SACRAMENTO—California judges should not hold any financial stake in marijuana businesses, even though medical and now recreational cannabis use is legal in California, a state Supreme Court ethics committee says in a draft opinion.

The draft opinion, circulated this week for public comment, said judges who have financial ties to the sale or manufacture of marijuana—both illegal under federal law—risk violating ethics canons that require compliance with all laws and counsel against creating even the appearance of impropriety.

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