Legal pot may offer benefits and challenges to Q-C businesses

Green Thumb Industries, a marijuana cultivation center in Rock Island, is ramping up production.

Beginning on Jan. 1, 2020, the possession and sale of recreational cannabis will be legalized statewide. Marijuana will be regulated much like alcohol, including an age limit of 21 and penalties for intoxicated driving, public consumption and more.

"We have been diligently preparing for the probability of an adult-use law for quite a while, as we anticipated adult-use would be legalized in Illinois sooner rather than later due to overwhelming public support," said Christopher McCalley, vice president of project implementation at the cultivation center.

"We also believe legal cannabis will provide new economic opportunities for communities harmed by the war on drugs and provide tax revenue for under-served areas."

The cultivation center employs 100 people locally, and it plans to add 50 more jobs in the next two years.

Though only about 61,000 people are enrolled in the state's medical marijuana program, the production and sale of marijuana has boosted jobs and revenue in the Illinois Quad-Cities. The impact is especially noticeable in Milan and Rock Island, where new development is less common.

More growth is expected as recreational marijuana goes into effect this winter. The Illinois Economic Policy Institute at the University of Illinois predicted in a 2018 report that legalization would create 23,000 new jobs across more than 2,600 businesses across the state.

That's welcome news for some, as this past year sparked worry in Illinois Quad-Cities business leaders, who for years say they've watched workers and residents drift across the river to Iowa.

Illinois Gov. J.B. Pritzker's first term brought about several upcoming changes for business leaders, including a bill that will gradually raise the state's minimum wage to $15 per hour by 2025. Some business owners also fear hikes in gas taxes and vehicle registration fees. And some oppose replacing Illinois' flat income tax rate with a graduated tax, a constitutional change that will be on the ballot in November 2020.

Especially in border communities like the Quad-Cities, business advocates fear new legislation could hurt Illinois' ability to attract more businesses, employees and residents.

But based on what happened in other states where pot was legalized, the passage of recreational marijuana could have a different effect, bringing more visitors, workers, residents and businesses to Illinois. Pritzker has estimated legalizing marijuana will generate $57 million in general revenue in the coming budget year.

Local business advocates used caution when talking specifically about legal marijuana. Both Paul Rumler, CEO of the Quad Cities Chamber, and Dave Herrell, CEO of Visit Quad Cities, said they'll be monitoring the legalization closely to see how it affects the local economy.

"Look at other states, like Colorado, and certainly it's impacted tourism," Herrell said. "It's impacted specific destination, so we might be able to leverage that. I'm intrigued by it. We'll look at anything and everything that'll move and advance our destination."

Rumler said he'll support entrepreneurs looking for new opportunities to weave legal marijuana into the Quad-Cities economy. But he said he's mostly concerned about workplace safety and ensuring business owners know their rights.

As more states legalize marijuana, that’s been a major topic of conversation for businesses across the country.

National cannabis law specialist Michelle Lee Flores, an employment attorney with Akerman in Los Angeles, said changing marijuana use laws have caused some employers to hash out new drug testing standards.

Some employers have done away with marijuana testing, instead focusing on workers being impaired at work. Others, especially in safety-critical professions, are sticking to zero-tolerance policies.

The number of employees and applicants who tested positive for marijuana jumped to 2.3% last year, the highest rate since 2004, according to an analysis of 10 million drug tests by national laboratory Quest Diagnostics Inc. The analysis was also conducted by Quest.

"We're engaged in conversations to make sure there are protections in place so workplace safety is not minimized or challenged," Rumler said. "There are ways communities and regions leverage legalization to their benefit. But it's hard to say what this will mean for our region in the coming year."