 Pennsylvania’s governor, Tom Wolf, who has been pro-cannabis legalization, has officially signed a bill into law which includes provisions to protect banks and insurers who work with licensed cannabis businesses.
The measure will not immunize banks and insurers from potential federal repercussions—but it represents an interim step meant to signal to the financial sector that they at least won’t face penalties under state law. The legislation says that state government agencies cannot “prohibit, penalize or otherwise discourage a financial institution or insurer from providing financial or insurance services to a legitimate cannabis-related business or the business associates of a legitimate cannabis-related business.” It also says agencies cannot “recommend, incentivize or encourage a financial institution or insurer” to not provide services just because a business is associated with marijuana. Further, state agencies cannot “take adverse or corrective supervisory action on a loan made to a legitimate cannabis-related business,” the text says. This new Pennsylvania legislation is one of many states who are working to provide protections to financial institutions who service the cannabis industry, while Congress continues to stall on making federal changes. Comments are closed.
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