LA City Council Announces Its Support of Proposed State Cannabis Bank

California has taken yet another step in the legalization of cannabis. Last month, the Los Angeles City Council announced that it had approved a resolution supporting a state Senate bill. This bill seeks to create a state-chartered bank that the marijuana industry can use. As of now, no city in the U.S. has its own bank. The only public bank, created in 191, is located in North Dakota.

One of the biggest problems – perhaps the biggest – for the marijuana industry has been finding banks willing to work with marijuana merchants. Without a marijuana merchant account, the businesses are unable to secure the payment processing services they need to process debit and credit cards, forcing these businesses to operate in cash only. And funding? Marijuana dispensary funding has simply been out of the question.

This resolution was originally introduced by Sen. Bob Hertzberg, D-Van Nuys, following City Council President …

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