This CREC Compliance analysis, presents the findings of weeks of due diligence on the new regulations for Illinois’ Adult-Use Cannabis License Program under HB 1438 to help you get your application approved. Please contact our team with any other cannabis compliance related questions.
Illinois Cannabis Regulation Analysis Overview: Illinois is eager for legalized, adult-use cannabis … but the lift will still be heavy! The expected volume of applicants is high. How high? Missouri saw over 2,000 applicants for it’s medical-only licensing program. Do you qualify for social equity? Given the share of points allocated for social equity applicants (20%!!!), it would suffice to say that a solid social equity candidate will be necessary for your application to be seriously considered.
Remember, we are available to help you find a property in Illinois that is zoned for cannabis use and help with your license application work through our new division, CREC Compliance. Let us know your plans and how we can help your operation grow!
Important Info For Illinois Cannabis License Applications:
- Top Tips for Illinois Applicants
- What are the Green Zones in Illinois?
- When will applications be available?
- When will applications be due?
- When will applications be issued?
- How many licenses will be issued?
- How will licenses be selected?
- What are the fees for a New Dispensing Organization License In Illinois?
- What is a social equity applicant?
- How do I apply for Illinois cannabis license?
- What cannabis license types are available in Illinois?
Top 10 Tips for Illinois Applicants
- Set your ownership team early
- Create your financial model early
- Find your skeletons early
- Ask your questions before deadlines
- Pay attention to the Q+A Docs
- Get social equity, local ownership and veteran docs early
- Quality is more important than quantity
- Follow the prompts of the questions
- Take the time to tailor your background
- Take care of yourself
These license applications differ from the previous retail applications in that applicants must have a property PRIOR to submitting the application.
Green Zones Map of Chicago, Illinois
This custom map was developed by CREC for users of the CREC Portal. It is an example of the vast amount of data available for research in this new technology. Contact us for access to the mapping data to improve your ability to plan as a cannabis entrepreneur or real estate agent!
When will applications be available for Illinois Adult-Use Cannabis Licenses?
Applications for new Conditional Adult Use Dispensing Organization Licenses will be available no later than October 1, 2019. Download Application Form Here for Conditional Adult Use Dispensing Organization Licenses.
Contact us for help applying!
When will applications be due for Illinois Adult-Use Cannabis Licenses?
Applications for a Conditional Adult Use Dispensing Organization License will be due no later than January 1, 2020.
The Illinois Department of Agriculture will be accepting applications for cannabis infusers, craft growers, and transporters beginning February 14, 2020. Similar to the Adult-Use retail application, about 20% of points will be allocated to social equity applicants. Social equity applicants will also be required to pay a discounted application fee of $2,500 instead of $5,000.
All applications will be due March 16, 2020 by 5:00 p.m.
When will applications be issued for Illinois Adult-Use Cannabis Licenses?
Conditional Adult Use Dispensing Organization Licenses will be awarded on or before May 1, 2020.
How many Cannabis Licenses will be issued in Illinois?
The Department of Financial and Professional Regulation will award up to 75 Conditional Adult Use Dispensing Organization Licenses on or before May 1, 2020.
How will Illinois Cannabis Licenses be selected?
The Department of Financial and Professional Regulation will rank applicants using the following scale:
- Suitability of Employee Training Plan (15 points)
- Security and Record Keeping (65 points)
- Business Plan, Financials, Operating Plan, and Floor Plan (65 points)
- Knowledge and Experience in Cannabis or Related Fields (30 points)
- Status as a Social Equity Applicant (50 points)
- Labor and Employment Practices (5 points)
- Environmental Plan (5 points)
- Illinois Owner (5 points)
- Status as a Veteran (5 points)
- Diversity Plan (5 points)
- Total: 250 points
Transporter: License will be issued to applicants who score at least 75% of the available points. The application will have a total of 1,000 available points. Most points will be allocated to the security and record keeping plan and evidence of social equity applicant.
Infuser: License will be issued up to 40 infuser licenses. The infuser application will also have a total of available points, allocating more points to the security and record keeping plan
Craft Grower: License will be issued for up to 40 craft grow licenses. Individuals and entities will be limited to holding interest in 2 craft grow licenses. A craft grow license allows applicants to have up to 5,000 square feet of canopy space. All cultivation must take place indoors. Craft growers will also be permitted to process and extract cannabis and cannabis oils.
What are the fees for a New Dispensing Organization License In Illinois?
Non-Social Equity Applicants will pay a $5,000 application fee. Should they be awarded a license, the fee for an Adult Use Dispensing Organization License is $60,000 for a two-year license.
Social Equity Applicants will pay a $2,500 application fee. Should they be awarded a license, the fee for an Adult Use Dispensing Organization License is $30,000 for a two-year license.
What is a social equity applicant?
A Social Equity Applicant means an applicant is an Illinois resident that meets the one of the following criteria:
- The applicant has at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area*
- The applicant has at least 51% ownership and control by one or more individuals who:
- Have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under the Cannabis Regulation and Tax Act**; or Is a member of an impacted family***
- The applicant has at least 10 full-time employees and at least 51% of whom:
- Currently reside in a Disproportionately Impacted Area; or
- Have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under the Cannabis Regulation and Tax Act or a member of an impacted family.
Who regulates legal cannabis operations in Illinois?
Illinois Cannabis Regulating Agencies:
- Illinois Department of Financial and Professional Regulation:
- Oversees issuance of Dispensing Organizations
- Illinois Department of Agriculture:
- Oversees issuance of Cultivation Centers Licenses
- Oversees issuance of Craft Growers Licenses
- Oversees issuance of Testing Facilities Licenses
What cannabis license types are available in Illinois?
In Illinois you will be able to dispense and sell cannabis with a single license. There will also be testing facilities, cultivation centers, and craft growers licenses. With the cultivation center license, your Illinois cannabis real estate property can cultivate, process, and transport cannabis.
Dispensing Organization – Facility operated by an organization of 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. A dispensary organization shall include a registered medical cannabis organization as defined in the Compassionate Use of Medical Pilot Program Act or its Successor Act that has obtained an Early Approval Adult Use Dispensing Organization License.
Cultivation Center – Facility licensed by the Department of Agriculture to cultivate, process, transport (unless otherwise limited by this Act), and perform other necessary activities to provide cannabis and cannabis-infused products to cannabis business establishments.
Cannabis Testing Facility – Entity registered by the Department of Agriculture to test cannabis for potency and contaminants.
Craft Grower – Facility operated by an organization or business that is licensed by the Department of Agriculture 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 growing may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering state. The Department of Agriculture may authorize an increase or decrease of flowering stage cultivation space in increments of 3,000 square feet by rule based on market need, craft grower capacity, and the licensee’s history of compliance or noncompliance, with a maximum space of 14,000 square feet for cultivating plants in the flowering stage, which must be cultivated in all stages of growth in an enclosed and secure area. 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 of all licensees sharing a vault share more than 50% of the same ownership.
How do I apply for Illinois cannabis license?
To learn more about the program, read the Illinois Cannabis Program. Read website here.
Use this application form to apply for your Conditional Dispensing Organization License in Illinois.
Use Our Professional Application Service for Illinois Adult-Use Cannabis Licenses
We recommend you become more familiar with the laws and contact us to create a professional application. There will be many people attempting to get this license. Minimize your wasted money, headaches, and issues by working with a professional compliance team.
Currently we are engaged with license applicants in Illinois and ready for more! Schedule a free consultation today to take advantage of our research and secure your cannabis operations license in Illinois. You can connect with our team by phone, email or you can ask us a question online.