Marijuana Business Magazine - Issue 09, Oct 2017

MARKET AT A GLANCE Main measure House Bill 1 Year passed 2013 Cannabis business regulations Very heavy. Illinois is a complex market for MMJ businesses to navigate. The state has implemented caps on the number of dispensaries and cultivation sites allowed to operate, and licensing fees are pricey. Strict rules govern nearly all aspects of business operations, including location, security, inventory tracking and testing. Illinois' MMJ program is techni- cally a pilot program, set to expire July 1, 2020. Patient registry Mandatory – a recommendation from a physician is required, and patients are required to submit fingerprints and undergo a background check. Sampling of state medical marijuana licensing fees Application Dispensary - $5,000 Cultivators - $25,000 What to watch In March, a federal judge struck down an Illinois law barring MMJ businesses and canna- centric political action committees from donating to PACs and candidates within the state. The development could allow the state’s MJ industry to exert more influence over politi- cians and give it a bigger say in local elections. As of July 31, more than 23,000 patients had enrolled in Illinois’ MMJ program – up 57% from December 2016. Such strong growth appears to be attracting out-of-state MJ brands look- ing for their next opportunity. Kiva Confections – a major manufacturer of infused choco- late edibles based in California – struck a partnership with Illinois-based Cresco Labs that allows Kiva to sell its products in the state. ¬llinois The size of the medical marijuana patient pool in Illinois tripled throughout the course of 2016, driven by a stream- lined MMJ recommendation process and the addition of post-traumatic stress disorder and terminal illness to the list of qualifying conditions. Patient counts also have continued to rise in 2017, suggesting that the state’s MMJ program may have found its footing. The growth in patients was sorely needed, because Illinois’ medical marijuana businesses – which face some of the most expensive licensing fees in the nation – have struggled to remain financially viable. License Dispensaries - $30,000 (new), $25,000 (renewal) Cultivators - $200,000 (new), $100,000 (renewal) October 2017 • Marijuana Business Magazine • 125