A new bill in the Delaware General Assembly is set to offer a legal shield for banks and financial entities servicing the state’s lawful cannabis industry, including growers, distributors, and retailers. This initiative is encapsulated in House Bill 355, championed by Rep. Ed Osienski, Sen. Trey Paradee, and in collaboration with State Treasurer Colleen Davis. The bill seeks to affirm the legality of these financial services under Delaware law, encouraging financial institutions to support legitimate cannabis businesses without fear of legal repercussions.
The legislation, House Bill 355, endeavors to dispel concerns around federal legal actions or penalties that currently deter financial institutions from engaging with the cannabis sector, despite its legality at the state level. Treasurer Davis highlighted, “Due to the federal prohibition on marijuana, financial bodies are wary of servicing the industry, fearing federal repercussions. This bill aims to establish a state-sanctioned legal framework, encouraging banks and other financial service providers to assist legal cannabis operations confidently. This, in turn, will alleviate apprehensions about federal oversight and foster a more secure, transparent cannabis market.”
Officials outline the bill’s key features, emphasizing its potential benefits:
- Legal Safeguards: Offering legal protection at the state level to alleviate fears among financial institutions about facing prosecution or financial penalties.
- Enabling Secure Transactions: Permitting cannabis enterprises to adopt conventional banking solutions, thereby reducing the risks and inefficiencies of cash transactions.
- Economic Enhancement: Supporting the growth and investment in Delaware’s cannabis sector, leading to higher revenue and employment opportunities.
- Safety Improvements: Increasing safety for both retailers and consumers by mitigating the risks associated with cash transactions, which are often targets for criminal activities.
- Stimulating Competition: Attracting more financial service providers to the legal cannabis market, fostering competition, lowering costs, enhancing services, and potentially reducing illegal market transactions.
Rep. Osienski expressed concerns about the national landscape, where cannabis dispensaries and financial institutions grapple with the ambiguity surrounding the provision of financial and accounting services to cannabis entities. “This grey area not only complicates the operations of dispensaries but also limits their access to fundamental business resources like banking, loans, and tax services. Through this bill, we aim to give Delaware’s cannabis industry a reliable path to banking and compliance services, bolstering the local economy, generating employment, and ensuring tax compliance,” Osienski noted.
Sen. Paradee remarked on the broader implications for local communities, stating, “Cannabis retailers are essentially small businesses integral to Delaware’s economic fabric. They contribute to our communities, create jobs for Delawareans, and fulfill their tax obligations. However, the current reliance on cash puts them at a disadvantage. This legislation paves the way for these businesses to access vital banking, compliance, and safety services, crucial for their success.”
Officials also stressed the importance of the bill in enhancing the safety and operational efficiency of businesses within the cannabis industry.
Delaware’s Marijuana Commissioner, Rob Coupe, commented on the challenges faced by the cannabis businesses due to the lack of traditional banking services, “The predominant cash operations pose significant security risks and compliance hurdles, especially concerning tax laws.”
Dana Rubenstein, the president and CEO of the Delaware Society of Certified Public Accountants, praised the legislation for granting cannabis retailers access to vital CPA services, essential for their financial well-being.
For more details on House Bill 355, visit the official Delaware legislation website.
OTHER NEWS: Will Delaware Governor Sign Adult-Use Cannabis Bills?
New Seattle Law Boosts Labor Safeguards for Dispensary Workers
