CleverRoot

s u m m e r 2 0 1 8 | 7 1 California State Treasurer John Chiang is one of the most powerful advocates for cannabis banking in the Golden State. How was the banking group put together and who suggested the members? How many meetings did you orchestrate? I created a panel of 18 representatives from the cannabis industry, financial institutions, and government tax collection, law enforcement, and regulatory agencies. These stakeholders provided valuable input and recommendations. The Working Group held six public meetings around the state and heard from nearly 50 expert panelists during that time. What was your conclusion after these meet- ings and discussions? The Working Group made four main recom- mendations: the implementation of safer, more effective ways to handle the payment of taxes and fees in cash; the development of a portal of compliance and regulatory data by the State of California and local governments that should be made available to financial institutions that bank cannabis businesses; a feasibility study of a public bank or other state-backed financial institution that provides banking services to the cannabis industry; and the establishment of a multistate consortium of state govern- ment representatives and other stakeholders to pursue changes in federal law to remove the barriers to cannabis banking. Have there been any follow-up ideas since your announcement of these conclusions? California voters have spoken with the pas- sage of Proposition 64. I'll continue to work to ensure the right laws and regulations are in place to keep our communities safe and build on California's bold effort to create a safe, legal, transparent, and responsible cannabis industry. I remain convinced we can find ways to expand cannabis industry banking access and make Proposition 64 a success. With California falling short of the estimat- ed tax revenue in the wake of legalization, how do you see the banking solution helping to prompt an increase? It's estimated that legal cannabis will generate more than $7 billion in annual sales in its first few years of operation, creating real economic opportunities for California. But, currently, the lack of banking services affects govern- ment taxes and forces the cannabis industry to operate in cash. This creates hardships and poses dangers to cannabis entrepreneurs, their employees, and the general public. A public bank will help local businesses contribute to our state economy, will remove the threat of increased violence since businesses will no longer need to operate with purely cash, and will help destigmatize the impression we have of the cannabis industry. California will lead when it comes to bringing the cannabis industry out of the shadows so that it can be properly regulated to prevent sales to minors, protect the public's health and safety, and ensure cannabis businesses behave as legitimate, tax-paying members of our economy. Ultimately, we all want California to get the most bang for its buck. ■cr

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