Pot stores, lawmakers call on Congress to pass SAFE Banking Act. Here’s what the law would do
How can an industry that is not federally legal yet get protection from a federal law?
That is a question some lawmakers and Washington cannabis dispensary operators are trying to figure out.
While medicinal cannabis is now allowed in 37 states, the District of Columbia and four territories, according to the National Conference of State Legislatures, the plant is not yet federally legal, which presents problems for those legal businesses that are looking for banking options that will allow them to rely less on cash, which makes them a popular target for robberies.
But lately, momentum is growing in Congress to pass the Secure and Fair Enforcement (SAFE) Banking Act, a federal law that would allow cannabis businesses to have access to banking services at financial institutions. Federal regulators would no longer be able to take punitive measures against banks that choose to operate with legitimate cannabis businesses under the proposed measure.
Associated businesses, such as lawyers or landlords for cannabis companies, also would be protected from being penalized by federal regulators for dealing with those businesses.
Maggie Doyle, operations manager for Green Lady, which has two locations in Olympia and one in Lynnwood, told McClatchy that the SAFE Banking Act would simply allow dispensaries such as hers to operate more responsibly.
“There’s already so many laws and restrictions around marijuana that we deal with on a daily basis, but I don’t think that putting our money in a bank should be one of those things that’s restricted,” Doyle said.
As the law currently stands, cannabis is considered a “high-risk” business, Doyle said. She explained that while there are some banking options for cannabis businesses in Washington state, the fees associated with those services are extremely high, which can be a burden for some store owners.
There also aren’t many options available for the few banks willing to provide services in the state.
This, in turn, puts dispensaries at risk for robberies because of the amount of cash on hand.
“Green Lady is more than happy to pay those fees, we don’t want any money in the store, we want to be banking,” said Doyle. “It’s a safety issue for us … but there are other companies that don’t want to pay those fees and that’s why they’re not banking, and it sucks because that just puts a bigger target on them.”
Despite Green Lady trying to take their own precautions, their store in Lynnwood was recently robbed at gunpoint. Doyle said all three locations have been robbed multiple times.
Not having access to banks also means that legitimate cannabis businesses such as growers and dispensaries are often unable to secure and access credit, or allow customers to pay with credit or debit cards.
The SAFE Banking Act was initially introduced in 2013 by U.S. House Rep. Ed Perlmutter, a Democrat from Colorado. The bill once again passed the U.S. House in April 2021 with a bipartisan 321-101 vote. Republicans signed on in support with 106 votes. The bill was eventually added to the America COMPETES Act of 2022, which passed the U.S. House in February.
On April 25, several Seattle City Council members and Seattle Mayor Bruce Harrell sent Congress a letter urging them to pass the legislation. They noted that the inability for cannabis businesses to have secure banking options has created “an urgent and deadly public health crisis.”
The letter added that data compiled by the Craft Cannabis Coalition showed that 80 cannabis-related robberies have occurred so far this year, surpassing all robberies combined from 2020 and 2021.
“These robberies are becoming more frequent and more aggressive, with three people being killed during cannabis store robberies last month,” they said. “Enacting the SAFE Banking Act would help our communities reduce these dangerous cash-motivated crimes and protect the lives of cannabis store employees.”
Gov. Jay Inslee and Washington Attorney General Bob Ferguson also called on Congress to act in an April op-ed published by McClatchy newspapers.
“This has become a matter of life and death. Congress can act today to pass the SAFE Banking Act,” they said. “Every day of delay means business owners are incurring extraordinary costs to hire their own armed security. Retail store employees are being traumatized, assaulted and even killed.”
They urged U.S. Senators to send the SAFE Banking Act to President Biden.
“We’ve been asking for access to banking services since 2013,” they added. “We’re witnessing the horrific and tragic consequences of Congress’s failure to act.”
U.S. Sen. Patty Murray held a press conference in Tukwila on April 20 where she said she would work to ensure the SAFE Banking Act would be negotiated into the final legislation.
“I’ve been pushing the federal government — particularly my Republican colleagues — to catch up with Washington state,” Murray said. “I am working to update our laws so that these legal small businesses have a safe way to do business. I am urging every one of my colleagues to come together so that we can finally pass the SAFE Banking Act.”
Doyle said that with more states legalizing marijuana, it is important to get a law like this on the books.
“Once it becomes legal in all 50 states, which I do think it is going to, this is going to be a bigger nightmare for everyone if they wait until then to try and take these steps,” she said.
This story was originally published May 1, 2022 at 5:00 AM.
