Congressman Steven Horsford Votes to Make Communities Safer with SAFE Banking Act

Washington, D.C. — On Wednesday, September 25, 2019, Congressman Steven Horsford (NV-04) voted to pass the Secure and Fair Enforcement Banking Act, also known as the SAFE Banking Act (H.R. 1595), prohibiting federal regulators from disciplining institutions that provide banking services to legitimate cannabis-related businesses.

"Prohibiting banking institutions from providing services to the cannabis industry creates a significant public safety risk, as these businesses are forced to operate as cash-only businesses in an industry with billions of dollars in transactions," Congressman Horsford said. "Americans in 47 states, including in Nevada, have voted to legalize some form of recreational marijuana, medical marijuana or cannabidiol (CBD) oil. Congress needs to catch up and allow these legitimate businesses access to the banking system."

Almost three years ago, Nevadan voters went to the polls and made their voices heard in support of recreational marijuana, making Nevada one of five states to legalize marijuana in the 2016 election. Local businesses owners promptly invested in Nevada's legal cannabis market hoping to take advantage of the new opportunity. Today, Nevada raises more revenue from cannabis excise taxes than alcohol excise taxes.

In spite of state-level decisions to the contrary, cannabis remains illegal under the federal Controlled Substances Act, meaning individuals who grow, possess, use, sell, transport, or distribute cannabis remain subject to federal criminal prosecution.

Therefore, businesses that legally grow, market or sell cannabis in states that have legalized its sale are generally locked out of the banking system, making it difficult for them to maintain a checking account; access credit; accept credit and debit cards; meet payroll; or pay tax revenue. This has created a significant public safety risk for consumers, since businesses are forced to operate as cash-only businesses in a growing, billion dollar industry. In the United States, half of all cannabis businesses have been robbed, putting both employees and consumers in harm's way.

The SAFE Banking Act establishes a safe harbor for any financial institution that chooses to provide banking services to legitimate businesses which hold and maintain a license from a state or local government to engage in manufacturing, growing, or producing, as well as any business who handles, sells, transports, displays or distributes cannabis or cannabis products.

"It's time to get cash off our streets and make our communities safer," Congressman Horsford said. "We owe our esteemed business owners of Nevada the opportunity to know their businesses are safe from crime and for consumers to feel safe in their day-to-day lives. This bill will accomplish that."