On Tuesday, February 2, the U.S. House of Representatives Committee on Rules held a hearing on the Financial Institution Customer Protection Act of 2015 (H.R. 766). This bill prohibits federal agencies – including banking agencies – from terminating certain bank accounts simply due to the nature of their business. The bill was introduced by Rep. Blaine Luetkemeyer (R-MO), as a response to the Department of Justice’s Operation Choke Point, which puts banks under scrutiny for their work with businesses the DOJ considers at risk for fraud or illegal activities, even when the businesses themselves are operating legally. Rep. Luetkemeyer’s bill would limit law enforcement’s ability to restrict access to the banking system.

To watch the hearing, view here:
https://rules.house.gov/video/rules-committee-hearing-hr-766-and-hr-1675

Longtime cannabis champion Rep. Ed Perlmutter (D-CO) used this hearing as an opportunity to offer an amendment to the legislation. His amendment would have allowed banks and credit unions to offer financial services and maintain relationships with state-legal, licensed cannabis businesses, without fear of federal prosecution. In addition to Congressman Perlmutter’s testimony, Representatives Jared Polis (D-CO) and Alcee Hastings (D-FL) spoke in favor of the amendment.

When NCIA first learned of the hearing last week, our Government Relations office coordinated with Rep. Perlmutter’s staff and advocated for the amendment with Rules Committee Members and staff. Although our cannabis champions on Capitol Hill spoke eloquently on behalf of the amendment, the committee ultimately voted it down. The 3-9 vote broke along party lines, with all Democrats voting in favor and all Republicans voting in opposition.

NCIA salutes all our Capitol Hill advocates who continually stand up for the cannabis industry, and especially Rep. Perlmutter for taking the lead on banking reform. Although this effort fell short in the end, it served as a powerful message to Members of Congress that NCIA and its allies will look for every opportunity to fight for the fairness and respect our industry deserves.

This year will be truly historic for cannabis reform and it’s time for Congress to clarify the conflict between the federal government and the states on cannabis and address this vital issue. NCIA continues to advocate on your behalf every day so that all legal, state-sanctioned cannabis businesses may eventually access financial services and stop being discriminated against.