Cannabis banking proposal passes second policy committee in California Senate

cannabis cash

Photo courtesy San Francisco Chronicle

 

The need to manage cannabis cash continues to drive political momentum forward to create new banks able to handle the onslaught of funds. California SB 930 would allow the creation of a special class of state-chartered banks and credit unions that would provide limited banking services to cannabis related businesses, allowing them to pay taxes, rent, and vendors from California for goods and services provided to the cannabis business.

“Do you know how long it takes to count a million dollars?” asked Senator Bob Hertzberg during the committee hearing.

The bill now heads to the CA Senate Appropriations Committee where it will receive a hearing next month.

From Senator Hertzberg’s press release:

“Department of Finance estimates that the state will collect $600 million in cannabis taxes in the upcoming year. Unlike most businesses, however, cannabis businesses arrive to government offices with duffel bags of cash to fulfill their tax obligations. Standard oversight and accountability measures, like audits, become very difficult when most transactions are completed in cash.

“The bill’s co-sponsor, Board of Equalization member and CPA Fiona Ma, explained that her office received $92.5 million in sales taxes from the cannabis industry last year alone.”

[Read full press release]

[Read related San Francisco Chronicle story]

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