Illinois set to more than double number of marijuana shops after getting court clearance

The number of recreational marijuana shops in Illinois is due to more than double after the state Friday announced its plans to issue 185 new dispensary licenses.

The action comes after courts lifted bans on issuing the licenses while litigation continues.

Applicants who won rights to licenses last year must finalize compliance checks before their conditional licenses can be issued.

Beginning Thursday, the state plans to issue licenses in three waves. The first wave, for the Naperville-Chicago-Elgin region, is to be issued by July 22. The next wave, for other regions with multiple licenses, is due by Aug. 5, with the third wave, for districts with one license, due by Aug. 19.

The pace of licensing will be determined by how quickly applicants’ compliance checks can be verified.

“Today marks the beginning of the next chapter of the most equitable adult-use cannabis program in the country,” Gov. J.B. Pritzker said. “This means countless more opportunities for communities that have suffered from historic disinvestment to join this growing industry and ensure its makeup reflects the diversity of our state.”

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All principal officers, or owners, will have 60 days after notification to pay any taxes or other debts to the state. In addition, the Illinois Department of Financial and Professional Regulation must verify that no principal officers have a financial interest in more than 10 adult-use dispensary licenses.

After issuing the conditional licenses, the agency will conduct background checks of principal officers.

Licensees will have 180 days to select a physical storefront location and obtain the operating license, or may request a 180-day extension if necessary.

The Illinois Department of Commerce and Economic Opportunity offers low-interest loans to qualified licensed companies through its Social Equity Cannabis Loan Program. The first round of applicants is expected to finalize loan agreements with the agency’s partner lending institutions in the coming weeks. The next phase of the loan program is to be launched in the near future, state officials said.

The state also funds free licensing technical assistance through Oakton Community College in Des Plaines, The Trep School in Danville, the Women’s Business Development Center in Chicago, and the University of Illinois at Chicago Law School.

The announcement comes a day after U.S. Judge Rebecca Pallmeyer declined to issue a temporary restraining order against the new licenses in a lawsuit by two plaintiffs claiming the state’s residency requirements violate federal law. The judge said the plaintiffs lacked standing to challenge the previously allotted licenses, and that it was premature to rule on the issuance of new licenses, since state officials have proposed alternatives to state residency.

The judge freed the state to issue the 185 licenses previously allotted, but said it must hold off on additional dispensary licenses until she makes further rulings.