On December 19, 2019, at 6:30pm the Village Board held a Special Village Board Meeting in regards to the Cannabis Regulation and Tax Act (CRTA). The Cannabis Regulation and Tax Act (CRTA) became law on June 25, 2019, and goes into effect on January 1, 2020. The law legalizes responsible cannabis use throughout Illinois and provides regulation guidelines for the production and sale of recreational cannabis via local cannabis dispensary stores. While the act does not allow for the prohibition of responsible use of cannabis, it does allow municipalities the ability to regulate and/or prohibit dispensaries and other cannabis establishments from locating within its jurisdictions. The Village Board has received significant input from the community on the issues and has discussed the legislation at several public meetings and workshops in October, November and December.
Presented for approval at the December 19 Special Village Board Meeting was an ordinance that formally prohibits (opt-out) cannabis business establishments from locating within the Village limits. This ordinance passed with a majority vote. The Village Board will continue to assess community sentiment on the issue and will monitor the benefits and effects of the cannabis legislation as it goes into effect January 1, 2020, and plays out in the region. In order to further assess public sentiment on the topic, the previously approved advisory question on whether to allow the operation of a recreational cannabis dispensary in town will be filed with the counties and will appear on the March 17, 2020, Presidential Primary Election ballot as an advisory referendum question for Village registered voters.
In addition to the opt-out ordinance which passed at the December 19 Village Board Meeting, presented for approval and passed by a majority vote, was a resolution rescinding a previously approved resolution that would have authorized a second advisory question related to police pension funding. As a result of this action, the following question will appear on the March 17, 2020, ballot as the only question from the Lemont Village Board:
“Shall the Village of Lemont, in Counties of Cook, Will and DuPage, Illinois, allow the operation of a recreational cannabis (marijuana) dispensary within its jurisdiction?”
The prepared staff meeting agenda packet, the PowerPoint presentation and other resources regarding the legislation can be obtained at the following links:
- Adult Use Cannabis Workshop Agenda Packet - October 3, 2019
- Adult Use Cannabis Informational Meeting - October 8, 2019 Village Board Public Meeting
- Village Board Committee of the Whole Meeting - November 18, 2019 - Recreational Cannabis Unified Development Ordinance Text Amendments Discussion Item
Links will be provided once agendas packets are final and minutes are approved.
Questions and Responses
No, municipalities cannot ban or override the CRTA. However, they can enforce related local ordinances consistent with the Act, such as violations for consumption in public places, schools, etc.
As a result of the new State legislation, the consumption of cannabis as of January 1, 2020, will be treated similarly to that of the consumption of alcohol with any Illinois resident, or non-resident, 21 or over, now being able to purchase and consume cannabis.
Illinois residents may possess up to:
- 30 grams, or just over one ounce of "flower"
- 5 grams of cannabis concentrate
- 500 milligrams of THC - the chemical that makes users high - in a cannabis infused product such as dummies, candy, other consumable products (referred to as "edibles"), or tinctures, and lotions
- Non-Illinois residents may legally possess up to 1/2 of these amounts
Any person, business, public entity, or landlord may prohibit the use of cannabis on private property.
Home Grow Cannabis will be limited to authorized medical cannabis participants and is limited to five plants.
Does the state have any restrictions on where a facility can locate and can the Village make location more restrictive than the State rules?
The only provision in the state law is that dispensaries cannot locate within 1,500 feet from one another. The Village has the ability to put into place stricter rules on where they can locate based on zoning and other locational factors.
The CRTA allows Illinois municipalities to choose whether they will allow ("opt-in") or prohibit ("opt out") the local retail sale of adult-use cannabis by businesses within their jurisdiction.
Municipalities may choose to opt out, or prohibit, adult-use cannabis businesses. If a municipality chooses to opt out, it may adopt and enforce local ordinances to regulate the possession, public consumption, cultivation, growing, processing, dispensing, and transporting of adult-use cannabis as long as the regulations and penalties are consistent with the CRTA.
No. "Opting out" only refers to the location of facilities within the Village limits. The Village cannot prohibit the lawful use, transportation or storing of cannabis.
Along with dispensaries, the state law allows for cultivators, infusers, craft grows, transporters and on premise consumption. The Village has the ability to regulate all of these components as well.
Municipalities may choose to opt in or permit adult-use cannabis businesses. By opting in, municipalities may enact zoning ordinances and regulations that designate the time, place, manner and number of cannabis business operations. This would also include requiring minimum distances, not only between cannabis business location, but also between cannabis business locations and certain types of other businesses throughout the municipality. Additionally, municipalities have authority over whether on premise use is allowed.
In addition, municipalities that opt in may impose a Municipal Purchase Excise Tax on adult-use cannabis products of up to 3% of the purchase price. The taxes imposed under the CRTA are in addition to all other taxes imposed by the municipality and the State of Illinois.
What type of revenue stream can the Village expect if a facility locates within Village limits? Are there any restrictions on how the revenue can be spent?
Being a brand new industry, projecting revenue is difficult. Experts are projecting anywhere from $300,000 to $600,000 per year to the municipality in which a dispensary locates.
While there is no state law limiting how revenues from cannabis sales can be spent, the Board discussed conceptually at the workshop that money should be dedicated to payments toward debt and/or pension contributions.
The majority of the taxes on cannabis sales will go directly to the state. There is a small component that will be shared to municipalities via population.
There is no requirement that a municipality acts at all. However, if there is no action prohibiting or allowing subject to zoning regulations, it's our understanding of the law that a facility could locate anywhere within the Village. Putting regulations in place ensures the establishments are directed to districts which are most appropriate.
If the Village allows cannabis establishments in certain zoning districts, what are the chances a facility will locate in Lemont?
The location of the establishments in Lemont remains to be seen. Companies are evaluating sites against one another and will likely make decisions based on being allowed to locate and other decisions similar to retail.
What are the next steps in the Village's decision making process and how can I learn more about the issue?
The Planning & Zoning Commission will be reviewing proposed changes to the Village's UDO at their November 6 meeting. After this meeting, the Village Board Committee of the Whole will review the PZC's recommendations at their November 18 meeting.
Additional questions with responses will be added to this web page along with other information regarding the adult use cannabis legislation as it becomes available. If you have any additional questions you can contact the Village at 630-257-1590 or by email.