Illinois MMJ Rules Would Require $500K On Hand

Medical marijuana entrepreneurs in Illinois better start saving their dollars.

Regulators there have proposed a set of rules for dispensaries and grow operations that would require business owners to have around half a million dollars on hand.

Under the rules, dispensary owners would pay a $5,000 nonrefundable application fee, a $30,000 permit fee and a yearly renewal fee of $25,000. And owners would have to show proof of at least $400,000 in assets before even starting their business.

For growers, the proposed fee structure is even more. The state’s Department of Agriculture has proposed a $25,000 nonrefundable application fee, a $200,000 approval permit fee and a yearly renewal fee of $100,000. And growers would need to show $250,000 in liquid assets in order to receive a permit.

The permit structure was part of a 71-page document of proposed regulations for medical marijuana businesses that was released on Friday. Illinois officials have yet to finalize the rules. Regulators there have set aside 22 licenses for growing centers and 60 licenses for dispensaries.

If the financial rules are adopted, they are sure to cut down on the number of applications for these licenses.

The rules come two weeks after regulators released similarly restrictive rules for which patients would be considered for medical marijuana.

7 comments on “Illinois MMJ Rules Would Require $500K On Hand
  1. D.J. on

    So the State of Illinois wants to see a liquid cash worth of $500,000., plz is that so the businesses have the ability to payoff inspectors, state officials, same old, same old for the State if Illinois. Let’s just roll back the hands of time again, and call it Prohibition, kickbacks and bribes. That should be the business model for doing any business in Illinois. Having cash sit on the sidelines does what ! Who makes this stuff up in Springfield ? Really shame on you law makers and money changer’s the sick patients of the state need comfort, time is not on there side. Why not worry about keeping industry and bring in jobs instead of continuing to bankroll the state. You baffons.

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  2. tony on

    what a joke. the lawmakers in illinois are in dreamland and dont understand economics. they are also under the false elusion that if your in the marijuana business your making millions. not true at all. they have no conception of the start up cost of a producer. into the millions if done right. i’d love to see not one application in they’re mail box. what will they do then?

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  3. Windy City on

    …Illinois seems to be trying to appease some voting base, but I think as time passes, access to MMJ will be relaxed to the point that the legislators will no longer fear repercussions from the voters as the majority will not vote for those opposed to positive laws that will help those that need the medication. This, I think, will happen rather quickly and quietly…

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  4. Fire Chief on

    The $400,000 liquid assets is totally reasonable. It keeps every Tom, Dick, and Harry from applying and delaying the process further. There are going to be problems, set backs, lawsuits, lost crops, security issues, etc. The liquid cash on hand WILL be necessary, especially because the state has created a monopoly… The cultivators MUST succeed, and it will take cash on hand to do so.

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  5. JuiceMan on

    Over 180 Massachusetts applicants paid close to the same fees. Only 20 non-profits ! have been somewhat approved. Lets see how things heat up in New England. Patients need access and caregivers are helping NOW !

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  6. Bob on

    This went Illinoistupid and is a real disappointment. The initial language called for all entities to be not-for-profit but that somehow fell out of the final bill. Anyone who thinks they can recoup the fees much less the investment must be drunk. One year of this 4 year sunsetting legislation is essentially already lost. I’m betting anyone with any numbers sense stays way out of this business. Any takers?

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