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(From the News Desk of U.S. Senator Angus S. King) – U.S. Senator Angus King (I-Maine) today announced his support for the Secure and Fair Enforcement (SAFE) Banking Act of 2019, bipartisan legislation that would ensure legal cannabis businesses can access the same banking services utilized by all other legal businesses. The bill would solve a key logistical and public safety problem in states like Maine that recently have legalized medicinal or recreational cannabis.
Currently, many cannabis businesses operating under state laws that have legalized medicinal or recreational cannabis are denied access to the banking system because they can be prosecuted under federal banking law. Without the ability to access bank accounts, accept credit cards, or write checks, businesses must operate using large amounts of cash. This creates safety risks for businesses and surrounding communities, and makes it more difficult for local and state governments to collect taxes.
“Companies that engage in legal business activities shouldn’t have to conduct their operations in the shadows,” said Senator King.“Forcing these businesses to engage in all-cash transactions is both unsafe and logistically challenging. I’ve cosponsored the bipartisan SAFE Banking Act because I believe businesses that play by the rules approved by Maine voters should have the same access to our banking system as any other business.”
“When our League met with Senator King last month, we expressed our support for this important legislation,” said Todd Mason, President and CEO of the Maine Credit Union League. “The SAFE Banking Act will provide credit unions the certainty they need to serve marijuana businesses without fear of federal prosecution. The bill also addresses a significant public safety issue by providing cannabis businesses a much-needed path to secure financial services.”
“The Maine Bankers Association thanks Senator King for co-sponsoring the SAFE Act,” said Chris Pinkham, President of the Maine Bankers Association. “He has listened to banker concerns regarding the nearly impossible situation financial institutions face to bank the cannabis businesses that are now authorized by Maine state law. In addition to addressing the concerns for public safety regarding a totally cash business, it will help many small businesses associated with the cannabis industry to utilize bankers’ expertise in growing their companies.”
Bipartisan momentum in both chambers of Congress is building for common-sense cannabis banking policies. Last month, the House Financial Services Committee passed a version of the SAFE Banking Act by a bipartisan vote of 45 to 15. And on Tuesday of this week, Treasury Secretary Steven Mnuchin told a House subcommittee, “I hope this is something that this committee can on a bipartisan basis work with since there are people on both sides of the aisle that share these concerns.” Mnuchin noted that the Internal Revenue Service (IRS) has had to build “cash rooms” to accommodate taxes paid by legal cannabis companies.
The SAFE Banking Act 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);
- Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
- Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
- Taking any action on a loan to an owner or operator of a cannabis-related business.
The bill also creates 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.
Joining Senator King in support of the SAFE Banking Act are Senators Jeff Merkley (D-Ore.), Cory Gardner (R-Colo.), Jacky Rosen (D-Nev.), Lisa Murkowski (R-Alaska), Michael Bennet (D-Colo.), Dan Sullivan (R-Alaska), Kamala Harris (D-Calif.), Rand Paul (R-Ky.), Catherine Cortez-Masto (D-Nev.), Kevin Cramer (R-N.D.), Tammy Duckworth (D-Ill.), Gary Peters (D-Mich.), Bob Menendez (D-N.J.), Bernie Sanders (I-Vt.), Patty Murray (D-Wash.), Edward J. Markey (D-Mass.), Patrick Leahy (D-Vt.), Brian Schatz (D-Hawaii), Ron Wyden (D-Ore.), Elizabeth Warren (D-Mass.), and Mazie Hirono (D-Hawaii).