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Pot will no longer be cash-only crop under Colorado banking scheme

Colorado lawmakers have approved the world's first financial system for the marijuana industry, a network of uninsured cooperatives designed to give pot businesses a way to access basic banking services.

The plan, approved Wednesday, seeks to move the marijuana industry away from its cash-only roots. Banks routinely reject pot businesses for even basic services such as checking accounts because they fear running afoul of federal law, which considers marijuana and its proceeds illegal.

The result: Pot shop owners deal in large amounts of cash, which makes them targets for criminals. Or they try to find ways around the problem, like drenching their proceeds in air freshener to remove the stink of marijuana and try to fool traditional banks into accepting their money.

"This is our main problem: Financial services for marijuana businesses," said Sen. David Balmer, R-Centennial. "We are trying to improvise and come up with something in Colorado to give marijuana business some opportunity, so they do not have to store large amounts of cash."

The U.S. Treasury Department said in February that banks could serve the marijuana industry under certain conditions. With the industry emerging from the underground, states want to track marijuana sales and collect taxes. It's a lot easier to do that when the businesses have bank accounts. Story from AP here.


Read more here: http://www.miamiherald.com/2014/05/08/4104797/colorado-lawmakers-approve-plan.html#storylink=cpyColorado became the first state to allow recreational pot sales, which started Jan. 1. Washington state will follow suit, with retail sales expect to start in July.

Read more here: http://www.miamiherald.com/2014/05/08/4104797/colorado-lawmakers-approve-plan.html#storylink=cpy

Comments

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ed jenkins

The readers are horrified that this hometown paper which is read by families and children would print an article on such an inappropriate subject as dangerous illegal drug use. Children could read articles such as this and be encouraged to use these dangerous drugs. they insist on no more articles on such an inappropriate subject if this hometown paper would like to hold onto families as subscribers.

In addition this article violates the principal established by readers of wanting no more stories from distant places in their hometown paper.

Redundant

Thanks Miami Herald and Mary Ellen Klas for this information. It is a bright spot in my day to hear what a more enlightened state government is doing to decriminalize and make available this beneficial plant.

Jack Watson

The governor and the legislature need to call a special session to pass this law in Florida to help our soon to be booming marijuana industry grow and flourish.

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