To: Board of Supervisors
From: Supervisor Ryan Sundberg
SUBJECT:
title
Letter of Support for SB 930 (Hertzberg): a Bill to Provide Banking Services to the Cannabis Industry (Supervisor Ryan Sundberg)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors authorize the Chair to sign the letter of support.
Body
SOURCE OF FUNDING:
N/A
DISCUSSION:
The use of medical marijuana was legalized in California in 1996 and Prop 64 legalized adult-use cannabis as of January, 2018. However, due to cannabis’ federal classification as a Schedule I drug, cannabis-related businesses are not able to deposit income with federally-insured financial institutions. Cannabis cultivation, distribution, and retail businesses have been forced to operate on a cash-only basis creating a significant public safety issue, and is extremely impractical from an accounting perspective.
SB 930 creates a limited purpose state charter bank license that would be administered and regulated by the Department of Business Oversight, and would allow cannabis-related businesses to open accounts and deposit income in banks that hold a limited purpose state charter created under the bill.
FINANCIAL IMPACT:
N/A
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board discretion
ATTACHMENTS:
Letter of Support
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A