Cannabis SAFE Banking Act passes House
In addition to protecting insurance agents, the SAFE Banking Act also makes it easier for banks to offer financial services to the cannabis industry.
The Secure and Fair Enforcement (SAFE) Banking Act, which allows marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system, has been passed by the U.S. House of Representatives in a 321-101 vote.
The bill moves on to the Senate, which is also considering a new version of the Clarity Law Around Insurance of Marijuana Act.
The National Association of Professional Insurance Agents (PIA) noted the SAFE Banking act will offer insurance agents protection from federal prosecution for doing business with cannabis-related enterprises.
Noting PIA doesn’t take a position for or against legalization but views the bill as a matter of respecting state insurance laws, Jon Gentile, vice president of government relations, said in a release: “PIA will advocate for the prompt Senate passage of cannabis safe harbor legislation that protects insurance agents, and we are making the passage of the SAFE Banking Act one of our top priorities.”
Fourth time is the charm?
This is not the first time a version of this bill has passed the chamber, according to a release from Rep. Ed Perlmutter’s (D-Colo.) office.
“After years of bringing up this issue, I’m thrilled to see overwhelming support for this bipartisan, commonsense legislation in the U.S. House once again. I feel optimistic about the path forward for the SAFE Banking Act and, more broadly, reforms to our federal cannabis laws,” said Perlmutter. “Congress needs to act in order to catch up with the will of the majority of voters across this county and to ensure we are reducing the public safety risk for our constituents and communities.”
When the act was initially passed in 2019, it became the first standalone cannabis policy reform bill ever passed by either chamber of Congress, according to the National Cannabis Industry Association (NCIA), which added the legislation passed two times during 2020 as part of pandemic relief packages that were not approved in the Senate.
“We are incredibly grateful to the bill sponsors who have been working with us for the last eight years to make this sensible legislation become law and have shepherded it through the House time and again,” Aaron Smith, NCIA co-founder and CEO, said in a release. “The SAFE Banking Act is vital for improving public safety and transparency and will improve the lives of the more than 300,000 people who work in the state-legal cannabis industry. It will also help level the playing field for small businesses and communities with limited access to capital. It is time for the Senate to start considering the companion legislation without delay.”
In addition to ensuring access to banking systems, the act will also provide protection from money laundering laws for any proceeds derived from legal sales. It also includes provisions to help hemp and hemp-derived CBD businesses, which continue to struggle to gain access to financial services despite the legalization of hemp in the 2018 Farm Bill, according to Perlmutter.
“The Big ‘I’ applauds the House for taking the steps necessary to protect agents and brokers who, of their own accord, choose to do business with cannabis-related legitimate businesses,” Charles Symington, Big “I” senior vice president of external, industry and government affairs, said in a release.
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