CA treasurer pushes state-run bank for cannabis businesses

California’s state treasurer isn’t waiting on the federal government to solve marijuana businesses’ banking problem.

Treasurer John Chiang and members of a working group he formed are calling on California officials to create a state-government-run bank to serve marijuana companies, the Los Angeles Times reported.

The recommendation by Chiang’s group bolsters a growing movement that wants cities and states to create public banks for marijuana businesses.

Here’s what you need to know:

  • Over the course of the year, Chiang’s group heard from cannabis business owners about their banking challenges and difficulties paying taxes.
  • In addition to a California-run bank, the group recommended that state and local bodies that regulate marijuana businesses make information about the companies available to banks. Such a move would help financial institutions feel more at ease handling cannabis funds, the group concluded.
  • The group called for the formation of a multistate group to lobby Congress to relax federal regulations on marijuana.
  • It also recommended that California hire armored car services to pick up tax payments from cannabis companies so they don’t have to drop off bags of cash at the tax office.
2 comments on “CA treasurer pushes state-run bank for cannabis businesses
  1. Paula Collins on

    This is such exciting news, but how will the California banks keep the funds in-state, as opposed to moving throughout the global banking system, where it could be seized after leaving California digitally? Just curious.
    Paula Collins, Gotham Tax Solutions — a cannabis tax resolution business

    Reply

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