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Cannabis Business Law News

We cover marijuana regulation in US federal government, the 50 states, local city and county governments, and internationally. We write for professional MMJ industry executives, investors, and employers in cultivation, dispensary, extraction, and packaging. We also post information for physicians, healthcare, law enforcement, municipal, zoning, and economic development authorities.

Formerly devoted to Illinois’ Medical Cannabis Pilot Program, our scope is broadened to include Nevada, Massachusetts, Washington, New York, Canada, EU, UK, China and more. This site is managed by Vallerius Group LLC, a professional services company specializing in regulatory compliance, communications, and intelligent strategy and problem solving for companies entering legalized cannabis markets.

This website is not intended for end consumers, children, or patients with debilitating medical conditions. Information is intended for a professional audience. We do not provide legal advice. Advertisements are directed at an industry audience and other professionals.

IL State Police Districts

IL State Police Districts

Illinois Surety Bond and Insurance

Illinois regulations require cultivation centers and dispensaries to show escrow or surety bond shortly after receiving license.

Gallagher’s entry into medical cannabis industries is huge. The company is one of the largest, most reliable surety bond providers in the world. They make it easier to get a surety bond and better insurance coverage.

Work in Illinois Medical Cannabis

Licenses for cultivation centers and dispensaries have not yet been awarded by the State of Illinois, hence no companies have begun hiring. Most positions will begin hiring several weeks after the award of licenses. This means interviewing and hiring is unlikely to take place before February/March.

Vallerius Recruitment Partners is building a database of candidates for employment at Illinois cultivation centers and dispensaries. You can submit your resume by e-mail if you would like a recruiter to try to help place you in one of these jobs when they do finally open.

Our Top News Articles

The Compassionate Use of Medical Cannabis Pilot Program Act

Illinois’ medical marijuana law was signed by Governor Quinn on August 1, 2013 and became effective January 1, 2014. The law draws from the best standards and practices of 20 other states who preceded Illinois in allowing residents to use cannabis as medicine under the direction of a physician.

Main points of the law:

  • Cardholding patients with “debilitating medical conditions” may purchase and use cannabis medicine.
  • Physicians must comply with procedures for certifying patients to use cannabis medicine.
  • After receiving a physician’s written certification, a patient must apply for a registration card through Illinois’ Department of Public Health.
  • A patient may designate one “caregiver” to assist with purchasing and administering cannabis medicine.
  • Rules for safe use and possession keep cannabis away from public places and traffic.
  • Private businesses have the right to restrict or prohibit cannabis on their property.
  • Employers have the right to make and enforce reasonable policies that restrict or prohibit cannabis at work.
  • Patients may use (but not smoke) cannabis medicine at health care facilities, including hospitals, nursing homes, hospice care centers, and long-term care facilities.
  • A new intrastate industry is anchored by two new types of businesses:
    • Up to 21 cultivation centers for growing cannabis plants and manufacturing medicines, including serums, tinctures, topicals, and edible baked goods such as cookies and brownies.
    • Up to 60 dispensaries for selling cannabis products to patients and caregivers.
  • Applies a 7% cultivation privilege tax on all sales from a cultivation center to dispensary.

Implementing the law through administrative agencies

genetic strains marijuana clonesBeginning January 1, four agencies of Illinois’ government began the process of adopting regulations to govern activities under the Compassionate Use of Medical Cannabis Pilot Program Act. Following a public commentary period and necessary First Notice and Second Notice procedural formalities, final versions of regulations were certified by the Joint Committee on Administrative Rules (JCAR) on July 15, 2014.

1. Illinois Department of Public Health: Regulations for Compassionate Use of Medical Cannabis Patient Registry (77 Ill. Adm. Code 946)

  • Defines elements of the patient-physician relationship that must exist before a physician can issue a written certification.
  • Special rules apply to veterans and VA hospitals in lieu of a physician’s written certification.
  • Explains the process for registering as a patient or caregiver.
  • Contains mechanisms to ensure patient information is kept confidentially by the Health Department and dispensaries.
  • Includes a petition and review process through which the Health Department may consider expanding the list of debilitating medical conditions.
  • Contains rules giving the Health Department powers to regulate and inspect infused products and edibles at licensed cultivation centers.

2. Illinois Department of Agriculture: Regulations for Compassionate Use of Medical Cannabis Pilot Program (8 Ill. Adm. Code 1000)

  • Sets technical rules for the safe and efficient operation of “cultivation centers”– closely regulated facilities for growing cannabis plants and manufacturing medicines and edibles derived from cannabis.
  • Spatial requirements prohibit a cultivation center from locating within 2500 feet of residential zones, schools, and child care facilities.
  • Requires extensive security measures, including comprehensive video surveillance, alarm systems, smart layout design, appropriate locks, and more.
  • Requires extensive inventory and recordkeeping measures, including a “cannabis plant monitoring system” that can monitor nutrient inputs and plant growth (from seed to sale).
  • Requires that samples of all harvested cannabis be tested by an independent, state-licensed laboratory to determine the proportion of cannabinoids and to detect the presence of mold, fungus, bacteria, and other contaminants.
  • Sets rules for the safe packaging and labeling of cannabis medicine.
  • Sets rules for the conduct of agents and employees of a cultivation center.
  • Sets marketing and advertising rules for cultivation centers.
  • Contains the rules for the competitive application process and the scoring criteria which shall be used to distinguish the relative strengths of competing applicants.

3. Illinois Department of Financial and Professional Regulation (DFPR): Rules for Administration of the Compassionate Use of Medical Cannabis Pilot Program (68 Ill. Adm. Code 1290)

  • Sets technical rues for the safe and efficient sale of cannabis medicines to card carrying patients and caregivers.
  • Spatial requirements prohibit a dispensary from locating in a residential zone or within 1000 feet of schools or child care facilities.
  • Sets rules to protect the confidentiality of patient information.
  • Requires clear, logical demarcation between limited access areas and restricted access areas.
  • Sets rules for the conduct of agents and employees of a dispensary.
  • Sets rules for effective inventory management.
  • Sets marketing and advertising rules for dispensaries.
  • Contains the rules for the competitive application process and the scoring criteria which shall be used to distinguish the relative strengths of competing applicants.

4. Illinois Department of Revenue: Retailers’ Occupation Tax (86 Ill. Adm. Code 130)

  • Cannabis products are classified as “prescription and nonprescription medicines and drugs,” so that dispensaries must pay tax of 1% under the Retailers’ Occupation Tax.
  • Cannabis paraphernalia is subject to the general merchandise rate of 6.25%.

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