California Treasurer John Chiang put together a “Cannabis Banking Working Group” several months ago to study the contortions created by the juxtaposition of state cannabis legality and our republic’s illegalization.
It considers strategies in four areas:
- Tax and fee collections needs to be safer and more efficient
- Figure out how to get cannabis access to bank services
- Study creating a state-backed bank to create bank services for cannabis businesses
- Work to change federal law to respect the now loud voice of the states (the problems the CBWG noted exist in 30 states (including DC)).
after pointing to the following societal problems:
- Cannabis businesses are forced to accumulate staggering amounts of cash. Their customers must pay in cash, and cannabis businesses can’t get banks to create bank accounts for them to deposit the cash into, like other businesses. This makes their customers and employees targets of violent crime, and promotes tax evasion.
- It costs more to secure government locations for the payment of cash than it does to provide armored car service to pick the cash up. In addition, state law could create a state bank that took currency in and delivered it directly to the Federal Reserve for redemption.
- We’ll never stop the black market until this new industry has normal access to banking.
Here is a link to the report. As the Republican candidate for Nevada Treasurer, I would encourage Nevadans to take a look at the report. The short story is in the Executive Summary close to the top. Feel free to offer me your opinion – my cell is 702-592-8822.