Pubdate: Mon, 05 Oct 2015
Source: Daily Reporter, The (Columbus, OH)
Copyright: 2015 The Daily Reporter
Contact:  http://www.thedailyreporteronline.com/
Details: http://www.mapinc.org/media/4774
Author: Annie Yamson

OHIO BANKERS LEAGUE CITES BANKING LAW CONFLICTS IN OPPOSITION TO ISSUE 3

The Ohio Bankers League recently released a statement expressing the 
organization's opposition to Issue 3, the controversial 
constitutional amendment to legalize marijuana in Ohio that will be 
on the ballot in November.

The trade association's board of directors voted to oppose the issue, 
citing the conflict that it would create between state and federal law.

"Marijuana is illegal at the federal level and handling proceeds 
connected to marijuana-related businesses also remains illegal - 
regardless of state law," OBL president and CEO, Mike Adelman, said 
in the press release. "To bank marijuana-related businesses, 
financial institutions would be in violation of the Controlled 
Substances Act, the Bank Secrecy Act, the Patriot Act and the 
Racketeer Influenced and Corrupt Organizations Act."

The statement comes at a time that several organizations have also 
come out with statements voicing their opposition to the issue, 
including the state chamber of commerce and Ohio's Fraternal Order of 
Police, though for different reasons.

But the OBL's concerns are not the first of their kind in the nation. 
States that allow marijuana sales are running up against road blocks 
when it comes to banking for their marijuana-based businesses.

This summer, federal banking regulators said no to Denver-based 
Fourth Quarter Credit Union, which applied to the Federal Reserve for 
a "master account" which would allow it to interact with other 
financial institutions and open its doors to licensed marijuana businesses.

In the OBL's statement, Adelman said that, if passed, the conflict 
created by Issue 3 would put the state banking industry in an 
"untenable position" and would render the marijuana industry an 
all-cash business, "creating public safety issues and money 
laundering concerns."

Echoing that concern, Colorado and California state governments have 
said that the lack of access to banking for marijuana businesses is a 
public safety issue and a deterrent in the state's efforts to collect taxes.

A Los Angeles Times story from this summer told the tale of one 
dispensary that hauled a bag containing $200,000 in cash to the 
Sacramento district office in order to pay its taxes - a situation 
that a California state tax board member called "dangerous all around."

In the same release, the OBL expressed its support for Issue 2, which 
would amend the state constitution to prohibit the use of the ballot 
initiative process to "grant or create a monopoly, oligopoly or cartel."

Adelman cited the OBL's long-standing commitment to promoting free 
market enterprises and economic competition as the reason for the 
association's stance.
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MAP posted-by: Jay Bergstrom