Missouri may not let legal weed companies pay taxes in cash. That could be a problem.

Late Monday, the Missouri Department of Health and Senior Services issued a proposed rule governing the way licensed medical marijuana facilities should pay taxes and other money owed to state government.

The rule says that state-licensed companies that handle cannabis — for example, dispensaries or growing outfits — will be required to pay their Missouri taxes and fees "via any payment method normally acceptable to those agencies other than cash."

That could be a problem. It's not the way state-legalized cannabis companies have done business so far. Since the inception of medical marijuana in California in the 1990s, they've typically been all-cash operations.

Blame Uncle Sam for this state of affairs.

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All banks face regulation from federal entities like the FDIC, the Office of the Comptroller of the Currency or the Federal Reserve, said Max Cook, president and CEO of the Missouri Bankers Association. By law, the feds can't work with cannabis companies because federal law classes marijuana alongside illegal substances like heroin.

"The federal regulators can impose cease and desist orders, civil money penalties, etc.," Cook said in an email to the News-Leader earlier this year. "These penalties can be in the millions. Bankers most often aren’t willing to take those risks."

'I was afraid of how this is all going to play out'

Josh Loftis owns Springfield-based Home Grow Solutions Missouri LLC. He teaches qualifying patients and caregivers to legally home-grow their own cannabis. Because he does not directly handle any plants, he does not need a marijuana business license.

"This is why I didn't go ahead and apply for a license," Loftis told the News-Leader Tuesday morning. "I was afraid of how this is all going to play out."

In Missouri, Triad Bank is perhaps the only bank that's gone public to say that it will work with marijuana businesses. In May, CEO Jim Regna told international news site Marijuana Business Daily that Triad plans to service cannabis entrepreneurs with experience in other industries. Regna said at the time that the suburban St. Louis bank would select its business partners carefully.

Medical pot: Everything you need to know about medical marijuana in Missouri

Reached by the News-Leader on Tuesday, Regna said, "Because of some correspondence we’ve received from various federal regulators, there's nothing I can really say to you any more on the record."

But political winds may be shifting. With bipartisan support, the Democratic-controlled U.S. House recently passed the Secure and Fair Enforcement (SAFE) Banking Act. If the Republican-controlled Senate sends the bill to be signed by President Donald Trump, it would prohibit the federal government from punishing banks for providing services to state-regulated weed companies.

Paul Callicoat, a physician who hopes to be awarded licenses for cultivation and manufacturing in Sarcoxie, along with multiple dispensaries elsewhere, said he wants the SAFE Banking Act to become reality.

"If it hadn't been for the recent turn of extremely partisan politics, I was anticipating for it to pass in December," he said, "but with all the impeachment stuff going on, I'm not that optimistic."

In the meantime, Callicoat isn't worried by the proposed rule. It won't be an issue until licensed marijuana companies begin actually growing federally-illegal marijuana, he said.

But Loftis, the home-growing consultant, said a recent California cannabis tour by Senate Majority Leader Mitch McConnell, a Kentucky Republican, is an encouraging sign that the Senate might act in cannabis companies' favor.

Regna, with Triad Bank, agreed and said he was "encouraged" by recent developments.

"Not having banking creates challenges in terms of security and other risks because of the large amounts of cash changing hands," Regna said.

Medical marijuana in Missouri: What to know about drafted rules DHSS released the first draft of rules on how to obtain a medical marijuana ID card to possess and/or grow cannabis.

'Here to stay,' with or without banks

Security is at the heart of many worries.

For example, the Los Angeles Times reported earlier this year that California is "awash" in cannabis cash in part because of federal banking prohibition.

Fueled by cash, the state's massive marijuana black market (estimated at four times the size of its legal market) has prompted several cases of public corruption. One rural sheriff was offered $1 million to look the other way regarding some illegal grow operations near the Oregon border, the Times reported. (The sheriff turned down the bribe.)

Jack Cardetti, spokesman for the Missouri Medical Cannabis Trade Association, blamed relatively high California weed taxes for many of that state's woes. Missouri will tax cannabis sales at 4 percent.

But that doesn't mean banking prohibition isn't a problem, he said.

"Legal marijuana is here to stay, and now it's time to pass banking reform so it's done in a safer manner," Cardetti added, echoing most voices in the pro-cannabis camp.

Related: 'Freaked out' patient at center of Rolla medical marijuana flap describes police run-ins

He called on Missouri's federal lawmakers to support the SAFE Banking Act and for the Missouri health department to adopt "some allowance for license-holders to be able to pay in cash until they can figure out a banking solution."

He predicted many license-holders will find banks, but not all.

Callicoat, the license applicant in Sarcoxie, said the proposed Missouri rule "makes perfect sense."

"The state's trying to do what the state knows how to do," Callicoat said. "The state is used to using non-cash."

Lisa Cox, spokeswoman for the state health department, said in a Tuesday statement, "For many reasons, including how quickly this area is evolving, we don’t know how much of an issue banking will be in Missouri. Other states have had varying experiences with this."

She added, "What we do know is that large amounts of cash-handling will create challenges for state agencies and may create safety issues for medical marijuana facility employees. As we have done with all of our rules, we have put this out for public comment in order to hear from the public whether they have concerns with this proposal and, if so, what they are. The emergency rule has not been filed, and we will consider all comments we receive before determining whether to file it."

DHSS will take public comments on the rule until Nov. 12, according to its Monday news release.

Under Missouri's constitutional amendment for marijuana, the department has until Dec. 31 to award 348 cannabis business licenses.