Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Protects financial institutions and insurers doing business with cannabis industry from being penalized by State regulators.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning cannabis and the protection of insurers and financial institutions and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
Business associate means a person that is a customer or supplier of goods or services to or for the benefit of an alternative treatment center, cannabis cultivator, cannabis delivery service, cannabis distributor, cannabis testing facility, or any other cannabis establishment, as these terms are defined pursuant to section 3 of P.L.2021, c.16 (C.24:6I-33), or an officer or director, owner, operator, shareholder, member, employee, agent or financial backer of a cannabis establishment.
Cannabis means marihuana as defined pursuant to section 2 of the New Jersey Controlled Dangerous Substances Act, P.L.1970, c.226 (C.24:2l-2).
Cannabis product means a product that contains cannabis, a cannabis extract or a cannabis concentrate, including, but not limited to, edible product, beverages, topicals, ointments, oils, tinctures, capsules, pills, suppositories, or inhaled products.
Department means the Department of Banking and Insurance.
Depository institution means:
(1) a depository institution as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. s.1811;
(2) a federal credit union as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. s.1751 et seq; or
(3) a State credit union as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. s.1751 et seq.
Federal financial regulatory agency means the Federal Reserve System, the United States Department of the Treasury, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Deposit Insurance Corporation, the United States Securities and Exchange Commission, and the Consumer Financial Protection Bureau.
Financial institution means a financial institution as defined pursuant to section 2 of P.L.1998, c.121 (C.17:16T-2);
Financial service means a financial product or service:
(1) as defined by section 5481 of the Dodd-Frank Wall Street Reform and Consumer Protection act, 12 U.S.C. s.5301 et seq.;
(2) permitted to be provided under the authority of:
(a) a national bank or a financial subsidiary pursuant to 12 U.S.C. ss.24, 24a, and 92a;
(b) a federal credit union pursuant to the Federal Credit Union Act, 12 U.S.C. s.1751 et seq.;
(c) a corporation, as defined pursuant to section 2.1 of the New Jersey Business Corporation Act, P.L.1988, c.94 (C.14A:1-2.1);
(d) a credit union, pursuant to the The Credit Union Act of 1984, P.L.1984, c.171 (C.17:13-79 et seq.);
(e) a person registered, or exempt from registration, to offer or sell any security, or to act as a broker, dealer, transfer agency, clearing agency or investment company under the federal Investment Company Act of 1940, 15 U.S.C. s.80a-1et seq.;
(f) a person registered, or exempt from registration, to:
(i) offer or sell any security, pursuant to the federal Securities Act of 1933, 15 U.S.C. s.77a et seq.;
(ii) act as an exchange, a broker, dealer, transfer agent or clearing agent pursuant to the federal Securities Exchange Act of 1934, 15 U.S.C. s.78a et seq.;
(iii) act as an investment adviser pursuant to the federal Investment Advisers Act of 1940, 15 U.S.C. s.80b-1 et seq.; or
(iv) act as an investment company pursuant to the federal Investment Company Act of 1940, 15 U.S.C. s. s.80a-1et seq.; or
(g) a person acting as a broker-dealer, agent, or investment adviser pursuant to the Uniform Securities Law, P.L.1967, c.93 (C.49:3-47 et seq.); or
(3) that includes a service, whether performed directly or indirectly, authorizing, processing, clearing, settling, billing, transferring for deposit, transmitting, delivering, instructing to be delivered, reconciling, collecting or otherwise effectuating or facilitating the payments of funds, where funds payments or funds are made or transferred by any means, including by the use of credit cards, debit cards or other access devices, accounts, original or substitute checks or electronic funds transfers.
Hemp means the plant Cannabis sativa L. and any part of that plant, as defined pursuant to section 3 of P.L.2019, c.238 (C.4:28-8).
Insurance service means a service authorized to be provided by an insurer in this State.
Insurer means an entity or person authorized by the department to transact the business of insurance in this State or designated as a surplus lines insurer as defined pursuant to section 7 of P.L.1960, c.32 (C.17:22-6.41).
Legitimate cannabis-related business means a person that participates in any business or organized activity that involves handling cannabis or a cannabis product, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing or purchasing cannabis or a cannabis product in compliance with the laws of this State or a law established by another state.
State means any state, territory or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, the United States Virgin Islands, or any federally recognized Indian tribe as defined by the Secretary of the Interior under the Federally Recognized Indian Tribe List Act of 1994, 25 U.S.C. s.5131.
Trust company means:
(1) a national bank authorized to exercise trust powers as authorized by 12 U.S.C. s.92a; or
(2) a bank or trust company organized under the laws of this State.
2. a. A financial institution authorized to engage in business in this State 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 State;
(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 or a financial regulatory agency of the State under which the institution is organized; and
(4) to 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. 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 State;
(3) any additional requirements applicable to the insurer established for the provision of services to a legitimate cannab