[Congressional Record Volume 167, Number 75 (Friday, April 30, 2021)]
[Extensions of Remarks]
[Pages E468-E470]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          SUPPORTING H.R. 1996

                                 ______
                                 

                           HON. STEVE STIVERS

                                of ohio

                    in the house of representatives

                         Friday, April 30, 2021

  Mr. STIVERS. Madam Speaker, I include in the Record the following 
letters of endorsement for H.R. 1996, the SAFE Banking Act of 2021.


                                        Due Process Institute.

                                                   Washington, DC.

                  Support H.R. 1996--SAFE Banking Act

       Due Process Institute supports the SAFE Banking Act, H.R. 
     1996, and urges you to vote in support of this bipartisan 
     bill when it comes to the House floor this evening.
       Nearly every state has legalized a form of marijuana, 
     including medical marijuana or cannabidiol (CBD). Seventeen 
     states and the District of Columbia have either 
     decriminalized marijuana or legalized recreational use for 
     adults. The cannabis industry is growing. The American 
     cannabis industry saw $17.5 billion in sales in 2020, a 46 
     percent increase over the previous year. The industry, which 
     already supports 250,000 jobs, is expected to continue to 
     grow, particularly as more states legalize marijuana.
       Although nearly every state has taken some step to 
     liberalize marijuana laws, Congress has not yet taken action 
     to support their self-governance, which creates a problem for 
     businesses operating legally under state law. Because of the 
     federal treatment of marijuana, the owners or employees of 
     legitimate cannabis-related state businesses are forced to 
     make cash-only sales rather than doing business with 
     federally regulated banks. Additionally, proceeds from any 
     legitimate state cannabis-related business can currently be 
     considered unlawful ``proceeds'' from a crime and subject to 
     federal anti-money laundering and forfeiture laws.
       The SAFE Banking Act provides safe harbor and other 
     protections for financial institutions--banks and credit 
     unions--that transact with legitimate cannabis-related and 
     hemp-related businesses. (Hemp was federally legalized in 
     2018.) The bill also protects ancillary business entities 
     that transact with legitimate cannabis-related legitimate 
     businesses and creates a regulatory framework.
       The legislative history of the SAFE Banking Act shows broad 
     bipartisan support. In the 116th Congress, the SAFE Banking 
     Act passed with 229 Democrats and 91 Republicans voting for 
     the bill. The SAFE Banking Act the House will vote on this 
     evening has 168 co-sponsors, boasting diverse support from 
     across the ideological spectrum.
       Due Process Institute encourages Members to vote YES on the 
     SAFE Banking Act, H.R.1996.
       Due Process Institute is a bipartisan nonprofit that works 
     to honor, preserve, and restore principles of fairness in the 
     criminal legal system.
                                  ____

     Hon. Ed Perlmutter,
     House of Representatives,
     Washington, DC.
     Hon. Nydia Velazquez,
     House of Representatives,
     Washington, DC.
     Hon. Steve Stivers,
     House of Representatives,
     Washington, DC.
     Hon. Warren Davidson,
     House of Representatives,
     Washington, DC.
     Hon. Jeff Merkley,
     U.S. Senate,
     Washington, DC.
     Hon. Steve Daines,
     U.S. Senate,
     Washington, DC.
       Dear Representatives Perlmutter, Velazquez, Stivers, and 
     Davidson and Senators Merkley and Daines:
       On behalf of the members of the Electronic Transactions 
     Association (ETA), I am writing in support of the bipartisan 
     Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking 
     Act). We appreciate your leadership on addressing the 
     conflict between federal and state laws to allow states that 
     have legalized medical or recreational use of cannabis to 
     bring that commerce into the banking system.
       ETA is the leading trade association for the payments 
     technology industry, representing over 500 companies that 
     offer electronic transaction processing products and 
     services. ETA's members include financial institutions, 
     mobile payment service providers, payment processors, mobile 
     wallet providers, and non-bank online lenders that make 
     commercial loans, primarily to small businesses, either 
     directly or in partnership with other lenders. ETA member 
     companies are creating innovative offerings in financial 
     services, revolutionizing the way commerce is conducted with 
     secure, convenient, and rewarding payment solutions and 
     lending alternatives--employing millions of Americans and 
     enabling over $22 trillion in payments in 2019.
       Forty-seven states, four U.S. territories, and the District 
     of Columbia have legalized some form of recreational or 
     medical cannabis, including CBD. Yet current law restricts 
     legitimate licensed cannabis businesses from accessing 
     financial industry services and products, resulting in 
     businesses operating in all cash--posing a serious public 
     safety risk for communities.
       The conflict between state and federal laws forces 
     businesses to operate on a cash-only basis and has created 
     significant legal and compliance concerns for financial 
     institutions that wish to provide banking services to 
     cannabis related businesses in states where it is currently 
     legal. The SAFE Banking Act would allow legitimate cannabis 
     businesses to access the safety and security of the banking 
     ecosystem in states that have legalized cannabis. This 
     legislation is an important step toward enabling financial 
     services for cannabis-related businesses. By directing FinCEN 
     and the federal banking regulators to issue for financial 
     institutions doing business with cannabis-related legitimate 
     businesses. Having access to the banking system makes it 
     easier for businesses to track revenues for taxation 
     purposes, decreases a public safety threat as cash intensive 
     businesses are often targets for criminal activity, and 
     allows proper tracking of finances for BSA/AML compliance.
       ETA takes no position on the legalization or 
     decriminalizing cannabis at the state or federal level for 
     medicinal or recreational uses. However, ETA does support 
     legislation that would resolve the conflict between state and 
     federal laws to allow financial institutions to serve 
     cannabis related businesses in states where these businesses 
     are legal under state law.
       ETA is pleased to support the SAFE Banking and urges 
     Congress to quickly consider this important issue.
           Sincerely,
                                                     Jeff Patchen,
     Manager of Government Affairs.
                                  ____



                             National Armored Car Association,

                                   Washington, DC, 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 National Armored Car Association (NACA), I write to 
     express our support for H.R. 1996, the Secure and Fair 
     Enforcement (SAFE) Banking Act of 2021. While NACA's members 
     do not take a position in favor of or opposed to the 
     legalization of cannabis or marijuana, we support H.R. 1996 
     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, GardaWorld, 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-six states and several territories, 
     including the District of Columbia, Guam, and Puerto Rico, 
     have legalized the

[[Page E469]]

     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. 1996 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. 1996.
           Sincerely,
                                                    Basil Thomson,
     Executive Director, NACA.
                                  ____

                                             Independent Community


                                           Bankers of America,

                                                   March 18, 2021.
     Hon.  Ed Perlmutter,
     House of Representatives,
     Washington, DC.
     Hon. Warren Davidson,
     House of Representatives,
     Washington, DC.
     Hon. Steve Stivers,
     House of Representatives,
     Washington, DC.
     Hon. Nydia Velazquez,
     House of Representatives,
     Washington, DC.
       Dear Representatives Perlmutter, Warren, Stivers, and 
     Velazquez: On behalf of community banks across the country, 
     with more than 52,000 locations, I write to thank you for 
     introducing the Secure and Fair Enforcement Banking Act of 
     2021 (SAFE Banking Act). In the last Congress, the SAFE 
     Banking Act passed the House by a broad bipartisan vote. We 
     are pleased to reiterate ICBA 's strong support for this 
     legislation, which is essential for the ongoing ability of 
     community banks to effectively serve their communities.
       The 2020 election saw Arizona, Montana, New Jersey, and 
     South Dakota join 12 states and the District of Columbia in 
     fully legalizing adult recreational cannabis use. Virginia 
     followed suit in 2021. Cannabis is legal for medical use in 
     36 states. As more states legalize cannabis for medical and/
     or recreational use, it is critically important that 
     cannabis-related businesses (CRBs) have access to services 
     provided by the traditional banking system.
       The current conflict between state and federal law with 
     regard to cannabis has created increasingly significant legal 
     and compliance concerns for banks that wish to provide 
     banking services to CRBs in jurisdictions where cannabis is 
     legal. Legal and regulatory uncertainty has curtailed access 
     to the traditional banking system for CRBs and forced them to 
     operate mostly in cash. Cash-only businesses, especially 
     those with a high volume of revenue, pose a significant risk 
     to public safety.
       The SAFE Banking Act would create a safe harbor from 
     federal sanctions for financial institutions that serve 
     cannabis-related businesses (CRBs) in states and other 
     jurisdictions where cannabis is legal. Importantly, this safe 
     harbor would extend to banks that serve the many ancillary 
     businesses that serve CRBs such as landlords, accountants, 
     utilities providers, and others that may be paid in funds 
     ultimately derived from cannabis sales. These ancillary 
     businesses may be difficult to identify in states that have 
     legalized cannabis, and potentially create a legal and 
     regulatory challenge for even those banks that choose not to 
     serve CRBs directly.
       Thank you for introducing the SAFE Banking Act of 2021. We 
     look forward to working with you to advance this important 
     legislation.
           Sincerely,
                                             Rebeca Romero Rainey,
     President & CEO.
                                  ____



                                 Insured Retirement Institute,

                                   Washington, DC, March 31, 2021.
     Hon. Ed Perlmutter,
     House of Representatives,
     Washington, DC.
     Hon. Steve Stivers,
     House of Representatives,
     Washington, DC.
     Hon. Nydia Velazquez
     House of Representatives,
     Washington, DC.
     Hon. Warren Davidson,
     House of Representatives,
     Washington, DC.
       Dear Representatives Perlmutter, Stivers, Velazquez, and 
     Davidson: The Insured Retirement Institute (IRI) writes to 
     express our support for H.R. 1996, the Secure and Fair 
     Enforcement (SAFE) Banking Act of 2021. The bill would 
     provide protection and insulation from liability for both 
     participants and institutions offering and administering 
     retirement plans or individual retirement accounts for the 
     employees of cannabis companies and associated businesses 
     regulated and licensed by a state.
       Nearly all the states have enacted laws which have either 
     legalized or decriminalized marijuana for medical and 
     recreational use by individuals. As states continue to 
     legalize cannabis and license and regulate associated 
     industries, projections estimate the legal cannabis industry 
     will reach a value of $100 billion by 2030, a 63.9 percent 
     increase over its 2020 estimated worth. With this projected 
     financial growth, consequently the number of Americans 
     employed in this field is also anticipated to rapidly 
     increase. In their Jobs Report 2021, Leafy found that the 
     legal marijuana industry supports 321,000 full-time 
     equivalent jobs as of January 2021. In 2020 and despite the 
     impacts of the COVID-19 pandemic, the legal cannabis industry 
     saw a 32 percent increase in year-over-year job growth or 
     more than 77,000 jobs. As a result, more Americans are now 
     employed in the legal cannabis industry than as electrical 
     engineers, Emergency Medical Technicians, or dentists.
       However, as marijuana remains a Schedule I Substance under 
     the Controlled Substances Act and an illegal substance at the 
     federal level, access to essential financial and banking 
     services is essentially blocked for this growing workforce. 
     The risk of running afoul of provisions contained in the Bank 
     Secrecy Act and federal anti-money laundering laws has left 
     many financial institutions unwilling to provide their 
     services to this industry including the offering of 
     retirement savings plans as a benefit to the employees.
       In addition, we are witnessing a continuing shift away from 
     employers providing defined-benefit pensions as a benefit for 
     their employees. As a result, the responsibility of preparing 
     for retirement is being placed squarely on the shoulders of 
     America's workers. However, recent research conducted by IRI 
     has shown that savings rates among workers remain low. In 
     fact, only 45 percent of Baby Boomers and 40 percent of 
     Generation Xers have nothing saved for retirement and of the 
     Millennials with retirement savings, half have saved less 
     than $10,000.
       A significant factor contributing to the lack of savings is 
     that most workers do not have access to an employment-based 
     savings plan. Research conducted by the Bureau of Labor 
     Statistics has shown that 60 percent of full-time workers at 
     small and medium-sized businesses--of which many legal 
     cannabis businesses would qualify as--do not have access to 
     one of the many types of employment-based retirement plans.
       By simply having access to workplace retirement savings 
     opportunities, workers are more likely to participate and 
     save. According to a report by the PEW Charitable Trust, 72 
     percent of all workers aged 22 and up who are eligible for 
     participation will enroll in a workplace defined contribution 
     plan when one is offered. Enrollment increases to 85 percent 
     of those 22 and older and eligible if an employer-matching 
     contribution is available. Enabling workers at small and 
     medium-sized businesses--particularly those in an industry 
     growing as rapidly as legal cannabis--will help put more of 
     America's workers on the path toward a financially secured 
     and dignified retirement and help alleviate the anxiety many 
     are feeling about their future financial security during 
     their retirement years.
       IRI has a long history of supporting and advocating for the 
     enactment of bipartisan, common-sense solutions to help 
     expand opportunities for workers to save for their 
     retirement. As such, providing clarity and certainty to 
     better facilitate the offering of retirement plans for the 
     workers of legally licensed cannabis companies through the 
     enactment of the SAFE Banking Act was included in our 2021 
     Federal Retirement Security Blueprint. As Congress considers 
     this legislation to enable greater access to retirement 
     savings for Americans, we welcome the opportunity to work 
     with you and your staff to advance this measure.
       We thank you for your leadership in pursuing this 
     legislation.
           Sincerely,

                                                 Paul Richman,

                                              Chief Government and
     Political Affairs Officer.
                                  ____

                                                   March 18, 2021.
       Dear Representatives Perlmutter, Stivers, Velazquez, and 
     Davidson: We, the undersigned U.S. trade associations, write 
     to express support for the SAFE Banking Act of 2021. 
     Collectively, we represent a majority of the companies, 
     agents, and brokers offering property-casualty, life, title, 
     and reinsurance (collectively, ``insurers'') in the U.S. We 
     appreciate your leadership in seeking needed clarity for 
     insurance transactions related to cannabis businesses that 
     are otherwise permissible under state law.
       The insurance industry is potentially exposed to liability 
     arising from the differences of the legal treatment of 
     cannabis and cannabis products under federal and state law 
     and regulation at the state level. However, with the 
     inclusion of key language from the Clarifying Law Around 
     Insurance of Marijuana Act, sponsored by Representatives 
     Velazquez and Stivers and Senators Menendez, Paul, and 
     Merkley, the SAFE Banking Act's safe harbor provisions would 
     prevent federal criminal prosecution of and civil liability 
     for agents, brokers, and insurers, their officers, directors 
     or employees when engaging in the business of insurance in 
     states that have legalized cannabis in some form.
       By resolving the legal uncertainty presented by the dueling 
     state and federal treatment of cannabis, the insurance 
     industry can serve both cannabis-related legitimate 
     businesses (CRLBs) and other commercial and personal lines 
     consumers who may have a direct or indirect relationship to 
     state-legalized cannabis, and still be in compliance with the 
     law. Insurers must also continue to

[[Page E470]]

     satisfy all applicable state statutory or regulatory 
     requirements, such as those pertaining to consumer 
     protections and claims payments.
       We greatly appreciate your leadership, and we look forward 
     to continuing to work with you and Congress to ensure our 
     industry is not caught between conflicting obligations under 
     federal and state law.
       Sincerely,
       American Land Title Association (ALTA), American Council of 
     Life Insurers (ACLI), American Property Casualty Insurance 
     Association (APCIA), The Council of Insurance Agents & 
     Brokers (CIAB), Independent Insurance Agents & Brokers of 
     America (IIABA), National Association of Mutual Insurance 
     Companies (NAMIC), National Association of Professional 
     Insurance Agents (PIA), Reinsurance Association of America 
     (RAA), Wholesale & Specialty Insurance Association (WSIA).

                          ____________________