Share “Colorado law sets up marijuana banks; feds...”

Colorado law sets up marijuana banks; feds must OK

Published on NewsOK Modified: June 6, 2014 at 12:46 pm •  Published: June 6, 2014
Advertisement

DENVER (AP) — Seeking to move marijuana businesses away from cash-only operations, Gov. John Hickenlooper signed legislation Friday that tries to establish the world's first financial system for the newly legal industry in Colorado.

The legislation seeks to form a network of uninsured cooperatives designed to give pot businesses a way to access basic banking services like checking. But approval from the Federal Reserve remains a hurdle.

Out of fear of violating federal law, banks don't work with marijuana businesses. That has led to concerns that the burgeoning marijuana industry could be a target for robberies.

Mike Elliott, executive director of the Marijuana Industry Group, said a member of his organization was robbed a few days ago. The cash-only model has become stressful for businesses and their employees, he said.

"We don't a need a vault. What we need is checking," he said. "We're looking for a way to take cash out of the businesses."

Colorado became the first state to allow recreational pot sales on Jan. 1. Denver Police issued a crime alert Thursday warning of a plot to rob marijuana couriers, those who take dispensary proceeds to pay taxes or bills.

The legislation would allow pot businesses to pool money in cooperatives. However, that will only happen with the blessing of the Fed, which has to agree to give the businesses access to payment systems.

That has prompted some in Colorado to argue the legislation is merely symbolic.

Continue reading this story on the...