Secure and Fair Enforcement Banking Act of 2019

Floor Speech

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Mr. BARR. Madam Speaker, I rise in support of H.R. 1595, the SAFE Banking Act, and I thank the gentleman from Colorado (Mr. Perlmutter), my friend, for working with me in a bipartisan way to include two amendments that will allow legal hemp farmers and businesses in my district to access financial services.

Kentuckians have a deep interest in the production, cultivation, and sale of industrial hemp, and we have historic connections to this, too. Many Americans may not know, but my predecessor in the central Kentucky seat in Congress, Speaker of the House Henry Clay, was once a hemp farmer. Now, thanks to the farm bill, the hemp industry in the Commonwealth is booming once again.

Much of the resurgence of the industry occurred under the Industrial Hemp Research Pilot Program, established by the 2014 farm bill. Since the program's enactment in 2014, the number of approved acres in Kentucky increased from 922 to over 50,000. In 2018, sales of hemp products were three-and-a-half more times than the previous year.

The 2018 farm bill took it a step further and fully legalized industrial hemp, ending 80 years of prohibition of the plant. Hemp is now completely exempt from the Controlled Substances Act. Despite these positive steps forward, hemp businesses still have trouble accessing financial services like bank accounts, loans, and payment processing.

This bill will provide additional clarity for banks, insurance companies, and card processors that they can, in fact, do business with legally operating hemp businesses. It would also direct our Federal financial regulators to issue joint guidance to financial institutions on how to serve hemp and CBD businesses without legal risk.

There is amazing potential for hemp and hemp-derived products. One hemp farmer in my district has an exclusive deal with Patagonia to provide hemp for farming. Toyota, which has the largest manufacturing facility in my district, is exploring the use of hemp for car interiors. Hemp farmers in my district are cultivating hemp to produce products ranging from nutraceuticals, dietary supplements, pharmaceuticals, cosmetics, apparel, footwear, fashion, and even industrial products and construction materials.

But for hemp producers and businesses to fully scale up and take advantage of the descheduling under the farm bill, they need access to financial services.

Again, I thank the gentleman from Colorado (Mr. Perlmutter), my friend, for working with me in a bipartisan way, and I urge support for H.R. 1595.

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