May 27, 2020

May 26, 2020

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Marijuana Bank Legislation On Hold But May Take Effect Next Year

Last January, I wrote about Senator Robert Hertzberg's introduction of a bill, SB 51, that would authorize the licensing and regulation of cannabis limited charter banks and credit unions under the oversight of the Commissioner of Business Oversight.  The Senate passed the bill on a 36 - 1 vote in May.  Over the summer, it attracted only one no vote in three separate Assembly committee votes.  Thus, SB 51 seemed on the verge of enactment last week when the current legislative session ended.  The Assembly never voted on the bill, however, because the author pulled the vote back, saying "If we’re going to do this, we have to do it right".  

Senator Hertzberg has said that he will continue to move the bill forward when the legislature reconvenes next January.  Because the bill contains an urgency clause, it could become law and take effect in 2020.  Cal. Const. Art. IV, Sec. 8.

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About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Paul Bishop is a partner in Allen Matkins' Corporate and Securities practice group, and works out of the Orange County office. He represents clients in a wide range of corporate transactions, including public and private securities offerings of debt and equity, mergers and acquisitions, proxy contests and tender offers, corporate governance matters and federal and state securities laws (including the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act), investment adviser, financial services regulation, and California administrative law. He regularly advises clients...