Legislation has been introduced in the Delaware General Assembly that aims to protect banks and other businesses that provide financial services to marijuana cultivators, distributors, and retailers who operate within Delaware’s legal cannabis systems.
According to sponsors, House Bill 355 clarifies that these financial services are legal under Delaware state law and aims to reassure financial service providers that they can safely provide their services to legal marijuana businesses without risking criminal liability.
In other jurisdictions, the financial services gap has led to well-funded corporate marijuana entities dominating the market. Delaware’s law carves out niches for small businesses and start-ups with a sales not expected to emerge until nexxt year.
“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,” said Delaware State Treasurer Colleen 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.”
Hightlights
* Provides state-level legal protection, thereby reducing banks’ fear of prosecution or penalties.
* Allows marijuana businesses to utilize traditional banking methods, eliminating the dangers and inefficiencies associated with managing large amounts of cash.
* Facilitates investment and growth within the Delaware marijuana industry, leading to increased revenue and job opportunities.
* Promotes greater safety for retailers and their customers, as cash-intensive activity is more prone to theft, robbery, & violence.
* 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 inability to access traditional banking services presents a serious challenge for Delaware’s marijuana businesses,” says Rob Coupe, Delaware’s Marijuana Commissioner. “Cash-intensive operations leave the businesses vulnerable to theft and other crimes, and present additional obstacles in their efforts to comply with tax laws.”
The full text of H.B. 355 can be found at https://legis.delaware.gov/BillDetail?LegislationId=141114>.
