The legal cannabis industry in California just jumped over a massive hurdle with banks – Cannabis is legal at a state level, but illegal on a federal level. All banks are regulated federally, how and where does the money go? This new bill takes a step towards banking relief for cannabis businesses, and just like the business owners, you can take that to the bank.
Senate Bill 51, after it was approved through a 35 to 1 vote, now needs two additional approvals by the state Assembly and Governor of California, Gavin Newsom. The bill, after all necessary approvals, will allow private banks and credit unions to apply for a “limited-purpose state charter” in order to legally provide services to licensed cannabis businesses. Through the legislation, cannabis business would get issued special checks in way to effectively pay state taxes, local taxes, fees, and rent.
Robert Hertzberg, California Senate Majority Leader, stated: “As policymakers, we have a duty to further the will of the voters while protecting the public safety of our constituents. This measure is by no means the ultimate solution, but it’s just one small step in the right direction to get some of this money off the streets and into bank accounts.”
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