California Senate votes to approve marijuana banks

May 21, 2019

The California state Senate voted overwhelmingly on Tuesday in favor of creating special banks and credit unions to work with marijuana businesses. [Cal Coast Times]

Currently, most banks shy away from marijuana businesses out of fear of running afoul of the federal government, which views the cannabis industry as illicit but has signaled limited tolerance for pot banking. This has left California tax collectors in peculiar situations, having resorted at times to arranging for marijuana businesses to deliver huge quantities of cash in order to pay their state taxes.

SB 51, which passed the Senate on a 35-1 vote Tuesday, would establish marijuana limited charter banks and marijuana limited charter credit unions. Under the proposal, the limited charter banks and credit unions could issue checks that could be used for the paying taxes, fees and rent, as well as paying vendors located in California and for purchasing state and local bonds.

Following Tuesday’s vote, the bill heads to the state Assembly.


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nazbol gang

Great… because the financial industry isn’t known for corruption or anything like that……


kayaknut

Would politicians start using the banks to funnel contributions and payments all without oversight of the federal government regulators?


kettle

No, that is not how it works. A state bank is not some magic new thing, same rules apply as now.


DPINC

So will real estate flippers use the bank to avoid capital gains or any other money making business …as Feds won’t be able to monitor it…I know of a personally owned workout Gym that is actually a front for a mariauna growing business has about 15 members at harvest time the industrial complex where its located reeks of weed the funny part of that situation is the business next door is owned by retired police officers landlord was notified of the odors but gym is still in operation …Plus mariauna people use BitCoin anyway


kettle

“So will real estate flippers…..” No it is a bank and it has reporting requirements just like a credit union, it’s not a magic new thing.


“Plus mariauna people use BitCoin anyway” No they don’t, sure illegal sales on the dark web do but not the store fronts etc.


DPINC

A state bank can’t report as normal …The Feds would raid it …The U.S. Dollar is federal money not state money . Why would people buy weed at a store front for outrageous prices when they can grow it for next to nothing .. The store front is a novelty soon to die out …The store fronts that will survive in the USA will be ones that are located at state lines bordering states that haven’t legalized weed


Nightrider

Would love to see Trump’s Federal marshals go into the building and make them all do a Perp walk.

Al Capone would have been envious.


kettle

Living in a made up fantasy world must be nice.


Snoid

Cool, Ganja national bank. The gonna have twinkie and ding dong vending machines at the atms?


kayaknut

Lets just hope Governor Newsom doesn’t used the same financial wizards for the pot banks that were used to control the finances of the non-bullet train


CentralCoaster

“misfired bullet train”.