‘Time is short:' Lawmakers are still trying to pass marijuana banking reform
November began with a surge of optimism in the cannabis industry after Senate Majority Leader Chuck Schumer (D-NY) said during a campaign debate that lawmakers were “very close” to a deal on long-delayed marijuana banking legislation.
But as December dawns—and the election season is replaced with the actual business of legislating—optimism seems to be waning for the effort as hurdles keep cropping up. The question remains whether a deal is possible in the coming weeks that goes far enough for progressives, but not too far to alienate Republicans, especially in the Senate.
The latest obstacle came on Friday when the Justice Department expressed concerns about how the bill to reform banking rules for cannabis companies might be implemented, according to Punchbowl News. Pot stocks slumped on the news.
While Rep. Ed Perlmutter (D-CO), the leading voice for the effort, says he still has optimism that it can get done, "the realist in me says I've been disappointed before and the industry has been disappointed before because it's gotten stuck in the Senate and time is short,” he told Yahoo Finance earlier this week.
The long-running effort — called the SAFE Banking Act — would make it easy for cannabis companies to access the U.S. banking system. Access is severely limited because marijuana remains illegal at the federal level. The bill would make a carveout to allow these businesses to do simple banking transactions like open bank accounts and obtain loans.
This week’s effort could be the last chance for the bill for quite a while, with Republicans — who haven't signaled cannabis reform as a priority — set to take over the House of Representatives in January.
Challenged efforts to ‘build consensus’
At the core of the debate is an attempt by lawmakers to pair the bill with additional criminal justice and equity reforms around drug offenses. Many Democrats — notably Sen. Cory Booker (D-NJ) and Schumer — have long objected to the idea that a bill to benefit cannabis businesses would be enacted without complementary reforms around marijuana and criminal justice.
One idea being discussed is pairing Perlmutter’s bill with elements from a bipartisan bill called the Harnessing Opportunities by Pursuing Expungement (HOPE) Act, which aims to help states with expunging cannabis offenses.
But the question of which criminal justice provisions will satisfy Democrats but also keep enough Republicans — especially the 10 votes needed in the Senate — on board has made negotiations difficult.
The effort now faces additional questions after Friday’s news from the Justice Department. The newly reported memo raises concerns that the bill, as written, could unintentionally create obstacles for law enforcement agencies looking to prosecute businesses involved in other illicit activity such as money laundering, sales of other harder drugs, or even marijuana sales that don't comply with state requirements.
The leading Republican trying to make a deal is Sen. Steve Daines (R-MT). A spokesman told Punchowl Friday that efforts are ongoing to “build consensus so we can pass ‘SAFE Banking’ into law this year.”
Perlmutter pointed out that there remains a variety of ways for Congress to get it done, from a standalone bill to attaching a deal to must-pass legislation like the National Defense Authorization Act or the government funding bill. But the Colorado lawmaker, who has made this one of his key issues for years and is retiring at the end of the month, acknowledges getting it done won't be easy.
“I'm going to do everything I can to make sure that it does,” he said.
Ben Werschkul is a Washington correspondent for Yahoo Finance.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, YouTube, and reddit.
