-  This bill is not active in this session.
 
     
  •  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

A07388 Summary:

BILL NOA07388
 
SAME ASSAME AS S01047-A
 
SPONSORPeoples-Stokes
 
COSPNSR
 
MLTSPNSR
 
Amd 11, Cannabis L
 
Relates to sharing information obtained from applicants and licensees and requesting financial institutions for the purpose of consideration and compliance.
Go to top    

A07388 Actions:

BILL NOA07388
 
05/19/2023referred to banks
05/23/2023reported referred to rules
05/24/2023reported
05/24/2023rules report cal.298
05/24/2023ordered to third reading rules cal.298
05/30/2023passed assembly
05/30/2023delivered to senate
05/30/2023REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
06/06/2023SUBSTITUTED FOR S1047A
06/06/20233RD READING CAL.1623
06/06/2023PASSED SENATE
06/06/2023RETURNED TO ASSEMBLY
11/13/2023delivered to governor
11/17/2023signed chap.647
Go to top

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.
Go to top

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
Go to top