Marijuana Business Licensing in Illinois

On January 1, 2020, marijuana will be legal for adult use in Illinois. While residents and neighbors of Illinois may be counting the days, dispensaries and growers are trying to plan for demand.

“…55 existing stores will have to meet the demands of a 13 million-person state with a massive tourist population.” [1]

The current medical cannabis structure serves roughly 70,000 residents. Even if only a quarter of the population decides to partake in the newly legal activity, that’s an additional 3.18 million people. That number doesn’t consider tourists (and/or neighbors to Illinois).

“…our tourism industry welcomes more than 110 million visitors per year, who spend billions of dollars annually.” – Illinois Office of Tourism [2]

What does this mean for entrepreneurs looking to open their own

As a premier partner of Total Harvest Coverage (THC360) we help leading cannabis entrepreneurs and businesses with security plans and integration to stay compliant.

marijuana growing, cultivation, processing or Illinois dispensary business?

Businesses currently operating under a medical marijuana license are going to be able to remain in operation and sell recreational cannabis. These existing businesses are also granted an additional location under their current license.

 

Security Plans & Architectural Planning

Success in the cannabis market depends on a solid business plan & security plan that is designed to maintain compliance, meet regulatory standards and optimize business operations. Leading cannabis companies utilize the Total Harvest Coverage method to plan, grow and scale their business security.


Applications for new dispensaries are due no later than January 1, 2020. Illinois has until May 1, 2020 to either approve or deny an application. The license awarded from this round is conditional or a pre-license. An establishment must then pass inspection and pay all fees to receive their final licensing to sell marijuana product.

“Non-Social Equity Applicants will pay a $5,000 application fee. Should they be awarded a license, the fee for an Adult Use Dispensing Organization License is $60,000 for a two-year license. Social Equity Applicants will pay a $2,500 application fee. Should they be awarded a license, the fee for an Adult Use Dispensing Organization License is $30,000 for a two-year license.” [3]

Applicants should begin collaborating with industry consultants now to ensure construction of the dispensary occurs quickly and efficiently. Detailed plans for every facet of the business are required within the conditional application, and must be adhered to during implementation. This is where industry experts come into play.

KL Security has successfully developed and implemented security measures for multiple marijuana dispensaries and secure cannabis facilities in multiple states. Our security experts are knowledgeable and eager to assist your business in developing a one of a kind plan to best suit your needs, learn more about Security Plans and cannabis facility design 

ArmorStor™ MJ7840D Controlled Substance Vault Door with Day Gate   Our Vault Doors are manufactured to meet GSA Approved Class 5 Ratings and in their native form are used by the US Government for the storage of Classified Information as well as items such as weapons, ammunition, narcotics, etc.  The sale of the standard doors is restricted however, to only the US Government and Military.  GSA now allows us to market the exact same door, without the GSA Approved Label, to the private sector. 

Restricted Access Approved Vaults

Prevent diversion, theft or loss of medical marijuana at a dispensary with UL Class 1 rated vaults. Our modular vaults are a fraction of the cost of a poured concrete vault and are fully scalable to your business growth. These vaults are in place in multiple states for DEA or pharmacy board approved applications.

Access Control & Entry Doors

BR Glass for retail dispensary locations and safety, we have you covered.

Locking entry door barriers for secure rooms and limited access for key employees that can be monitored with video surveillance to meet any potential codes for cannabis dispensaries and retail marijuana locations.

 

TOLL FREE 1-866-867-0306 OR contact@klsecurity.com

SOURCES

[1] Krane, Kris. (2019, June 25). Forbes Magazine. Illinois Legalization Is Historic, But Good Luck Finding Cannabis To Buy. Retrieved from:

https://www.forbes.com/sites/kriskrane/2019/06/25/illinois-legalization-is-historic-but-good-luck-finding-cannabis-to-buy/#4d59bb65e253

[2] https://www2.illinois.gov/dceo/AboutDCEO/Pages/Tourism.aspx

[3] https://www.idfpr.com/FAQ/AUC/FAQ%20-%20Adult%20use%20license%20for%20new%20dispensing%20organizations_.pdf

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice.

All license information found at the website for the Illinois Department of Financial and Professional Regulation: https://www.idfpr.com/profs/adultusecan.asp

 

 

Electronic Records Management for Illinois Marijuana Dispensaries

 

 

 

 

Illinois legislature requires dispensaries in Illinois to maintain security measures to protect both people and product.  One of the requirements for dispensary security is 24/7 video surveillance. Cameras must be rolling at all times and record footage of all entries & exits, parking lots, exterior of building, all vaults, safes, storage areas , and anywhere cannabis is handled in any fashion (sales, disposal, preparation, retail areas, storage, etc.) These cameras must be of substantial quality with the ability for law enforcement to identify vehicle license plates and use facial recognition. These records must be maintained for a minimum of 90 days, and available for review at any time.

All security system equipment and recordings shall be maintained in good working order, in a secure location so as to prevent theft, loss, destruction, or alterations.
Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438

As if this wasn’t an already massive amount of data to store, dispensaries must also electronically maintain records of the following items for a minimum of three years (even in the event the dispensary closes):

(1)  Operating procedures;

(2)  Inventory records, policies, and procedures;

(3)  Security records;

(4)  Audit records;

(5)  Staff training plans and completion documentation;

(6)  Staffing plan; and

(7)  Business records, including but not limited to:

  • (i)  Assets and liabilities;
  • (ii)  Monetary transactions;
  • (iii)  Written or electronic accounts, including bank statements, journals, ledgers, and supporting documents, agreements, checks, invoices, receipts, and vouchers; and
  • (iv)  Any other financial accounts reasonably related to the dispensary operations.
Offering solutions for Business Continuity & Disaster Recovery planning of records management as part of your cannabis security plan and design.

Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438 

These are all just the requirements set in place by the state of Illinois. It is important to also check the local ordinances to review any additional local guidelines, “…it is crucial to understand compliance within the state or states where an organization operates.” Smallwood, Robert F. Managing Electronic Records: Methods, Best Practices, and Technologies, John Wiley & Sons, Incorporated, 2013.

 

Effective electronic record management is vital to the efficient operation of any modern business; “An investment in ERM (Electronic Record Management) is an

ioSafe data storage products are the best brand manufacturer of virtual cloud data to physical endpoint files and complete systems that process, store and archive data and electronic records for Illinois Dispensary and retail marijuana shops.

investment in business process automation and yields document control, document integrity, and security benefits.” Smallwood, Robert F. Managing Electronic Records: Methods, Best Practices, and Technologies, John Wiley & Sons, Incorporated, 2013.

When you’re ready to begin the process of securing your business (cannabis or otherwise), the consultants at KL Security are available to assist. Well versed in government regulations and recent legal mandates, we are prepared to ensure your business will pass requirements.  With sufficient cannabis security planning and programming your facility will be ready for license and compliance

TOLL FREE 1-866-867-0306

contact@klsecurity.com

DEA Rules, security requirements and regulations per the Code of Federal Regulations 21CFR1301.72https://www.klsecurity.com/products/medical-marijuana-dea-storage.html

 

Information has been gathered from sources deemed reliable but not guaranteed and is subject to change without notice. All license information and security measures taken directly from legislation: Cannabis Regulation and Tax Act., 2019 Bill Text IL H.B. 1438