The Hidden Cost of Weed Legalization: How Fines and Fees Replace Jail Time

At The 1937 Foundation, we exist to inform, educate, and heal communities most impacted by the War on Drugs. That work (especially) doesn’t stop now that cannabis is legal. In fact, we’re pulling back the curtain on what weed legalization really looks like on the ground. Prison sentences for minor weed charges may be declining. But, another system of punishment has quietly taken their place: fines, fees, and financial penalties. And once again, Black and Brown consumers bear the brunt.

This blog dives into a troubling trend that many don’t see coming: how legalized weed still results in disproportionate consequences for the same communities long targeted by prohibition. From ticketing and citations to court-mandated classes and excessive licensing violations, the criminalization of cannabis has merely evolved—not disappeared.

By shining a light on these issues, The 1937 Foundation continues our mission to bring health, wealth, and knowledge to the BIPOC communities of the greater Chicago area. If you care about equity, justice, and real freedom in the cannabis space, this story is for you.

Legalization Without Liberation

The headlines tell us cannabis is now legal. But for too many, the reality tells a different story. Yes, adult-use legalization has dramatically decreased marijuana-related arrests in many states. However, the enforcement focus has shifted to fines, tickets, and civil infractions that still disproportionately impact marginalized communities.

In Chicago, for instance, data from the years following Illinois’ 2020 legalization shows that while arrests dropped, Black residents were still cited for cannabis-related violations at far higher rates than their white counterparts. Whether it's public consumption, possession over the legal limit, or failure to comply with convoluted packaging laws, the result is the same: another way to police Black and Brown bodies under the guise of regulation.

What was once a jail cell is now a court summons. What was once a felony is now a fine you can’t afford to pay.

The New System of Control: Citations, Fines, and Fees

Across legal states, a common pattern emerges. When arrest numbers drop, revenue-generating fines increase. Here’s what that looks like:

• Public Consumption Citations: Despite legal sales, many cities—including Chicago—restrict where you can consume. For those without access to private outdoor space, especially renters, “legal weed” often still means getting fined for smoking at home.

• Possession Over the Limit: State laws often cap how much cannabis you can carry. Get caught with even slightly more, and you might face hundreds of dollars in penalties. These infractions don’t hit affluent consumers as hard—but for low-income individuals, they can snowball into court costs or license suspensions.

• Driving-While-Impaired Enforcement: With no accurate field sobriety test for THC, police discretion reigns supreme, especially in communities already overpoliced. Racial profiling plays a role in who gets stopped, who gets tested, and who gets cited.

• Cannabis Business Violations: For aspiring Black and Brown entrepreneurs trying to enter the industry, regulatory fines can be crushing. Minor violations like packaging errors, security infractions, or paperwork delays often result in steep penalties—further reinforcing barriers to entry.

Financial Penalties Aren’t Neutral

Some might argue that fines are better than jail time. But let’s be clear: financial punishment is still punishment—and it isn’t equally felt. A $200 fine means something very different to a white collar worker than it does to a minimum-wage employee in Englewood or North Lawndale.

Just like the cash bail system, fines become a revolving door of hardship for the working class. Unpaid tickets turn into late fees, court appearances, and even bench warrants. In extreme cases, people lose their driver’s licenses, jobs, or housing—all because they used a plant that’s supposed to be legal. Is this the weed legalization we all imagined?

The Data Doesn’t Lie

A 2022 report by the Illinois Department of Financial and Professional Regulation showed that Black residents still accounted for over 65% of cannabis-related citations in Chicago, despite making up less than a third of the population. In contrast, white residents made up only 12% of those cited.

This pattern is not unique to Illinois. In Los Angeles, New York, and Washington, D.C., civil enforcement of cannabis laws still disproportionately impacts communities of color. Even as wealthy white consumers enjoy lounges, delivery services, and branded pop-ups without fear.

These numbers prove that the racist legacy of prohibition lives on—just dressed in new clothes.

Who Benefits from the Fines?

Fines don’t just enforce control—they also generate profit. Municipalities, police departments, and even cannabis enforcement agencies rely on revenue from civil citations to fund operations. Some jurisdictions treat ticketing as a business model, not a justice strategy.

This creates a dangerous incentive: The more people you fine, the more money you make. And since overpoliced neighborhoods are easiest to target, communities of color become ground zero for continued extraction.

What Real Equity Looks Like

Ending jail time for weed is not enough. If we want a truly fair and just cannabis industry, we must dismantle all systems of punishment tied to cannabis—including financial ones.

Here’s what real cannabis justice must include:

• Expungement of past charges, both criminal and civil

• Amnesty for unpaid cannabis-related fines

• Public consumption zones that don’t criminalize renters and unhoused people

• Clearer, simpler laws that don’t trap consumers in legal gray areas

• Community reinvestment into the neighborhoods most impacted by these fines

The 1937 Foundation’s Role

At The 1937 Foundation, we continue to ask the uncomfortable questions. Who profits from cannabis today? Who still pays the price? And how can we build a system that heals, rather than harms?

Our work goes beyond surface-level legalization. We dig into the details that matter. We amplify stories that get buried. And we push for policy that puts people, not profits, first.

Whether it's through education, advocacy, or direct community engagement, we remain committed to shining a light on the hidden costs of weed legalization and fighting for a future where Black and Brown lives aren’t penalized for legal behavior.

Join the Movement

Cannabis legalization should mean liberation—not another form of punishment. But until our laws, our enforcement, and our equity measures reflect that, the fight isn’t over. 

Follow The 1937 Foundation to stay informed, get involved, and support our mission to bring health, wealth, and knowledge to Chicago’s BIPOC communities. The hidden cost of weed legalization must be exposed—because awareness is the first step to justice.