What sort of government response are cannabis businesses looking for?

Good morning!

Anecdotally, the cannabis industry seems to be doing O.K. Dispensary operators are reporting that sales are slightly up, although across the state, some are closing to recreational sales to ensure the safety of medical purchasers, some of whom might have compromised immune systems from the very diseases they are purchasing marijuana for.

But all reports are anecdotal at this point, since the state is late to update it’s monthly medical sales data (it was due on the 18th, last week) and the next update on monthly sales data, including recreational, is not due until the first week of April.

Still, as big a deal as recreational cannabis sales is in Illinois, it’s important to keep in mind that all the dispensaries open right now are also licensed for medical sales.

“The governor has made it clear in Illinois that dispensaries will be considered like pharmacies. Particularly for medicinal cannabis,” said Pam Altoff this week, Executive Director of the Cannabis Business Association of Illinois.

“Everyone is wearing gloves, letting customers pass their own IDs through the system. Staggering shifts so employees have less contact with each other. Reducing the number of people that have access to the plants or grow areas. We’re doing everything we can to increase social distancing,” Altoff said of dispensary members.

Still, are dispensaries looking for changes to regulations?

John Daley lobbies for a group of dispensaries in Chicago. He says, not at the moment. “The real thing everyone is working on is curbside pickup. First for medical, and ideally for recreational. The retention for recreational cannabis is not high on anyone’s list.

“It is medicine. It is essential treatment for people, including PTSD and chronic pain. Curbside pickup seems to be what the state is moving towards for an alternative.”

But delivery seems to be a fairly limited response. California and Colorado have moved quickly to legalize home delivery. Why not in Illinois?

“It’s not clear how delivery could even happen without the transportation licenses awarded,” says Daley. “Those applications haven’t gone in yet. March 30 is the deadline.”

And given how overloaded state agencies are with COVID-19 response, maybe even that could be pushed back.

“The only people licensed to transport in Illinois are the cultivators, who are licensed to only drop off at dispensaries,” says Daley. “It’s not like you can just start sourcing drivers from Grubhub to pick up orders. There’s not a mechanism, other than cultivators, and it’s probably not advantageous for them to get in that business right now because the liability is probably greater than they want.”

But still, this is a crisis. Maybe there could be a push for a legislative change?

That’s unlikely, says Altoff, herself a former state senator, pretty well plugged into the Springfield rumor mill.

“It was my understanding that the conversations about the General Assembly staying home until the end of the month are well established, and that is pretty firmly in place,” she said.

Mark Peyskahovich, another cannabis lobbyist and consultant, says cannabis businesses have more regulatory concerns than legislative.

“For example there are dispensaries and cultivators that expect to be short staffed. One of the things we’d love to see the state do is to allow temporary badging to allow people to go to this place rather than that one. Those are immediate operational issues, and need to be addressed perhaps more immediately rather than legislative issues,” said Peyskahovich.

Chart of The Week: Cannabis Stocks

While cannabis is talked about as a recession-proof industry, and dispensaries across the country report steady demand during COVID-19 mandated shutdowns, the stock market has not let up on American cannabis companies. Our chart follows four North American cannabis companies over the last three months: Cresco Labs (CRLBF), a multi-state operator with dispensaries and cultivation in Illinois, California, and Colorado; Valens GroWorks (VLNCF), which focuses on cannabis extractions, vapes, edibles, and infused beverages; Canopy Growth Corporation (CGC), an Ontario-based medical marijuna company partnered with Constellation Brands; and Aurora Cannabis (ACB), an Edmonton-based company with operations in 25 companies, including recently bought Mexican cannabis importer, Famacais Magistrales.

Last Week’s Illinois Cannabis News

Because it’s a compulsory-obsessive habit, we scour the news across Illinois for what’s going on with cannabis.

March 22

Just Askin' | Craft marijuana growers [Champaign News-Gazette]

March 20

Coronavirus boosts weed demand [Crain’s Chicago Business]

Illinois Weed Stores Still Open, Declared 'Essential Services' During Pandemic [Riverfront Times]

Nearly $1 million in pot revenue passed to Downstate drug stores to help ease coronavirus crunch [Sun-Times]

Prosecution of narcotics, cannabis cases halted in Cook County during COVID-19 crisis [Sun-Times]

State agency announces COVID-19 guidance for cannabis dispensaries [Kendall County Now]

The academics of cannabis [Chicago Crusader]

After referendum vote, Naperville calls special meeting to consider ordinance to tax recreational marijuana sales [Naperville Sun]

March 19

Milan marijuana dispensary shortens hours, increases cleaning amid COVID-19 pandemic [Muscatine Journal]

Pot sales spike at some shops in Chicago, nationally as coronavirus spreads [Sun-Times]

March 18

Dispensaries halt recreational weed sales as Illinois allows curbside delivery to medical users [Chicago Tribune]

Suburban voters give thumbs up to recreational weed sales in their hometowns [Chicago Sun-Times]

Naperville Cannabis Referendum Projected To Pass [Patch]

Naperville voters say ‘yes’ to recreational marijuana sales in the city; mayor plans to call special meeting Monday on tax issue [Naperville Sun]

March 17

Illinois temporarily allows curbside weed sales for medical patients [Crain’s Chicago Business]

Highland votes down marijuana referendum; O’Fallon says yes to pot [Belleville News-Democrat]

Impact of marijuana legalization important lesson for employers [Chicago Daily Law Bulletin]

March 16

Illinois Supply & Provisions ends walk-ins to curb coronavirus [St. Louis Post-Dispatch]

Lemont Primary: Cannabis Dispensary Referendum, Contested Races [Patch]

Cannabis Events Coming This Month

Normally, we’d round up some of the more interesting cannabis events coming up around Illinois. But for now, cancellations are coming fast and furious, so we aren’t listing any events. We’ll take another look next week. But also, if you’re running an event and YOU’RE POSITIVE it’s still going to run, drop a line to mike@grownin.com.