CUNA, ABA Endorse Marijuana Banking Bill; NAFCU Says ‘Complexities’ Remain

The two national trade groups are taking slightly different directions on marijuana banking legislation, as CUNA and the American Bankers Association jointly endorsed House legislation and NAFCU said the issue is important, but there are problems with the bill.

The House Financial Services Committee on Tuesday began a committee markup of several bills, including H.R. 1595, which was introduced by Democrats Ed Perlmutter of Colorado and Denny Heck of Washington.

The legislation would give financial institutions with a safe harbor for providing services to marijuana-related businesses in states where cannabis is legal.

Under current law, financial institutions, including credit unions could be subject to sanctions for doing business with such firms.

Prior to the markup, Financial Services ranking Republican Patrick McHenry (R-N.C.) asked that the panel delay the markup of the marijuana bill, saying that questions remain about the legislation.

But committee Chairwoman Maxine Waters (D-Calif.) said she would not postpone the session.

In outlining the measure during the markup, Waters said that the bill addresses an urgent public safety issue, since cannabis-related businesses often are subjected to crime since they are cash-only businesses.

But McHenry said that one committee hearing is not enough to explore the consequences of the bill.

In a letter to the committee, CUNA President/CEO Jim Nussle and ABA President/CEO Rob Nichols said the bill provides a mechanism for the cannabis industry to deposit cash in financial institutions.

“The SAFE Banking Act of 2019 provides needed legal protection and clarity for financial institutions to accept deposits, extend credit, and provide other financial services to individuals and businesses that derive some portion of their income from legal state cannabis related activity,” they wrote.

NAFCU Vice President of Legislative Affairs Brad Thaler said the trade group supports congressional efforts to examine what legislative steps can be taken to provide greater clarity and legal certainty to the issue.

“While NAFCU still believes that there are complexities in the bill that should continue to be examined as the bill moves through the legislative process, we applaud the Committee for taking this step to address a complex issue,” Thaler wrote.

The letter does not describe the issues that NAFCU has with the bill.