Update: The House passed the SAFE Banking Act by a majority of 321-103 on September 25, 2019. Next, the bill will go to the Senate, and if passed, will need to be signed by the President to be officially coded into law.
The cannabis industry is one of the most highly regulated industries in the country. It is also one of the highest-taxed and most profitable. However, unlike other billion-dollar industries, companies operating in legal state-level cannabis markets do not have access to traditional banking services. From having a place to store their money to having processors to handle sales of their products, the issues caused by lack of access to banking are numerous. Luckily, according to recent reports, a vote to resolve the banking issue could happen as early as next month.
The Secure and Fair Enforcement Banking Act, also known as the SAFE Banking Act, will receive a vote during the last week of September. This is according to a plan announced by House Majority Leader Steny Hoyer to the Democratic caucus. During a closed-door meeting, it was determined that the vote would be made utilizing what is known as “suspension of the rules.” This procedure is often implemented when there are noncontroversial bills that need to pass quickly.
Under “suspension of the rules,” the Secure and Fair Enforcement Banking Act will need to receive the support of 290 members of the chamber to pass. Currently, the SAFE Banking Act has over 200 co-sponsors. One of the benefits to the “suspension of the rules” procedure is that no amendments are allowed to be made to the legislation. The bill has already received support as it cleared with success through the House Financial Services Committee back in March. The Senate Banking Committee is also set to hold a vote on cannabis banking legislation in the near future.
Veriheal has satisfied hundreds of thousands of patients nationwide
According to the text of the official bill, the “Secure And Fair Enforcement Banking Act of 2019” or the “SAFE Banking Act of 2019” is a bill “to create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses, and for other purposes.” The bill was first introduced on March 7th, 2019 in the U.S. House of Representatives by Rep. Ed Perlmutter. Here is what it will accomplish if passed.
Essentially, if passed, the SAFE Banking Act would make it so that legal cannabis businesses could have the same access to banking as any other business without fear of the federal government intervening.
If cannabis businesses operating within compliance in-state markets could have access to banking, not only would it solve many issues for them from a business perspective, but it would also make the regulated industry much safer. As it stands right now, most cannabis businesses operate as cash-only entities. As you can probably imagine, this causes mass security risks.
There is no reason that these legal businesses should have to pay to have extra security on site because there are thousands of dollars in cash in the stores from sales. Nor should dispensary owners have to risk transporting and storing thousands in cash at their home because they can’t put it in the bank. Nor should they have to pay thousands, sometimes even hundreds of thousands of dollars in taxes to the IRS in cash. I could go on, but I think you get my point.
The cannabis industry is worth billions, and like any other sector, businesses operating in the legal cannabis industry should have full access to banking services. Share if you agree and remember to contact your political leaders and tell them to vote YES on SAFE!
Blunts: What are they exactly, and how do they affect your body? If you’re interested in smoking blunts—or already smoke them—this guide is for you. We’ll cover everything you need to know about this popular cannabis intake method, including how they’re made, how they differ from spliffs and joints, risks of use, and alternative intake…
Cannabis edibles are a preferred method of consuming cannabis by both retail consumers and medical cannabis patients alike. But just how long do they last? Let’s explore the shelf life of edibles, how to store them, and what to do if they go bad. What Are Edibles? Common Types of Edibles How Long Do Edibles…
Navigating the laws on traveling with medical marijuana (MMJ) is incredibly confusing with the current global stance on cannabis. In the U.S., some states are okay with you bringing your medicine with you as long as you can prove your patient status, while other states are staunchly against it altogether, leaving MMJ patients in a…
People have been smoking joints for a long time. The first rolling papers surfaced around the early 1500s in Alcoy, Spain. These weren’t like the rolling papers we know today though. To start, these papers were intended for tobacco, not cannabis. They were made of hemp along with other textiles and lacked an adhesive gum…
Cannabis seeds, aka beans, come in a lot of different varieties. On top of countless different strains to choose from, there are regular cannabis seeds, feminized cannabis seeds, auto-flowering cannabis seeds, and ruderalis cannabis seeds. Ruderalis cannabis seeds are the least common out of the group, generally only used by breeders. Regular cannabis seeds produce…
