LOS ANGELES — The fate of a bill that would let state-chartered banks and credit unions to offer solutions to California’s marijuana companies could be determined Thursday when a important hearing is held on the legislation.
The proposed legislation, state Senate Bill 51, is made to assist pot retailers and other marijuana firms that have been shut out from the classic banking program. The measure would let private banks or credit unions to apply for a restricted-goal state charter so they can offer depository solutions to licensed cannabis companies.
California’s legal marijuana sector is struggling to compete with the black marketplace and is facing challenges that consist of banking access and higher taxes. Final week, California Gov. Gavin Newsom’s new state spending budget strategy slashed cannabis tax income projections by $223 million.
Marijuana companies, such as pot shops, are forced to deal predominantly in money due to continued federal banking restrictions that make it almost 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 let banks to serve cannabis-connected companies without having the threat of becoming prosecuted.
Published: May perhaps 14, 2019