(Dec. 10, 2021) The latest version of the National Defense Authorization Act (NDAA) – must-pass, annual legislation that includes funding for the military, among other things — does not include the SAFE Banking Act, which would allow credit unions to serve legal cannabis-related businesses in states that have legalized cannabis. The House has previously passed an NDAA version that included the SAFE bill; however, that provision ran into trouble gaining support by Senate leaders. NASCUS has strongly supported adoption of the bill … NASCUS sent to credit union and associate members their 2022 membership dues invoices this week. NASCUS primary points of contacts should look for an email from Shellee Mitchell, Program Specialist. If you do not receive your invoice by next week, please let Shellee know at [email protected] NASCUS appreciates the ongoing support from our membership, and we look forward working with you in 2022.
(Nov. 19, 2021) A new hurdle emerged in the Senate this week to legislation that would provide clarity to financial institutions seeking to serve legitimate cannabis businesses: disagreement about whether to include the provisions in pending legislation, or advance it as part of a larger package largely changing federal marijuana laws.
The disagreement, at least for now, imperils the future of the bill for financial institutions serving legitimate cannabis businesses.
The Secure and Fair Enforcement (SAFE) Banking Act would provide a safe harbor for credit unions and banks serving cannabis businesses in states where it is legal. More than 35 states have legalized cannabis for medical or adult use. However, federal law prohibits credit unions and banks from safely banking cannabis businesses, including those that provide them with goods and services.
The legislation has passed the House with bipartisan support and was added to the House version of the National Defense Authorization Act (NDAA), must-pass legislation by year’s end to essentially keep the military funded.
But some in the Senate want to add more provisions related to marijuana legalization to the Senate NDAA version. On Thursday, Senate Democratic leaders indicated the SAFE Banking Act would not be considered in the Senate as part of the NDAA without the broader marijuana decriminalization provisions – essentially removing the SAFE bill from the NDAA, at least for now.
(Nov. 12, 2021) A bipartisan group of 24 governors and other top officials called on the Congress this week to include the SAFE Banking Act – legislation supported by the state system to provide clarity to financial institutions seeking to serve legitimate cannabis businesses – as an amendment to the military funding bill now pending in Congress.
The governors, territorial leaders and the mayor of the District of Columbia – 20 Democrats and four Republicans – said the SAFE Banking Act has “more bipartisan support than ever before.”
The legislation has passed the House but has not been taken up in the Senate. It would provide a safe harbor for credit unions and banks serving cannabis businesses in states where it is legal. More than 35 states have legalized cannabis for medical or adult use. However, federal law prohibits credit unions and banks from safely banking cannabis businesses, including those that provide them with goods and services.
The state and territorial leaders argued that the bill should be added to the National Defense Authorization Act (NDAA), must-pass legislation by year’s end to essentially keep the military funded. The House has added the provision to its version of the NDAA; the Senate has not yet acted. The state leaders wrote that the issue was one of public safety.
“Medical and recreational cannabis sales in the U.S. were estimated to total $17.5 billion last year, but because of antiquated federal banking regulations, almost all cannabis transactions are cash-based,” the leaders wrote. “Not only are cash-only businesses targets for crime, cannabis businesses are further disadvantaged compared to other legal businesses by being unable to open bank accounts or obtain loans at reasonable rates. The cannabis industry is legal in some form in the majority of U.S. states and it is too large of a market to be prohibited from banking opportunities.”
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(April 23, 2021) The House passed NASCUS-backed legislation this week (again) aimed at providing a safe harbor for financial institutions seeking to serve legitimate cannabis-related businesses in states where the activity is legal. The Secure and Fair Enforcement Banking Act (SAFE Banking Act) of 2021 (H.R. 1996), adopted on a 321-101 vote, is similar to legislation that made its way through the House in the last Congress, but ultimately did not come up for a vote in the Senate. Senate Majority Leader Chuck Schumer (D-N.Y.) has indicated the Senate would consider the bill as part of broader legislation addressing marijuana use … Implementation of the new current expected credit losses (CECL) accounting standard – particularly technical issues related to purchased financial assets with credit deterioration (PCDs) and troubled debt restructurings (TDRs)– will be the subject of a three-hour virtual event scheduled for May 20, the Financial Accounting Standards Board (FASB) said this week. The virtual roundtable on CECL will be webcast live from 9 a.m. to noon ET. FASB said the roundtable – which it also termed a “listening session” – is aimed at helping FASB members and staff gather additional feedback on implementation for the CECL standard … Businesses and tax-exempt organizations with less than 500 employees — including credit unions — can receive a tax credit toward Medicare taxes they pay for providing paid time off for each employee receiving an anti-COVID-19 vaccination and for any time needed to recover from the injection, the Treasury and the IRS said this week. The announcement came after comments earlier in the day by President Joe Biden (D) outlining the program in a televised address. The Treasury and tax agency said that, as an example of use of the program, if an eligible employer offers employees a paid day off to be vaccinated the employer can receive a tax credit equal to the wages paid to its workers for that day (up to certain limits).
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FASB to Host Virtual Credit Losses Roundtable on May 20, 2021
(March 26, 2021) Today is the effective date of NCUA’s new rule on joint ownership share accounts, which essentially permits the use of records other than signed membership cards or account signature cards as evidence that a jointly owned account qualifies for share insurance coverage apart from individually owned accounts. The final rule was approved by the NCUA Board at its February meeting … A new version (for this Congress) of the “Secure and Fair Enforcement Banking Act” (SAFE Banking Act, H.R. 1996) – which aims to provide protections for financial institutions serving cannabis-based businesses where it is legal – was introduced March 18 in the House by Reps. Ed Perlmutter (D-Colo.), Nydia Velazquez (D-N.Y.), Steve Stivers (R-Ohio) and Warren Davidson (R-Ohio). The legislation is similar to bills introduced (and which passed the House in 2019), but yet to become law, in previous Congresses … A Senate vote Thursday sent a bill extending the Paycheck Protection Program (PPP) to May 31 to President Joe Biden for his signature; the bill had previously been approved by the House. The Paycheck Protection Program Extension Act (H.R. 1799) would allow loan applications to the program—currently set to expire on March 31—for two more months and give the Small Business Administration (SBA) 30 additional days to process loan applications made by the new May 31 deadline … An April 14 webinar on BSA/AML compliance has been scheduled by NCUA, to provide updates on recently issued BSA statements, actions for managing high-risk accounts and highlights of the 2020 Anti-Money Laundering Act. The webinar is slated to start at 2 p.m. ET and last about an hour. (NASCUS and CUNA jointly host an annual BSA/AML compliance conference, scheduled again this year for the coming fall.) … Mark your calendars for the April 22 Pierre Jay Awards 2021 virtual presentation ceremony, getting underway at 2 p.m. ET. There is no charge for attending the event, although registration is required. Three leaders of the state system — Patty Idol, Kim Santos and Sarah Vega — are being recognized for the 2021 awards, which are the highest honors bestowed by NASCUS for persons or entities demonstrating service, commitment and leadership to the state system.
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Joint Ownership Share Accounts (final rule)
NASCUS summary: Joint Ownership Share Accounts (members only)
PPP Extension Act of 2021 (H.R. 1799)
Registration Now Open for April 14 Webinar on BSA/AML Compliance
Registration: Pierre Jay Awards April 22 presentations, registration