U.S. lawmakers in a House committee approved a bill that would grant federal protection for banking and financial institutions serving marijuana dispensaries and ancillary businesses. Los Angeles cannabis business lawyers recognize this paves the way for wider discussion in Congress. For California marijuana businesses, this could be a major step toward physical and financial security.
Why Cash Sales Are Problematic for California Cannabis Companies
Conducting all-cash transactions poses potential risks by making companies a target of robberies, forcing investment in extensive security for on-site sales and delivery personnel. There is also greater risk of accounting errors and audits – a very uncomfortable place for any cannabis owner considering the IRS is a federal agency and, despite California’s approval of the operations, the drug remains illegal under federal law.
The U.S. House Financial Services Committee approved the measure 45-15, just after amending it slightly to extend further protection to insurance companies and also to allow easier access for women and minorities seeking to stake a claim in the industry. Continue reading