Passed by California voters in 1996, the Compassionate Use Act legalized the use of medicinal cannabis for the first time in the United States. Twenty years later, in 2016, Proposition 64 legalized the adult (i.e. recreational) use, sale, and cultivation of cannabis in the state of California. Since then, the state has come to boast the largest regulated cannabis markets not only in the United States, but the world. 

In 2023, the Californian adult-use cannabis market grossed over $5.1 billion in taxable sales. Although the market is quite prosperous, businesses operating in the Californian cannabis industry often face difficulties when accessing financial services due to the state’s complex compliance regulations.   

At Confia, we proudly provide a dependable commerce platform of financial services designed to empower businesses operating in underserved markets, extending to cannabis and cannabis related businesses (CRBs) in California. Our dedicated team of experts is well-versed in the specific challenges faced by the cannabis industry, ensuring that you receive the support and insights necessary to thrive in this unique market.

Understanding the Cannabis Landscape of the Golden State

California is known to have some of the most complex regulatory landscapes in the country.  Such complex regulations are meant to advance and facilitate a well-regulated, legal market that benefits all Californians via a safe, sustainable, and equitable cannabis market. 

For business owners and operators, this landscape can be understandably overwhelming. In addition to cannabis-specific laws and regulations, CRBs in the Golden State must also follow the same rules as other non-cannabis businesses in the state, including all Health and Safety ordinances, adding to the complex landscape.

The Complexity of Regulatory Compliance 

Cannabis and cannabis-related businesses in the Golden State face no shortage of compliance regulations. In addition to state and federal authority over the cannabis industry, local governments also have the power to regulate or prohibit cannabis businesses within their jurisdiction, adding another layer of complexity to the matter. In order to maintain ordinance in the state, specific departments have had to be instated. 

The Department of Cannabis Control (DCC) is the most significant regulatory organization in the state and is the culmination of three state cannabis authorities. The DCC is responsible for enforcement, licensing, and environmental oversight regarding the cannabis industry. Having one department with such large jurisdiction is meant to improve the regulatory progress. The DCC is also meant to address the financial concerns of CRBs operating in California. 

Confia: Providing Confidence to the Underserved and Underbanked 

At Confia, we understand that operating your cannabis or cannabis-related business in the state of California means more competition and more regulations than any other state. We also understand that the California cannabis industry stands as an example of success for others not only in the United States, but the world.

Such a prosperous industry deserves access to the best commerce services. Let our team of California-specialized professionals take the lead on aiding the management of your financial matters while you focus on your operational and business goals. 

Our services include:

• • • Checking and savings accounts
    • Online commerce platform access
    • Payroll assistance
    • ACH payment and origination options
    • Wire services

Confia sets a new standard in financial services, offering a wholly customizable commerce platform designed specifically for the diverse needs of underbanked industries, such as the cannabis industry, and businesses in the state of California.

Confia is equipped to offer superior financial support and strategic insights to help grow your business in the state of California. From FDIC-eligible accounts and expanded payment options to compliance assurance, Confia has the tools required to navigate the distinct regulatory landscape of your environment and take your business to the next level.