CCIA Calls For Help Supporting The SAFE Banking Act

CCIA Calls For Help Supporting The SAFE Banking Act

The California Cannabis Industry Association (CCIA) is calling for cannabis businesses to join them in imploring Speaker Pelosi to prioritize the Secure and Fair Enforcement Banking Act (SAFE Banking Act).

Click this link to add your company name and logo to the letter that will be sent to Speaker Pelosi later today. The cutoff time of today, August 4 at 5 pm is quickly approaching. Act now.

What is the SAFE Banking Act?

The SAFE Banking Act is a measure that will allow financial institutions, like banks and credit unions, and insurance providers to work with state-legal, legitimate cannabis businesses without fear of federal prosecution.

Currently, these service providers are not able to work with cannabis businesses because cannabis remains federally illegal under the Controlled Substances Act. More than 30 states, Washington D.C., Guam, and U.S. Virgin Islands have enacted either medicinal or recreational legalization amendments. Cannabis businesses deserve the same access to banking and insurance services as any other legitimate business. The federal government cannot ignore the will of the people, and lawmakers need to hear from you to know that you want them to support the SAFE Banking Act.

This is the email statement from the CCIA about the plan to send a letter:

Now is the time to raise our voices and fight for SAFE Banking on behalf of the entire cannabis community. We have a narrow window to implore Speaker Pelosi to prioritize this legislation. Please lend your name to this crucial effort by 5 pm on 8/4!

CCIA and The Liaison Group have been working tirelessly behind the scenes on SAFE Banking. Our efforts in the spring with California Delegation leaders Correa, Porter and Lieu, were crucial to SAFE making it into the Heroes Act.

SAFE Banking has passed out of the House on two occasions, the latest being part of the Heroes Act (H.R. 6800), however, this bill is yet to be passed by the Senate and signed into law. We need our leadership in California to negotiate that SAFE language remains in the COVID relief act!

We need SAFE Banking to ensure that BIPOC (Black, Indigenous, People of Color) owned businesses, especially women, have equitable access to funding and for the safety of our employees and our communities. We know that the fight for social justice and cannabis reform are deeply intertwined and that cannabis justice is racial justice. We cannot hope to repair our communities through reinvestment without the appropriate tools, including SAFE Banking.

CCIA will be submitting a letter on behalf of our members to urge Speaker Pelosi to help fight for SAFE Banking. Please use the link below to add your company name and logo by 5 pm 8/4.

https://cacannabisindustry.formstack.com/forms/ccia_safe_banking_letter

We’re in this fight together!

Below is a copy of the letter that the CCIA will send to Speaker Pelosi today:

August 5, 2020

The Honorable Nancy Pelosi 
U.S. House of Representatives 
Washington, DC 20515

Dear Speaker Pelosi:

For the safety of our employees and our communities, we the undersigned implore you to ensure the SAFE Banking Act remains part of COVID relief. As you know, the SAFE Banking passed out of the House on two occasions. The first was standalone bill H.R. 1595 and the second as part of the Heroes Act (H.R. 6800), however, this bill is yet to be passed by the Senate and signed into law. Upon reviewing the Senate response to Heroes, we were disappointed to see SAFE Banking not included, but want to make sure that this important piece of legislation is part of a final negotiated package. We need SAFE Banking to ensure that BIPOC (Black, Indigenous, People of Color) owned businesses, especially those owned by women, have equitable access to funding. Most notably, BIPOC owners who have been most adversely impacted by the pandemic compared to their white counterparts. Below are just some reasons among many that stress the importance of this relief.

  • Los Angeles’s social equity program, one of the few in the state, was designed to promote equitable ownership in the cannabis industry, but this program has had considerable challenges due to an imbalance of wealth. Although it was intended that Social Equity applicants have the opportunity to be first to market, a group of said applicants were forced to file a lawsuit to achieve fairness in a flawed process, which has now been settled. This is just the first step in an attempt to achieve equity. The majority of Social Equity applicants have not been able to afford the delayed process, nor the start-up costs associated with launching a cannabis business. 
  • BIPOC operators lack access to the capital that is essential to start cannabis businesses, so establishing loan programs would help with this burden. However, even if the SBA were to set up a loan program, this could not be effectuated without access to banks. 
  • Unfortunately, in the states that have equity programs written into their cannabis statutes, BIPOC owners fall prey to predatory business arrangements in which larger cannabis companies will be effectively running the businesses through a management services agreement while the BIPOC owner becomes a figurehead. 
  • Women and BIPOC face significant barriers to accessing investment dollars. Every year women of color get less than 1% of total venture capital funding. Further, data from 2019 indicates that only 200 Latinx and Black individuals nationwide were able to raise over $1 million in venture capital. This number is for all industries, not just cannabis. 
  • The bill is unquestionably part of a holistic approach to ending the War on Drugs, and its devastating effects on communities of color. The longer that BIPOC entrepreneurs have to wait to enter this industry, the greater disadvantage they are at because of larger companies’ ability to build their brands and customer loyalty. 
  • SAFE Banking reduces cash motivated crimes. Cannabis businesses and employees are routinely targeted, robbed, and sometimes attacked because of the large amounts of cash that they are forced to deal with.
  • Lastly, SAFE Banking as included in the Heroes Act (H.R 6800) calls for two diversity studies for the cannabis industry. While these studies will largely tell us what we currently know (that non-white representation in the industry is disproportionately low), this will create an important baseline for future conversations around legalization and ensuring the industry is equitable. 

We know that the fight for social justice and cannabis reform are deeply intertwined and that cannabis justice is racial justice. We cannot hope to repair our communities through reinvestment without the appropriate tools, including SAFE Banking. The events of recent months have shown us that this bill is more important than ever. We urge its swift passage to help our economy and our communities.

Sincerely,

Lindsay Robinson
Executive Director 
California Cannabis Industry Association (CCIA)

Conrad Gregory 
CCIA Board President 
Senior Vice President Harborside

Swetha Kaul
CCIA Board Vice President

Marijuana ‘Farmers Markets’ Won’t Happen In California Yet After Bill’s Failure

Marijuana ‘Farmers Markets’ Won’t Happen In California Yet After Bill’s Failure

Popular marijuana events in California like the Emerald Cup will take on a different flavor than hoped for this year, after a bill that would have allowed licensed growers to sell directly to consumers at temporary events was defeated in the state Legislature.

Cannabis producers like the small and medium growers in the northern California counties that make up the Emerald Triangle have for years sold directly to consumers at “marijuana farmer’s markets” and events like the Emerald Cup, a long-running end-of-the-harvest celebration.

But under current state law following the passage of Prop. 64, which legalized recreational marijuana in 2016, direct sales are no longer allowed unless a grower also has a retail sales permit—for which a small operation may not qualify, even if they can afford it—or if they conduct sales in tandem with a licensed retailer.

Assembly Bill 2641, introduced by Assemblyman Jim Wood (D-Santa Rosa) would have allowed the state Bureau of Cannabis Control to issue temporary licenses for “on-site sales and consumption of cannabis” at temporary events.

The bill died for the year after it was held in committee this week.

According to a committee analysis, it was opposed by major California cannabis brands like Canndescent, a large-scale cultivator, and by the United Cannabis Business Association, which represents Los Angeles and Orange County-area retail dispensaries.

Supporters included county governments in Mendocino and Humboldt counties, where the economy relies heavily on small-scale marijuana growers, and the California Cannabis Industry Association.

With its failure, small and medium growers without sales permits may be shut out from end-of-year sales events. Coming in a year of falling prices and restricted access to retail, some small growers are expected to go out of business, industry advocates say.

“I’m really hopeful we’ll still have awesome events, but they’re not going to be the same behind the scenes,” Hezekiah Allen, executive director of the California Growers’ Association, which sponsored the bill, told Marijuana Moment on Friday.

Of 900 licensed growers in California that would have been able to sell at events like the Emerald Cup, Allen said he expects 400 to go out of business this year regardless. Of the rest, the livelihoods of about half rely on temporary sales events, he said.

“For years, these types of events have been lifelines for small growers,” he said. “For the smallest licensed growers, these are life or death.”

“There’s a few hundred members who won’t be here next year because we lost that bill.”

Other marijuana-related bills did pass the committee process before a legislative deadline this week and will go for votes on the floors of the state Assembly and Senate. A bill must pass both chambers before it can go to Gov. Jerry Brown (D) for signature.

Bills that advanced include:

*SB 1294, which would create a statewide equity program to encourage and assist people of color and other small operators to enter the marijuana industry

*SB 829, which would create a new license to allow for medical cannabis products to be given away free of charge (a “compassion care license”)

*SB 1409, which would allow for state agriculture authorities to create an industrial-hemp farming program

*AB 1863, which would allow marijuana businesses to make certain tax deductions

*SB 311, which clarifies the commercial marijuana distribution process

Also this week, legislation which would have created state-chartered banks to serve the cannabis industry was held for review, effectively killing it for the year.

“This is a serious public safety issue that deserves swift resolution,” Sen. Bob Hetrzberg (D), that bill’s sponsor, said in a press release. “We’ve got barrels of cash buried all over the state, businesses being ransacked, and it’s clear that the federal government won’t act. It’s a shock to me that the state government may not act this year either – especially after this bill passed through nearly every step with bipartisan support and little to no opposition.”

See the original article published on Marijuana Moment below:

Marijuana ‘Farmers Markets’ Won’t Happen In California Yet After Bill’s Failure

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