California Committee Approves Bill to Establish Marijuana Banks and Credit Unions

Legislation that would allow for the creation of a special class of state-chartered banks and credit unions that could service California’s legal marijuana industry has been passed by a key Senate committee.

Filed by Senator Robert Hertzberg (D), Senate Bill 930 was passed recently by the Senate Banking and Financial Institutions Committee in a 6 to 1 vote, sending it to the Senate Appropriations Committee. Passage in the Appropriations Committee would send it to the full Senate. If passed by the Senate, and then the House of Representatives, it would go to Governor Jerry Brown for final consideration.

The proposed law would allow for the creation of special state-chartered banks and credit unions that could legally process transactions by licensed marijuana businesses. These “marijuana banks” would be regulated by the Department of Business Oversight.

Read moreCalifornia Committee Approves Bill to Establish Marijuana Banks and Credit Unions

Federal Reserve Gives Approval to Marijuana Credit Union to Service Marijuana-Related Businesses

Colorado’s Fourth Corner Credit Union has been given permission by the Federal Reserve of Kansas City to provide financial services to marijuana-related businesses.

According to the Wall Street Journal, the Federal Reserve Bank of Kansas City granted conditional approval yesterday to Fourth Corner Credit Union to work with and provide financial services to marijuana-related businesses. The credit union’s approval comes over three years after they launched in Colorado, and over two and a half years after they filed a lawsuit against the Federal Reserve for initially denying their request to service the marijuana industry.

According to the Wall Street Journal report, Fourth Corner will not provide serves to marijuana dispensaries, as they initially planned, but will “focus on individuals and companies that support legalized marijuana.” This includes marijuana accountants, security companies and landlords, among others.

Read moreFederal Reserve Gives Approval to Marijuana Credit Union to Service Marijuana-Related Businesses