Congressional Record, Volume 165 Issue 182 (Thursday, November 14, 2019)

[Congressional Record Volume 165, Number 182 (Thursday, November 14, 2019)]
[Extensions of Remarks]
[Pages E1440-E1442]
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

Thursday, November 14, 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.

National Cannabis Industry Association,

March 26, 2019.
House Committee on Financial Services,
Washington, DC.
The National Cannabis Industry Association (NCIA), the
largest and oldest national trade association dedicated to
protecting state-legal cannabis businesses, defending state
laws, and advancing federal policy reforms, would like to
offer its support of H.R. 1595, the Secure and Fair
Enforcement (SAFE) Banking Act of 2019. On behalf of our
members, we thank the committee and Chairwoman Waters for the
opportunity to markup this legislation and further discuss
providing fair access to banking and financial services for
state-licensed cannabis cultivators, processors, and
retailers throughout the country.
Founded in 2010, NCIA represents nearly 2,000 member-
businesses and tens of thousands of cannabis professionals
committed to replacing criminal marijuana markets with a
responsible and regulated cannabis industry.

[[Page E1441]]

Currently, our industry supports hundreds of thousands of
jobs, tens of millions in tax revenue, and billions in
economic activity. In 2017, the five states that had taxed
and regulated adult-use sales (Alaska, Colorado, Nevada,
Oregon, and Washington) collected more than $790 million in
state tax revenue that year. However, per current federal
law, cannabis remains a Schedule 1 drug under the Controlled
Substances Act. This blocks state-licensed cannabis business
and firms providing ancillary products or services to the
industry from accessing banking services, forcing them to
operate in an all-cash environment. This situation not only
creates an unnecessary public safety risk, it poses an undue
burden on state and local tax and licensing authorities,
which are forced to take large cash payments. These taxes and
licensing fees fund the enforcement of state marijuana laws
as well as school construction, drug education activities,
and infrastructure programs.
In order to operate safely and successfully, businesses
must have access to traditional financial services. For the
cannabis industry, which conducts hundreds of millions of
dollars in transactions across the majority of U.S. states,
the lack of access to financial services creates public
safety hazards, including an increased chance of becoming a
target for robberies, loss of economic opportunity, and
inability to retain workforce talent. Restricting financial
services to licensed cannabis businesses also prevents the
elimination of illicit businesses currently operating in the
grey and black markets. The SAFE Banking Act of 2019 would
offer not only safe harbor for financial institutions that
choose to service cannabis related businesses, but would also
provide much needed clarity and direction from the federal
government.
After nearly a decade of significant regulatory changes at
the state level, now is the time to pass the SAFE Banking Act
of 2019. Ending the conflict between state and federal
cannabis laws will promote a sound and robust financial
system that best supports the economic growth and job
creation driven by the growing number of state-licensed
cannabis businesses across the country.
Sincerely,
Aaron Smith,
Executive Director & Founder.
____

National Cannabis Roundtable,

September 25, 2019.
Hon. Nancy Pelosi,
Speaker of the House, House of Representatives,
Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Minority Leader McCarthy: The
National Cannabis Roundtable (NCR) is proud to offer its
strong support for H.R. 1595, the Secure and Fair Enforcement
Banking Act of 2019 (SAFE). The passage of SAFE represents a
clear, common sense solution to one of the biggest challenges
for one of the fastest growing industries in America.
The National Cannabis Roundtable represents every aspect of
the cannabis supply chain. Our fifteen members operate in 23
states with legal cannabis programs, including the District
of Columbia. We are growers, processors, retailers, wellness
centers, technology companies, investors, entrepreneurs, and
publicly traded companies.
Since California passed Proposition 215 in 1996 which
legalized the use of medical cannabis by those with
debilitating conditions, states around the country have
developed cannabis programs by licensing and regulating
cannabis businesses. Unfortunately, due to the Schedule I
status of cannabis, these businesses have been unable to
access traditional financial services, causing massive public
safety problems and business operations challenges.
The SAFE Act deftly rectifies this problem by allowing
legitimate, licensed cannabis businesses to access financial
services. It provides clarity for financial regulators and
opportunity to entrepreneurs by creating a system of
accessible capital. SAFE also would allow for increased
financial transparency in the cannabis industry allowing law
enforcement to sort out licensed business from illicit
actors.
The bill's lead sponsors Ed Perlmutter (D-CO), Denny Heck
(D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH) have
developed broad bipartisan support for this important
legislation. The SAFE Act is supported by a sweeping
coalition of stakeholders. Activists in the drug policy
community, businesses in the cannabis industry, investors,
state and local law enforcement, banking regulators, and many
other groups.
Currently, 47 states, the District of Columbia, Guam,
Puerto Rico, the U.S. Virgin Islands, the Northern Mariana
Islands and several Indian tribes have some form of legalized
cannabis either through an adult use program, a medical
cannabis program, or through cannabidiol programs.
Additionally, seven states are expected to either create or
expand cannabis programs via ballot initiatives in 2020 and
2021. It is estimated that legal cannabis industry U.S.
consumer spending on legal cannabis reached $10.4 billion
dollars in 2018. Even if no other states reform their laws,
cannabis spending is expected to top $26 billion by 2025. The
SAFE Act ensures that this economic growth can happen in
legitimate channels instead of on the streets.
While there are many more facets of cannabis reform that
must be tackled in the future, the SAFE Banking Act will
provide needed clarity. keep our communities safe, and foster
economic growth and opportunity.
Sincerely,

Saphira Galoob,

Executive Director,
National Cannabis Roundtable.
____

CTF,

March 25, 2019.
Re: CTF Supports the ``Secure And Fair Enforcement Banking
Act of 2019'' or the ``SAFE Banking Act of 2019''

Hon. Maxine Waters,
Chairwoman, Committee on Financial Services, House of
Representatives, Washington, DC.
Hon. Patrick McHenry,
Ranking Member, Committee on Financial Services, House of
Representatives, Washington, DC.
Dear Chairwoman Waters and Ranking Member McHenry: The
Cannabis Trade Federation (CTF), a national coalition of
cannabis-related businesses that represent all aspects of the
industry including cultivators, dispensaries, wholesalers,
distributors, and ancillary businesses, strongly supports
enactment of the SAFE Banking Act, legislation that would
create a federal safe harbor for banks that offer direct or
indirect services to cannabis-related businesses pursuant to
state law. The SAFE Banking Act will benefit law enforcement,
state regulatory bodies, including taxing authorities, and
cannabis-related businesses.
We associate ourselves with the testimony provided to the
Subcommittee on Consumer Protection and Financial
Institutions on February 13, 2019, by Rachel Pross, Chief
Risk Officer for Maps Credit Union, who testified on behalf
of the Credit Union National Association. She correctly
observed:
In the absence of a federal law providing explicit legal
clearance for financial institutions to provide banking
services to the Cannabis industry, it is highly likely that
many of these businesses will be forced to continue operating
outside of the financial mainstream. That outcome increases
the potential of lost tax revenue, increases the likelihood
of criminal thefts in our communities, and deprives both
state and federal law enforcement with important information
about cannabis activity.
She is correct and her observations are obviously true. We
would like to underscore the importance of having cannabis-
related businesses mainstreamed into the financial system to
law enforcement. In short, cash-only businesses are more
susceptible to bad actors, including money laundering, than
are those in the banking system where all anti-money
laundering and Bank Secrecy Act rules are followed and
enforced. This is one reason FinCEN promulgated guidance on
February 14, 2014, regarding ``BSA Expectations Regarding
Marijuana-Related Businesses,'' which remains in effect
today. That guidance noted that it ``should enhance the
availability of financial services for, and the financial
transparency of, marijuana-related businesses.''
As important as that guidance is, banks have not fully
embraced it. Only federal legislation can achieve the type of
transparency and regulatory compliance sought by FinCEN. For
these reasons, we urge the Committee to order the SAFE
Banking Act of 2019 favorably reported so that the full House
of Representatives can consider this important legislation
forthwith.
Sincerely,

Neal Levine,

Chief Executive Officer,
Cannabis Trade Federation.
____

California Cannabis Industry

Association,

[[Page E1442]]

moves these massive revenues into legitimate banks and off
the streets. With access to banking services our businesses
can reinvest in communities, increase of transparency of our
operations, and help facilitate economic growth.
Additionally, SAFE prevents consumers from having to carry
cash to pay for their cannabis and allows them to purchase
with credit cards. SAFE provides clarity for financial
regulators and law enforcement to sort out licensed business
from illicit actors.
The bill's lead sponsors Ed Perlmutter (D-CO), Denny Heck
(D-WA), Steve Stivers (R-OH) and Warren Davidson (R-OH) have
developed broad bipartisan support for this important
legislation. The SAFE Act is supported by a sweeping
coalition of stakeholders. Activists in the drug policy
community, businesses in the cannabis industry, investors,
state and local law enforcement, banking regulators, and many
other groups.
The SAFE Banking Act is the first step of hopefully many in
federal cannabis reforms that allow California and other
states with cannabis programs to become fully on par with
other existing industries.
Sincerely,

Lindsay Robinson,

Executive Director,
California Cannabis Industry Association.
____

Florida Department of

Agriculture and Consumer Services,

February 13, 2019.
House Committee on Financial Services,
Washington, DC.
Dear Chairwoman Maxine Waters and Ranking Member McHenry:
On behalf of Florida's farmers, our medical marijuana
professionals, and consumers, I want to thank you for your
efforts to provide the cannabis industry access to
traditional banking and express my strong support for the
Secure and Fair Enforcement Banking Act (H.R. 2215).
Conflicting guidance from the federal government has
unnecessarily, led to a higher level of risk and hurdles for
businesses in this emerging market. This is an issue that
affected me personally--while running for this office, our
campaign had two bank accounts closed due to my advocacy for
medical marijuana access and cannabis. The absence of
traditional banking services forces state-licensed businesses
to resort to all cash operations, which is inefficient and a
public safety concern. Businesses can't operate proficiently
with irregularities restricting their growth, stability, and
the ability to pay bills, rent, and employees, when their
accounts are inevitably closed. This is an issue impacting
our state and national economy.
One of the important provisions of the recently signed 2018
Farm Bill (the Agriculture Improvement Act of 2018) is the
relisting of hemp as an agricultural commodity. But without
congressional action, continued confusion and misinformation
regarding hemp could discourage financial institutions from
partnering with our farmers on this new commodity.
The Secure and Fair Enforcement Banking Act (H.R. 2215) is
a strong first step in providing legitimate cannabis related
and state-licensed farmers, business, and consumers with
access to an efficient and safe banking system, and
traditional loans and capital markets.
Sincerely,
Nicole Fried,
Commissioner of Agriculture.
____

National Armored Car Association,

September 25, 2019.
Hon. Nancy Pelosi,
Speaker of the House, Senate Committee on Banking, Housing,
and Urban Affairs, Washington, DC.
Hon. Kevin McCarthy,
Minority Leader, Senate Committee on Banking, Housing, and
Urban Affairs, Washington, DC.
Dear Speaker Pelosi and Minority Leader McCarthy: On behalf
of the National Armored Car Association (NACA), I write to
express our support for H.R. 1595, the Secure and Fair
Enforcement (SAFE) Banking Act of 2019. While NACA's members
do not take a position in favor of or opposed to the
legalization of cannabis or marijuana, nor currently service
the U.S. cannabis industry, we support H.R. 1595 because it
would address the existing conflict between federal and state
law with respect to proceeds from marijuana-related
businesses and allow for safer transportation, storage and
oversite of such proceeds.
Formed in 1929, NACA is a business association that brings
together the three major companies of the armored car
industry--Brink's, Garda, and Loomis--with a focus on
protecting and promoting the common interests of the
industry. These three organizations comprise approximately
90% of the armored car industry in the United States, and
NACA members have handled virtually every dollar and coin in
circulation. They provide secure transportation and cash
management services for the Federal Reserve, financial
institutions, state and local governments, and private
businesses and individuals across the United States and
internationally.
Currently thirty-three states and several territories,
including the District of Columbia, Guam, and Puerto Rico,
have legalized the use of cannabis to some extent. However,
federal law prohibits cultivation, distribution, and
possession of marijuana imposing significant legal risks to
financial institutions and ancillary businesses that might
consider providing financial services to the marijuana
industry. Consequently, hundreds of millions of dollars in
cash are being transported and stored outside our banking
system and often without adequate security and oversight. The
lack of available vendors to provide secure transport and
storage of cash increases the risk of criminal activity that
can pose a danger not only to those involved in the cannabis
industry, but the general public. H.R. 1595 would provide
NACA member companies with the needed legal protection and
clarity to safely and securely transport cash in states that
have legalized and regulated cannabis.
We urge members of the House to support H.R. 1595.
Sincerely,
Basil Thomson,
Senior Director, NACA.

____________________