By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com

SPRINGFIELD – The Illinois Department of Revenue reported Monday that the first month of legalized adult-use cannabis sales in the state generated $7.3 million in cannabis tax revenue for the state, plus another $3.1 million in retail sales taxes that are shared between the state and local governments.

“Today marks another milestone in the successful launch of Illinois’ legal cannabis industry,” Toi Hutchinson, a senior advisor on cannabis policy to Gov. JB Pritzker, said in a statement.

Last year, at Pritzker’s urging, lawmakers passed a bill legalizing the production and sale of adult-use recreational marijuana. The law took effect Jan. 1.

Under that law, marijuana cultivators pay a 7-percent privilege tax on their sales to dispensaries. Retail sales, in turn, are subject to retail sales taxes as well as a special cannabis tax that ranges from 10 to 25 percent, depending on the type of product being sold and its THC content.

Those taxes are in addition to the retail sales taxes levied by the state and the local governments where the sales occur, but they do not apply to products that are taxed under the state’s medical marijuana program.

Pritzker’s budget office had estimated that marijuana sales would generate $28 million in the final half of the current fiscal year, which ends June 30. The Department of Revenue said Monday’s report showed the state is on pace to surpass that estimate.

The state’s share of the revenue is divided among several funds:

• 35 percent goes to the state general fund.
• 25 percent goes into a special fund for community development projects in areas with high arrest and poverty rates that were disproportionately affected by the “war on drugs.”
• 20 percent goes to the Department of Human Services for substance abuse and prevention programs and mental health.
• 10 percent is put into the Budget Stabilization Fund to pay down the state’s backlog of unpaid bills.
• 8 percent goes to local governments to support crime prevention, training and interdiction efforts.
• And 2 percent is used to fund public education campaigns and to support data collection and analysis of the public health impacts of legalizing recreational marijuana.

“Our goal has been to build the nation’s most socially equitable program that includes new opportunities for the communities most harmed by the failed war on drugs,” Hutchinson said in her statement. “Revenue raised in this first month will soon begin flowing back into those communities to begin repairing the damage done by the failed policies of the past and creating new opportunities for those who have been left behind for far too long.”

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St. Joseph, Ill. – The Village of St. Joseph Board of Trustees on Tuesday decided to stay within their timeline of having an ordinance on whether to allow the sale of recreational marijuana drafted by its self-imposed October deadline, but will not vote on the measure on Sept. 10, giving residents more time to make their opinions known.

Mayor Tami Fruhling-Voges said that she was happy to see approximately 70 people attend the public forum at St. Joseph Middle School on Aug. 20.

She felt that the majority of the people talked in opposition to the measure, citing concerns about the availability of marijuana locally.

Fruhling-Voges reiterated some of the points she made at the public forum, stating that it would be costly for the Village to change its zoning and to consider limitations on the sale, just like the Village did when it decided to allow the sale of alcohol in 2006.

She did note at the public hearing that some wanted to see a referendum and that others were interested in the free market.

Fruhling-Voges said that she feels that the Village has been transparent in the matter and that it provided an opportunity for constituents to voice their opinions.

All municipalities will have to make a decision on whether or not they will allow the sale of recreational marijuana within their limits by Jan. 1. The October deadline that was set earlier in the summer was to ensure that there was enough time to get the paperwork done in time for the deadline.

Whether or not the board votes to pursue the measure or to reject it, an ordinance will need to be passed.

Art Rapp said that he felt that the speakers at the public meeting overwhelmingly stated reasons why they did not want to see the trustees create a pro-sale ordinance.

But he said that before the trustees make their decision, the Village should look into the cost of having a referendum and let the public know what that looks like.

He is also concerned that recreational marijuana is still illegal federally and said there are questions as to whether a federal agent would be able to enforce that federal law.

Fruhling-Voges said that there are a lot of unknowns, including whether local governments will be allowed to collect an additional three-percent sales tax on top of the state sales tax.

She also said that she read an article that stated distributors in the black market will sell their product for less than those who are selling it legally. For that reason, she does not feel it will eliminate the black market.

Jim Wagner asked if allowing the sale of recreational marijuana within Village limits would hurt the Village’s chance of getting federal grants. The Village clerk said it might.

He also stated that the sale of alcohol increased patronage at local restaurants.

Trustee Roy McCarty said that he was in favor of creating an ordinance that would not allow the sale of marijuana within Village limits because of all of the unknowns.

Max Painter, who was appointed as Trustee Tuesday night, said that he attended the public meeting, and agreed that the majority of those in attendance were not in favor of the measure, but he continued to say similar arguments about crime and drug use were made when the discussion about allowing the sale of alcohol within Village limits were ongoing.

He said that people within St. Joseph are already using marijuana in their homes, and he did not think it would be different if they purchased it in Champaign or in St. Joseph. Painter believed that conversation was one to be had while legislators were discussing the issue in Springfield.

Village attorney Joe Lierman said that if the board votes on the measure Sept. 10, it will give him the time he needs to create an ordinance based on its decision by October.

The board agreed to continue to listen to constituents, collecting viewpoints until that time.

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St. Joseph, Ill. – What do residents in St. Joseph want their community to look like?

This is the question posed by Mayor Tami Fruhling-Voges at Tuesday’s town hall meeting to gather opinions about the legalization of the sale of recreational marijuana within Village limits. 

All municipalities within the State of Illinois must decide on whether they want to follow the application process to be considered to be one of the towns that are allowed to host one of 75 new licenses to sell recreational marijuana after May 1, 2020. There will be a second wave of licenses issued.

The 55 existing medical marijuana dispensaries throughout the state will be allowed to open recreational dispensaries on their site, and apply to open a second dispensary if the local governments allow it. 

Board members Jim Wagner, Art Rapp and Dan Davis listened to comments at the meeting. Fruhling-Voges said the discussion would continue at the Aug. 27 Board of Trustees study session, then potentially voted on at the Sept. 10 meeting. 

The Village of St. Joseph was a dry town until 2005 when, by request of community members, the Board of Trustees opened up limited liquor licenses for packaged alcohol, restaurants and wineries. The Village continues to not issue bar licenses.

Unlike other states that put the legalization of recreational marijuana on the ballot, Illinois legislators made the measure legal on March 29, 2019, leaving municipalities not with the decision of whether or not marijuana could be used recreationally, but whether or not the municipality would allow the sale within its limits.

Fruhling-Voges said if the state had taken the ballot approach, St. Joseph could understand what the community wanted.

“But now we need to decide what’s best for our community,” she said.

Fruhling-Voges believes that St. Joseph is not a good candidate to be approved for one of state-approved the licenses being in close proximity to Champaign-Urbana and Danville, where medicinal marijuana dispensaries are already located.

She also stated that the cost of the application and registration fees, annual fees and licensing fees are expensive. The Village would also have to consider the costs of enforcing its own rules and regulations, alongside unintended consequences such as drug abuse, mental health issues and possible access by minors.

The community of approximately 4,000 has a hard time supporting local businesses, Fruhling-Voges said. 

“The biggest thing St. Joe needs to consider, even if we thought there was a demand, our local businesses have a hard time making it because of our proximity to Champaign and Danville,” she said.

Fruhling-Voges continued to say that the local IGA struggles because people use it like a convenience store and that establishments like the hardware store went out of business because it’s hard to pay the bills when customers are buying one nail at a time.

Towards the end of her remarks, the Mayor pointed out that Naperville already opted out of applying for a license because the board said that a recreational dispensary did not fit in with the Naperville brand.

Fruhling-Voges said that the St. Joseph brand is a church, family, small-town atmosphere where neighbors help each other. 

“Is this a business that will fit into that image and that brand?” she said. “That’s what the trustees need to decide. 

“What is your brand? What brand do you want the Village of St. Joe to be?” 

Jim O’Brien was the first resident to take the microphone, stating that he believes the Village should take the same path as it did with alcohol and put the issue on the ballot. 

“Then everyone gets a vote,” he said.

Mark Maddock said that the Village made it a priority to change its ordinance in respect to use of golf carts on public roads even though there are not many residents who use them. 

“We permitted the adults to drive them,” he said. “Why limit an adult the ability to buy and sell it in our town.”

Maddock also said that aside from tax revenue the Village would see, the research he did showed benefits to communities that had legalized the drug: 11-percent drop in traffic accidents, people don’t die from marijuana use, the availability of legalized marijuana cuts down on black-market and cartel sales and that violent crimes decrease. 

He implored the trustees to listen to the constituents and find out what the community wants.

Jim Sandquist objected to the idea of going through the licensing and legal process to attempt to get a license because he believed the process and enforcement was a waste of tax dollars. Sandquist believes tax dollars are better spent when used in schools and public infrastructure.

Jackie Martin moved to St. Joseph 20 years ago from Champaign to raise her family in the St. Joseph-Ogden School District. Martin said that families move to St. Joseph to escape the environment in Champaign-Urbana, and the trustees should consider why families move to the town.

Sandy Paprzyca plans to retire in St. Joseph after moving from Chicago in May. A nurse who helped take care of babies who were born with drugs in their system, she also watched her sister pass away from drug addiction.

“I don’t want this to be another Chicago,” she said. 

After working with children for 50 years, Gary Garrison said that he has seen a lot of heartache from drug abuse. He doesn’t believe that marijuana dispensaries will serve St. Joseph economically or socially. 

Garrison said that he has seen marijuana ruin lives, including a man get a 12-year prison sentence over a fight for drugs, and a woman who had black teeth from meth use after beginning on marijuana. 

Les Cotton followed Garrison with his story of redemption to sobriety after going through the Lifeline Connect program. 

Cotton talked about the adverse statistics showing that the first states that legalized marijuana recently issued reports that show an increased in traffic accidents, homelessness and school expulsion.

Urbana resident Vincent Sims said that anyone can find reports that say anything. 

“But can you get buzzed on marijuana?” he asked. “Will that impair you when you get behind the wheel of the vehicle? Yes, it will.” 

Sims was frustrated because he believes Chicago politicians make decisions for downstate Illinois. 

“Just because they say it’s okay, doesn’t mean it’s okay,” he said. 

Greg Smith talked about the increase of children becoming poisoned after ingesting brownies, lollipops and other candies and snacks laced with marijuana.

“What kind of town do you want to leave for your children and grandchildren?” he asked. 

“This isn’t about tax revenue, the Village of St. Joseph is about people.”

John Kenneth Young said St. Joseph residents won’t want their children or grandchildren crossing the street when a driver is impaired. 

“They are putting a price on people’s lives. Every life is valuable. The only reason to have sales is to make money,” he said.

Young said that the St. Joseph community has tripled in size since he moved there, and he attributed that to the town’s values.

“Much of the growth of St. Joe happened because people were escaping the vices of Champaign-Urbana,” he said.

One resident was concerned the proximity of exposure to a marijuana dispensary will make residents of St. Joseph feel the effects of the drug in a greater way than they would if it were not there.

Ryan Anderson said that the discussion of whether or not marijuana would be used in St. Joseph is mute because that State of Illinois has already legalized it.

Anderson believes in the free market, and while he said he does not believe that a marijuana dispensary would thrive in St. Joseph, that is not for trustees to decide.

“If they want to do it, the should be able to try,” he said.

Angela Page agreed that the measure should be put on the ballot, but Fruhling-Voges said that it would not be possible prior to Jan. 1.

“The people who are against it are so passionate about being against it,” said Angela Page. “And the people who are for it are equally as passionate about being for it. I don’t know how anybody would not welcome this to be on the referendum.”

St. Joseph does not fall under the same freedoms as Champaign because it is a non-home-rule community.

Amber Anderson said that even though it cannot be on the ballot this year, it should be a priority for the Village to get it on the ballot. 

She pointed out that the Village made it a priority to make sure that the golf cart ordinance was passed. 

“Maybe it depends on who wants it pushed versus who doesn’t want it pushed,” she said. 

A math professor, Anderson encouraged the Village not to take a straw poll as was suggested by some in the crowd because the 60 attendees did not represent a good sample size. 

“If we actually want the community input, then we should put it on the ballot,” she said. 

Anderson called for a commitment.

Sara Buttjer, a teacher, said that it is the responsibility of adults to set an example for the children they serve.

“We are an example for our children, the children will take that example,” she said.

Amber Anderson said that arguing the good and bad of marijuana is beside the point because it has already been made legal within the state. 

She said that like alcohol, there are limitations that have been set and consequences put in place to provide regulations.

“This isn’t a free-for-all,” she said.

Sandquist said he pays four-times what any of his family members pay for property taxes, and he reiterated that he does not want to see that money wasted on studies and legal fees for marijuana. 

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St. Joseph, Ill. – A new state law doesn’t necessarily mean a new amount of tolerance in area communities.

Gov. J.B. Pritzker, who was elected earlier this year, signed a bill on Tuesday that will legalize marijuana (up to one ounce per person for adults 21 and older) in the state effective on Jan. 1, 2020.

Much like some villages remained dry after alcohol sales became legal in the state in 1933, there will be room for individual communities to continue to ban the possession of marijuana, which in turn could subject those who violate that policy to arrest.

No decisions have been made, but those conversations will be undertaken throughout the area soon.

St. Joseph president Tami Fruhling-Voges expects the topic to be broached in her village.

“Our village board has not formally discussed what we will do,” Fruhling-Voges said. “From previous discussions, I get the impression that if we have the option to opt out, that this may be the approach we take.”

Even though the bill – which easily passed through both the house and senate – is law, it won’t automatically happen in St. Joseph.

“The village’s zoning would have to be updated to be sure that if we allowed the sale of marijuana in the village that we would have proper placement for this kind of business,” Fruhling-Voges said.

Early feedback, the village president said, has not been supportive of the legislation.

“The community members that have spoken to me about this possibility have so far not been in favor of this kind of business in our community.” Fruhling-Voges said.  “St. Joseph is very much a family-friendly community with a lot of small-town values. A marijuana business would probably not be welcome or have much success.”

At this time, she is listening and forming opinions, but nothing is set in stone.

“If the village started to receive overwhelming requests from community members for this type of business, we would have to look at all the pros and cons along with putting into place proper restrictions to protect the community,” Fruhling-Voges said. “We will also be consulting with our village attorney about what restrictions will be needed for legal marijuana use in public places within the village.”

In the event that the village does approve marijuana possession, it could still not be allowed at certain locations.

“Marijuana usage on private property of rental properties will be made between the property owners and their tenants,” Fruhling-Voges said. “St. Joseph does not regulate rental property within the village.”

The village president sees several issues which as yet do not have definitive answers.

“Long- and short-term ramifications are, of course, hard to know for sure, but as a mayor and a citizen, my concerns are:  how it will affect our young people who will potentially have more availability for access, the additional impaired drivers on the roads, what kind of legal problems will come our way as an employer enforcing no-drug policies on the job especially with those using heavy equipment and putting other employees or the public at risk,” Fruhling-Voges said. “There is mixed and conflicting information being presented from those states who have already legalized recreational marijuana. 

“The Village of St. Joseph will most likely pass on a few tax dollars and not include our community in the State of Illinois’ experiment with recreational marijuana.”

The new law permits possession, consumption and sales of cannabis – as well as for certified medical marijuana patients – growing it in small quantities (up to five plants) at home. State Sen. Heather Steans, a Chicago Democrat, is a co-sponsor of the bill.

The Illinois Department of Revenue has estimated that within five years, tax revenue on cannabis products could generate in excess of $375 million annually.

 The issue has also drawn the attention of Sean Widener, the Village of Mahomet president.

“I don’t think it’s a good idea,” Widener said, “but I’ll wait and see how the state rolls it out as far as regulations and how they will handle it.

“We will have conversations about how we will adapt. It’s troublesome for police staffing.”

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While the use of recreational marijuana continues to be illegal under federal law, Illinois residents will be able to purchase and possess up to 30 grams of cannabis flower or 5 grams of cannabis concentrate or no more than 500 milligrams of THC contained in a cannabis-infused product at a time.

Non-residents will be allowed to purchase and possess up to 15 grams of cannabis flower; 2.5 grams of cannabis; and/or no more than 250 milligrams of THC contained in a cannabis-infused product.

Cannabis sales will be taxed at seven-percent of the gross receipts from the sale of cannabis by a cultivator or a craft grower to a dispensing organization while consumers will pay 10-percent of the purchase price for cannabis with a THC level at or below 35%; 20-percent of the purchase price for all cannabis-infused products; and 25-percent of the purchase price for cannabis with a THC level above 35-percent.

The Illinois Department of Revenue projects that the marijuana industry will generate over $57 million in tax revenue and licensing fees in FY20 and, in tax revenue alone, $140.5 million in FY21, $253.5 million in FY22, $323.5 million in FY23, and $375.5 million in FY24.

Twenty-percent of state cannabis revenue will support efforts to address substance abuse and prevention and mental health. Twenty-five percent of state cannabis revenue will be transferred to the Criminal Justice Information Projects Fund to support the R3 program.

Purchases must be made at a licensed and established dispensary. Licensed cultivation centers could grow product while medical marijuana patients will be able to grow up to five plants at home for personal use.

The law, which was signed by Ill. Gov. Pritzker on Tuesday, June 25, also will also expunge roughly 700,000 criminal records for those who have previously purchased or possessed 30 grams of cannabis, or less.

House Bill 1438 will go into effect on Jan. 1, 2020. Local governments retain the right to regulate the location of a cannabis business and home growing.

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