Pubdate: Sun, 05 Apr 2015
Source: Denver Post (CO)
Copyright: 2015 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: David Migoya

HOUSE SHOWS NO RUSH ON POT

Congress doesn't have the appetite to deal with the conflict between 
federal and state laws that has caused a banking crisis for the 
burgeoning marijuana industry in Colorado and other states, according 
to a member of a House committee that would take up the debate.

Despite repeated calls for Congress to address federal rules that 
restrict banks from openly working with the marijuana industry - the 
drug is illegal under federal law - U.S. Rep. Scott Tipton, R-Cortez, 
said he sees little resolve in Washington, D.C., to take it on.

Tipton, a member of the House Committee on Financial Services, said 
in an interview that he believes it's also unlikely the Federal 
Reserve will act anytime soon on marijuana-only Fourth Corner Credit 
Union's request for direct access to the nation's banking system.

"Those who are on the outside do not have the appetite to take on the 
issue," Tipton told The Denver Post in an interview. "There's nothing 
much on (the discussion) right now, and I'm not sure when it might be."

Supporters of federal legislation to give financial institutions a 
green light to deal with marijuana business - the U.S. Department of 
Justice has offered guidelines on how the relationship should work 
but not assurances it wouldn't prosecute - say momentum is on their 
side as more states legalize the drug.

Tipton said some bankers have privately told him they'd like to be 
able to work with the businesses that legally grow and sell marijuana 
in Colorado, but federal laws still make the relationship akin to 
money laundering.

While Tipton said he's aware of the challenges marijuana businesses 
face in acquiring and holding onto bank accounts "and the need for a 
solution," one doesn't seem to be forthcoming.

"Then there's the issue of commingling of funds between businesses, 
or those in bordering states," Tipton said of owners of cannabis 
businesses who might have cross-ownership in another industry. "I'm 
not sure how we solve that."

One of the state's loudest supporters for a congressional fix, Rep. 
Ed Perlmutter, D-Golden, says Tipton has it wrong - that support for 
a way to open banking's doors is growing.

"There is no doubt we need to bridge the gap between state and 
federal law in order to reflect the reality of the situation in more 
than half the states across the country," Perlmutter said in an 
e-mail. "I remain confident we will be able to align the federal and 
state laws on the banking front."

With 23 states and the District of Columbia having passed some form 
of legalized marijuana - Colorado is one of three to have legalized 
its sale for recreational use - Perlmutter said the proof of support 
is already evident.

In July, Perlmutter worked for an amendment to block federal funds 
not associated with regulatory agencies from being used to penalize a 
bank solely for having provided services to a legal marijuana-related business.

Yet, his farthest-reaching effort - House Resolution 2652, introduced 
in July 2013 to give financial institutions the legal clearance and 
protections to bank the marijuana industry - couldn't get a committee hearing.

"We believe if ... it were taken up on the House floor today, it 
would pass," Perlmutter spokeswoman Ashley Hause said.

Things might be shifting, though. Sens. Kirsten Gillibrand, D-N.Y., 
Cory Booker, D-N.J., and Rand Paul, R-Ky., recently introduced a bill 
that would end the federal prohibition of medical marijuana. It also 
would make it easier for banks to work with the medical pot industry.

And Perlmutter said he expects to reintroduce the guts of the House 
resolution by the end of April.

However, the Committee on Financial Services is chaired by Rep. Jeb 
Hensarling, a conservative Texas Republican who has held the spot 
since January 2013.
- ---
MAP posted-by: Jay Bergstrom