Pubdate: Fri, 17 Jun 2016
Source: Denver Post (CO)
Copyright: 2016 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: David Migoya

POT BANKING PASSES HURDLE - AGAIN

The Bill Would Forbid the Use of Federal Funds to Punish Banks.

Banks wishing to do business with the marijuana industry without fear 
of government reprisal inched closer to reality - again - when a 
Senate committee Thursday approved a measure - again - to do just that.

A bill nearly identical to one passed by the Senate last year, this 
time sponsored by Oregon Sen. Jeff Merkley and Washington Sen. Patty 
Murray, was approved by the Senate Appropriations Committee and would 
forbid the use of federal funds to penalize a financial institution 
that works with marijuana enterprises legally operating under state laws.

Last year's effort failed to reach any debate in the House, a similar 
fate suffered in 2013 of a bill passed by the House and later stifled 
in the Senate.

But the third time could be a charm.

This time committee members passed the measure as an amendment to the 
Financial Services and General Government Appropriations Bill, which 
gives annual funding for some government operations. This year's 
bill, which funds the Treasury Department, the judiciary and agencies 
such as the Securities and Exchange Commission, is about $22 billion.

"This amendment is really about providing clarity, stability and 
security for our banks, credit unions and small-business owners who 
want to be able to operate in full daylight," Murray said in a statement.

The amendment passed 16-14 and was met with cautious optimism by an 
industry that's said banking is a critical need for businesses forced 
to operate mostly in cash.

"The legal cannabis industry is a billion-dollar business in Colorado 
and contributes significantly to the tax base, yet we are denied the 
access to banking that every other industry enjoys," said Brooke 
Gehring, a business owner and board chairwoman of the Marijuana 
Industry Group. "This impacts more than just business owners. Tens of 
thousands of people who work in the legal cannabis industry as well 
as service providers have problems banking."

Stand-alone legislation has been introduced in each house of Congress 
- - SB 1726 by Merkley and HR 2076 by Rep. Ed Perlmutter of Arvada.

"I'm pleased to see the Senate taking action to help provide access 
to the banking system for legal and licensed marijuana businesses," 
Perlmutter said in a statement. "I plan to offer the same amendment 
in the House so financial institutions are not penalized for helping 
to get cash off our streets which is a serious public safety concern 
for our communities."

The U.S. Department of Justice has said it wouldn't spend time 
prosecuting financial service companies that work with legal 
marijuana businesses as long as they follow strict guidelines of 
compliance - but stopped short of offering blanket protection against 
enforcement. Many bankers worry that they could risk losing 
accreditation and face money-laundering charges if a marijuana 
business client turns out to be a front for the illegal drug trade no 
matter how diligent they are at vetting them.

Other efforts have included a push to legalize a credit union in 
Colorado specifically for the marijuana industry. The Fourth Corner 
Credit Union, although it obtained state approval to operate, was 
stymied in its work at landing a critical master account with the 
Board of Governors of the Federal Reserve System when that group's 
rejection was upheld by a federal judge.
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MAP posted-by: Jay Bergstrom