Marijuana Banking Closed-loop Payment Processing System INDUSTRY STAKEHOLDER MEETING ZACH CONINE NEVADA STATE TREASURER 1
Background Assembly Bill 466 Signed by Governor Sisolak June 5, 2019 Requires State Establishes Pilot Treasurer to Program in the Requires system(s) contract with one Pilot Program State Treasurer’s to be up and or more qualified expires July 1, Office for a closed- running by July 1, vendors to 2023. loop payment 2020. establish processing system. system(s). 2
Goals Cash-based businesses create inherent public safety risks by holding, transporting, and Safe distributing large sums of cash. These risks can be mitigated by a closed-loop payment processing system which will hold and distribute cash transactions internally. A closed-loop payment processing system will track and record every transaction so that Transparent users, law enforcement, and regulatory bodies know exactly when and where money is coming and going. Cash-based businesses create operational inefficiencies by demanding additional time and resources for processes such as ensuring accuracy in bill counts, securing cash, and Efficient transporting cash. A closed-loop payment processing system will eliminate or reduce these processes. A closed-loop payment processing system will discourage bad actors and criminal enterprises Lawful from taking advantage of the current cash-based business model. 3
Clo lose sed-loo loop p Cash deposited into payment ent machine, system proc rocessing sing sy system em creates tokens. example le State Treasurer Cash held in receives request machine. for redemption, redeems tokens for USD. Tokens used System to purchase Cash redeems goods and tokens for State Treasurer holds Vendor(s) pick services (step USD. cash via state banking up cash from repeats). partner until request for cash deposit redemption is received. machines. Vendor transports cash to State Treasurer’s banking partner. Final vendor Supplier uses requests tokens to pay redemption. final vendor. 4
• Request for Proposals issued for closed-loop October 2019 payment processing vendors • Deadline for proposal submission • Evaluation period • Potential vendor presentations Anticipated Savings Products • Selection of vendors Education & Assistance Services Timeline • Required approval from Interim Finance Committee • Board of Examiners approval • Contract begins • Closed-loop payment processing system(s) July 1, 2020 up and running 5
Opportunities for feedback 6
Questions ➢ What percentage of your revenues are devoted to cash handling? ➢ How many transactions does your business encounter each day? ➢ What would make you most/least likely to use the system? 7
Questions cont’d ➢ Do you believe customers would use the system? ➢ What other types of businesses or entities do you engage with on a regular basis that would benefit from using the system? (e.g., utilities, suppliers, licensing and taxing authorities, etc.). ➢ What features should be included to ensure the most effective program for your business and your employees? 8
Marijuana Banking Closed-loop Payment Processing System CONTACT: ASK@NEVADATREASURER.GOV 9
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