SAFE Banking Act

The SAFE Banking Act (H.R. 1595; full title Secure and Fair Enforcement (SAFE) Act; also referred to as the SAFE Banking Act of 2019) is proposed legislation regarding disposition of funds gained through the cannabis industry in the United States. On March 7, 2019, the bill was introduced in U.S. House of Representatives by Ed Perlmutter (D-CO) and was referred to the Judiciary and Financial Services Committees.[1] On March 28, 2019, the Financial Services Committee voted 45 to 15 to advance the bill to the full House.[1][2][3] The bill had "broad bipartisan support",[4] and there were 152 cosponsors at the time of the committee vote – over a third of the entire House.[5] Perlmutter, along with Washington Representative Denny Heck, "have introduced similar bills every Congress since 2013".[6] On April 11, 2019, Oregon Senator Jeff Merkley introduced a companion bill in the U.S. Senate and the bill was referred to the Senate Banking, Housing, and Urban Affairs Committee.[7] On June 6, 2019, the House bill moved out of committee and was placed on the Union Calendar for a vote.[8]

As of September 18, 2019, the House bill had 206 cosponsors (including U.S. House Judiciary Committee Chair Jerry Nadler and U.S. House Financial Services Committee Chair Maxine Waters),[9] and the Senate bill had 33 cosponsors (including Senate Minority Whip Dick Durbin).[10]

On September 20, 2019, House Majority Leader Steny Hoyer announced the bill was scheduled for a floor vote for the week of September 23 under suspension of the rules. Under suspension of House rules, the bill may not be amended, and must be approved by two thirds of the House of Representatives.[11][12]

The bill was passed by the House on September 25, 2019.[13]

The bill was originally drafted exclusively with banking institutions within its scope. However, the National Association of Professional Insurance Agents and other lobbying organizations achieved the addition of language from the "Clarifying Law Around Insurance of Marijuana" (CLAIM) Act, which existed in similar versions in both the House and the Senate. The added language rules out criminal and civil prosecution for both the entities and their employees or officers for the business of insuring cannabis-related industry when such industry is located in states which have legalized such activity.[14][15]

The SAFE Banking Act provisions were included in the HEROES Act COVID-19 relief bill passed in the U.S. House in May 2020.[16] They were again included in a bill approved by the house 214–207 in October.[17][18] A push to include the SAFE Banking Act provisions in the end-of-year COVID-19 stimulus failed, though hope remained it could pass in 2021 if reintroduced.[19]