How to Choose a Lobbyist
Since the early 2000s, there has been a steady increase in the amount of government activity that has directly affected healthcare stakeholders. Prior to this time-period, companies could afford to focus only on differentiating their products from their competitors. Now companies are finding that during their strategic planning meetings, they must account for how state and federal government activity may impact their bottom line. In addition to having a Government Affairs staff, these same companies are starting to realize the importance of having established a relationship with a lobbyist. The question is how do you find the right lobbyist for your organization?
Since the early 2000s, there has been a steady increase in the amount of government activity that has directly affected healthcare stakeholders. Prior to this time-period, companies could afford to focus only on differentiating their products from their competitors. Now companies are finding that during their strategic planning meetings, they must account for how state and federal government activity may impact their bottom line. In addition to having a Government Affairs staff, these same companies are starting to realize the importance of having established a relationship with a lobbyist. The question is how do you find the right lobbyist for your organization?
First you want to make sure the lobbyist has experience. To be a good lobbyist there is no magic number of how many years you have worked within the political system. However; many lobbyists have worked an average of six months in the legislature as an aide to a legislator or on the other side of the spectrum, many legislators have left the legislature to work as a lobbyist. These individuals have an insider’s perspective into how the legislature works such as when a bill filing deadline date is and whether or not a bill can be introduced due to if a state is in an emergency session where the rules for introducing legislation is different from regular session.
Second the lobbyist should have a minimum number of contacts in the legislature. Whether it is in Congress or on the state level, the lobbyist should be able to have a go to legislator that can get a bill introduced quickly. However; the most successful lobbyist will not be limited to one party. Having contacts on both sides of the aisle will allow the lobbyist the opportunity to bring any bill at any time regardless of what political party has the majority.
Third the best lobbyist should be strategic. He or she should be able to know when a good time to introduce legislation is. The lobbyist should know what legislator to target as the bill sponsor. This is important because the bill sponsor will be the champion for your particular bill from start to finish. The lobbyist will need to educate the bill sponsor on the nuances of the bill so that the sponsor will be educated enough to be able to respond to technical questions during a hearing or when the sponsor is in caucus meetings; explaining to their respective party about why your bill should be voted on. The lobbyists should be able to pick and choose what committee will be best for your bill to go into, who to use as strategic allies for your legislation and be intuitive enough on when to negotiate and when not to.
Next it is important for your lobbyist to know the industry and to have foresight. You need to be comfortable knowing that your lobbyist understands your industry because if not, how can you be sure that your lobbyist is communicating the correct outcome for you? The lobbyist should be skilled enough to draft a bill that solves your problem without having to continuously ask you how something works. Additionally, while many lobbyists only focus on the legislature, the best lobbyists will think long-term to determine if a regulatory body will be involved once your bill passes. If so a lobbyist should be able to guide you through the regulatory process without leaving you to fend for yourself after a bill has passed.
Finally, as with any other professional, you need to be aware of the reputation your lobbyist has. Do they take the time to make sure their clients understand everything that is happening? Does the lobbyist prepare the client and relevant legislators ahead of time for crucial hearings? Does the lobbyist make everything easy to understand? Does the lobbyist dress appropriately for meetings and do they have the needed respect from the legislature? Does the lobbyist closely follow the bill from start to finish or are they overloaded with too many clients? These are important issues to talk with your prospective lobbyist about before entering into a contractual relationship.
While there are other nuances to the lobbying relationship, these should be enough for you to think about as your organization considers whether to engage a lobbyist. Lobbyist should no longer be considered a luxury item. The best lobbyist are quickly becoming essential parts of today’s corporate environment for the value they bring to their clients in either advancing their interests through legislation, or being available to respond to legislative targeting that has been on the rise. You know you have picked the right lobbyist when you can breathe a sigh of relief knowing that they have your back.
Lanton Law is a national boutique law and government affairs firm that closely monitors legislative, regulatory and legal developments for our clients. We help stakeholders understand what’s at issue so that we can help our valued clients achieve their priorities. Contact us to learn about how either our legal or lobbying services can help you attain your goals.
CFPB Will Invoke Dormant Authority to Scrutinize Nonbank Companies
The Consumer Financial Protection Bureau (CFPB) issued an announcement that it is “invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. The CFPB believes that utilizing this dormant authority will help protect consumers and level the playing field between banks and nonbanks. The CFPB is also seeking public comments on a procedural rule to make this process more transparent.”
The Consumer Financial Protection Bureau (CFPB) issued an announcement that it is “invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. The CFPB believes that utilizing this dormant authority will help protect consumers and level the playing field between banks and nonbanks. The CFPB is also seeking public comments on a procedural rule to make this process more transparent.”
Additionally, “Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB has authority to use traditional law enforcement to stop companies from engaging in conduct that pose risk to consumers; this can involve adversarial litigation. However, the law also gives the CFPB authority to conduct supervisory examinations to review the books and records of regulated entities. CFPB examiners typically provide a report to entities with problems that need to be addressed, and responsible institutions typically take prompt corrective action.”
Fintech has been an area that has been ahead of regulatory changes, but as we have been forecasting to industry stakeholders this may be about to change. It is imperative that you have a strategic plan going forward.
Lanton Law is a national boutique regulatory law and lobbying firm that focuses on technology and healthcare/life science. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.
SAFE Banking Act Passes House in Defense Legislation
The House of Representatives has passed by voice vote an amendment to the National Defense Authorization Act (NDAA) by adding the Secure and Fair Enforcement (SAFE) Banking Act to the legislation.
The House of Representatives has passed by voice vote an amendment to the National Defense Authorization Act (NDAA) by adding the Secure and Fair Enforcement (SAFE) Banking Act to the legislation. The bill would give safe harbors to financial institutions servicing cannabis industry stakeholders. The text of the SAFE Banking Act can be found here.
Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically we have expertise in cannabis and CBD related issues.
If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.
President Biden Issues Executive Order Aimed at Multiple Industries
President Biden has issued an Executive Order (EO) titled Executive Order on Promoting Competition in the American Economy.
President Biden has issued an Executive Order (EO) titled Executive Order on Promoting Competition in the American Economy. The EO advocates for promoting “competition in the American economy, which will lower prices for families, increase wages for workers, and promote innovation and even faster economic growth.” In doing so multiple sectors of the economy including labor, healthcare, transportation, agriculture, communications, technology, banking and finance have been targeted.
As our economy emerges from the pandemic, we foresee that state and federal policymakers will be taking a look to see what laws need to be strengthened or reworked for our reimagined economy.
Lanton Law is a national boutique law and lobbying firm that focuses on highly regulated industries such as healthcare, technology, and finance. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.
SAFE Banking Act introduced Into the U.S. Senate
U.S. Senators Merkley (D-OR) and Daines (R-MT) have introduced the Secure and Fair Enforcement (SAFE) Banking Act, to ensure that legal cannabis operators have access to banking services. The bill can be viewed here.
U.S. Senators Merkley (D-OR) and Daines (R-MT) have introduced the Secure and Fair Enforcement (SAFE) Banking Act, to ensure that legal cannabis operators have access to banking services. The bill can be viewed here.
According to the press release, the proposed bill prevents federal banking regulators from the following:
Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as an lawyer or landlord providing services to a legal cannabis business);
Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business;
Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses; or
Taking any action on a loan to an owner or operator of a cannabis-related business.
Furthermore, the press release states that bill also:
Creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services. The bill also provides protections for hemp and hemp-derived CBD related businesses.
Requires banks to comply with current Financial Crimes Enforcement Network (FinCEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational cannabis policies.
The House version has already been filed for this Congressional session. Additional background on this bill and issue can be found on Congressman Perlmutter’s website.
Lanton Law is a national boutique law and lobbying firm that focuses on healthcare/life sciences and technology. Specifically our cannabis practice helps all supply chain entities from growers, financiers, suppliers, dispensers to ancillary services.
If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.
Lanton Strategies: D.C. Based Lobbying Firm with No State Boundaries
COVID-19 has changed the way that we interact in a variety of ways. One of them being the way that businesses large and small interact with the government. Gone are the days where we can meet people in person without having to worry about travel restrictions and COVID-19 protocol. What remains is that businesses still need to get their voices heard. This is where Lanton Strategies has a strategic advantage.
COVID-19 has changed the way that we interact in a variety of ways. One of them being the way that businesses large and small interact with the government. Gone are the days where we can meet people in person without having to worry about travel restrictions and COVID-19 protocol. What remains is that businesses still need to get their voices heard. This is where Lanton Strategies has a strategic advantage.
For years our firm has made connections nationwide that have allowed us to tap our business and industry rolodex in order to get client goals realized. Our unique holistic approach enables us to lobby legislators and regulators, no matter the state. In essence we are that “digital lobbyist firm” that you need.
If you are looking for federal or state solutions and you’re unsure how to get something done, contact Lanton Strategies; a division of Lanton Law
Secure and Fair Enforcement Banking Act of 2019 Still Pending in Congress
The Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act) is still pending in Congress. Also known as H.R. 1595, the bill proposes to create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
The Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act) is still pending in Congress. Also known as H.R. 1595, the bill proposes to create protections for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses.
In May 2020 the SAFE Banking Act language was included in the U.S. House stimulus bill called the The Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, which aimed to provide $3 trillion in economic relief in response to the COVID-19 economic effects on the U.S.
The bill is currently in the U.S. Senate whose future during this session is uncertain.
Lanton Law is a national boutique law and government affairs firm that focuses on healthcare/life sciences and technology. Specifically we have expertise in cannabis and CBD related issues.
If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today!
Will 2021 Witness the Creation of More State Green Banks?
With the incoming Biden Administration, the President elect has announced his new environmental plan “To Build a Modern, Sustainable Infrastructure and Equitable Clean Energy Future.” Among the various policy points discussed in the plan, one interesting initiative describes the development of “innovative financing mechanisms that leverage private sector dollars to maximize investment in the clean energy revolution.” This last sentence reminds me of what happened in Connecticut with regards to their Green Bank.
With the incoming Biden Administration, the President elect has announced his new environmental plan “To Build a Modern, Sustainable Infrastructure and Equitable Clean Energy Future.” Among the various policy points discussed in the plan, one interesting initiative describes the development of “innovative financing mechanisms that leverage private sector dollars to maximize investment in the clean energy revolution.” This last sentence reminds me of what happened in Connecticut with regards to their Green Bank.
The Connecticut Green Bank is the first green bank in the country. According to the Bank’s website “Established by the Connecticut General Assembly on July 1, 2011 as a part of Public Act 11-80, Connecticut Green Bank supports the Governor’s and Legislature’s energy strategy to achieve cleaner, less expensive, and more reliable sources of energy while creating jobs and supporting local economic development. The Connecticut Green Bank evolved from the Connecticut Clean Energy Fund (CCEF) and the Clean Energy Finance and Investment Authority (CEFIA), which was given a broader mandate in 2011 to become the Connecticut Green Bank.
Our mission is to confront climate change and provide all of society a healthier and more prosperous future by increasing and accelerating the flow of private capital into markets that energize the green economy.
Our green bank model upended the government subsidy-driven approach to clean energy by working with private-sector investors to create low-cost, long-term sustainable financing to maximize the use of public funds. We continue to innovate, educate and activate to accelerate the growth of green energy measures in the residential (single and multifamily), commercial, industrial, institutional and infrastructure sectors.”
With the incoming Administration’s intent to push into green energy and region’s like New England that have so many industries relying on a stable environment, it will not be surprising to see states create green banks like Connecticut’s in order to jumpstart local economies.
At Lanton Law we understand the complexities of how green energy plays into business strategies. Contact us to learn about how either ourlegal orlobbying services can help you attain your goals.
The Rise of the Special Purpose Acquisition Company (SPAC)
With the tumultuous chain of events we have witnessed throughout 2020, we have also been hearing more about the rise of SPACs. We have been getting asked more about SPACs such as what they are and what is their role within Wall Street?
With the tumultuous chain of events we have witnessed throughout 2020, we have also been hearing more about the rise of SPACs. We have been getting asked more about SPACs such as what they are and what is their role within Wall Street?
A Special Purpose Acquisition Company or SPAC is known as a “blank check company.” This entity’s main function is to raise money through an initial public offering or an IPO in order for the SPAC to make strategic acquisitions by buying other companies.
SPACs raise money similar to a traditional IPO where the SPAC management team will arrange meetings with private equity and hedge fund players to discuss interest in the SPAC offering. These institutional investors will buy into the SPAC offering along with retail investors resulting in the SPAC’s funding. The funds are then moved into a trust until management decides how to deploy the capital.
SPACs may be a more suitable alternative way for some companies to get public funding for an IPO. For example when a private company is seeking an IPO, there are a myriad of steps to go through when dealing with the Securities & Exchange Commission (SEC).
Additionally, there are a lot of behind the scenes strategic conversations regarding how a company attains a particular stock price when it debuts on one of the stock exchanges. Pricing is important for companies for a number of different reasons including how much of a profit insiders could realize from selling, etc.
There are also institutional interests at play when it comes to an IPO. Towards the end of the process is when the company’s bank partner(s) assign a share price and then a block of shares are sold at the price to institutional investors who provide the liquidity.
After this process, the company begins the process of being traded on the open market. The problem lately with this is sometimes companies are underpriced from what underwriters believed would be a reasonable price for a company, which means that the block of shares sold to the institutional investors prior to the company’s first day on the market sold for less than the company could have realized. This means there was money oftentimes left of the table.
Not to mention that a company’s stock price goals could also be complicated by outside factors beyond a company’s control such as geopolitical risks and other headline risks that could affect the overall market the day that a company debuts. While companies do try and time these issues out, uncertainty still remains no matter what.
SPACs could offer more certainty and liquidity to companies seeking a direct listing since acquisition prices are pre-negotiated and there are less steps involved when it comes to the SEC, thus shielding companies from market volatility. Overall SPACs offer a faster timeline for companies to go public. SPAC shareholders have the ability to vote for or against an acquisition due to a SPAC’s corporate governance protocols.
As with anything new it wouldn’t be out of the question to expect for SPACs to receive additional regulatory scrutiny. SPAC interests should expect this, especially since there will be an upcoming Administration change.
At Lanton Law not only do we understand the issues, but we provide you with timely solutions to help you make informed decisions about either an acquisition target or ways to maximize value.
We counsel clients by performing corporate due diligence, provide strategic advice for growth and business strategies as well as structuring and executing M&A transactions.
If you are a financial stakeholder including a private equity firm, SPAC, hedge fund, bank, etc. we have a suite of strategic services that can help. Contact us today to learn more.
Online Marketplaces Will Benefit from November 2020 Sports Betting Ballot Initiatives
Online stakeholders in the sports betting market have made policy inroads from the November 2020 ballot initiatives. Below are three states that expanded sport betting capabilities.
Online stakeholders in the sports betting market have made policy inroads from the November 2020 ballot initiatives. Below are three states that expanded sport betting capabilities.
Maryland: The State of Maryland has joined both Virginia and the District of Columbia in legalizing sports betting. Voters passed Ballot Question 2 which allowed for legalized sports betting while having the revenue generated from this to go towards funding public education.
Louisiana: The State of Louisiana approved sports betting in the major cities of Baton Rouge, New Orleans and Lafayette. The following parishes approved the measure as well including: St. Tammany, Jefferson, Ascension, Livingston, St. Bernard, West Baton Rouge, Plaquemines, St. Charles and Terrebonne parishes.
South Dakota: Voters in South Dakota have allowed sport betting as early 2021. By approving Amendment B sports betting is legal in the city of Deadwood as well as the state’s Native American gaming facilities.
Lanton Law’s fintech and online marketplace practice helps stakeholders understand and navigate regulatory complexities. Contact us today to learn more about how our services can help you.
Lanton Law Opens Cannabis Practice
Lanton Law believes that the cannabis market will continue to evolve and expand. Notwithstanding this market potential is the fact that medical and adult-use cannabis operations are confronted with a complex patchwork of state and federal laws and regulations that we assist a variety of businesses with.
Lanton Law believes that the cannabis market will continue to evolve and expand. Notwithstanding this market potential is the fact that medical and adult-use cannabis operations are confronted with a complex patchwork of state and federal laws and regulations that we assist a variety of businesses with.
Whether you are a public or private cultivator, processor, distributor, dispensary, or an ancillary service related to the medical and/or adult-use cannabis business, we can help.
Lanton Law assists our cannabis clients with the following services:
Offer strategic advice on the federal and state outlook
Contract and lease drafting
Corporate formation & governance
Shareholder agreements
Administrative representation
Trademarks and copyrights
FDA, USDA and FTC regulatory compliance
Banking and finance
Licensing
State and local permits
Lobbying
Investor & early stage company issues
Mergers and acquisitions
Non-Compete and Non-Disclosure agreements
Labor and employment
General counsel services
Where Do Biden & Trump Stand On The Issues?
With election season underway many are wondering where the two Presidential candidates stand on the issues of importance to voters.
Reuters did a great summary found here that explains the major differences from the economy, trade, healthcare, etc.
With election season underway many are wondering where the two Presidential candidates stand on the issues of importance to voters.
Reuters did a great summary found here that explains the major differences from the economy, trade, healthcare, etc.
The winner of this election will certainly have policies affecting your interests. Whether you are in technology, healthcare/lifesciences or finance, it is important to know what your organization’s priorities are and to have a plan for either candidate should they win.
Lanton Strategies; a division of Lanton Law is a is a full service federal and state lobbying and government affairs firm that has a menu of services to help you achieve your goals.
Contact us today to get started in understanding your range of options as the new legislative session approaches.
EXIM Policies Impacting Biotechnology & Life Science Stakeholders
The Export-Import Bank of the United States (EXIM) has established some new policies that will impact several stakeholder groups, especially biotechnology, biomedical sciences and life sciences stakeholders.
The Export-Import Bank of the United States (EXIM) has established some new policies that will impact several stakeholder groups, especially biotechnology, biomedical sciences and life sciences stakeholders.
According to the EXIM’s release, the “EXIM’s historic seven-year reauthorization (P.L. 116-94), signed into law December 20, 2019, directs EXIM to establish a new “Program on China and Transformational Exports” (see Sec. 402). The Program’s purpose is to support the extension of loans, guarantees, and insurance, at rates and on terms and other conditions, to the extent practicable, that are fully competitive with rates, terms, and other conditions established by the People’s Republic of China or by other covered countries (as designated by the Secretary of the Treasury). The law charges EXIM with a goal of reserving not less than 20 percent of the agency’s total financing authority (i.e., $27 billion out of a total of $135 billion) for support made pursuant to the program, with a focus on specific industries.”
To achieve full implementation, EXIM will hold a July 16th call with Biotechnology and Biomedical Sciences. Additional information on this call can be found here.
Lanton Law is a national boutique law and government affairs firm that focuses on healthcare/life sciences, technology and finance. If you are an industry stakeholder with questions about the current landscape or if you would like to discuss how your organization’s strategic initiatives might be impacted by either Congress, regulatory agencies or legal decisions, contact us today.
The New Concerns of a Digital Workplace
We are honored to have worked with STACK for Pharmacy on a great and timely webinar titled “The New Concerns of a Digital Workplace. COVID-19 has changed the way that we work, communicate and transfer information and finances. We discuss the early trends of what we are seeing from a transitioning marketplace.
We are honored to have worked with STACK for Pharmacy on a great and timely webinar titled “The New Concerns of a Digital Workplace. COVID-19 has changed the way that we work, communicate and transfer information and finances. We discuss the early trends of what we are seeing from a transitioning marketplace.
With the Debate Over Data Privacy Increasing, Senator Gillibrand Proposes Legislation to Create New Data Protection Agency
U.S. Senator Kirsten Gillibrand (D-NY) has announced the creation of new legislation titled the Data Protection Act. According to the Senator’s press release, the bill would create “the Data Protection Agency (DPA), an independent federal agency that would protect Americans’ data, safeguard their privacy, and ensure data practices are fair and transparent.
U.S. Senator Kirsten Gillibrand (D-NY) has announced the creation of new legislation titled the Data Protection Act. According to the Senator’s press release, the bill would create “the Data Protection Agency (DPA), an independent federal agency that would protect Americans’ data, safeguard their privacy, and ensure data practices are fair and transparent.
The DPA will have the authority and resources to effectively enforce data protection rules—created either by itself or congress—and would be equipped with a broad range of enforcement tools, including civil penalties, injunctive relief, and equitable remedies. The DPA would promote data protection and privacy innovation across public and private sectors, developing and providing resources such as Privacy Enhancing Technologies (PETs) that minimize or even eliminate the collection of personal data. The U.S. is one of the only democracies, and the only member of the Organization for Economic Co-operation and Development (OECD), without a federal data protection agency.”
The proposed bill will have three core missions:
Give Americans control and protection over their own data by creating and enforcing data protection rules
Maintain the most innovative, successful tech sector in the world by ensuring fair competition within the digital marketplace
Prepare the American government for the digital age
Governmental oversight into data is showing no signs of slowing down. Gone are the days where you don’t have to worry about regulations in order to operate. If you are a healthcare, technology and financial services stakeholder, data privacy will be the most important issue to overcome within the next 10-20 years. Ensuring against breaches of personally identifiable information (PII), protected health information (PHI), personally identifiable financial information (PIFI), and other sensitive data will be key to compliance, trust and market competitiveness. Contact Lanton Law so that our experts can use their advocacy and legal services to help you prepare and succeed in a more interconnected world.
Bi-Partisan Political Controversy Surrounding Cashless Stores
On January 30th, the U.S. House Committee on Financial Services held a hearing titled “Is Cash Still King? Reviewing the Rise of Mobile Payments.” The Committee headed by Congresswoman Maxine Waters (D-CA) held this hearing to determine whether businesses should be allowed or prohibited from refusing cash payments in stores. The policy rationale behind the debate is whether cashless stores would have the unintended consequences of harming marketplace access for low-income Americans who do not have a bank account.
On January 30th, the U.S. House Committee on Financial Services held a hearing titled “Is Cash Still King? Reviewing the Rise of Mobile Payments.” The Committee headed by Congresswoman Maxine Waters (D-CA) held this hearing to determine whether businesses should be allowed or prohibited from refusing cash payments in stores. The policy rationale behind the debate is whether cashless stores would have the unintended consequences of harming marketplace access for low-income Americans who do not have a bank account.
In response to the emerging trend of cashless merchants, two Congressional bills have been introduced. H.R. 2650 titled the “Payment Choice Act of 2019 sponsored by Rep. Payne (D-NJ) has 34 co-sponsors and proposes to prohibit retail businesses from refusing cash payments. Rep. Payne argues for Americans to have a choice of how to pay for goods. Also H.R. 2630 sponsored by Rep. Cicilline (D-RI) titled “Cash Always Should be Honored Act,” proposes to make it unlawful for any physical retail establishment to refuse to accept cash as payment.
Late last year Pew Charitable Trust released a study titled “Rise of Cashless Retailers Problematic for Some Consumers” that showed cash remains a vital payment option; at least here in the U.S. While the study listed how proponents of going cashless cited issues such as security, efficiency and an improved customer experience, the study stated “Cash made up nearly 40 percent of in-person transactions in 2017, according to the Federal Reserve, and, although its usage continues to decline, cash is still the most widely used payment type. Further, a Pew survey of consumers in 2018 about their payment experiences found that 78 percent used cash at some point in the previous month; for 14 percent (more than 35 million adults), cash remains the primary method of payment.” The study explored other elements of who is using cash and who isn’t.
The Committee heard from the following witnesses:
Ms. Deyanira Del Rio, Co-Executive Director, New Economy Project,
Mr. Usman Ahmed, Head of Global Public Policy, PayPal,
Mr. Aaron Klein, Fellow, Economic Studies and Policy Director, Center on Regulation and Markets, Brookings Institute,
Ms. Christina Tetreault, Senior Policy Counsel, Consumer Reports,
Ms. Kim Ford, Executive Director, U.S. Faster Payments Council
We expect this to continue to be a point of contention as our society progresses towards modernization. States such as Massachusetts, New York, New Jersey, Pennsylvania and California have and continue to debate this issue, especially with their concerns on lower income access to the marketplace. If you are a technology stakeholder and you are needing guidance in how to navigate federal and state policies on this issue, contact Lanton Law.