CALIFORNIA -- Recreational marijuana outlets are open for business in California.

Customers lined up at dispensaries across the state that began selling cannabis early on New Year’s Day.

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Forty-two businesses have a temporary license to sell marijuana. The sale of marijuana is still illegal in the eyes of the federal government. Most dispensaries require customers to pay in cash since banks are federally insured entities.

California has a 15 percent tax on the marijuana sales that's expected to generate at least $1 billion in revenue for the state each year.