The amendment to Illinois Senate Bill 7 will legalize recreational adult use cannabis in Illinois. These legal developments present a unique opportunity for entrepreneurs and established companies in the legal cannabis space, but they also present many challenges. The first, and perhaps greatest, hurdle business owners in the space will face is obtaining state licensure.

The IDFPR’s (Illinois Department of Financial and Professional Regulation) application for dispensing organizations was released last week. It delineates the steps one must take in order to compel the department into granting a dispensary license to buy and sell cannabis in the State of Illinois.

Importantly, the dispensary license application cost is $5,000 ($2,500 if you can prove you are a social equity applicant). After the license application is approved, the permit cost is $30,000 plus $200,000 to the Cannabis business development fund for new dispensing organizations. This high barrier of entry into the legal cannabis market will likely discourage many entrepreneurs from opening stores in areas where they may not enjoy enough sales to counteract the cost of the permit. 

This summary is not meant to be exhaustive. If you have any questions about the Illinois Recreational Cannabis Program or are interested in pursuing an Illinois dispensary license, please contact the attorneys at Ion Law. Ion Law’s attorneys are experienced with the licensing process, and zoning regulations imposed by the City of Chicago, as well as, those codified in recent Illinois cannabis-related legislation. The complex web of competing state and local rules and regulations necessitates professional aid. Call or email Ion Law to learn more