Illinois Becomes the First State to Legalize Cannabis Via Legislature
June 3rd, 2019
Illinois may be the eleventh state to legalize adult-use cannabis, but it’s the first to approve sales through the state legislature rather than a ballot measure.
Beginning on January 1, 2020, adults 21 and older will be able to purchase cannabis products in licensed stores and possess up to 30 grams of raw cannabis, 500 mg of THC, or five grams of concentrate. Non-residents can also purchase and possess half of that amount at any given time. With sixth largest population in the country, the market could be worth billions per year.
Medical cannabis patients will also be eligible to purchase cannabis seeds and grow up to five plants at their residence. These plants must be grown securely and outside of public view, while possession limits still apply outside of their residence. Obviously, the sale of home grown cannabis is prohibited unless part of a licensed cannabis business.
Cannabis Business Opportunities
The Illinois cannabis industry will issue several types of cannabis licenses, including a so-called ‘craft grower’ license for between 5,000 and 14,000 sq. ft. of canopy. The other licenses include dispensaries, processors, transporters, and cultivation centers that can grow up to 210,000 sq. ft. The state will review and process these licenses in March 2020.
By May 1, 2020, the state hopes to have new dispensary licenses issued before approving up to 40 craft growers and transporter licenses by July 1. Once the disparity and market study is complete, the state may issue additional licenses, if required, throughout the remainder of the year. These licenses must take into account the findings of the study.
Rather than taking a blanket tax approach to the industry, Illinois will charge a tax rate based on the relative potency of the cannabis and product type. Products that are more concentrated with THC will be subject to higher tax rates with a range of 10% tax for less than 35% THC to 25% tax for products with greater than 35% THC.
Criminal Justice Reform
The Illinois bill institutes sweeping criminal justice reform, including automatic clemency for convictions of up to 30 grams and review-dependent expungements for amounts of between 30 and 500 grams. State regulators estimate that around 770,000 cannabis-related cases will be eligible for expungement, which could save the state millions in legal costs.
In addition to these expungements, a social equity program will provide benefits for those that have suffered from the war on cannabis. Businesses owned or staffed by those that have been directly affected by the war on cannabis will be eligible for access to financial resources for startup costs and points for legal cannabis business applications.
The tax revenue from cannabis sales will also be diverted to several areas, such as 20% toward mental health services and substance abuse programs.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.