§ 5503. Services to legitimate cannabis-related businesses.

419 words·~2 min read·/pa/title-12/chapter-55/5503

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Authorization to provide financial services.-- A financial institution authorized to engage in business in this Commonwealth may provide financial services to or for the benefit of a legitimate cannabis-related business and the business associates of a legitimate cannabis-related business subject to:

(1)the laws and regulations applicable to the provision of financial services to other customers of the financial institution;

(2)any applicable consumer protection laws of this Commonwealth;

(3)any additional requirements applicable to the institution established for the provision of services to a legitimate cannabis-related business or its business associates by a Federal financial regulatory agency, the Department of Banking and Securities or a financial regulatory agency of the state under which the institution is organized; and

(4)the extent the institution is providing services to a legitimate cannabis-related business or its business associates in another jurisdiction, any additional requirements applicable to the institution established for the provision of the services by a financial regulatory agency of that jurisdiction.

(b)Authorization to provide insurance services.-- An insurer may provide insurance services to or for the benefit of a legitimate cannabis-related business and the business associates of a legitimate cannabis-related business subject to:

(1)the laws and regulations applicable to the provision of insurance services to other customers of the insurer;

(2)any applicable consumer protection laws of this Commonwealth;

(3)any additional requirements applicable to the insurer established for the provision of services to a legitimate cannabis-related business or its business associates by the Insurance Department; and

(4)the extent the insurer is providing services to a legitimate cannabis-related business or its business associates in another jurisdiction, any additional requirements applicable to the insurer established for the provision of the services by an insurance regulatory agency of that jurisdiction.

(c)No requirement to provide services.-- Nothing in this chapter shall require a depository institution, an entity performing a financial service for or in association with a financial institution or an insurer to provide financial or insurance services to a legitimate cannabis-related business or the business associates of a legitimate cannabis-related business or to any other business.

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2022 Amendment. Section 3 of Act 56 provided that t he addition of section 5503 shall apply to the provision of financial or insurance services to a legitimate cannabis-related business or a business associate of a legitimate cannabis-related business on or after the effective date of section 3.

Cross References. Section 5503 is referred to in section 5504 of this title.

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