(410 ILCS 705/15-36) Sec. 15-36. Adult Use Dispensing Organization License. (a) A person is only eligible to receive or hold an Adult Use Dispensing Organization License if the person has been issued a Conditional Adult Use Dispensing Organization License, an Early Approval Adult Use Dispensing Organization License, or an Early Approval Adult Use Dispensing Organization License at a Secondary Site pursuant to this Act or its administrative rules. (b) The Department shall not issue an Adult Use Dispensing Organization License until: (1) the Department has inspected the dispensary site |
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(2) the Conditional Adult Use Dispensing Organization
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| License holder has paid a license fee of $60,000 or a prorated amount accounting for the difference of time between when the Adult Use Dispensing Organization License is issued and March 31 of the next even-numbered year; and
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(3) the Conditional Adult Use Dispensing Organization
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| License holder has met all the requirements in this Act and rules.
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(c) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 10 dispensing organizations, including through any management contract, consultant contract, or other similar arrangement.
(c-1) No person or entity that is employed by, is an agent of, or participates in the management of a dispensing organization; no person who is a principal officer of a dispensing organization or registered medical cannabis dispensing organization; and no entity controlled by or affiliated with a principal officer of a dispensing organization or registered medical cannabis dispensing organization shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a dispensing organization that would result in such person or entity owning or participating in the management of more than 10 dispensing organizations licensed under this Article, including through any management contract, consulting contract, or similar arrangement.
(c-2) Notwithstanding subsections (c) and (c-1), if a person or entity enters an arrangement that could or does result in the person or entity receiving payments from a dispensing organization in an amount exceeding any of the amounts in paragraphs (1) through (3) of this subsection, then, unless the dispensing organization is approved by the Department for a limited waiver as identified in this Section, the person or entity is considered to be a principal officer of the dispensing organization requiring the Department's approval and registration:
(1) 10% of the dispensing organization's monthly
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(2) 50% of the dispensing organizations 's net
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| profits in a calendar year; or
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(3) $250,000, or an amount otherwise determined by
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| the Department via administrative rulemaking, in a calendar year.
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The Department may grant a limited waiver to the
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| requirements of this subsection if the dispensing organization demonstrates good cause and there is no transfer of ownership and control.
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(d) The Department shall deny an application if granting that application would result in a person or entity obtaining direct or indirect financial interest in more than 10 Early Approval Adult Use Dispensing Organization Licenses or Dispensing Organization Licenses. If a person or entity is awarded a Conditional Adult Use Dispensing Organization License that would cause the person or entity to be in violation of this subsection, he, she, or it shall choose which license application it wants to abandon and such licenses shall become available to the next qualified applicant in the region in which the abandoned license was awarded.
(e) As used in this Section:
"Equitable or beneficial ownership" includes the interests arising under or in connection with any arrangement that has the effect of granting the person or entity the power or authority to participate in the operation or management of the dispensing organization.
"Participating in the operation or management of a dispensing organization" includes, without limitation, controlling decisions regarding staffing, pricing, purchasing, marketing, store design, and hiring. "Participating in the operation or management" does not include third parties who provide administrative services marketed and delivered to the general population of business in Illinois, such as accounting or information technology support.
(Source: P.A. 104-417, eff. 8-15-25; 104-463, eff. 6-12-26.)
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