Legislation to protect banks and other financial institutions that provide services to state-legal marijuana businesses has been given approval by the Delaware Legislature.
House Bill 355, sponsored by Representative Ed Osienski and Senator Trey Paradee, clarifies that providing financial services to legal cannabis businesses is lawful under Delaware state law. Passage of the bill removes a major barrier for the cannabis industry, which has struggled to access traditional banking services due to the continued federal classification of marijuana as a Schedule I drug.
“This legislation is a critical step forward for Delaware’s cannabis industry,” said State Treasurer Colleen Davis. “By ensuring safe access to banking services, we are empowering legitimate businesses to operate transparently and securely.”
The passage of H.B. 355 “marks a pivotal moment for Delaware’s legal marijuana industry and the financial institutions that will support it”, states a press release.
“Across the country, we’ve witnessed dispensaries and banks alike struggling with legal uncertainty surrounding financial and accounting services for cannabis businesses”, said Rep. Ed Osienski. “This uncertainty not only undermines the operations of state-compliant dispensaries but also hinders their access to basic business functions such as access to banking, acquiring loans, or paying taxes. We want Delaware’s safe and regulated industry to out-compete the illegal market. By providing dispensaries with a secure avenue to banking and compliance services, we empower them to contribute positively to our economy, keep costs down for the industry and customers, employ local talent, and fulfill their tax obligations.”
Sen. Trey Paradee said “At the end of the day, cannabis retailers in Delaware are small businesses. They will be in our communities. They will hire Delawareans. They will pay their taxes. They will contribute to the economic development of this State. But with an over-reliance on cash-transactions, retailors are at a disadvantage in terms of their banking, compliance, and safety needs. With the passage of this legislation, the State can ensure that these types of businesses have a clear path towards access to those critical services.”
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.
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