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Illinois

The 11th state to legalize recreational cannabis, Illinois has a robust cannabis industry and marketplace, thanks to the Compassionate Use of Medical Cannabis Pilot Program Act in 2014, and 2020’s Cannabis Regulation and Tax Act.
*Note:* Illinois is now transitioning to Metrc for regulatory traceability.
Book a demo with Cultivera to see how we make compliance simpler with seed-to-sale Metrc-integrations.

Licensing

Licensing Bodies

Illinois Department of Agriculture Division of Cannabis Regulation

The IDOA Division of Cannabis Regulation is responsible for licensing and regulating cultivation centers, craft growers, infusers, transporters, and Vocational Cannabis Pilot Programs.

Illinois Department of Financial and Professional Regulation

The Illinois Department of Financial and Professional Regulation (IDFPR) is responsible for licensing and regulation of dispensaries, dispensary agents, and agent education providers.

Cannabis Regulation Oversight Office

The CROO coordinates among all agencies involved in the regulation and taxation of Illinois cannabis, while educating businesses and consumers and promoting effective policies that ensure diversity and equity.

License Types

Cultivators & Craft Growers

“Cultivators” and “Cultivation Centers” grow cannabis plants indoors or outdoors, often specializing in strains or breeding new varieties. They must meet state quality and regulatory standards.

“Craft Growers” focus on small-scale cultivation, emphasizing high-quality, artisanal cannabis products and sustainable methods. They grow unique strains and comply with state safety and quality regulations.

Infusers

“Infusers” incorporate cannabis extracts into consumable products like edibles and topicals. They ensure products are dosed accurately, safe, and meet strict state regulations. In other states, these licenses are often referred to as “Processors.”

Testing Laboratories

“Testing Laboratories” verify cannabis products’ purity, potency, and safety, ensuring they are free from contaminants before distribution.

Dispensaries and Retail Stores

“Dispensaries” and “Retail Stores” both refer to businesses that sell cannabis products to consumers, adhering to age verification, purchase limits, and state tracking requirements.

Transporters

Transporters are licensed to transport cannabis products securely from producers to retailers, ensuring compliance with state tracking and transparency standards.

Traceability Requirements

Metrc Track-&-Trace

Previously utilizing BioTrack for the state’s regulatory track-and-trace, this year the industry in Illinois is transitioning to Metrc traceability. As of April 10th, 2025, the state is having all licensees transition to Metrc tracibility based on this timeline.

This means that cannabis business establishments will need to order Radio Frequency Identification (RFID) Tags from Metrc for all cannabis plants and packages, and enter them into Illinois’ required inventory seed-to-sale track and trace system.
Learn more about Metrc traceability tags here.

To reduce the financial burden on cannabis businesses, Illinois pays Metrc for RFID Tags, within certain limits, to ensure the ordering process is in good faith and reflects business needs.

Cultivera software helps Illinois business operators manage their traceability and business operations from seed-to-sale through a bi-directional sync that makes track-and-trace workflows and regulatory compliance simpler at every stage.

Advocacy

Disparity & Availability Study

One of the most diverse legal cannabis industries in the country, Illinois boasts a whopping 59% minority- or women-owned cannabis dispensaries as of 2023, compared to a typical standard around 21% or less, plus more than 60% of Growers, Infusers, and Transporters.

The Cannabis Regulation and Oversight Officer (CROO) recently completed a Disparity and Availability Study (Disparity Study) for the State’s adult use cannabis industry, designed to evaluate discrimination in the state’s industry, and make recommendations for reducing, or eliminating, any identified barriers to entry in the state’s cannabis market.

As of 2024, their findings illustrate how the Illionois legal cannabis industry evolved into the most diverse marketplace in the country through strong social equity provisions and prioirities.

Canna Equity IL Coalition

The Canna Equity Illinois Coalition advocates for justice and equity in the cannabis industry through grassroots organizing, community programs, and advocacy. Since 2019, the Coalition has worked to provide space for members to gather, share experiences, organize, and advocate for cannabis equity and justice while supporting the community.

Chicago NORML

The Chicago branch of NORML works to create dialogs and remove cannabis stigmas through advocacy, social justice, culture, and patient education, working towards social equity in the cannabis industry.

Cannabis Business Association of Illinois

Cannabis Business Association of Illinois (CBAI) represents the statewide voice of Illinois’ cannabis industry. Their work advocates for better patient well-being, safety, equity and inclusion, job creation, community investment, and responsible use. According to their website, the CBAI represents more than 80% of licensed cannabis businesses in Illinois, as well as ancillary businesses supporting the cannabis industry and social equity applicants.

 

Legislation

Cannabis Regulation Tax Act

The Cannabis Regulation Tax Act (410 ILCS 705/1-999) legalized the lawful use of cannabis for persons 21 years and older, and it stipulates that consumers be taxed like alcohol.

Cannabis Control Act

Through the Cannabis Control Act (720 ILCS 550/1 , et seq.) the Illinois General Assembly acknowledged the effects and potential impacts of cannabis use. The act established a fair penalty system for commerical traffickers and large-scale marijuana vendors in the general interest of the welfare of Illinois residents, while providing flexibility in the sentencing discretion of the courts.

Marijuana Equity Licencing Bill (HB 1443)

HB 1443 creates three marijuana lotteries to ensure equity for all persons in minority communities, referred to as social equity applicants.

With this bill, Illinois offers social equity applicants a decent chance to succeed in the industry by getting access to lucrative business locations, while not being subject to rules demanding marijuana dispensaries be at least 1,500 feet apart.

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