[Congressional Record Volume 167, Number 73 (Wednesday, April 28, 2021)]
[Extensions of Remarks]
[Pages E459-E460]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





                          SUPPORTING H.R. 1996

                                 ______
                                 

                           HON. ED PERLMUTTER

                              of colorado

                    in the house of representatives

                       Wednesday, April 28, 2021

  Mr. PERLMUTTER. Madam Speaker, I include in the Record the following 
letters of endorsement for H.R. 1996, the SAFE Banking Act of 2021.
                                                   April 19, 2021.
     Hon. Charles E. Schumer,
     Majority Leader,
     Washington, DC.
     Hon. Mitch McConnell,
     Minority Leader
     Washington, DC.
     Hon. Nancy Pelosi,
     Speaker of the House,
     Washington, DC.
     Hon. Kevin McCarthy,
     Minority Leader,
     Washington, DC.
     Hon. Sherrod Brown,
     Chair, Senate Committee on Banking, Housing and Urban 
         Affairs, Washington, DC.
     Hon. Pat Toomey,
     Ranking Member, Senate Committee on Banking, Housing and 
         Urban Affairs, Washington, DC.
     Hon. Maxine Waters,
     Chair, House Committee on Financial Services,
     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 under the national banking system. We strongly 
     support the passage of the Secure and Fair Enforcement (SAFE) 
     Banking Act of 2021 (H.R. 1996/S. 910) or similar legislation 
     that would remove the legal uncertainty and allow banks and 
     credit unions to provide services to state-licensed cannabis-
     related businesses.
       We were pleased that the House passed similar legislation 
     in the 116th Congress (H.R. 1595). The SAFE Banking Act of 
     2021 already has more than 165 bipartisan House cosponsors 
     and more than 30 bipartisan Senate cosponsors. The 
     legislation has also received support from more than 30 
     associations.
       Currently, 36 U.S. states, four U.S. territories, and the 
     District of Columbia have legalized the medical use of 
     cannabis. Additionally, 18 states, two territories, and the 
     District of Columbia have legalized recreational use by 
     adults over 21 years of age. Despite legalization of cannabis 
     at the state-level, our financial institutions face enormous 
     legal risks and criminal and civil liability under the 
     Controlled Substances Act. These barriers disincentive 
     financial institutions from providing banking services to 
     state-licensed and regulated cannabis businesses.
       Because few banks and credit unions provide these services, 
     state-licensed cannabis businesses predominantly operate on a 
     cash basis. Without banking services, state-licensed cannabis 
     businesses are unable to write checks, make and receive 
     electronic payments, utilize a payroll provider, or accept 
     credit and debit cards. Cash only businesses pose a 
     significant public safety risk to customers and employees. 
     The cash-only environment also burdens state and local 
     government agencies that must collect tax and fee payments in 
     person and in cash, which creates additional public expenses 
     and employee safety risks.
       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. Many of our states 
     have implemented laws and regulations to reduce these risks 
     while ensuring financial accountability of the cannabis 
     industry. These public safety risks can be further mitigated 
     on the federal level by passing the SAFE Banking Act to 
     provide state-licensed cannabis businesses with access to 
     banking service providers.
       We urge you to pass the SAFE Banking Act of 2021 or similar 
     legislation that would provide a safe harbor for depository 
     institutions that provide a financial product or service to a 
     state-licensed cannabis business in states that have 
     legalized cannabis. We look forward to working with you as 
     legislation progresses to address this urgent public policy 
     and safety concern.
           Sincerely,
         Governor Jared Polis, State of Colorado; Governor Gavin 
           Newsom, State of California; Governor Ned Lamont, State 
           of Connecticut; Governor JB Pritzker, State of 
           Illinois; Governor John Bel Edwards, State of 
           Louisiana; Governor Janet Mills, State of Maine; 
           Governor Charlie Baker, State of Massachusetts; 
           Governor Gretchen Whitmer, State of Michigan; Governor 
           Steve Sisolak, State of Nevada; Governor Phil Murphy, 
           State of New Jersey; Governor Michelle Lujan Grisham, 
           State of New Mexico; Governor Andrew Cuomo, State of 
           New York; Governor Doug Burgum, State of North Dakota; 
           Governor Kate Brown, State of Oregon; Governor Tom 
           Wolf, State of Pennsylvania; Governor Spencer Cox, 
           State of Utah; Governor Albert Bryan, Territory of U.S. 
           Virgin Islands; Governor Ralph Northam, State of 
           Virginia; Governor Jay Inslee, State of Washington; 
           Governor Jim Justice, State of West Virginia; Governor 
           Tony Evers, State of Wisconsin.
                                  ____

                                                   April 19, 2021.
     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: On behalf 
     of the undersigned state bankers associations, representing 
     banks of all sizes; we write to express our support for H.R. 
     1996, the Secure and Fair Enforcement Banking Act (SAFE 
     Banking Act) of 2021. This strongly bipartisan legislation 
     scheduled for consideration on this week's suspension 
     calendar would be an important step to address the conflict 
     between federal and state laws and how banks safely work with 
     legal cannabis and cannabis related businesses.
       Although we do not take a position on the legalization of 
     marijuana, our members are committed to serving the financial 
     needs of their communities--including those that have voted 
     to legalize cannabis. Currently, 36 states covering 70 
     percent of the nation's population have legalized cannabis 
     for medical or adult-use. Despite this ever-growing voter 
     preference, current federal law continues to prevent banks 
     from safely banking these businesses without fear of federal 
     sanctions. As a result, this segment of our local economies 
     is forced to operate on an all-cash basis, which creates 
     serious public safety, revenue administration, and legal 
     compliance concerns in the communities we serve.
       The impact on our local economies could also prove 
     significant, as revenue paid to unrelated industries that 
     provide products and services to state-authorized cannabis 
     businesses such as law firms, accountants and contractors is 
     technically money derived from illegal activities, and thus 
     could be considered money laundering. This raises the 
     significant question of whether financial institutions can 
     bank these ancillary businesses, as such actions could 
     likewise be considered violations of the money laundering 
     laws. Without a change to federal law, that entire portion of 
     economic activity in legal cannabis states may be 
     marginalized from the banking system.
       The SAFE Banking Act is a banking-specific bipartisan 
     solution that would address the reality of the current 
     marketplace and allow banks to serve cannabis-related 
     businesses in states where the activity is legal.
       We urge members of the House of Representatives to support 
     H.R. 1996, the SAFE Banking Act, when this bill comes before 
     the House on this week's suspension calendar.
           Sincerely,
       Alabama Bankers Association, Alaska Bankers Association, 
     Arizona Bankers Association, Arkansas Bankers Association, 
     California Bankers Association, Colorado Bankers Association, 
     Connecticut Bankers Association, Delaware Bankers 
     Association, Florida Bankers Association, Georgia Bankers 
     Association, Hawaii Bankers Association, Idaho Bankers 
     Association, Illinois Bankers Association, Indiana Bankers 
     Association, Iowa Bankers Association.
       Kansas Bankers Association, Kentucky Bankers Association, 
     Louisiana Bankers Association, Maine Bankers Association, 
     Maryland Bankers Association, Massachusetts Bankers 
     Association, Michigan Bankers Association, Minnesota Bankers 
     Association, Mississippi Bankers Association, Missouri 
     Bankers Association, Montana Bankers Association, Nebraska 
     Bankers Association, Nevada Bankers Association, New 
     Hampshire Bankers Association, New Jersey Bankers 
     Association.
       New Mexico Bankers Association, New York Bankers 
     Association, North Carolina Bankers Association, North Dakota 
     Bankers Association, Ohio Bankers League, Oklahoma Bankers 
     Association, Oregon Bankers Association, Pennsylvania Bankers 
     Association, Puerto Rico Bankers Association, Rhode Island 
     Bankers Association, South Carolina Bankers Association, 
     South Dakota Bankers Association, Tennessee Bankers 
     Association, Texas Bankers Association, Utah Bankers 
     Association, Vermont Bankers Association, Virginia Bankers 
     Association, Washington Bankers Association, West Virginia 
     Bankers Association, Wisconsin Bankers Association, Wyoming 
     Bankers Association.

[[Page E460]]

     
                                  ____
                                          US Cannabis Council,

                                   Washington, DC, April 19, 2021.
     Hon. Ed Perlmutter,
     Member of Congress,
     Washington, DC.
     Hon. Steve Stivers,
     Member of Congress,
     Washington, DC.
     Hon. Nydia M. Velazquez,
     Member of Congress,
     Washington, DC.
     Hon. Warren Davidson,
     Member of Congress,
     Washington, DC.
  Dear Representatives Perlmutter, Velazquez, Stivers and Davidson: On 
behalf of the United States Cannabis Council (USCG), I write to you to 
support the swift passage of H.R. 1996, also known as the SAFE Banking 
Act.
  The SAFE Banking Act addresses a crucial problem within the emerging 
cannabis industry: access to regulated financial services. As states 
continue to legalize cannabis, opening new economic opportunities for 
business owners, one problem continues to persist--Black Americans and 
other racial minorities are precluded from the state-legal industry due 
to a lack of financing and barriers to entry.
  By protecting banking institutions that extend financial services to 
the cannabis industry, existing operators and minority-owned businesses 
seeking access into the industry benefit from access to institutional 
capital. Indeed, today's situation is reminiscent of a previous era in 
which minorities were routinely redlined out of access to banking 
credit, capital, and cash. The SAFE Banking Act would alleviate the 
problem of minority equity and access with the cannabis industry in 
crucial ways. Further, it protects the 321,000 employees directly 
affected by the cannabis industry's lack of access and whose 
retirement, insurance, and banking accesses are constantly in peril.
  It is imperative that the SAFE Banking Act is passed by the House of 
Representatives. In doing so, the House would take a meaningful first 
step in establishing a more equitable cannabis industry within the US, 
ensuring minorities that were most affected by the War on Drugs are 
properly represented. The US Cannabis Council voices its support for 
H.R. 1996 and commends the bill authors and Speaker Pelosi for your and 
her attention to this important issue.
           Sincerely,

                                            Steven W. Hawkins,

                                          Interim President & CEO,
     U.S. Cannabis Council.

                          ____________________