Illinois MMJ Grow License Challenged

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

An applicant that lost out on its bid to cultivate medical cannabis in Illinois is fighting the decision to award a permit to another group, which could usher in a wave of challenges to the licensing process.

Shiloh Agronomics LLC claims that Shelby County Community Services Inc., which was awarded a cultivation license in southern Illinois, is ineligible to grow marijuana because it’s a not-for-profit operation and therefore cannot violate federal law.

Shelby County Community Services helps developmentally disabled people by giving them jobs at its plastic bag and plate manufacturing plants. It hopes to do the same with the cultivation site.

Ironically, the organization also counsels substance abusers.

Shiloh – founded by a farm family, including former a former county board chairman and sheriff – has asked the Illinois attorney general to revoke the license, a move prior to pursuing the matter in court.

The challenge comes just a week after Illinois Gov. Bruce Rauner awarded licenses before full background checks were done by state police, which didn’t have authority to use the FBI database. That issue has since been resolved and background checks are moving forward.