IL: Frerichs Seeks Commonsense Change To Protect Medical Marijuana Patients

[Katelyn Baker]

The availability of medical marijuana in Illinois is in jeopardy depending upon how the Trump administration approaches the enforcement of marijuana and banking laws, Illinois State Treasurer Michael Frerichs said. Current federal law prohibits banks from processing money used in the legal marijuana industry, even state-licensed medical marijuana in Illinois. This makes it difficult for businesses to secure loans and restricts customers to cash-only transactions. The legal marijuana industry has operated with limited confidence it will not face criminal prosecution after President Barack Obama's Justice Department stated it would not prioritize the enforcement of federal marijuana laws knowing that many states have legalized some marijuana use. This guidance is particularly important when considering that President Trump's nominee for attorney general is Jeff Sessions, the U.S. Senator from Alabama. As attorney general, Sessions would have the authority to change President Obama's directive and instead prioritize marijuana-related inquiries. Today, most refuse to provide banking services to those in the medical marijuana industry while smaller community banks do so with great trepidation. Few Illinois residents realize that Illinois' Medical Cannabis Pilot Program is in a testing stage and authorization sunsets in 2020. The Trump administration's approach to banking services plays a critical role in the future availability of medical marijuana in Illinois and will be a strong consideration when lawmakers decide to expand or kill the pilot program. Medical marijuana taxes and fees are remitted to Frerichs' office for investment. Consumer sales are taxed at the 1 percent pharmaceutical rate. Additionally, there is a 7 percent privilege tax imposed on cultivation centers and dispensaries. Ordinary payroll and income taxes also are paid. According to the Illinois Department of Public Health, it approved approximately 14,700 applications to use medical marijuana since the Medical Cannabis Registry opened on Sept. 2, 2014. There are 49 licensed dispensaries in Illinois. Total retail sales since the first sale is $37.9 million. Total wholesale sales since the first sale is $23.3 million. Illinois has collected $15.7 million in licenses, taxes, and fees. Illinois first began selling medical marijuana in November, 2015.

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Full Article: Frerichs Seeks Commonsense Change To Protect Medical Marijuana Patients
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