SACRAMENTO, California – The California Department of Food and Agriculture (CDFA) submitted proposed Emergency Provisions that would change the provisions of Bill 1525 to the Congregation Office for Administrative Law (OAL).
The move could mean a step forward for the legal cannabis industry in California. The implementation of regulations would effectively give cannabis companies access to banking services, including merchant banking, payment processing, insurance, and other functions normally available to other legal businesses.
A five-day public comment period on the proposed regulations opened on January 22nd and runs until Thursday. Comments can be sent by post, email or fax and must be sent to both the CDFA and the OAL.
Respondents should include the title of proposed regulation 2021-0122-01E with comments. Comments are not accepted in person or over the phone. Interested parties can send their comments to:
Office for Administrative Law
300 Capitol Ave, Suite 1250
Sacramento, CA 95814
California Department of Food and Agriculture
CalCannabis Cultivation Licensing Division
P.O. Box 942871
Sacramento, CA 94271
“AB 1525 has two main functions. First, it clarifies that financial institutions and other corporations – including armored vehicles and accounting firms – have not committed any criminal offense under California law simply for providing services to licensed cannabis companies, ”he said JD Supra‘s law blog.
Second, the bill gives financial institutions access to applications, licenses and other information for cannabis companies from state and local agencies and agencies, the Post added.
Members of the assembly approved AB 1525 in August 2020 with a vote of 68-1.
Since its approval, lawmakers have been overwhelmed by several crises, including historic forest fires, social unrest and the global COVID-19 pandemic that has seen California become a virus epicenter.
Given concerns that the implementation of AB 1525 may be overlooked in the current circumstances, the CDFA’s announcement states that the proposed regulations will “grant licensed cannabis companies facing difficulties banking, insurance and other generally available financial services Get better access to financial services to other companies. “
Similar, The SAFE Banking Act (Secure and Fair Enforcement), which would mandate banking services nationwide for the U.S. cannabis industry, was approved by the House of Representatives in 2019 but has yet to be approved by the Senate. In Congress, the SAFE bill was backed by both parties but stalled by the GOP-controlled Senate amid the storm of unprecedented problems caused by politics and pandemic.
Under the new Biden administrationThe cannabis industry businesses are confident that federal legalization isn’t all that far away. Politico, however, said it was unlikely that cannabis legislation would cross the Resolute Desk before Easter. If federal legislation continues to be delayed, the emergency provisions implemented by AB 1525 could give the California cannabis businesses a significant boost.