WASHINGTON–Rep. Ed Perlmutter (D-CO) recalls when he was elected to the Colorado Senate, someone told him that when it comes to legislation, “Carry it, don’t marry it.”
Now, after a decade of sponsoring legislation that would remove federal prohibitions around financial institutions serving cannabis businesses, Perlmutter said he’s in a “common law marriage” with the legislation.
But that marriage needs some help from the credit union family, according to Perlmutter, the chairman of Subcommittee on Consumer Protection and Financial Institutions, who urged CUs meeting here for NAFCU’s Congressional Caucus to help him get the SAFE Banking Act through the Senate.
‘The Other Side of the Coin’
“The federal government operates in a slow fashion typically, but it can move quickly when needed. When everybody is pulling together, we can get a lot done,” said Perlmutter. “But the other side of the coin is a poor little bill I’ve been carrying for a long time, SAFE banking. It’s designed to solve a problem. We now have 48 states and DC and all the territories that have some level of (permissible) marijuana use.
“I was not planning to be the champion on this issue, but we could see there was going to be a collusion between federal and state laws on this subject,” he continued. “This has been a very cash-intensive business. In Colorado, we have had burglaries and murders and trucks driving right into the front of dispensaries because there is a lot of cash.”
Seven Times a Bridesmaid
Perlmutter noted the Obama administration provided two guidances on banking services for cannabis businesses, the Cole Memo and the FinCEN guidance. The Trump administration immediately revoked the Cole Memo, but then Treasury Secretary Steve Mnuchin maintained the FinCEN guidance for normal banking services.
“But, that guidance could be revoked, too,” cautioned Perlmutter.
Perlmutter reminded the SAFE Banking Act, which provides a safe harbor to financial institutions, has passed the House in various forms seven times now, with strong bipartisan support.
“Every time we pass it, it passes with big numbers. Moving it through the Senate has been a whole other story,” he said. “In the Senate, Republicans thought the bill was too big and too broad. For the Democrats, the bill is too narrow and too limited, and it goes nowhere in the Senate.”
Perlmutter said he now expects the Senate to have the votes for the SAFE Banking, including Democrats and Republicans in the Senate. He added he anticipates there will be a bill called SAFE Banking Plus, which would allow, among other things, the VA to prescribe marijuana for those with PTSD, for research that doesn’t violate federal law, and for expungement for minor infractions.
‘My Last Plea’
Perlmutter, who is retiring with this term, told his audience, “This is my last plea, the last time you’re going to hear from me. I need your help to get this passed. And you guys have the clout to be able to do it. So, please talk to your senators. I know we have 60 votes for SAFE Banking. We do not have 60 votes to decriminalize it, which is the simplest and most elegant thing to do.”
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