COMMITTEE ON CONTRACTING OVERSIGHT AND EQUITY City Council, City of Chicago City Hall, Room 200 Chicago, lllinois 60602 Phone: (3L21744-1454 Facsimile: l3l-2l 7 44-L443 COMMITTEE ON CONTRACTING OVERSIGHT & EQUITY MONTHLY RULE 45 REPORT DECEMBEP. 4,20T9 AND DECEMBER T1 ,2019 Pursuant to Rule 45 of the City Council Rules of Order, the Committee on Contracting Oversight & Equity (CCOE) submits the following Monthly Rule 45 Report for DECEMBER 4. 2019. Date, Time & On December 4,2tJI9, at 10:00 4.M., the Committee on Contracting Location of Oversight & Equity held a subject matter hearing in City Hall, Council Meeting: Chamber, 121 North LaSalle Street, 2nd Floor Attendance: All 19 appointed committee members were present at the December 17, 2019 Committee on Contracting Oversight & Equity Meeting: Chairman Carrie M. Austin (34), Vice Chairman David Moore (17) , Daniel La Spata (1), Pat Dowell (3) , Sophia King (4), Roderick Sawyer (6) , George Cardenas (12), Raymond Lopez (15), Jeanette Taylor (20), Michael Rodriguez (22),Byron Sigcho-Lopez (25), Walter Burnett (27), Jason Ervin (28), Ariel Reboyras (30), Felix Cardona (31), Carlos Ramirez-Rosa (35), Gilbert Villegas (36) and Andre Vasquez (40). (5 d å til The following non-members were also present: Gregory Mitchell (7) and ¡^r rx (37) SJ t*æ, Emma Mitts #¡¡ r J*. r. lrl ffi3 The following internal witness was present: Paul Stewart, Mayor's Office H{h P LLI ttlo. Ifm l¡- k-c-) The following external witnesses were present: Dante Hamilton-Internet GÐ cã Webpages Newspaper, Ernesto Borges-Coal, Clients, Callore (sp), Ê,C\¡ r\l Concerned Citizens, Grady Norwood, Jr.-Black Chamber of Commerce Chicago Minority Cannabis Group, Tremaine Gardner Sr., Seke Ballard- Good Tree Capital, Jackie Paige, Amy Nathan-Gromentum Lab; unfortunately, due to time restrictions, the following persons were unable to represent their points of view: Timothy S. Buckley-Howard & Howard Attorneys PLLC, Douglas C. Kelly-Cannabis Equity of lllinois, Peter Contos-Cannabis Equity Illinois Coalition, Willie JR Fleming- Hemp for Hoods/Illinois Cannabis and Hemp Business and Consumer Union, Edie Moore-Chicago Norml (National Organization for the Reform of Marijuana Laws), Rev. Mitchell L. Johnson-Gramham (sp) Lab and CraigMoore. Page | 1 of4 The Committee on Contracting Oversight & Eguitlz addressed the following item at a subject matter hearing: The following proposed ordinance agenda item was referred to the Committee on Contracting Oversight & Equity at the City Council meeting held on OCTOBER 16. 2019. 1. A proposed ordinance, introduced by Alderman Jason Ervin, recommending consideration of an amendment to the Municipal Code Chapter 7-24 that would prohibit certain Adult-Use Cannabis business establishments. (o2019-8063) A robust engagement regarding intent/content of proposed ordinance with no further action(s) Pursuant to Rule 45 of the City Council Rules of Order, the Committee on Contracting Oversight & Equity (CCOE) submits the following Monthly Rule 45 Report for DECEMBER 17" 2019. Date, Time & On December 17,2019, at2:00 P.M., the Committee on Contracting Location of Oversight & Equity held a meeting in City Hall, Council Chamber,I2I Meeting: North LaSalle Street, 2nd Floor Attendance All 19 appointed committee members were present at the December 17, 2019 Committee on Contracting Oversight & Equity Meeting: Chairman Carrie M. Austin (34), Vice Chairman David Moore (17) , Daniel La Spata (1), Pat Dowell (3) , Sophia King (4), Roderick Sawyer (6) , George Cardenas (12), Raymond Lopez (15), Jeanette Taylor (20), Michael Rodriguez (22),Byron Sigcho-Lopez (25), Walter Bumett (27), Jason Ervin (28), Ariel Reboyras (30), Felix Cardona (31), Carlos Ramirez-Rosa (35), Gilbert Villegas (36) and Andre Vasquez (40). The following non-members were also present: Leslie Hairston (5), Gregory Mitchell (7), Anthony Beale (9), Susan Sadlowski-Garza (I0), Stephanie Coleman (16), Denick Curtis (18), Emma Mitts (37), and Brendan Reilly (42) The following internal witness was present: Paul Stewart, Mayor's Office The following external witnesses were present: Saran Horwell, Phillip Chandler, Alisha Battle, Tamiko Holt, V/illie JR Fleming,Maze Jackson, Louanner Peters and Richard Park. The Committee on Contracting Oversieht & Equity addressed the followins items: The following agenda item was referred to the Committee on Contracting Oversight & Equity at the City Council meeting held on OCTOBER 16.2019. Pagel2of4 2. An ordinanceo introduced by Alderman Jason Ervin, proposing an amendment to the Municipal Code Chapter 7-24 that recommended prohibition of certain Adult- Use Cannabis business establishments. (o2019-8063) Chairman Austin called meeting to order, publicized Agenda Item 1, a proposed ordinance in consideration of amending Chapter 27 of the Municipal Code: Cannabis Business Establishments Prohibited, acknowledged a substitute ordinance distributed, specified last page contained language struck from the record and on Motion made by Alderman Sawyer said substitute was favorably adopted by majority voice vote. Chairman Austin then appealed to allow witnesses to speak before anylall such Membership Body's testimonies, citing no objections, witness commentaries/testimonies commenced (of which the full content can be viewed on Chicago City Clerk website). The speakers were as follows : Saran Horwell-Hazehaus, Phillip Chandler-Cresco, Alisha Battle, Tamiko Holt-What's In It For The Black People, V/illie JR Fleming-Hemp 4 Hoods, Maze Jacks on-WIIFTBP, Louarurer P eters, Richard P ark-S outhwest Cannabis Coalition; and Jessica Janjuma (sp)-Cresco Incubator Program was in attendance, but departed prior to having occasion to speak. Immediately concluding witness participations, Chairman opened the floor for discussion, recognized Alderman LaSpata who referenced a document with social equity content, which Chair conceded Alderman Irvin address, summarily concluding the Black Caucus sought inclusion of Communities of Color be configured beyond simply verbal commitment. Alderman Beale was recognized and request where a specific document in the package was originate. Alderman Reilly was then recognized and spoke directly to substitute ordinance language which referenced page #2 cannabis dispensary organizations, 4th line "in order to qualify" querying if this could possibly affect medical dispensaries and Aldeman Irvin after reviewing the text succinctly replied "no." Alderman Reilly continued with additional concerns regarding possible interference to revenue and clarification whether City could possible face litigation. His conferred not being against his colleagues' disposition and embraced agreement for diversity, but looked to gain perspective on potential underfunding. The meeting stood at ease to review interchanges/queries for potential of redress. At reconvene, Chairman recognized Alderman Vasquez, who acknowledged wanting more social equity, spoke to authority being at State level rule and any legislative challenges would be contingent and based upon disparity study findings in January 202t by the state redress, concerned said ordinance has potential to delay cannabis revenue generation. Alderman Sawyer responded in absence of Alderman Irvin that the application process was ongoing and the ordinance's proposed 6-month delay has no impact on current licenses. Alderman Vasquez asked for the City of Chicago Law Department to clarify definition of "adult cannabis use," after alluding he mutually appreciates the aversion of rich white applicants profiting to the detriment of communities of color. Assistant Corporation Counsel Redeatu Kassa provided legal interpretations of texts, comparing logical versus litigable factors, referring to Sections 7-24-031 andT-24-213 content and confirming the ordinance Page | 3 of4 as written could logically delay the process reading subsection (C) in support of his argument. Alderman Irvin questioned Corp Counsel Kassa asking if the Chicago City Council body has power to rescind a state issued licensed, which Corp Counsel Kassa answered no, but offered that there was a legal defect in the draft. Alderman Sawyer supported the ordinance afforded disclaiming language that excluded medical cannabis dispensing centers, which Corp Counsel countered in matter of litigation certain language should be struck. Alderman Vasquez took such legal debate to the point of potential for stopping operations and potential for causing legal issues. Alderman Beale queried Corp Counsel Kassa as to how many cities opted out, concluding we (Council) have the right to opt out. The Chair recognized Alderman Villegas who stated it was the first time he seen the document and request more insight into the Administration's engagement and also like to hear about the conversations between the Govemor's Office with Black Caucus so as to be informed. Paul Stewart, Policy Advisor & Cannabis Coordinator, was sanctioned to speak to Villegas' inquiry. Paul Stewart acknowledged ongoing dialogue with Governor's Office and Administration, Mayor's Office met with Alderman Irvin over the past several weeks regarding lack of diversity, with the Major sharing the concerns both nationally and locally. To support more equitable inclusion, the Mayor's Office provides technical assistance to qualified applicants to help prepare applications and that the memo in question was drafted in conjunction with the Chicago Aldermanic Black Caucus and its Executive Committee, which packaged information reflects conversations of meeting with the