Bill Text

PDF |Add To My Favorites |Track Bill | print page

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

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 01/16/2020 09:00 PM
AB1525:v97#DOCUMENT

Amended  IN  Assembly  January 16, 2020
Amended  IN  Assembly  January 06, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1525


Introduced by Assembly Member Jones-Sawyer

February 22, 2019


An act to add Chapter 24 (commencing with Section 26260) to Division 10 of the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 1525, as amended, Jones-Sawyer. Cannabis: financial institutions.

(1)Existing

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), approved by the voters as Proposition 64 at the November 8, 2016, statewide general election, regulates the cultivation, distribution, transport, storage, manufacturing, testing, processing, sale, and use of marijuana for nonmedical purposes by people 21 years of age and older. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA imposes duties on the Bureau of Cannabis Control in the Department of Consumer Affairs with respect to the creation, issuance, denial, suspension, and revocation of licenses issued for microbusinesses, transportation, storage, distribution, testing, and sale of cannabis and cannabis products pursuant to MAUCRSA. MAUCRSA requires the Department of Food and Agriculture, in consultation with the bureau, to establish a track and trace program for reporting the movement of cannabis and cannabis products throughout the distribution chain, as provided.
This bill would provide that an entity, as defined, that receives deposits, extends credit, conducts fund transfers, transports cash or financial instruments on behalf of a financial institution, or provides other financial services, including public accounting, as provided, for a person licensed to engage in commercial cannabis activity does not commit a crime under any California law 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. The bill would authorize a person licensed to engage in commercial cannabis activity to request, in writing, that a licensing authority or the California Cannabis Authority share the person’s application, license, and other regulatory and financial information, as specified, with a financial institution of the person’s designation and would require the request to include a waiver authorizing the transfer of that information and waiving any confidentiality or privilege that applies to that information. The bill would further authorize licensing authorities and the California Cannabis Authority, upon receipt of a written request and waiver as described above, to share regulatory and financial information with the designated financial institution for the purpose of facilitating commercial banking for the requesting licensee.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


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: 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) A certified public accountant or certified public accounting An individual or firm, which 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.