* IDFPR…

Today, the Cannabis Regulation Oversight Office (CROO) published the Disparity and Availability Study for adult use cannabis licenses in Illinois finding that Illinois currently has the most diverse cannabis industry in the nation. The study, as required by the Cannabis Regulation and Tax Act (CRTA), examined 559 adult use cannabis licenses issued by the State to more than 400 businesses during the study period, which spanned from the start of adult use cannabis sales, January 1, 2020, through January 31, 2023.

The disparity study found the CRTA successfully resulted in license ownership diversity for each license type with new licenses over the study period. Over the study period, 59% of dispensary licenses were issued to minority- or women-owned businesses (compared to 21% for the medical cannabis market). For all licenses issued by the State, that number jumps to 60%. Additionally, minority- or women-owned businesses held 63% of craft grower, 61% of infuser, and 74% of transporter licenses. Additionally, the study found nearly 84% of the State’s Direct Forgivable Loans went to minority- or women-owned businesses. According to this independent review, these demographics make Illinois the most diverse cannabis industry in the nation. ​ Since 2023, IDFPR has conducted another Social Equity Criteria Lottery and issued 55 more conditional licenses, all going to social equity designated businesses.

* Recommendations from the study…

To cultivate a more inclusive and equitable industry we recommend the following:

• Broaden availability of financing: Findings from our focus group conversations with cannabis business holders and applicants across license types, coupled with our survey analysis, suggest a need for additional revenue sources for the Cannabis Business Development Fund to improve sustainability and increase access to capital for more businesses.

• Unify data systems and additional data management: Interviews with industry leaders indicate a need for a centralized data system to ensure the state’s licensing, enforcement, and case management systems are compatible and unified to improve tracking, monitoring, and supporting cannabis businesses across the entire industry.

• Consolidate regulatory structure: Based on our assessment of the quantitative and
qualitative analyses, we recommend centralizing the five main regulatory agencies’ cannabis units into one, unified department with clear accountability to the governor and public. Consolidation would allow for a more seamless and coordinated approach to operationalize the application process and business regulatory practices in support of all extant and future cannabis license holders in an equitable and just manner. […]

• Additional administrative recommendations:

o Allow SEAs [Social Equity Applicants] to obtain a social equity business designation after receiving a cannabis license. This will allow for continued support for SEAs after they become licensed, provided they maintain their status as a social equity business.

o Implement a no-change affidavit for license renewals: simplify the renewal process for businesses that have no changes in ownership or management.

o Implement a sliding scale for licensing renewal fees based on sales: set renewal fees based on sales to improve equity in license renewal.

o Implement a third-party transport mandate: codify a statutory change for transportation so that businesses can only transport up to a certain amount of their inventory transfers, like the rule for dispensaries to have no more than 40% of their inventory from one source.

o Allow infusers to apply for processing licenses: allow infusing organizations to apply for the ability to process and extract cannabis products from raw materials and contribute to an adequate supply of distillate.

* Forbes…

Illinois has reached a significant milestone in marijuana sales, hitting the $1 billion mark so far this year. […]

Governor Pritzker said in a statement that “the increase in total adult-use marijuana sales, combined with the policies my administration is implementing to support communities ravaged by the War on Drugs, highlights how this emerging industry is helping us set a national standard in equity and economic justice. Growing sales in 2024 means marijuana tax revenue will continue to play a major role in righting decades of wrongs in the state’s criminal justice system.” […]

Marijuana sales have generated over $244 million in tax revenue, which the state has allocated to grants for youth development, economic development, and violence prevention programs. This funding also enabled the establishment of the Illinois Cannabis Social Equity Loan program. This initiative aims to support communities that have been disproportionately affected by marijuana-related criminal justice issues by linking them to the legal marijuana industry. Through this social equity program, the state has distributed nearly $22 million in forgivable loans to craft growers, transporters, and infusers.

* Marijuana Moment…

Tax revenue from cannabis sales has now put more than $244 million toward grants to encourage economic development, violence prevention and youth development in areas disproportionately impacted by cannabis arrests and imprisonment, the state said on Wednesday. And through its Cannabis Social Equity Loan Program, “almost $22 million in forgivable loans has been issued to social equity craft growers, transporters, and infusers.”

More of the loans are expected to be awarded soon following an April deadline in the latest round. The state also says more full dispensary licenses will be awarded “to conditional licensees selected in the 2022 and 2023 lotteries as they meet the requirements for full licensure.”

“It is imperative barriers are removed to ensure workforces and industries reflect the diversity of the population who calls Illinois home,” said Mario Treto Jr., secretary of the Illinois Department of Financial and Professional Regulation. “We are already seeing the results of our efforts to accomplish this, and I am excited to see what the future holds for the cannabis industry across Illinois.”

* Lt. Governor Juliana Stratton…

“When we legalized cannabis in Illinois, we didn’t just want to create a new industry – we wanted to right some wrongs. This report shows we’re doing just that. We’re seeing people who’ve been left out of opportunities for too long now owning businesses and creating jobs in their communities. It’s not perfect yet, but it’s progress we can be proud of. Every new shop that opens, every loan that helps a small business get started, that’s another step towards making things right. We’re showing the rest of the country that when you put fairness first, everyone wins.”

* More…

* SJ-R | Missouri-based marijuana dispensary opens first Illinois location in Springfield: The location has four owners who operate together. Co-owner Mit Patell said the choice to move to Springfield was an easy one, in part because of other products being sold in the city. “We felt like a lot of dispensaries here were not to-par with what we had to offer,” Patel said. “Our scale and our products we have… we carry a lot more than other dispensaries around here.”

…Adding… Press release…

Today, the Pritzker Administration announced that SEquity Ventures (LLC dba The Dispensary Champaign) became the 100th social equity cannabis dispensary to open its doors in Illinois. The Illinois Department of Financial and Professional Regulation (IDFPR) issued a full adult use cannabis dispensary license to The Dispensary Champaign on June 6, 2024, who applied for and was selected in the Social Equity Criteria Lottery (SECL) and met the lottery’s criteria.

“From day one of legal cannabis sales in Illinois, my administration has been committed to making sure we don’t sacrifice a fair, equitable opportunity to join the industry – while also undoing decades of wrongs in the failed War on Drugs – just for the economic gains,” said Governor JB Pritzker. “More than three years later, we’ve consistently learned and made our industry more accessible, while also seeing strong, consistent year-over-year revenue growth.”

The Dispensary Champaign celebrated this major milestone with a ribbon cutting ceremony at their new storefront located at 1826 Glen Park Drive, Champaign, IL. The ceremony was attended by IDFPR Secretary Mario Treto, Jr., Cannabis Regulation Oversight Officer Erin Johnson, and other industry leaders.