California’s legislature is considering licensing its own cannabis banks to give the cannabis industry access to financial services not available to them federally.
Despite the fact that cannabis businesses operate within their state’s legally regulated industries, they still represent a risk to federally licensed banks which could be charged for aiding in the trafficking of a federally banned substance.
Consequently, many state-legal cannabis businesses are unable to access bank accounts, forcing them to largely operate in cash and forgo basic financial services like loans.
This new California bill, known as SB930, would allow state licensed and privately insured cannabis banks to offer financial services in a legal bubble within the state’s borders. These new cannabis banks would be overseen by the state’s Department of Business Oversight and would issue specialized checks that could be used for paying taxes and rent, even among cannabis distributors.
Currently, cannabusiness owners are forced to transfer their earnings in armored vehicles and face a wild west scenario in which several dispensaries have been robbed. Additionally, it’s not just the businesses that have to be worried—it’s also the tax collectors and investors. This year alone an estimated $600 million in taxes will have to be paid in cash by California cannabis businesses.
SB930 has already passed in the Senate and now awaits a vote in the Assembly.
See the original article at Herb