[co-author: Diana Arroyo]

As a result of recent legislation in Illinois, beginning January 1, 2020, recreational cannabis will be legal for those 21 years or older. The Cannabis Regulation and Tax Act defines a dispensing organization as “a facility operated by an organization or business that is licensed by the Department of Financial and Professional Regulation to acquire cannabis from a cultivation center, craft grower, processing organization, or another dispensary for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia, or related supplies under this Act to purchasers or to qualified registered medical cannabis patients and caregivers.”

Any person or entity interested in a dispensary license may apply for a license. The license application will involve a competitive process and ranking system of all applications. Licenses will only be issued on a conditional basis, until approved by the Illinois Department of Financial and Professional Regulation.

License Overview

• Licenses Issued By: The Illinois Department of Financial and Professional Regulation.
• Number of Licenses available:
  • Up to 75 licenses by May 1, 2020.
    • NOTE: There are a limited number of licenses available per BLS Region. The BLS Regions are: Bloomington (1); Cape Girardeau (1); Carbondale-Marion (1); Champaign-Urbana (1); Chicago-Naperville-Elgin (47); Danville (1); Davenport-Moline-Rock Island (1); Decatur (1); Kankakee (1); Peoria (3); Rockford (2); St. Louis (4); Springfield (1); Northwest Illinois nonmetropolitan (3); West Central Illinois nonmetropolitan (3); East Central Illinois nonmetropolitan (2); South Illinois nonmetropolitan (2).
  • Up to 110 licenses by December 21, 2021.
• Deadlines:
  • For licenses issued by May 1, 2020: applications open no later than October 1, 2019 and are due no later than January 1, 2020.
  • For licenses issued by December 21, 2021: deadlines to be determined.
• Approximate Costs:
  • Application: $5,000
  • If approved:
    • Payment of $60,000, AND
    • Completion of a Social Equity Inclusion Plan. This requirement is an effort to reduce barriers for those impacted by the enforcement of Cannabis-related laws and an investment by a cannabis business of at least $100,000.
  • Renewal: $60,000 (annually)
• Licenses Valid Until: March 31 of even-numbered years. For example, if a license is issued February 12, 2020, it will expire March 31, 2022.
• Applicants Most Likely to be Approved:
  • Those that score the highest in the categories of:
    • “Security and Recordkeeping,”
    • “Business Plan, Financials, Operating and Floor Plan,” and
    • “Status as a Social Equity Applicant.”

Application Requirements

• Identification of all officers and board members, who must be 21 years or older.
• Information on whether any principal officer has held or currently holds ownership in a cannabis business, any business or nonprofit.
• Disclosure of any bankruptcy filed.
• Disclosure of the number of licenses applying for in every region.
• Proposed location must not be within 1,500 feet of another dispensary.
• Estimated volume of cannabis it plans to store.