Pubdate: Thu, 20 Mar 2014
Source: Denver Post (CO)
Copyright: 2014 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Authors: Kate Gibbons and Alison Noon

PLAN DRAWS YAWNS IN D.C.

A measure that could end cash-only practices for pot shops gets 
little interest in two House committees.

As cannabis workers carry cash by the briefcase throughout Colorado, 
the lack of interest in Washington suggests that a bill to 
green-light banking practices for the marijuana industry is headed 
nowhere fast.

Federal legislation that could end cash-only practices in the 
marijuana industry will likely remain stuck in committee this year, 
with near silence from Washington lawmakers as to why it has.

A Denver Post survey of the two House committees that could take 
immediate action found only one member outside the bill's signed 
supporters and the Colorado delegation had interest in discussing the subject.

Four of 60 members of the Financial Services Committee and one of the 
39 Judiciary Committee members said they had no position. The rest 
did not respond.

Most Colorado members are in favor of the bill, but the delegation is mixed.

The Colorado-rooted bill at the center of the issue, HR 2652, would 
allow banks to do business with pot retailers and businesses in 
states that legalize the drug, and was introduced in the U.S. House 
of Representatives in July by Rep. Ed Perlmutter, D-Colo., and Rep. 
Denny Heck, D-Wash.

"The almost universal response is the rolling of one's eyes," Heck 
said of his attempts to discuss the bill.

Under the bill, recreational and medical marijuana enterprises 
legalized in 20 states and the District of Columbia could open bank 
accounts and use credit cards. businesses within the industry operate 
cash-only because financial institutions fear prosecution should they 
offer banking services to the federally illegal marijuana industry.

"We need from a public safety and a crime perspective to allow legal 
businesses in the state of Colorado to operate in a normal business 
fashion," Perlmutter said. "And not simply operate on major piles of cash."

Perlmutter expects five more states to legalize medical or 
recreational marijuana by the end of this year.

Perlmutter and Heck said they have pressed for action since the bill 
was introduced but are pessimistic about its prospects this year. The 
bill has yet to be scheduled for a hearing in either committee.

"The sunshine of a hearing would change the discussion of this," Heck said.

Both said that for the bill to have a chance of passing, more states 
will need to legalize marijuana.

For Perlmutter, who was not aware on Friday that the bill was stuck 
in more than one committee, the likelihood of it moving forward is 
dependent on the Republican leadership in the committees.

"If I were in the majority and Democrats were running the House, you 
can bet it would have gotten a hearing," Perlmutter said. "If you 
want to just get down to basic power and how this place operates, that's it."

According to Perlmutter and Heck, the majority leadership and the 
members of the Financial Services committee have little interest in 
discussing the matter because it is perceived as a marijuana issue 
rather than a banking one. Most committee members represent 
constituencies that do not have any form of legalized marijuana.

Republican leadership assigned it to the Financial Services and 
Judiciary committees on July 10, 2013, the same day Perlmutter 
introduced it with signed support from 16 other Democrats and two 
Republicans. Today the bill has 29 total co-sponsors, including 
representatives who do not sit on the committees.

Colorado Reps. Diana DeGette, D-Denver, Jared Polis, D-Boulder, and 
Mike Coffman, R-Aurora, co-sponsored the bill. Reps. Tipton, 
R-Cortez, and Gardner, R-Yuma), have not taken positions, and Rep. 
Doug Lamborn, R-Colo. Springs, opposes the legislation. If the bill 
were to make it to theU.S. Senate, Colorado Sen. Michael Bennet 
supports it, and Sen. MarkUdall has not taken a position. Both 
senators are Democrats.

Perlmutter's membership in the House Financial Services Committee was 
the primary reason he assumed responsibility of the banking topic. He 
said he has met with committee leadership at least once a month for 
the past eight to stress the importance of legal marijuana banking.

Perlmutter said cash sitting in marijuana shops invites robbery, 
assault and battery, tax evasion, skimming and fraud. Because 
marijuana dispensaries are primarily small operations, he said their 
banking concerns are also a small-business issue.

On Feb. 14, theU.S. Department of Justice and the U.S. Department of 
the Treasury's Financial Crimes Enforcement Network issued a 
statement delineating how banks could "enhance the availability of 
financial services for, and the financial transparency of, 
marijuana-related businesses."

When Perlmutter met with committee leadership last week, they wanted 
to understand why the federal guidance does not solve problems 
related to the cash-only system. In Colorado, bankers have signaled 
that they are not comfortable with the rule change and would rather 
see legislative action.

Perlmutter also pointed out that a change in the White House could 
end the new banking regulations.
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MAP posted-by: Jay Bergstrom