House supporters of marijuana banking legislation said Friday that they are confident the House again will pass the measure and are increasingly confident that the Senate will do the same.
“We’ve got to get it out of the House first,” Rep. Ed Perlmutter (D-Colo.) told reporters in a virtual news conference Friday. Perlmutter, a long-time advocate of marijuana banking, on Thursday introduced his bill with 107 House cosponsors.
“I think it’s going to get a full legislative review,” he added, saying that he expects the Senate to consider some version of the bill.
The House passed the bill, 321-103 during the last Congress; the Senate did not consider it.
CUNA immediately endorsed the bill on Thursday; NAFCU traditionally has said the issue deserves consideration but has not endorsed it.
This year, House sponsors included a provision that they said should gain Republican support in the House and Senate. The provision would prohibit financial institutions, including credit unions, from refusing to do business solely based on reputational risk. The provision is an apparent reference to “Operation Choke Point,” an Obama Administration plan that opponents said allowed financial institutions to refuse to do business with gun manufacturers and dealers.
“We should get great Republican support for this bill,” Rep. Steve Stivers (R-Ohio) told reporters on the call.
The marijuana banking bill would provide a safe harbor for banks and credit unions that choose to provide financial services to cannabis-related businesses in states where marijuana is legal. Sponsors said that because credit unions and banks are reluctant to provide services to marijuana-based companies, all business is conducted with cash. They said that makes the businesses particularly vulnerable to crimes.
Former NCUA Chairman Rodney Hood has said that credit unions should not be sanctioned merely for conducting business with marijuana companies as long as proper records are kept for possibly suspicious activity.
Last month, the NCUA issued a cease-and-desist order for Live Life Federal Credit Union, a Michigan institution, saying that the credit union must institute record-keeping and reporting requirements that have been issued by the Financial Crimes Enforcement Network and other agencies.
Perlmutter said he has spoken to Senate Banking Chairman Sherrod Brown (D-Ohio) about the measure, adding that he believes the Senate may make changes to the bill. Brown has said that he wants marijuana banking legislation to be connected to comprehensive sentencing legislation.
CUNA President/CEO Jim Nussle sent House sponsors of the bill a letter endorsing the measure.
“The SAFE Banking Act of 2021 would offer narrowly targeted federal protections for credit unions and other financial institutions accepting deposits, extending credit, or providing payment services to an individual or business engaged in cannabis related commerce in states where such activity is legal with a safe harbor, so long as they are compliant with all other applicable laws and regulations,” he wrote. “Furthermore, the SAFE Banking Act provides safe harbor to credit unions and their employees who are not aware if their members or customers are involved in this business.”
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