California Cannabis Banking Bill Clears Senate, Heads to Assembly

A California bill to establish a state charter bank for cannabis businesses has passed the Senate Floor.

Senate Bill 930, authored by state Sen. Bob Hertzberg, D-Van Nuys, would enable banks to issue checks to cannabis business accountholders to be used for the following purposes:

• Pay state and local taxes and fees,
• Pay vendors from California for goods and services provided to the cannabis business,
• Pay rent, and
• Purchase state and local bonds and other debt instruments.

“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. This bill takes a limited approach to provide all parties with a safe and reliable way to move forward on this urgent issue.”

The bill, which passed on a 29-6 vote, next heads to the Assembly where it awaits committee referral.