Cannabis Cash And Banks Can Commingle In PA As Gov. Signs Reform Into Law While Feds Fiddle Over Legalization

As expected though always welcome, PA Gov. Tom Wolf (D) signed a bill into law that includes important provisions to protect banks and insurers that work with licensed medical marijuana businesses, reported Marijuana Moment.

Gov. Wolf, who supports cannabis legalization, signed the measure sent to his desk last week by the Republican-controlled legislature, which is similar to a standalone cannabis banking reform bill that passed earlier in the year.

As Marijuana Moment aptly points out, Pennsylvania cannabis legislation is “another example of how states are working to provide protections to financial institutions that are willing to service the cannabis market as Congress continues to stall on a federal fix.”

What’s In The Bill

While the amendment included in the measure does not totally guarantee that banks and insurers will be free from potential federal backlash, it represents a message to the financial sector that at least they won’t face penalties under state law.

It states that a “financial institution authorized to engage in business in this Commonwealth may provide financial services to or for the benefit of a legitimate cannabis-related business and the business associates of a legitimate cannabis-related business.” The same goes for insurers.

However, noted Marijuana Moment, it also specifies that the law will not require banks or insurers to provide services to medical marijuana businesses nor can state agencies prohibit, penalize or discourage a financial institution or insurer from providing service to legit cannabis companies.

In other words, banks and insurers can't be forced to bake certain types of cakes if they choose not to.

Photo: bulkbuddy, PublicDomainPictures by Pixabay