[Congressional Record Volume 165, Number 160 (Tuesday, October 8, 2019)]
[Extensions of Remarks]
[Pages E1262-E1263]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





       LETTERS OF ENDORSEMENT FOR H.R. 1595, THE SAFE BANKING ACT

                                  _____
                                 

                            HON. DENNY HECK

                             of washington

                    in the house of representatives

                        Tuesday, October 8, 2019

  Mr. HECK. Madam Speaker, I include in the Record the following 
letters of endorsement for H.R. 1595, the SAFE Banking Act, which 
passed the House on September 25, 2019.

         Commonwealth of Pennsylvania, Department of Banking and 
           Securities,
                               Harrisburg, PA, September 24, 2019.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives,
     Washington, DC.
     Hon. Kevin McCarthy,
     Republican Leader, House of Representatives,
     Washington, DC.
       Dear Speaker Pelosi and Leader McCarthy: As state banking 
     supervisors, we are responsible for ensuring the safety and 
     soundness of state-chartered banks and credit unions, as well 
     as the regulation of non-depository financial service 
     providers that may provide services to these entities. The 
     financial services industry in state authorized marijuana 
     jurisdictions is unable to effectively service the needs of 
     this new and growing industry because of conflicting federal 
     and state regulation for marijuana.
       Medical marijuana is available to 67 percent of the 
     country's population, and 11 states have legalized adult 
     recreational use. This significant portion of the country's 
     population is funding a growing cannabis industry. The lack 
     of federal safe harbors or authorization for financial 
     service providers is creating commercial risk for the 
     legitimate marijuana industry, due to the lack of financial 
     servicing of these monies.
       This absence of servicing encourages a grey economy, as the 
     industry's participants are unable to use safe, regulated, 
     and verifiable money services. Until financial institutions 
     can serve the industry without violating federal laws, then 
     tax collection, consumers, and the financial system will 
     remain at risk.
       Until Congress can take broader action to more 
     comprehensively address cannabis, we support the passage of 
     H.R. 1595 to provide a safe harbor for depository 
     institutions that supply financial services to legitimate 
     marijuana businesses and allow for the transparent and safe 
     banking of the marijuana industry.
       We urge a YES vote on H.R. 1595.

       Robin L. Wiessmann, Secretary, Pennsylvania Department of 
     Banking and Securities; Candace Frank, Bank Commissioner, 
     Arkansas State Bank Department; Kenneth Boldt, Bank 
     Commissioner, Colorado Division of Banking; Kevin B. Hagler, 
     Commissioner, Georgia Department of Banking and Finance; Iris 
     Ikeda, Commissioner of Financial Institutions, Hawaii 
     Department of Commerce and Consumer Affairs; Deborah Hagan, 
     Secretary, Illinois Department of Financial and Professional 
     Regulation; Anita G. Fox, Director, Michigan Department of 
     Insurance and Financial Services; John Ducrest, Commissioner, 
     Louisiana Office of Financial Institutions; Lloyd P. 
     LaFountain III, Superintendent, Maine Bureau of Financial 
     Institutions; Mary Gallagher, Commissioner, Massachusetts 
     Division of Banks; Melanie Hall, Commissioner, Montana 
     Division of Banking and Financial Institutions; Christopher 
     Moya, Director, New Mexico Financial Institutions Division; 
     Lise Kruse, Commissioner, North Dakota Department of 
     Financial Institutions; Elizabeth K. Dwyer, Superintendent of 
     Financial Services, Rhode Island Department of Business 
     Regulation; Charles Clark, Director, Washington Department of 
     Financial Institutions; Dawn E. Holstein, Commissioner, West 
     Virginia Division of Financial Institutions; Kathy 
     Blumenfeld, Secretary-designee, Wisconsin Department of 
     Financial Institutions.
                                  ____

                                                    June 13, 2019.
     Hon. Mitch McConnell,
     Majority Leader,
     Washington, DC.
     Hon. Nancy Pelosi,
     Speaker of the House,
     Washington, DC.
     Hon. Mike Crapo,
     Chair, Senate Committee on Banking,
     Housing and Urban Affairs, Washington, DC.
     Hon. Maxine Waters,
     Chair, House Committee on Financial Services,
     Washington, DC.
     Hon. Charles E. Schumer,
     Minority Leader,
     Washington, DC.
     Hon. Kevin McCarthy,
     Minority Leader,
     Washington, DC.
     Hon. Sherrod Brown,
     Ranking Member, Senate Committee on Banking, Housing and 
         Urban Affairs, Washington, DC.
     Hon. Patrick McHenry,
     Ranking Member, House Committee on Financial Services, 
         Washington, DC.
       Dear Congressional Leaders: As our States' chief 
     executives, we urge Congress to pass legislation allowing 
     states with legalized medical or adult-use cannabis to 
     operate safely and under the scrutiny of the national banking 
     system. We strongly support the passage of the Secure and 
     Fair Enforcement (SAFE) Banking Act (H.R. 1595) and (S. 1200) 
     or similar legislation that would remove the legal 
     uncertainty for banks and credit unions, reducing their risk, 
     enhancing public safety, and increasing financial 
     transparency.
       We were pleased that the House Financial Services Committee 
     held a subcommittee hearing on cannabis and financial 
     services on February 13, and we were especially encouraged to 
     see that H.R. 1595 passed the full committee on a strong 
     bipartisan basis on March 28. We urge the full House to pass 
     this legislation to help provide banking services to state-
     licensed cannabis businesses.
       State and federal governments have a shared interest in 
     upholding the rule of law, protecting public safety, and 
     transitioning markets out of the shadows and into our 
     transparent and regulated banking system. Without access to 
     banking services, state-licensed cannabis businesses operate 
     predominantly on a cash basis. This poses a significant 
     public safety risk to customers and employees. Additionally, 
     because banking services are barred, these businesses are 
     unable to write checks, make and receive electronic payments, 
     utilize a payroll provider, or accept credit and debit cards. 
     The cash-only environment puts an additional burden on state 
     and local government agencies that must collect tax and fee 
     payments, in person and in cash, incurring additional public 
     expenses and employee safety risks.
       Currently, thirty-four U.S. states, three U.S. territories, 
     and the District of Columbia have legalized the medical use 
     of cannabis. Additionally, ten states and the District of 
     Columbia have legalized recreational use by adults over 21 
     years of age. Despite legalization of cannabis at the state-
     level--in many cases to provide medical treatment--our 
     financial institutions face enormous barriers, legal risks, 
     and criminal and civil liability under the Controlled 
     Substances Act that prevent them from providing banking 
     services to state-licensed businesses. As a result, very few 
     banks and credit unions will provide these services, leaving 
     many businesses in this sector unbanked.
       Many of our states have implemented laws and regulations 
     that ensure accountability of the cannabis industry. However, 
     without banking services, cannabis businesses are less able 
     to obey the law, pay taxes, and follow these important 
     regulations. The public safety risks posed by these cash-only 
     businesses can be mitigated through access to banking service 
     providers.
       To adequately address these issues, we urge Congress to 
     pass legislation, such as the SAFE Banking Act (H.R. 1595) 
     and (S. 1200), that would provide a safe harbor for 
     depository institutions that provide a financial product or 
     service to a cannabis business in states that have legalized 
     it. We look forward to working with you as legislation 
     progresses to address this urgent public policy concern.
           Sincerely,
         Philip D. Murphy, Governor, New Jersey; Jay Inslee, 
           Governor, Washington; Tony Evers, Governor, Wisconsin; 
           Larry Hogan, Governor, Maryland; Jim Justice, Governor, 
           West Virginia; Gary Herbert, Governor, Utah; Michelle 
           Lujan Grisham, Governor, New Mexico; Ralph S. Northam, 
           Governor, Virginia; Tim Walz, Governor, Minnesota; JB 
           Pritzker, Governor, Illinois; Steve Sisolak, Governor, 
           Nevada; Ned Lamont, Governor, Connecticut; Leon 
           Guerrero, Governor, Guam; Doug Burgum, Governor, North 
           Dakota; Jared Polis, Governor, Colorado; Kate Brown, 
           Governor, Oregon; Janet Mills, Governor, Maine; Tom 
           Wolf, Governor, Pennsylvania; Albert Bryan Jr., 
           Governor, Virgin Islands; Gretchen Whitmer, Governor, 
           Michigan.
                                  ____

                                               Global Alliance for


                                            Cannabis Commerce,

                                                   Costa Mesa, CA.

                 GACC Statement on the SAFE Banking Act

       The Global Alliance for Cannabis Commerce (GACC) announces 
     its endorsement of the Secure and Fair Enforcement (SAFE) 
     Banking Act.
       The SAFE Banking Act is sponsored by Representatives Ed 
     Perlmutter (D-CO), Denny Heck (D-WA), Steve Stivers (R-OH), 
     Warren Davidson (R-OH), and over 200 other members of the 
     U.S. House of Representatives, and Senators Jeff Merkley (D-
     OR), Cory Gardner (R-CO), and nearly thirty other members of 
     the U.S. Senate.
       Cannabis banking issues have long been both a significant 
     hamper on industry growth vis-a-vis access to capital and a 
     public safety risk--including the risk of kidnap, torture, 
     and mutilation for the purposes of extortion--by compelling a 
     cash-laden industry.
       But beyond the well-documented industry issues cannabis 
     entrepreneurs and small businesses encounter, the lack of 
     banking access puts a significant onus on the 200,000-plus 
     employees of U.S. cannabis businesses. Cannabis businesses 
     have extreme logistical difficulty providing benefits to 
     employees, providing a payroll system, and applying 
     withholdings. Oftentimes, GACC member-business employees are 
     forced to live cash lifestyles without access to proper 
     retirement or healthcare savings. We urge the swift passage 
     of this act.
       ``The questions lawmakers have to grapple with in 
     legalizing cannabis are serious. The job of the federal 
     government now is not to upset the existing multi-billion 
     dollar U.S. cannabis market and to allow state markets to 
     flourish through wise use of its commerce

[[Page E1263]]

     powers.''--GACC CFO Will Senn (Founder of Urbn Leaf)
       Contact: Randal John Meyer, Executive Director, Global 
     Alliance for Cannabis Commerce, 
     ExecutiveDirector@GlobalCannabis Commerce.Org.

                          ____________________