Illinois Cannabis License Update

Cook County Circuit Court in Illinois may remove the injunction that has kept 185 social-equity applicants from receiving their dispensary licenses.

After nearly 10 months of delay, a judge Friday ended the court order preventing Illinois from issuing 185 new cannabis store licenses — though further litigation may jeopardize those licenses again.

This ruling means that companies may now take steps toward opening their businesses.

The Illinois Department of Financial and Professional Regulation (IDFPR) plans to issue 55 conditional licenses, under a new application process, to be distributed across the existing 17 BLS Regions detailed in the CRTA.

The application process for the conditional licenses is anticipated to open in the late summer or early fall of 2022.

There are state-wide limits for each type of marijuana business allowed to operate in Illinois. Currently, only adult-use marijuana business licenses are available. More information on each type of license is outlined below.

Illinois Adult-Use Cultivation License: can grow cannabis plants, dry, cure, package, process cannabis-infused products, and sell wholesale to other licensed Illinois cannabis businesses. A Cultivation center may contain up to 210,000 square feet of canopy space. There is a limit of 30 adult-use cultivation licenses allowed within the state. At this time, there are 21 licensed early approval adult-use cultivation centers. Early approval for adult use cultivation centers was reserved for existing medical cannabis cultivation licensees. Furthermore, the regulating department is not authorized to license any additional adult-use cultivation centers until July 1, 2021.

Illinois Craft Grower License: can grow cannabis plants, dry, cure, package, process cannabis-infused products, and sell wholesale to other licensed Illinois Cannabis Businesses. A craft grower may contain up to 5,000 square feet of canopy space on its premises for cultivating plants that are more than 5 inches tall. The number of craft-grower licenses shall not exceed 150 statewide. The state accepted applications from February – April 2020 to award 40 Craft Grower Licenses but suspended the announcements of the 40 successful applicants due to COVID-19. The 40 licenses were finally issued in August 2021. By December 21, 2021, the state will issue up to 60 additional cannabis craft grower licenses, leaving a remaining 50 craft grower licenses to be awarded when the state deems necessary.

Illinois Infuser License: can incorporate cannabis concentrates into cannabis-infused products. There are no state-wide limits on the number of infuser licenses, however, the state shall issue only 40 licenses in 2020 and 60 licenses in by Dec 2021. The state accepted applications from February – April 2020 to award 40 Infuser Licenses but suspended the announcements of the 40 successful applicants due to COVID-19. The 40 licenses were finally issued in August 2021. By December 21, 2021, the state will issue up to 60 additional cannabis infuser licenses.

Illinois Adult-Use Dispensary License: can purchase cannabis from licensed cultivation centers and infusers and sell cannabis to persons 21 years and older. The number of adult-use dispensary licenses allowed statewide shall not exceed 500. Currently, over 40 existing medical cannabis dispensary licenses are approved to cater to the adult-use market. For new businesses, the state accepted applications in Jan 2020 to award up to 75 dispensary licenses by May 2020, however, only 21 applicants were chosen to proceed to the final phase: a lottery to award the dispensary licenses. Due to lawsuits filed against the state from applicants, the state ended up issuing a total of 185 dispensary licenses through 3 separate lotteries held from July – August 2021. The state plans to issue an additional 50 dispensary licenses in 2022.

To obtain a marijuana business license in Illinois, you will be required to submit an application. As part of the application, you will be required to submit marijuana business plans such as the following:

• Business Plan
• Operating Plan: Cultivation, Production, and/or Dispensing
• Diversity Plan
• Inventory Control Plan
• Security Plan
• Recordkeeping Plan
• Patient/Customer Education Plan
• Community Engagement Plan

For more information on Illinois cannabis programs, including details on licenses- visit our State Page!

The Cannabis Business Advisors has successfully secured licenses for clients in over 20 markets across the United States. Call our office at (602)-290-9424 or email (info@thecannabisbusinessadvisors.com) to get started.