Section 1291.50  Tied Applicant Lottery Conducted in 2021

a)         A tied applicant may qualify as an eligible applicant subject to the following:

1)         A tied applicant is prohibited from becoming an eligible applicant if a principal officer of the tied applicant is a principal officer of more tied applicants than the number of remaining available licenses.  For example, if an individual is a principal officer of four tied applicants and there are two remaining available licenses, no more than two of those tied applicants may become eligible applicants.

2)         A tied applicant is prohibited from becoming an eligible applicant if a principal officer of a tied applicant resigns after the conclusion of the scoring process period.

3)         A tied applicant is prohibited from becoming an eligible applicant if, after the conclusion of the declination period identified in subsection (b), a principal officer of the applicant is a principal officer of more tied applicants than the number of remaining available licenses.

b)         A tied applicant may decline to become an eligible applicant by informing the Department within five business days after the conclusion of the scoring process.  The declination must be submitted on forms approved by the Department.

c)         If, at the conclusion of the scoring process period, there are two or more eligible applicants, the Department may distribute the remaining available licenses by lot subject to the following:

1)         The Department shall publish a list of eligible applicants at least five business days before the day the remaining available licenses are distributed.

2)         The drawing by lot for all remaining available licenses will occur on the same day.

3)         For each BLS region, the Department will draw a number of eligible applicants equal to five times the number of remaining eligible applicants.

4)         Within each BLS region, the first eligible applicant drawn will have the first right to a remaining available license.  The second eligible applicant drawn will have the second right to a remaining available license.  The same pattern will continue for each subsequent eligible applicant drawn.

5)         The process for distributing remaining available licenses will be recorded by the Department in a format selected by the Department.

6)         If, upon being selected for a remaining available license, the eligible applicant has a principal officer that is a principal officer in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses, the licensees and the eligible applicant listing that principal officer must choose which license to abandon pursuant to Section 15-36(d) of the Act, and notify the Department in writing within the timeframe identified in 1291.50(b).  If the eligible applicant or licensees do not notify the Department as required, the Department will refuse to issue to the eligible applicants all remaining available licenses obtained by lot in all BLS regions. 

7)         All remaining available licenses that have been abandoned shall be distributed to the next eligible applicant drawn by lot.  If there are no additional eligible applicants, the license shall be awarded to the applicant receiving the next highest number of application points in the BLS region. 

(Source:  Amended at 48 Ill. Reg. 13377, effective August 20, 2024)