A new law passed by the state of Illinois and Michigan that would allow recreational marijuana has drawn attention from all sides. The measure passed by the House of Representatives on Tuesday is the result of months of work and has been supported by both marijuana proponents and opponents. The bill was sponsored by state rep. Kelly Cassidy, a Democrat from Chicago, and Sen. Heather Steans, a Democrat from the surrounding area.
Michigan and Illinois are ahead of many other states when it comes to regulating cannabis. Unlike New Jersey, Michigan has no statewide limit on the number of licenses issued to cannabis companies. However, without any such limit, local municipalities cannabis growing outdoors can issue dozens of licenses. Consequently, this could create oversaturated markets and result in some dispensaries failing to thrive. In addition, the federal prohibition against marijuana can be a hurdle for many businesses.
The state has not yet decided what tax rate should be set, but it has approved the tax. Currently, 37 retailers have been licensed in Illinois. Twenty-four of them are located in the Chicago area. The tax rate will be determined by legislative action, but it is likely to increase with time. The state has also passed an expungement provision, which allows individuals who were convicted of marijuana crimes to have their convictions erased.
While Michigan’s medical marijuana market is already established, Illinois’ market is smaller and has fewer patients. The state’s medical marijuana industry started in 2014 and now includes 55 licensed dispensaries and 20 growers. The state also plans to impose a 7% gross receipts tax on marijuana sales. Those selling marijuana to non-residents will pay 3% of the retail price, while those selling it to adults will be taxed at 20% of the total sales price.
After the passage of the new legislation, Illinois may soon be joining the ranks of states that have legalized recreational marijuana. Two states, Colorado and Washington, have already legalized recreational marijuana, and several others are on the way to legalization. Despite the legalization of marijuana, the drug is still illegal at federal level. For now, however, the legalization process is underway in Michigan and Illinois.
Orion Township, Michigan, is one of the first to implement the legalization of recreational marijuana, and is one of the early movers in the industry. The township has strategically placed provisioning centers, enticed businesses, and raised hundreds of thousands of dollars in direct licensing fees and other revenue taxes. The new cannabis revenue even paid for the new township hall! It seems that Michigan is finally on track to follow Illinois’ lead.
In Illinois, residents who are 21 years old can possess up to 30 grams of cannabis or up to five grams of cannabis concentrate. They can also buy cannabis-infused products that contain 500 milligrams of THC. And in Michigan, the law allows residents to grow up to 12 plants at home. Licensed home page growers are allowed to grow up to 2,000 plants, while registered medical marijuana users can only grow five plants at home. While it is still illegal to purchase marijuana at a dispensary in Illinois, licensed medical marijuana growers will expand the retail market for recreational weed.
The Michigan law also allows recreational marijuana sales, although a halt to the sales of cannabis-infused vape cartridges is temporary and a thorough testing of existing products is required. The state said this move was a response to health concerns posed by the vitamin E acetate, a compound found in THC oil. This provision has caused a number of accidents and even deaths.
A law introduced in Michigan by the House of Representatives in 2018 was designed to address the concerns of criminal records scrubbing by providing a safe way for marijuana users. The measure also requires that at least twenty percent of the tax collected from marijuana sales be reinvested into communities where marijuana use is a significant problem. The bill has already passed the House and now goes to the Senate.
Many opponents of legalizing marijuana in the U.S. argue that the legalization of marijuana will not increase crime. A study by the Cato Institute, a libertarian think tank in Washington D.C., notes that legalizing marijuana has had little impact on crime rates, despite the lack of statistical data. A study from the National Bureau of Economic Research also showed that the law would have little impact on traffic crashes in legal cannabis communities.