If you’d like to discuss medical marijuana, contact Ryan Hurley, director of the Rose Law Group Medical Marijuana Dept., rhurley@roselawgroup.com
Banks won’t do business with them, so Arizona’s medical marijuana dispensaries are being forced to operate on a cash-only basis.
Federally insured banks and credit unions steer clear of checking accounts and credit-card machines for state-licensed dispensaries because marijuana remains illegal under federal law, and the feds have warned banks to avoid such businesses.
Dispensaries have to set up safe houses and potentially use armored transport for the cash they collect. It also makes it hard to pay bills and taxes and meet payroll.
It also poses a safety risk for customers who may become robbery targets. Arizona’s health director said the lack of bank accounts would make annual audits of dispensaries more challenging and potential fraud easier to pull off.
Dispensaries must be nonprofits, and independent accountants will audit them each year.
Ryan Hurley, an attorney with Rose Law Group in Scottsdale, said banks could provide merchant services. The hang-up is really over lending, he said.
“It doesn’t come down to the fact that they are FDIC insured,” he said. “They have potentially legitimate concerns that the federal government might come in and seize that property, in which case their loan is worthless.”
“I have personally been in all of the major banks, and all of the smaller banks, and a fair amount of the credit unions, and they’ve been told not to do business with us,” said Bill Myer, of Arizona Organix in Glendale, which opened earlier this month and is represented by Rose Law Group.
Information from: The Arizona Republic
