Tuesday, July 17, 2018
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L.A. City Council Supports Federal Bill Seeking Banking Relief for Pot Shops
By City News Service
Published July 5, 2018

The Los Angeles City Council voted today in support of federal legislation that would prohibit banking regulators from punishing a financial service provider for doing business with a state-compliant cannabis business, a move that comes as the panel is exploring the creation of a municipal bank that could serve the cannabis industry.

The federal government still considers marijuana a Schedule I drug under the Controlled Substances Act, and as a result most banks are hesitant to take on cannabis businesses as clients for fear of violating federal laws.

The SAFE Banking Act is a U.S. Senate bill that would prohibit federal banking regulators from altering an institution’s deposit or share insurance solely for lending to a marijuana-related business, or otherwise discouraging institutions from offering financial services to marijuana businesses.

The bill would also prevent corrective supervisory action on a loan solely because it was given to a marijuana-related business, and would protect an institution from forfeiture for working with such businesses.

The resolution was approved on a 12-0 vote.

Categories: Local | News
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