SPRINGFIELD, Ill. (NEXSTAR) — In 2020, Illinois became the 11th state to legalize adult-use cannabis while launching a social equity program, the first of its kind in the country. The goal was to create economic opportunity and offer reparative justice to communities long impacted by the war on drugs.
The state tried to accomplish that by issuing dispensary licenses to those impacted groups and forgiving loans for minority-owned cannabis businesses. However, years later, some said they are still waiting for the grants they qualified for, while others aren’t able to capitalize on their licenses due to a lack of capital and high fees.
After months of outcry from advocates to update cannabis regulations, lawmakers filed a bill at the last minute to address concerns from social equity license holders, but that bill didn’t reach the House floor before the May 31 deadline.
Rep. La Shawn Ford (D-Chicago), who filed the bill a couple of days before the deadline said
“What sets the businesses apart is capital—being able to have revenue to support their business,” Ford said. “If that money is delayed, businesses will fail.”
Entrepreneurs like Tanisha Patterson, who operates Future of Leaf Craft Growers, had high hopes for the marijuana market. She received both a license and grant approval but she is still awaiting the funds.
“Initially, we were promised so much as social equity groups from the state that we would be able to have operational costs covered and at this time, we haven’t received anything,” Patterson said. “We are still here because we believe in the medicinal purpose of the plant; we want to see it work.”
Some of the group’s demands included lower fees, quicker grant distribution, and allowing social equity groups to sell to medical patients.
The bill didn’t stall due to controversy, but rather due to lack of time and the inclusion of hemp regulation. Stakeholders and lawmakers had little time to discuss, and read over the bill. The language in the bill would merge recreational and medicinal dispensaries into one.
The Illinois Department of Agriculture would also have been able to waive fees for small craft growers and infusers. If their income is $50,000 or less, they could have their license or renewal fees fully waived. Anyone earning more than that could be eligible to waive half of their fees.
The bill passed the House Executive Committee, with 8 voting yes and 4 against. With the veto session coming in the fall, Ford said the bill is far from becoming ashes.
The next few months are expected to focus on discussion and drafting stronger languages and bringing in more groups, such as cannabis transporters and other lawmakers.
“We do have plans on bringing it back. Many members feel that they were rushed with making the decision about the bill,” Ford said. “We still have to make sure that we respect the members’ wishes to talk more about the language of the bill, make sure that we’re not missing anything, and make sure that everyone’s perspectives and desires are at least considered before we bring it to members to vote on it.”
In 2023, Illinois launched its first round of grants and loan forgiveness, distributing $18.3 million in loans to 33 craft social equity licensees, including growers, infusers, and transporters.
Some businesses are doing better such as Galaxy Labs, but still face challenges. The owners, Michelle and Rich Ringgold, said lowering fees would improve the market for minority businesses and open doors to expand more easily.
Galaxy Labs in Richton Park, is an integrated cannabis company that has grown to nearly 65 employees and distributes to 175 stores.
“Just for the craft grower license alone, it’s $40,000 a year,” Michelle said. “We’re well over $60,000 annually when you include transportation and dispensary costs.”
They said the fees need updating, and that medical cardholders should have the ability to purchase from any licensed dispensary.
There are over 240 licensed dispensaries in Illinois, but 55 can only sell cannabis to medical marijuana patients—and none of those are social equity businesses. Medicinal marijuana was legalized years before recreational use became legal.
Another burden they have to deal with is license holders must pay renewal fees to keep their licenses active, even if they don’t have a business up and running.
The conversation about fixing Illinois’ problems only got messier after THC-infused hemp products became more relevant.
The product gained popularity among teens and became controversial among political leaders. The product can be found at nearly every corner shop, gas station with colorful packaging similar to candies, giving an unfair advantage to hemp producers, according to dispensary owners.
“The hang up really was about not being more inclusive and in the Delta eight and nine. So people really wanted to see language about Delta eight in the bill because it’s not regulated.” Ford said “ So we shall see exactly how that works. And we’re going to be looking at the federal guidelines as they relate to Delta eight hemp products”
Advocate for the hemp industry, Justin Ward who is the President of Illinois Healthy Alternatives Association said they want to be part of the conversation and that the industry is comprised of small business and small entrepreneur and they are not oppose for regulation but overregulation
“ A lot of people who are unable to get involved in the marijuana industry here because of the limited licensing model and have kind of fled to hemp as another alternative opportunity. “ Ward said “ So what we want to do is make sure we have regulations that help those businesses stay around, help them feel safe, and make investments in growing their businesses and also protect consumers and keeping, children from getting access to these products.”
Lawmakers could take up the issue when they return for Veto Session in October.
