California decides against state-chartered banking for marijuana Market

California decides against state-chartered banking for marijuana industry

California lawmakers deferred a plan that would have allowed private banks to handle the money being generated from the legal cannabis industry.

The proposal was put on ice following a legislative analysis determined it would face significant obstacles, such as a lack of security for state banks from national law enforcement, the Los Angeles Times reported.

The study cautioned that a negative effect of SB 930 may be a pooling of cannabis business assets to the willing banks, which could create an easy goal for law enforcement.

The proposed bill would have allowed the state to license privately financed banks to distribute checks to cannabis companies to pay rent and state and local taxes, and handle other routine business expenses.

Several other states in the cannabis industry also are trying to work out banking solutions, but a successful model has yet to be developed that each and every state with legal cannabis may use.

Published at Fri, 17 Aug 2018 22:06:19 +0000

Posted in: News

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