In May the Illinois General Assembly voted overwhelmingly for the Land of Lincoln to become the 11th state to legalize recreational use of marijuana; for many it became the hallmark of the 2019 legislative session with much discussion around the country on Illinois' monumental move. I voted for the legislation, but found myself musing aloud on the floor of the House of Representatives that Illinois' entry into the legal marijuana space needed to reflect and respect what the war on drugs has done to certain communities throughout the state, ones like the one I grew up in, where I live now and like many of the communities that I represent.

As we are just a few months away from implementation, everyone from government officials, city planners, zoning attorneys, investors and consumers are realizing the herculean task of standing up a completely new industry, as people scramble to position themselves for the ensuing economic largess. This mad dash has revealed some policy weaknesses that need to be strengthened, because of that there will no doubt be a myriad of trailer bills to fix some unforeseen issues that commonly occur with any piece of legislation and can only be truly be revealed through practical application. In the case of marijuana legalization, one of those issues is the way the banking system interacts with those in the industry.

Traditional banks backed by the FDIC have been reticent to work with those in the industry based on the fact that federally cannabis is still classified as an illegal drug. In many states this has resulted in the cannabis industry being cash-only, which besides seeming fundamentally unsafe puts those who operate in the business in a bit of a precarious when it comes to their financial operations; they have to look for alternative and non-traditional ways to protect and invest their money.

In an industry that is fraught with uncertainty and does not enjoy the luxury of the safety of the federal banking system, one of the easiest and smartest ways to protect revenue is to do so through the purchase of real estate. In most cases property values increase or at least remain steady. This creates some sense of control and stability in an otherwise uncontrolled and unstable realm; It seems low-risk, forward leaning and secure.

While using the real estate market to protect earnings may create safety and security for those operating in the industry, it could also very easily mean those looking to protect their profits will become real estate speculators and buy properties en masse. This could lead to them renting the properties back to people who may have been foreclosed on in the past or even using predatory lending schemes that have been one of the causes of the high eviction rates in neighborhoods like South Shore. Furthermore, if you have an inactive speculator who may just want to park their money safely until they need to go back and get it, they can just sit on properties they've acquired and do absolutely nothing, which results in blocks of vacant homes, home values declining, and a dysfunctional and erratic housing market with astronomical ranges in prices not based on any form of logic.

In October, the U.S. House of Representatives passed the Secure and Fair Enforcement Banking Act of 2019. This legislation would provide federally regulated banks a safe harbor to do business with those in the cannabis industry. While this is a step in the right direction, the likelihood of it passing the Senate looks dim and therefore Illinois and other States must act on their own. California has been proactive by considering SB51, which would give private banks and credit unions State charters that would allow banking within the cannabis industry.

All legislation has unintended consequences, and while many fought tooth and nail to make sure the cannabis legalization in Illinois spoke to the wrongs of the past, we have to be aggressive and intentional to make sure not to create a more un-even playing field. I am crafting legislation that directly addresses this issue. Legislation creating state charters or even a state bank that can deal in the cannabis industry, keeps dollars in Illinois and protects communities like Bronzeville, Woodlawn, South Shore, Back of the Yards and Englewood from the results of an unstable real estate market, driven by speculators fueled by the inability of cannabis industry participants to safely bank their dollars and further exacerbate the results of what poverty and historical racial dynamics have done in these communities. It would be wholly irresponsible for us to not address this immediately.

Kam Buckner is a member of the Illinois House of Representatives from the 26th Legislative District.