Today's Law As Amended


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AB-1525 Cannabis: financial institutions.(2019-2020)



As Amends the Law Today


SECTION 1.

 Chapter 24 (commencing with Section 26260) is added to Division 10 of the Business and Professions Code, to read:

CHAPTER  24. Information Sharing with Financial Institutions
26260.
 (a) An entity that receives deposits, extends credit, conducts fund transfers, transports cash or financial instruments on behalf of a financial institution, or provides other financial services for persons licensed to engage in commercial cannabis activity pursuant to this division does not commit a crime under any California law, including Chapter 10 (commencing with Section 186.9) of Title 7 of Part 1 of the Penal Code, solely by virtue of receiving deposits, extending credit, conducting fund transfers, transporting cash or other financial instruments, or providing other financial services for the person.
(b) (1) A person licensed to engage in commercial cannabis activity pursuant to this division may request in writing a licensing authority or the California Cannabis Authority to share the person’s application, license, and other regulatory and financial information with a financial institution of the person’s designation. The person shall include in that written request a waiver authorizing the transfer of that information and waiving any confidentiality or privilege that applies to that information.
(2) Notwithstanding any other law that might proscribe the disclosure of application, licensee, and other regulatory and financial information, upon receipt of a written request and waiver pursuant to paragraph (1), a licensing authority and the California Cannabis Authority may share application, licensee, and other regulatory and financial information with the financial institution designated by the licensee in that request for the purpose of facilitating commercial banking for that licensee.
(c) For purposes of this section, all of the following definitions apply:
(1) “Application, licensee, and other regulatory and financial information” includes, but is not limited to, both information in the track and trace system established pursuant to Sections 26067 and 26068 and information in the California Cannabis Authority’s data platform.
(2) “Entity” means a licensee defined in Section 185 of the Financial Code, an armored car service licensed by the Department of the California Highway Patrol pursuant to Section 2510 of the Vehicle Code that has been contracted by a financial institution, or a person providing financial services to persons licensed to engage in commercial cannabis activity pursuant to this division.
(3) “Financial institutions” means any of the following:
(A) A bank, trust company, or industrial loan company doing business under the authority of, or in accordance with, a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States that is authorized to transact business in this state.
(B) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state.
(C) A savings and loan association, savings bank, or credit union organized under the laws of this or any other state that is authorized to transact business in this state.
(D) A licensee defined pursuant to Section 185 of the Financial Code.
(4) “Firm” has the same meaning as in Section 5035.1.
(d) An individual or firm, that practices public accounting pursuant to Chapter 1 (commencing with Section 5000) of Division 3, does not commit a crime under California law solely for providing professional accounting services as specified to persons licensed to engage in commercial cannabis activity pursuant to this division.
(e) Nothing in this section shall be construed to require the disclosure of information by a licensing authority or the California Cannabis Authority beyond which is reasonably necessary to facilitate commercial banking for the licensee making a request pursuant to this section. Nothing in this section shall be construed to authorize the disclosure of confidential or privileged information, nor waive a licensee’s rights to assert confidentiality or privilege, except to a financial institution as provided herein and except as reasonably necessary to facilitate commercial banking for the licensee making the request.