CHICAGO, Ill. (WAND)- Pritzker announces three lotteries to distribute 185 licenses for the operation of adult-use cannabis dispensaries.
The three lotteries will be held throughout July and August.
With over 200 people across the state qualified to receive Craft Grow, Infuser, and Transporter licenses, this will be the first set of licenses awarded under the Cannabis Regulation and Tax Act (CRTA).
67 percent of those eligible to receive craft grow, infuser and transportation licenses identify as non-white, and 100 percent are qualified social equity applicants.
Pritzker also signed HB 1443, establishing additional avenues to include more eligible social equity applicants in the new cannabis industry.
"Over the past century, the failed war on drugs has destroyed families, filled prisons with nonviolent offenders, and disproportionately disrupted Black and brown communities. Legalizing adult-use cannabis brought about an important change, and this latest piece of legislation helps move us even closer to our goal of establishing a cannabis industry in Illinois that doesn't shy away from the pain caused by the war on drugs but instead centers equity and community reinvestment as the key to moving forward," said Governor JB Pritzker. "I would like to thank Representative Ford and Leader Lightford for their partnership, unwavering commitment to serving the people of Illinois, and hard work on getting this legislation across the finish line."
"Almost all states that have legalized cannabis have done so in a way that produced a multi-billion-dollar industry dominated by a handful of corporations and individuals that lack diversity. But Illinois is attempting to produce a cannabis industry that actually looks like Illinois," said Toi Hutchinson, Senior Advisor on Cannabis Control. "What we're attempting to accomplish is hard to do and takes time to accomplish, but we have an obligation to ensure that it gets as strong a start as possible. These upcoming dispensary license lotteries are a result of the administration's continued commitment to working hand in hand with the General Assembly, community groups, and other stakeholders to put equity first as we take these initial steps in building an inclusive industry."
The Illinois State Lottery will conduct a total of three lotteries for adult-use dispensary license applicants this year. The lotteries will be held on:
- July 29th: the lottery for qualifying applicants who received a score of at least 85% of the 250 application points will be held for the 55 licenses in that category.
- August 5th: the lottery for social equity justice-involved applicants who received a score of at least 85% of the 250 application points and are located in a disproportionately impacted area or have an eligible conviction will be held for the 55 available licenses in that category.
- August 19th: the final lottery will be held for top-scoring, tied applicants for the original 75 licenses outlined in the CRTA.
Like any other lottery, all cannabis-related license lotteries will be a completely blind process managed by the Illinois State Lottery. All draws will be automated via a computer program, and the Lottery will run multiple quality assurance checks before delivering the final results of each lottery to IDFPR.
The results of each lottery will be available by 5 p.m. on the day of the draws.
Under the CRTA, the Illinois Department of Financial and Professional Regulation (IDFPR) is permitted to issue 75 conditional adult-use cannabis dispensary licenses.
HB 1443 was introduced by Representative LaShawn Ford and Leader Lightford and supported by the administration, expands opportunities by creating two new lotteries.
- A social equity justice-involved lottery for 55 additional licenses to be awarded to:
- those who have received a score of at least 85% on their application, or 213 out of a total of 250 possible points; and
- live in a disproportionately impacted area, has an eligible cannabis conviction, or has a family member with an eligible cannabis conviction;
- A lottery for an additional 55 licenses for applicants who had a score of at least 85% on their application. In total, 185 dispensary licenses will be determined through the lottery process.
"Today, we continue our march forward in the implementation of the most equitable cannabis program in the country," said Mario Treto, Jr., Acting Secretary of the Illinois Department of Financial and Professional Regulation. "This announcement reflects the tireless work by the Pritzker Administration, lawmakers, and advocates to ensure the next generation of cannabis dispensary licensees are qualified applicants who reflect the diversity that truly makes this state great. We look forward to this undertaking and are ready to take these next steps."
HB 1443 is effective immediately.
The Illinois Department of Agriculture, responsible for the licensing process for craft grows, infuser, and transporter licenses, issued notifications to applicants who are eligible to receive one of 213 total licenses: 40 craft grow, 32 infuser, and 141 transporter.
Craft grow and infuser applicants will have ten business days to confirm their interest and submit the required fee and documents.
Transporter applicants will have until February 2022 to confirm their interest.
These applicants will become public upon confirmation of their submission of the required documentation and fees.
"The Department is pleased to notify eligible applicants who will soon be joining the Illinois Adult-Use Cannabis market," said Illinois Department of Agriculture Director Jerry Costello. "I am proud that this new generation of licensed cannabis industry leaders in education, cultivation, manufacturing, and transportation is one of the most diverse and equity-focused in any adult-use legal state. I look forward to continuing to work with our licensees, our partners in the Legislature and at other state agencies, and the community to improve our process as we move forward together."
Under state law, applicants for craft grow, infuser, and transporter licenses were not required to report demographic data such as race, gender, or age; however, 80% of applicants opted to self-report.
Of the applicants who received a notification from IDOA that they are eligible for one of the 213 available licenses, 67% total reported being non-white. In regard to majority ownership, 98 applicants reported being Black owned, 19 Latinx, and 34 Black woman owned.
Additionally, eligible higher education institutions will now be able to offer and develop curriculum for training a new generation of cannabis industry professionals and leaders under the Cannabis Community College Vocational Pilot Program.
Under the CRTA, IDOA was restricted to issuing licenses for the program to a maximum of eight community colleges statewide. HB 1443 removes those restrictions and grants the department the ability to grant licenses to as many community colleges that are eligible.
Seven inaugural recipients of the licenses have been announced, with additional recipients planning to be announced soon.
The seven community college license recipients include Kishwaukee College, Oakton College, Olive-Harvey College, Shawnee Community College, Southwestern Illinois College, Triton College, and Wilbur Wright College.
This innovative program allows students to work towards achieving a Career in Cannabis Certificate, which includes the ability to work with, study, and grow live cannabis plants to prepare for a career in the legal cannabis industry and instruction in the legal compliance of the cannabis business industry, among other topics.
The program is a vital part of the growing cannabis industry in Illinois and will provide a path to the thousands of new jobs being created right here in Illinois for community college graduates in communities around the state.
The Illinois Department of Commerce and Economic Opportunity (DCEO) has established the Social Equity Loan (SEL) program to provide financial assistance for social equity licensees and to help increase access to capital for prospective social equity cannabis entrepreneurs over time.
The SEL program will provide flexible low-interest loans to assist with the expenses of starting and operating a cannabis business establishment.
Loan terms will be determined on a case-by-case basis, with a general repayment term of over five years. To be eligible for the loan, a cannabis business establishment must receive licensure and meet the qualifications of a social equity applicant.
Funding will be prioritized for applicants demonstrating the greatest adverse impact from the failed war on drugs. Licensees offered conditional acceptance into the Loan Program will be referred to lender partners for a full review of the loan application for funding consideration.
"Under Governor Pritzker's leadership, Illinois is working to help communities disproportionately impacted by the war on drugs compete in the newly regulated cannabis market by providing technical assistance and helping cannabis entrepreneurs access capital," said DCEO Acting Director Sylvia Garcia. "Through the cannabis social equity loan program, DCEO is working with lending partners to bring both state and private dollars to the table and maximize the impact of our cannabis social equity fund for the communities that need it most."
To administer the loan program, DCEO is partnering with two lenders, Good Tree Capital and Credit Union 1, who will work alongside the state to provide low-interest loan agreements for qualifying SEA applicants. Loans may be made available up to the following amounts:
- Transporter: $100,000
- Adult-Use Dispensing Organization: $500,000
- Infuser: $500,000
- Cultivator: $1,000,000
Through its partnership with lending partners, the state anticipates up to $34 million in loans could be made available in the first year, and the state will work with partners to enhance the loan program to ensure that it is a sustainable source of financial support for the social equity community.
"The signing of HB1443 moves us closer to making the promise of equity in cannabis a reality in a state where the entire existing industry is overwhelmingly white. I was proud to partner with State Representative LaShawn Ford in passing HB1443 which is the result of dozens of meetings with stakeholders and applicants who demanded that their voices be heard," said State Senator Kimberly Lightford (D-Maywood). "This industry has the potential to change lives, but only if we keep the principles of equity at the center of every decision we make."
In addition to expanding access to dispensary licenses, HB 1443 expands access for medical cannabis users by removing restrictions on where medical card holders can buy medicine.
The legislation also adds eight additional community members to the Restore, Reinvest, Renew (R3) Board, and gives early approval adult use dispensaries the ability to relocate within the same medical district 90 days after the legislation is signed, among other provisions.
“We applaud our home state of Illinois for taking meaningful steps to bring more social equity applicants into the cannabis industry and address the damage perpetuated by the failed War on Drugs,” said Ben Kovler, Founder and CEO of Green Thumb Industries. “Cannabis is the next great American growth story, and the new licenses in Illinois will provide critical opportunities to generate new wealth. The momentum for equitable access is growing, and we hope this becomes the blueprint for all states moving forward.”
