CLIMB Act

Summary#

This bill is called the Capital Lending and Investment for Marijuana Businesses Act (CLIMB Act). It would stop Federal agencies from taking any adverse action against a person solely because that person provides business assistance to a cannabis-related legitimate business or service provider. The bill lists many kinds of "business assistance," including financial products and services, insurance, debt or equity capital, accounting, real estate sales or leasing, equipment or testing needed to produce cannabis under state law, advertising, management consulting, legal or compliance services, information technology, packaging and transportation, and underwriting or listing securities.

The bill also adds a new "safe harbor" to the Securities Exchange Act of 1934. That safe harbor defines "cannabis," "cannabis-related legitimate business," "service provider," and "market participant." It says that national securities exchanges and market participants may list, trade, and facilitate offerings of securities of cannabis-related legitimate businesses and service providers, even if other federal laws (including the Controlled Substances Act) would otherwise raise issues.

The Act and its securities exchange change would take effect 180 days after the date of enactment.

What it means for you#

  • If you are an individual or company that provides services listed in the bill to a state-legal cannabis business, Federal agencies may not take adverse action against you solely for providing that assistance.
  • If you operate or use a national securities exchange or are a market participant, the bill allows listing and trading of securities issued by state-legal cannabis businesses and certain service providers.
  • Whether a business qualifies depends on the bill's definitions, including that the cannabis activities are carried out under a State or local law.
  • The bill becomes effective 180 days after enactment.

Expenses#

No publicly available information.

Proponents' View#

The sponsors introduced the bill to prohibit Federal agencies from penalizing people who provide business assistance to state-legal cannabis businesses and to create a safe harbor allowing national exchanges and market participants to list and trade securities of those businesses and related service providers. The short title emphasizes enabling capital, lending, and investment for marijuana businesses.

Opponents' View#

No publicly available information.