The Illinois Department of Financial & Professional Regulation (IDFPR) and Illinois Department of Revenue (IDOR) proposed amendments to the Cannabis Regulation and Tax Act that address restrictions on dispensary locations and seizure hearing waivers.

IDFPR proposed an amendment addressing a provision that requires new (conditional) dispensing organization licensees to be located at least 1,500 feet away from any existing dispensing organization, unless a statutory exception applies. The rulemaking states that an “existing dispensing organization” means an organization that was issued an adult-use license before the conditional licensee received its conditional license. If the proposed location of the conditional licensee satisfies the 1,500-foot limitation, the licensee will be permitted to operate a dispensary when its adult use license is issued.

IDOR proposed amendments to the cannabis purchaser excise tax clarify that in cases where DOR has seized cannabis or tobacco products or vending devices and would normally hold a hearing to determine whether the retailer/distributor was properly licensed, a hearing is not required if the owner of the property from which the items were seized and the person in whose possession the items were found (if other than the owner) sign a waiver and consent to forfeiture.

Amendments additionally specify how distributors (including secondary distributors) and manufacturers must record and report tobacco product sales, purchases, and inventory; reflect statutory penalties for violations and grounds for revoking, cancelling or suspending licenses; allow duly authorized IDOR employees to conduct arrests and seizures without a warrant if they witness a violation or discover contraband items in person; and allow persons affected by a licensing penalty to protest the action.

For questions, requests for copies, or comments on the IDOR rulemakings through Jan. 2, 2026, contact Kimberly Rossini by email at IDOR, 101 W. Jefferson St., Springfield IL 62794, by phone at 217-782-7055, and by email at REV.GCO@illinois.gov. For more Illinois cannabis industry news, subscribe to Illinois News Joint’s newsletter here.

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