The marijuana banking bill is back.
Six years after it was first introduced, the House of Financial Services Committee has released a revamped Secure and Fair Enforcement Banking Act of 2019. Also known as the SAFE Banking Act of 2019, this new draft is designed to create a safe harbor for banks to serve the growing cannabis industry. Curious to learn more about this new legislation? Your California commercial realty advisors report.
The main purpose of the SAFE Banking Act is to prevent federal regulators from penalizing banks and financial institutions that provide funding and other banking services to marijuana-related businesses. This bill was proposed to provide legal clarity in a time when the cannabis industry is fettered with serious financial and security risks. The 2019 version of the bill pushes for greater protections with new provisions including the following:
1) Identifies and adds protections for the businesses that provide products and services to cannabis-related businesses.
2) Adds protections for marijuana-related “retirement plans or exchange-traded funds” as well as real estate transactions related to the cannabis industry.
3) Adds protections for “distributing or deriving any proceeds, directly or indirectly, from cannabis or cannabis products.”
4) Explains how marijuana-related businesses on tribal land could qualify.
5) Requires that the Federal Financial Institution Examination Council develop guidelines to help financial institutions serve legitimate cannabis-related businesses.
This is what your California commercial realty advisors have to report on the SAFE Banking Act of 2019. Want to keep up with the latest SoCal commercial real estate news, or need help securing commercial space of your own? If so, contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is ready to assist you with all your commercial and industrial real estate needs today.