State facing trust issues with cannabis

Taxes collected by the state, which can be in excess of 40% depending on the potency, total nearly $680 million. Local governments can tack on even more taxes.

Cannabis Business Association of Illinois Executive Director Pam Althoff said there’s an oversupply of the product because of ongoing litigation challenging the application scoring process for new dispensaries.

“The next tranche of dispensary licenses that were supposed to be awarded a year ago still are in the legal system and they have a temporary restraining order placed up on them so there are no new dispensaries,” Althoff told a Springfield radio station.

There are 110 original dispensaries throughout Illinois, including one in Collinsville, with 185 potential licensees waiting. The situation is frustrating to consumers and business owners alike, Althoff said.

“It’s extraordinarily frustrating and it creates a great deal of anger and I think just distrust with the entire process,” Althoff said.

During a Senate committee hearing last week, state Sen. Jason Plummer, R-Edwardsville, raised another issue of trust surrounding the state’s regulation of the industry.

Plummer questioned Cannabis Regulation Oversight Officer Danielle Perry about recent stories of mold being found in some pre-rolled joints. He said no one warned the public of the problem, though there was an internal email within the state to quarantine the product.

Perry said the product was quarantined as a precaution, though state testing didn’t find any issues.

“From a consumer protection perspective, the responsibility I believe of the agency is to inform the company and for the company is to inform the consumer,” Perry said.

Plummer said the state needs to take a larger role in such announcements.

“If a state lab finds an issue with a product, I think a state lab, once a confirmation is made, should probably be disseminating that information to the public if there’s a health or safety issue there,” Plummer said.