Advocacy News – Sept. 28, 2023
The Secure and Fair Enforcement Regulation Act (SAFER) passed the U.S. Senate Committee on Banking this past week, a historic first step.
What’s happening: The bipartisan legislation is supported by the Michigan Chamber as it would allow Federal Deposit Insurance Corporation (FDIC)-backed banks and credit unions to provide common banking and financial services for cannabis companies and workers in states that have legalized medical or recreational cannabis without fear of retribution. It ensures access to the same banking, borrowing and lending options as all other legal industries do.
The history: States with legal cannabis industries are facing this banking hurdle because cannabis is still considered to be a Schedule I narcotic by the federal government. The SAFER legislation does not de-schedule cannabis, but rather allows states that have legalized its use to have more autonomy over banking regulation of the industry. This is important as today’s cannabis landscape in Michigan and across the country looks far different than it did a few years ago — becoming legalized medically in 2008 and recreationally for adult-use in 2018 after voter referendums. A total of 38 states have decriminalized or legalized medical and/or adult-use cannabis now too.
The big picture: The lack of banking options for the cannabis industry has had a negative impact on the entrepreneurs starting these companies and the workforce that they employ. For example, Michiganders working in the cannabis space are often not able to take out a loan for a house or a car because of the banking restrictions at the federal level.
What we’re saying: Read a joint viewpoint from the Michigan Chamber and cannabis company, Common Citizen, that rank recently in Bridge Magazine.
For questions or more information, please contact Leah Robinson at lrobinson@michamber.com.