Why Is The SAFE Banking Act So Important?

Published on July 26, 2020, By Marie Graham

Marijuana News Politics

One of the most important pieces of cannabis-related legislation, the Secure and Fair Enforcement Banking Act (SAFE Banking Act), has the chance to be included in the next round of COVID-19 relief legislation in the United States. The House approved the inclusion in May when representatives passed the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act), and it will soon be the Senate’s turn.

The United States Senate has never approved legislation regarding banking services for cannabis businesses before. Many Senators may not have the spirit or understanding to make sure this legislation is enacted, so they need to hear from you, the constituents. Now is the time to contact your Senators. Tell them to support the inclusion of the SAFE Banking Act. Click here to find the contact information for your state’s Senators, and send them an email telling them to support the SAFE BANKING Act. Don’t wait. It only takes a few minutes to voice your opinion. Your letter may be the one to sway the vote.

Are you unsure of what to write? Below is a great sample script from NORML that you can copy and paste into your email. You can also click here to be redirected to NORML’s website where all you have to do is enter your information and it will send your state’s Senators this exact email for you.

Script:

I urge you to support the Secure and Fair Enforcement Banking Act (SAFE Banking Act), HR 1595 / S. 1200, to allow state-licensed marijuana-related businesses to engage freely in relationships with banks and other financial institutions. 

Presently, more than 30 states authorize the licensed production and dispensing of medical cannabis. ten states permit similar commercial activities and retail sales of marijuana to all adults. Yet, thousands of these licensed and regulated businesses do not have access to the banking industry and are unable to accept credit cards, deposit revenues, or write checks to meet payroll or pay taxes. This situation is untenable. No industry can operate safely, transparently, or effectively without access to banks or other financial institutions. 

Congress must move to change federal policy so that these growing number of state-compliant businesses, and their consumers, may operate in a manner that is similar to other legal commercial entities.

Allowing tightly regulated marijuana businesses the ability to access the banking system will help reduce the threat of crime, robbery, and assault in our communities and keep the cash out of cartels. I urge you to support and cosponsor The SAFE Banking Act.

Why is the SAFE Banking Act so important?

While cannabis remains federally illegal as a Schedule I drug under the Controlled Substances Act, 33 states and Washington D.C. have enacted laws legalizing the medical and/or recreational use of the plant. Schedule I drugs are considered to be the most dangerous of all substances, and they are described as “drugs with no currently accepted medical use and a high potential for abuse.” Methamphetamine and cocaine are categorized as Schedule II substances, meaning they are technically defined as being less dangerous and less addictive than marijuana.

The fact that cannabis and tetrahydrocannabinol (THC) are listed among the ranks of ‘most dangerous’ with heroin and methaqualone (Quaaludes) simply does not make sense when there are more than four million registered medical marijuana patients in the United States, and the majority of Americans are in favor of legalization. Nonetheless, financial institutions and insurance providers are federally regulated, so they simply cannot work with cannabis businesses at this time without risking their operating licenses or federal prosecution. The SAFE Banking Act would greatly improve this situation.

Hundreds of thousands of Americans in more than half of the United States are working within a state-regulated, legitimate industry which generates billions of dollars in tax revenue each year, yet these businesses are denied these imperative services. This is not right. It is not fair, and it needs to change. 

This also means that cannabis businesses and their employees, which were deemed ‘essential’ like grocery stores and pharmacies in nearly every state in which they operate, were denied access to the federal Payment Protection Program (PPP). 

Dangers of Cash Only Operations

When a business is denied access to regular banking services like processing debit and credit cards or writing checks, it leaves them vulnerable. Without a business bank account, state-regulated dispensaries, cultivators, and product producers are forced to operate only in cash. Having large amounts of cash on hand makes these businesses targets for armed robbery which on more than one occasion has resulted in the death of employees.

In the times of the COVID-19 pandemic, just handling cash is also potentially dangerous. While it is thought that the virus is most easily spread from person to person, the Centers for Disease Control and Prevention (CDC) warns that it is possible to catch it from handling infected items like cash. 

Contact Your Senators

It is imperative that you communicate with your Senators. Without hearing from you, the people they represent, they may not know how many people support the SAFE Banking Act. If you want to write an email or make a quick call, click here to find the contact information for your state’s Senators. Many Senators are also active on Twitter, so Tweet at them if that is your preferred method of communication.

This post was originally published on July 26, 2020, it was updated on July 29, 2020.

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