Key Senator Tours Marijuana Business And Promotes Banking Bill Amid Growing Industry Frustration Over Inaction

As marijuana industry stakeholders continue to await Senate floor action on a bipartisan marijuana banking bill—with some feeling emboldened by former President Donald Trump’s recent endorsement of the reform—a key Democratic senator is reiterating the need to advance the legislation as a public safety imperative, promoting it in a video where he tours an Ohio cannabis business.

Senate Banking Committee Chairman Sherrod Brown (D-OH) shared a pair of videos on X on Friday showing him touring the cannabis company Firelands Scientific, learning about their seed-to-sale process as one of the first businesses in Ohio to received a certification to work with both medical and adult-use markets since the state started approving dual licenses last month.

He took the opportunity to promote a bill—the Secure and Fair Enforcement Regulation (SAFER) Banking Act—that cleared his committee last September but is still pending action on the Senate floor.

Brown said that “cannabis industry workers face security and safety concerns due to their limited access to financial services,” which is “why we’re working on passing the SAFER Banking Act.”

“This bill will make it safer for legal cannabis businesses to operate in their communities and to protect their workers,” he said.

We stopped by Firelands Scientific in Huron to hear from cannabis workers about how we can make it safer for them to operate in Ohio and protect workers. pic.twitter.com/pjYeAH8kcx

— Sherrod Brown (@SherrodBrown) September 13, 2024

The posts got some pushback from industry insiders and investors who have grown increasingly frustrated with the lack of progress on the legislation since its committee passage. While Brown facilitated a historic committee vote on SAFER last year—and he does not control the floor agenda—Senate Democrats have widely faced criticism from many in the sector over the perception that they want to associate themselves with the popular issue of cannabis reform but have yet to deliver on it.

Senate Majority Leader Chuck Schumer (D-NY) has borne the brunt of that criticism in recent years, with critics quick to challenge his repeated statements that the marijuana banking legislation is a priority for Democrats in the chamber and that it would be taken up on the floor “soon.”

But while Schumer does set the floor agenda, there have been a number of political and logistical complications such as partisan infighting over must-pass appropriations bills, staunch resistance to marijuana reform from certain GOP leaders, disputes over various provisions of the banking measure and lingering questions about its prospects in the GOP-controlled House.

Many would like to see a Senate roll call vote on the bill before the end of this Congress—at the very least so members are forced to go on the record amid conflicting reports about whether it has enough support to reach the steep 60-vote threshold to advance to passage. But if it were to fail, some feel that setback could prove all the more damaging to its long-term prospects of success.

Because of the passage of Issue 2 last fall, several Ohio businesses can now sell recreational marijuana. pic.twitter.com/EbO7d6HOCj

— Sherrod Brown (@SherrodBrown) September 13, 2024

Marijuana Moment reached out to Schumer’s office for comment, but representatives did not respond by the time of publication.

Brown, for his part, told Marijuana Moment last week that “we don’t have enough Republicans, we don’t think.”

“We’re trying to figure out how to move these things when we have a Republican party that doesn’t always step up,” he said, noting opposition from Sen. Tim Scott (R-SC), ranking member of the Banking Committee. That said, since it already moved through that panel, it’s unclear why that would represent a major obstacle to bringing it to the floor.

Of course, bills of any virtually any kind tend to face uphill battles in election years, especially one as contentious as this November’s and during a divided Congress. But in an unexpected turn of events, Trump, the GOP presidential nominee, came out in favor of marijuana industry banking access this month. He also backed federal rescheduling and a Florida marijuana legalization ballot initiative, making this the first time in U.S. history where both major party nominees are supporting meaningful cannabis reform. Vice President Kamala Harris hasn’t spoken about the issue since accepting the nomination, but she’s previously advocated for federal legalization.

Brown said last week that he hasn’t been following the presidential campaigns closely enough to have formed an opinion about Trump’s cannabis policy pivot. But some see a critical opportunity in the development, possibly moving the needle for certain of the former president’s allies in Congress enough to bring them into the “yes” category on SAFER Banking.

Rep. Earl Blumenauer (D-OR), co-chair of the Congressional Cannabis Caucus, is among those hoping to leverage this latest example of bipartisan momentum to move on marijuana reform. He said in a letter to House Speaker Mike Johnson (R-LA) on Monday that the cannabis banking bill is one example of a measure that should be brought to the floor imminently following Trump’s statement, as well as recent reporting about unearthed audio where former President Richard Nixon could be heard conceding that cannabis is “not particularly dangerous.”

“I would suggest moving policies that, instead of further dividing us, makes a difference for the American people, including for our veterans, law enforcement, small businesses, and more,” the congressman, who is retiring at the end of this Congress, said. “It’s never too late to do the right thing.”

Whether Johnson would be willing to take the congressman’s advice remains to be seen, however. Prior to becoming speaker, Johnson consistently opposed cannabis reform, including on incremental issues like cannabis banking and making it easier to conduct scientific research on the plant.

Meanwhile, Sen. John Hickenlooper (D-CO) separately told Marijuana Moment in a recent interview that if Trump is serious about his recently stated support for the SAFER Banking Act, he needs to “bring us some Republican senators” to advance it through the chamber.

Hickenlooper said that while he hadn’t been appraised on the latest Trump remarks on cannabis banking at the time, he’s skeptical about how serious the former president is in the position, commenting that “it might change by tomorrow” given his proclivity for rapidly taking on opposite sides of various issues.

He added that the SAFER Banking Act is “going through this process,” but he also said the Biden administration’s push to federally reschedule cannabis represents “a major step forward” that could help grease the wheels on marijuana banking reform.

“I think rescheduling is going to get SAFE Banking through the Senate,” the senator said. “Donald Trump can say whatever he wants, but unless you bring us some Republican senators, we’re not going to get SAFE Banking.”

There’s been sizable skepticism about the sincerity of Trump’s newfound cannabis position, including among bipartisan lawmakers.

For example, Reps. Alexandria Ocasio-Cortez (D-NY) and Andy Harris (R-MD) argued recently that the policy pivot amounts to a campaign ploy to attract voters ahead of the November election. Harris’s campaign has also recently accused Trump of lying about his support for marijuana reform, stating that his “blatant pandering” runs counter to his administration’s record on cannabis.

“As president, Trump cracked down on nonviolent marijuana offenses—undermining state legalization laws, opposed safe banking legislation, and even tried to remove protections for medical marijuana,” Harris campaign spokesperson Joseph Costello said. “Donald Trump does not actually believe in marijuana reform, but the American people are smart enough to see through his campaign lies.”

While the campaign seems willing to call out Trump on his marijuana platform, it has so far declined to detail the Democratic nominee’s own position—even though she privately reaffirmed her support for legalization during a roundtable event at the White House event with marijuana pardon recipients in March and also sponsored a bill to end federal prohibition during her time in the Senate.

Advocates have also taken notice that a new, long-awaited issues page launched by the Harris campaign omits any mention of marijuana policy reform despite her record promoting comprehensive legalization.

Rep. Nancy Mace (R-SC), who is sponsoring a bill to federally legalize marijuana called the States Reform Act, separately said that while she hoped Trump would back the Biden administration’s rescheduling move, she also said part of the reason Republicans in Congress have declined to embrace marijuana policy change is because they’re “afraid of it.”

Trump also recently went after Harris over her prosecutorial record on marijuana, claiming that she put “thousands and thousands of Black people in jail” for cannabis offenses—but the full record of her time in office is more nuanced.

Trump’s line of attack, while misleading, was nonetheless notable in the sense that the GOP presidential nominee implied that he disagrees with criminalizing people over marijuana and is moving to leverage the idea that Harris played a role in racially disproportionate mass incarceration.

For what it’s worth, the Congressional Research Service (CRS) released a report last month explaining that federal marijuana rescheduling is “unlikely” to improve banking access for state-legal cannabis businesses, But Blumenauer similarly argued that the reclassification move, when it is enacted, could have a political effect that spurs action on the separate marijuana banking legislation.

It should also be noted that the proposed rescheduling action isn’t guaranteed. Following a public comment period, the Drug Enforcement Administration (DEA) last month announced that it has scheduled an administrative hearing in December to gain additional input before potentially finalizing the rule. It’s possible that rulemaking could extend into January, meaning there’s a chance that the next presidential administration could influence the final outcome.

Biden Acknowledges That Marijuana Rescheduling Isn’t A Done Deal Yet As He Touts Administration’s Reform Efforts