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State, Insiders Stand to Benefit From Illinois’ Medical Marijuana Law
Writer/editor, Illinois Policy Institute
Posted: 06/20/2014 5:52 pm EDT
Illinois became the 20th state in the U.S. to legalize medical marijuana in July 2013. But the Illinois law, which allows for a four-year medical marijuana pilot program, could be the next big windfall for cronyism in the state.
Political favoritism may already be cropping up in Illinois’ newly established medical marijuana industry, and barriers to entry could be steep as the state may impose hefty application and permit fees.
Competition to become established in Illinois’ medical marijuana business is stiff. Under the pilot program created by the new state law, Illinois will allow only 60 marijuana dispensaries and 22 growing centers.
This industry is expected to mean big money for those who land much-coveted business rights — last year, California’s medical marijuana sales were $1 billion. And in Illinois, a state notorious for corrupt insider dealings, the politically connected often get first dibs.
Those wanting a shot at one of the precious few dispensary and growing center slots are already jockeying for position. Anyone wanting to open one of these businesses must submit the name of the business, proposed location, relevant agricultural experience and much more information.
One person seeking medical marijuana registration from the state is Sam Borek, a former college roommate of Lou Lang, the state representative who sponsored Illinois’ medical marijuana law. According to CBS St. Louis, Borek has reserved at least three-dozen marijuana-related business names.
A friend of the governor is trying to get in on the action as well.
Chicagoan David Rosen, who was Gov. Pat Quinn’s chief fundraiser in 2010, plans to open a medical marijuana business in Nevada called “Waveseer” — and interestingly enough, he has also registered the same business name in Illinois.
Ultimately, the state will have the sole authority to decide the businesses it feels are best suited to operate under the new state law, and that will leave open the possibility for lawmakers to grant special favors to those applicants who are politically connected.
And any applicants who do receive registration through the state will have to comply with numerous regulations.
Under proposed regulations for the pilot program, the state would require dispensaries to pay a $5,000 nonrefundable application fee, a $30,000 permit fee and a $25,000 in annual permit renewal fee. Anyone wanting a dispensary permit will also have to show proof of $50,000 in escrow or bonds.
The application fee for growing centers is even steeper, at $25,000. Growing centers also have to pay a $200,000 fee after its permit is approved, plus a $100,000 renewal fee. Applicants would also have to prove that they have $2 million in escrow or bonds.
And if owners want to make changes to their business, there could be a fee for that, too.
Under the proposed regulations, the state could charge growing centers $1,000 to change their business name, to alter stock ownership or change principal officers.
These hefty fees certainly limit the number of people who can afford to open a business in a booming industry.
Given the level of state involvement in Illinois’ medical marijuana industry, it’s not hard to imagine opportunities for corruption. So as marijuana-related business licenses begin to roll out of Springfield, Illinoisans would be wise to pay attention to who’s reaping the benefits.
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Illinois’ Proposed Medical Marijuana Rules Could Squeeze Out Small Businesses
Proposed Illinois Medical Marijuana Rules Marijuana Illinois Marijuana Laws Medical Marijuana Illinois Medical Marijuana Rules Illinois Medical Marijuana Proposed Rules Chicago News
Medical marijuana regulations recently proposed in Illinois could be a major buzzkill for the state’s entrepreneurs and other small business owners.
Under the proposal from the Illinois Department of Agriculture, legal pot businesses would need approximately half a million dollars in startup costs. The program would require pot dispensaries to pay a $5,000 nonrefundable application fee, show proof of $400,000 in assets, pay a $30,000 permit fee and fork over a $25,000 yearly permit renewal fee.
Cultivation centers would be required to pony up a $25,000 nonrefundable application fee, prove they have $250,000 in liquid assets, pay a $200,000 fee once the permit is approved and pay a $100,000 renewal fee.
Additionally, local governments would be able to charge their own dispensary and cultivation center fees.
“Probably 50 percent of the wannabes are now out,” Joseph Friedman, a suburban Chicago pharmacist hoping to opening a dispensary, told the Chicago Tribune. “This is going to bring out just the serious players who are well-capitalized and well-credentialed.”
Regulators have been slowly hammering out the various rules for potential users, growers and dispensary vendors since the state’s medical weed law — the strictest in the nation — went into effect earlier this year. Medical marijuana advocates worry the new proposals for dispensaries and cultivation centers could price out suffering patients and ultimately threaten the success of the nascent pilot program.
“This program was designed, proposed and passed to help sick people,” Dan Linn, the executive director of the Illinois chapter of the National Organization to Reform Marijuana Laws (NORML), told The Huffington Post. “But now it seems the state has wrapped itself up in the bureaucracy and this is all going to be on the backs of sick people.”
Linn said the some of the high regulation fees will help keep the pilot program cost-neutral for the state and also weed out “the perceived trouble makers” hoping to get rich quick in the medical marijuana gold rush.
The downside, Linn said, is what he calls the “trickle-down” cost to medical marijuana patients. “A lot them are sick and on disability and can’t afford the [high price of] legal medical marijuana. You’ll see patients who sign up for a card and never use it.”
Linn notes that if the fees are passed on to customers and medical weed becomes significantly more expensive than that on the street, dispensaries and clinics won’t have enough business. “Ultimately,” he said, “that could make or break this program.”
Real estate is shaping up to be another challenge for potential medical marijuana businesses, with local governments in the Chicagoland area tinkering with zoning laws that could restrict pot businesses’ already limited options.
Other proposed regulations would require medical marijuana patients to be fingerprinted, undergo a background check and pay $150 yearly fee for a special photo ID card, the Associated Press reports.
Regulators will take public input on the proposals until Feb. 27.
Illinois: Widow Who Pushed For Medical Marijuana Not Allowed To Use It Under New Law
- 2013
- arthritis
- chicago
- compassionate use of medical cannabis
- directeffect charities
- fibromyalgia
- Illinois
- medical marijuana
- Medicinal Cannabis
- michelle digiacomo
- pat quinn
- pilt program
- Political
- public schools
- rotator cuff
- stenosis
By Steve Elliott
Hemp News
Michelle DiGiacomo of Chicago won’t be allowed to use medical marijuana under the new law in Illinois — because she used medical marijuana before the law passed.
When police stormed DiGiacomo’s North Side Chicago apartment last year, she had known the day could come, since marijuana was still illegal in Illinois even for medical reasons. But she was still unprepared.
“I was about to experience the worst 28 hours of my life,” said DiGiacomo, 53, who runs Direct Effect Charities, which serves needy Chicago Public Schools kids, reports Maudlyne Ihejirika at the Chicago Sun-Times. “We had discussed this possibility in the past; one I had hoped would never come to be.”
The widowed mother had used marijuana for the past five years to control the pain of fibromyalgia, rheumatoid arthritis, spinal stenosis and rotator cuff disease. Pharmaceuticals had resulted in adverse reactions, or had failed to provide relief.
After he September 13, 2012 arrest, she pleaded guilty on March 5 to Class 4 felony possession of marijuana, just five months before Gov. Pat Quinn signed the state’s medical marijuana bill into law.
Now she’s not allowed to take part in the program, because under the Illinois Compassionate Use of Medical Cannabis Program Act, a felony conviction disqualifies her from accessing medical marijuana. Advocates say the story highlights the new law’s shortcomings.
DiGiacomo has “several chronically painful conditions,” according to Dr. Andrew Ruthberg, a Rush University Medical Center rheumatologist who has treated her for years. These include “rhematoid arthritis, a cervical spine disorder — which has required surgical repair — rotator cuff disease involving both shoulders, and a more recent lower back pain disorder.”
Dr. Ruthberg added that DiGiacomo has “had difficulty tolerating many traditional medications, and I fully believe that [her] use of marijuana has been solely for the purpose of trying to moderate chronic pain.”
“Pain is a daily issue living with these conditions,” said Dr. Howard An, Rush University Medical Center’s director of spine surgery, who has treated DiGiacomo since September 2010 and performed her spinal fusion surgery. “I know that [she has] tried numerous traditional medications without any relief. I fully believe that … use of marijuana has been for the use of controlling … chronic pain.”
“I made the difficult choice to use medical marijuana even though it was illegal, and I always felt like a criminal,” she said. “I did not want to get my medication in the street, so I made the hard decision to purchase it from a medical dispensary in California and receive it in the mail. It was terrifying. It was a horrible way to live.”
Minutes after she received 670 grams of marijuana from California in the mail, on September 13, 2012, police were at the door.
“I opened up to multiple guns pointed at me,” she said. “A police officer screamed, ‘Who’s in here?’ I told him, ‘Myself and my 14-year-old daughter.’ He asked where the guns were. I told him I had no guns. He asked where the drugs were. I told him where the small amount of medical marijuana I had in the house was, as well as what had just arrived.”
“Michelle DiGiacomo is not a criminal,” said Spencer Tweedy, whose father, Wilco’s Jeff Tweedy, and mother, Susan Miller Tweedy, are longtime supporters of her charity work for school children. Spencer Tweedy helped raise $3,000 toward DiGiacomo’s legal fees.
This is a woman who despite her numerous and severe ailments has dedicated her life to charity work,” Tweedy said. “When [the poilice] impounded her car, it was filled with school supplies headed for impoverished students. The cost of defending herself against the law has crippled her more than her diseases ever have.”
Spending the night in Cook County Jail was “the most degrading experience of my life,” DiGiacomo said.
For six months, she fought to avoid a felony conviction that could severely impact her work as the CEO of a nonprofit. But the Cook County Attorney’s Office wouldn’t negotiate, refusing to lower the charges from a felony to a misdemeanor, or to grant DiGiacomo 410 probation, which allows for expungement of first-time drug offenders.
“I was really surprised,” said her attorney, Michael Rediger. “The state’s attorney refused to even look at the fact that her doctors verified she was taking this as part of a medical treatment for pain, and that she did in fact have a California medical marijuana license; or to consider her longtime charitable work and the fact that she’d never been convicted of any other crime, not even a misdemeanor, nothing.”
Unable to afford trial, DiGiacomo pleaded guilty to Class 4 felony possession of marijuana. She got a year of probation, and went public, adding her story to the cacophony of stories used to exemplify the need for the law.
“Ms. DiGiacomo’s story … highlighted how not having a medical cannabis law hurts good, honest, hardworking people like her,” said Dan Linn, executive director of the Illinois chapter of the National Organization for the Reform of Marijuana Laws (NORML).
“There’s a perception that we don’t need to pass medical marijuana legislation because police wouldn’t be cruel enough to arrest a sick person just trying to ease their suffering,” said Dan Riffle, director of federal policies for the Marijuana Policy Project (MPP), based in Washington, D.C.
“Yet here’s a mother running a charity that helps thousands of kids, who was arrested at gunpoint … and will live the rest of her life as a felon, all because she is sick and marijuana helps her, as her doctors have attested,” Riffle said. “Stories like hers and other patients who were either arrested or lived in fear of arrest gave legislators reason to finally take action.”
“It Illinois, individuals with criminal histories are banned from the program, and it really makes no sense,” said Chris Lindsey, legislative analyst for MPP. “I have already been in discussions with the bill sponsor … about fixing some of the troubling areas of the law.
August 1 was bittersweet, DiGiacomo said, as she sat with other patients who stories helped the lobbying effort, watching Gov. Pat Quinn sign the bill into law.
“It was surreal to be with other patients who had worked for a very long time to make it happen,” she said. “While relief has finally arrived for them, it still has not for me, as my conviction will prevent me from getting the medicine that helps me the most.”
(Photo of Michelle DiGiacomo with Illinois Gov. Pat Quinn: Direct Effect Charities)
Illinois town says they can’t handle medical marijuana businesses if state MMJ bill passes
By William Breathes in Legislation, Medical, News
Wednesday, January 30, 2013
Knee jerk? You betcha. Keep in mind that medical marijuana isn’t even legal in Illinois. So these people are wasting their time banning businesses that can’t even exist according to their state law.
The Illinois state legislature failed to pass medical marijuana laws in the 2012 session, but lawmakers have introduced an almost identical bill again this session. Dubbed House Bill 1, or the Compassionate Use of Medical Cannabis Pilot Program Act, the proposal would allow for cultivation and distribution businesses in the state for a limited, trial period. The 2012 version also made possession of up to two ounces legal and would have made driving within six hours of medicating illegal.
Libertyville officials say that if the bill were passed, they wouldn’t be able to handle the zoning requests through their current code. The resolution the town passed January 22 – which is contingent on the state passing House Bill 1 – would require a public hearing on whether or not the town should adjust their zoning to allow medical marijuana businesses at all. It’s basically a ban, without really being a ban.
Multiple calls to the town trustees and mayor were not immediately returned. We’ll update this post if/when we hear back.
Also on the chopping block at the January 22 town meeting were sex-related businesses. The town lingerie store would be spared, but all other stores selling porno flicks and vibrators (and any strip clubs) will be forced to operate in the industrial district on the edge of the Chicago suburb.
So while you can still get a lap dance in Libertyville, there’s apparently no room for people providing compassionate pain relief.