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CONGRESSIONAL RECORD— Extensions of Remarks E460 HON. WARREN DAVIDSON

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CONGRESSIONAL RECORD— Extensions of Remarks E460 HON. WARREN DAVIDSON E460 CONGRESSIONAL RECORD — Extensions of Remarks April 28, 2021 US CANNABIS COUNCIL, LAW ENFORCEMENT actions are documented in secure bank- Washington, DC, April 19, 2021. ACTION PARTNERSHIP, ing records. Banks can assist with in- Hon. ED PERLMUTTER, Medford, MA, March 17, 2021. vestigations by flagging suspicious ac- Member of Congress, RE SAFE Banking Act—Position: Support. tivity and alerting authorities to busi- Washington, DC. Hon. ED PERLMUTTER, Hon. STEVE STIVERS, nesses that may be involved in orga- Member of Congress, nized crime. Financial records are used Member of Congress, Washington, DC. Washington, DC. Hon. NYDIA M. VELA´ ZQUEZ, to locate people, estimate the size of an Hon. NYDIA M. VELAZQUEZ, Member of Congress organization, and build cases against Member of Congress, Washington, DC. hardened criminals. A well-known ex- Washington, DC. Hon. STEVE STIVERS, ample is Al Capone, who, after a life- Hon. WARREN DAVIDSON, Member of Congress, time of notoriety, was finally arrested Member of Congress, Washington, DC. for tax-evasion. When marijuana busi- Washington, DC. Hon. WARREN DAVIDSON, nesses have to work with cash, banks DEAR REPRESENTATIVES PERLMUTTER, Member of Congress, have limited ability to flag suspicious VELAZQUEZ, STIVERS AND DAVIDSON: On Washington, DC. activity—and otherwise legal busi- behalf of the United States Cannabis DEAR REPRESENTATIVES PERLMUTTER, nesses are more likely to be overrun by Council (USCG), I write to you to sup- VELA´ ZQUEZ, STIVERS, AND DAVIDSON: port the swift passage of H.R. 1996, also Thank you for the opportunity to once cartels in the absence of a paper trail. I’m not one for fear mongering—what known as the SAFE Banking Act. again participate in this historic dis- I testify to is rooted in experience and The SAFE Banking Act addresses a cussion of the SAFE Banking Act. research. Any police officer who has crucial problem within the emerging LEAP’s previous executive director, worked the street or investigated cannabis industry: access to regulated Major Neill Franklin (Ret.), was hon- enough robberies will testify to the financial services. As states continue ored to have testified in the sub- same regarding any business forced to to legalize cannabis, opening new eco- committee hearing in 2019 and we handle large amounts of cash. nomic opportunities for business own- would like to affirm our ongoing sup- The SAFE Banking Act presents us ers, one problem continues to persist— port of this important bill. with an opportunity to help stabilize Black Americans and other racial mi- I spent 21 years in law enforcement, the marijuana industry and enhance norities are precluded from the state- and upon leaving, I continued to serve public safety. I believe it is my respon- legal industry due to a lack of financ- the public. My mission has always sibility as a lifelong public servant to ing and barriers to entry. been, and will always be, to promote stay involved in this legislation to the By protecting banking institutions safety and justice. As the executive di- very end. that extend financial services to the rector of the Law Enforcement Action Thank you for your time and for cannabis industry, existing operators Partnership (LEAP), a nonpartisan, bringing the SAFE Banking Act to a and minority-owned businesses seeking nonprofit of police prosecutors, judges vote. access into the industry benefit from and other criminal justice profes- sionals, I’ve helped ensure our mission Respectfully, access to institutional capital. Indeed, LIEUTENANT DIANE today’s situation is reminiscent of a is to mobilize the voice of law enforce- ment in support of policies that will GOLDSTEIN (Ret.), previous era in which minorities were Executive Director, make us all safer. routinely redlined out of access to Law Enforcement Action Partnership (LEAP). At a time when more than a dozen banking credit, capital, and cash. The states have voted to regulate and con- SAFE Banking Act would alleviate the MOUNTAIN WEST trol marijuana, and dozens more have problem of minority equity and access CREDIT UNION ASSOCIATION, implemented programs for medical with the cannabis industry in crucial Denver, CO, March 18, 2021. marijuana, it is beyond time for the Congressman ED PERLMUTTER. ways. Further, it protects the 321,000 federal government to update the Washington, DC. employees directly affected by the can- banking system to support these demo- DEAR CONGRESSMAN PERLMUTTER: I write nabis industry’s lack of access and cratic choices. to you today in support of the Secure and whose retirement, insurance, and bank- When my predecessor testified in Fair Enforcement (SAFE) Banking Act of 2021. This legislation provides important pro- ing accesses are constantly in peril. 2019, he told the story of a dispensary It is imperative that the SAFE Bank- tections for our credit unions that wish to owner from Orange County, California, provide financial services to legal entities in ing Act is passed by the House of Rep- who was kidnapped, tortured, perma- resentatives. In doing so, the House their states. nently mutilated, and left for dead. By As financial services providers serving would take a meaningful first step in the grace of God, he survived this des- nearly 4 million members in Arizona, Colo- establishing a more equitable cannabis picable act of violence, but the condi- rado and Wyoming, credit unions play a cen- industry within the US, ensuring mi- tions under which marijuana industry tral role in our communities by fulfilling norities that were most affected by the workers risk similar victimization per- banking needs that may not be otherwise War on Drugs are properly represented. available. Currently, however, we cannot sist. serve an industry that generates several bil- The US Cannabis Council voices its The conditions persist because one of support for H.R. 1996 and commends the lion dollars in sales and tax revenues—the the fastest growing markets in the recreational cannabis industry—without sub- bill authors and Speaker PELOSI for country has nowhere to legally put its stantial risk due to ongoing uncertainty your and her attention to this impor- money. When thieves know a business over federal enforcement of the Controlled tant issue. is operating in cash, it becomes a fairly Substances Act. This has become not only a Sincerely, simple matter to target the owners and states’ rights issue, but an important public STEVEN W. HAWKINS, safety issue. Without access to standard Interim President & CEO, employees. Suddenly, something as mundane as making a tax payment be- banking services, some of these companies U.S. Cannabis Council. have had to come up with alternative solu- comes a potentially lethal situation. tions. Many are unable to undertake the f This lack of regulatory framework is most basic functions of successful busi- precisely why voters have made the nesses, such as paying vendors, employees, SUPPORTING H.R. 1996 drug legal in some parts of the coun- and taxes, but instead have large amounts of try. Underground markets enrich money unsecured, unaccountable and at risk HON. WARREN DAVIDSON criminals at the expense of everyone’s for abuse. The SAFE Banking Act would provide the OF OHIO safety. We cannot simply acknowledge safe harbor we need as financial services pro- IN THE HOUSE OF REPRESENTATIVES marijuana is now legal in some states or look the other way while it happens; viders to service this growing industry and Wednesday, April 28, 2021 protect our members and the taxpayers of we have to build a model for how to our states. This is a matter independent of Mr. DAVIDSON. Madam Speaker, I include keep people safe while voters decide to the question of legalization of cannabis and in the RECORD the following letters of endorse- move the industry above-ground. is about ensuring that legal businesses have ment for H.R. 1996, the SAFE Banking Act of Police agencies can access financial the basic financial services they need for 2021. records more easily when the trans- compliance and accountability. VerDate Sep 11 2014 06:50 Apr 29, 2021 Jkt 019060 PO 00000 Frm 00002 Fmt 0626 Sfmt 0634 E:\CR\FM\A28AP8.002 E28APPT1 ctelli on DSK11ZRN23PROD with REMARKS April 28, 2021 CONGRESSIONAL RECORD — Extensions of Remarks E461 Thank for your leadership on this issue. level for credit unions that choose to provide against criminal enterprises. To that extent, We hope Congress will take swift action to financial services to state-authorized MRBs we fully support the key elements of the address this matter and pass the SAFE and ancillary businesses that may serve SAFE Banking Act that comport with our Banking Act without delay. those businesses in states where such activ- association’s policy as outlined in this letter Sincerely, ity is legal. While H.R. 1996 does not address and that is contained in our policy resolu- SCOTT EARL, every issue on this front, it seeks to provide tion (see attachment). We also thank Rep. President/CEO, a safe harbor for financial institutions that Perlmutter, Rep. Stivers, Sen. Merkley, Sen. Mountain West Credit Union Association. wish to serve such businesses and would be Daines and all of their colleagues for leading an important step towards improving clarity on this issue. NATIONAL ASSOCIATION OF and addressing what is often perceived as I have asked our policy director, Brian FEDERALLY-INSURED CREDIT misalignment between federal and state Egan, to follow up with your offices should UNIONS, laws. It is with this in mind that NAFCU you have any questions, comments or con- Arlington, VA, April 19, 2021. urges you to support the SAFE Banking Act cerns. Please consider our members and pro- Re H.R. 1996, the SAFE Banking Act of 2021. of 2021 when it comes before the House. fessional staff as resources to you and your Thank you for your attention to this im- teams.
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