This bill aims to protect financial institutions and insurers that engage with the cannabis industry in New Jersey from penalties imposed by state regulators. It allows these entities to provide financial and insurance services to legitimate cannabis-related businesses and their associates, provided they comply with existing laws and regulations applicable to other customers. The bill explicitly prohibits state agencies from discouraging or penalizing financial institutions or insurers for offering services to cannabis-related businesses, and it ensures that no adverse actions are taken against loans made to these businesses solely based on their cannabis-related status.

Additionally, the bill stipulates that financial institutions and insurers, along with their personnel, will not face criminal prosecution or civil claims for providing services to legitimate cannabis-related businesses. It also requires these businesses to notify their financial institutions or insurers if any relevant licenses or permits are suspended or revoked, with penalties for non-compliance. Overall, the legislation seeks to create a more secure environment for financial transactions within the cannabis industry, thereby encouraging its growth and integration into the broader economy.