Assembly Notice of Public Hearing — Cannabis Banking in New York State (May 11th, 2023)

Summary

A Notice of Public Hearing from the Assembly Standing Committee on Banks and the Assembly Standing Committee on Economic Development, Job Creation, Commerce and Industry on Cannabis Banking in New York State. The hearing is set for Thursday, May 11th, 2023, at 10:00 A.M. in Hearing Room C, Legislative Office Building, Albany, to examine how to establish a legal framework for banking services to cannabis businesses. The notice says adult-use cannabis businesses operate as cash-only businesses because cannabis is still a federal controlled substance, and it cites 2014 FinCEN guidance and the 2013 Cole Memorandum. It is signed by committee chairs Pamela Hunter and Harry Bronson and includes a reply form due Monday, May 8th, with testimony limited to five minutes.

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                       ASSEMBLY STANDING COMMITTEE ON BANKS

 ASSEMBLY STANDING COMMITTEE ON ECONOMIC DEVELOPMENT, JOB CREATION,
                     COMMERENCE AND INDUSTRY

                                 NOTICE OF PUBLIC HEARING

SUBJECT:       Cannabis Banking in New York State

PURPOSE:       The purpose of the hearing is to examine how to establish a legal framework in
               providing banking services to cannabis businesses in New York State

                                              Albany
                                    Thursday, May 11th, 2023
                                         Hearing Room C
                               Legislative Office Building, 2nd Floor
                                            10:00 A.M.


Recreational adult-use cannabis is now legal to cultivate, process, distribute and sell at retail to
adults 21-years and older in New York State. However, cannabis is still labeled a controlled
substance at the federal level, which results in restricted access to federally regulated banks
and financial services. New York’s adult-use cannabis businesses currently operate as cash-
only businesses.

Operating a cash-only business raises challenges including security, payroll, access to loan-
products, and recordkeeping. These challenges impact both the legal cannabis-related
businesses and the banks seeking to provide services.

In 2014, the U.S. Department of Treasury issued guidance, Financial Crimes Enforcement
Network (Fin CEN), related to how financial institutions can provide services to the legal
cannabis industry sector that are consistent with other banking requirements. On March 1st,
2023, U.S. Attorney General Merrick Garland announced plans before the U.S. Senate to
reinstate protections outlined in the 2013 “Cole Memorandum,” which provided states with
regulated cannabis industries a limited pathway to conduct business. The states of California
and Colorado, who have legalized recreational cannabis, have used Fin Cen guidance to
authorize    state-chartered banks and credit unions to provide cannabis businesses with
essential banking services. The committees seek to analyze challenges and barriers to
providing banking services to legal adult-use cannabis businesses and examine pathways to
allowing banking services to the burgeoning cannabis industry in New York.

Persons wishing to present pertinent testimony to the Committees at the above hearing should
complete and return the enclosed reply form as soon as possible. It is important that the reply
form be fully completed and returned so that persons may be notified in the event of emergency
postponement or cancellation.

Oral testimony will be limited to five minutes’ duration. In preparing the order of witnesses, the
Committees will attempt to accommodate individual requests to speak at times in view of special
circumstances. These requests should be made on the attached reply form or communicated to
Committee staff as early as possible.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The
Committees would appreciate advance receipt of prepared statements.

Attendees and participants at any legislative public hearing should be aware that these
proceedings are video recorded. Their likenesses may be included in any video coverage
shown on television or the internet.
To further publicize these hearings, please inform interested parties and organizations of the
Committees’ interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance
with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with
Disabilities Act (ADA), has made its facilities and services available to all individuals with
disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable
request, to afford such individuals access and admission to Assembly facilities and activities.


                                        Pamela Hunter
                                      Member of Assembly
                                            Chair
                                      Committee on Banks


                                  Harry Bronson
                               Member of Assembly
                                       Chair
      Committee on Economic Development, Job Creation, Commerce and Industry
                              PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on Cannabis Banking in New York
State are requested to complete this reply form by Monday, May 8th and mail or email to:

                                        Gerson Murillo
                                        Policy Analyst
                              Assembly Committee on Banks
                                     Room 513 - Capitol
                                  Albany, New York 12248
                           Email: murillonunezg@nyassembly.gov
                                   Phone: (518) 455-4857


      I plan to attend the following public hearing on providing banking services to Cannabis
      dispensaries to be conducted by the Assembly Committee on Banks on May 11th, 2023

      I plan to make a public statement at the hearing. My statement will be limited to five
      minutes, and I will answer any questions which may arise. I will provide 10 copies of
      my prepared statement.

      I will address my remarks to the following subjects:




      I do not plan to attend the above hearing.

      I would like to be added to the Committee mailing list for notices and reports.

      I would like to be removed from the Committee mailing list.

      I will require assistance and/or handicapped accessibility information. Please specify
      the type of assistance required: _________________________________________
      _____________________________________________________________________


NAME: _____________________________________________________________________

TITLE: _____________________________________________________________________

ORGANIZATION: ____________________________________________________________

ADDRESS: _________________________________________________________________

E-MAIL: ____________________________________________________________________

TELEPHONE: _______________________________________________________________

FAX TELEPHONE: ___________________________________________________________


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