The California Senate on Tuesday voted to permit specially designated banks to handle money from legal marijuana retailers.
While it has been legal to use recreational marijuana in California since January of 2018, pot is still considered illegal by the federal government.
That has created a financial problem for properly licensed marijuana retailers in that state, since they are not able to use traditional banks. Federal law makes it a crime for the banks to accept money from criminal activities, which includes the sale of marijuana.
The Senate voted 35-1 on Tuesday to pass Senate Bill 51 that would create cannabis limited charter banks and cannabis limited charter credit unions.
The banks could accept cash deposits and issue special purpose checks retailers could use to pay taxes, rent, or vendors and to purchase bonds or other debt.
The bill now heads to the Assembly for consideration, and would still need Governor Gavin Newsom's signature to become law if it is approved that legislative body.