Legislation to protect banks and other financial institutions that provide services to state-legal marijuana businesses has been passed by a key Senate committee in Delaware, roughly a month after it passed the full House of Representatives.
House Bill 355 was approved today through the Senate Health & Social Services Committee. On March 28, the measure was passed by the House of Representatives in a unanimous 38 to 0 vote.
Sponsored by Representative Ed Osienski and Senator Trey Paradee in partnership with State Treasurer Colleen Davis, the proposal clarifies under state law that those offering financial services to marijuana businesses are following state law and thus cannot be prosecuted.
“Banks and credit unions are hesitant to serve the marijuana industry because of concerns regarding federal prosecution or penalties since marijuana remains illegal under federal law,” says Treasurer Davis. “H.B. 355 will provide state-level legal protection, and a clear legal framework for banks, payment processors, and other financial service providers to follow. It can also ease concerns about federal enforcement and regulatory compliance among these businesses – since it allows them to demonstrate to federal agencies that they’re following a clear legal framework, ultimately leading to a safer and more transparent marijuana industry.”
Key provisions of the legislation include:
- Protection: Provides state-level legal protection, thereby reducing banks’ fear of prosecution or penalties.
- Enables Secure Transactions: Allows marijuana businesses to utilize traditional banking methods, eliminating the dangers and inefficiencies associated with managing large amounts of cash.
- Boosts Local Economy: Facilitates investment and growth within the Delaware marijuana industry, leading to increased revenue and job opportunities.
- Enhances Safety: Promotes greater safety for retailers and their customers, as cash-intensive activity is more prone to theft, robbery, & violence.
- Competition: Encourages more financial-related service providers to enter the legal marketplace, which will result in more competition, lower prices, improved services, and potentially decrease the amount of marijuana business taking place within the black market.
The full text of H.B. 355 can be found here. If it’s passed by the full Senate, it will be sent to Governor John Carney for consideration.
