Source: United States Senator for Maine Angus King
WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine) has cosponsored bipartisan, bicameral legislation that would ensure Maine’s legal cannabis businesses can access the same banking services utilized by all other businesses. The Secure and Fair Enforcement (SAFE) Banking Act would resolve a key logistical and public safety problem for states that have legalized medicinal or recreational cannabis.
“A business that follows all state laws should be able to access the banking system – that’s pretty commonsense,” said Senator King. “As Maine’s cannabis industry has grown in recent years, it has been forced to operate on a cash-only basis. This presents a number of safety, logistical, and legal concerns. The SAFE Banking Act addresses this unnecessary challenge and ensures that all our legal Maine businesses can access the banking system. It’ll bring more customers to local banks, improve public safety, and support the success of Maine’s many small business entrepreneurs.”
“The Maine Bankers Association applauds Senator King for co-sponsoring this legislation. The SAFE Banking Act will help ease bureaucratic and safety concerns for cannabis operations in Maine,” said Jim Roche, President, Maine Bankers Association “Right now, cannabis enterprises are forced to do business in cash, which often creates potentially dangerous circumstances for them. With passage of this bill in Congress, more small businesses will have access to capital through the safe and established banking system throughout the state. A win for everyone!”
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.
To address the safety concerns resulting from these state legal businesses being shut out of banking services, 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 an 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. Additionally, the SAFE Banking Act would require banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational cannabis policies.
In the Senate, this legislation is cosponsored by U.S. Senator Jeff Merkley (D-OR), Steve Daines (R-MT), Jacky Rosen (D-NV), Bill Cassidy (R-LA), Kirsten Gillibrand (D-NY), Cynthia Lummis (R-WY), Brian Schatz (D-HI), Lisa Murkowski (R-AK), Edward J. Markey (D-MA), Kevin Cramer (R-ND), Ben Ray Luján (D-NM), Dan Sullivan (D-AK), Catherine Cortez Masto (D-NV), Rand Paul (R-KY), Tammy Duckworth (D-IL), John Fetterman (D-PA), Ron Wyden (D-OR), Kyrsten Sinema (I-AZ), Alex Padilla (D-CA), Dick Durbin (D-IL), Peter Welch (D-VT), Mark Kelly (D-AZ), Michael Bennet (D-CO), Patty Murray (D-WA), Tina Smith (D-MN), Amy Klobuchar (D-MN), Elizabeth Warren (D-MA), Tim Kaine (D-VA), Debbie Stabenow (D-MI), Bernie Sanders (I-VT), Bob Menendez (D-NJ), Chris Coons (D-DE), John Tester (D-MT), Mark Warner (D-VA), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Gary Peters (D-MI), and Chris Murphy (D-CT).
In the House, this legislation is cosponsored by U.S. Representatives Dave Joyce (R-OH-14), Earl Blumenauer (D-OR-03), Warren Davidson (R-OH-08), Jim Himes (D-CT-04), Brian Mast (R-FL-21), Barbara Lee (D-CA-12), Guy Reschenthaler (R-PA-14), Nydia Velázquez (D-NY-07), Lori Chavez-DeRemer (R-OR-05), and Lou Correa (D-CA-46).
Bill text can be found here.