Sacramento, CA — Legislation that would allow California to license special cannabis banking institutions has passed an early hurdle in the state Senate’s Governance and Finance Committee.
It was approved with bipartisan support, and could go up for a vote in the Assembly and Senate later this year. Although Proposition 64 legalized marijuana for recreational use, cannabis businesses are barred from depositing money into federally insured financial institutions, in essence, making it a cash industry.
The bill’s lead author, Democratic Senator Bob Hertzberg says, “What we’re trying to do is to create a controlled system that helps us get as much cash into vaults as possible; gets the government paid as much as possible; and takes out as much risk to public safety as possible.”
According to Hertzberg, SB 930 would allow the licensure and regulation of cannabis limited charter banks and credit unions that would provide limited banking services to cannabis related businesses, including:
-Pay state and local taxes and fees
-Pay vendors from California for goods and services provided to the cannabis business
-Purchase state and local bonds and other debt instruments