The act authorizes any financial institution permitted to operate in Pennsylvania to provide financial services to cannabis-related businesses and the business associates of a cannabis related business. The cannabis business is subject to the existing applicable laws and regulations of financial services and consumer protection laws.
This legislation also authorizes an insurer to provide insurance services to cannabis related businesses and subjects the business to any existing applicable laws and regulations related to insurance services. The act provides that no financial institution or insurer can be subject to criminal prosecution solely for providing services to cannabis related businesses, and any proceeds from transactions with cannabis related businesses may not be considered proceeds from unlawful activity.
The act prohibits any agency of the state from prohibiting, penalizing, or discouraging a financial institution or insurer from providing services to a cannabis related business. They are also be prohibited from subjecting the legal interest of a financial institution in the collateral for a loan or another financial service to civil or criminal forfeiture or initiating or participating in proceedings for the civil or criminal forfeiture of a legal interest under federal law or the laws of another state.
State agencies and localities are additionally prohibited from doing any of the following: (1) recommending or incentivizing a financial institution or insurer not to offer services to a cannabis related business; (2) take adverse action or corrective supervisory action on a loan made to a cannabis business; and (3) prohibit or penalize a financial institution or insurer performing services for a cannabis business. Cannabis businesses are required to notify and insurer or financial services provider of any change to their licensing and financial institutions and insurers providing services would be permitted to obtain access to the information necessary to provide services with certain restrictions.
This act is effective upon approval.