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Illinois Cannabis Regulation and Tax Act – 5 Things For Property Owners To Know

Governor Pritzker signed the Illinois Cannabis Regulation and Tax Act (“Act”) on June 25, 2019 legalizing recreational use of marijuana for adults age 21 and older. Beginning January 1, 2020, Illinois adults can possess, consume, purchase, and transport limited amounts of marijuana for personal use. The Act also allows medical marijuana license-holders to grow their own cannabis. As a property owner, here are 5 things you should know about the Act –

1. Landlords’ Choice.

The Act allows medical marijuana license holders to grow up to 5 cannabis plants on residential property. The Act requires home-growers to exercise caution, keeping the plants in an enclosed, locked space, outside of public view, and with reasonable security efforts to avoid unauthorized access. Do you lease out your condo and have a strong aversion to your tenants turning your kitchen into a greenhouse? Have no fear – the Act permits landlords to prohibit a tenant from cultivating cannabis. On the other hand, do you have no problem with your tenants growing cannabis in the kitchen but fear there could be unforeseen liabilities to you as the landlord? The Act makes clear that a landlord cannot be penalized or denied for permitting their tenants to use cannabis under the Act.

2. Smoking can be restricted, even in your own home.

Condo associations may question whether they can restrict the use of cannabis in the building. They are concerned that starting January 1, the smell of marijuana smoke will start permeating the common elements as the result of use in individual units. The Act amended the Condominium Property Act to make clear that condo associations may forbid smoking within an owner’s unit by including the prohibition in their bylaws. However, keep in mind that any such restriction needs to be passed through valid Board action.

3. Other forms of consumption can be restricted in the common elements, but not in your individual unit. There is a limit to the prohibitions that condo associations can place on marijuana consumption in the building, though. Although smoking can be prohibited within an owner’s unit, other forms of consumption cannot. So, you can enjoy the gummies in the privacy of your own home. You might be worried that this means your kid’s birthday party on the shared roof-deck will overlap with your neighbor’s marijuana-infused adult summer soiree. Not so, if your condo association properly restricts use in the bylaws. The Act allows condo associations to restrict any form of consumption in the common elements if stated in the governing documents.

4. Expect reasonable zoning ordinances and advertising restrictions.

Did you recently buy a single-family home on a quiet, peaceful street down the block from your kids’ school? Are you worried that the empty commercial space next to the school is going to open a dispensary and advertise tasty cannabis-infused snacks on the sign outside? The Act allows for reasonable

zoning ordinances regulating cannabis business establishments and prohibits advertisements of any cannabis product within 1,000 feet of a school, park, or library.

5. Just because it is legal doesn’t mean it is allowed.

The Act allows private property owners to prohibit their guests, clients, tenants, customers, or visitors from using cannabis on their property. This extends to private business owners who can also prohibit cannabis use on their property (including parking lots).

Questions? Call us today for a consultation regarding your rights as a property owner


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