CleverRoot

7 0 | t h e c l e v e r r o o t IT'S ONE OF THE BIGGEST HINDRANCES to the legal cannabis industry: How should multi-million- dollar businesses handle their finances when they can't use traditional, federally backed banks? As lawmakers enter the fray to untangle this mess, The Clever Root caught up with California State Treasurer John Chiang as he works to combat the cannabis industry's banking problem in the Golden State. The Clever Root: What led you to create the Cannabis Banking Working Group, which is at- tempting to resolve the issues of cannabis banking? John Chiang: On November 8, 2016, Proposition 64 [which legalized recreational cannabis in California] passed overwhelmingly. The people of California had spoken, so it's important we help those in the business community move out of the shadows and into the light. I formed the Canna- bis Banking Working Group to find a practical solution to safety concerns with cannabis dispensa- ries not having access to banks to deposit their money. I'm exploring the idea of a public bank as an essential part of California's bold effort to build a safe, legal, transparent, and responsible cannabis industry. My office partnered with the Attorney General's Office, which performed the legal portion of this study. We need answers to legal issues surrounding the regulation of a state bank for cannabis, such as whether establishing such a bank would provide greater protection for the institution and its customers. CALIFORNIA CANNABIZ Big Banking Goes GREEN CANNABIS BRANDS SEEKING SOLUTIONS TO BANKING IN CALIFORNIA TURN TO STATE TREASURER JOHN CHIANG by Seth Doulton GREEN

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