A plan to create a bank in California specifically for cannabis industry falls through at the last minute.
Per MJBizDaily
California lawmakers deferred a plan that would have allowed private banks to handle the money being generated by the legal cannabis industry.
The proposal was put on ice after a legislative analysis determined it would face significant obstacles, including a lack of protection for state banks from federal law enforcement, the Los Angeles Times reported.
The analysis cautioned that a side effect of SB 930 might be a pooling of cannabis business assets into the willing banks, which could create an easy target for federal law enforcement.
The proposed bill would have allowed the state to license privately financed banks to dole out checks to cannabis companies to pay rent and state and local taxes, as well as handle other routine business expenses.
A banking system is needed in the cannabis industry so something will have be done by someone soon.
Lack of banking leads to shotty bookkeeping.
CashColorCannabis Podcast had the chance to speak to DOPE-CFO co-founder Naomi Granger about issues with banking and accounting in the cannabis industry. Stream clips of our interview below.
