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The State of Cannabis Legislation & Licensing: Illinois, Indiana, Kentucky, Michigan, Ohio

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The State of Cannabis Legislation & Licensing: Illinois, Indiana, Kentucky, Michigan, Ohio

cannabis licensing midwest

State by state, legislation is changing in the cannabis industry. Licensing regulations can vary greatly and are still a moving target throughout the United States.

We’ve seen some big steps forward on the federal level with the legalization of industrial hemp. And most recently a federal bipartisan bill —  The Secure and Fair Enforcement (SAFE) Banking Act — is in the works aimed to protect banks and their employees from liability for federal prosecution when servicing cannabis companies.

As we approach our 2019 CannaCon Midwest conference in Detroit, we are taking a look at cannabis progress throughout the Midwest. Below is the latest on marijuana legislation and cannabis licensing in Illinois, Indiana, Kentucky, Ohio, and of course, Michigan.


Illinois Cannabis Legislation & Licensing

Cannabis is legal for medical use. It is currently illegal for recreational use but possession of 30 grams of cannabis flower, five grams of concentrates and 500 milligrams of THC contained in cannabis-infused products is decriminalized. Non-residents of the state will be able to possess half those amounts when visiting. With regard to cannabis cultivation at home, up to five cannabis plants would be allowed.

The Senate passed a bill May 29, 2019, which will allow adults 21 and older to consume recreationally, possess and purchase certain amounts of cannabis for personal use, and seeks to create a legally regulated system of marijuana production and sales. This bill will now go to the House for approval. Several provisions are aimed at promoting social equity in the legal industry, including expunging the records of individuals with convictions for marijuana possession of 30 grams or less, as well as allowing the state’s attorney or individuals to petition the courts for possession cases involving 30 to 500 grams of cannabis.

Illinois cannabis legalization is set to take effect on Jan. 1, 2020, with current medical cannabis businesses allowed a head start to apply for licenses in the new recreational market. New dispensaries would be licensed by May 1st, with processors, craft growers and transporters being licensed by July 1st. A second wave of businesses would be licensed in late 2021.

Cannabis licenses in Illinois would become available for new cultivation facilities, craft growers, processors, stores (called dispensing organizations) and transporters in two groups. In the first wave in mid-2020, the state would award licenses for up to 75 stores, 40 processors and 40 craft growers. In a second wave in December 2021, the state could issue licenses for 110 stores, 60 craft growers and 60 processors. No entity or individual could hold an interest in more than three cultivation centers or 10 stores.


Indiana Cannabis Business Licensing

Cannabis is illegal for any purpose, however the possession and sale of CBD was legalized for any use in 2018, as long as it: comes from industrialized hemp, is at least 5% cannabidiol, and does not contain more than 0.3% THC.

Current Indiana legislation seeks to legalize hemp farming. If approved, a license will be required to grow, handle or research hemp. Those applying must have a criminal record clean of drug-related misdemeanors or felonies for 10 years, and minimum square footage or acreage is required but yet to be determined.


Kentucky Cannabis Business Licensing

Cannabis is illegal for any purpose, however the possession and sale of non-psychoactive CBD is legalized. House Bill 136 was introduced Jan. 9 this year and aims to legalize medical cannabis. It went to the Judiciary Committee Feb. 6 and was reported favorably in March. As of March 12th, an amendment was filed.


Ohio Cannabis Business Licensing

Cannabis is legal for medical use in Ohio. It is illegal for recreational use but possession of up to 100 grams is decriminalized. Cultivator licensing fees are non-refundable and divided into two levels, which include application fees, initial license fees and annual license renewal fees: Level I $400,000 and Level II $40,000. Currently, the Board of Pharmacy is no longer accepting additional applications for licensed dispensaries.


Michigan Cannabis Business Licensing

Cannabis is legal in Michigan for both medical and recreational use, although the state currently has not established an application process for recreational business licenses. The number of licenses issued will not be limited, however the local municipality has the authorization to restrict or limit. Initial license costs at the state level include the application fee of $6,000, and the regulatory assessment. Additional costs may be required. An applicant may also need to pay a fee to its municipality of up to $5,000. Recently, cannabis regulators have licensed the Michigan’s first cannabis delivery services in Detroit and Portage. The Michigan Department of Licensing & Affairs has provided a map of active cannabis facility licenses in Michigan.


The Best Cannabis Business Convention

Are you ready to get involved in a brand new and already booming industry? Grow your idea into a business at the best cannabis business convention in the U.S. Statista estimates that Michigan’s cannabis industry will be worth nearly $900 million by 2025. Huge Canadian cannabis companies are taking over the market, and large national corporations are anticipating national legalization.

More than a marijuana trade show, CannaCon is a regional cannabis expo and B2B convention packed full of opportunities to network with cannabis businesses and industry veterans. Learn current best practices in the cannabis industry and mistakes to avoid from leaders in their field.

Whether you’re passionate about becoming a cannabis entrepreneur or eager to create a company for acquisition, CannaCon is the only cannabis conference that matters. CannaCon events are essential for connecting with marijuana businesses and more. Register now for CannaCon Midwest in Detroit June 21-22 at the COBO Center.

Interested in other states? Learn more about Wisconsin, Iowa, Missouri and Minnesota.


Cannabis Business Licensing | Illinois, Indiana, Kentucky, Michigan, Ohio


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