Colorado Pot Co-Ops Credit Bill Clears House Committee

Friday, 02 May 2014 07:18 AM

By Nick Sanchez

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Colorado legislators are mulling so-called pot co-ops to solve the local marijuana industry's banking problem, as the legal retailers have been operating in cash after being refused financial services from federally insured banks.

According to The Denver Post, Rep. Jonathan Singer, D-Boulder, submitted House Bill 1398, the "Marijuana Financial Services Cooperatives Act," which would create local financial-services co-ops modeled after credit unions.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

"These businesses . . . currently operate almost entirely on a cash-only basis, which raises their costs, increases the risk of crime and impedes the state’s ability to account for these businesses’ revenues," the bill states.

Credit unions are co-ops as well, however they are limited to individual memberships. The "cannabis credit co-ops" would extend membership to all legally-licensed pot companies across the state, creating a sort of uninsured credit union.

"This sets up a structure of a new type of financial structure to the gap we're seeing between banking and the marijuana industry. It's the only solution we see," Singer said during testimony. "This is a message to the federal government to say we are ready to go. Start with a template, then ask for federal approval, sending a very clear message."

If the bill is passed into law, the cannabis co-ops would in turn need approval from the Federal Reserve to access the nation's payments system and do away with all the cash. Legislators thought the co-ops would force the federal government to finally express some opinion one way or another on the current conflict of state law (where pot is legal) and federal law (where it remains illegal).

The bill passed the House committee on Business, Labor, Economic & Workforce Development Thursday afternoon, but was later stalled in the House Finance Committee, where it was met with skepticism from both parties.

"Anything we do at the state level is not going to get around the issue of money laundering without the cooperation of the federal government and the Federal Reserve," said Rep. Chris Holbert, R-Parker.

The bill has likely been shelved indefinitely, but state legislators are likely to propose other solutions in the coming months.

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Sarah Silverman to Star in 30-Minute Pilot Ordered by HBO

Friday, 19 Dec 2014 05:59 AM

Sarah Silverman will star in a half-hour pilot ordered by HBO that returns the comedian to the network for the first tim . . .

Incubus: Island Records Signs Band, Will Release Two EPs in 2015

Thursday, 18 Dec 2014 20:08 PM

The alternative rock band Incubus has signed with Island Records, and will put out two EPs next year, Billboard reported . . .

Squarespace Workers Re-Create Famous Paintings Using Office Objects

Thursday, 18 Dec 2014 19:41 PM

Two Squarespace employees are re-creating famous works of art on their breaks with things found lying around the office, . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved