Pot states take fresh look at out-of-state investment

DENVER (AP) — States that have legalized pot are taking a fresh look at making it easier for out-of-state investors to get in the weed business, saying the industry's ongoing difficulty in banking means they need new options to finance expansion.

California voters could approve recreational pot this fall, giving the nascent pot industries in the other states reason to want to attract investment now, before a giant enters the picture.

"There's only so many people willing to invest in this risky and new industry, so allowing people from out of state to become investors in this business ... seems like a good idea," said Colorado Sen. Chris Holbert, R-Parker, and sponsor of a bill to allow out-of-state ownership of marijuana businesses.

[...] the prospect of big out-of-state money flowing into legal pot states still gives regulators pause.

Pot regulators also cite the U.S. Department of Justice, which has repeatedly warned pot states they must keep drug money out of interstate commerce or face a crackdown.

[...] Washington's Liquor and Cannabis Board announced this month that it intends to drop the ban on out-of-state investment to make it easier for marijuana businesses to raise money.

In Colorado, for example, some investors pour money into ancillary pot businesses, such as warehouses or lighting companies, then exact heavy kickbacks from the in-state pot growers.