New York State Senator Jeremy Cooney Introduces New Cannabis Banking Bill, Here Are The Details

New York State Senator Jeremy Cooney presented the first of two pieces of cannabis legislation that should help advance efficiency and compliance across the marijuana banking industry, reported Syracuse. 

Under the so-called Cannabis Banking and Disclosure Act,  Senate Bill S8758, New York's Office of Cannabis Management (OCM) would be allowed to share information gathered from applicants and licensees with financial institutions that are considering providing banking services to marijuana businesses. In short, the OCM would be authorized to share this data for the “purpose of consideration and compliance.”

“Allowing financial institutions access to verified information will improve efficiency and compliance in cannabis banking assisting with ‘Know Your Client’ and reporting requirements,” Sen. Cooney’s office told NY Cannabis Insider on Tuesday.

Sen. Cooney said he is conferring with Rep. Ed Perlmutter (D-CO) to come up with a banking solution that would fit New York's legal marijuana program.

“I’ve been working with SAFE sponsor, Rep. Ed Perlmutter from Colorado, on this issue, and while federal action is needed, I know that we as a state cannot afford to wait,” Cooney said.

The Cannabis Banking and Disclosure Act is one of two banking-related marijuana bills the senator plans to present this April.

Cannabis And Banking

Among the most serious issues facing the booming cannabis industry is banking. Due to the Schedule I status of cannabis, most financial institutions are reluctant to provide services to marijuana businesses, including in the 18 states where it is fully legal.

Obliged to operate on a cash-only basis, cannabis companies are increasingly targetted by robberies, in some cases violent. In Washington State, a rise in the number of armed robberies of cannabis shops compelled the State Liquor and Cannabis Board to declare that “the lack of banking services has become a catalyst for a very real public safety crisis.”

“Due to their forced reliance on cash transactions, cannabis retailers have increasingly become targets for armed robbers,” the board stated.

Are there other solutions to avoid cash in the industry? 

Fortunately, over the years things have changed and cannabis businesses and their customers now have more options. Some of the companies they can be thankful to include CanPay, Hypur Aeropay, Dutchie and KindPay.

What about new laws to protect financial institutions that wish to support and take part in the marijuana space?

There’s the Secure and Fair Enforcement (SAFE) Banking Act, which was introduced by Colorado's Perlmutter and managed to pass the US House six times in the last three years. It still has to pass the Senate however, though many cannabis industry experts agree that it has more of a chance to pass than the MORE Act, which aims to legalize cannabis on the federal level. 

Until that happens, it looks like each state has to fight its own battles. 

Photo: Courtesy of NY Senate Media Services via Wikimedia Commons