On January 1, 2020, the Cannabis Regulation and Tax Act went into effect, providing for the controlled legalization of cannabis use for adults in Illinois. Not only did the law make the recreational use of cannabis legal for adults, but it also established regulations for cannabis dispensing organizations. The licensing and oversight for these businesses fall under the bailiwick of the Illinois Department of Financial and Professional Regulation (IDFRP). If you have been granted a cannabis dispensing license and have questions or run into any legal issues, a Chicago business license lawyer can help.
State Issues Licenses
So far, the IDFR has issued a total of 182 conditional adult use dispensing organization licenses out of the 185 licenses that are available. There were a total of 177 licenses issued in July and another five issued so far this month. The IDFR does anticipate issuing the remaining three licenses within the next few weeks as soon as additional documents are received from the businesses chosen.
Under the law, when a business has been awarded a conditional license, it has 180 days to choose a physical storefront location and obtain an adult use dispensing organization license. If the conditional license holder is unable to find a physical location within those 180 days, they may request an extension of an additional 180 days.
An adult use dispensing organization license (also called a dispensary license) allows a business to obtain cannabis from a craft grower, cultivation center, or processing organization for the purpose of selling cannabis, cannabis seeds, cannabis-infused products, and paraphernalia. There is a non-refundable $30,000 application fee required when applying. Licenses are renewed each year and require a $60,000 renewal fee.
It is critical that any business or organization that has been issued a cannabis dispensing license adhere to the rules and regulations that the IDFR has established. Failure to do so could result in disciplinary action or even revocation of the business’s license to dispense. Some of the issues that could result in action by the department include failure to maintain proper storage requirements, failure to maintain proper security, obtaining cannabis products from an unauthorized source, or discrepancies in cannabis stock and finances in an IDFR audit.
Contact an Illinois Business License Defense Lawyer
If you have questions or issues regarding your adult use dispensing organization license, contact a Chicago adult use dispensing organization business license defense attorney from Williams & Nickl, LLC to find out how we can help. Call 312-335-9470 today to schedule a free and confidential consultation.