Thor Benson / Cannabis News Box Contributor

Everyone in the cannabis world knows the industry has a banking problem. Since cannabis remains illegal at the federal level, federally-regulated banks are largely refusing to work with cannabis companies. That means the industry runs on cash, which means robberies are a constant concern. With the biggest state to legalize social use cannabis so far, California, about to begin sales, lawmakers in the state are working hard to solve this major problem.

Lawmakers in California are trying to cut a deal with banks and credit union so cannabis businesses can be served. The Los Angeles times reports “officials in Gov. Jerry Brown’s administration have quietly met with representatives of 65 banks and credit unions over the past few weeks” to talk about creating a network of banks cannabis businesses could rely on.

How concerned are emerging cannabis business owners with this issue? Pretty concerned, according to Hezekiah Allen, executive director of the California Growers Association.

“It’s definitely a top three concern for our members,” Allen said. He said politicians are even more worried, because they’re in charge of maintaining public safety.

“Descheduling cannabis is the only solution to all of these problems,” Allen said. He said he’d be okay with Congress passing a bill to solve the banking problem, but descheduling is a better solution.

“I think there are some steps the state can take to increase banking access, but ultimately real solutions are going to come at the federal level,” Allen said. “One thing we need to be really cautious about with these half-way solutions or bandaid solutions is that we don’t want to end up in a situation where cannabis businesses have disparate access to banking.”

He said he can imagine banking services being done in a way where they’re too expensive to use for smaller cannabis businesses.

One reason trying to fix the banking at the state level concerns cannabis business owners is that Attorney General Jeff Sessions appears ready to crack down on legal cannabis, and trying to bank locally without federal approval could put business owners at risk.

“A lot of business owners feel like even if they had access to banking that putting that much money in a bank makes it easier to seize and puts you on a watch list,” Allen said. “The federal dynamic is going to impact the behavior within the business community. It’s also a huge factor in dictating the banks’ behavior. Let’s be clear: It is not illegal for banks to service regulated, licensed cannabis businesses. They just choose not to.”