How To Sign Kentucky Banking Memorandum Of Understanding

How to industry sign banking kentucky memorandum of understanding

this day would have been impossible ten years ago but now a victory for marijuana reform in the House of Representatives lawmakers on both sides of the aisle supported a marijuana banking bill will the Senate sign off or does it have plans all of its own Newsies Kevin Howell has a story in a historic vote members of the US House of Representatives overwhelmingly passed a bill that would allow cannabis businesses to access the banking system it's the first time lawmakers have ever voted on a marijuana bill and although it passed with huge bipartisan support it's future in the Senate is hazy Oregon Democratic Senator Jeff Merkley who's co-sponsoring the Senate version of the bill says he's been working with the gop-led Banking Committee to add tweaks to make it more palatable to Republicans like Senate Majority Leader Mitch McConnell who's staunchly anti-pot we're in the middle of the the process of the end of prohibition and there's many many issues that will come up in that that context and there's gonna be a lot of committee work done there's going to be a lot of opinions there'll be a lot of pieces but we have a crisis that needs to be addressed right now Merkley told news eat that GOP Senator Mike Crapo the chairman of the Senate Banking Committee is considering adding language to the bill to address concerns he and other Republicans have about the health impacts of marijuana for example the bill could require a study on the rising levels of THC in legal cannabis that's the chemical component in weed that gets you high the chairman has a bill and he has a concern both both involve cannabis so can he should it system owe it to graft his concern about whether there's it's too much of a Wild West in terms of the levels of THC the concentrations that are in various edible products or drinkable products or so forth is this the moment to put some something into this bill that seems to have momentum but it's not just Republicans who are hesitant to support the safe Banking Act several Democrats argue the bill should not be brought to the floor for a vote until lawmakers tackle bigger marijuana reforms Senate Minority Leader Chuck Schumer and 2020 candidates Cory Booker Bernie Sanders and Harris have said Congress should not pass the bill without also federally legalizing weed and addressing criminal and social justice reforms around marijuana Booker who has introduced the marijuana Justice Act tweeted any marijuana legislation moving through Congress must include restorative justice for those most harmed by the war on drugs in order to get my vote but Merkley argued the bill needs to be passed now to make cannabis businesses safer right now many businesses can't get access to bank accounts and other financial services because marijuana is still federally illegal most of them have to operate in cash only and that can lead to a host of security issues it's an invitation to cheating on your taxes or cheating your employees it's a issue of theft assault it serves absolutely no one except thieves and organized crime kellen how joins us tonight to go more in depth on this you were there how did the vote play out we had an idea of how it's gonna go but were there any surprises here yeah so you know the bill passed overwhelmingly and I think the most surprising part of it was that you had 91 Republicans voting YES that's quite a few and could be a pretty good indicator for even more bipartisan support in the Senate and the other surprising half of this was the only one Democrat voted against the safe banking act which is actually a lot less than myself and some other you know experts in this area had thought given all of the uproar coming from civil right groups and people like Alexandria Ocasio Cortes who had said you know we can't vote for this before we also tackle these more comprehensive issues like criminal justice reform and I think the reason that that did happen is because you had folks like Jerry Nadler the head of the House Judiciary Committee who has this bill called the MOR act that addresses those issues he put out a statement in the morning before the vote saying you know it's gonna be okay everybody I still support this bill I'm going to vote for this you should vote for this too I'm a little bit of cover and that one that's the one that swings for the fences legalizes marijuana totally has these things old tax people give it back to other communities yes okay he basically said you know I'm going to do everything I can to push this out of my committee and get it to the floor so I think that eased a lot of people's concerns and real quick the Republicans I was surprised 90 plus Republicans and I'm guessing it's not because they're saying we love marijuana it's because they're like this just makes sense right for them it's a public safety issue as well as also a states rights issue you know they really a lot of Republicans who got on the floor during the debate we're saying things like you know this is a matter of safety we're just hearing so many stories from business owners in our states who are saying that they're at increased risk of robbery and and things like that so I think for them it was just a safety issue moves to the Senate what they're yeah so on the Senate version of the bill has already had a committee hearing now we're waiting for a markup in the committee and this is in the Senate Banking Committee and the chairman of that committee Mike Crapo has said that he wants to have a markup so then they would mention things like yes that's where they make changes to the bill you know kind of any small tweaks or anything and then they would vote on it in a committee and then Republican leaders in the house would have to decide whether or not to bring it to the floor and of course that's going to depend on how much bipartisan support there is for this bill any idea what sort of tweaks we could see in the Senate yeah so I talked to Senator Jeff Merkley Democrat from Oregon who is one of the co-sponsors of this bill and he's also on the Banking Committee and he told me that you know he's been working really closely with Senator Crapo and one of the things that they're looking at is adding some language to it that would address concerns that people like Crapo and some other conservatives have about sort of the public health impacts of marijuana so things like they might consider adding language that would require states or require the federal government to conduct a study on how much THC is in these products THC being the component with enormous labels hi yeah yeah yeah and and and the levels of THC has been rising steadily over the years and so there is growing concern that maybe there's too much THC in some of these products so the way that Merkley put it to me was that you know Crapo has concerns he has a bill that has a lot of moment that he can attach those concerns to and it's a good point I mean we've talked about it here on this show this is not the ditch weed that the Senators generation had this is much more potent on young brains we don't know all the impacts we know that there is such thing in some zones as addiction and so it seems like they're trying to be smart about it and I guess once it passes the Senate if it does the house is pretty much going to have to swallow whatever they give them rather than say no we want a conference we want to do our own thing yeah it's likely you know what's likely is if they can come to a bipartisan consent consensus in the Senate then the house will probably go on to that but then we might get back into that issue of well we haven't gotten far enough yet though with the bigger question of decriminalizing at the federal level and tackling criminal justice reform and equity issues as well so I think it might come around full circle oh boy and you're gonna be right back here yep Ellen Howell thank you so much thank you appreciate it well what purpose does the gentleman from Colorado seek recognition Thank You mr. Speaker I move the house suspend the rules and pass HR 1595 the safe banking act as amended the clerk will report the title of the bill HR 1595 a bill to create protections for depository institutions that provide financial services to cannabis related legitimate businesses and service providers for such businesses and for other purposes pursuant to the rule the gentleman from Colorado mr. Perlmutter and the gentleman from North Carolina mr. McHenry each will control 20 minutes the chair recognizes the gentleman from Colorado Thank You mr. speaker I ask unanimous consent that all members may have five legislative days in which to revise and extend their remarks and to include extraneous materials on HR 1595 without objection so ordered Mr Speaker I yield myself as much time as I may consume the gentleman is recognized thank you I'm proud we are here today to pass this bill about public safety accountability and respecting states rights 47 states for US territories and the District of Columbia have spoken in legal some form of recreational or medical marijuana including cannabis oil 318 point 2 million people live in those 47 states that's ninety seven point seven percent of the population however because marijuana remains illegal under federal law businesses in these states are forced to deal in cash these businesses their employees and ancillary businesses cannot access the banking system the fact is the people in states and localities across the country are voting to approve some level of marijuana use and we need these marijuana businesses and employees to have access to checking accounts lines of credit payroll accounts and more this will improve transparency and accountability and help law enforcement root out illegal transactions to prevent tax evasion money laundering and other white-collar crime but most importantly mr. speaker this will also reduce the risk of violent crime in our communities these businesses and their employees become targets for murder robbery assault and more by dealing in all cash and this puts the employees and stone store owners at risk and congressman heck will speak directly to this point the safe Banking Act will create a safe harbor for financial institutions and their employees who choose to do business with a marijuana company section 3 of the bill is particularly important to not only marijuana businesses but everyone who might do business with a marijuana related company this section would protect ancillary businesses like real estate owners accountants electricians and vendors by clarifying that the proceeds from legitimate cannabis businesses are not illegal under federal laws this proceeds section is the key provision allowing all cannabis related businesses and their service providers to access the banking system without fear of reprisal we have worked with our Republican colleagues on a few changes to improve the bill since it was marked up in March as mr. Barr will discuss the bill now includes protections for financial institutions to provide nancial services to happen CBD businesses since we've learned the provisions from the farm bill last year did not provide sufficient clarity for banks and credit unions to provide these services mr. Stivers urging we expanded the protections in the bill for various insurance products such as workers compensation and additionally we've added language from mr. Luke demeyers financial institution customer Protection Act which passed the House 395 - - last Congress this language would prohibit bank regulators from directing a bank to close an account for reputational reasons in summary if someone wants to oppose legalization of marijuana that's their prerogative but American voters have spoken and continue to speak and the fact is you can't put the genie back in the bottle prohibition is over our bill is focused solely on taking cash off the streets and making our community safer and only Congress can take these steps to provide this certainty for businesses employees and financial institutions across the country I want to thank representative Hecht for his partnership through the years on this bill I also want to thank representative Stivers and Davidson for their support and co-sponsorship of the Banking Act safe Banking Act and subcommittee chairman Greg Meeks and representative Katey Porter have been very helpful in the process finally I want to say thank you to chairwoman Maxine Waters for shepherding this bill through the Financial Services Committee and making this a priority I urge my colleagues to join me in voting YES and with that I reserve the balance of my time the gentleman reserves the gentleman from North Carolina is recognized Mr Speaker I yield myself such time as I may consume without objection I rise in opposition to HR 15 95 but I want to begin before I go into the contents of my argument against this legislation I want to start by commending the bill sponsor mr. Perlmutter of Colorado for his tireless advocacy his reasonableness in in his approach and his willingness even in the midst of the toughest negotiations around the subject matter to keep his cool to think through the import of the bill and to seek compromise where he could and it is quite a legislative endeavor that he's taken upon for himself but for this institution for his state and for states around the country he has been a fantastic advocate and and I would say that standing in opposition to his bill it's not because of his lack of goodwill it's not for lack of his willingness to engage but for a fundamental disagreements in the approach and we've been able to have real discussions around this that I think would make the American people more proud or more confident in this institution and our body politic more broadly speaking and I also want to thank my friend and colleague on the committee mr. Stivers of Ohio for his work on the issue together they have conducted themselves with wonderful integrity and in respect for their colleagues and their colleagues views and ideas and especially in an issue like this where it can create an enormous amount of controversy twenty-one states have legalized medicinal marijuana and ten states have legalized the recreational use of the drug however cannabis remains completely illegal in 19 States federal law defines as a a drug as quote a high potential for abuse no current accepted medical use and treatment in the United States and a lack of accepted safety for use of the drug under medical supervision in quote that is current federal law this bill does not change the fact that cannabis remains a prohibited Schedule one substance under the Controlled Substances Act to that end if we seek to give financial institutions certainty we should deal with a listing of cannabis as a Schedule one substance not debating a partial solution for financial institutions to what is a much larger problem and at larger societal issue that we must wrestle with should states be allowed to continue to violate federal law does federal law need to be changed when it comes to the scheduling of cannabis we have an FTA that regulates cigarettes and e-cigarettes which as we know the recent announcement they'll seek a ban on flavored East cigarettes but the FDA has no regulatory authority to regulate cannabis the bill we are considering today is one of the biggest changes to u.s. drug policy in my lifetime yet is done with little debate while our committee has jurisdiction over financial institutions and in the nature of our debate it's usually about the nature of of regulation for the capital markets and for banks we heard little from the Committees of jurisdiction over the Controlled Substances Act or the Criminal Code in fact the Financial Services Committee is the only one who has held a hearing on the issue of cannabis this Congress now I would say that is due to the leadership of mr. Perlmutter in his tireless advocacy for this but we all had one panel of witnesses I've voiced my concerns in our jurisdiction to chairwoman waters and to congressman Perlmutter about my concerns for this and March of this year I wrote chairwoman waters to express my belief that we need to have a better comprehension of the nature of this substance and address the supervisor and regulatory issues that would result from enactment of HR 1595 and I ask unanimous consent that I submit a copy of this letter for the record without objection so order and that letter I listed a number of questions that have yet to be answered including what steps will federal financial regulars have to take to harmonize standards and protect against illicit activity including institutions obligations with respect to the Bank Secrecy Act any money laundering requirements suspicious activity reports and currency transaction reports what are the implications of this bill on non-bank financial firms including investment companies I know there's been additions since we come we've come to the floor to include insurance companies and I think that's a positive step but these are some of the basic questions that still need to be resolved it's also important that we understand whether this legislation could lead to bad actors like drug cartels they could more easily access our banking system in the United States these concerns have been echoed by several former directors of the Office of National Drug Control Policy and former administrators of the Drug Enforcement Agency in a July letter from this year former law enforcement officials serving from 1981 to 2014 have voiced concerns that the safe Banking Act could be exploited to provide easier and more cost-effective ways for nefarious groups to launder money ask unanimous consent to submit this letter for the record that should so order mr. speaker drug cartels are a significant problem in cannabis legal states like California Washington and Colorado as reported in a May article by NBC News the cartels have found that it's easier to grow and process marijuana and legal states like Colorado and ship it throughout the United States than it is to bring it from Mexico or Cuba as you mass consent to submit for the record this article is bad objection so ordered Thank You mr. speaker and beyond the regulatory issues Congress has yet to examine these potential societal harms and implications for human health in a January article regarding research on the health effects of marijuana Arthur Malcolm Gladwell wrote quote before any drug gets permitted to go on the market basic questions have to be answered about its safety and efficacy we don't know well we don't know relatively basic questions about marijuana end quote I commend this piece from The New Yorker and ask unanimous consent to submit it for the record that objection so long Thank You mr. Speaker I appreciate the gentleman from Colorado's willingness to work with several of my colleagues on this side of the aisle I want to commend him and the gentleman from Ohio mr. Stivers once again for the commitment to this effort this version of the legislation before us right now is dramatically improved and includes a number of Republican priorities such as language on operation choke point and a solution that will help industrial hemp farmers across the country but most especially in Kentucky yet mr. speaker there are many questions left to be answered we do not fully understand the sweeping implications of this legislation we do not yet know what the resulting regulatory regime will look like nor do we have any assurance that will not expose the current financial system to illicit activity in particular as it's currently drafted HR 1595 offers insufficient safeguards to print drug cartels from accessing the banking system what this legislation does is provide a half answer to a much larger problem than just banking we owe it to our constituents in to the public to have a serious debate on the underlying issue and that is the issue of whether or not cannabis should be considered a Schedule one substance under the Controlled Substances Act I know mr. Perlmutter and I share that same sentiment that we should have that larger debate in the meantime Congress is and is working in a bipartisan way to come up with at least a measure of solution but I'm hopeful that we can get the medical research necessary to and the FDA processes necessary for us to have that larger debate as well and I would welcome that debate as I know the American people would as well and with that I'd like to reserve my reserves the gentleman from Colorado is recognized Thank You mr. speaker I just say to my friend thank you for the kind words about working across this has been a partnership in in many respects lots of interchange I would say also to my friend the Financial Services Committee has certain jurisdiction we couldn't take up all of the different things that you have or that he has suggested mr. speaker but we were able to take up this marijuana bill it's a first time this Congress has done it certainly in my terms here and the reason we did that was because the chairwoman was a driving force to get this matter in front of the Congress and with that I'd yield four minutes to chairwoman waters the gentlelady from California is recognized thank you so very much I rise in support of HR 1595 the safe Banking Act sponsored by representatives l-e-d Perlmutter Denny heck Steve Stivers and Warren Davidson and let me just say to all of these individuals who have worked so long and so hard on this legislation I'm proud of the work that you have done I'm proud of the cooperation that you have demonstrated and I'm proud to be on this floor with you today this bipartisan bill addresses a pressing public safety issue for businesses that legally grow market or sell cannabis in states that have legalized its use and that are currently forced to operate with cash only 47 states three territories in DC have legalized some form of marijuana and it is time for Congress to act cannabis related businesses are locked out of the banking system and cannot maintain checking accounts process payroll obligations or pay taxes the Financial Services Committee heard testimony in February that these cash-only businesses and their employees have become targets for violent criminals the safe Banking Act addresses this serious problem by providing a safe harbor to financial institutions that choose to serve state regulated cannabis businesses the bill would also help others like plumbers or electricians who provide services to cannabis businesses but face similar challenges with access to banking services with the passage of this bill all of these businesses will gain access to traditional financial services than most business take for granted HR 1595 also promotes diversity and inclusion with several reporting provisions to help Congress monitor that minority owned and women-owned cannabis businesses get access to credit they need and have a fair chance to compete as I've said before and I say here on the floor today this bill is but one important piece of what should be a comprehensive series of can reform bills I have long thought for criminal justice reform and deeply understand the need to fully address the historical racial racial and social inequities related to the criminalization of marijuana I support this legislation like representatives Li's marijuana Justice Act and chairman atlas more Act that would d schedule marijuana federally and provide assistance such as job training re-entry services for those who have been harmed by the war on drugs let me be clear it is long overdue for Congress to address the unjust criminalization of marijuana use so I really look forward to the Judiciary Committee sending the legislation to the House floor soon I think representative Perlmutter and heck for their long-standing leadership on this issue the past six years I urge all members to vote YES on the bill and when we get the legislation from the Judiciary Committee to do all of those things that I have spoken about here and what is considered justice for those who have been harmed by some of the laws that cause people to be incarcerated we eagerly look forward to that legislation we urge the Judiciary Committee to send it to the floor so that we can support it and I yield back the balance of my time gentlewoman yields gentleman from Colorado reserves erv the gentleman from North Carolina is recognized Thank You mr. speaker at this time I'd like to yield 90 seconds to the gentleman from Michigan the ranking member of the capital markets subcommittee mr. Hayes a gentleman from Michigan is recognized for 90 seconds thank you I appreciate the ranking member allowing me this and let's set aside the moral and societal aspects of cannabis and the debate and acknowledge that we have a problem we do have a problem we have states that have decided to violate federal law and within those states we have banking institutions and businesses that are operating within the confines of the state however that are still in violation of the federal law now here's what we do agree on is need to have a goal of predictability for these financial institutions and for these businesses however I don't believe that this ultimately will this bill will ultimately do that because the federal government still views this as a Schedule one substance I had an amendment in committee as the as the author of the bill well knows that would have forced alignment with all of the various regulators I think at the time my recollection is we counted 13 different federal regulators that touch these institutions in one way or another the answer to that was well in the bill we have a requirement that they are going to agree with each other within 180 days well folks this is not going to come to a surprise to those watching on c-span we can't collectively tie our shoes here in Washington in 180 days much less get through something that complicated my amendment said that we would have this would go into effect only when and if all of the regulators could agree to the language of how to deal with that I still think that is the right way to go I asked the gentleman for another 30 additional seconds the gentleman is recognized well there is a big difference we know between industrial hemp and recreational cannabis the only way for us to really get at this issue and to provide the predictability to the companies to the financial institutions and to our citizens is to have the full debate about whether marijuana cannabis should be a Schedule one substance or not it's time for this full debate to happen and I look forward to it and with that I yield back the gentleman yields the gentleman from North Carolina reserves gentleman from Colorado is recognized thanks mr. speaker and to my friend from Michigan I guess I have more confidence in the federal employees that they can get something done in the next hundred and eighty days I want to now yield four minutes to mr. Hecht from Washington who has been working on this subject with me for the last six years and I'll turn it over to him gentleman from Washington is recognized Thank You mr. speaker I think the gentleman from Colorado I do rise in support of HR 1595 the safe Banking Act before I do that I want to acknowledge the leadership of this man for a very long period of time the only reason we are standing here tonight about to vote on this is because of the tireless brilliant leadership by the gentleman from Colorado I thank him for it it has been an incredible journey over a long period of time I thank the chair of the committee as well for her strong clear leadership on this and lastly I'd like to thank the two gentleman from Ohio mr. Stivers and mr. Davidson who are not just allies they are friends and have done excellent work in this regard this is a public safety bill pure and simple if you want your neighborhoods to be safer vote YES if you want your communities to be safer vote YES if you want the employees at the dispensaries throughout the 47 states who have some form of legalized cannabis vote yes this is a public safety bill and it is not hypothetical it is real Exhibit A Travis Mason June 18th of 2016 Travis Mason got up and went to work he was full of optimism about life he was a Marine veteran he served his country honorably he was looking forward to his future because he'd just been informed that he was approved to take the Denver Police Department test he was confident he would pass it he had been studying for it and so he kissed his lovely wife Samantha goodbye they were both marine veterans both just 24 with three small children and he kissed Aidan and Daisy in that there were twins and little baby Julian goodbye and went to work where he served as a security guard at a dispensary in suburban Denver and because that was an all-cash settlement because the federal law did not allow for that business to be banked to be within the guardrails of the financial system an evil person walked in that night in shot Travis dead and left Samantha 24-year old widow with three small children so unnecessary if we pass this legislation that does not have to happen this is not hypothetical you can be agnostic on the underlying policy of whether or not cannabis should be legal for either adult recreational youth use or to treat seizures for Apple juvenile epileptics but you cannot be agnostic on the need to improve safety in this area if you believe that the first two provisions especially of the cold memorandum which set forth keep keep marijuana out of the hands of children and keep cash out of the hands of the cartels if you support that you must vote YES on this bill so that we can track this so that we can monitor this if we do nothing bad things will again happen if we do nothing bad things will again happen if we pass this law if we pass the safe banking Act the public safety measure then we can avoid another widowed Samantha another murdered clerk at a dispensary we can make our neighborhoods safer we can make our communities safer please join us in voting YES on HR 1595 gentleman yields gentleman from Colorado reserves reserve gentleman from North Carolina is recognized mr. speaker how much time remains the general for North Carolina has 9 minutes and the gentleman from Colorado has 8 minutes all right with that I'd like to yield one minute from the gentleman from Germantown Tennessee mr. Kostov gentleman from Tennessee is recognized for one minute Thank You mr. speaker and I want to thank the ranking member for for yielding I rise today in opposition to HR 1595 to safe Banking Act I do want to say I appreciate the debate that we've had in our Financial Services Committee but I think that we need to have the same debate in the Judiciary Committee we all know that over the last several years states across the country of past various laws to legalize marijuana for both recreational and medical purposes that flawed approach has created a patchwork of state laws and regulations that have allowed for the spread of marijuana use across the u.s. proponents of this bill claim that it will provide consistent guidelines for marijuana companies to do business across our national finance system however my concern is that the legalization will only provide safe harbor while legitimizing and encouraging more widespread use of this currently illegal drug the reality is today that we are voting to nationally legalize marijuana throughout our banking system rather than taking the correct approach which I believe is to take a boat from Colorado thank you madam Speaker I'd like to yield two minutes to the gentlelady from California barbara Lee a co-chair of the cannabis caucus and sponsor of the marijuana Justice Act which we hope to see marked up and brought to the floor gentlelady is recognized for two minutes thank you very much madam chair first of all let me thank congressman Perlmutter for yielding but also for your tireless leadership this has taken a heck of a time a long time and you have stayed with it you've been persistent and I stand here and salute your efforts thank you also I want to thank chairman woman waters for moving this bill out of the Financial Services Committee and for her support for our marijuana justice act and also to Congressman heck for his clarity as to why this bill is necessary and for his support and of course my partner and friend who has been on this issue so many years as co-chair of the bipartisan cannabis caucus in which I serve also as co-chair congressman Earl bloomer hours I just have to salute and thank everyone for getting us to this point the safe Banking Act would explicitly permit banks and other financial institutions to work directly with state legal cannabis businesses legal cannabis cannabis businesses instead of relying on cash transactions this bill is not only timely but extremely necessary right now the anibus industry needs access to safe and effective banking immediately now let me be clear federal law severely limits access to loans and capital for the cannabis business especially mind you for those who have cannabis related arrests and convictions on their record that means that less than one-fifth of the cannabis industry is owned or operated by people of color even though African Americans have been shown to use cannabis at the same rate as white Americans yet are incarcerated at about eighty percent more in terms of incarceration rates this is just plain wrong so this bill is a great first start to addressing all of these issues I'm telling you communities of color should equally benefit from all of the laws that have been passed at the state level they should have the opportunity to generate generational wealth for their families too that's why in addition to this bill the house must bring forward legislation like my marijuana justice act and the more Act which addresses criminal justice reform restorative justice and fully reinvest in communities of color impacted by the failed and racist war on drugs five seconds ago I want to thank mr. Perlmutter again for his leadership and for working with us to get this to the point bigger this time I'd like to yield the to the ranking member of the National Security Subcommittee on the Financial Services Committee the gentleman from Columbus Ohio a great advocate for the bill mr. Stivers for what period of time thank you madam Speaker for three minutes three gentleman is recognized for three minutes thank you I'd like to thank the ranking member for yielding I rise in support of HR 1595 the safe banking at the bill provides a limited safe harbor for banks and credit unions to open and maintain accounts for marijuana related businesses and other non marijuana related businesses I personally oppose recreational marijuana but for me this bill has nothing to do with the larger debate about marijuana and whether it's a good or bad thing instead I'm narrowly focused on the public safety aspects of this bill the inconsistencies between state and federal law have created a situation where a growing number of state regulated business are operating on a cash-only basis as a result they sit on large pools of cash that make them a magnet for violent robberies the transactions of cash-only businesses are not subjected to rigorous anti money laundering or know your customer requirements that would be required for bank account holders this makes it difficult for regulators and law enforcement to trace transactions or to freeze money the safe Banking Act will make our communities safer by getting cash off the streets and into regulated financial institutions so we can root out fraud and other illegal activity the bill also extends the safe harbor to any proceeds indirectly received from these businesses such as the hardware down the street or the landlord of these businesses importantly the safe Banking Act does not change the legal status of marijuana additionally HR 1595 also includes provisions that would prevent financial regulators from denying or discouraging access to the banking system for other legal businesses as happened in 2014 through 2016 this protection is a major protection for other legal businesses I want to thank mr. Perlmutter and mr. Haack for their incredible advocacy on this I want to thank chairwoman waters and ranking member McHenry for their honest and hard-working efforts even when they disagree and I want to thank Senator Cory Gardner who's championed this bill in the Senate I urge my colleagues to vote YES on HR 1595 and I yield back the balance madam Speaker I ask unanimous consent to enter into the record letters of support for the safe banking act from a broad coalition including the National Association of attorneys general including 38 state attorneys general 20 state governors 18 state banking supervisors the United Food and Commercial Workers the Credit Union National Association the independent community bankers Association the American Bankers Association the mid-size bank coalition of America the National Bankers Association law enforcement Action Partnership the minority cannabis Business Association the mayor's Coalition for marijuana reform 8 insurance trade associations the International Council of shopping centers the National cannabis Industry Association the National cannabis roundtable the cannabis traded Federation that California cannabis industry the Florida Agriculture Commissioner safe and responsible banking Alliance the electronic transaction Association the real estate roundtable the National Association of Realtors Brink's Inc the National armored car Association American Financial Services Association and Scott smear with that ideal two minutes without objection so ordered gentlemen how long are you yielding I yield two minutes to mr. bloom an hour who's been the quarterback of a lot of this cannabis legislation gentleman is recognized for two minutes I appreciate the gentleman's courtesy the leadership and you've heard from a number of the champions in this house fighting for a more rational policy regarding cannabis we're in this fix today because Congress has refused to provide the partnership and the leadership that the states demand the states aren't waiting for us as you've heard 47 states have taken steps to legalize some form of state legal cannabis and one of the most insidious aspects of our being out of sync is what we've seen in terms of access to banking services Congressman heck elaborated I think very emotionally and effectively about the dangers that this presents we have an opportunity to fix that problem this is an 11 billion dollar industry and growing and it's growing because the people and the states have demanded it we need to step up and solve one of the biggest problems and that is simply they don't have access to banking services I've worked on this issue for decades I have never met a human being who feels that there's any good purpose served by forcing them to pay their bills with duffel bags full of $20 bills not one person it's an invitation to theft it's an invitation to money-laundering already it's an invitation to tax evasion and it stifles the opportunities of this business I strongly urge our colleagues to vote for this as the next step it this is an important foundational but it's not the last step we have important legislation that's key teed up and ready to go this approval today will provide momentum that we need for further reform that we all want and will make America safer and stronger thank you and I yield back gentleman yields back gentleman from North Carolina I yield Thank You madam madam Speaker at this time I'd like to yield two minutes to the chair of the oversight subcommittee of the Financial Services Committee the gentleman from Lexington Kentucky mr. Barr for what period two minutes gentleman I'm sorry madam Speaker for two minutes gentleman is recognized thank you madam chairwoman I rise madam Speaker I rise in support of HR 1590 King Act and I want to thank my friend the gentleman from Colorado for working with me in a bipartisan way to include two amendments that will allow legal hemp farmers and businesses in my district access financial services Kentuckians have a deep interest in the production cultivation and sale of industrial hemp but we have historic connections to this too many Americans may not know but my predecessor in the central Kentucky seat in Congress Speaker of the House Henry Clay was once a hemp farmer now thanks to the farm bill the hemp industry and the Commonwealth is booming once again much of the resurgence of the industry occurred under the industrial hemp research pilot program established by the 2014 farm bill since the program's enactment in 2014 the number of approved acres in Kentucky increased from 922 to over 50,000 in 2018 sales of hemp products were three and a half times more than the previous year the 2018 farm bill took it a step further and fully legalized industrial hemp ending 80 years of prohibition of the plant hemp is now completely exempt from the Controlled Substances Act despite these positive steps forward hemp businesses still have trouble accessing financial services like bank accounts loans and payment processing this bill will provide additional clarity for banks insurance companies and card processors that they can in fact do business with legally operating hemp businesses it would also direct our federal financial regulators to issue joint guidance to financial institutions on how to serve hemp and CBD businesses without legal risk there is amazing potential for hemp and hemp derived products one hemp farmer in my district has an exclusive deal with Patagonia to provide hemp for farming Toyota who has the largest manufacturing facility in my district is exploring the use of hemp for car interiors hemp farmers in my district are cultivating him to produce products ranging from nutraceuticals dietary supplements pharmaceuticals cosmetics apparel footwell Footwear passion and even industrial products and construction materials but for hemp producers and businesses to fully scale up and take advantage of the D scheduling under the farm bill they need access to financial services again I want to thank my friend from Colorado for working with me in a bipartisan way and I urge animal support for HR 1590 I'm in from Colorado I'd like to inquire how much time on each side each side has four minutes remaining I'd like to yield to the chair of the financial institutions subcommittee mr. Meeks one minute gentleman is recognized for one minute there's been a rapid and dramatic shift in the legal treatment of cannabis led by voters at the local and state level nearly every American now lives in a state where cannabis has been decriminalized to some extent and legal business activities permitted to varying degrees including in my home state of New York but federal drug laws and bank regulations have not evolved to reflect this new reality we need clear harmonized laws which the safe banking app provides without passage of this bill the legal cannabis industry is forced to operate most in cash depriving law enforcement of important financial data and creating a forward avoidable security risk for companies and their employees with the passage of this bill entrepreneurs employees and financial institutions operating legally within the bounds of the state and local laws were no longer bear the burden of punitive tax code high compliant hurdles and the lack of all basic financial services and significant security tasks and I am proud of the work that mr. peretta have worked on it mr. Perlmutter has worked in this bill very hard and I compliment them and I yield back the balance of my gentleman yields back gentleman from North Carolina I like I think killed one minute to my colleague from Ohio great member of the Financial Services Committee mr. David's gentleman is recognized for one minute thank you madam chair Amanda Speaker I rise today in support of the safe Banking Act this this is a banking bill it defends civil liberties with a simple concept if it's legal in your state you should be able to bank it no federal regulators should be able to block an American's lawful access to the financial system in Ohio legal state regulated businesses are being forced into using cash or intermediaries this bill will help get cash off our streets and into the regulated financial system I am also pleased the bill includes mr. Luetkemeyer legislation to stop the closing of accounts on the basis of political biases or motivations for far too long financial institutions have said you're not going to bank those people are you it's time to defend civil liberties and pass this important bill I urge bipartisan broad support of its passage in I yield gentleman yells gentleman from Colorado thanks I'd like to yield 45 seconds to the gentleman from California mr. Kerr a gentleman is recognized for 45 seconds thank you very much I rise in strong support of this common-sense legislation the safe Banking Act when I was a state senator in California I was visited by dr. Monahan who came to visit my office to ask me that I do some legislation to help his daughter his daughter that in her short lifetime she had been tormented by epileptic seizures the only drug that worked for her without severe side effects was cannabis breaks my heart to know that these legit businesses can pay their taxes with cash yet customers like dr. Monaghan can't use a credit card they also have to pay with cash to get legitimate products doesn't make sense I asked my colleagues to pre support common-sense legislation please vote aye on this legislation thank you gentleman from North Carolina I inquired the chair how much time remains German has three minutes remaining two and a quarter remaining for mr. Perlmutter all right with that like yield one minute to my colleague from Florida from the gentleman from Fort Walton Beach Florida Northwest Florida mr. gates for one is recognized for one minute I thank the gentleman for yielding and it's on behalf of those cannabis patients in Fort Walton Beach and across the Sunshine State that I rise in support of the safe baking act I'm proud to have been a part of drafting Florida's medical marijuana laws and it is ludicrous that the Congress of the United States would stand between people operating under the color of state law and their ability to access the financial system it is good for no one to have billions of dollars rolling around outside of the accountabilities and efficiencies and safeguards that the American financial system provides a vast majority of states have legalized some form of cannabis and if any business is legal in that state they should have these same financial protections as any other business I am a proud original co-sponsor of the sake safe Banking Act and I thank my colleagues for their tireless work on the issue I know the bill is not perfect I expect the bill to get better in the Senate but hopefully this will build some common-sense momentum for real cannabis reform let's get this drug off the Schedule one list and do right for the great people in the country and I yield back gentleman from Colorado I'd like to yield 45 seconds to the gentlelady from the Virgin Islands miss Plaskett Gentlease recognized thank you today because federally regulated banks and other financial institutions may face prosecution if they offer their services to business is selling legal cannabis products across 45 47 states DC and for US territories many legal businesses are forced to operate in a cash-only basis making them targets for theft and creating opportunities for tax evasion and money laundering is simply unpressed at approved businesses the Financial Services any longer social equity will go further by allowing businesses to come out of the shower as chair of the house agricultural Subcommittee on biotechnology horticulture and research I am pleased that this legislation was made inclusive of hemp as it moved through the process I've heard from a number of legal hemp businesses who have experienced similar issues I thank my colleague from Colorado mr. Perlmutter for inclusion of the territories Finland and I you passed by a gentleman from North Carolina I reserve gentleman from Colorado I yield 45 seconds to the general a tee from New York City miss Maloney gentlelady is recognized for five seconds madam Speaker I strongly support this bill and congratulate mr. Perlmutter and mr. heck for their hard work we have to pass this bill because it's a public safety issue backs banks can't serve marijuana businesses an 11 billion dollar business because it's still illegal at the federal level which means that legal marijuana businesses around the country operate in all cash this is a huge public safety issues because storing huge piles of cash in warehouses is a magnet for criminal activity but it also means that companies that just provide services to marijuana businesses like electric or water utilities are also getting cut off from the banking system and undermining people's access to basic utilities creates yet another public public safety problem I urge a support bill in your back jinan from North Carolina madam Speaker I inquire the chair how much time it remains gentleman has two minutes remaining gentleman from Colorado has three quarters of a minute remaining we have no more speakers and I'm prepared to close sure a gentleman from North Carolina to close and magic I'm prepared to close and I yield my time to myself let me begin as I did with my opening statement I want to commend the gentleman from Colorado for how he is managed this bill and the end and brought it to the floor what we have here on the House floor and we're baiting now is a much broader bill and therefore will have a much broader vote than what we had in committee however limited we were in committee jurisdiction and congressman Perlmutter I know that if you are on the Appropriations Committee you would have worked for medical research funding I know that if you're on the Energy and Commerce Committee you would have worked for an FDA process on cannabis and if you're on the Judiciary Committee you'd have worked to descale the drug however we find ourselves on the Financial Services Committee and this is not a normal conversation that we have on the committee but this is addressing a key issue that many states are facing and many institutions financial institutions credit unions and banks are facing which is how to Bank people with a lot of cash with a product that's legal at the state level but defined at the federal level as an illicit substance that's harmful for human consumption so while Congress is taking this half-measure it doesn't resolve the issue it does not resolve the issue of medical research or understanding the brain science and how that affects the adolescent brain cannabis affects adolescent brain so there are enormous questions there there are enormous questions about the criminal justice code but those are the things that we should be debating rather than this half measure on banking and so while this is an important step in the question of the overall legalization of this drug it still doesn't resolve the issue fully and so I asked my colleagues for a no vote but I expect this vote will pass on the suspension calendar today but I want to thank my colleague for his handling of this important issue and the wise nature of how he's approached the amendment process to address many different equities across the country and with that I'd like to yield back gentleman yields back gentleman from Colorado thank you I yield myself the balance of my time let's recognize thank the gentleman from North Carolina and as I said at the top of this debate this bill is about public safety accountability and respecting states rights our bill is narrowly tailored to get cash off the streets and improve public safety and communities across the country I want to thank my co-sponsors they've heard from me they've been working with me for years and really appreciate that but especially I want to thank the staff of the Financial Services Committee the staff of my co-sponsors and my own staff for work they've done to put this bill and coalition together there are many marijuana issues that remain but this one gets the cash off the streets this is about public safety I urge all my votes I urge all my colleagues to vote YES and on the safe banking act and I yield back the balance of my time gentleman yields back the question now occurs will the house suspend the rules and pass the bill HR 1595 as amended all in favor say aye opposed no in the opinion of the chair I ask for a record vote ask for record vote its being in the affirmative for what purpose does the gentleman from a record vote does the gentleman request the yeas and nays I request the yeas and nays these and nays are requested those favoring a vote by the yeas and nays will rise a sufficient number having risen the yeas and nays are ordered members will record their votes by electronic device this will be a 15-minute vote [Music] [Music] [Applause] [Music]