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

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Date Published: 02/22/2019 09:00 PM
AB1525:v99#DOCUMENT


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 introduced, Jones-Sawyer. Cannabis: financial institutions.
(1) 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 licensing authority to share application, licensee and regulatory information, including information in the track and trace program, with financial institutions, as defined. The bill would require a person licensed to engage in commercial cannabis activity to sign a waiver allowing licensing authorities to transmit that specified information to financial institutions.
AUMA, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further the purposes and intent of AUMA.
Vote: 2/3   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. 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 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) Licensing authorities are authorized to share application, licensee, and regulatory information, including information in the track and trace system pursuant to Sections 26067 and 26068, with financial institutions.
(c) Persons licensed to engage in commercial cannabis activity pursuant to this division shall sign a waiver allowing licensing authorities to transmit application, licensee, and regulatory information, including information in the track and trace system pursuant to Sections 26067 and 26068, to financial institutions.
(d) For purposes of this section, “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.
(e) For the purposes of this section, “financial institutions” means any of the following:
(1) 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.
(2) A federally chartered savings and loan association, federal savings bank, or federal credit union that is authorized to transact business in this state.
(3) 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.
(4) A licensee defined pursuant to Section 185 of the Financial Code.
(f) A certified public accountant or certified public accounting firm, which practices public accounting pursuant to Section 5050, 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.

SEC. 2.

 The Legislature finds and declares that Section 1 of this act, which adds Chapter 24 (commencing with Section 26260) to Division 10 of the Business and Professions Code, furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016, as stated in Section 3 of that act.