California cannabis businesses are hopeful a bill making its way through the state Legislature could provide them with some banking solutions.
Because it’s still illegal to use marijuana under federal law, most banks won’t work with cannabis businesses -- and that means the industry operates largely in cash.
A bill from state Sen. Bob Hertzberg (D-Van Nuys), Senate Bill 930, would create a closed system of banks and credit unions that would deal exclusively with marijuana businesses based within California.
Cannabis businesses would also be required to get private insurance, since they would not be backed by the Federal Deposit Insurance Corporation (FDIC).
Hertzberg said the network would have to be essentially walled off from the traditional banking system.