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State Treasurer Releases Findings of Cannabis Banking Working Group

November 9, 2017
State Treasurer John Chiang held a press conference on Nov. 7 to discuss a report issued by his office’s Cannabis Banking Working Group (CBWG).
 
The CBWG found that the real power to improve industry access to banking resides with the federal government. Actions by the State of California will be an interim solution, even if feasible. The League recommended that the CBWG conduct a legal analysis on the formation of a stand-alone state-backed financial institution as part of the proposed feasibility study called for in the Treasurer’s report.
 
The legal analysis will examine two key issues:
  • Can the State of California create a cannabis-related state bank or credit union without violating federal law?
  • Would monies/tax revenues deposited in such an institution be subject to asset forfeiture under federal law? 
In conjunction with its report, the CBWG also issued a fact sheet entitled “Opening the Baking System to the Cannabis Industry.


 
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