On Thursday, The United States House of Representatives reintroduced a critical cannabis banking bill. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH) brought the SAFE banking act back to the House along with the support of over 100 additional cosponsors. The bill, which is expected to effortlessly advance, previously passed the house in 2019 and 2020 but was squashed by the Republican-controlled senate. However, now that Democrats control both the White House and Senate, the bill has a real chance of passing.
What Is The SAFE Banking Act?
The Secure and Fair Enforcement (SAFE) Banking Act would allow legitimate cannabis businesses acting within the confines of the law access to the same banking services as other companies.
Currently, despite the industry generating millions of dollars in tax revenue, cannabis entrepreneurs are seen more like criminals in the in the eyes of major financial institutions. Not only are cannabis operations effectively barred from traditional lending, but it’s also nearly impossible for these businesses to legally open a bank account. As a result, dispensaries and other cannabis businesses are obligated to deal primarily in cash-only transactions, making them prime targets for criminals. According to Representative Perlmutter,
“Thousands of employees and businesses across this country have been forced to deal in piles of cash for far too long. It is the responsibility of Congress to step up and take action to align federal and state laws for the safety of our constituents and communities.”
The bill remains largely the same as it was in 2019 and 2020, but with added language that explicitly includes hemp and CBD businesses as well as additional clarification on safe harbor laws and cannabis insurance.
The SAFE Banking Act’s Path Forward
In 2019, The SAFE Banking Act was introduced as a stand-alone bill. Despite overwhelmingly passing the House, it would never see the Senate floor. A year later, House Democrats attempted to embed the bill in part of their larger Coronavirus relief package, pointing out the inherent dangers of operating an “essential business” in a cash-only capacity during the height of a catastrophic pandemic. After considerable criticism from Republicans, the House eventually dropped the SAFE Banking Act from the relief bill’s final draft. Perlmutter harkened back to this subject in his Thursday address, saying,
“In many states, the industry was deemed essential yet forced to continue to operate in all cash, adding a significant public health risk for businesses and their workers. As we begin our economic recovery, allowing cannabis businesses to access the banking system would also mean an influx of cash into the economy and the opportunity to create good-paying jobs.”
The Senate is expected to introduce its own version of the bill this week. For the last two years, this is where the SAFE Banking Act has predominantly run into challenges. However, this time around, the Senate has a more favorable makeup—split 50-50 between Republicans and Democrats, with Vice President Kamala Harris acting as the tiebreaker. Perlmutter remains optimistic the bill will make it all the way to President Biden’s desk. He said,
“I think this is going to get a full legislative review, and we’re going to get a good product, a good piece of legislation, and send it to the White House.”
TSA (Transportation Security Administration) now allows CBD (Cannabidiol) in airports and on flights. TSA clarifies that the CBD products must be hemp-derived “under the Agriculture Improvement Act 2018.” They recently updated a section of their website “What Can I Bring?” regarding medical marijuana shown below.
Possession of cannabis and “certain cannabis infused products” are still prohibited, but the wording opens up the possibility of some cannabis infused products being allowed. TSA has made it clear several times that their security officers are not searching for illegal drugs, including marijuana, when screening luggage. This tweet from February illustrates that, though their policy on hemp-derived CBD oil has changed.
The gurus at Whole Foods Market have spoken: hemp products, already incredibly popular, will be a top 10 food trend in 2019.
In a press release, the company said it relied on “seasoned trend-spotters” who have “more than 100 years of combined experience in product sourcing, studying consumer preferences and participating in food and wellness industry exhibitions worldwide,” to compile its new report on what to expect next year.
So what will be flying off the shelves in 2019? According to the experts, lots and lots of hemp.
Via Whole Foods Market.
“Hemp hearts, seeds and oils are nothing new to food and body care lovers—they’re in everything from waffle mix to dried pastas,” the company wrote. “But a new interest in the potential benefits stemming from other parts of hemp plants has many brands looking to explore the booming cannabis biz.”
“While CBD oil is still technically taboo (prohibited in food, body care and dietary supplements under federal law), retailers, culinary experts and consumers can’t miss the cannabis craze when visiting food industry trade shows, food innovators conferences or even local farmers markets.”
(For the record, there’s a lot of confusion and disagreement about the federal legality of hemp-derived CBD oil, which you can read more about here.)
The trend won’t stop at CBD, either. Apparently phytocannabinoids, those compounds that are present in cannabis but also in other plants, are “becoming more visible and prevalent.”
“It’s clear that hemp-derived products are going mainstream, if not by wide distribution, then by word of mouth!”
Hemp products that the trend-spotters recommended include a line of health supplements containing phytocannabinoids, a face cream comprised of hemp stem cells and organic shelled hemp seeds.
While cultivating marijuana’s non-intoxicating cousin is currently illegal in the U.S. outside of exceptions for state-approved hemp research programs authorized under the 2014 Farm Bill, there’s a strong possibility that industrial hemp will be broadly legalized—possibly by the end of the year—once the House and Senate reconcile their versions of a new Farm Bill and put it on the president’s desk.
Senate Majority Leader Mitch McConnell (R-KY), who introduced the provision, issued a “guarantee” last week that hemp legalization will be included in the final legislation.
That would give the hemp business an even greater boost going into the new year.
Senate Majority Leader Mitch McConnell (R-KY) is guaranteeing that the 2018 Farm Bill will include his industrial hemp legalization provision after the Senate and House reach a compromise—ideally by the end of the year.
“If there’s a Farm Bill, it’ll be in there, I guarantee that,” he told reporters on Friday.
McConnell said he’s visited several hemp processors over the past few months, and one thing that occurred to him was the international implications of hemp legalization. Executives based in countries like Australia and major investors have expressed interest in the hemp business, he said, signaling the crop’s immense potential.
“I don’t want to overstate this—I don’t know if it’s going to be the next tobacco or not—but I do think it has a lot of potential,” he said. “And as all of you already know, in terms of food and medicine but also car parts. I mean, it’s an extraordinary plant.”
When industrial hemp is legalized, it will be “lightly regulated” by the U.S. Department of Agriculture, McConnell stressed. He added that . the Justice Department wouldn’t be involved and the “only federal involvement would be [hemp farmers would] be eligible for crop insurance.”
And because prospective hemp cultivators would have to register their business, local law enforcement would be able to identify legitimate grows, he said. That way they can find individuals growing “the cousin,” McConnell said, referencing marijuana.
See the video of McConnell’s hemp legalization guarantee, about 13:15 into the clip below:
The senate majority leader’s hemp legalization plan got an endorsement from his counterpart in the House last month. Outgoing House Speaker Paul Ryan (R-WI) discussed the benefits of cannabidiol (CBD) and said he backed efforts to legalize hemp.
“And by the way, there’s a lot of industrial uses for hemp that I understand from talking to Mitch McConnell is a big deal to Kentucky agriculture,” Ryan said. “And we’re all in favor of that as well.”
While McConnell said lawmakers are working to pass a farm bill before the year’s end, he also acknowledged that a separate provision concerning work requirements for food stamp recipients has caused delays.
The top Republican in the U.S. House has issued a surprise endorsement of a key marijuana ingredient’s medical benefits as well as the uses of industrial hemp.
“It has proven to work,” House Speaker Paul Ryan (R-WI) said of cannabidiol (CBD) on Tuesday, specifying that it “helps reduce seizures.”
“We do this in Wisconsin,” he said, referring to his home state’s limited CBD law. “That that oil, I think works well.”
The speaker, who is not running for reelection and is retiring from Congress early next year, shared that his own mother-in-law used a synthetic form of cannabinoids, presumably the THC pill Marinol, while dying from melanoma and ovarian cancer.
“That’s off the record,” he said jokingly, referencing TV cameras at the well-attended Kentucky rally where he was appearing in support of Rep. Andy Barr (R-KY), who is locked in a tight reelection race.
Ryan, responding to a medical marijuana question from a woman whose husband passed away, also proactively took the opportunity to speak up in support of industrial hemp.
“And by the way, there’s a lot of industrial uses for hemp that I understand from talking to Mitch McConnell is a big deal to Kentucky agriculture,” he said. “And we’re all in favor of that as well.”
Ryan’s endorsement for hemp comes at a key time. Congressional leaders are currently negotiating differences in the House and Senate versions of the Farm Bill. The Senate proposal contains language championed by McConnell, the GOP majority leader, that would legalize hemp. The House bill has no such provisions.
If the top Republican in either chamber is now vocally in support of ending the prohibition on marijuana’s non-intoxicating cousin, it seems more and more likely that the House will accept the Senate’s hemp language.
That said, don’t count the outgoing speaker as a die-hard marijuana supporter, even when it comes to medical uses.
“Theres no THC in that oil,” he said, even though most CBD preparations do have small amounts of the intoxicating cannabis compound. “That is not medical marijuana.”
In response to the medical marijuana question, Ryan also touted passage this year of the Right to Try Act—which appears to allow certain seriously ill people to use marijuana and other currently illegal drugs such as psilocybin and MDMA, though he did not mention those implications directly.
See the original article published on Marijuana Moment below: