Illinois State Regulation Analysis
HB0001 is the current medical marijuana bill for the state of Illinois. There are two different types of licenses, Cultivation Centers and Medical Marijuana Dispensing Centers. The “Centers” can be FOR-PROFIT and would be selected following a competitive, merit-based application process.
Illinois will be implementing a full scale monitoring system and tracking every operational aspect to these centers with a tightly regulated system. There is no home cultivation in Illinois for patients and all Dispensing Centers can only receive product from licensed Cultivation Centers within the state.
Download PDF of the current regulations to open a dispensary in Illinois.
Canna Proposals analysis on application requirements to open a dispensary
- Comprehensive merit-based application process will require the first initial application, including non-profit information, site locations, proof of capitalization, and other specific Dispensing Center or Cultivation Center business and operations plans.
- A Dispensing Organization is prohibited from obtaining cannabis from outside the State of Illinois and only from a registered Cultivation Center.
- Regulations require any Cultivation Centers to be sited at least 2,500 feet from any pre-existing school public school, day care center, part child day care facility, or
group home. Any Dispensing Centers must be at least 1,000 feet schools or day care facilities. Both centers will be limited to industrial zoning, following any municipal by-laws.
- The Department of Financial and Professional Regulation may not issue less than the 60 registrations if there are qualified applicants who have applied with the Department of Financial and Professional Regulation. The organizations shall be geographically dispersed throughout the State. Issued registration certificates and registration cards are non-transferable.
- Regulations require Cultivation Centers and Dispensing Centers to maintain a complete seed-to-sale inventory control system, to monitor the chain of custody
and current whereabouts, in real time, of medical marijuana from the point that it is harvested at the Cultivation Center and/or MIP facility and sold to a Dispensing Center and its patient members.
- Laboratory testing is required on testing for traces of pesticides/mildew and determining THC/CBD content, overall quality, and potency.
- Marijuana must be cultivated in an enclosed, locked facility.
- (MIP) Marijuana-Infused Products are allowed to be dispensed.
- Patients are allowed to purchase medication 2.5 ounces of product every 2 weeks. A maximum for the amount of edibles a patient can have will be created by the department but has not been established.
- The Department of Financial and Professional Regulation wil oversee the program in cooperation with the Illinois State Police.
State financial requirements to open a dispensary in Illinois
- A non-refundable application fee is yet to be established by the Department of Financial and Professional Regulation.
- The department currently has 120 days to create the a draft regulatory structure which will indicate fee requirements.
Canna Proposals recommends that between $500,000.00 – $800,000.00 or more in starting capital could be necessary to pay the expenses involved with development of your dispensary business plans, securing site locations, any consulting fees accrued, and paying all state financial requirements for ONE Dispensary Center or Cultivation Center license. There will be additional costs when applying for more Dispensary or Cultivation licenses in Illinois.
This may or may not include the amount needed to develop either the Cultivation Center or the Dispensing Center. For Cultivation Centers only, it is imperative to have the necessary operations costs covered for up to 2-4 months during initial cultivation cycle after receiving a cultivation license to operate. Please contact us for more information on how to open a dispensary in Illinois.