Bill Text: NJ S1769 | 2020-2021 | Regular Session | Introduced
Bill Title: Permits financial institutions to provide financial service to certain hemp-related businesses.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2020-02-13 - Introduced in the Senate, Referred to Senate Commerce Committee [S1769 Detail]
Download: New_Jersey-2020-S1769-Introduced.html
Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Permits financial institutions to provide financial services to certain hemp-related businesses.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning financial institutions and certain hemp-related businesses and supplementing P.L.2019, c.238 (C.4:28-6 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any law to the contrary, a financial institution may provide financial services to a hemp producer that is authorized by the New Jersey Department of Agriculture, or to a distributor or seller of hemp products. The provision of financial services by a financial institution to a hemp producer or to a distributor or seller of hemp products shall not be a violation of State law, provided that the financial institution complies with the provisions of this act.
b. A financial institution that does business with a hemp producer or with a distributor or seller of hemp products shall comply with all requirements imposed by this act and other requirements imposed pursuant to Title 17 of the Revised Statutes. To the extent that any provision of law pertaining to a financial institution is inconsistent with this act, this act shall control.
c. A financial institution that provides financial services to a hemp producer or to a distributor or seller of hemp products shall adopt policies and practices to comply with guidance pertaining to hemp and financial services issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal "Bank Secrecy Act."
d. As used in this section, "financial institution" means a state or federally chartered bank, savings bank or savings and loan association or any other financial services company or provider, including, but not limited to, broker-dealers, investment companies, money market and mutual funds, credit unions and insurers.
2. The Department of Banking and Insurance, in consultation with the New Jersey Department of Agriculture, shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act.
3. This act shall take effect immediately.
STATEMENT
This bill provides that, notwithstanding any law to the contrary, financial institutions may provide financial services to hemp producers that are authorized by the New Jersey Department of Agriculture and to distributors and sellers of hemp products. The bill provides that the provision of financial services to a hemp producer or to a distributor or seller of hemp products is not a violation of State law, provided that the financial institution complies with the provisions of the bill.
The bill provides that financial institutions that provide financial services to hemp producers, distributers, or sellers must comply with all requirements imposed by the bill and other requirements imposed pursuant to Title 17 of the Revised Statutes. To the extent that any provision of law pertaining to a financial institution is inconsistent with the bill, the provisions of the bill control.
The bill requires financial institutions that do business with hemp producers, distributers, or sellers to adopt policies and practices to comply with guidance pertaining to hemp and financial services issued by the Financial Crimes Enforcement Network under 31 U.S.C. s.5311 et seq., the federal "Bank Secrecy Act."
As used in the bill, "financial institution" means a state or federally chartered bank, savings bank or savings and loan association or any other financial services company or provider, including, but not limited to, broker-dealers, investment companies, money market and mutual funds, credit unions and insurers.
