Home Marijuana BCC Declares Proposed Rules re: AB 1525 and Monetary Companies – Canna...

BCC Declares Proposed Rules re: AB 1525 and Monetary Companies – Canna Legislation Weblog™

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On January 14th, the California Bureau of Hashish Management (BCC) issued an announcement of proposed laws pursuant to AB 1525, which was authorised by the Governor in September 2020. The aim of AB 1525 was to:

present that an entity, as outlined, that receives deposits, extends credit score, conducts fund transfers, transports money or monetary devices, or offers different monetary providers, together with public accounting, as offered, doesn’t commit against the law below any California legislation solely by advantage of the truth that the particular person receiving the good thing about any of these providers engages in industrial hashish exercise as a licensee.

The invoice would additionally:

authorize an individual licensed to have interaction in industrial hashish exercise to request, in writing, {that a} state or native licensing authority, state or native company, or joint powers authority share the particular person’s software, license, and different regulatory and monetary info, as specified, with a monetary establishment of the particular person’s designation and would require the request to incorporate a waiver authorizing the switch of that info and waiving any confidentiality or privilege that applies to that info [and would] authorize a state or native licensing authority, state or native company, or joint powers authority upon receipt of a written request and waiver as described above, to share regulatory and monetary info with the designated monetary establishment for the aim of facilitating the availability of monetary providers for the requesting licensee till such time that the state or native licensing authority, state or native company, or joint powers authority receives a withdrawal of the waiver.

The aim of AB 1525 and the proposed laws is to facilitate higher entry to monetary providers for licensed industrial hashish companies. As we’ve written about extensively, hashish companies in California have usually struggled to safe monetary providers, together with financial institution accounts, which has led to an entire host of issues. You may learn extra about banking points confronted by the hashish business right here:

In accordance with the press launch issued by the BCC, the proposed laws will:

create a pathway for licensees to authorize sharing of personal info with chosen monetary establishments and supply a mechanism for monetary establishments to extra readily conduct the federally-required critiques of the hashish enterprise. By decreasing the burden of offering monetary providers to hashish companies, extra monetary establishments could also be prepared to offer providers, thereby decreasing the necessity to maintain money on-hand and enhancing public security.

Our agency has labored with various credit score unions to develop their due diligence protocols for working with hashish companies, and admittedly, the extent of due diligence required to make sure compliance is likely one of the greatest deterrents for monetary establishments. Monitoring the regulatory compliance of a hashish enterprise consumer is usually a logistical nightmare, so we’re hopeful that these new laws will ease a few of that burden and permit simpler entry to primary banking providers for everybody within the business.

The general public remark interval is now open – feedback should be submitted to each the Workplace of Administrative Legislation and the BCC – and the proposed laws could be discovered here.