fbpx
Illinois Recreational Cannabis: What to know for January 1st

Illinois Recreational Cannabis: What to know for January 1st

by | Dec 31, 2019 | 420, 420 Culture & Travel, 420 News, Blog, Cannabis Law, Culture

As soon as the clock hits midnight on January 1st, Illinois recreational cannabis sales are set to begin.

Illinois has been setting up regulations and requirements for recreational cannabis businesses over the last year, and it is all leading up to the first day of legal sales on January 1, 2020. The people are excited, and the state is ready to start pulling in those tax dollars.

However there are plenty of differences in the Illinois recreational cannabis laws and regulations for consumers that any would be dispensary-goer should know.

Who can buy Illinois recreational cannabis?

Just like every other recreational cannabis state, you must be 21 to purchase cannabis legally in Illinois. Out-of-state visitors will also be more limited in how much they can purchase compared to state residents, however there is no difference in price for in and out of state customers.

Illinois residents age 21 and over may possess 30 grams of cannabis flower, 500 mg of THC in a cannabis-infused product like edibles, and 5 grams of cannabis concentrate in total. These amounts are halved for non-residents. 

The totals are cumulative, so an Illinois resident could have 30 grams of flower, 500 mg of infused product and 5 grams of concentrate all at the same time. The same goes for nonresidents and their limits.

Where can I buy legal cannabis?

On January 1st, there are only going to be 37 Illinois recreational cannabis dispensaries open for business. If you’re in Chicago or the surrounding area you’re in luck, because that is where 24 of the dispensaries are located.

Champaign-Urbana, Peoria and Springfield all have two dispensaries nearby, and Carbondale, Effingham, Ottawa, the Quad Cities, Quincy and Rockford will each have one dispensary. Unfortunately, the state won’t begin reviewing applications for more dispensaries until March 15. Once approved, licenses will be distributed starting May 1st. On July 1st, up to 40 grower and infuser licenses will be issued along with an unlimited number of transportation licenses for in-state transport.

In other words, it’s going to be a slow start with limited access to Illinois recreational cannabis for most residents. The state will examine the progress through 2020 to determine whether or not more licenses need to be issued.

What about the taxes?

Like any recreational cannabis industry, Illinois is collecting some hefty taxes off the sale of legal cannabis. A good way to put it is, the higher you get, the higher the tax. For example, cannabis products with a THC level of 35% or less will only have a tax of 10%, and products over 35% will have a 25% tax. Basically, flower will have a 10% tax and concentrates will have a 25% tax. All infused products including edibles will have a 20% tax.

Additionally, state and local taxes will also apply, and the state law allows for municipalities to tax up to 3%. And if that isn’t enough taxes for you, local sales taxes also apply. The Illinois sales tax is currently 6.25%.

With limited access and extremely high taxes, it’s safe to say that Illinois recreational cannabis is not going to be cheap. But if there’s anything we can take away from other legal markets with high taxes, it’s that people are willing to pay for safe, legal access to cannabis.

Lastly, consumption

One thing that Illinois holds over other recreational cannabis states is its consumption laws. While public consumption is still prohibited, and smoking indoors was banned in the states in 2008, the Illinois cannabis laws allows on-site consumption at dispensaries, as well as cannabis smoking lounges. While no lounges have yet to open, some dispensaries and growers have applied to have lounges built in their existing facilities or separately attached for consumers.

An issue that will remain prevalent in every state that bans public consumption of cannabis is the impact it has on those in public housing or those living under a landlord that does not permit cannabis consumption. While a private homeowner can do whatever they please in the house they own, a renter is limited by what their landlord allows. This will continue to be problematic, especially for medical patients that need cannabis for serious ailments.

Since repetition is key, like any recreational cannabis state, Illinois has done some stuff well and some other stuff not so well (looking at those 37 dispensaries for the first year). But the trend of starting small and slow isn’t anything new when it comes to cannabis. States want to get their feet wet before diving into the deep end and that typically means more strict regulations that will ease up over time. For now, if you’re in one of the towns with a dispensary, check it out! And if not, plan a New Year’s trip to Chicago and check out a lot more options, and probably cheaper prices.

Illinois Cannabis is Legal? Why You Probably didn’t Hear about It

Illinois Cannabis is Legal? Why You Probably didn’t Hear about It

by | Nov 12, 2019 | 420, 420 News, Blog, Business, Cannabis Law, Culture

A major issue in the cannabis legalization movement is that every state can do it differently. Illinois cannabis legalization definitely did it different, and not for the better.

A lot of states that legalize cannabis add something new to their industry. Whether that’s limiting licensing because Oregon didn’t, or lowering regulations like Oklahoma did because California’s are so strict. Illinois is no different.

In June, Illinois became the first state in history to legalize the recreational possession and sale of cannabis entirely through the legislative process, whereas every other state has legalized through state-wide ballots. They also took a huge step in expunging the criminal records of nearly 800,000 residents in the state who possessed or purchased up to 30 grams of cannabis and were prosecuted.

With the state set to begin adult recreational sales in January 2020, all seems well and good. That is until you look a little closer at the legislation.

The Illinois Cannabis Crunch

Some states choose to be very lax with their regulations, like Oklahoma or Oregon. Both states have booming cannabis economies with Oklahoma’s in particular taking off faster than any other medical industry in the country. But both states are also facing serious over-supply issues.

Oregon has already taken the brunt of the surge, with so much more cannabis in the state than its residents consume that they had to pass a law permitting cross-border sales of cannabis to try to get rid of the excess. Oklahoma is following a similar path, with over 4,000 licensed growers and only 1,400 dispensaries for a state that is highly interested in cannabis. On top of that, there is roughly one dispensary for every 70 Oklahomans, which is not ideal for continued business traffic.

To avoid making the same mistakes, Illinois put a cap on how many dispensaries are allowed to open in order avoid cities filling up with pot shops too quickly. However at the end of 2019, the state only has 113 permitted dispensaries for recreational sales. Remember how Oklahoma had a dispensary for every 70 people? Illinois hardly has one for every 100,000.

An Attempt to Keep Big Business Out

It’s fair to say that Illinois’ cannabis legalization intentions were pure enough. The purpose of the dispensary cap is to prevent chains from taking over. The legislation limits chains to no more than 10 locations in the state, and limits the entire state to only 500 dispensaries, total.

That may sound like a lot of dispensaries, but 500 dispensaries is just enough for every 200 people to have a shop to visit. Additionally, the state won’t be adding any new dispensary licenses until May 2020, leaving four months of extremely limited supply. Even then, the state is only issuing 75 more licenses, leaving less than 200 dispensaries by the end of May at the earliest.

Also being a more conservative state, it is expected that a good bit of Oklahoma jurisdictions will ban retail dispensaries altogether, and a lot of people are concerned that the efforts to keep big business out will result in even more solicitation of private market cannabis.

A Slow and Steady Approach

Recreational cannabis sales are set to begin in less than 2 months in Illinois. With a little more 100 dispensaries to serve the entire state on January 1, it’s going be very difficult to get everyone taken care of for some time. But the Illinois cannabis industry doesn’t appear to be in a rush.

To put it all in perspective, by the end of 2020 Illinois is only projected to have about one tenth of the amount of dispensaries as Oregon has, with the maximum allowance of the legislation only being equivalent to one quarter of the Oregon cannabis industry when the Illinois cannabis industry is fully up and running in what will most likely be a few years.

This might not be a bad thing for Illinois though. Being a more conservative state outside of Chicago, demand for cannabis likely won’t be as high as other states that have legalized. Also with homegrowing allowed under the new law, residents that can’t find a nearby dispensary will either not participate in the industry, or start growing their own.

While the latter could lead to a rise in private market distribution, it isn’t very likely due to what most are projecting will be low demand outside major metropolitan areas, where dispensaries are most concentrated. This is why the industry hasn’t sparked a lot of interest nationally. A lot of people aren’t expecting any big developments for at least two years, and even then the Illinois cannabis industry will still be a small player compared to other states that have legalized cannabis.

Illinois cannabis legalization is a great thing for the state and the country. They may be moving more slowly than other states, but they may also just be more cautious and hoping to avoid the mistakes made by Oregon or California. Unfortunately it’s much too soon to say how the Illinois industry will perform, but usually where there is legal weed, there is prosperity.

Illinois Legalization: Illinois becomes 11th state to legalize cannabis

Illinois Legalization: Illinois becomes 11th state to legalize cannabis

by | Jun 26, 2019 | 420, 420 News, Blog, Cannabis Law, Culture

Illinois residents can soon enjoy cannabis freely in their home state, they just have to wait a while.

Illinois has become the 11th state in the U.S. to legalize cannabis for recreational use after Gov. J.B. Pritzker signed a bill that will allow the licensed growth, sales, possession and consumption of cannabis for adults 21 and older. One of Pritzker’s campaign promises, the bill also implements the nation’s first comprehensive statewide cannabis marketplace designed by legislators.

Suffice to say the governor was excited to sign the bill into law, and said that it was long overdue in the state. However Illinoisans will still need to wait a while to start working in the cannabis industry in the state.

Illinois Legalization

With this new bill comes a few big steps for the state of Illinois. The bill will allow the licensed growth, sales, possession and consumption of cannabis for adults 21 and older, allowing possession of up to an ounce for residents, and 15 grams for non residents.

Illinois is also the first state to fully legalize commercial sales of cannabis through the legislature, rather than through referendum. But one aspect of this bill that will start impacting individuals immediately, is the expungement clause.

Pritzker emphasized that the law provides for automatic expungement of arrests for marijuana possession under 30 grams, and that he will pardon those with convictions for possession up to 30 grams. Individuals and prosecutors may go to court to seek expungement of cases involving up to 500 grams.

“Today we are giving hundreds of thousands of people the chance at a better life,” Pritzker said.

Once the market grows to maturity, the program is estimated to generate $500 million a year in taxes. That would come from a 10% tax on products with up to 35% THC, the component of the plant that gets users high; 20% for cannabis-infused products such as edibles; and 25% for THC concentrations of more than 35% — plus local sales taxes.

In a concession to law enforcement, an earlier provision to allow adults to grow five plants each at home was eliminated. Instead, only certified medical marijuana patients would be allowed to grow up to five plants each at home.

Now What?

While the bill has been signed into law, Illinois won’t be selling recreational cannabis to its citizens anytime soon. The permits the sale of legal cannabis products starting in January of 2019. So while not that far away, Illinoisans still have over 6 months to wait before they can purchase or grow their own cannabis.

The governor emphasized that 25% of the revenue from marijuana taxes will go to marijuana business ownership in black and brown communities that were disproportionately affected by the war on drugs. In addition, 20% will go to substance abuse treatment and prevention and mental health care, with additional funds going to pay the state’s bills, law enforcement and public education on marijuana health issues.

To address concerns that cannabis retail shops will end up concentrated in minority neighborhoods, state Rep. Kelly Cassidy, a co-sponsor of the bill, said there are minimum distances between shops to avoid a “liquor store on every corner“ phenomenon.

Local governments can still ban marijuana businesses or set rules to determine where they are allowed. While municipalities cannot prohibit people from possessing marijuana, landlords can still keep it off their property and employers can prohibit use by their employees.

It’s going to be an intense 6 months in the Illinois legislature as application processes begin and citizens start applying en masse. The state will need to establish how many applications it approve, and how many licenses will be given out to commercial growers, processors and retailers.

Stay tuned on The Real Dirt for updates about Illinois legalization and what’s happening with the cannabis industry development in the state.