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A congressional committee voted Thursday to approve legislation to increase marijuana companies' access to banks.

After several days of lengthy debate and review of several amendments, the House Financial Services Committee voted 45 to 15 to move the bill forward in its entirety.

No intervention has yet been scheduled, but proponents of cannabis reform hope that the committee's approval of the draft bank law is a sign that Democrats are ready to undertake extensive reforms of marijuana this year.

Indeed, House Committee Chair James McGovern (D-MA) said Wednesday in a radio interview that he's expecting the House to vote on a bill aimed at to put an end to the federal prohibition of marijuana within a period of "weeks".

"We will guide him to the House for a vote that I think will be passed by a crushing vote: Democrats and many Republicans," he said. "If we have a strong bipartite vote, it will increase pressure on the Senate to do something about it."

According to polls, all of the party's leading presidential candidates for 2020 are now in favor of outright legalization, as do most of its voters.

The bill on banks "responds to an urgent problem of public security for legitimate businesses that have no way of working for the moment, but only with money," said President Maxine Waters (D-CA) at the beginning of the committee's proceedings, which began Tuesday and continued at a second meeting Wednesday to the vote Thursday morning.

"However, I also see this bill as part of a comprehensive approach to bringing criminal justice reform to those who have been aggrieved by the criminalization of marijuana and should in no way be the only bill." that the House address the important issue of cannabis. reform, she said.

Some surveys also show that a smaller majority of GOP voters favor the prohibition of cannabis, but Republican congressional lawmakers have prevented marijuana amendments from being scrutinized in recent years by their majority. in the room.

Last week, Republicans of the Financial Services Committee asked Mr. Waters to postpone the vote on the banking legislation by writing in a letter stating that they had several "unanswered questions" about the measure.

"Some, for my part, support the measure as it is written. There are many who oppose it, "said Patrick McHenry (R-NC), the largest Republican in the group, in his opening remarks at the committee meeting. "The most important thing for this committee is to make sure that we do due diligence before proceeding. A committee hearing is not enough to fully understand the implications of this bill. This is a massive shift in federal politics.

The fact that the vote took place over GOP's objections is a sign that the effective marijuana roadblock on Capitol Hill was lifted by the new democratic majority of the chamber.

Under the approved bill, regulators of federal banks would not be able to punish financial institutions simply because they work with marijuana companies that are legal under national or local laws, or those from an Indian tribe.

At the present time, as more and more banks open accounts for cannabis companies as state policies change, many are reluctant to do so for fear of violating federal laws. money laundering or drugs. As a result, many producers, processors and marijuana sellers are forced to operate their business in cash only, which can make them targets for robberies.

The law approved by the committee, the Safe and Law-abiding Banks Act (SAFE), currently has 152 Cosponsors, more than one-third of the total, which is a much higher level of support than any other bill. previous autonomous cannabis. Twelve Republicans co-sponsored the legislation.

The Financial Services Group's approval of the SAFE Banking Act is only the third time in history that a stand-alone bill on marijuana reform has been approved by a congressional committee. Last year, other committees voted in favor of a bill urging the Department of Veterans Affairs to study cannabis for medical purposes and to require the Department of Justice to have a medical certificate. it licenses new marijuana growers for research purposes. These proposals have never been considered by the House.

"Our job is to solve this problem and not to ignore it. I have been introducing this bill for six years, "said SAF Banking Act senior representative Ed Perlmutter (D-CO), prior to the vote. "The people of this country have somehow taken over, state by state, to move an initiative in favor of marijuana for medical purposes or cannabis oil or quite legal."

Acts of the Committee on Amendments

Before voting to move the bill forward in the House, the committee made a number of proposed changes to the bill.

Perlmutter introduced an amendment to his own bill, which was passed by a vote by vote. In addition to clarifying the definition of financial services covered by the bill and clarifying that its provisions would protect the banks of the Federal Reserve, new additions would force the federal government to study diversity and inclusion in the bill. marijuana industry – a major concern of advocates of legalization seeking to repair the damage caused by the racially disproportionate war on drugs.

Under the new wording, federal financial regulators are expected to issue annual reports on "Information and Data on Access to Financial Services for Legitimate Minority and Women-Owned Businesses" and issue "regulatory or legislative recommendations to expand access to business". financial services "for these populations.

In addition, the amended bill requires the government to report to the government to conduct a study "on barriers to entry, including licensing, and access to services. of existing and potential cannabis-related businesses owned by women and women. legitimate businesses. "

During the committee meeting, Representative Katie Porter (D-CA) proposed a separate amendment that would extend protections to "de novo" banking institutions seeking charters or master accounts at a bank in the US. Federal Reserve. It was adopted by a vote by vote.

Representative Steve Stivers (R-OH), one of the Republic's main cosponsors of the bill, tabled an amendment extending the protections provided by the legislation to insurance companies. It was also adopted at a vote by vote.

An amendment from Representative Scott Tipton (R-CO) asks the government to report on previous reports that banks are required to file with their merchant marijuana customers in order to understand their effectiveness in identifying bad actors. He was supported by the authors of the bill and approved by a vote by vote.

Tipton introduced another amendment to ensure that drug cartels and organized crime networks could not benefit from the provisions of the bill, but removed it instead of imposing a vote.

Representative Bill Huizenga (R-MI) proposed to postpone the effective date of the bill until marijuana is on the federal calendar, but withdrew the amendment rather than imposing a vote .

Representative Blaine Luetkemeyer (R-MO) attempted to add an amendment to add "corporations operating in accordance with federal law" to those covered by the bill. In introducing the measure, he referred to previous federal investigations of banks working with gun dealers and payday lenders. He was judged non-germane, however.

Representative Andy Barr (R-KY) tabled an amendment that would have delayed the passage of the bill until the Treasury Secretary certifies that he would not leave any financial institution more exposed to illicit financial activities and money laundering. money, and that it would impede the ability to comply with federal regulations. It was rejected by a vote by roll, then again by roll call vote by a margin of 33 to 27.

Another Barr amendment would have limited the scope of the bill to protect only hemp companies instead of those dealing with marijuana. He also lost both a vote and a recorded vote. The latter went from 42 to 18.

An amendment by Representative John Rose (R-TN) would have required banks to certify that they have internal controls ensuring that no funds have been deposited in their institutions associated with illegal organizations. It was also rejected by a roll-call and roll-call vote totaling from 33 to 27.

A second amendment on Huizenga reportedly postponed the adoption of the law until the federal financial regulators were able to give guidance to the banks. It was rejected by a vote and a roll call was requested. He came out at 35 against 25 for.

Representative Sean Duffy (R-WI) moved an amendment to remove the protections in the bill from banks serving marijuana businesses within 300 meters of schools, youth centers, public parks, daycares, social housing, municipal or drug free centers. areas. It was rejected by a vote by roll and then by roll call vote by a margin of 34 to 26.

During the broader debate on the bill, the representative Denny Heck (D-WA), who, along with Perlmutter, is one of the main sponsors of the proposal, spoke about a marijuana dispensary guard at Colorado killed during an attempted robbery. public security hinders the blocking of bank access. He added that allowing cannabis industry operators to store their profits in regulated financial institutions would "improve the supervision and audibility of marijuana companies."

The bank is only the first step of the federal reform of marijuana

The banking legislation, which was the subject of a lengthy committee hearing last month, is seen by advocates as the first step in an ambitious cannabis reform program. They wish to see adopted by the Democratic House this year. Several more ambitious bills to change the legal status of marijuana so that states can implement their own policies without the imminent threat of federal interference have not yet been scheduled for hearings. Other outstanding proposals are aimed at improving veterans' access to medical marijuana, removing barriers to research and taxing marijuana growers.

"The Congress needs to consider all these efforts in the long run – and I will work to ensure that when it comes to passing [the banking bill] that the House does not adopt a "once done" approach, but that we will also be working extensively, particularly with our colleagues on the Judiciary Committee, on a series of marijuana-related reforms, "said Waters. , chairman of the Financial Services Committee, the vote.

Representative Nydia Velazquez (D-NY) said at Wednesday's meeting that she would explore ways to increase credit opportunities for marijuana companies, particularly those owned by women and women. minorities, as chair of the small business committee of the House.

At the end of last year, Representative Earl Blumenauer (D-OR) drafted a memorandum that sets out a step-by-step process for democratic leaders to legalize marijuana at the federal level from now until the end. of 2019. It is essential to pass a banking law part of its plan.

"This is a historic and crucial step forward for the country's new cannabis industry. Lawmakers seem to recognize the urgency and public safety implications of ensuring that cannabis businesses have access to banking services, "Steve Hawkins, executive director of the Marijuana Policy Project, said in a press release. "Regardless of members' position on legalization, they may agree that it is in the public interest to make banking accessible to cannabis-producing businesses in states where this is legal."

NORML Political Director Justin Strekal also praised the work of the committee.

"This is a positive step forward in addressing the unsustainable tension between legal cannabis markets and the federal ban on marijuana," he said. "In the end, the banking problem is only a symptom of the federal government's toxic and cruel policy of criminalizing marijuana. In order to truly lift the dynamic marijuana economy out of the shadows, Congress must take action to end the federal prohibition and discrimination that accompanies this failed policy. "

Senators Jeff Merkley (D-OR) and Cory Gardner (R-CO) are expected to table a complementary bill on access to financial services for marijuana-related businesses in the Senate. At the last congress, a draft law had brought 20 Cosponsors to the House but had not been heard or voted on.

This piece was first published by Forbes.

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