San Francisco Cannabis Banking

Herring Bank is thrilled to introduce the Cannabis Banking Program for San Francisco, a bespoke platform crafted to navigate the financial intricacies of the cannabis industry. This initiative offers a comprehensive suite of banking solutions, including checking and savings accounts customized for cannabis businesses, facilitating secure management of funds. With 24/7 online banking access, businesses can effectively handle their operations from any location, easing consumer transactions and electronic tax submissions to uphold compliance and enhance operational efficiency.

Understanding the pivotal role of cash flow management in the cannabis sector, Herring Bank provides specialized cash management accounts and secure cash transportation services, reducing the risks tied to cash transactions. For businesses on the path to growth, our cannabis business accounts deliver the essential financial infrastructure, alongside investment opportunities.

Herring Bank also caters to your workforce management needs with employee accounts, direct deposit, ACH payments, and wire transfer services, establishing a streamlined and efficient payroll and payments process. This comprehensive financial toolkit is deliberately shaped to bolster the growth of cannabis businesses in San Francisco, creating a strong financial base for thriving in this dynamic market.

2024 Cannabis banking in San Francisco: Current rules and regulations

In California, cannabis is legally accessible for both medicinal and adult (recreational) use. This legal status was achieved through several legislative milestones, starting with the Compassionate Use Act in 1996, which allowed medicinal cannabis use, followed by significant updates like Proposition 64 in 2016, which legalized recreational use and cultivation for individuals over the age of 21. Notably, in recent years, legislation has further evolved to protect consumers and businesses within the cannabis industry, emphasizing safety, equity, and access.

For example, in 2023, SB 700 was introduced, providing employment protections for cannabis users by making it unlawful for most employers to inquire about past cannabis use during interviews, effective from January 1, 2024. This was part of a broader effort to address barriers within the cannabis market and ensure an equitable, safe, and sustainable legal cannabis industry in California.

Governor Gavin Newsom has been instrumental in this process, signing several measures aimed at strengthening the state’s cannabis laws, expanding the legal market, and addressing the impacts of past cannabis prohibition. These measures include facilitating interstate cannabis transactions, preempting local bans on medicinal cannabis delivery, and ensuring that Californians with old cannabis-related convictions have them sealed.

The state has introduced tax relief for consumers and the cannabis industry, supported equity businesses, and expanded access to legal retail while protecting youth and funding environmental and public safety programs through cannabis tax revenue. These efforts underscore California’s commitment to fully realizing cannabis legalization and fostering an inclusive marketplace.

The regulatory framework is managed by the California Department of Cannabis Control (DCC), which oversees licensing and enforces comprehensive statutes, regulations, and ordinances to ensure business safety, product integrity, and consumer protection. The DCC also facilitates equity programs in various cities and counties to assist individuals negatively affected by the War on Drugs.