For the last several months, to no avail, Illinois News Joint has been trying to confirm an official on-the-record comment from the Cannabis Regulation Oversight Office (CROO) and/or the Department of Financial & Professional Regulation (IDFPR) about if or when registered medical cannabis patients would be allowed to receive the medical tax rate at any dispensary in Illinois (instead of only licensed medical dispensaries). Last week, Illinois officials released the Annual Cannabis Report for Fiscal Year 2024. Inside the report, IDFPR announced its first official written words on the subject.

In the 144-page report, compiled by the Cannabis Regulation Oversight Office (CROO), the Department of Financial & Professional Regulation (IDFPR) states in its data summary, “Looking ahead to Fiscal Year 2025, IDFPR has already begun its efforts to further expand access to cannabis both to consumers and medical patients. In coordination with the Cannabis Regulation Oversight Office (CROO) and legislators, IDFPR has begun efforts to allow medical patients to receive their medical tax rate at any dispensary in Illinois. This development harkens back to the ‘compassion’ in the original Compassionate Use of Medical Cannabis Program Act and underscores the importance of never losing sight of the patients who were the foundation of this industry.”

In IDFPR’s “FY2025 Goals” section of the report, IDFPR states, “In Fiscal Year 2025, IDFPR plans to continue its work to expand access to cannabis for medical patients at the medical cannabis tax rate. Currently, medical patients are limited to 55 dispensaries awarded in 2015 and do not have access at their medical cannabis tax rate to the over 150 adult use dispensaries that have since opened their doors. IDFPR is working with stakeholders on legislation to remove this barrier to access and further support the emerging social equity marketplace.” In addition, IDFPR lists as its No. 1 Goal for FY2025 to “Continue working with CROO and the legislature to pass legislation to expand access to cannabis for medical patients.”

By law, IDFPR is required to include any recommendations for changing the tax rate applied to sales of adult use cannabis in its annual report. According to the report, “The Department recommends permitting medical patients to purchase medical cannabis product at any licensed dispensary. This policy would benefit medical patients by giving greater access and reducing burdens for purchasing cannabis. It would create a tax rate change for qualified and certified medical patients but would not impact the adult use tax rates.”

No timeframe for implementing this new tax rates were given, but the report does state, “Additional time is needed to fully evaluate the implications of the current adult use tax rate and what impact changes may have. The industry is currently experiencing rapid growth with an over 100% increase in the number of dispensaries over the last two years. Due to this rapid growth, any recommendations regarding amendments to the tax rate would be premature.”

Maybe the most glaring line, located in the Illinois State Police portion of the report, states, “No cannabis legislation was enacted during FY24.” The Illinois General Assembly had the opportunity to pass House Bill 2911, a cannabis omnibus which included a provision that would allow medical patients to receive medical tax rate at any dispensary in Illinois, but the bill stalled after Green Thumb Industries (GTI) secretly and successfully lobbied to delete the provision. The late deletion of that provision poisoned the bill enough that the bill was not brought to the floor for a vote, pausing the passing of all cannabis provisions. After scuttling the bill, GTI issued a statement claiming to have always supported patient access to medicine. “We have a history of championing patients, including leading advocacy efforts to ensure patients could access their products during the pandemic, and most recently, preserve curbside pickup services for patients,” the statement read. The proposed measure, HB 2911, GTI said, “included language that was neither operationally viable nor comprehensive enough for what Illinois patients deserve, such as requiring patient lanes or offering delivery services. Illinois legislators recognized the concerns and will continue working on this with the goal of passing it during veto session (this fall).”

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