Open A Dispensary In Illinois - Dispensary Permits Cannabis Consulting and Templates

Status: In Illinois, all adults 21 years of age and older may possess and use marijuana. All individuals with a legal prescription may possess and use medical marijuana. State licensed businesses may grow, process, transport, and dispense marijuana.

CBD Program	Medical Program	Recreational Program	Are Applications Open?
Legal	Legal	Legal	closed

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Number of Illinois Marijuana Business Licenses Licenses Available

Dispensaries	Cultivation	Manufacturing/Processing	Transportation
75	100	100	100+

Every state has different marijuana laws- they are regulated by state, not federal law. Some states allow marijuana for recreational and medical use, some states only allow medical use, and some only allow certain low THC products for medical use. Most states limit the number of licenses they will grant and the window to apply for them. Getting licenced is never simple- there are very specific requirements and guidelines that differ by state and its usually highly competitive, which is why most successful applicants work with consultants like Dispensary Permits to help guide them. We highly advise you read the guidelines below thoroughly and then consider working with a consultant or using our templates and guides.
You can read the full text of the Illinois Marijuana Business Licenses law at: www.ilga.gov

Illinois Recreational Craft Grower License Guidelines

A Craft Grower License is a license that permits a business or organization to cultivate, dry, cure, and package cannabis and perform other necessary activities to make cannabis available for sale at a dispensing organization or use at a processing organization.

- 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.
- A craft grower may share premises with a processing organization or a dispensing organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership.
- The application for a Craft Grower License requires a nonrefundable application fee of $5,000. Social equity applicants may pay a nonrefundable application fee of $2,500.
- Application forms for Craft Grower Licenses were made available from the Department of Agriculture on January 7, 2020. Applications will be accepted from February 14 – April 30, 2020.
- The Department is to award up to 40 Craft Grower Licenses in a first phase, and 60 additional Craft Growers Licenses in a second phase.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR CRAFT GROWER APPLICATION:

Illinois Recreational Cultivation Center License Guidelines

An Early Approval Adult Use Cultivation Center License is a license that permits an existing medical cannabis cultivation center licensed under the Compassionate Use of Medical Cannabis Pilot Program Act to begin cultivating, packaging, transporting, and selling cannabis to adult-use cannabis business establishments for resale to purchasers on January 1, 2020.

- The application for an Early Approval Adult Use Cultivation Center License requires a $100,000 nonrefundable application fee and a nonrefundable Cannabis Business Development Fee equal to 5% of the cultivation center’s total sales between July 1, 2018 to July 1, 2019, or $500,000 (whichever is less), as well as the identification of a Social Equity Inclusion Plan.

A Cultivation Center License is a license that permits a business or organization to cultivate, process, transport, and perform other necessary activities to provide cannabis and cannabis-infused products to cannabis business establishments.

- The application for a Cultivation License requires a nonrefundable application fee of $30,000. Once awarded a license, an annual registration/renewal fee of $100,000 is required.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR CULTIVATION APPLICATION:

Illinois Recreational Infuser License Guidelines

An Infuser License is a license that permits a business or organization to directly incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis-infused product.

- The application for an Infuser License requires a nonrefundable application fee of $5,000. Social equity applicants may pay a nonrefundable application fee of $2,500. Once awarded a license, an annual registration/renewal fee of $20,000 is required.
- Applications for Infuser Licenses were made available from the Department of Agriculture on January 7, 2020. Applications will be accepted from February 14 – April 30, 2020.
- The Department is to award up to 40 Infuser License in a first phase, and 60 additional Infuser Licenses in a second phase.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR PROCESSOR APPLICATION:

Illinois Recreational Dispensing Organization License Guidelines

An Early Approval Adult Use Dispensing Organization License is a license that permits an existing medical cannabis dispensing organization licensed under the Compassionate Use of Medical Cannabis Pilot Program to begin selling cannabis to purchasers on January 1, 2020.

- The application for an Early Approval Adult Use Dispensing Organization License requires a $30,000 nonrefundable application fee and a nonrefundable Cannabis Business Development Fee equal to 3% of the dispensing organization’s total sales between July 1, 2018 to July 1, 2019, or $100,000 (whichever is less), as well as the identification of a Social Equity Inclusion Plan.

A Conditional Adult Use Dispensing Organization License is a license awarded to top- scoring applicants for an Adult Use Dispensing Organization License that reserves the right to a dispensing organization license if the applicant meets certain conditions, but does not entitle the recipient to begin purchasing or selling cannabis or cannabis-infused products.

- Applicants who receive a Conditional Dispensing Organization License will have 180 days from the date of the award to identify a physical location for the dispensing organization retail storefront when new entrants are allowed in the market.
- The purpose of this conditional license is to reduce the costs associated with entering the industry. The application for a Conditional Dispensing Organization License requires a nonrefundable application fee of $5,000. Once awarded a license, an annual registration/renewal fee of $60,000 is required.
- The Department of Financial and Professional Regulation will begin accepting applications for Conditional Adult-Use Dispensing Organization licenses on December 10, 2019 through January 2, 2020.
- The Department is to award up to 75 Conditional Adult Use Dispensing Organization Licenses.

An Adult Use Dispensing Organization License or Dispensary License is a license that permits a business or organization 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 to purchasers or to qualified registered medical cannabis patients and caregivers.

- The application for a Dispensary License requires a nonrefundable application fee of $30,000. Once awarded a license, an annual registration/renewal fee of $60,000 is required.
- The Department is to award up to 110 additional Adult Use Dispensing Organization Licenses by December 21, 2021.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR DISPENSING ORGANIZATION APPLICATION:

Illinois Recreational Transporter License Guidelines

A Transporting Organization License or Transporter License is a license that permits a business or organization to transport cannabis on behalf of a cannabis business establishment.

- The application for a Transporter License will require a nonrefundable application fee of $5,000. Social equity applicants may pay a nonrefundable application fee of $2,500. Once awarded a license, an annual registration/renewal fee of $10,000 is required.
- Applications for Transporter Licenses were made available from the Department of Agriculture on or before January 7, 2020. Applications will be accepted from February 14 – April 30, 2020.
- The Department may award an unlimited number of Transporter Licenses.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR TRANSPORTER APPLICATION:

Illinois Medical Marijuana Cultivation License Guidelines

A “Cultivation center” means a facility operated by an organization or business that is registered by the Department of Agriculture to perform necessary activities to provide only registered medical cannabis dispensing organizations with usable medical cannabis.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR CULTIVATION APPLICATION:

Illinois Medical Marijuana Dispensing Organization License Guidelines

“Medical cannabis dispensing organization” or “Dispensing organization” means a facility operated by an organization or business that is registered by the Department of Financial and Professional Regulation to acquire medical cannabis from a registered cultivation center for the purpose of dispensingmedical cannabis, paraphernalia, or related supplies and educational materials to registered qualifying patients.

RECOMMENDED ILLINOIS MARIJUANA BUSINESS PLANS FOR DISPENSING ORGANIZATION APPLICATION:

The History of Illinois Marijuana Business Licenses Marijuana

Medical Marijuana:
Illinois legalized medical marijuana for qualified patients in 2013. The Compassionate Use of Medical Cannabis Pilot Program Act establishes a patient registry program, protects registered qualifying patients and registered designated caregivers from “arrest, prosecution, or denial of any right or privilege,” and allows for the registration of cultivation centers and dispensing organizations. Applications were accepted in September 2014 and the state awarded 22 cultivation licenses and over 60 dispensary licenses. There were a few districts that we left unawarded, so interested parties have future opportunities to obtain licenses.

Qualifying Medical Conditions: Cancer, glaucoma, a positive status for HIV (human immunodeficiency virus), AIDS (acquired immunodeficiency syndrome), hepatitis C, ALS (amyotrophic lateral sclerosis), Crohn’s disease, agitation of Alzheimer’s disease, cachexia or wasting syndrome, muscular dystrophy, severe fibromyalgia or any spinal cord disease, including but not limited to: arachnoiditis, Tarlov cysts, hydromyelia, syringomyelia, Rheumatoid arthritis, fibrous dysplasia, spinal cord injury, traumatic brain injury and post-concussion syndrome, Multiple Sclerosis, Arnold-Chiari malformation and Syringomyelia. Patients may also qualify for medical marijuana if they suffer from a severely debilitating or terminal medical condition such as Spinocerebellar Ataxia (SCA), Parkinson’s, Tourette’s, Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD (Complex Regional Pain Syndromes Type I), Causalgia, CRPS (Complex Regional Pain Syndromes Type II), Neurofibromatosis, Chronic Inflammatory Demyelinating Polyneuropathy, Sjogren’s syndrome, Lupus, Interstitial Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella syndrome, residual limb pain, or the treatment of these conditions.

Recreational Marijuana:
With the election of J.B. Pritzker on November 6, 2018 as the next governor of Illinois, the legalization of recreational cannabis became a focus for state lawmakers, as cannabis legalization was one of Pritzker’s campaign promises.

On June 25, 2019, Gov. Pritzker signed the marijuana legalization legislation, known as the Cannabis Regulation and Tax Act, into law. Effective January 1, 2020, the new law will allow the following: (1) Illinois residents ages 21 and over would be allowed to purchase and possess up to 30 grams of cannabis; (2) Non-residents ages 21 and over would be allowed to purchase and possess 15 grams of cannabis; (3) municipalities, employers and landlords would be able to prohibit possession and use; (4) criminal records of citizens whose careers and futures have been harmed by cannabis convictions for low-level possession and dealing would be expunged. The sale of adult use cannabis will begin on January 1, 2020.

The legalization of adult use cannabis does not alter the state’s medical cannabis pilot program. The new law will continue to limit the number of licenses and endures preferential treatment towards equity applicants. The proposed application process will give additional points for diversity, diversity of ownership, diversity of workforce, and diversity of contractors hired.

The sale of adult use cannabis began on January 1, 2020. The legalization of adult use cannabis does not alter the state’s medical cannabis pilot program.

The new law will continue to limit the number of licenses and gives preferential treatment towards social equity applicants. The proposed application process will give additional points for diversity, diversity of ownership, diversity of workforce, and diversity of contractors hired.

The Department of Financial and Professional Regulation accepted applications for Conditional Adult-Use Dispensing Organization licenses December 10, 2019 through January 2, 2020.

The Department of Agriculture released Craft Grower, Transporter, and Infuser application forms on January 7, 2020. Applications were to be accepted February 14, 2020 through March 16, 2020. Before the application deadline of March 16^th, Gov. JB Priztker issued an Executive Order extending Craft Grower, Transporter, and Infuser applications until March 31, 2020 due to the coronavirus pandemic. Again, on March 28^th, Gov. JB Priztker issued another Executive Order to extend the submission deadline to April 30, 2020. All details were posted on the Department of Agriculture’s website.

Recreational Program Timeline:
Within 60 days of the effective date of the Act – Existing medical cannabis businesses may apply for Early Approval Adult Use Cultivation Center Licenses or Early Approval Adult Use Dispensing Organization Licenses. Eligible applicants will be awarded a license within 45 days of applying.
October 1, 2019 – Applications for Conditional Adult Use Dispensing Organization licenses posted to Department website
December 10, 2019 – Department to begin accepting applications for Conditional Adult-Use Dispensing Organization licenses
January 2, 2020 – Department to stop accepting applications for Conditional Adult-Use Dispensing Organization licenses
January 1, 2020 – Adult use cannabis available for purchase
January 7, 2020 – Application forms for craft grower, processor, and transporter licenses released by the Department of Agriculture
February 14, 2020 – Department of Agriculture begins accepting applications for craft growers, processors and transporters
April 30, 2020 –Department of Agriculture to stop accepting applications for craft growers, infusers, and transporters. Applications were originally scheduled to close on March 16, 2020, but an executive order by the governor extended the deadline due to COVID-19.
TBD – Department to award up to 75 Conditional Adult Use Dispensing Organization Licenses
TBD – Department to award up to 40 Craft Grower Licenses, up to 40 Processor Licenses, and a TBD number of Transporter Licenses
By December 21, 2021 – Department to award up to 60 additional Craft Grower Licenses, up to 60 additional Processor Licenses, and up to 110 additional Adult Use Dispensing Organization Licenses