The Illinois Department of Agriculture (IDOA) and Division of Cannabis Regulations listened to concerns and fielded multiple questions today during a public meeting involving stakeholders. The “diametrically opposed views” primarily revolved around the new ruling that would allow infusers to perform extraction and produce concentrate and pre-roll products. Other concerns and suggestions pertained to logistics for transporters, licensing fees, lab standards, security cameras, and input of hemp and minor cannabinoids.

The disagreements about allowing infusers to perform extraction and produce concentrate and pre-roll products divided infusers and craft growers. Overall, stakeholders for infusers argued that the cost of distillate “across the board” was too expensive and unsustainable costs for family-owned and minority businesses. Craft grow stakeholders argued that it was not the lack of oil that had increased the cost but rather the lack of biomass to convert into oil. Craft grow representatives also argued that this rule change was neither legal nor the original intent of the Cannabis Regulation and Tax Act.

The public meeting began and ended with David Lakeman, Cannabis Division Manager at the Illinois Department of Agriculture, and Sam McGee, IDOA Cannabis Division Counsel, reiterating that this meeting was not the end of the process but the beginning of a dialogue and exchange to better collaboratively resolve any conflicts.

“Even within this limited scope, we have already heard today that there are some fairly diametrically opposed views that we want to navigate, and we want to do that correctly and make sure we can actually deliver on making some of these changes that will better allow the industry to grow,” said Lakeman. “We truly want to work with everyone to make sure we are hitting the areas we need to address urgent.”

The public responses came via online and in person from the John R. Block Illinois State Fairgrounds Building Auditorium, located at 801 E. Sangamon Ave. in Springfield. Scott Redman, Illinois Independent Craft Growers Association Founder, fervently opposed the infusers performing extraction and producing concentrate and pre-roll products.

“I know there’s no support in the industry for this beyond infusers, but I don’t think there’s any legal support for it,” said Redman. “The issue we see on the ground is a lack of biomass. There is not a lack of capacity . . . You have a growing problem, not an extraction problem.”

David Nadolski, Minority Shareholder of Culinary Cannabis Company, thanked IDOA for several positive steps, including the renewal and reduction in fees, but argued that the costs for oil was “not sustainable for small manufacturers.”

“I would urge the department to consider a pathway for infusers to form a limited in-house extraction, especially for internal use for formulation, not wholesale distribution,” Nadolski said. “Allowing that capability under strict safety and testing standards would help us lower cost, stabilize pricing, and innovate more quickly.”

Allison Dries, Owner and Co-Founder of Krown, the first Illinois infuser to become operational, also thanked IDOA for the proposed changes for infusers. Dries referenced Illinois Disparity Studies that stated twice there was a lack of oil for infusers.

“It’s absolutely something critical for infusers success,” said Dries. “We have only been able to purchase our input from craft growers or cultivators, but the problem is how much they’re charging. We are paying between $8,000-$12,000 per liter which is just not a sustainable business model.”

Dan Schmalshof of Prairie State Cannabis said the proposed changes for infusers was not in the “spirit of the agreement” that craft growers could touch the flower and infusers could not.

“I’m very frustrated to be in this situation because nothing we’ve done as Prairie State Cannabis dealing with this program has been easy,” Schmalshof said. “And it should be easy . . . When you (Lakeman) said this is collaborative, I hope and pray that you mean that. I think it’s meant, but I think it’s taken way too long to get here, and that cost me money and my family money.”

Representatives for transporters argued for transfer sights, short-term storage, and shared space. Mario Austin from Secure Transport argued that the new proposed rules for transporters were “measurable progress toward helping our industry finally begin to take advantage of our license.” Austin also recommended Illinois increased the number of transfer sites to at least five, which would allow for breakdown the state to create statewide logistics, reduces long hauls, alleviate efficiencies, and driver safety concerns.

Licensing fees were another topic brought up more than a few times. Most comments agreed for the proposed rules that would reduce or paused most licensing fees and renewals. A few licensees suggested the state retroactively refund the older licensees who paid the original price for fees. Another topic included the ability to have motion sensors for all property and facility security cameras, standardized lab testing, and input of hemp and minor cannabinoids.

The earliest Second Notice for these proposed rules is Nov. 17, 2025. The prosed rules then would be reviewed by Joint Committee on Administrative Rules (JCAR) and become effective after publication in Illinois Register. For questions concerning the proposed rulemaking or the public hearing: contact Sam McGee, IDOA at 217-558-3741 or by email at Samuel.McGee@illinois.gov

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