Illinois opened 82 new cannabis stores last fiscal year, marking “explosive growth” in dispensaries in an industry that generated more than $2 billion in sales, the state reported.
State regulators said in their 2024 annual report that “socially just” marijuana business owners, or those who come from poor communities or those most affected by the drug war, are now in 220 states across the state. He proudly stated that he owned almost half of the pharmacies.
But social equity owners say they remain on the margins of the industry because the state favors large, long-established companies. According to the state's disparities report, social equity projects collected only 12% of the state's total revenue in the past year.
“We need to address the structural imbalances,” said Peter Contos, deputy director of the Cannabis Equity Illinois Coalition.
New social equity businesses typically own one or two stores, while established multi-state operators may own up to 10 stores each. And large companies are legally allowed to have up to 15 times more growing space than new craft growers.
The state's Cannabis Regulatory Oversight Office (CROO) report also highlighted the upcoming showdown over whether to regulate or ban the cannabis industry. The report covers the 2024 fiscal year, which ends June 30.
Marijuana remains federally illegal, but hemp is now federally legal as long as it contains less than 0.3% delta-9-THC, the plant's main component that gets users high. Hemp manufacturers have found ways to synthetically create variants such as delta-8-THC, which also get users high.
At least six states, including Missouri and California, have attempted to ban or regulate hemp products and are facing legal challenges. In Illinois, vape shops and gas stations can sell cannabis products without age restrictions, but licensed cannabis sellers must be 21 years of age or older, and there are strict inspection and labeling regulations. is provided.
Law enforcement has also seen a “boom” in sales of hemp flower with high THCA content, which is THC before it is heated for consumption, the report said.
The U.S. Drug Enforcement Administration considers the synthesis of THC to be illegal. Under state law, synthetic products are classified as “cannabis” and therefore should be controlled, CROO reported.
But state police and local law enforcement have struggled to convince state attorneys to prosecute marijuana cases, the report said.
As a result, state officials are pushing for hemp regulation, and the report states that “clarification in the law would certainly help.”
Cannabis business owners want regulation, but counter that they won't get the kind of regulation that was previously proposed and that it would force them out of business.
On the cultivation side, the state Department of Agriculture is building a new lab to check the work of private labs that analyze the potency and purity of pot products. The institute is expected to open by the end of the year.
Looking ahead, regulators also plan to extend medical marijuana tax discounts to all dispensaries, overcoming opposition from some in the industry who wanted to limit the medical market to only the 55 initially licensed stores. Ta.
The market restrictions were another example of favoring older companies, and the stock coalition protested. “We are far from where we want to be. We have a responsibility to get this back on track,” Kontos said.
First published: October 14, 2024 at 6:58 p.m.
