Marijuana Banking Advocate Perlmutter to Chair Key House Subcommittee
Perlmutter has long pushed for legislation to give FIs regulatory safe harbor if they provide services to marijuana-related businesses.
Rep. Ed Perlmutter (D-Colo.), the lead House sponsor of marijuana banking legislation, will chair the Financial Services Committee’s Consumer Protection and Financial Institutions Subcommittee, Chairwoman Maxine Waters (D-Calif.) announced Tuesday.
Perlmutter is an attorney who practiced bankruptcy law before being elected to the House in 2006. He is a member of the New Democrat Coalition, a group of House moderate Democrats. He was a member of the Congressional Federal Credit Union in 2018, according to the Center for Responsive Politics, which analyzed his 2018 financial disclosure report.
“In the 117th Congress, the Subcommittee will play an important role in supporting the recovery of hardworking families and small businesses, monitoring the safety and soundness of financial institutions, and creating jobs as we build back our economy in the wake of the pandemic,” Perlmutter said following the announcement.
Republicans have not announced their subcommittee leaders, although Rep. Patrick McHenry (R-N.C.), will continue to serve as the ranking Republican on the full committee.
During the past several years, Perlmutter has pushed legislation that would provide credit unions and banks with a regulatory safe harbor if they provide financial services to marijuana-related businesses.
The other primary House sponsor, Rep. Denny Heck (D-Wash.), did not run for reelection to the House in 2020; he decided to run for lieutenant governor and was elected in November.
The House passed marijuana banking legislation during the last Congress. However, then-Senate Banking Chairman Mike Crapo (R-Id.) opposed the measure and the legislation never was considered by the committee.
The bill might have a better chance this year, since Democrats have gained control of the House and Sen. Sherrod Brown (D-Ohio) will chair the Banking Committee.
During the last Congress, Perlmutter also was one of the lead sponsors of legislation that would simplify the process for expelling a credit union member. Credit union officials said the legislation was needed for public safety reasons.
In 2014, Perlmutter was the primary Democratic cosponsor of legislation that extended insurance coverage to Interest on Lawyer Trust Accounts (IOLTAs), and “other similar escrow accounts” held in trust at credit unions that are otherwise fully insured at FDIC insured banks.
President Obama signed the legislation in 2014.
The roster for the Financial Services Committee was missing one notable member — Rep. Katie Porter (D-Calif.), a former financial law professor. Porter has become well known for her aggressive questioning of witnesses testifying before the committee. The Financial Services Committee is an “exclusive” committee under House Democratic rules. A member of the panel cannot serve on another panel without a waiver from House Democratic leaders.
Porter had received such a waiver during the last Congress, when she served on the Financial Services and the House Oversight and Reform Committee. This year, Porter was named to the Natural Resources Committee and sought a waiver to continue to serve on Financial Services. That request was denied.
Waters also announced several other subcommittee chairmanships, including:
- Housing, Community Development, and Insurance — Rep. Emanuel Cleaver (D-Mo.).
- Diversity and Inclusion — Rep. Joyce Beatty (D-Ohio).
- Oversight and Investigations — Rep. Al Green (D-Texas).