SAFE Banking: What’s Next?

1. SAFE Banking: What’s Next? Andrew Kline Director of Public Policy, NCIA Michelle Rutter Government Relations Manager, NCIA

2. Legislation • In 2017, the bill was reintroduced and renamed the Secure and Fair Enforcement (SAFE) Banking Act. • By the end of that session, the bill had 95 cosponsors. In the Senate, the bill had 20. • This year, the SAFE Banking Act was again introduced by our longtime champions Reps. Ed Perlmutter (D-CO) and Rep. Denny Heck (D-WA) and Sens. Jeff Merkley (D-OR) and Cory Gardner (R-CO).

3. SAFE Banking Act • When the bill was introduced this year, it had 106 cosponsors, including 10 Republicans. • In the Senate, it was introduced with 21. • This session, the bill formed a broad coalition that was key in getting us to where we are. • National Association of Attorneys General (NAAG), United Food and Commercial Workers (UFCW), Credit Union National Association (CUNA), Independent Community Bankers Association (ICBA), America Bankers Association (ABA), Mid-size Bank Coalition of America (MBCA), National Bankers Association (NBA), Electronic Transaction Association (ETA), Law Enforcement Action Partnership (LEAP), The Real Estate Roundtable (RER), National Association of REALTORS, Safe and Responsible Banking Alliance (SARBA), American Land Title Association (ALTA), American Property Casualty Insurance Association (APCIA), The Council of Insurance Agents and Brokers (CIAB), Reinsurance Association of America (RAA), Independent Insurance Agents and Brokers of America (Big “I”), Wholesale Specialty Insurance Association (WSIA), National Association of Mutual Insurance Companies (NAMIC), Rural County Representatives of California (RCRC), Brinks, Inc., International Council of Shopping Centers (ICSC), National Association of Professional Employer Associations (NAPEA), National Cannabis Industry Association (NCIA), Minority Cannabis Business Association (MCBA), National Cannabis Roundtable (NCR) and the Cannabis Trade Federation (CTF). Additionally, the Mayors Coalition to Push for Marijuana Reform, 38 State Attorneys General, 20 Governors, and 18 State Banking Supervisors have endorsed the legislation.

4. The SAFE Banking Act • What does the bill do, exactly? • The SAFE Banking Act seeks to harmonize federal and state law by prohibiting federal banking regulators from: • Threatening or limiting a depository institutions access to the Deposit Insurance Fund • Discouraging, prohibiting, or penalizing depository institutions from dealing with the cannabis industry • Taking any action against a loan made to a covered business • Forcing a depository institution to halt providing any kind of banking services.

5. The SAFE Banking Act • Things SAFE covers: • providing and/or extending credit and servicing loans • extending or brokering leases of real property • engaging in depository-taking activities, transmitting or exchanging funds on behalf of a consumer • selling, providing, or issuing stored value or payment instruments • providing check cashing, check collection or check guaranty services • providing payments or other financial data processing products or services • collecting debt related to any consumer financial product or service.

6. Appropriations • Back in 2014, there was a House Floor vote on a banking appropriations amendment. • That measure passed 231-192 (though it was not enacted into law after the Senate declined to consider the provision). • According to Marijuana Moment, that means that Democratic support for a marijuana banking fix increased by 43 votes, or 21 percent, from 2014 to 2019. Republican support grew by 46 votes, or 68 percent, during that time period.

7. Getting SAFE to the finish line • The SAFE Banking Act had a House hearing in February • There was then a markup in the Spring, where the bill passed out of the House Financial Services Committee by a vote of 45-15. • Longtime cannabis opponent and Senate Banking Chairman Mike Crapo (R-ID) even held a hearing in July!

8. Getting SAFE to the finish line • Last week we made history in DC! The SAFE Banking Act became the first standalone cannabis bill to ever be voted on. • We passed the bill out of the House: 321-103

9. Getting SAFE to the finish line

10. Getting SAFE to the finish line • According to Marijuana Moment, all told, 44 members voted differently this year as compared to in 2014, including 37 who flipped from “no” to “yes” and two who went in the other direction. • Two lawmakers who previously voted “yes”—Reps. Elijah Cummings (D-MD) and Jim Clyburn (D-SC)—were absent for this latest vote. • One former “no” vote, Rep. Rick Crawford (R-AR), was absent for this vote. And finally, two members who were absent in 2014 voted “no” this round, Reps. Scott DesJarlais (R-TN) and Bradley Byrne (R-AL).

11. What’s next in the Senate? • The SAFE Banking Act currently has 1/3 of the Senate cosponsoring it (33 members). • There are two key players in the Senate for us: Senate Banking Committee Chairman Mike Crapo (R-ID) and Majority Leader Mitch McConnell (R-KY). • "This is an issue in which I have seen strong support not only across the country from various banking institutions, even the small community banks in states that don't have the issue, but also among colleagues on both sides of the aisle," Chairman Crapo said last week. "I think there will be good support for it."

12. What’s next in the Senate? • We are looking forward to working with the Senate Banking Committee to get a markup and advance this bill to the Senate floor. • Majority Leader Mitch McConnell (R-KY) poses a real challenge. • Hemp provisions that NCIA helped in getting into the bill will be critical in getting SAFE scheduled for the Senate floor.

13. Thank you for attending this webinar! Andrew Kline Director of Public Policy, NCIA Andrew@thecannabisindustry.org Michelle Rutter Government Relations Manager, NCIA Michelle@thecannabisindustry.org