Jacob Redmond
Well-Known Member
When the state legislature gets back to work in August, lawmakers say there's a good chance they'll take up the issue of how banks handle money and tax revenue from medical marijuana dispensaries.
Because the use and sale of medical marijuana is not legal under federal law, many bank managers believe working with cannabis related businesses is too much of a risk.
Lanette Davies runs her dispensary, Cannacare like any other business, with one major difference. Banks won't do business with her.
"What we've had to do is not only carry all this cash which is totally ridiculous, we've had to stand in long lines to pay bills," said Davies.
Davies makes a trip once a month to the board of equalization to pay her state taxes, often times with upwards of $20 thousand in her purse. She says she often feels unsafe.
"What, risk to my livelihood and to me, as far as being robbed, and why should I be put in that jeopardy, because I'm in the cannabis industry?" said Davies.
Banks that accept money stemming from cannabis run the risk of additional federal audits, even prosecution, according to senior vice president of community credit union, Janet Sanchez.
"The financial industry is left with diametrically opposed rules that we have to comply with. That puts us in a very risky position and makes it a poor business decision to participate," said Sanchez.
"Not being able to have a bank account severely impacts a person's life" said Fiona Ma, who sits on the State Board of Equalization
Ma set up a meeting today at BOE's headquarters to brainstorm ways to make California's banks compatible with marijuana dispensary operators.
Her idea: a state-run banking system exclusively for dispensaries.
Other ideas which came up in the meeting included an ATM system meant to make cash deposits easier for customers, and create a paper trail for dispensaries so their record keeping would be more concrete, especially when dealing with cash.
Ma admits though, no matter what California's legislature does, real change may have to start in Washington.
"Yes, until the federal government changes its laws regarding the banks and the credit unions, the banks and the credit unions are going to have a very difficult time," Ma said.
Marijuana related business owners like Davies hope state lawmakers come up win an idea that she can quite literally take to the bank.
"We're first to open up the cannabis industry, I think we should be the first one to step forward now, in the banking industry," said Davies.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Medical Marijuana Dispensaries Asking for State-Run Banking System | FOX40
Author: Joe Khalil
Contact: About Us | FOX40
Photo Credit: KTWS News
Website: FOX40 | Sacramento breaking news, weather, sports and social media
Because the use and sale of medical marijuana is not legal under federal law, many bank managers believe working with cannabis related businesses is too much of a risk.
Lanette Davies runs her dispensary, Cannacare like any other business, with one major difference. Banks won't do business with her.
"What we've had to do is not only carry all this cash which is totally ridiculous, we've had to stand in long lines to pay bills," said Davies.
Davies makes a trip once a month to the board of equalization to pay her state taxes, often times with upwards of $20 thousand in her purse. She says she often feels unsafe.
"What, risk to my livelihood and to me, as far as being robbed, and why should I be put in that jeopardy, because I'm in the cannabis industry?" said Davies.
Banks that accept money stemming from cannabis run the risk of additional federal audits, even prosecution, according to senior vice president of community credit union, Janet Sanchez.
"The financial industry is left with diametrically opposed rules that we have to comply with. That puts us in a very risky position and makes it a poor business decision to participate," said Sanchez.
"Not being able to have a bank account severely impacts a person's life" said Fiona Ma, who sits on the State Board of Equalization
Ma set up a meeting today at BOE's headquarters to brainstorm ways to make California's banks compatible with marijuana dispensary operators.
Her idea: a state-run banking system exclusively for dispensaries.
Other ideas which came up in the meeting included an ATM system meant to make cash deposits easier for customers, and create a paper trail for dispensaries so their record keeping would be more concrete, especially when dealing with cash.
Ma admits though, no matter what California's legislature does, real change may have to start in Washington.
"Yes, until the federal government changes its laws regarding the banks and the credit unions, the banks and the credit unions are going to have a very difficult time," Ma said.
Marijuana related business owners like Davies hope state lawmakers come up win an idea that she can quite literally take to the bank.
"We're first to open up the cannabis industry, I think we should be the first one to step forward now, in the banking industry," said Davies.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Medical Marijuana Dispensaries Asking for State-Run Banking System | FOX40
Author: Joe Khalil
Contact: About Us | FOX40
Photo Credit: KTWS News
Website: FOX40 | Sacramento breaking news, weather, sports and social media
