New York lawmakers will hold a joint meeting of two committees next month to consider establishing a “legal framework” to provide banking services to the state’s marijuana industry.
The Assembly Banks Committee and Economic Development, Job Creation, Commerce and Industry Committee announced the May 11 public hearing on Monday. People interested in testifying are being encouraged to fill out a form and submit it “as soon as possible.”
While New York legalized adult-use cannabis, opening the first handful of licensed retailers in recent months, federal prohibition locks businesses out of traditional financial services, resulting in a largely cash-only business model that legislators are working to address.
“Operating a cash-only business raises challenges including security, payroll, access to loan products, and record-keeping,” a hearing memo says. “These challenges impact both the legal cannabis-related businesses and the banks seeking to provide services.”
The notice discusses how the U.S. attorney general has indicated that the Justice Department may reinstitute federal guidance on enforcement priorities, and California and Colorado have used separate 2014 guidance from the Financial Crimes Enforcement Network (FinCEN) to open state-chartered banks and credit unions to service the state cannabis markets.
The New York committees “seek to analyze challenges and barriers
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