HB 14-1398 Summary

• Creates Article 33 of Title 11, Colorado Revised Statutes, establishing "Marijuana Financial Services Cooperatives" (cannabis credit co-ops) to provide financial services to licensed marijuana businesses that cannot access traditional banking due to federal law conflicts.

• Authorizes formation of up to 10 co-ops with at least 8 Colorado residents as incorporators; requires approval from the State Commissioner of Financial Services and the Federal Reserve System Board of Governors before operations commence.

• Co-ops may accept member deposits and savings, make loans to members, and invest in specified securities; members must be licensed marijuana businesses, industrial hemp businesses, or entities providing goods/services to licensed marijuana businesses.

• Requires co-ops to comply with federal Bank Secrecy Act requirements, maintain due diligence programs to prevent illegal activities (marijuana to minors, criminal enterprises, interstate diversion), and file suspicious activity reports.

• Sunsets the regulation of marijuana financial services cooperatives on September 1, 2020, with all co-ops required to complete dissolution by September 1, 2021; appropriates $50,000 for implementation and stakeholder workgroup expenses.