Nearly entire CA House delegation – including 4 Republicans – backs cannabis banking

More than three-quarters of California’s local governments have declined to authorize retail stores to sell cannabis, as permitted by state voters with their 2016 approval of Proposition 64. Opposition has been led by moderate Democrats and conservative Republicans unconvinced that making the drug readily available for recreational use is good for society.

But much of California’s House delegation is supportive of helping the marijuana industry achieve a key goal: access to the banking system. Even with cannabis now legal in some form in 33 states, the great majority of banks and credit unions in the Golden State and elsewhere have declined to do business with marijuana-related businesses because possession and sale of the drug remain illegal under federal law.

Last week, the House passed the Secure and Fair Enforcement Banking Act 321 to 103. Every California Democrat backed the measure and so did four of the state’s seven Republican members: Majority Leader Kevin McCarthy of Bakersfield, Tom McClintock of Elk Grove, Devin Nunes of Tulare and Duncan Hunter of Alpine.

The passage of the bill after past efforts went nowhere was widely credited to a change in focus in lobbying. Leading the push this time was lobbyists for the financial services industry itself – not the cannabis industry. They argued that making a multibillion-dollar industry use cash only created headaches and safety risks for the many legitimate, longstanding businesses that dealt with cannabis companies.

Bankers say other businesses shouldn’t be inconvenienced

American Bankers Association President and CEO Rob Nichols told Politico, “The most compelling arguments have been centered around these secondary relationships. It’s the local plumber, it’s the local electrician, it’s the attorney, it’s the accountant who are doing business with a cannabis grower or dispensary who are then having challenges associated with getting banking products and services.”

The American Financial Services Association focused its lobbying on McCarthy and Speaker Nancy Pelosi, D-San Francisco, also emphasizing the need to stop inconveniencing so many established businesses.

The fate of the SAFE bill in the Senate is unclear. Senate Banking Committee Chairman Mike Crapo, R-Idaho, has said that he will schedule a hearing on the bill, but his aides said that should not be interpreted as support.

California’s Democratic senators, Dianne Feinstein and Kamala Harris, are expected to be supportive. After 35 years as a staunch supporter of the drug war, Feinstein reversed course in spring 2018.

“My state has legalized marijuana for personal use, and as California continues to implement this law, we need to ensure we have strong safety rules to prevent impaired driving and youth access, similar to other public health issues like alcohol,” she told a McClatchy reporter.

Harris has also changed her position. In 2010, while running for California attorney general, she opposed an initiative to legalize recreational marijuana use. 

“Spending two decades in courtrooms, Harris believes that drug selling harms communities,” her aide told Capitol Weekly. “Harris supports the legal use of medicinal marijuana but does not support anything beyond that.”

But her position softened over the years, and last year she signed on as a co-sponsor of a bill by Sen. Cory Booker, D-New Jersey, that would make cannabis legal under federal law.

3 comments

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  1. Queeg
    Queeg 30 September, 2019, 19:37

    Comrades

    Let the Laundering Commence!!!!!!

    Reply this comment
  2. Taheeta J. Bunns
    Taheeta J. Bunns 11 October, 2019, 16:35

    This will be a complete fiasco.

    Reply this comment
  3. Edward Ryan
    Edward Ryan 8 November, 2019, 12:32

    I’d like to comment on corruption by the California Attorney General’s failure to investigate a formal 75 page complaint on the LAPD Crime-buster Vigilante Facebook scandal matter. This is a serious matter as the Los Angeles criminal justice system skews when it comes to fair justice for all as LA homeless are attacked by LAPD supported vigilantes, then arrested and jailed if the try to fight back in self- defense. Now there is proof of “jury trial rigging “by LA Prosecutor and LAPD Slo for Topanga. Both are members of the secret vigilante Facebook group, and 2 other Vigilante group members as witnesses for a bogus littering trial where Van Nuys Judge Harmond seems to play along by issuing an extreme sentence. LAPD command now spreads disinformation saying LAPD members only posted insults to homeless when the truth is LAPD supplied tracking and other info to vigilante members. The info was used to do violent crimes and community terror stalking onto targeted homeless victims. A homeless advocate and activist for LA political reform was harassed then convicted and incarcerated for months when he was attacked on 12/29/16 in Van Nuys by the same LAPD crew. False police reports were used and judge Mulcahy Van Nuys court prevented the mentioning of vigilante abuse at trial. This happened to Ed Ryan [email protected] who had to flee LA after release because of more vigilante harassment by LAPD connected crews. Ryan’s jaw was smashed by a vigilante attacker wielding a hammer and LAPD refuse to take his complaint and investigate. Ryan now lives in Mass as LA Court court issued a probation violation warrant to further silence him. LA superior Court Presiding Judge, Kevin Brazile has so far ignored Ryan’s comprehensive complaint. Ryan challenges reporters to read the 8/1/18 complaint to Atty Gen Becerra that has plenty of screen shots of captured vigilante and LAPD postings to surely warrant the Cal AG to investigate, but he remains silent on the issue. Also remaining totally silent on this atre LA Mayor Garcetti I’d like to discuss Corruption in Los Angeles as the LAPD Crime-buster vigilante Scandal is being ignored and all LA city Councilors. LA City Atty Furey also is silent even though his long time Deputy Karin Philips is involved and is being reported to Cal BBO flor ethical violations of not disclosing vigilante group membership by entire prosecution team in People v Kevin Perelman , the van Nuys Superior Court jury trial in front of LA Superior Court Harmond that was rigged Atty Philips and LAPD SLO Dines

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Chris Reed

Chris Reed

Chris Reed is a regular contributor to Cal Watchdog. Reed is an editorial writer for U-T San Diego. Before joining the U-T in July 2005, he was the opinion-page columns editor and wrote the featured weekly Unspin column for The Orange County Register. Reed was on the national board of the Association of Opinion Page Editors from 2003-2005. From 2000 to 2005, Reed made more than 100 appearances as a featured news analyst on Los Angeles-area National Public Radio affiliate KPCC-FM. From 1990 to 1998, Reed was an editor, metro columnist and film critic at the Inland Valley Daily Bulletin in Ontario. Reed has a political science degree from the University of Hawaii (Hilo campus), where he edited the student newspaper, the Vulcan News, his senior year. He is on Twitter: @chrisreed99.

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