Time flies when you are trying to stand up a dispensary. While it may be hard to believe, it has been almost a year since Social Equity Criteria Lottery winners were issued their conditional licenses, and those licenses are about three months out from their expiration. For those who are not yet operational, we want to ensure that you are aware of certain upcoming regulatory obligations and deadlines.
Pursuant to the regulations, you can request a 180-day extension for your conditional license and it is critical that you timely submit any such request—no less than 10 business days prior to the expiration of your conditional license but preferably 30 days out from that deadline. When submitting a request for an extension, it is key that you demonstrate your past efforts to secure a site for your dispensary, describe any hardships you have encountered, and explain the forward plan to secure a site within the 180 days you have left.
Once you have a location, that site control can be demonstrated by providing the Illinois Department of Financial and Professional Regulation (IDFPR) with any of the following documents (other documents may be acceptable as well):
- proof of building ownership;
- agreement to purchase building or lease that is dependent on zoning or state license approval;
- signed lease for the term of the initial license; or
- proof of zoning approval or application for zoning approval.
Importantly, if the IDFPR denies the request for an extension or the conditional license holder is unable to become operational within 545 calendar days after being awarded a conditional license, the IDFPR will rescind the conditional license and may proceed to the next applicant drawn. The IDFPR’s regulations define “operational” as obtaining the Annual Adult Use Dispensing License: “In order to become operational, a conditional licensee shall be issued an adult use dispensing organization license pursuant to Section 15-36 of the Act by the conditional license’s expiration date.” In sum, unlike the prior licensing rounds, here you have 545 days to convert your conditional license to an operating license.
For questions about compliance with Illinois’ cannabis regulations or how Greenspoon Marder LLP can assist, please email Irina Dashevsky, Esq. ([email protected]).