Banking while working in cannabis has been forbidden up until now.
The world’s first cannabis bank moves forward in California.
Per 420intel
California cannabis consumers and industry operators could enjoy a safer, more regulated legalized industry in the future, thanks to the passage of a bill to create the world’s first marijuana-focused bank.
Senate Bill 930 to set up a state charter bank for the cannabis industry survived a crucial floor vote in the California Senate Thursday. Friday is the deadline for all California bills this year to clear their house of origin.
California’s cannabis industry is expected to generate an estimated $10 billion in retail sales per year at full capacity, but the industry struggles to maintain bank accounts due to federal marijuana prohibition. Federal regulators have told banks to proceed with caution when banking state-legal cannabis funds. The vast majority of the banking system refuses to serve the legal industries in nine states, leading to all-cash transactions and increased risk of robbery, among other problems like paying employees and taxes.
The status quo for our growing legal cannabis industry is unsustainable,” said State Senator Bob Hertzberg (D—Van Nuys), the bill’s sponsor. “It’s not only impractical from an accounting perspective, but it also presents a tremendous public safety problem. This bill takes a limited approach to provide all parties with a safe and reliable way to move forward on this urgent issue.”
The proposed state charter bank would be very limited compared to a major national bank like Chase or Bank of America. It would allow licensed industry operators to make deposits in order to pay state and local taxes and fees, as well as pay wholesale vendors, and landlords.
Read more about the proposed bank here