Day 1: Overview of HB1438

HB1438 establishes a highly regulated cannabis market in the State of Illinois. Regulations are focused on the supply side of the market. The law establishes 6 interdependent functions within the supply chain from growth to consumption of cannabis products. That state limits the total number of licenses available at any one time based on an assessment of consumer need for more or less cannabis product. Similarly, the state also monitors and controls the total amount of cannabis to be produced by licensed organizations based on an assessment of data about the amount of product in the market, both regulated and unregulated. 

The Bill calls for a mammoth amount of data to be collected, analyzed and incorporated into administrative decisions regulating the market. Data includes health data, criminal background data, tourism data, data on regulations occurring in other states, and any other data “necessary for the administration of [the Bill]”

15 different departments and a newly created office are tasked with different roles in collecting and executing the data, monitoring compliance and executive corrective or punitive measures in the event of non-compliance. 

The State additionally incentivizes minority participation in the supply chain through a Social Equity Program that reduces barriers to entry by persons disproportionately affected by the War on Drugs, either directly or indirectly.