services to a legal cannabis business, according to a bill summary provided by Sen. Gardner’s office.
Additionally, federal banking regulators would not be allowed to terminate or limit a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business; nor recommend or incentivize a bank to halt or downgrade providing any kind of banking services to these businesses, according to the summary.
Among numerous other provisions, the bill also would create a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services.
The Senate on Sept. 26 received the House-approved version and referred it for consideration to the U.S. Senate Banking, Housing, and Urban Affairs Committee, which is already reviewing S. 1200.