Legal Seminar, Denver, CO

Marijuana-Related Financial Services

Michigan (Act 10) Licenses and regulates medical marijuana growers, processors and secure transporters. [Effective January 26, 2018] New York The Department has issued a memorandum, to banks and credit unions encouraging New York financial institutions to form appropriate banking relationships with entities engaged in the business of industrial hemp and medical marijuana. “The banking industry is a vibrant part of New York’s economy, where businesses cannot flourish without appropriate banking relationships. Accordingly, the Department encourages all New York State chartered banks and credit unions to further support New York’s economy, and strengthen these legal businesses by providing safe and sound access to financial services provided in a rigorous regulatory environment.” The guidance states that the Department will not impose any regulatory action on any state-chartered institution solely for establishing such a banking relationship. The guidance and press release can be found here. Vermont (Act 86) Eliminates all penalties for possession limited amounts of marijuana by persons 21 years of age or older (less than one ounce or two mature or four immature plants). Retains criminal penalties for possession, dispensing and sale of larger amounts. [Effective July 1, 2018] Washington (Ch. 68) Specifies that it is not a crime under state law for a financial institution to provide services such as extending credit or receiving deposits for marijuana businesses. [Effective June 8, 2018] A California proposal would enact the Cannabis Limited Charter Banking Law and the Cannabis Limited Charter Bank Advisory Board to license and regulate cannabis limited charter banks to provide banking and custodial services to cannabis businesses. The banks would be able to issue special purpose checks to account holders to be used for specified payments, including state and local fees and taxes, rent on property associated with a cannabis business, and payment of vendors. (S.B. 930 has passed the Senate and is pending in the Assembly.) Proposals: Hawaii (Act 21) Clarifies the Commissioner of Financial Institutions’ powers regarding the ability to administer and enforce the Money Transmitters Act and amends the bond provisions for consistency with the Act. [Effective June 2, 2018] North Carolina (H.B. 86) Several amendments have been made to the money transmitter license law including: • Removal of the brick and mortar requirement for authorized delegates of money transmitter licensees • Reduction of the value of receivables due to the licensee from 90 days past due to 30 days • Elimination of the requirement that the licensee owns the virtual currency considered under permissible investments Money Transmission/Virtual Currency Enactments: