United States: Illinois To Legalize The Recreational Use Of Marijuana

Last Updated: June 12 2019
Article by Scott Bloomberg

Illinois is set to become the 11th state to legalize the recreational use of marijuana – and the first state to do so by legislation rather than by voter initiative – after the State House passed a legalization bill on Friday, May 31.  Governor J.B. Pritzker campaigned for office on a pro-legalization platform, and is widely expected to sign the bill into law.

The bill would allow recreational sales to begin as soon as January 1, 2020.  It would allow Illinois residents age 21 and older to possess up to 30 grams of marijuana and would allow nonresidents to possess up to 15 grams.  The bill creates a structure for licensing cultivation and dispensary facilities and gives localities control over zoning, including the ability to prohibit marijuana facilities.  Remedying the past injustices created by marijuana prohibition is also central to the legislation.  It instructs the governor to expunge certain marijuana convictions from residents' criminal records, creates a program to help minority business owners enter the marijuana industry, and establishes a grant fund to help pay for programs in communities disproportionately affected by the war on drugs.

There are several key provisions of the bill that cannabis businesses looking to gain licensure in the nation's 5th largest economy should be aware of.

  • The Department of Agriculture will regulate cultivators, craft growers, infuser organizations, and transporting organizations, and the Department of Financial and Professional Regulation ("IDFPR") will regulate dispensaries. This regulatory structure is the same as the state's medical cannabis program. (Sec. 5-10)
  • "Social Equity Applicants" for licenses will receive a 50% fee waiver and will have access to certain grant and loan programs. If the license is transferred or the business is sold to a non-Social Equity Applicant within 5 years, the balance of any waived fees, outstanding loans, and the full amount of any awarded grants will become due. (Sec. 7-20)


  • Existing medical dispensaries can apply for an "Early Approval Adult Use Dispensing Organization License" to serve recreational users at an existing medical dispensary (sec. 15-20) or at a secondary site (sec. 15-25). The fees include a non-refundable $30,000 application see, a fee of up to $100,000 to the state's Cannabis Business Development Fund, and up to a $100,000 contribution to certain cannabis-related community and social development initiatives.
  • The law authorizes the IDFPR to issue up to 185 conditional dispensary licenses by the end of 2021. The IDFPR will issue up to 75 Conditional Adult Use Dispensing Organization Licenses" before May 1, 2020, and then will issue up to another 110 conditional licenses during 2021. (secs. 15-25, 15-35)
  • No person can hold a financial interest in more than 10 dispensing organizations. (Sec. 15-36)
  • The law includes robust disclosure provisions surrounding dispensary organizations' ownership and management structures. For publicly traded companies, the law requires disclosure of all 5%+ owners, to the extent such owners are known.  (Sec. 15-50)
  • Transfers of licenses and sales of dispensing organizations will require prior approval from the IDPFR. The IDFPR will also review changes to principal officers to determine whether such changes constitute an effective transfer of a license. (Sec. 15-60)

Cultivation Centers, Craft Growers, Infusers, & Transporters

  • The Department of Agriculture may make up to 30 cultivation center licenses available. This appears to be the total number of licenses for the medical and recreational programs.  (Sec. 20-5)
  • As with existing medical dispensaries, existing cultivation centers can apply for an "Early Approval Adult Use Cultivation Center License." Fees include a $100,000 application fee, a Cannabis Business Development Fee ranging from $250,000 to $750,000, and a contribution of up to $100,000 to certain cannabis-related social and community development programs. (Sec. 20-10).  An additional $100,000 registration fee is due after receiving conditional licensure and before receiving final licensure. (Sec. 20-20)
  • No person can hold a financial interest in more than 3 cultivation centers. (Sec. 20-30)
  • Cultivation centers are limited to 210,000 square feet of canopy space for plants in the flowering stage for cultivation of adult-use cannabis. (Sec. 20-30)
  • Cultivation centers cannot discriminate in price when selling to dispensaries, craft growers, or infuser organizations. (Sec. 20-30)
  • The law allows the Department to license up to 40 craft growers by July 1, 2020, and another 60 by the end of 2021. (Sec. 30-5)
  • Craft growers may contain up to 5,000 square feet of canopy space for plants in the flowering state. (Sec. 1-10)
  • The law allows the Department to license up to 40 infuser organizations by July 1, 2020, and another 60 by the end of 2021. (Sec. 35-5)
  • The law creates a licensing scheme for issuing transporting licenses, and does not cap the number of licenses available. (Art. 40)

To view Foley Hoag's Cannabis and the Law Blog please click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions