Marijuana Is Legal in 20 States and the District of Columbia in Some Form. in California, It Is Permitted for Medical Use in Small Quantities. WASHINGTON California banks still will not take deposits from or lend money to legal medical marijuana dispensaries because the banks say they still run the risk of severe penalties despite indications last week from the Department of Justice that it will rethink its prosecutorial approach. U.S. Attorney General Eric Holder announced Jan. 23 that his department would review rules that have bankers apprehensive about providing even basic banking services to marijuana dispensaries deemed legal by state lawmakers. [continues 444 words]