Cannabis Legalization in the US: Impacts on Industry Growth, Access, and Equity
As more states legalize recreational and medical cannabis in the United States, the proportion of adults using marijuana has increased.[0] In 2019, an estimated 18 percent of U.S. adults reported using marijuana.[1] Now, two more states have legalized recreational cannabis, creating new opportunities for individuals with previous drug convictions to gain access to the cannabis industry.[2]
Mendon Venture Partners is a venture capital investment firm that focuses on the intersection of innovative technology and traditional banks.[3] They recently led an investment in Green Check, a company that serves incumbent regional and community banks. Co-founder and partner Daniel Goldfarb praised the company’s potential and growth opportunities.
Illinois House Democrats recently announced the formation of a cannabis working group that will help the cannabis industry expand in a way that is both business-friendly and satisfies the equity goals of the 2019 legalization law.[4] The same law also made individuals previously charged with minor cannabis offenses eligible to have their records expunged.[2] As of the end of 2020, 492,129 cannabis-related convictions had been expunged and 9,219 low-level cannabis convictions had been pardoned.[2]
The state of Illinois recorded $1.5 billion in recreational cannabis sales in Fiscal Year 2022, generating $445 million in tax revenue.[2] Of this, 25 percent was allocated to economically distressed communities or those impacted by the war on drugs. Evans and Ford have introduced bills in the House to create a cannabis oversight commission.[2]
The bill includes punishments for growers who leave cannabis in an area where they should reasonably expect a person under 21 years old may gain access to it.[5] Individuals aged 21 and above are now able to purchase a maximum of three ounces of marijuana per transaction.[6] If plants are cultivated in view of the public, those responsible may be fined up to $250 and be required to give up the plants.[6] On the third reoccurrence of an offense, the crime can be elevated to a misdemeanor.[6]
0. “Cannabis News – High Desert Relief” highdesertrelief.org, 27 Feb. 2023, https://highdesertrelief.org/news/
1. “More frequent cannabis use associated with higher risk of coronary …” www.news-medical.net, 27 Feb. 2023, https://www.news-medical.net/news/20230224/More-frequent-cannabis-use-associated-with-higher-risk-of-coronary-artery-disease.aspx
2. “Illinois House Dems' cannabis working group will engage industry …” www.kpvi.com, 27 Feb. 2023, https://www.kpvi.com/news/national_news/illinois-house-dems-cannabis-working-group-will-engage-industry-equity-advocates/article_9243b158-e254-5d05-bf68-41868f6109cd.html
3. “Green Check Verified nabs $6m to further bridge cannabis and finance” fintech.global, 27 Feb. 2023, https://fintech.global/2023/02/24/green-check-verified-nabs-6m-to-further-bridge-cannabis-and-finance/
4. “House Dems' cannabis working group to engage industry | Local …” www.effinghamdailynews.com, 27 Feb. 2023, https://www.effinghamdailynews.com/news/local_news/house-dems-cannabis-working-group-to-engage-industry/article_7cf6f0f2-b4a0-11ed-9fdd-179f93151e15.html
5. “Homegrown cannabis bill introduced in Washington House | News …” www.khq.com, 27 Feb. 2023, https://www.khq.com/news/homegrown-cannabis-bill-introduced-in-washington-house/article_dc29b520-a008-11ed-ac7c-bfdeeefcd325.html
6. “Recreational cannabis sales to start Feb. 6 | News …” www.thesalemnewsonline.com, 27 Feb. 2023, https://www.thesalemnewsonline.com/news/article_f7c2618e-a17e-11ed-971b-3713c6fb8fa4.html
