The Illinois Municipal League has issued a “Adult Use Cannabis Fact Sheet” to assist community members, like Oak Lawn, in determining whether the village should opt out of the newly passed law.
The Illinois General Assembly commercialized recreational marijuana sales in the last General Assembly session and Governor JB Pritzker signed the legislation on June 25th, making the law effective on January 1, 202o.
While Oak Lawn, and other municipalities cannot restrict the private consumption of cannabis that is authorized by the act, the village can opt out of the law within 6 months of the Governor signing the legislation.
The village can opt out by a majority vote of the village board, which has not yet discussed a resolution or ordinance to take such action.
Municipalities have the right to limit the location of the retail businesses through its zoning ordinance.
Municipalities have the right to impose a tax on the marijuana products of up to 3%. The state will already be taxing the product and some of it may incur taxes as high as 41%.
If the village decides to opt out of the law it would not be able to tax the sales because it wouldn’t have any retail establishments.
However, state revenues derived from the Cannabis Regulation and Tax Act will be deposited into the Cannabis Regulation Fund. About 8% of those funds will be distributed to local municipalities regardless of whether they opt out.
As of our publication, the Village of Oak Lawn has not published a notice of an agenda item to discuss the opt out procedure. If the village does not take action within the six month period, it can only opt out thereafter by referendum.
On Monday, the City Council of Naperville authorized the City Attorney to draw up an ordinance to opt out.