California lawmakers kill state-backed bank for pot money

Posted at 1:51 PM, Aug 16, 2018

SACRAMENTO, Calif. (AP) – California lawmakers have killed a plan to create a state-backed bank to handle money associated with the recreational marijuana market.
California’s legal recreational pot industry is the world’s largest.
Most banks, though, won’t handle money affiliated with the industry because marijuana is still illegal under federal law. That’s forced marijuana growers, distributors and sellers to operate with cash.
The bill by Democratic Sen. Bob Hertzberg died Thursday in an Assembly committee without debate.
Hertzberg said requiring marijuana businesses to deal in cash posed dangers for operators. He called his plan a "creative approach" to a problem he hoped the federal government would eventually solve.

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