Pennsylvania Governor Signs Cannabis Banking and Insurance Protections into Law

On July 11, 2022, Pennsylvania Governor Tom Wolf signed House Bill 331 into law, ostensibly making the Commonwealth safer for financial institutions and insurers that want to do business with the state’s medical marijuana industry.

In relevant part, the new law states that “[a] financial institution authorized to engage in business in this Commonwealth may provide financial services,” and that “an insurer may provide insurance services,” “to or for the benefit of a legitimate cannabis-related business and the business associates of a legitimate cannabis-related business subject to,” among other laws, generally (i) laws relating to providing “financial services” or “insurance services” to others, (ii) “any applicable consumer protection laws,” and (iii) any other laws “or additional requirements” specifically applicable to a financial institution or insurer servicing Pennsylvania’s cannabis industry.

A ”[l]egitimate cannabis-related business” is defined in the new law to mean “[a] person that participates in any business or organized activity that involves handling cannabis or a cannabis product, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing or purchasing cannabis or a cannabis product in compliance with federal law, the laws of this Commonwealth or a law established by another state.”

The new law is intended to protect financial institutions and insurers from state prosecution just for doing business with the Commonwealth’s cannabis industry. [Read More @ Leech Tishman]