The bill, championed by State Treasurer Fiona Ma, may only offer “a partial and temporary cash management solution until a more viable federal solution emerges.”
On Friday, the California State Assembly’s Appropriations Committee approved a bill that seeks to establish limited charter banks and credit unions for cannabis-related businesses. The measure will now move ahead for a vote before the full Assembly and, if it passes, will be kicked back to the Senate, where it originated. From there, the measure would finally head over to Governor Gavin Newsom’s desk. And because the bill is labeled “urgent,” it will take effect immediately if signed into law.
As Cannabis Wire previously reported, Senate Bill 51, which was penned by Senator Bob Hertzberg (D- Van Nuys) in collaboration with State Treasurer Fiona Ma, would authorize California’s Department of Business Oversight to license “cannabis depository institutions.” These entities would then be authorized to accept deposits, as well as to issue and redeem special purpose checks, which account holders could use to pay fees and taxes to state and local government agencies, as well as to pay their rent and vendors located in the state for cannabis-related expenses.
If implemented, account holders would be barred from using these checks in any other capacity. They would also be unable to transfer their balances to other banks outside the system.
Published: September 03, 2019
Founder & Interim Editor of L.A. Cannabis News