Title 12 amended to include Legitimate Cannabis-Related Businesses
July 27, 2022
On Monday July 11, 2022, Title 12 of the Pennsylvania Consolidated Statutes was amended to include Chapter 55 “Legitimate Cannabis-Related Businesses,” 12 Pa.C.S. § 5501, et seq. The law is designed to protect financial services companies doing business with cannabis-related businesses and business associates of cannabis-related businesses. The law does not require financial institutions and insurers to deal with cannabis-related business; however, the law creates protections for financial institutions and insurers by prohibiting Pennsylvania government agencies and political subdivisions from penalizing or otherwise discouraging financial institutions and insurers from providing services to legitimate cannabis-related businesses. The law extends to all customers and suppliers in the supply chain for a legitimate and legal cannabis-related business. The law creates certain notice and filing requirements on cannabis-related businesses doing business with financial institutions and insurers and restricts how the financial institutions and insurers can use the disclosed information. Most importantly, the new law expressly does not preempt another state’s laws or federal law that pertain to cannabis, cannabis-related businesses or financial institutions and insurers. This will likely create an issue for financial institutions and insurers that could run afoul of federal laws related to the still illegal cannabis industry.
If you have questions about medical marijuana business in Pennsylvania, contact us online or call (412) 338-1100.