The SAFE Banking Act Is Scrapped from Federal Defense Spending Bill
The U.S. House of Representatives passed The Safe and Fair Enforcement Banking Act (SAFE) earlier this year and has now been officially dropped. The bill was originally part of the National Defense Authorization Act (NDAA).
Had it fully passed through all necessary channels, the bill would have enabled banks and other financial institutions to serve state-legal cannabis businesses, within their state’s legal and regulatory frameworks, without fear of federal punishment.
The bill hoped to federally protect depository institutions such as banks and credit unions. It aims to protect these institutions when they are working with cannabis-related businesses within regulatory and legal parameters. Similarly, it hoped to prohibit federal banking regulators from:
- Terminating or limiting deposit insurance solely for providing financial service to a cannabis business.
- Penalizing or discouraging a bank from providing financial services to properly licensed cannabis companies.
- Recommending or incentivizing banks to refuse, downgrade, or cancel financial services because the account holder is a cannabis business.
- Taking any adverse action on a loan made to a cannabis business OR to an operator of real estate or equipment that is leased to a cannabis business.
What’s Next?
Unfortunately, the time for this bill to clear congress has now passed. The final text of the National Defense Authorization Act for Fiscal Year 2022 does not include the SAFE Banking Act. The bill is in more lobbying registrations than other cannabis bills currently circulating in Congress. Cannabis companies have even registered just to lobby for this bill.
The future of The SAFE Banking Act, which has been around for 8 years, is not clear. This is not the only federal cannabis bill in circulation. However, as many states continue with state-level legalization, and the market for legal cannabis continues to grow, businesses must continue to navigate the financial minefield.
Despite the existing challenges that exist within the industry, Payroll Systems, along with our banking partners, can assist you in navigating through financial compliance and obtaining the financial services that are necessary to grow your business.
Are you ready to thrive in your industry? Are you ready to say goodbye to your payroll worries? Ready to partner with a payroll company you can count on year after year? The right payroll and HR solutions, resources to stay compliant, and the support of expert account managers can help your business grow and thrive.
Contact us today to see how we can help your business stay compliant and efficient.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.