{"id":286789,"date":"2019-10-16T15:15:04","date_gmt":"2019-10-16T20:15:04","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/cannabis-law\/starting-a-cannabis-business\/opening-a-marijuana-dispensary-in-illinois.html"},"modified":"2023-06-27T11:34:53","modified_gmt":"2023-06-27T16:34:53","slug":"opening-a-marijuana-dispensary-in-illinois","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/cannabis-law\/starting-a-cannabis-business\/opening-a-marijuana-dispensary-in-illinois.html","title":{"rendered":"How to Open a Marijuana Dispensary in Illinois"},"content":{"rendered":"\n
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How to Open a Marijuana Dispensary in Illinois<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Amber Sheppard, Esq.<\/a>\n | Last updated\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Key Takeaways<\/h2>\n

The state of Illinois enacted the Cannabis Regulation and Tax Act<\/a> in 2019. It permits the possession and commercial sale of cannabis products for recreational use. The Act expunges the cannabis-related criminal records of nearly 800,000 citizens.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

 It also opens several opportunities for business owners and entrepreneurs who are looking to get into the dispensary business. Since only 55 new licenses were available in 2023, it’s important to know the laws and specific zoning ordinances of this Act before making a marijuana business plan.<\/p>\r\n

The requirements for opening and regulating medical marijuana dispensaries are in the Act. You should refer to the Compassionate Use of Medical Cannabis Program Act<\/a> for more information about medical cannabis dispensary requirements in the state.<\/p>\r\n

The table below gives a brief introduction to the relevant laws and regulations you need to know to open a cannabis retail dispensary.<\/p>\r\n\r\n

Relevant Laws: The Cannabis Regulation and Tax Act<\/a> (410 ILCS 705\/1-999) legalizes and regulates recreational Illinois cannabis sales.<\/p>\r\n

Cannabis License Fees: Retail license application<\/a> costs for starting a new dispensary. Note that medical marijuana dispensary fees<\/a> are a different amount.<\/p>\r\n

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Note: State laws are always subject to change through the passage of new legislation. Please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.<\/i><\/p>\r\n

Who Oversees the Licensing Process?<\/h2>\r\n

The Illinois Department of Financial and Professional Regulation (IDFPR)<\/a> is the organization that oversees dispensary licensing. The IDFPR assigned 17 Bureau of Labor Statistics (BLS) regions. Only a certain number of dispensaries can be within each region.<\/p>\r\n

Application Process<\/h2>\r\n

The Act, section 15-10, <\/a>gave initial priority to medical marijuana dispensaries to register to sell cannabis through an Early Approval Adult Use Dispensing Organization License<\/a>. This license allowed existing medical marijuana dispensaries to sell recreational marijuana by January 1, 2020. There are some required documents<\/a> that applicants who own a medical marijuana dispensary need to show to get this license. These include paying $30,000 in licensing fees and showing proof of registration for the medical marijuana dispensary.<\/p>\r\n

Initially, the law stated that the department would start accepting applications for new dispensary licenses before October 1, 2019. As of March 2023, there were so many applications that a social equity lottery program was set up. The Social Equity Lottery under 68 IAC 1291.400<\/a> sets aside 55 application spaces for individuals who:<\/p>\r\n

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  1. Lived in poverty for five out of the last ten years<\/li>\r\n
  2. Had a low-level cannabis-related arrest or conviction for themselves or a family member, or<\/li>\r\n
  3. Survived a shooting<\/li>\r\n<\/ol>\r\n

    New businesses looking to run a dispensary need to undergo background checks by submitting their fingerprints to the FBI. They must also disclose relevant financial history like:<\/p>\r\n