A bill that will allow cannabis business owners to start a limited charter bank moves to the California Assembly following its passage this week in the Senate.
Senate Bill 930 passed on Wednesday by a 29-6 vote. The bill was introduced in January by State Sen. Robert Hertzberg (D-Van Nuys).
If made into law, the bill would allow for the creation of limited charter banks and credit unions licensed by the Department of Business Oversight. The institutions would be serve two purposes – holding and accepting cash for its account holders; and issuing special purpose checks to the account holders.
Hertzberg called the bill a limited approach to provide all parties with a safe and reliable way to move forward on an urgent issue. Currently, cannabis dispensaries and other related businesses deal primarily in cash, including for the payment of taxes.
“The status quo for our growing legal cannabis industry is unsustainable,” Hertzberg said in a statement. “It’s not only impractical from an accounting perspective, but it also presents a tremendous public safety problem.”