Delaware lawmakers last month passed a bill that provides protections for banks and other financial institutions to serve cannabis businesses as the state prepares to launch its adult-use cannabis program. The law clarifies that providing financial services to legal cannabis businesses is lawful under state law.
In a statement, State Treasurer Colleen Davis called the legislation “a critical step forward for Delaware’s cannabis industry.”
“By ensuring safe access to banking services, we are empowering legitimate businesses to operate transparently and securely.” — Davis in a press release
State Rep. Ed Osienski (D), one of the bill’s sponsors, said in a statement that in other states that have legalized cannabis for adult use, “dispensaries and banks alike struggling with legal uncertainty surrounding financial and accounting services for cannabis businesses.”
“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,” Osienski said. “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.”
State Sen. Trey Paradee (D), who sponsored the legislation in the Senate, added “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,” Paradee said in a statement. “But with an over-reliance on cash-transactions, retailers 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.”
The bill still requires final approval from Gov. John Carney (D).
Get daily cannabis business news updates. Subscribe
End