In Part
2 of this series we discussed early approval of Adult Use Dispensing Organization
that will be made available to current medical cannabis dispensing
organizations under the new Illinois
Cannabis Regulation and Tax Act
But what about dispensary licenses that aren’t connected to the prior
medical facility licenses (everything but the early approval licenses).

Under the Act, the Illinois
Department of Financial and Professional Regulation (IDFPR)
is responsible
for issuing the new Conditional Adult Use Dispensing Organization Licenses.  The Act requires the IDFPR to issue up to 75
Conditional Adult Use Dispensing Organization Licenses before May 1, 2020 and
an additional 110 licenses by December 21, 2021.  To ensure geographic dispersion of the Conditional
Adult Use Dispensing Organization Licenses, the licenses are to be awarded based
on the percentage of the Illinois’s population in each of the Act’s delineated
geographic regions.

 To be awarded a
Conditional Adult Use Dispensing Organization License, an application must meet
thirty different requirements, including:

  • Payment of a nonrefundable application fee of
    $5,000 for each license for which the applicant is applying.
  • Certification that the applicant will comply
    with the requirements of the Act.
  • Listing the legal name, address, telephone
    number, and email address of the proposed dispensing organization.
  • A statement that that the dispensing
    organization agrees to respond to the IDFPR’s supplemental requests for
  • The details of various financial and
    biographical information of each principal officer.
  • A description of the training and education that
    will be provided to dispensing organization agents.
  • Copies of the proposed operating bylaws, business
    plan, inventory control plan, and floor plan.
  • Evidence of the applicant’s status as a Social
    Equity Applicant, if applicable, and whether a Social Equity Applicant plans to
    apply for a loan or grant issued by the Department of Commerce and Economic
  • A plan for community engagement.
  • Procedures to ensure accurate recordkeeping and
    security measures.
  • The estimated volume of cannabis the
    organization plans to store at the dispensary.
  • A description of the features that will provide
    accessibility to purchasers as required by the Americans with Disabilities Act.
  • Detailed descriptions of various parts of the
    organization’s facilities, including the air treatment system and the facility
    where cannabis will be stored.
  • A reasonable assurance that the issuance of a
    license will not have a detrimental impact on the community in which the
    applicant wishes to locate.
  • Signed statements from each dispensing
    organization agent stating that he or she will not divert cannabis.
  • The number of licenses it is applying for in
    each geographic region.
  • A diversity plan that includes a narrative of
    at least 2,500 words that establishes a goal of diversity in ownership,
    management, employment, and contracting to ensure
    that diverse participants and groups are afforded equality of opportunity.
  • A contract with a private security contractor
    that is licensed under the Private Detective, Private Alarm, Private Security,
    Fingerprint Vendor, and Locksmith Act of 2004.
  • Other information deemed necessary by the
    Illinois Cannabis Regulation Oversight Officer to conduct the disparity and
    availability study to be conducted by the State.

After the application is submitted, it’s time for the IDFPR
to evaluate it.  Section 15-30 of the
establishes the selection criteria for conditional licenses.  The Department will score the applications
out of a total of 250 points.  Applicants
will be awarded points based on a determination that the application
satisfactorily includes the following:

  • Suitability of Employee Training Plan (15
  • Security and Recordkeeping (65 points)
  • Applicant’s Business Plan, Financial, Operating
    and Floor Plans (65 points)
  • Knowledge and Experience (30 points)
  • Status as a Social Equity Applicant (50 points)
    (Social Equity Applicants are businesses where the ownership or staff has been
    directly impacted by the enforcement of cannabis related laws)
  • Labor and Employment Practices (5 points)
  • Environmental Plan (5 points)
  • Illinois Owner (5 points)
  • Status as a Veteran (5 points)
  • A Diversity Plan (5 points)

The IDFPR may award up to 2 bonus points for an applicant’s
plan to engage with the community.  

An applicant who receives a Conditional Adult Use Dispensing
Organization License will have 180 days from the date of the award to identify
a physical location for the dispensing organization retail storefront. 

The IDFPR will not issue the Conditional Adult Use
Dispensing Organization License to an applicant until the IDFPR has inspected
the dispensary site and the license awardee has paid a registration fee of

Without doubt, there will be more applications than
available licenses, so it will be vital for all applicants to develop and
refine their applications to score as many points as possible to give
themselves the best chance at being awarded a license.  

The post You and Illinois’s new Cannabis Regulation and Tax Act. Part 5 – Dispensaries appeared first on Libation Law Blog.