California 2017-2018 Regular Session Status: Passed Senate Bipartisan · 1 R · 1 D cosponsors

SB 930 — Financial institutions: cannabis.

Last action — August 16 hearing: Held in committee and under submission.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) Existing law, the Financial Institutions Law, regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings and loan associations. The Banking Law defines and regulates state banks and commits the enforcement of banking laws to the Commissioner of Business Oversight. The California Credit Union Law provides for the licensure and regulation of credit unions by the Commissioner of Business Oversight and makes a willful violation of that law a crime. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016, an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under the act to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act, among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. This bill would create the Cannabis Limited Charter Banking and Credit Union Law, to be administered by the Commissioner of Business Oversight and the Department of Business Oversight. The bill would create the Cannabis Limited Charter Bank and Credit Union Advisory Board and specify its composition, to include the Treasurer, the Controller, and the Chief of the Bureau of Cannabis Control, and commit to it the general responsibility for ensuring that this law functions in a safe and efficient way. The bill would prescribe the powers and duties of the board, including reviewing department enforcement reports, holding meetings that would be open to public comment, and issuing its own recommendations, which would be submitted to the Legislature and the Governor. The board would also be required to provide guidance on specified investment activities. The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing limited banking services, as defined, to cannabis businesses. The bill would require a person who desires to be licensed as a cannabis limited charter bank or credit union to submit an application to the department, and would require that person to elect to form under either the Banking Law or the California Credit Union Law. The bill would authorize the department to charge an applicant for a cannabis limited charter bank or credit union license a reasonable fee. The bill would require a licensee to comply with all requirements in the Financial Institutions Law, and either the Banking Law or the California Credit Union Law, as applicable, except to the extent that any requirement of those laws are inconsistent with a provision of the Cannabis Limited Charter Banking and Union Law. By expanding the application of the California Credit Union Law, a willful violation of which is a crime, the bill would impose a state-mandated local program. This bill would authorize a cannabis limited charter bank or credit union to issue to an account holder special purpose checks that would be valid for only specified purposes. The bill would authorize a cannabis limited charter bank or credit union to cash the checks it has issued, including those presented by parties that are not account holders, as specified. The bill would permit these checks to be used for the payment of state and local fees and taxes, payment of rent on property leased by, or on behalf of, the account holder's cannabis business, payment of vendors physically located in California, as specified, and the purchase of state and local bonds, as specified. The bill would provide that a person or entity is not required to accept these checks. The bill would require a cannabis limited charter bank or credit union to obtain and maintain insurance at all times that it is engaged in business, subject to certain requirements including that the insurance be in an amount acceptable to the commissioner. The bill would authorize a cannabis limited charter bank or credit union to charge fees for its banking services, and would authorize the commissioner, if requested by any person or whenever the commissioner deems appropriate, to review any fee charged. The bill would require a cannabis limited charter bank and credit union to provide the commissioner with a specified fee schedule, which information the department would be required to compile and post information on its Internet Web site. The bill would authorize a cannabis limited charter bank or credit union to enter into an agreement with another licensee to form a banking network, subject to the approval of the commissioner, to facilitate the provision of cannabis banking services. The bill would require the department to adopt emergency regulations and would prohibit the department from issuing a license for these purposes prior to July 1, 2019, except as specified. The bill would require the department to provide a specified report to the Senate Committee on Banking and Financial Institutions and the Senate Committee on Governance and Finance. The bill would require a cannabis limited charter bank or credit union to adopt policies and practices to achieve the principles and goals outlined in the federal Bank Secrecy Act and cooperate with the federal Financial Crimes Enforcement Network. The bill would prohibit a cannabis limited charter bank or credit union from engaging in banking activity with any other financial institution that lacks a limited purpose charter issued under these provisions. The bill would prescribe a framework for the administration of its provisions. The bill would also make a statement of legislative findings. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. August 16 hearing: Held in committee and under submission.

  2. August 8 set for first hearing. Placed on APPR. suspense file.

  3. From committee: Do pass and re-refer to Com. on APPR. (Ayes 17. Noes 2.) (June 26). Re-referred to Com. on APPR.

  4. From committee: Do pass and re-refer to Com. on B. & P. (Ayes 10. Noes 0.) (June 18). Re-referred to Com. on B. & P.

  5. Referred to Coms. on B. & F. and B. & P.

  6. In Assembly. Read first time. Held at Desk.

  7. Read third time. Passed. (Ayes 32. Noes 6. Page 4400.) Ordered to the Assembly.

  8. Read second time. Ordered to third reading.

  9. Read second time and amended. Ordered to second reading.

  10. From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4299.) (May 25).

  11. Set for hearing May 25.

  12. May 22 hearing: Placed on APPR. suspense file.

  13. Set for hearing May 22.

  14. Read second time and amended. Re-referred to Com. on APPR.

  15. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1. Page 4810.) (April 25).

  16. Set for hearing April 25.

  17. From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 7. Noes 0. Page 4744.) (April 18). Re-referred to Com. on GOV. & F.

  18. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

  19. Set for hearing April 18.

  20. Re-referred to Coms. on B. & F.I. and GOV. & F.

  21. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  22. Referred to Com. on RLS.

  23. From printer. May be acted upon on or after February 25.

  24. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Bonta · Cosponsor
  • Bradford · Cosponsor
  • Galgiani · Cosponsor
  • Hertzberg · Primary
  • Jones-Sawyer · Cosponsor
  • Tom Lackey · Cosponsor
  • McCarty · Cosponsor
  • Moorlach · Cosponsor
  • Wieckowski · Cosponsor
  • Scott D. Wiener · Cosponsor

Sponsorship breakdown

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1 sponsors · 9 co-sponsors · 112 not signed on · 1 voted No

Sponsors (1)

  • Hertzberg

Co-sponsors (9)

Not signed on (112)

112 members have not signed on to this bill.

Show all 112 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass and be re-referred to the Committee on [Appropriations]

Passed 17 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12200
Democratic 4000
Republican 1000
Total 17200
% of votes cast 89%11%0%0%
How each member voted (19)
Member Party Vote
Bloom — Yea
Obernolte — Yea
Eggman — Yea
Cunningham — Yea
Holden — Yea
Chiu — Yea
Fong — Nay
Baker — Yea
Low — Yea
McCarty — Yea
Medina — Yea
Mullin — Yea
Ting — Yea
Voepel — Nay
Arambula, Joaquin Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Chen, Phillip Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Business and Professions]

Passed 10 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democratic 4000
Republican 1001
Total 10001
% of votes cast 91%0%0%9%
How each member voted (11)
Member Party Vote
Acosta — Yea
Weber — Yea
Gonzalez Fletcher — Yea
Burke — Yea
Mark Stone — Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Grayson, Timothy S. Democratic Yea
Limón, Monique Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting

Official roll call →

3rd Reading SB930 Hertzberg et al.

Passed 32 Yea · 6 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 28501
Democratic 4100
Total 32601
% of votes cast 82%15%0%3%
How each member voted (39)
Member Party Vote
Bradford — Yea
Hill — Yea
Hueso — Yea
Monning — Yea
Moorlach — Yea
Pan — Yea
Wieckowski — Yea
Glazer — Yea
Hertzberg — Yea
Lara — Yea
Roth — Yea
Allen — Yea
Portantino — Yea
Atkins — Yea
Mitchell — Yea
Fuller — Nay
Cannella — Yea
De León — Not Voting
Galgiani — Yea
Hernandez — Yea
Leyva — Yea
Anderson — Nay
Bates — Nay
Beall — Yea
Dodd — Yea
Morrell — Nay
Newman — Yea
Nielsen — Nay
Skinner — Yea
Vidak — Yea
Wilk — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Mark Stone — Yea
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Do pass as amended

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4200
Democratic 1000
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Bates — Nay
Beall — Yea
Bradford — Yea
Nielsen — Nay
Hill — Yea
Lara — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Bates — Yea
Nielsen — Yea
Hill — Yea
Beall — Yea
Bradford — Yea
Lara — Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

finance labor agriculture
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Frequently asked questions

What does SB 930 do?
(1) Existing law, the Financial Institutions Law, regulates the activities of various financial entities, including commercial banks, industrial banks, trust companies, credit unions, and savings and loan associations. The Banking Law defines and regulates state banks and commits the enforcement of banking laws to the Commissioner of Business Oversight. The California Credit Union Law provides for the licensure and regulation of credit unions by the Commissioner of Business Oversight and makes a willful violation of that law a crime. The Control, Regulate and Tax Adult Use of Marijuana Act of 2016, an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under the act to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act, among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. This bill would create the Cannabis Limited Charter Banking and Credit Union Law, to be administered by the Commissioner of Business Oversight and the Department of Business Oversight. The bill would create the Cannabis Limited Charter Bank and Credit Union Advisory Board and specify its composition, to include the Treasurer, the Controller, and the Chief of the Bureau of Cannabis Control, and commit to it the general responsibility for ensuring that this law functions in a safe and efficient way. The bill would prescribe the powers and duties of the board, including reviewing department enforcement reports, holding meetings that would be open to public comment, and issuing its own recommendations, which would be submitted to the Legislature and the Governor. The board would also be required to provide guidance on specified investment activities. The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing limited banking services, as defined, to cannabis businesses. The bill would require a person who desires to be licensed as a cannabis limited charter bank or credit union to submit an application to the department, and would require that person to elect to form under either the Banking Law or the California Credit Union Law. The bill would authorize the department to charge an applicant for a cannabis limited charter bank or credit union license a reasonable fee. The bill would require a licensee to comply with all requirements in the Financial Institutions Law, and either the Banking Law or the California Credit Union Law, as applicable, except to the extent that any requirement of those laws are inconsistent with a provision of the Cannabis Limited Charter Banking and Union Law. By expanding the application of the California Credit Union Law, a willful violation of which is a crime, the bill would impose a state-mandated local program. This bill would authorize a cannabis limited charter bank or credit union to issue to an account holder special purpose checks that would be valid for only specified purposes. The bill would authorize a cannabis limited charter bank or credit union to cash the checks it has issued, including those presented by parties that are not account holders, as specified. The bill would permit these checks to be used for the payment of state and local fees and taxes, payment of rent on property leased by, or on behalf of, the account holder's cannabis business, payment of vendors physically located in California, as specified, and the purchase of state and local bonds, as specified. The bill would provide that a person or entity is not required to accept these checks. The bill would require a cannabis limited charter bank or credit union to obtain and maintain insurance at all times that it is engaged in business, subject to certain requirements including that the insurance be in an amount acceptable to the commissioner. The bill would authorize a cannabis limited charter bank or credit union to charge fees for its banking services, and would authorize the commissioner, if requested by any person or whenever the commissioner deems appropriate, to review any fee charged. The bill would require a cannabis limited charter bank and credit union to provide the commissioner with a specified fee schedule, which information the department would be required to compile and post information on its Internet Web site. The bill would authorize a cannabis limited charter bank or credit union to enter into an agreement with another licensee to form a banking network, subject to the approval of the commissioner, to facilitate the provision of cannabis banking services. The bill would require the department to adopt emergency regulations and would prohibit the department from issuing a license for these purposes prior to July 1, 2019, except as specified. The bill would require the department to provide a specified report to the Senate Committee on Banking and Financial Institutions and the Senate Committee on Governance and Finance. The bill would require a cannabis limited charter bank or credit union to adopt policies and practices to achieve the principles and goals outlined in the federal Bank Secrecy Act and cooperate with the federal Financial Crimes Enforcement Network. The bill would prohibit a cannabis limited charter bank or credit union from engaging in banking activity with any other financial institution that lacks a limited purpose charter issued under these provisions. The bill would prescribe a framework for the administration of its provisions. The bill would also make a statement of legislative findings. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors SB 930?
SB 930 is sponsored by Bonta, Bradford, Galgiani, Hertzberg, Jones-Sawyer, Lackey, Tom (Republican), McCarty, Moorlach, Wieckowski, and Wiener, Scott D. (Democratic).
What is the current status of SB 930?
This bill died with 2017-2018 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 930?
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