Public Act 101-0027, which creates the Cannabis Regulation and Tax Act (the “Act”), was signed into law on June 25, 2019. By legalizing the sale of recreational cannabis in Illinois effective January 1, 2020, the Act will have immediate and significant impacts on local governments.
As a result of the Act, the Village must make some policy decisions, including whether to allow recreational cannabis business establishments at all. If the Village chooses to “Opt-Out”, an ordinance must be passes to prohibit recreational cannabis business establishments. If the Village does not Opt-Out, then amendments to various Village Codes (such as the zoning code) must be made to ensure proper regulatory policies and procedures are established to manage such establishments.
Another decision for municipalities that do decide to allow recreational cannabis business establishments is whether to impose Municipal Cannabis Retailers’ Occupation Tax on sales of recreational cannabis. The Municipal Retailers’ Occupation Tax can be up to 3% (in .25% increments) and is imposed in addition to other State and local taxes.
This topic will be discussed at several public meetings:
Upcoming (Date to be determined): Planning & Zoning Commission Public Hearing
Joint Village Board and Planning and Zoning Commission Meeting – Public Act 101-0027, Recreational Cannabis (Part II)
Tuesday, October 8, 2019
7 PM | Village Board Room – 3rd Floor of Village Hall
This meeting introduces draft ordinances for discussion only (no votes will take place), for both an opt-out and an opt-in plan of action.
Joint Village Board and Planning and Zoning Commission Workshop– Public Act 101-0027, Recreational Cannabis
Tuesday, September 24, 2019
6 PM | Village Board Room – 3rd Floor of Village Hall
Public Act 101-0027 – Full text of the Act as posted on the Illinois General Assembly website.
Illinois Municipal League (IML) Cannabis Page - Includes fact sheets, model ordinances and FAQs.
International City/County Management Association - Report on Local Impacts of Commercial Cannabis.
2018 midterm election Cook County referendum results for Mount Prospect - The countywide referendum asked residents if they support the legalization and sale of cannabis for those 21 and older.
What Municipalities May Regulate, per the Act• Municipalities may enact ordinances to prohibit or significantly limit a cannabis business establishment’s location, and may enact reasonable zoning ordinances or resolutions regulating cannabis business establishments.
• Municipalities may enact reasonable ordinances or rules governing the time, place, manner and number of cannabis business establishment operations, including minimum distance limitations between cannabis business establishments and locations it deems sensitive, including colleges and universities, through the use of conditional use permits.
• Municipalities may establish civil penalties for violation of an ordinance or rules governing the time, place, and manner of operation of a cannabis business establishment or a conditional use permit.
• Municipalities may regulate the on-premises consumption of cannabis at or in a cannabis business establishment within its jurisdiction in a manner consistent with the Act.
• The Act allows municipalities to levy, by ordinance, on or after January 1, 2020, a Municipal Cannabis Retailers’ Occupation Tax of up to 3% in 1/4% increments. Revenue received from the tax is collected by the Department of Revenue and deposited into the Local Cannabis Consumer Excise Tax Trust Fund. Revenues deposited are then redistributed by the Department of Revenue back to municipalities on a monthly basis based on the amount collected from sales made in the municipality during the second preceding calendar month.
What Municipalities Cannot Regulate• The Act includes Home Rule Preemption language, prohibiting all local governments from regulating or licensing the activities described in the Act, except as otherwise provided in the Act.
• Municipalities may not prohibit home cultivation by medical cannabis patients or unreasonably prohibit use of cannabis authorized under the Act.
• Cannabis business establishments or other entities authorized or permitted by a municipality to allow on-site consumption shall not be deemed a public place within the meaning of the Smoke Free Illinois Act.
Other Information – for Individuals• Employers are not prohibited from adopting reasonable zero tolerance, drug free workplace policies, or other drug-related policies provided the policies are applied in a nondiscriminatory manner.
• Employers are not required to permit employees to be under the influence of or use cannabis in the workplace, or while performing job duties or while on call.
• Employees may be disciplined for violating a workplace drug policy.
• Driving under the influence of cannabis remains illegal, and law enforcement officials may use validated roadside chemical tests or standardized field sobriety tests approved by the National Highway Traffic Safety Administration when conducting investigations of a violation of Section 625 ILCS 5/11-501 of the Vehicle Code or a similar local ordinance by drivers suspected of driving under the influence of cannabis.