Senators Introduce Revised Marijuana Banking Bill

A bipartisan group of senators on Wednesday introduced a newly revised bill to give state-legal cannabis companies access to business banking services. Dubbed the Secure and Fair Enforcement Regulation (SAFER) Banking Act, the legislation is sponsored by Democratic Sen. Jeff Merkley of Oregon and Sen. Steve Daines, a Republican from Montana.

The bill is a revamped version of the Secure and Fair Enforcement (SAFE) Banking Act, a bill to provide cannabis companies access to traditional banking services that was passed by the House of Representatives seven times. Under current federal law, providing such services is strictly regulated, leaving many businesses—particularly small, independent operators—without access to bank accounts, credit card processing and other financial services. As a result, many businesses operate strictly in cash, leaving operators and their customers and staff vulnerable to crime.

The new cannabis banking bill comes only three weeks after the Biden administration recommended that marijuana be reclassified under federal drug laws. Last week, congressional researchers reported that the DEA is “likely” to follow the recommendation to reschedule marijuana from Schedule I to Schedule III of the Controlled Substances Act.

After the newly revised legislation was introduced, a group of senators including the bill’s sponsors and co-sponsors Senate Majority Leader Chuck Schumer of New York, Arizona independent Sen. Kyrsten Sinema and Wyoming Republican Sen. Cynthia Lummis released a statement supporting the legislation, noting the measure is scheduled for a Senate committee markup hearing to be held next week.

“This legislation will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans,” the group of senators wrote in a joint statement. “It also prevents federal bank regulators from ordering a bank or credit union to close an account based on reputational risk. We look forward to the markup of this bill in the Senate Committee on Banking, Housing and Urban Affairs on September 27th.”

The new bill is the result of months of negotiation between senators over some provisions of the original SAFE Banking Act. Key changes to the bill cited by MJBizDaily include a requirement that federal regulators “develop uniform guidance and examination procedures – including legacy cannabis-related deposits” and “update guidance related to hemp-related businesses and service providers.” Regulators would be prohibited from ordering banks to close an account “unless there is a valid reason.” The legislation also includes language to protect employees of state-legal cannabis businesses attempting to obtain residential mortgages funded by federal programs.

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