California Senate Supports State-Backed Bank For Pot Money

SACRAMENTO, Calif. (AP) – California lawmakers are moving to create a state-backed bank to handle the billions of dollars flowing from the newly legal recreational marijuana market. The measure approved by a bipartisan 29-6 state Senate vote Wednesday is designed to help pot entrepreneurs. They now usually deal in cash because most banks won’t accept money from a product that remains illegal under federal law. The bill by Democratic Sen. Bob Hertzberg of Van Nuys now goes to the Assembly. It would permit charter banks and credit unions that would provide limited banking services to pot-related businesses. They could use the banks to pay state and local taxes and fees, pay vendors for cannabis-related goods and services, pay their rent, and buy state and local bonds and other investments.

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