THIRD IN BANKING AND FINANCE
INSTITUTE FINANCIAL INSTITUTION
BEING TO ORDER MONSTER TERRY
PLEASE CALL THE ROLL.
SENATOR RECORD HERE.
THEY'RE HERE DRAWS [inaudible]
YEAH WEST.
LESSON HERE ROUND.
HERE ROUND HERE FORTINO.
IS A QUORUM IS PRESENT WE HAVE
ONE ITEM BEFORE TODAY BUT BEFORE
WE DO THAT WE WILL ADOPT THE
COMMITTEE RULES -- SHOW -- I'M
SECRETARY PLEASE READ RULES.
SENATOR BRADFORD HI.
I CHANG.
COMING I DON'T MIND.
I DURAZO.
RATHER I WAS SO.
SO I MORALE.
HI.
I FORTINO [inaudible] FIVE OKAY
THAT MEASURE IT PASSES WILL
LEAVE THE ROLE OPEN FOR THOSE
ABSENT MEMBERS TO ADD ON AS
STATED WE HAVE ONE ITEM BEFORE
TODAY AS THREE FIFTY ONE BY
SENATOR HERTZBERG.
TO MEASURE THAT WE HAVE HEARD
BUT FIRST LET ME WELCOME THE NEW
MEMBERS. TO THE COMMITTEE --
SENATOR ASOS CENTER CAP JARL
THANK YOU.
FOR BEING HERE AND SENATOR
HERTZBERG WHEN YOU'RE READY YOU
MAY PRESENT AS PROOF IF YOU WANT
AND WELCOME I'M TREASURE.
THANK YOU VERY MUCH IN HIS CHAIR
OF A THERE'S A COUPLE OF CHANGES
IN THIS BILL FROM WHAT IT WAS
LAST YEAR BUT THE SAME MOST
SIGNIFICANT IMPACTFUL CHANGE.
IS THAT LAST YEAR HAD A
DIFFERENT SPONSOR.
LAST YEAR MY SPONSOR WAS A
MEMBER OF THE BOARD OF
EQUALIZATION NOW MY SPONSOR IS
THE TREASURER OF THE STATE OF
CALIFORNIA IN THE SAME PERSON
FIONA MAW.
I READ THAT YOU CAN PROVE JUST
THE FEELING OF AWE THE ORIGINAL.
SO JUST REAL QUICKLY A PERFECTLY
FOR THE NEW MEMBERS OF THE
COMMITTEE.
HERE'S THE PROBLEM THAT WE FACE
THAT WE'RE TRYING TO SOLVE.
BASICALLY BECAUSE THE FEDERAL
GOVERNMENT SAYS THAT MARIJUANA
IS A SCHEDULE ONE DRUG YOU CAN'T
TAKE THE PROCEEDS AND PUT IT IN
THE BANK BECAUSE IT'S CONSIDERED.
SO NOW YOU'VE GOT A BANK THAT'S
PART OF THE FEDERAL SYSTEM THAT
DEALS WITH THE CLEARINGHOUSE
ALIKE OR FEDERAL RESERVE
INSURANCE.
AND IT'S IT'S LIKE TAKING
ILLEGAL DRUG MONEY SO THEY CAN'T
DO IT SO WE HAVE -- I DON'T KNOW
THIS FOR FACT STANDING TOTALLY
MISTER MCGUIRE WHO SERVES THE
NORTHERN PART OF THE STATE TOLD
ME THAT HE THINKS THERE'S TWO
BILLION DOLLARS BURIED IN
BARRELS UP IN NORTHERN
CALIFORNIA.
FROM THIS BUSINESS BUT CERTAINLY
IS A LOT OF CASH I MET A
GENTLEMAN WHO CAME TO MY OFFICE
IS IS HE'S GOT A TRACTOR TRAILER
WITH FORTY MILLION DOLLARS CASH
IT.
YOU KNOW DON'T KNOW WHAT TO DO
WITH IT SO THE QUESTION IS AS A
GOVERNMENT WHAT DO WE DO IN OUR
GOVERNMENT TO TRY TO ON THE ONE
HAND TAKE WITH THE VOTERS HAVE
SAID BY A WIDE MARGIN.
INSTEAD WHAT WE WANT NO ONE TO
BE LEGAL.
AND IT'S INCONSISTENT WITH THE
WITH THE FEDERAL GOVERNMENT'S
ROLE AND HOW DO WE DEAL WITH THE
MONEY.
HOW DO WE PAY PEOPLE HOW DO WE
PROVIDE SAFETY FOR WORKERS IN
THE SYSTEM HOW DOES THE
GOVERNMENT?
GET GET ITS TAX MONEY HOW AS THE
TREASURE WILL TELL YOU WE CREATE
RECORDS AND THE LIKE SO WE CAME
UP WITH THIS KIND OF HYBRID
APPROACH WHICH WE CALL A LIMITED
CHARTER BANK.
IN ESSENCE WHAT IT IS IS THAT
YOU CAN ONLY USE IT FOR A COUPLE
OF PURPOSES IT DOESN'T SOLVE ALL
THE PROBLEMS BUT IT SOLVES PART
OF THE PROBLEMS.
AND SO IF YOU LOOK AT THIS CHECK
THE IDEA IS YOU OPEN A BANK
ACCOUNT.
ARM IN EUROPE ML ON A COMPANY
WHATEVER AD YOU CAN PUT YOUR
MONEY INTO THAT PLACE THERE'S
NINE HUNDRED EIGHTY TWO BANK
BRANCHES AROUND CALIFORNIA
THEY'RE EMPTY THAT ARE CLOSE. TO
THE IDEA OF JUST RENTING THOSE
FOR NEW COMPANIES THAT WANT TO
BE BANKS IS PRETTY SIMPLE
THERE'S IT BE PRETTY EASY SHE'S
NOT REALLY EXPENSIVE GONNA TAKE
A LOT OF TIME.
THE IDEA IS THAT MOVE URGENTLY
THIS BILL MOVED ALL THE WAY
THROUGH THE LEGISLATURE LAST
TIME AND THE NUMBER OF PEOPLE ON
THIS COMMITTEE AND ITS CHAIRMAN
JOINED ON AS AS A CO AUTHOR IS
PART OF THIS.
BUT THE GOVERNOR'S OFFICE
BASICALLY FROM EVERYTHING I CAN
DETERMINE INTERNALLY.
COMMUNICATED WITH THE OTHER
HOUSE AND TOLD THEM AN
APPROPRIATIONS COMMITTEE I WAS
TOLD TO HOLD THE BILL BECAUSE
THEY DIDN'T WANT TO DEAL WITH
THAT THEY FELT THAT THE
REGULATORY SIDE SOME OF THE
OTHER ISSUES WOULD BE TO
CHALLENGE.
AND I'M I DON'T DENY THAT
THEY'RE CHALLENGING.
BUT THE FLIP SIDE IS WE SEE
STORIES OF PEOPLE GETTING KILLED
AND MURDERED.
IT AND THE LIKE BECAUSE PEOPLE
ARE CARRYING CASH IT'S JUST
CREATES A HUGE PROBLEM SO WE'RE
TRYING TO CREATE UNTIL THE
FEDERAL GOVERNMENT ACTUALLY
LEGALIZES THE STUFF.
A PLAUSIBLE IN A ROOM
INTERREGNUM IF YOU WILL AND
ABILITY TO HOLD THIS IN THIS
TWILIGHT ZONE THAT WORKS.
AND SO THE CONCEPT IS WHEN YOU
GO TO A NORMAL BANK YOU KNOW YOU
PUT YOUR MONEY IN AND THEY PAY
THIS MUCH INTEREST DOWN HERE AND
THEY LANDED OUT HERE AND THEY
MAKE THEIR PROFIT ON INTEREST.
YOU CAN'T LEND MONEY HERE SO
WITH THE WAY THIS BANK ID IS A
C. IDEAS IF YOU OPEN AN ACCOUNT
OF MY CAR TO THREE THOUSAND
BUCKS A MONTH TO HAVE AN ACCOUNT.
WITH US LESS MONEY THAT WOULD
COST YOU TO HOLD THE MONEY PAY
FOR SECURITY DEAL WITH ALL THE
STUFF.
AND THEN WHAT WE WANT TO DO TO
BE ABLE TO PUT LESS CASH IN THE
SYSTEM IS THAT PEOPLE ARE PART
OF THE SYSTEM CAN USE A CHECK.
OUT WHAT WE CALL THEM THE CHECK
IT HERE'S AN EXAMPLE BECAUSE
WHAT WE'RE SAYING ON THE CHECK
IS THIS CHECK IS ISSUED.
BY THIS BANK DEPOSITS ARE CASH
ONLY LIMITED CHARTER BANK OR
CREDIT UNION AND NOBODY ELSE YOU
COULDN'T TAKE THIS BANK AND SAY
PUT IT. TO TO THE TO ME THIS
CHECK AND PUT IT IN CHASE OR
BANK OF AMERICA ONLY YOUR BANK
OR ANOTHER BANK SO NOW THERE'S
FOUR AREAS WE LOOK TO FIRST.
IF YOUR LANDLORD LANDLORD HAS
THREE TENANTS EACH ONE'S PAYING
TWENTY FIVE THOUSAND A MONTH ALL
THE SO THEY BRING IN TWENTY FIVE
THOUSAND ON THE FIRST OF THE
MONTH NOW THEY CAN WRITE A CHECK.
AND TAKE THE MONEY NOW THE
LANDLORD TO DO TWO THINGS ONE
THE LAND I CAN OPEN ACCOUNT AT
THE BANK.
OKAY OR TWO CAN GO TAKE WHEN
THEY WHEN THEY HAVE A PROPER
ABILITY TO DO IT TAKE ALL THE
CHECKS THE BANK CASH THEM AND
THEN HAVE THEM OR HAVE THE BANKS
WOULD ARMORED CAR TAKE THEM TO
THEIR BANK.
SECOND.
I'M A PLUMBER.
I HAVE -- I'M PROVIDING --
SERVICES TO A BUNCH OF THESE
COMPANIES THAT DO YOU KNOW D
THE PIPELINES FOR THE PLANTS
RIGHT.
IS IT MY DRIVER HAVE TO PICK UP
CASH I GET PAID FOR BY CHECK
AGAIN OPEN AN ACCOUNT HE JUST
MANAGEMENT OF RISK AND THE LIKE.
THIRD -- THE THE IDEA OF
GOVERNMENTS WHICH IS THE MOST
IMPORTANT WE SAW LAST YEAR
NUMBER OF BUDGET CHANGE
PROPOSALS I MET WITH THE HEAD OF
THE E. D. MR HENNING.
TELLING ME HOW HARD IT IS TO YOU
KNOW HOW LONG IT TAKES TO COUNT
THE CASH.
THEY GOT UP WITH BULLET PROOF
WINDOWS AND THEY GOT TO PAY THE
HIGH WHICH OLD ACCOUNT TO MOVE
THE MONEY NOW THE SUDDEN.
YOU CAN PAY THE MONEY TO TO TO
TO YOUR AGENCY'S WHETHER TO
STATE AGENCY OR WHATEVER WHICH
HOPEFULLY RESULTS IN US GETTING
MORE REVENUE TO PAY.
AND LASTLY ALTHOUGH WE PUT THIS
BACK IN THE IDEA OF TO INVEST
WITH THE TREASURER'S OFFICE IF
YOU HAVE MONEY IN THE BANK AND
YOU WANT TO GET.
INTEREST WELL YOU ONLY INVESTING
pSOLUTION SO IT'S CLOSE YOU ONLY
CAN TRADE WITH YOURSELF.
AND THE SECOND THING IS YOU HAVE
TO A PRIVATE INSURANCE CAN'T USE
FDIC YOU INSURE THE DEALS AND
WE'VE TALKED SOME INSURERS ARE
WILLING TO DO THAT.
SO THE IDEA IS TO CREATE THIS
LIMITED CHARTER BANK AND THEN
ULTIMATELY WHAT WE DID THE ONLY
OTHER CHANGE OTHER THAN THAT WE
HAVE THE TREASURE NOW.
IS WE ADDED THE SUNSET PROVISION
OF THE RECOMMENDATION OF THE
BANKING COMMISSION ON THE
DEPARTMENT'S COLUMN OLD GUY
REMEMBER THE OLD NAMES.
WHO'S THAT WAS VERY SMART THEY
DID WAS A SUNSET PROVISION
MEANING THAT ONCE THE FEDERAL
GOVERNMENT DECIDES TO DO THIS.
WE'VE GOT A SHOW A WINDOW THAT
THESE BANKS HAVE TO THEN BECOME
REGULAR RISE BANKS THEY CAN'T BE
THESE LIMITED CHARTERED BANKS
WHICH MAKES PERFECT SENSE THERE
WERE ONLY INTENDED TO BE A
BRIDGE.
AND THE LAST THING ABOUT IT IS.
THESE ARE NOT MORE GOVERNMENT'S
GONNA GO AND HAVE TO OPEN A BANK
AND STUFF LIKE THAT THEIR
PRIVATE INVESTORS AND SO THE
IDEA BEHIND CREATING LIMITED
CHARTER BANK WAS.
SOMEBODY COMES UP IN PACE WITH
SOME ACROSS FIVE MILLION DOLLARS
TO START A BANK THE INVESTMENT
BANK THEY GET. THREE OUR
CUSTOMERS FIVE HUNDRED CUSTOMERS
THEY GOT A GOOD ACCOUNT AND THEN
WHAT'S GOING TO HAPPEN IS THE
BIG ENTITIES GONNA COME IN BY A
MOB.
AND THE KEY THE GENIUS OF THIS
THING THAT I THINK THAT'S SO
IMPORTANT A SIDE WHICH THE
TREASURES GONNA TALK ABOUT OF%
KEEPING RECORDS.
IS THAT WE DIDN'T INVENT
SOMETHING BRAND NEW.
WE BUILT THIS WITHIN THE
FRAMEWORK OF BANKS SO FOR THE
SHOP OCCASION STAYS THE SAME
BOARD OF DIRECTORS OBLIGATION
STAYS THE SAME AUDITING
PROVISIONS STAY THE SAME.
EVERYTHING ELSE WAS WHOLE BODY
OF LAW THAT'S BEEN DEVELOPED WE
COULD HAVE WRITTEN THE WHOLE
THING AGAIN BUT WE PUT WE
BASICALLY INCORPORATED BY
REFERENCE TO THAT YOU GET
TREATED LIKE A BANK.
SO THAT THEN WHEN THE RECORDS
AND HOW IT'S BEING TAKEN CARE OF
AND ALL OF A SUDDEN CHART A
CHASE COMES OVER AND SAYS THEY
WANT TO BUY.
SAY THE COMMA EURO DANK BANKYOU
KNOW AND A YOU YOU GOT -- TWO
BILLION DOLLARS IN DEPOSITS THEY
WANT TO BUY THIS IT'S EASY FOR
THEM TO BUY BECAUSE THEY
UNDERSTAND THE SYSTEM BECAUSE
ALREADY BANKING.
THE IDEA WAS GREAT THE SHORT
TERM SOLUTION. TO IT THE FACT
THE MOST NUMBER OF PEOPLE IN A
WAY THAT WORKS IF TEN DIFFERENT
BANKS COME TOGETHER THEY CAN
HAVE AN AGREEMENT AMONG
THEMSELVES TO TRADE CHECKS.
YOU KNOW AND THEN THE LAST THING
OBVIOUSLY IS IF SOMEBODY IS A
CUSTOMER FOR MARIJUANA THEY CAN
OPEN UP AN ACCOUNT YOUR BANK PUT
A THOUSAND AND GET A CREDIT CARD.
AND THEN THEY CAN USE IT AT YOUR
PLACE AND THEN ONLY
ELECTRONICALLY TRANSFERS AGAIN.
D. RISKING CURRY GENERAL PUBLIC
SAFETY.
LESS COSTS.
EASY TO ROLL INTO A LARGER
PICTURE BETTER RECORDS WITH THE
TREASURE WE'LL TALK ABOUT ALL
TURN OVER HERE NOW.
THANK YOU MISTER CHAIRMAN AND
MEMBERS AND CENTER HURTS FOR
GLAD TO BE BACK HERE AGAIN
TALKING ABOUT ONE OF MY FAVORITE
TOPICS -- WHEN I WAS ON THE
STATE BOARD OF EQUALIZATION -- I
FOUND OUT THAT WE STARTED TRYING
TO COLLECT CANNABIS REVENUES --
BACK.
STARTING IN NINETEEN NINETY SIX
BUT IT WAS REALLY INCONSISTENT
BECAUSE THERE WEREN'T A LOT OF
FOLKS -- REGISTERING TAKING UP
THEIR SALES TAX PERMITS --
UNDERSTANDING HOW TO EVEN --
COMPLY AND SO WE SPENT A BETTER
OF TWO YEARS GOING AROUND THE
STATE TRYING TO ADVISE.
OF FOLKS WHO HAD A DISPENSARY
ABOUT THEIR OBLIGATION TO FILE.
FOR THEIR SALES TAX PERMITS AND
ACTUALLY HAVE TO FILE EITHER
QUARTERLY OR MONTHLY -- THE ONES
THAT DID NOT -- THE WAY WE WOULD
AUDIT THEM IS WE WOULD STAND
OUTSIDE OF THE DISPENSARY.
COUPLE DAYS OF THE MONTH I'M
SUPPOSED TO BE THREE DAYS OF THE
MONTH AND THE COUNT HOW MANY
PEOPLE WENT IN WE WOULD.
ASSESS A DOLLAR AVERAGE DOLLAR
AMOUNT MAYBE SIXTY DOLLARS PER
PERSON WE WOULD EXTRAPOLATE BACK
THREE YEARS ASSESSED INTEREST
AND PENALTIES AND SEND THEM A
BILL AND WE WOULD HOPE THAT THEY
WOULD PAY.
OUT NOT VERY EFFICIENT SO IT
STARTED ME DOWN THIS ROAD OF WHY
DON'T THEY HAVE BANKING -- VERY
HARD TO AUDIT.
CASH BUSINESSES AS WE ALL KNOW --
BUT RIGHT NOW MANY OF THESE
BUSINESSES DON'T HAVE A BANK
ACCOUNT SO THEY OPERATE AN ALL
CASH -- THEY DON'T GIVE US
RECORDS AS AUDITORS WHEN WE GO
IN AND AUDIT THEM NECESSARILY --
BUT BE.
PROBLEM IS THE SAFETY
REQUIREMENTS OF MANY OF THESE
FOLKS WHO DID PAY THEIR SALES
TAXES WOULD COME TO OUR BOARD OF
EQUALIZATION OFFICES WITH.
DUFFEL BAG SOMETIMES SUITCASES
OF CASH -- IT WASN'T SAFE IT WAS
INEFFICIENT FOR OUR EMPLOYEES TO
BE COUNTING.
ON THIS HIGH AMOUNT OF CASH AND
NOW WITH THE PASSAGE OF PROP
SIXTY FOUR IT IS EXACERBATING.
THE SITUATION BECAUSE NOT ONLY
ARE THEY SUPPOSED TO PAY THEIR
SALES TAXES BUT DISTRIBUTION TAX
CULTIVATION TAX.
AS WELL AS ANY OTHER LOCAL TAXES
THAT MAY BE ASSESSED ON THIS
INDUSTRY SO WE THINK THIS IS A
GREAT A TEMPORARY SOLUTION --
WENT BACK TO DC TO TESTIFY
BEFORE THE BANKING HOUSE
SUBCOMMITTEE ABOUT A MONTH AGO --
BILLS ARE STARTING TO MOVE A
LITTLE BIT LIKE THE PROBLEM
UNDER BILL -- BUT IT'S GOING TO
BE SLOW GOING SO -- WE
DEFINITELY NEED A SOLUTION
TEMPER SOLUTION UNTIL THE BANKS
OPEN UP -- THEIR DOORS TO THIS
INDUSTRY.
THANK YOU.
THANK YOU MISTER CHAIRMAN AND
MEMBERS AMY JENKINS ON BEHALF OF
THE CALIFORNIA CANNABIS INDUSTRY
ASSOCIATION AND NUMEROUS
INDIVIDUAL CLIENTS -- TO
CONTINUE TO BE CHALLENGED BY THE
LACK OF ACCESS TO BANKING IN
CALIFORNIA -- THE ASSOCIATION
HAS ABOUT FIVE HUNDRED MEMBERS
AND THIS IS GENERALLY ONE OF THE
TOP PRIORITIES THAT WE TALK
ABOUT CONSISTENTLY.
I WANT TO APPLAUD THE AUTHOR AND
TREASURE MA FOR CONTINUING TO
ADVOCATE AND WORK ON THIS ISSUE
WE WERE PLEASED TO JOIN THE
TREASURE IN DC -- WHEN SHE
PRESENTED TESTIMONY -- TO THE
HOUSE FINANCE COMMITTEE ON THIS
PARTICULAR ISSUE AND WE'RE VERY
APPRECIATIVE OF THE ON GOING
WORK THAT'S BEING DONE HERE --
JUST TO PUT IT IN PERSPECTIVE AS
YOU NOW AND AS THE TREASURE
LOOTED -- WE WE DO WE ARE THIS
THE SITUATION IS EXACERBATED
WITH THE PASSAGE OF SIXTY FOUR
AND ALL OF THE TAXES THAT THE
COMPLAINT CANNABIS INDUSTRY IS
REQUIRED TO PAY IN CALIFORNIA --
I WAS JUST SPEAKING TO A CLIENT
OF MINE WHO IS ALSO A CCA AND A
MEMBER IN THE AUDIENCE AND THEY
RE MET ABOUT A MILLION DOLLARS
IN CASH EVERY MONTH -- ADD TO
THE STATE IF YOU THINK ABOUT
THAT IT TRANSLATES TO OVER FIVE
HUNDRED THOUSAND TWENTY DOLLAR
BILLS IN THE YEAR -- IT TAKES AN
EXORBITANT AMOUNT OF TIME AND
ENERGY AND STAFF THEY BURN
THROUGH CASH COUNTING MACHINES I
THINK ABOUT SIX A MONTH.
AND SO ON IT'S A REAL TREMENDOUS
PROBLEM -- AND THAT IS COUPLED
WITH ALL OF THE PUBLIC SAFETY
CONCERNS THAT ALSO HAVE BEEN
CITED BY THE AUTHOR IN THE
STREET STATE TREASURER I HEAR
COUNTLESS INS INSTANCES WHERE --
THEY'VE BEEN FOLLOWED THERE HAS
BEEN THEFT A LOT OF IT IS
LARGELY UNREPORTED -- BUT THIS
IS INDEED A VERY VERY
SIGNIFICANT ISSUE FOR THE
INDUSTRY WHICH IS WHY WE'RE
PLEASED TO BE HERE TODAY AND
STRONGLY SUPPORT THIS BILL THANK
YOU.
THIS ISN'T.
STATE YOUR NAME YOUR
ORGANIZATION OUR MEMBERS TRUST
BUCKLEY ON BEHALF OF THE CITY OF
SACRAMENTO IN SUPPORT.
ALICIA PRIEGO HERE ON BEHALF OF
EASE AND SUPPORT.
OR SO I CAN ALSO ON BEHALF OF A
CITY OF SANTA MONICA AND SUPPORT.
MISTER CHAIR AND MEMBERS TRACY
STEVENS ON BEHALF OF NOR CAL
CANNABIS AND STRONG SUPPORT
THANK YOU. TEN MORE THAN
COMPLAINTS STRICTER FROM ORIGIN
HOUSE AND STRONG SUPPORT.
MORE INTERNET AGNETA CAN AS
BUSINESS ASSOCIATION IN SUPPORT.
LASHANDRA REPRESENTINGTHE CAL
ASIAN CHAMBER OF COMMERCE IN
SUPPORT.
THANK YOU ANY ADDITIONAL
WITNESSES AND SUPPORT.
WHEN THIS IS AN OPPOSITION
COMPORT?
SCENE NINE HAVE QUESTIONS BY THE
COMMITTEE [inaudible]
SENATOR RAZA.
TRYING TO UNDERSTAND HOW THIS
WOULD WORK BUT I TOTALLY AGREE
THAT WE NEED A MECHANISM AND WHO
KNOWS WHEN IT'S GONNA.
HAPPEN AT THAT THE FEDERAL
GOVERNMENT BUT I'M NOT QUITE
SURE HOW THIS WORKS IS
[inaudible]
SO.
IF I TAKE MY MONEY AS IT
CANNABIS BUSINESS AND I I WANT
TO PAY MY LANDLORD.
AS YOU SAID.
I'M GLAD TO BE A LANDMARK.
AND SO I WRITE A CHECK OUT RIGHT
FROM SUCH AND SUCH.
CREDIT YOU.
AND GIVE IT TO THE LANDLORD.
DOESN'T HE HAVE TO LIKE AGREE
THAT THIS IS A CREDIT UNION AND
THAT HIS BANK.
WILL.
ACCEPT IT AS WELL BECAUSE IT
SEEMS TO ME IS NOT JUST A MATTER
OF WHO WE GIVE IT.
TO BUT EACH OF THE INSTITUTIONS.
THAT ARE RELATED TO THAT SO THE
LANDLORD HAS HIS OWN BANK AND
GORE CREDIT UNION.
THE STATE HAS THEIR OWN BANK THE
VENDORS HAVE THEIR OWN BANK SO.
DON'T THEY ALL HAVE TO AGREE
THAT THIS IS UNACCEPTABLE --
INSTANT BANKING INSTITUTION
OTHERWISE IT DOESN'T WORK WELL
HERE LET'S LET'S TAKE A LOOK AT
LANDLORD PLACE OVER HERE -- IN
YOU KNOW IN HIS HUNDRED THOUSAND
SQUARE FOOT.
BUILDING YOU'RE PAYING A HUNDRED
THOUSAND A MONTH.
FOR AND ON THE YEAH EVEN YOU PAM
NORMALLY YOU'D YOU'D BRING IN
CASH OR YOU'D MEET HIM AT THE
BANK OR HIS REPRESENTATIVE AT
THE BANK AND YOU GIVE THE BANK
THE CASH IN THE BANK THE STATE
USED TO DO THAT WITH A LITTLE
RESET OF THE DESK.
YOU PAY THE TAXES THEY TURN
AROUND HANDS OF THE BANK YES
LANDLORD WAY SO HAS TO ACCEPT IT.
BUT LANDLORD WAY SO HE HAS ONLY
TWO OPTIONS. ONE IF YOU ACCEPT
YOUR CHECK RIGHT.
HE CAN GO TO YOUR BANK.
AT HIS CONVENIENCE THAT WAS A
TIME WHEN HE HAS A SECURITY
GUARD OR HE OURS AT A TRUCK CASH
THAT CHECK AT YOUR BANK.
GET THE HUNDRED THOUSAND DOLLARS
AND THEN PUT IT IN THE ARMORED
CAR OR THE TRUNK OF HIS CAR
EVERY CHOOSE TO DO IT AND TAKE
IT TO HIS BANK AND MAKE THE
DEPOSIT IT'S A CONVENIENCE. FOR
HIM AND HIS EMPLOYEES AND SAFETY
AND THE LIKE.
IF HE DOESN'T WANT TO TAKE IT HE
DOESN'T HAVE TO TAKE IT OKAY BUT
HE CAN'T DEPOSIT THIS INTO HIS
BANK BUT WHAT LANDLORD WAY SO
WE'LL PROBABLY DO.
IS LANDED WAY SO BECAUSE HE'S
GOT TEN CUSTOMERS LIKE YOU WHEN
HE GETS A MILLION DOLLARS A
MONTH.
HERE'S ONE HANDLING MUH CASH HE
GETS TEN CHECKS HE OPENS THOSE
ACCOUNT AT CABALLERO -- THE
CHARTER BANK AND THE PAUSES A
MILLION DOLLARS IN HER ACCOUNT
OKAY NOW IS THAT A MILLION
DOLLARS IN IN IN HER BANK.
SO WHAT DOES HE DO WITH THAT
MILLION HE CAN EITHER TAKE WHAT
HE WANTS TO BRING AN ARMORED CAR
FOR MANAGEMENT PURPOSES.
AND TAKE THAT MILLION FROM
COLONIAL BANK LIMITED CHARTER.
BANK AND TAKE IT TO BANK OF
AMERICA WHERE EVERY TAKES IT TO
OR WHAT YOU CAN DO IS.
YOU CAN SAY OKAY I'VE GOT A TAX
BILL OF A HUNDRED THOUSAND
DOLLARS I'M GONNA PAY TAXES WITH
IT.
I'M GONNA BY STATE FARM WITH IT
THAT'S TWO THOUSAND BILL I'M
GOING TO PAY.
SOME OTHER THINGS WITH IT NOW
ONLY HAVE SIX HUNDRED THOUSAND
LESS THAN A MINUTE TRANSFER THAT
IT'S A CONVENIENCE MECHANISM
THAT'S AN INNER ROOM DEAL THAT
WE'RE PROVIDING FOR PEOPLE WHO
ARE MANAGING THIS MUCH CASH.
AND FROM THE STATE STANDPOINT.
WE'RE REDUCING OUR EXPENSES
BECAUSE IT'S SO EXPENSIVE THEY
GOT A CASH LIKE WHEN YOU GET
THIS MONEY THE COMMITMENT THAT
CAT CAT LIKE THREE TIMES.
TAKES LIKE THREE EMPLOYEES TWO
DAYS TO COUNT THE MONEY AND THEN
YOU GOTTA HAVE A BULLET PROOF
STUFF AND EVERYTHING LIKE THAT.
SO IT'S A LOT BETTER AND ALSO
MAKES IT EASIER FOR PEOPLE TO
PAY THEIR BILLS SO IT'S NOT BY
ANY STRETCH OF IMAGINATION A
PERFECT SOLUTION.
IT'S A VERY SHORT TERM INTERIM
THING OF WHAT IS A HORRIBLE
SITUATION THAT'S THAT THAT I
THINK IS THE BEST WAY TO EXPLAIN
IT THAT'S OKAY.
THE THOUGHT.
YEAH I MEAN WE ANTICIPATE IF
THIS BILL GETS THE COVERS US
THAT THERE BE I DON'T KNOW TEN
TWENTY BANKS.
AROUND THE STATE THAT WOULD --
BE PART OF THIS NETWORK AND JUST
LIKE YOU KNOW JUST LIKE YOU'RE
WITH A NETWORK OF OF BANKSY'S
WOULD BE ALSO A NETWORK UNTIL.
THE BANKING INDUSTRY FULLY OPENS
UP.
AM I SURE [inaudible]
YOUR QUESTION -- MORROW.
I HAVE A QUESTION IF FARM
BECAUSE YOU KNOW FEDERAL LAWS
WERE.
BILL A CHALLENGE HERE IF THEY
DECIDE TO SOME.
SO YOU HAVE YOUR MONEY IN A BANK.
IN A FEDERAL GOVERNMENT IS THERE
ANY PROVISIONS IN YOUR BILL TO
PROTECT [inaudible]
A DEPOSITOR.
IN CASE THE FEDS COMMAND.
AND TRY TO SEIZE ASSETS EVEN.
MAYBE SEASON THE ASSETS OF
ANOTHER -- DEPOSITOR NOW BANK SO
THOSE ARE PROVISIONS IN THAT
BILL THAT GUARANTEES AND
PROTECTS YOUR GUY HIS MONEY BUT
THERE'S THERE'S TO PROVIDE A WAY
HOW COULD THERE BE -- PROVISIONS
TO PROTECT THOSE WHEN IT GOES
AGAINST FEDERAL LAW THAT'S THE
OKAY FIRST QUESTION IS WE'VE
NEGOTIATED WITH THE
COMPTROLLER'S OFFICE.
AND AS IT RELATES TO THE STATE'S
MONEY WE'VE CHARACTERIZED THAT
AS A TRUST FOR THE STATE'S MONEY
SO THE STATE OWNS A PIECE OF
THAT MONEY BECAUSE THE TAX
REVENUE.
SO WHAT WE DID WAS WE SAID THAT
THAT MONEY WE WROTE THE
PROVISIONS TO PROTECT THE
STATE'S INTERESTS RIGHT AND
GOVERNMENTS INTERESTS SO AT
LEAST.
OF THE MONEY THAT'S THERE LET'S
ASSUME IS A HUNDRED THOUSAND
LET'S ASSUME TWENTY THOUSAND OF
ITS STATE STUFF WE SOUGHT TO
PROTECT THAT THAT IS NOT THE THE
THERE MONEY IT BELONGS TO THE
STATES THAT'S A PIECE SECOND
PIECE.
IS THAT'S WHAT'S INSURANCE IS
ABOUT LITERALLY THE INSURANCE
INTERESTS OF EXPENSIVE I MEAN IN
COLORADO THESE YOU KNOW SOME
PEOPLE HAVE PHONY BANK ACCOUNTS
RIGHT THE USE MANAGEMENT
COMPANIES THESE ARE FRIENDS
CREDIT CARD.
ACCOUNTS THEY TRY.
TO BASICALLY JIMMY AROUND TO TRY
TO FIGURE OUT HOW TO AVOID THE
CASH THING BUT NONE OF IT'S
LEGAL IT'S REALLY CHALLENGING.
WE LOOK AT A WASHINGTON AT AT AT
AT AT AT AT COLORADO AT SOME OF
THE STATES THE WORKING ON THESE
THINGS.
AND IT'S GOING TO BE EXPENSIVE I
MEAN YOUR INSURANCE MAYBE TWO
THREE THOUSAND FOUR THOUSAND A
MONTH THE HOLD THE ACCOUNT.
PLUS YOU COULD BE TWO THREE
THOUSAND A MONTH TO KEEP THE
ACCOUNT SO AND THEN YOU COULD
CRUSH A HUNDRED DOLLARS A CHECK.
SO YOU'RE PAYING YOUR FEET COULD
BE SEVEN EIGHT THOUSAND A MONTH --
TO HOLD A CHECKING ACCOUNT BUT
THAT'S LESS THAN ALL THE OTHER
INSURANCES AND EXPENSES YOU'RE
SPENDING TO BE ABLE -- TO MANAGE
THAT CASH AND ARE THEY REQUIRED.
BY THE INSURANCE YES.
YES IN THE FIELD.
YES.
AND THE INSURANCE COMMISSIONER
DAVE JONES -- STARTED OPENING UP --
YOU KNOW DIFFERENT TYPES OF
INSURANCE -- TO TO HELP THESE
BUSINESSES.
HI ALL FIRST LET ME THANK YOU
SENATOR HER TO BERGEN ENTREGAR
MALL FOR THIS MEASURE BEFORE'S.
BUT AS WE'VE HEARD IT'S NOT.
A PERFECT SYSTEM FAR FROM IT.
AND WE'RE TRYING TO ADDRESS.
THE NEED TO ALLEVIATE HANDLING
CASH BUT AT THE END OF THE DAY.
YOUR DEPOSITORY IF IT'S NOT THIS
INSTITUTION WILL STILL BE
HANDLING CASH JUST AS THE STATE
HANDLES CASH ON A DAILY BASIS SO.
I JUST NEED TO UNDERSTAND IF WE
CAN DO IT AS A STATE ENTITY.
WE GO AND DEPOSIT THAT MONEY
WHICH WE RECEIVE VERSES TO
SCRIPT OR CASH INTO.
THE STATE.
COUNT WHICH WILL BE CASH WHY
CAN'T INDIVIDU BUSINESS
OPERATORS DO THE SAME BECAUSE IN
ESSENCE.
WERE DEPOSITING THE SAME
SCHEDULE ONE MONEY THAT'S
SUPPOSED TO BE.
SUPPOSEDLY IS ILLEGAL.
GOOD QUESTION THAT WAS MY
QUESTION FIVE YEARS AGO AT A
HEARING AND I SAID WHY DOES THE
STATE.
BOARD OF EQUALIZATION -- WHY ARE
THEY ALLOWED TO EVEN DEPOSIT THE
CASH WELL THE ANSWER IS IT'S CO
MINGLED?
SO IT'S NOT STRICTLY CANNABIS IT
COULD BE OTHER CASH PAYING
BUSINESSES AND THEREFORE WE CAN
TAKE THE CASH AND THEN DEPOSITED
IN BANK OF AMERICA.
BUT IF YOU WANT TO DEPOSIT AND
BANK OF AMERICA THAT IS ILLEGAL.
I WOULD BE BUSINESS OPERATOR AND
I HAD MULTIPLE BUSINESSES WHY
COULDN'T I TOO COLD MINGLE MY
DEPOSIT -- YOU COULD GO TO YOUR
BANK BUT IF YOUR BANK ASKS YOU.
WHERE IS THE MONEY FOMIN YOU LET
THEM KNOW THEY MAY SHUT DOWN
YOUR ACCOUNT ALL OF YOUR
ACCOUNTS IN AND THAT'S WHAT I
DON'T UNDERSTAND WHY THEY
WOULDN'T SH SHUT DOWN THE STATE
TO COUNT?
AS WELL.
I I DON'T WANT TO SAY WHAT I
NORMALLY SAY ABOUT THE STATE BUT
YES AND WE EVEN TRIED TO HAVE
OUR STATE EMPLOYEES SIT AT THE
BANK.
BANK OF AMERICA IS OUR OFFICIAL
BANK SIT THERE WITH THE COMPUTER
THAT LOGS YOU WIN AND THEN WE
JUST HAVE.
BANK AMERICA TELLER.
YOU KNOW COUNT ALL THE MONEY
GIVE US A RECEIPT AND HAVE
SOMEONE LOG BACK IN AND THEY
SAID THAT THAT WAS NOT LEGAL WE
HAD TO TAKE THE MONEY IN OUR OWN.
BUILDING.
COUNTS IT HOLD IT AND THEN
DEPOSITED TO BACK AMERICA AND
THAT WAS LEGAL.
DON'T ASK ME.
THANK YOU.
US SINNERS BERG WOULD TALK TO
CLOSE.
AS THEY SAY AND YET A SHELL
FTEN CORP THE END OF ALL YOUR
HEAD I MEAN IT'S A LITTLE CRAZY
IT'S HARD I MEAN.
IT'S REALLY HARD.
YEAH A LOT OF A GIVEN THE
DICTIONARY IT'S IT'S HARD.
I DON'T KNOW WHAT ELSE TO DO YOU
KNOW INITIALLY THE THING THAT
MOTIVATED ME IN IN THE
CONVERSATIONS WITH THE TREASURE.
IS IS THAT.
YOU KNOW THAT THE ATTORNEY
GENERAL AT AND THE TREASURE THE
TIME ONE TO A STATE BANK AND I
FIGURED THAT TIME IT'S A GOOD
WORK OUT A STATE BANK.
YOU KNOW W. B. SMOKING MARIJUANA
ANYMORE AND ANYWHERE WE CRAZY IT
JUST WOULDN'T WORK TAKE FOREVER
THIS WAS OKAY HOW COULD YOU
ADOPT AN EXISTING SYSTEM AS
QUICKLY AS POSSIBLE GET AS MUCH.
AS A DIMENSION I WANTED MORE
LIMITED IN CONVERSATION THE
TREASURE SHE CAME WITH A RENTED
SOME OTHER IDEAS ON WHAT A GREAT
IDEA.
YOU KNOW AND TRY TO MANAGE IT I
THINK IT IF THIS THING WORKS IN
THE NEAR TERM AND WE OPEN SOME
OF THESE THINGS YOU'LL SEE SOME
PEOPLE COME UP WITH CREATIVE
IDEAS.
OF CREDIT CARDS WITHIN THE
BANKING SYSTEM AND SOME OTHER
STUFF BUT RIGHT NOW WE WANT TO
KEEP IT IS LIVE IT IS POSSIBLE.
AT THE END AND TO TRY TO AT
LEAST GET SOME MONEY OFF THE
STREET AND SAW SOME DISCIPLINE
AND SOME RECORD KEEPING IN THE
PROCESS AND SOME MORE MONEY.
INTO THE STATE AND LOCAL COFFERS
FOR ALL THESE TAXES TO BE PAID.
THANK YOU THE BILL HAS BEEN
MOVED BY SENATOR CAFIERO.
ON IT THERE'S NO OTHER FURTHER
DISCUSSION -- WE HAPPY TO PASS
TWO SENATE GOVERNANCE AND
FINANCE.
ADAM SECRETARY PLEASE CALL THE
ROLL.
MOTION IS TO PASS TO GOVERNANCE
AND FINANCE SENATOR BRADFORD HI --
I CHANGE.
CHANG I GOT A YELLOW.
CAPOEIRA I DURAZO.
DRESSER I WAS SO.
I SO I M. MORALE.
ROOM NO POURTANT QUE NOW
[inaudible]
WE HAVE.
IT MEASURES OUT WILL LEAVE THE
ROLE OPEN FOR ANOTHER TEN MEN
FOR THE APPS TO MEMBERS TO ADD
ON THAT CONCLUDES OUR BUSINESS
FOR TODAY THANK YOU SENATOR
[inaudible]
HERTZBERG.
NO WAY OUT SENATOR.
SENATOR CHANG AND SOONER MORALE
WOULD YOU LIKE TO VOTE ON THE
COMMITTEE WORLD'S.
THIS MINERAL HITS HOME SENATOR
JOHN.
ON ITS ON ITS ON THE BANKING
ROSE
YEAH ONE BILL AND IT'S WE
HAVE THE COMMITTEE -- RULES TO
ADOPT SO -- MADAM SECRETARY CALL
ON HOLD FOR THE ROLE ALONG
COMMITTEE RULES.
SENATOR PORTENT TINO.
TINO I THEN MANAGERS OUT SEVEN
ZERO AND WE HAVE A S. P. FIFTY
ONE THE CURRENT VOTE IS.
WHAT IS IT FIVE THE?
ONE YES.
THERE WAS I MOTION IS DO PASS TO
GOVERNANCE AND FINANCE SENATOR
PARDON TINO [inaudible]
HI.
FEB MEASURES OUT SIX ONE THANK
YOU MUCH FOR CHANNEL THAT
CONCLUDES OUR BUSINESS FOR THE
DAY THE SENATE BANKING AND
FINANCE INSTITUTION IS ADJOURNED.
THANK YOU LISTING