WASHINGTON, D.C. – Sen. Sherrod Brown, the newly seated chair of the Senate Banking, Housing and Urban Affairs Committee, says he’d be willing to consider moving on legislation that would allow the cannabis industry access to the banking system if the measure is coupled with sentencing reform for drug offenses.
The Ohio Democrat said helping the nation cope with the coronavirus pandemic will be his committee’s top priority, followed by providing emergency assistance for renters facing eviction and homeowners facing foreclosure, and support for public transit, including rural bus systems. He told reporters Thursday that his committee’s first hearing will be about how the pandemic has disproportionately affected communities of color.
The U.S. House of Representatives in 2019 overwhelmingly passed legislation that would allow banks and credit unions to handle financial transactions for legal, state-licensed cannabis businesses without fear of federal sanctions because marijuana is still considered illegal under federal law. The bill didn’t go anywhere in the U.S. Senate because of opposition from the previous chair of Brown’s committee, Idaho Republican Mike Crapo, a marijuana legalization opponent. Crapo said the bill didn’t address “the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.”
Brown said he discussed the Secure And Fair Enforcement (SAFE) Banking Act last week with a group of Colorado Congress members.
“I am willing to look at moving on the SAFE Act, but with it needs to come sentencing reform,” Brown said. “I don’t think we move on legalization the way that Colorado and some other states want us to, unless we really look more seriously at who’s in prison for how long for those kinds of offenses and we don’t do one without the other.”
Brown said the sentencing reform he desires would have to go through the Senate Judiciary Committee.
“We’re not going to move without working with the Judiciary Committee on that at the same time,” said Brown.
National Cannabis Industry Association spokesman Morgan Fox said the difficulties that cannabis businesses have accessing banking make it difficult for aspiring small cannabis businesses to get loans. Cannabis businesses that can’t access to banks must work in cash, which targets them for robbery, necessitates large security expenses, and requires them to pay bills for utilities, taxes, and supplies in cash.
After the cannabis banking bill stalled in the Senate, Fox said it was included in a House coronavirus relief package that did not become law. Fox said cannabis businesses were declared essential during the pandemic in nearly every state where they operate, but they were not eligible for Small Business Administration loans or loans under the Paycheck Protection Program.
“Providing access to banking would help them keep operating, employing people and contributing to local and state economies,” says Fox, adding that Ohio’s cannabis market was valued at $58 million in 2019. He said his 1,500-member trade group hopes the banking legislation will make it into the next coronavirus assistance packages that move through Congress.
The SAFE Banking Act’s top Republican cosponsors in 2019 were Ohioans Steve Stivers of Columbus and Warren Davidson of Miami County. A statement from Davidson declared the bill “defends civil liberties.”
“Passing this bill keeps the right perspective: No federal regulator should block Americans’ lawful access to the financial system,” said Davidson. “This principle holds true, whether you are talking about firearms or cannabis.”
The bill has not yet been reintroduced in the current session of Congress, which started in January.
Read more:
Ohio’s Sen. Sherrod Brown chides Sen. Rand Paul for not wearing a mask on the Senate floor
Ohio Republicans vote against removing former QAnon adherent Marjorie Taylor Greene from committee assignments
Senate Banking Committee approves Rep. Marcia Fudge’s nomination to be Housing and Urban Development Secretary
Ohio’s Jim Jordan endorsed QAnon-linked Rep. Marjorie Taylor Greene and continues to defend her
Rep. Jim Jordan will cheer on former President Trump from the sidelines during his Senate impeachment trial
Rep. Bob Gibbs gives thumbs up to border fence, thumbs down to Capitol Hill security fence
Rocky River Republican Rep. Anthony Gonzalez gets flak for voting to impeach President Donald Trump but doesn’t regret taking a stand
Sen. Rob Portman hopes for coronavirus compromise with Biden administration
Nina Turner takes big fundraising lead in congressional race to succeed Marcia Fudge; her donors include actress Susan Sarandon and entrepreneur Andrew Yang
Sherrod Brown hopes Senate can pass $15 hourly minimum wage and coronavirus aid for local governments with or without Republican support
Ohio Rep. Jim Jordan won’t run for U.S. Senate next year
Senators grill Ohio’s Rep. Marcia Fudge at her confirmation hearing to be Secretary of Housing and Urban Development
Sen. Rob Portman backs measure to question constitutionality of impeaching former President Donald Trump
Rob Portman talks about his future plans and what’s ahead for the Republican Party
