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WASHINGTON — Banks would be able to offer credit cards, checking and savings accounts and other financial services to legal marijuana businesses under legislation that passed the U.S. House on Wednesday.
The measure, the first piece of marijuana legislation to reach the House floor, was approved, 321-103. All 11 House Democrats from New Jersey supported the bill while Rep. Chris Smi;th, R-4th Dist., voted no.
The Secure and Fair Enforcement, or SAFE, Banking Act, still must be approved by the Senate and signed into law by President Donald Trump, but House passage could give the bill a boost.
“Now, it’s time for the Senate to take swift action to approve the SAFE Banking Act so that this common sense legislation can make its way to the president’s desk,” said Aaron Smith, executive director of the National Cannabis Industry Association.
The measure also allows marijuana businesses to obtain insurance, a provision sought by U.S. Sen. Robert Menendez, D-N.J.
“The SAFE Banking Act ensure that marijuana businesses operating legally are treated like any other legal small business when it comes to accessing essential banking products —including in New Jersey, which has taken bold steps to expand medical marijuana,” Menendez said.
The bill does not address the question of legalizing cannabis, just ensure that businesses where marijuana is legal have the opportunity to use the same banking services as everyone else.
The issue has been that since marijuana is illegal under U.S. law, federally regulated banks have shied away from providing financial services to cannabis companies that are legal under state law.
In addition, banks could be called to task if they provided services to companies that do businesses with marijuana operations, such as the real estate company that leased the space or the electrician who installed the lights.
Instead, marijuana businesses have to operate in cash, making them enticing victims for robberies.
“Thousands of employees, businesses and communities across this country have been forced to deal in piles of cash because of the conflict between state and federal law,” said the bill’s chief sponsor, Rep. Ed Perlmutter, D-Colo.
But Rep. Patrick McHenry, R-N.C., said Congress should be debating the larger question of whether to legalize marijuana, not simply a narrow banking bill.
“While Congress is debating this half-measure, it doesn’t resolve the issue,” he said.
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Jonathan D. Salant may be reached at jsalant@njadvancemedia.com. Follow him on Twitter @JDSalant or on Facebook. Find NJ.com Politics on Facebook.
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