California Cannabis Authorities Receive Approval for Regulations to Facilitate Financial Services for Cannabis Businesses
PRESS RELEASE – The Office of Administrative Law (OAL) approved the proposed emergency regulations, 2021-0122-01E, to implement processes for cannabis businesses to authorize release of information to financial institutions.
The regulations were filed with the Secretary of State on Feb. 1, 2021, and are now in effect.
The state cannabis licensing authorities have developed two forms to implement these regulations. The same forms are being used by all three state cannabis licensing authorities, streamlining the process for licensees and financial institutions:
- Licensee Authorization for Release of Information Form – This form may be used by licensees to authorize a financial institution to receive information or to withdraw a previously provided authorization.
- Financial Institution Request Form – This form may be used by a financial institution to request licensee information after the licensee has provided authorization.
Completed forms should be sent via email to CalCannabis@cdfa.ca.gov or by mail at the following address:
California Department of Food and Agriculture
CalCannabis Cultivation Licensing
1220 N Street
Sacramento, CA 95814
The adopted regulations are intended to facilitate greater access to financial services for licensed cannabis businesses that face challenges obtaining banking, insurance, and other financial services commonly available to other businesses. By reducing the burden of providing financial services to cannabis businesses, more financial institutions may be willing to provide services, thereby reducing the need to keep cash on hand and improving public safety.