The state treasurer of California has announced she will be convening a hearing next week to highlight the marijuana industry’s banking access “challenges” and the effect it has on businesses, workers and communities.
The hearing, hosted by Treasurer Fiona Ma (D), comes ten years after a predecessor of hers in the role launched a Cannabis Banking Working Group to examine the issue.
Titled, “Continuing the Conversation: Advancing Safe and Legal Banking for California’s Cannabis Industry,” the hearing on Wednesday will feature state and local officials, financial institutions and marijuana business representatives. The intent is to “review the progress made, discuss remaining barriers and consider practical steps California can take to support a safe, transparent and well-regulated legal cannabis market,” a press release from Ma’s office said.
“Nearly a decade after the launch of the Cannabis Banking Working Group, California’s legal cannabis industry continues to face barriers to accessing affordable and reliable financial services because of the ongoing conflict between state and federal law,” Ma said. “This hearing will help us assess what has changed, identify the challenges that remain and continue the conversation about practical solutions that support public safety, transparency and responsible business operations.”
Last month, bipartisan U.S. House and Senate members refiled legislation to protect banks from being punished for providing financial services to marijuana businesses.
Earlier iterations of the banking legislation have been introduced in past sessions of Congress, and while versions have been approved by the House of Representatives on several occasions, the reform has never been enacted into law.
While some banks do serve marijuana businesses, the plant’s ongoing federal illegality has made many reluctant to work with the industry.
“Restricted access can increase operating costs, complicate routine financial transactions and require some businesses to handle larger amounts of cash, creating additional security and administrative concerns,” Ma’s office said.
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