(410 ILCS 130/115)
Registration of dispensing organizations.
(a) The Department of Financial and Professional Regulation may issue up to 60 dispensing organization registrations for operation. 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 to allow all registered qualifying patients reasonable proximity and access to a dispensing organization.
(a-5) For any dispensing organization registered on or after July 1, 2019, the Department of Financial and Professional Regulation shall award not less than 20% of all available points to applicants that qualify as Social Equity Applicants. For purposes of this Section:
"Disproportionately Impacted Area" means a census tract or comparable geographic area that satisfies the following criteria as determined by the Department of Commerce and Economic Opportunity, that:
(1) meets at least one of the following criteria:
(A) the area has a poverty rate of at least 20%
according to the latest federal decennial census; or
(B) 75% or more of the children in the area
participate in the federal free lunch program according to reported statistics from the State Board of Education; or
(C) at least 20% of the households in the area
receive assistance under the Supplemental Nutrition Assistance Program; or
(D) the area has an average unemployment rate, as
determined by the Illinois Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the United States Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application; and
(2) has high rates of arrest, conviction, and
incarceration related to sale, possession, use, cultivation, manufacture, or transport of cannabis.
"Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria:
(1) an applicant with at least 51% ownership and
control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area;
(2) an applicant with at least 51% of ownership and
control by one or more individuals who have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement or member of an impacted family;
(3) for applicants with a minimum of 10 full-time
employees, an applicant with at least 51% of current employees who:
(A) currently reside in a Disproportionately
(B) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is eligible for expungement or member of an impacted family.
(b) A dispensing organization may only operate if it has been issued a registration from the Department of Financial and Professional Regulation. The Department of Financial and Professional Regulation shall adopt rules establishing the procedures for applicants for dispensing organizations.
(c) When applying for a dispensing organization registration, the applicant shall submit, at a minimum, the following in accordance with Department of Financial and Professional Regulation rules:
(1) a non-refundable application fee established by
(2) the proposed legal name of the dispensing
(3) the proposed physical address of the dispensing
(4) the name, address, and date of birth of each
principal officer and board member of the dispensing organization, provided that all those individuals shall be at least 21 years of age;
(5) information, in writing, regarding any instances
in which a business or not-for-profit that any of the prospective board members managed or served on the board was convicted, fined, censured, or had a registration suspended or revoked in any administrative or judicial proceeding;
(6) proposed operating by-laws that include
procedures for the oversight of the medical cannabis dispensing organization and procedures to ensure accurate record keeping and security measures that are in accordance with the rules applied by the Department of Financial and Professional Regulation under this Act. The by-laws shall include a description of the enclosed, locked facility where medical cannabis will be stored by the dispensing organization; and
(7) signed statements from each dispensing
organization agent stating that they will not divert medical cannabis.
(d) The Department of Financial and Professional Regulation shall conduct a background check of the prospective dispensing organization agents in order to carry out this Section. The Department of State Police shall charge a fee for conducting the criminal history record check, which shall be deposited in the State Police Services Fund and shall not exceed the actual cost of the record check. Each person applying as a dispensing organization agent shall submit a full set of fingerprints to the Department of State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed in the Department of State Police and Federal Bureau of Investigation criminal history records databases. The Department of State Police shall furnish, following positive identification, all Illinois conviction information to the Department of Financial and Professional Regulation.
(e) A dispensing organization must pay a registration fee set by the Department of Financial and Professional Regulation.
(f) An application for a medical cannabis dispensing organization registration must be denied if any of the following conditions are met:
(1) the applicant failed to submit the materials
required by this Section, including if the applicant's plans do not satisfy the security, oversight, or recordkeeping rules issued by the Department of Financial and Professional Regulation;
(2) the applicant would not be in compliance with
local zoning rules issued in accordance with Section 140;
(3) the applicant does not meet the requirements of
(4) one or more of the prospective principal officers
or board members has been convicted of an excluded offense;
(5) one or more of the prospective principal officers
or board members has served as a principal officer or board member for a registered medical cannabis dispensing organization that has had its registration revoked; and
(6) one or more of the principal officers or board
members is under 21 years of age.
(Source: P.A. 101-363, eff. 8-9-19.)