California: Senate approves bill to create banks for cannabis industry

California cannabis companies may soon be able to open a bank account thanks to a bill the Senate just passed. U.S. Senators indeed passed last week the SB 930, a project that would allow the creation of state-owned banks for the cannabis industry.

The bill passed with 29 votes to 6, and now heads to the California State Assembly.

Like all American states that have legalized cannabis, California cannabis companies are forced to pay their taxes, employees, and bills in cash. U.S. banks are indeed governed by federal law, which still considers cannabis illegal and therefore restricts banks from touching it, a topic on which No state has made a move so far.

The state of California expects to collect $600 million in taxes this year, and if the industry's banking problems aren't resolved, it will have to collect it in cash.

A state-owned bank could theoretically solve this problem. This type of bank has a more limited scope than a traditional bank, but it would allow cannabis businesses to deposit money and pay rent or taxes by check.

«The status quo for our legal cannabis industry is unsustainable., said Senator Hertzberg. «It's not only unworkable from an accounting standpoint, but it also presents a huge 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.»