Senate advances bill to allow marijuana industry to bank with financial institutions

close

Video

Legalization of marijuana linked to a 'massive increase' in mental illness in US: Dr. Kevin Sabet

Former White House drug policy adviser Dr. Kevin Sabet breaks down the unspoken risks of weed legalization on 'Sunday Night in America.'

A new bill that will allow the legal marijuana industry to bank with financial institutions cleared a big hurdle in the Senate on Wednesday.

The Secure and Fair Enforcement Regulation Banking Act (SAFER Act) was approved by the Senate Banking Committee in a 14-9 vote Wednesday morning. The bill will now proceed to the full chamber for a final vote.

Senate Majority Leader Chuck Schumer, D-N.Y. – one of the bill’s staunch supporters – said on the floor Wednesday morning the upper chamber will prioritize passing the bill.

"I will bring SAFER banking to the floor for a vote as quickly as possible," Schumer said in his opening remarks. "For too long, cannabis businesses have been forced to rely primarily on cash transactions. No credit or debit cards, dealing only in cash, stifles these businesses' growth, opens them up to so many risks, makes them easy targets for theft, robbery and other crimes."

MARIJUANA RECOMMENDATION BY US HEALTH AGENCY HAILED AS FIRST STEP TO EASING RESTRICTIONS

A cannabis dispensary sign at Union Square Travel Agency in New York, on Feb. 16, 2023. (Gabby Jones/Bloomberg via Getty Images)

The SAFER Act, authored by Sens. Jeff Merkley, D-Ore., and Steve Daines, R-Mont., was introduced last week with some bipartisan support. While 39 states have already legalized marijuana, the industry has been a target of theft and crime as they are required to make only cash transactions.

The legislation, which allows cannabis businesses access to insurance and other financial services, prevents banking institutions from closing an account unless there is a "valid" reason. 

"Personal beliefs or political motivations" are also not permissible reasons to terminate clients’ accounts, according to the bill.

LOOK WHO'S EXPERIMENTING WITH MARIJUANA TODAY MORE THAN ANY OTHER AGE GROUP

Senate Majority Leader Charles Schumer conducts a news conference at the U.S. Capitol on June 21, 2023. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Even though Daines co-authored the bill, he said during Wednesday’s mark up he doesn’t support the federal legalization of marijuana – rather, he narrowed in on his support for legal cannabis businesses being permitted to utilize banking services.

"This bill is about public safety first and foremost," Daines said. "The current all-cash model of legal cannabis businesses makes them targets for theft, for tax evasion, and for organized crime."

He added, "The key to addressing this risk is by ensuring all legal businesses have access to the banking system."

BIPARTISAN BILL WOULD ALLOW PEOPLE WHO CONSUMED MARIJUANA TO GAIN FEDERAL EMPLOYMENT

Sen. Steve Daines co-authored the SAFER Banking Act, but does not support federal legalization of marijuana. (Drew Angerer/Getty Images)

CLICK HERE TO GET THE FOX NEWS APP

The U.S. Department of Health and Human Services (HHS) recently proposed relaxing some restrictions on marijuana by reclassifying it from a Schedule I to a Schedule III drug.

The prior iteration of the bill, known as the SAFE Banking Act of 2021, did not succeed in obtaining a Senate vote, even though it had been passed by the House seven times.

If the bill clears the Senate, it will then have to battle for survival in the GOP-controlled lower chamber.