State Treasurer Cannabis Banking Report


Ahead of the 2018 implementation of legalized adult-use cannabis in California, State Treasurer John Chiang released a report from the Cannabis Banking Working Group, which the California Credit Union League was a member of. The findings in the report were the culmination of 6 hearings of the Treasurer’s 18-person Working Group, whose members included representatives from local and state government, the cannabis industry, financial institutions and law enforcement.

The report lays out recommendations to address public safety issues with this mostly cash business and help cannabis businesses obtain banking services. They include:(1) implementation of safer and scalable ways to handle the cash payment of taxes and fees that minimize risks to stakeholders; (2) California and local governments should develop a data portal of compliance and regulatory data and make it available to financial institutions that bank cannabis businesses; (3) conduct a feasibility study of a public bank or other state-backed financial institution that provides banking services to the cannabis industry; (4) a multistate consortium of state government representatives and other stakeholders established to pursue changes to federal law to remove the barriers to cannabis banking.

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