Illinois Legislature Passes the Cannabis Regulation and Tax Act

https://blog.norml.org/2019/05/31/illinois-legislature-passes-the-cannabis-regulation-and-tax-act/


Illinois Legislature Passes the Cannabis Regulation and Tax Act



by NORML <small class="feed-date">May 31, 2019</small> Comments

Springfield, IL: Just prior to the closing of the 2019 legislative session, both chambers of the Illinois statehouse passed the Cannabis Regulation and Tax Act (HB1438-SFA2) to legalize cannabis and regulate it’s production, manufacture, and distribution.
“Cannabis criminalization in Illinois is coming to an end. While this bill isn’t perfect, it does provide a pathway for adults to legally obtain and consume cannabis. It also expands access and rights for qualified medical patients. Importantly, the bill provides much-needed relief to those most harmed by the legacy of prohibition and emphasizes giving those who have been most harmed by cannabis criminalization preference in establishing a foothold in this new industry,” said Illinois NORML Executive Director Dan Linn. “We are confident that this is the best bill we could get through the legislature at this time, but are adamant that Illinois must enact additional protections in the future, in particular, the right of adults to home grow personal use amounts of cannabis.”
“Today’s outcome is the result of years of volunteers educating the public and lobbying lawmakers in Illinois. This process has not been easy but it does reflect what dedicated citizens can accomplish if they engage in the political process,” concluded Linn.
“We’re going to be able to look back five years from now and see that the quality of life in disadvantaged communities has been made better because of this legislation,” said Chicago NORML Executive Director Edie Moore.
NORML is committed to the mission of ending cannabis prohibition, and after decades of hard work by dedicated volunteers and activists from coast-to-coast that mission is in reach following the passage of the Cannabis Regulation and Tax Act (HB1438-SFA2) by the Illinois Statehouse.
It is expected that Governor Pritzker will sign the legislation.
This bill accomplishes many of NORML’s key goals. Most importantly, it removes cannabis from the hands of unregulated illicit marketers and ushers in a system where the product is tested, taxed, and otherwise regulated. It also takes important steps toward the goal of dealing with the disproportionate impact of the “War on Drugs” by giving those individuals and communities that have been impacted a fair chance to participate in this new industry. NORML is committed to social justice and equity and supportive of the fact that the bill intends to prioritize those issues. The Illinois General Assembly and Governor Pritzker have heard the voices of the vast majority of citizens across the state that support these important changes.
“With this action, Illinois will become the first state to legalize and regulate a commercial cannabis market for responsible adult consumers,” said NORML Political Director Justin Strekal. “Today is a historic day.”


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June 01, 2019 Chris ,

Once again, we’ve made history.
After years of hard work led by Illinois NORML and Chicago NORML, Illinois became the first state body to legislatively legalize and regulate marijuana for responsible adults by passing the Cannabis Regulation and Tax Act (HB1438-SFA2).
“Cannabis criminalization in Illinois is coming to an end. While this bill isn’t perfect, it does provide a pathway for adults to legally obtain and consume cannabis. It also expands access and rights for qualified medical patients. Importantly, the bill provides much-needed relief to those most harmed by the legacy of prohibition and emphasizes giving those who have been most harmed by cannabis criminalization preference in establishing a foothold in this new industry,” said Illinois NORML Executive Director Dan Linn.
Nearly 50 years ago, Keith Stroup, an Illinois native, founded NORML because he knew that it was critical to have an organized voice for cannabis consumers to be represented in the political process. Today, we have never been stronger.

As we celebrate this important victory, we must prepare for the significant work that lies ahead. NORML’s goal is to achieve public policy under which responsible consumers are treated fairly in all aspects of their lives, in every state of our Nation.
We still have so much work ahead, even in those states that have legalized marijuana. Please join our fight today and get your NORML 2019 Membership Card with a one-time contribution of $35 or by signing-up to become a sustaining member on a monthly basis.
As Dan Linn said, “this process has not been easy but it does reflect what dedicated citizens can accomplish if they engage in the political process.”
Together, we will end marijuana prohibition. Together, we will legalize America.
Thanks for all you do,
NORML

https://www.mpp.org/states/illinois/overview-of-the-illinois-cannabis-regulation-and-tax-act/


Overview of Illinois House Bill 1438: The Cannabis Regulation and Tax Act

» Policy » State Policy » Illinois


Sen. Heather Steans and Rep. Kelly Cassidy's HB 1438 would end cannabis prohibition and replace it with a system to tax and regulate cannabis for adults 21 and over. The bill is comprehensive in its approach. In addition to legalizing possession and use for adults, it expands the current medical cannabis licensing system, includes automatic expungement for cannabis offenses, adds the ability for medical patients to grow at home, and offers significant benefits to communities hit hardest by inequities that were part of the war on cannabis. Here are some key provisions in House Bill 1438, or HB 1438.
<hr> Cannabis possession and sales
Starting January 1, 2020, adults 21 and older could possess cannabis and purchase cannabis products in licensed stores. Possession would be limited to:

• 30 grams of raw cannabis;
• Cannabis-infused product or products containing no more than 500 mg of THC; and
• Five grams of cannabis product in concentrated form.

Non-residents could purchase half that amount, or 15 grams of cannabis, 250mg of THC in a cannabis-infused product, and 2.5 grams of concentrated cannabis product.
<hr> Expunging criminal records
HB 1438 would usher in the most sweeping criminal justice reform so far in the cannabis movement.

• The governor’s clemency process would be used for convictions for up to 30 grams. These expungements would be automatic.
• For amounts of 30-500 grams, the state's attorney or the individual can petition the court to vacate the conviction.

In all, around 770,000 cannabis-related cases would be eligible for expungement, according to the Illinois State Policy Advisory Council.
<hr> Equity
Social equity program: The program provides benefits directly to those who have suffered because of the war on cannabis. Not only does HB 1438 remove convictions through expungement, it specifically provides additional points for business applicants, access to financial resources for start-up costs, and provides resources to communities that were hardest hit from the war on cannabis.
How it works:
A “social equity applicant” is a business whose ownership or staff have been directly impacted by the war on cannabis. These are people who have either been arrested and convicted of a cannabis-related offense, or a person with strong ties to a community that has been disproportionately impacted by both poverty and cannabis drug law enforcement. Such a business must be owned by 51% or more of those who qualify, or for businesses with 10 or more staff, 51% of the workers must qualify.
Social equity applicants qualify for assistance in various ways:

• Applicants for business licenses that qualify as social equity applicant would receive additional points on applications in the scoring system.
• A Cannabis Business Development Fund would provide financial resources for business start-ups, which can be used to offset licensing fees or used for low-interest loans. The fund would start with $12 million of funds as soon as possible after July 1, 2019, and additional early fees would be transferred into it. <ins cite="mailto:Karen%20O'Keefe" datetime="2019-05-29T19:39">
  </ins>
• Local colleges can obtain a license for training programs to help residents prepare for cannabis industry-related jobs.
• The 3R Program (the Restore, Reinvest, and Renew Program) would allow community groups to develop programs to benefit disadvantaged communities.

Training: The Department of Agriculture and Community College board will create up to eight pilot programs to train students to work in the legal cannabis industry. At least five of the eight programs must be for schools where at least 50% of the students are low income.
<hr> Home cultivation for patients
Medical cannabis patients could purchase cannabis seeds and grow up to five plants at their residence. There are limitations on home growing, however, including a cap of five plants per household, regardless of the number of residents who are 21 or over, and plants would need to be secured and out of view by the public. Home cultivators can keep what they grow, but possession limits still apply outside the residence, and sales are prohibited unless part of a licensed cannabis business.
<hr> Business licenses
The following types of cannabis business licenses will be issued:

• Dispensary: Provides cannabis products to adult consumers.
• Processor: Infuses products such as edibles with cannabis extract.
• Transporter: Transports cannabis between business licensees.
• Craft Grower: Can grow between 5,000 and 14,000 square feet of canopy space and may be separately licensed a processor and a dispensary at the same facility.
• Cultivation Center: Can grow up to 210,000 square feet.

<hr> The transition timeline

1. January 1, 2020, sales begin. Existing medical cannabis cultivators and dispensaries will cultivate and provide to adult consumers until additional licensees can apply and get approved.
2. January 7, 2020, applications for processors, transporters, and a new category of cultivator called a craft grower would be published for business applicants.
3. March 15, 2020, the state would begin receiving and processing new licenses.
4. May 1, 2020, new dispensaries licenses issued, and the state begins a disparity and market study of the cannabis industry.
5. July 1, 2020, up to 40 craft grower and processor licenses will be issued, along with an unlimited number of transporter licenses.
6. Once the disparity and market study is complete, the state can issue additional licenses if needed. These licenses must take into account the findings of the disparity study.

<hr> Taxes
Illinois is taking a unique approach to cannabis taxation. Rather than a blanket tax for all cannabis products, Illinois will charge a tax rate based on the relative potency of the cannabis and the type of product. The more concentrated THC is, the higher the tax rate:

• 10% tax would apply to cannabis flower or products with less than 35% THC
• 20% tax would apply to products infused with cannabis, such as edible products
• 25% tax would apply to any product with a THC concentration higher than 35%

In addition to these scalable tax rates, the state’s regular 6.25% sales tax rate also applies, along with local taxes of up to 3.5%. The range consumers would pay at the register would be between 19.55% to 34.75% retail tax, depending on the product’s potency.
<hr> Revenue distribution
After covering the costs of administration and expungement, the remaining funds would be distributed as follows:

• 2% to public education and safety campaigns
• 8% to the Local Government Distributive Fund, for prevention and training for law enforcement
• 25% to the Recover, Reinvest, and Renew (R3) Program
• 20% to mental health services and substance abuse programs
• 10% to pay unpaid bills
• 35% to the General Revenue Fund

This should prove interesting.

I know where I will be New Years Day 2020! Buying a 15 gram bag of cannabis flowers across the border in Illinois!

WOW, the Midwest stepping up again

I see why some people say, keep it illegal. This has too much government control layers. This is obviously forced socialism in law right here in America! Lets see:


1. No personal cultivation for adults but we can purchase flowers and a huge price? This will just promote the ongoing black market for cannabis or make regular people STILL A CRIMINAL for growing their own medicine (cannabis will always be a medicine).



2. This goes beyond the necessary expungement of past cannabis criminal offenses. Its forcing socialism on an entire industry!

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[FONT=Arial, Helvetica, sans-serif]Equity
Social equity program: The program provides benefits directly to those who have suffered because of the war on cannabis. Not only does HB 1438 remove convictions through expungement, it specifically provides additional points for business applicants, access to financial resources for start-up costs, and provides resources to communities that were hardest hit from the war on cannabis.
How it works:
A “social equity applicant” is a business whose ownership or staff have been directly impacted by the war on cannabis. These are people who have either been arrested and convicted of a cannabis-related offense, or a person with strong ties to a community that has been disproportionately impacted by both poverty and cannabis drug law enforcement. Such a business must be owned by 51% or more of those who qualify, or for businesses with 10 or more staff, 51% of the workers must qualify.
Social equity applicants qualify for assistance in various ways:

• Applicants for business licenses that qualify as social equity applicant would receive additional points on applications in the scoring system.
• A Cannabis Business Development Fund would provide financial resources for business start-ups, which can be used to offset licensing fees or used for low-interest loans. The fund would start with $12 million of funds as soon as possible after July 1, 2019, and additional early fees would be transferred into it. <ins cite="mailto:Karen%20O'Keefe" datetime="2019-05-29T19:39">
  </ins>
• Local colleges can obtain a license for training programs to help residents prepare for cannabis industry-related jobs.
• The 3R Program (the Restore, Reinvest, and Renew Program) would allow community groups to develop programs to benefit disadvantaged communities.

3. Looks like excessive taxation in my opinion, diminishing return on the capital investments, and taking the people's money just because they want to benefit from using an herbal suppliment.


4. What do you know, the money goes back into the unbalanced budget of the democrat controlled government. They have to legalize cannabis and collect or the government won't be able to function due to high debt.



[FONT=Arial, Helvetica, sans-serif]Revenue distribution
After covering the costs of administration and expungement, the remaining funds would be distributed as follows:

• 2% to public education and safety campaigns
• 8% to the Local Government Distributive Fund, for prevention and training for law enforcement
• 25% to the Recover, Reinvest, and Renew (R3) Program
• 20% to mental health services and substance abuse programs
• 10% to pay unpaid bills
• 35% to the General Revenue Fund

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Forced socialism, and a lot of other things...


No change to probable cause and the felony limits (6 plants or 100grams, or 30+ grams for a second offense) are seriously troubling, especially for the type of people that would be browsing this forum.



Also, SB2023, a bill expanding the medical program allows for many new conditions, but it also makes any extraction with volatile gas including butane a Class 2 Felony. It also makes possession of any equipment that can be used for extraction the same, a Class 2 Felony.

LouDog420 said:

IL bill key takeaways for those championing the bullshit...


Possession limits of 30g flower OR 5g concentrate OR 500mg infused, or some combination thereof. Personal possession limits don't kick in until Jan 1, 2020. So we'll have a signed bill but cops can still arrest for 6+ months.

Smell is still probable cause for search (this was said multiple times in both the House and Senate hearings and on the floor). If a canine alerts or a cop says they smell it, it is probable cause for search and seizure. The accused must prove they are within the limits, setting up huge potential for abuse.

Growing 5 plants is a civil violation, with a fine up to $200. Med patients can grow up to 5 plants.

Anything over 5 plants.... felony. (better hope LEO doesn't split any rootballs)

Anything over 31 grams..... Class A misdemeanor, second offense or anything over 100g is a felony. (unless med patient then your state limit, and any grow overages must be kept at home, locked and enclosed).

Better hope they don't weigh those 5 plants that are a civil violation, cause if it's over 30 grams and your second violation, or over 100 grams, that's potentially a felony...

Selling under 10 grams to a minor is only a misdemeanor though (I believe).

Med patients can't share seeds, you can only buy them from a dispensary (for my IC friends, you all should appreciate this horseshit).

No public consumption but allows local government to authorize social spaces for consumption. There is no state licensing process, it will all be up to the local jurisdiction.

~10-30% tax on products when you add up state, and potential local city and county (city up to 3% and county, I believe, 0.75%), on top of 10-25% state tax depending on potency (thc %). This is on top of a 7% wholesale 'cultivator privilege tax'

Sales go live Jan 1, 2020, where only 21 cultivation operations will be growing for both the medical and rec programs (there are over 1,500 in Colorado, with less than half of IL population). Only 40 new craft grows (up to 5ksf flower) will be licensed July 2020. Now count build out time, and time for growth, harvest, dry, cure, package, sale, essentially those cultivators have a year with the market to themselves. Who thinks 21 grows can supply all of IL? Black market will thrive

Expungements for under 30 grams, with 30-500 grams available to petition and decided by judge on case by case basis.






Shall we discuss the crooked licensing and social equity nonsense for operators as well??

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