Next month, New York legislators will convene a meeting of two separate committees to discuss establishing a legal framework to provide banking services for the state’s cannabis industry.
The Assembly Banks Committee and Economic Development, Job Creation, Commerce and Industry Committee jointly announced Monday the public hearing for May 11. The Assembly Banks Committee and Economic Development, Job Creation, Commerce and Industry Committee announced the May 11 public hearing on Monday.
New York has legalized cannabis for adult use, and opened the first few licensed retailers within the last few months. However, federal prohibition prevents businesses from accessing traditional financial services. This results in a business model dominated by cash, which legislators are trying to fix.
A hearing memorandum states that “operating a cash-only company raises many challenges, including payroll, loan products and record-keeping.” These challenges affect both legal cannabis-related business and banks that are seeking to provide services.
The notice discusses the U.S. Attorney General’s indication that the Justice Department could reinstitute federal guidelines on enforcement priorities. California and Colorado used separate 2014 FinCEN guidance to open state-chartered credit unions and banks to service their state cannabis markets.
The New York committees are “seeking to analyze challenges and obstacles to providing banking service to legal adult-use marijuana businesses and examine paths to allow banking services to New York’s burgeoning industry of cannabis.”
The hearing notice includes a form for people to fill out if they wish to speak.
The duration of oral testimony is limited to five minute. The Committees will try to accommodate requests for individual speakers to speak in certain circumstances when preparing the order. Please make these requests on the reply form attached or inform Committee staff as soon as possible. Please submit ten copies of all prepared testimony at the registration desk. Committees will appreciate receiving prepared statements in advance.”
New York legislators have already introduced multiple pieces of legislation in this session, either to create a public banking institution to serve the cannabis sector or to study it formally.
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The announcement of the public hearing comes just days after a State Senator announced a Senate Cannabis Subcommittee, which will “provide a channel for entrepreneurs, advocates and industry, as well as citizens who are interested in the new market.”
The chair of this panel, Sen. Jeremey (D), submitted a bill in the last year that allows regulators to reveal certain information regarding cannabis licensees. This is a move to give the financial sector greater peace of mind when banking the cannabis industry.
State lawmakers are increasingly pushing for state-level solutions as efforts to pass bipartisan reforms in marijuana banking continue to stagnate on the Senate’s side.
Last week, Senate Majority leader Chuck Schumer (DNY) stated that he is committed to passing , a package of incremental cannabis reform legislation , which he pushed for last year. This package will include cannabis banking and expungements laws.
Rep. Earl Blumenauer, D-OR, who filed a last-week bill to permit marijuana businesses to claim federal tax deductions, stated at a press briefing recently that he believes it is important that advocates align with lawmakers on any incremental proposals that will end the drug-war, cautioning against an “all or nothing” mentality.
Last week, Sen. Cory Booker of NJ said that lawmakers were working on “reviving” the SAFE Plus package that was passed during the last session. He acknowledged that the failure to pass a banking solution for the industry would “literally mean that hundreds of businesses will go out of business.”
The article New York Lawmakers Announce Joint Committee Hears On Marijuana Banking first appeared on Marijuana Moment.
