California’s fast-rising cannabis industry, which has been forced by federal law to conduct almost all its business in cash, got a boost Thursday when legislation was introduced to allow banks to open accounts for people involved in the field.
State Sen. Robert Hertzberg, D-Van Nuys, introduced a bill that would allow California-chartered banks, credit unions and other financial institutions to open checking and savings accounts and issue checks for marijuana retailers.
The proposed law, known as SB930, is an attempt to deal with U.S. Drug Enforcement Administration rules that still classify cannabis as a Schedule I drug, and therefore put banks opening accounts for marijuana businesses in a precarious position.
California and eight other states have legalized adult recreational use of marijuana, but the laws don’t trump federal rules that make banks that accept deposits from such businesses liable for penalties. It means cannabis merchants must pay their taxes and employees with huge wads of cash—putting them in the crosshairs of robbers and thieves.
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