A second state Senate committee on Wednesday approved a bill that would make it easier for California cannabis businesses to write checks — instead of using hoards of cash, as is common practice now — to pay taxes, rent and fees to vendors.
The bill, introduced by state Sen. Robert Hertzberg, D-Van Nuys, would allow the creation of a special class of state-chartered banks and credit unions, regulated by the Department of Business Oversight, that could process deposits, withdrawals and other financial transactions by licensed cannabis merchants. The Governance and Finance Committee approved the legislation Wednesday.
The federal government considers marijuana a Schedule 1 drug, so federally insured financial institutions cannot process cannabis-related transactions without running the risk of criminal charges, including money laundering.
