New York State Assembly

 
•  Summary 
 
•  Actions 
 
•  Committee Votes 
 
•  Floor Votes 
 
•  Memo 
 
•  Text 
 
•  LFIN 
 
•  Chamber Video/Transcript 

A07388 Summary:

A07388 Actions:

A07388 Committee Votes:

Committee:BANKS   Chair:Hunter      
DATE:05/23/2023AYE/NAY:28/3  Action: Favorable refer to committee Rules        
Hunter
Aye
Curran
Aye
Weprin
Aye
Mikulin
Nay
Jean-Pierre
Aye
Smullen
Aye
Seawright
Aye
Fitzpatrick
Nay
Dickens
Aye
Lemondes
Aye
Vanel
Aye
DiPietro
Nay
Taylor
Aye
Jensen
Aye
Stern
Aye
Chang
Aye
Hevesi
Aye
Flood
Aye
Sayegh
Aye
Burke
Aye
Buttenschon
Aye
Anderson
Aye
Mitaynes
Aye
Septimo
Aye
Tapia
Aye
De Los Santos
Aye
Cunningham
Aye
Rivera
Aye
Lee
Aye
Raga
Aye
Burdick
Aye

Committee:RULES   Chair:Pretlow      
DATE:05/24/2023AYE/NAY:28/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Weinstein
Aye
Hawley
Excused
Pretlow
Aye
Giglio
Aye
Cook
Aye
Blankenbush
Aye
Glick
Aye
Norris
Aye
Aubry
Aye
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Aye
Peoples-Stokes
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Zebrowski
Aye
Thiele
Aye
Braunstein
Excused
Dickens
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye

A07388 Floor Votes:

A07388 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A7388
 
SPONSOR: Peoples-Stokes

 
TITLE OF BILL:
 
An act to amend the cannabis law, in relation to sharing information
obtained from applicants and licensees
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
The purpose of this bill is to assist cannabis licensees and applicants
navigate the banking systems by allowing the sharing of information
between the Office of Cannabis Management and financial institutions.
 
 
SUMMARY OF PROVISIONS:
 
Section one authorizes the Office of Cannabis Management to share licen-
see and applicant information with requesting financial institutions,
upon consent of the licensee or applicant.
 
Section two provides an immediate effective date.
 
 
JUSTIFICATION:
 
Federal scheduling of cannabis creates challenges to banking licensed
cannabis companies. Due to rigorous federal compliance rules and anti-
money laundering laws, financial institutions face increased costs and
little to no incentive to take on cannabis businesses as clients. A
financial institution servicing a cannabis business must make a suspi-
cious activity report for every transaction the client makes with the
bank. The costly burden imposed by additional compliance and reporting
measures prevents most financial institutions from banking cannabis
companies, even if they want to.
 
This legislation authorizes the Office of Cannabis Management to
disclose information about licensees and applicants to financial insti-
tutions requesting information upon consent of the licensee or appli-
cant. This will allow financial institutions to have access to verify
personal and financial information for their prospective cannabis
clients. It will improve the 'Know Your Customer' compliance and make it
easier and less costly for financial institutions who want to bank
cannabis businesses to comply with the federal reporting.
 
Access to financial services is not just an economic issue, it also
impacts public safety. Cash businesses are more readily exploited for
money laundering and other nefarious purposes, which undermines the
public policy goal of creating safe, legal and regulated markets.  Addi-
tionally, it creates personal safety risks for the cannabis workers
handling the large amounts of cash. This legislation furthers the social
equity goals set in the MRTA by removing some of the financial and
systemic barriers that can prevent individuals from participating in the
market safely.
 
 
PRIOR LEGISLATIVE HISTORY:
 
This is a new bill.
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
None.   
EFFECTIVE DATE:
Immediately.

A07388 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7388
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 19, 2023
                                       ___________
 
        Introduced  by  M. of A. PEOPLES-STOKES -- read once and referred to the
          Committee on Banks
 
        AN ACT to amend the cannabis law, in  relation  to  sharing  information
          obtained from applicants and licensees
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 11 of the cannabis law is amended by adding  a  new
     2  subdivision 16 to read as follows:
     3    16.  To  share  any  and  all information obtained from applicants and
     4  licensees, as defined in section three of this  chapter,  to  requesting
     5  financial  institutions for the purpose of consideration and compliance,
     6  with the consent of such applicants and licensees.
     7    § 2. This act shall take effect immediately.
 
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02681-05-3