Illinois officials have posted a new form that recreational marijuana dispensaries can file in order to get permission to begin selling medical cannabis, which is taxed at a much lower rate than adult-use products.
The expanded opportunity for marijuana businesses comes as part of omnibus cannabis legislation that was passed by lawmakers and signed into law by Gov. JB Pritzker (D) this session.
The law also doubles the amount of marijuana that adults can legally possess, allows drive-thrus and curbside pickups at dispensaries and lets them stay open for longer hours of operation, among other changes.
The five-page form released this week by the Illinois Department of Financial and Professional Regulation (IDFPR) allows businesses holding an active Adult Use Dispensing Organization License issued under the state’s Cannabis Regulation and Tax Act to apply for a separate Medical Cannabis Dispensing Organization license.
“Any adult use dispensary holding an active license in good standing may opt-in for a medical dispensary license,” IDFPR said in previously issued guidance about changes made by the new cannabis omnibus legislation. “This medical dispensary license will allow the dispensary to sell cannabis to medical cannabis patients at the medical tax rate up to the medical patient’s allotment.”
Dispensaries can begin filing the form on September 10, and then they must wait for their so-called “15-37 License,” named after the section of the legislation, to be issued before they can begin medical cannabis sales.
Applicants must submit a non-refundable fee of $5,000 and, if approved, their standard renewal fee will then increase by an additional $10,000 per renewal cycle.
The new form, noted earlier by Illinois New Joint, asks about a business’s disciplinary history, ownership structure and tax compliance.
It also asks questions such as:
- Does the dispensary include materials or signs informing patients that possession of cannabis is illegal under federal law?
- Does the education plan offer information available to patients on the potential side effects of cannabis?
- Does the dispensary offer materials or signs informing patients that consuming cannabis is prohibited in public places?
Businesses also need to submit a patient prioritization plan that includes details about designating a medical cannabis line and registers that will serve medical cannabis patients first, as well as a floor plan showing a dedicated consultation area for patients.
The medical cannabis sales option for adult-use businesses is part of SB 3222, which was approved by the legislature and signed by Pritzker in June.
As enacted into law, the measure also allows residents of the state who are over 21 years of age to possess up to 60 grams of marijuana flower—double the amount in prior law. They are also able to have up to 10 grams of cannabis concentrates and infused products with up to 1,000 mg of THC—also double the earlier limit. Possession amounts for adult non-residents are also doubled under the bill and are generally set at half of what residents can carry.
Additionally, people with past convictions for possession of up to 60 grams of marijuana are now able to have those records expunged—double the previous cutoff allowing only those with convictions for up to 30 grams to be eligible.
The legislation also recriminalizes hemp THC products with more than 0.4 milligrams of THC per container, in line with a federal ban that is set to take effect in November.
The state’s list of medical marijuana qualifying conditions is also being expanded to add female orgasmic disorder, endometriosis, ovarian cysts and uterine fibroids.
The governor held a signing ceremony for the legislation at a marijuana dispensary, saying he is “proud that Illinois continues to lead the nation in showing what thoughtful, balanced cannabis policy can achieve.”
In 2019, Pritzker signed the state’s initial marijuana legalization policy into law.
