On Wednesday, the Pennsylvania Senate approved legislation from state Sens. John DiSanto (R-Dauphin/Perry) and Sharif Street (D-Philadelphia) to provide legal cannabis businesses in that state with access to banking and insurance services.
Senate Bill 1167 authorizes financial institutions and insurers to provide services to state-legal cannabis businesses without requiring them to do so. The bill also protects banks and insurers that service the cannabis industry from state penalties. The legislators said the bill would codify the existing non-enforcement of regulations surrounding cannabis.
“Improved access to financial and insurance services is vital for protecting public safety and is essential to operate any legal business,” DiSanto said. “Banking this cash safely in Pennsylvania will grow our economy and lower costs for medical cannabis consumers.”
While Pennsylvania legalized medical marijuana in 2016, remaining federal prohibitions prevent financial institutions and insurers from servicing cannabis-related businesses. Despite the U.S. Treasury’s Financial Crime Enforcement Network (FinCEN) 2014 guidance, those federal prohibitions may make proceeds from cannabis businesses a federal crime, restricting those businesses’ access to conventional financial services.
This forces state-legal cannabis businesses to operate using cash, making them targets for armed robberies that jeopardize the safety of patients, employees, and the communities around them.
Despite the challenges, the cannabis industry has emerged as a leader in bringing new businesses, jobs, and investments to Pennsylvania and has provided several hundred thousand patients with access to safe and regulated products to treat various health conditions.