ASSEMBLY FINANCIAL INSTITUTIONS AND INSURANCE
COMMITTEE
STATEMENT TO
ASSEMBLY, No. 4263
with committee amendments
STATE OF NEW JERSEY
DATED: DECEMBER 5, 2022
The Assembly Financial Institutions and Insurance Committee
reports favorably and with committee amendments Assembly Bill No.
4263.
As amended, this bill protects financial institutions and insurers
doing business with the cannabis industry from being penalized by
State regulators.
Under the bill, a financial institution or insurer authorized to
engage in business New Jersey may provide financial or 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 financial
or insurance services to other customers of the financial institution or
insurer;
(2) any applicable New Jersey consumer protection laws;
(3) any additional requirements applicable to the financial
institution or insurer established for the provision of services to a
legitimate cannabis-related business or its business associates by a
federal regulatory agency or the department; and
(4) to the extent the financial institution or insurer is providing
services to a legitimate cannabis-related business or its business
associates in another jurisdiction, any additional requirements
applicable to the financial institution or insurer established for the
provision of the services by a regulatory agency of that jurisdiction.
The bill provides that no agency or political subdivision of the
State will:
(1) prohibit, penalize or otherwise discourage a financial
institution or insurer from providing financial or insurance services to
a legitimate cannabis-related business or the business associates of a
legitimate cannabis-related business;
(2) recommend, incentivize or encourage a financial institution or
insurer not to offer financial or insurance services to an account
holder, or downgrade or cancel services provided to the account
holder, solely because the account holder is a legitimate cannabis- 2
related business or a business associate of a legitimate cannabis-related
business;
(3) take adverse or corrective supervisory action on a loan made to
a legitimate cannabis-related business or a business associate of a
legitimate cannabis-related business solely because the loan has been
made to a legitimate cannabis-related business or a business associate
of a legitimate cannabis-related business;
(4) prohibit or penalize a financial institution or insurer performing
financial or insurance services in association with another financial
institution or insurer from providing financial or insurance services
solely because the institution or insurer is providing financial or
insurance services to a legitimate cannabis-related business or a
business associate of a legitimate cannabis-related business in
association with another financial institution or insurer; or
(5) subject the legal interest of a financial institution in the
collateral for a loan or another financial service provided to a
legitimate cannabis-related business or the business associates of a
legitimate cannabis-related business to civil or criminal forfeiture
under New Jersey law or initiate or participate in proceedings for the
civil or criminal forfeiture of a legal interest under federal law or under
the laws of another state solely because the loan has been made to a
legitimate cannabis-related business or a business associate of a
legitimate cannabis-related business.
Additionally, under the bill, no financial institution or insurer, or
the directors, officers, employees, agents, owners, shareholders or
members of a financial institution or insurer, will be subject to a
criminal prosecution, sanction or claim for damages or any equitable
remedy, solely because the institution or insurer is providing financial
or insurance services to or for the benefit of a legitimate cannabis-
related business or the business associates of a legitimate cannabis-
related business.
Finally, this bill provides that a legitimate cannabis-related
business provide notice to a financial institution or insurer if a license,
permit, registration or certification held by the business or its affiliates
under federal law, the laws of New Jersey or a law established by
another state is suspended or revoked.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
(1) clarify that State regulators cannot take adverse action against a
financial institution or insurer solely because the institution or insurer
is providing financial or insurance services to a legitimate cannabis-
related business or a business associate of a legitimate cannabis-related
business in association with another financial institution or insurer;
and
(2) clarify that State regulators cannot subject the legal interest of a
financial institution in the collateral for a loan or another financial 3
service provided to a legitimate cannabis-related business or the
business associates of a legitimate cannabis-related business to civil or
criminal forfeiture under any New Jersey law or initiate or participate
in proceedings for the civil or criminal forfeiture of a legal interest
under federal law or under the laws of another state solely because the
loan has been made to a legitimate cannabis-related business or a
business associate of a legitimate cannabis-related business.