Pubdate: Sat, 15 Feb 2014 Source: Sun-Sentinel (Fort Lauderdale, FL) Copyright: 2014 Sun-Sentinel Company Contact: http://drugsense.org/url/mVLAxQfA Website: http://www.sun-sentinel.com/ Details: http://www.mapinc.org/media/159 Author: Timothy M. Phelps and Jim Puzzanghera, Tribune Newspapers OBAMA WALKS TIGHTROPE ON MARIJUANA LAWS No Guarantees, but Administration Lets Sellers Use Banks WASHINGTON - The Obama administration, taking the first regulatory step to accommodate the country's growing state-approved marijuana businesses, issued guidelines designed to bring dispensaries into the banking system. But Friday's step was a cautious one, reflecting conflicting pressures on the administration. On one side, many states allow the sale of marijuana for medical or recreational use. Attorney General Eric Holder said last month that law enforcement agencies were concerned about marijuana sellers who are forced to deal in cash because they can't get credit card accounts issued by banks. At the same time, federal law classifies marijuana as illegal, and many in law enforcement have privately criticized the administration's actions to rein in prosecutions. The move drew praise from marijuana advocates but seemed likely to fall short of the reassurance banks have sought that they will be free from the risk of prosecution if they deal with marijuana-related transactions. The guidelines issued by the Justice and Treasury departments say that if banks follow new procedures and avoid marijuana businesses that raise red flags, such as selling to minors, prosecution "may not be appropriate." Bankers and their advisers wondered how they could be expected to enter the legal limbo created by the new policy. "We believe the vast majority of banks - especially publicly traded banks - will avoid marijuana retailers despite the guidance," said Jaret Seiberg of financial services firm Guggenheim Partners. "The risk of a violation, in our view, far outweighs any monetary benefit." Two states, Colorado and Washington, voted more than a year ago to allow the sale of marijuana for recreational, as well as medical, use, while 18 states - including Illinois, Connecticut and California - - and the District of Columbia allow it for some medical purposes. The Justice Department indicated in August that it would not attempt to block the implementation of those laws as long as marijuana businesses did not sell across state lines or cross other red lines. William Rubenstein, commissioner of Connecticut's Department of Consumer Protection, said he was pleased that the federal government is "not looking to place obstacles in well-run state programs." "We don't run afoul of any of the concerns that the Department of Justice has laid out," he said. Obama and Holder have indicated they have no desire to be tough on pot, with Obama saying in a New Yorker article that marijuana use is not more dangerous than alcohol. But the step announced Friday reflects a reluctance to go too far because of solid opposition to marijuana legalization within law enforcement. In January, after Obama's comments were published, Drug Enforcement Administration chief Michele Leonhart, in a private meeting with sheriffs, was critical of the president's views. Advocacy groups said the Obama administration had gone as far as could be expected. "It's another indication that the Obama administration seems to be acting in good faith when it comes to trying to give Colorado and Washington the ability to implement their laws in the best possible way," said Ethan Nadelmann of the Drug Policy Alliance. Tribune Newspapers' William Weir contributed. - --- MAP posted-by: Jay Bergstrom