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DPH-20-019E: Emergency Regulations to Facilitate Financial Services for Cannabis Businesses

On January 14, 2021, the California state cannabis licensing authorities released proposed emergency regulations to implement the provisions of Assembly Bill 1525 (Jones-Sawyer, 2020). The proposed regulations are intended to facilitate greater access to financial services for licensed cannabis businesses who face challenges obtaining banking, insurance and other financial services commonly available to other businesses.

The proposed regulatory text and supporting documents can be viewed at the following links:

  • Proposed Regulatory Text

The proposed regulations create a pathway for licensees to authorize sharing of non-public information with selected financial institutions and provide a mechanism for financial institutions to more readily conduct federally-required reviews of the cannabis business.

The emergency regulations are expected to be approved in early February. Once approved, the state cannabis licensing authorities will publish forms and begin accepting licensee authorizations.

What are Emergency Regulations?

Emergency regulations are regulations developed during a special rulemaking process in response to a situation that requires immediate action to avoid serious harm to the public peace, health, safety or general welfare (Government Code, Section 11342.545). A Finding of Emergency was submitted with the emergency regulations package.

Can I comment on the Emergency Regulations?

Emergency regulations have a five-day public comment period on the finding of emergency that begins when the California Office of Administrative Law (OAL) posts the proposed emergency regulations on their website. The comment period for DPH-20-019E, is from January 14, until January 18, 2021. Adoption of emergency regulations does not require response to comments. 

Written comments must be submitted to both OAL and the California Department of Public Health's Office of Regulations. Include the title of the proposed regulations, DPH-20-019E, with your comments. They may be sent by mail, email or fax to the following:

Office of Administrative Law
300 Capitol Mall, Suite 1250
Sacramento, CA 9581
staff@oal.ca.gov
Fax: 916-323-6826
CDPH - Office of Regulations
1415 L Street, Suite 500
Sacramento CA 95814
regulations@cdph.ca.gov
Fax: 916-440-5747

Please note: no comments can be accepted in person or by phone.

Additional Resources

For more information on the state regulatory process: Office of Administrative Law

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