LOS ANGELES — The fate of a bill that would permit state-chartered banks and credit unions to offer solutions to California’s marijuana corporations could be determined Thursday when a crucial hearing is held on the legislation.
The proposed legislation, state Senate Bill 51, is developed to aid pot retailers and other marijuana firms that have been shut out from the standard banking program. The measure would permit private banks or credit unions to apply for a restricted-goal state charter so they can offer depository solutions to licensed cannabis corporations.
California’s legal marijuana business is struggling to compete with the black marketplace and is facing challenges that involve banking access and higher taxes. Final week, California Gov. Gavin Newsom’s new state price range strategy slashed cannabis tax income projections by $223 million.
Marijuana corporations, like pot shops, are forced to deal predominantly in money due to continued federal banking restrictions that make it practically not possible for them to have bank accounts with federally chartered monetary institutions. There’s also an work underway at the federal level to pass legislation that would permit banks to serve cannabis-connected corporations without the need of the danger of getting prosecuted.
Published: May possibly 14, 2019