This is really in 2 days. Huge for the industry. I wonder if individual investors will even know about it. I wonder if banks and other institutions will finally start buying shares of cannabis companies in bigger lots than the dabbling they've done.
More big cannabis news is coming out of the U.S. House of Representatives.
A bipartisan bill that would allow access to financial services for cannabis businesses — called the Secure and Fair Enforcement (SAFE) Banking Act — will be voted on as early as Wednesday, September 25, House leadership has confirmed.
“We will consider several bills under suspension of the rules,” said Majority Leader Steny Hoyer (D-MD). “Including H.R. 1595, the SAFE Banking Act of 2019, as amended.”
If passed, the SAFE Banking Act will also provide protection to banks who service state-licensed cannabis companies — as it stands, these banks would face penalties from federal financial regulators. In order for the bill to pass — which has been receiving strong support from both sides of the aisle — it requires endorsement from two-thirds of the chamber.
All in Favor, Say “Aye”
For many stakeholders, Hoyer’s announcement of the SAFE Banking Act vote represented a win for both the cannabis and banking industries.
“After six years of working on this bill, the SAFE Banking Act will go a long way in providing certainty for financial institutions to work with cannabis businesses and getting cash of our streets to make our communities safer,” said Ashley Verville, Director of Communications for Rep. Ed Perlmutter (D-CO). “SAFE Banking is a narrowly focused bill that serves as the ice-breaker for this Congress to take up additional marijuana legislation. We appreciate the strong broad, bipartisan coalition of support behind this bill, and look forward to the vote next week.”
Morgan Fox, Director of Media Relations for National Cannabis Industry Association, echoed the sentiment coming out of Perlmutter’s camp:
“We are very pleased that the broad support for this much-needed reform has finally led to a vote,” said Fox. “Small businesses cannot afford to delay access to financial services, and every day that traditional lending and banking is denied to the cannabis industry is another day that marginalized communities will continue to be left behind by the opportunities created in legal cannabis markets. The time to act is now. Success next week will only improve our chances for more comprehensive reforms in the future.”
The CEO of the Cannabis Trade Federation, Neal Levine, also came out in favour of Hoyer’s announcement.
“We applaud the House for taking up this vital piece of cannabis policy reform that will greatly increase public safety within the markets we operate while helping to address some of the challenges that we face regarding equity,” said Levine.
Additionally, the bill has received widespread support from a number of major financial associations, including The American Bankers Association, the Credit Union National Association, the National Association of State Treasurers, the Independent Community Bankers of America, and the National Bankers Association.
A plan that would allow medical marijuana dispensaries in Mundelein to sell their products to recreational users is moving forward.
After more than three hours of public comment Monday night, trustees voted 4-2 to direct administrators to draft the appropriate amendments to the village's zoning code.
Trustee Erich Schwenk proposed the motion, which was not on the agenda for the evening's meeting. Despite procedural objections from village attorney Kelly Cahill and Mayor Steve Lentz, trustees voted on the proposal.
Schwenk was joined by trustees Kara Lambert, Robin Meier and Kerston Russell. Trustees Ray Semple and Dawn Abernathy cast "no" votes. Abernathy, who was out of town due to a family matter, participated by phone.
There was little debate.
Mayor Steve Lentz said stemming drug addiction and drug-related deaths has been a priority during his tenure, and it would be wrong to urge kids to say no to drugs but then allow recreational marijuana sales.
Abernathy, who has been public about a daughter's battle with drug addiction, spoke against allowing recreational sales in town while affirming support for medical marijuana sales. She said allowing recreational sales is contrary to Mundelein's family-friendly image.
She also said the village should be cutting spending rather than raising more tax revenue through marijuana sales.
Moments later, Abernathy drew the audience's ire when she noted that if the proposal progresses, Mundelein would join Waukegan and North Chicago as communities where marijuana is available.
"That is the company that we're going to be keeping," she said.
Abernathy's remark led to groans, boos and cries of "racist" and "that's terrible" from the audience. Both those communities have large minority populations, and neither city's leaders have approved recreational sales.
When asked to clarify her comment Tuesday, Abernathy said she's spoken with representatives from both cities and expects they will allow recreational sales.
"We often hear from (our) residents they want to be more like Libertyville, Vernon Hills and Grayslake. Those villages are leaning toward opting out," Abernathy said. "There was absolutely nothing racist in my comment."
No other trustees shared their opinions of the proposal or the new law.
Starting Jan. 1, anyone 21 or older can possess up to 30 grams of cannabis, 5 grams of cannabis concentrate and 500 milligrams of tetrahydrocannabinol, or THC, in Illinois.
Sales will be allowed at state-licensed dispensaries. Individual communities, however, can restrict or ban cannabis-related businesses.
Only one medical marijuana facility operates in Mundelein. The Clinic Mundelein, 1325 Armour Blvd., opened in 2015 and this summer became one of the first businesses in Illinois to get a state license for recreational sales.
The Clinic is owned by a Chicago company called Green Thumb Industries. In a statement issued Tuesday morning, a spokeswoman said the company looks forward to "bringing additional jobs and tax revenue to Mundelein."
Monday's vote followed comments from dozens of Mundelein residents and other people on both sides of the issue.
The village board will discuss the proposal further during a committee-of-the-whole meeting set for 6 p.m. Oct. 14, at village hall, 300 Plaza Circle.
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