Financial services for hemp businesses

The Texas Legislature has passed the Hemp Farming Act, a bill which legalizes the cultivating and processing of hemp and the commercial sale of hemp products. Hemp farming was legalized on the federal level in late 2018. The Texas bill goes into effect Sept. 1, 2019, but regulations will need to be issued on both the state and federal levels.

The state’s agriculture department will submit a plan to the USDA for approval and, after receiving the approval, the agriculture department and the Health and Human Services agencies will adopt rules to implement the changes in law made by this act.

If a credit union chooses to offer financial services to a hemp business, it must be aware that the businesses are considered high risk and the credit union must do their due diligence to ensure the businesses remain in compliance with all regulations.

For more detailed information, visit the InfoSight Manual.

Cornerstone Credit Union League Regulatory and Compliance Counsel Suzanne Yashewski will issue guidelines for those wishing to serve the hemp industry businesses as soon as the regulations are approved. Contact her at syashweski@cornerstoneleague.coop or 512-853-8516 for more information on this issue.