California Senate Advances Bill Establishing Statewide Cannabis Banking Services

www.ganjapreneur.com
Date:
Friday, Jun 1, 2018

The California Senate has advanced Senate Bill 930 — a.k.a. the Cannabis Limited Charter Banking and Credit Union Law — which seeks to establish new rules allowing California banks to serve businesses who are denied banking services due to their involvement in the still federally prohibited cannabis industry.

According to an Associated Press report, the bill passed through California’s Senate with a bipartisan, 29-6 majority.

If signed into law, SB 930 would permit banking institutions regulated by California’s Department of Business Oversight — including both charter banks and credit unions — to provide limited banking services to the currently cash-only industry. Cannabis companies could use those services to pay rent, to pay state and local taxes (but not federal taxes), or to pay other California companies for goods and services related to the cannabis space.

The limited banking services would not allow for any out-of-state payments.

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