Ed Perlmutter, former U.S. Rep. (D-CO), didn’t take long after retiring from Congress before reviving his campaign for a bipartisan cannabis banking bill that he had championed for over a decade. This time in the private sector as a policy adviser now lobbying on behalf of a nationwide cannabis group.
Perlmutter, who retired from Congress a little over a month ago, is back at work. He has taken on the National Cannabis Roundtable as a client, with the aim of helping advance the Secure and Fair Enforcement Regulation Banking Act (SAFER), while also advocating federal marijuana scheduling reform.
Perlmutter is a partner in the government relations firm Holland & Knight. He told Marijuana Moment that it was “disappointing and deflating” not to see the cannabis banking legislation become law, despite the bill having passed through the House seven times.
He said: “I believe there are many people who want to see it through.” “The Congress needs to work better,” he said. “I hold out hope that it will happen.”
The SAFER Banking Act, a revised version of the bill Perlmutter introduced in 2013, did pass through the Senate Banking Committee in September. There are many reasons for the delay in floor action, but supporters of the bill have recently emphasized progress made in negotiations. The hold-up has been primarily centered around broader banking regulations in Section 10 which do not directly affect the marijuana industry.
There are still some uncertainties in a divided Congress. Questions remain about the timing of legislation, since lawmakers are still struggling to reach a consensus, such as on foreign funding and appropriations. Questions also remain about the approach that the GOP-controlled House would take if the bill were to pass the Senate.
Perlmutter, however, said that he does see a way forward. While advocates have expressed concerns over the willingness of House speaker Mike Johnson (R – LA) to allow legislation to progress due to his consistent antimarijuana legislative history the former congressman stated that Johnson was a friend of his and he believed would not actively block the reform.
Perlmutter, in the meantime, is optimistic about the possibility of a federal marijuana schedule change. This would be a result of President Joe Biden’s directive 2022 that led to the U.S. Department of Health and Human Services’ (HHS) recommendation to move cannabis from Schedule I into Schedule III of the Controlled Substances Act. He believes that “anytime from now until mid-summer” the Drug Enforcement Administration will decide on this recommendation.
Perlmutter talked with Marijuana Moment to discuss his cannabis banking lobbying, scheduling reform, and more. This interview has been edited to make it more concise and clear.
Marijuana moment: What can you tell us about your work in the private sectors to promote the SAFER Banking Act, which you vigorously promoted in Congress?
Ed Perlmutter I want to help NCR, but also everyone else in general, pass SAFE. I believe the pieces are in place to make it happen. Then, to help with rescheduling cannabis so that it is legal everywhere, and also under federal law.
We have talked about this a lot. I want to get this done quickly so that cash does not pile up in cannabis businesses. Research can be done and taxes deducted.
MM: How did it feel to leave Capitol Hill before the law was passed?
EP :I enjoyed being in Congress but you are right. I was disappointed they didn’t. Not just me but many of us have worked very hard on this for years. We came close – half a dozen time – to passing it and making law. It was deflating and disappointing.
On the other hand, as a citizen or as a member of NCR’s advisory board, I could work on this now and get it signed by Biden.
MM: How do you feel about the current status of the Banking Bill? Do you believe that the main issue is Section 10 and other non-cannabis provisions?
EPSection 10 is included. I think that the language is being resolved, and some of the clauses are what [Sen. Jack Reed D-RI] and other senators wanted. There’s still a lot to do, and this was what Rep. Blaetkemeyer and I worked on years ago, when we were working out the Operation Chokepoint and other stuff.
The way Congress functions right now is more than just a coincidence. It’s hard to pass anything, no matter how big or controversial. The hope is that they will pass a continuing resolutio or an appropriations bill this week or the next. It’s not the Congress itself that is holding up things right now, but rather the general workings.
It’s great to see that the Senate Banking Committee has moved on this and marked it up so it can be brought to the Senate floor. This could be done in the normal course of business, or by following regular order. Then you can add it to a larger bill. Even as we speak, there are many discussions and negotiations about the bill.
You are optimistic that you will be able to accomplish the task this year, right?
EP: I am hopeful. I have been pretty hopeful all the time. Some people will call me naive. But the pieces are in place to make it happen. The bottom line is that. I believe that there are many people who want to see it through.
It’s just that Congress needs to begin working better. And I have hope that it will happen.
Do you worry that Speaker Johnson could block the reform, given his history of opposing even incremental cannabis laws?
EP : Mike is my friend. He has an opinion on the matter. If this is part of an overall package, I believe he will know how many of his members support it. I don’t think he will vote for it, but he will allow it to go forward.
What are the chances of a rescheduling happening? Do you think that is in the cards for now? Could this potentially boost momentum for the SAFER Banking Act?
EP Rescheduling will certainly help both the tax and research sides, which are very important components. It will not hinder the banking sector. The federal government will now recognize the legitimacy of the cannabis product, something that has taken a long time to do.
MM: Last week, Rep. Barbara Lee, co-chair of the Congressional Cannabis Caucus (D-CA), told us that she opposed rescheduling. She argued it could set back the country “another fifty years” in the path towards federal legalization. What do you think about that?
EP It’s more a philosophy. Barbara Lee is a little older than me, but I’ve spent a lot of time in both the state legislature and Congress. You can get it all every decade or so if you try hard enough. Most of the time it is a steady, slow process that moves things forward.
You know, she has been a great friend and cosponsor for SAFE, and worked hard in this area, but I’m not sure I agree with her. I believe we need to make slow and steady progress.
We’d love to have a big one. Just deschedule the event completely, and it would solve a lot. We couldn’t even get Obama or Trump think about rescheduling. The Cole memo, and the FinCEN guidelines were fine with them. But that was all they would do. They weren’t going any further.
To his credit, Biden has gone further than that. It’s hoped that it will be rescheduled. I want to see some progress.
Have you made any predictions about when cannabis will be de-schedule or legalized in the United States?
EPI’m not going to make any predictions about that. Once you get the ball rolling it will move faster. We need to get things moving.
When can I reschedule?
EP :I’d guess that it could be anytime between now, and the middle of summer.
We are in an election year. Do you believe Biden should do even more to improve marijuana policy, such as expanding pardons for people who have non-violent drug sales convictions?
EP :I am very happy with the steps that he has taken. More than anyone else at that level. I don’t even know who they are. But, everyone has to be a critical.
I appreciate that he has taken bold, in my view, steps to pardon people [and] a number things no one else had done, or is doing, maybe at the state-level, but not the federal-level.
Rep. Earl Blumenauer (D – OR) is retiring at the end of this year. In your opinion, who is left in D.C. to carry on the legacy?
EP :[Rep. David Joyce, R-OH]] certainly. And [Rep. Troy Carter (D-LA)]. These two men would be at the top of my list. Rep. Nydia Velazquez (D-NY), from the business perspective. Warren Davidson (R – OH), a bit on the libertarian end. I believe there are still several who will take the mantle.
MM: I understand that your main focus is cannabis. You’re in Colorado where another drug policy issue is taking place: the state is implementing voter-approved psychedelics law. What is your opinion on the process and the merits?
EP The process is in motion at the Department of Regulatory Agencies. They have been working hard on the statute and developing regulations and rules. There’s a fairly large commission working with the Department of Regulatory Agencies in order to implement our rules.
I’ve not been involved in it much. I was asked early on to get involved, but I declined because I did not know what I would be doing. So, I’m still not close to it. I’m afraid I don’t have a good response.
It would be impertinent of me not to ask if you have any future plans to run for elected office? Perhaps governor?
EP: Never say never. I enjoyed every minute of my time as an elected official. I loved running for office, and I loved the campaigning. There’s a time and place for everything. I believe that time is over.
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