Protects financial institutions and insurers doing business with cannabis industry from being penalized by State regulators.

S 1789 protects New Jersey financial institutions and insurers that serve legal cannabis businesses from state penalties. It allows banks, credit unions, and insurers to provide services (like loans, deposits, or insurance) to "legitimate cannabis-related businesses" (such as dispensaries or cultivators operating under state law) without facing action from the Department of Banking and Insurance. The bill requires these institutions to follow general financial regulations, consumer protection laws, and any additional state or federal requirements applicable to their services. This does not override federal law but shields state-regulated entities from state penalties for working with legal cannabis operations. The bill is currently pending in the Senate Commerce Committee.