Illinois Governor Signs Bill Waiving Cannabis Transporter Fees

Illinois Gov. JB Pritzker signed a bill into law Dec. 8 that waives the annual licensing fees for existing cannabis transporters for three years beginning Jan. 1, 2024.

The legislation, Senate Bill 1559, also restricts the Illinois Department of Agriculture from making available or accepting new license applications for cannabis transporters until January 2027.

After the Illinois House passed the bill in a unanimous vote Nov. 9, and the Senate concurred in a 47-2 vote that same day, Pritzker said the legislation was another step toward guaranteeing the state serves as the home for an equitable, legal cannabis system that “does not disregard the injustices” of prohibition.

“The [multi]-year moratorium on new transporter licenses will allow the current, smaller independent transporters to secure contracts and grow their businesses,” Pritzker said in a press release. “License holders will also have a [multi]-year holiday from paying annual fees to further aid these small businesses as the industry develops.”

In addition, the new law provides that upon completion of a disparity and availability study published by the Illinois Cannabis Regulation Oversight Office (CROO), the Department of Agriculture may modify or change the licensing application process to reduce or eliminate barriers and remedy any discrimination identified in the study, according to the bill.

The study aims to collect and analyze data for a report about whether discrimination exists in the Illinois cannabis industry, where adult-use sales began Jan. 1, 2020, according to CROO.

The office commissioned Illinois-based data analytics firm Nerevu Group to conduct the disparity study for each cannabis license type issued by the state. The group will also assess the availability, utilization and accessibility of minority- and women-owned businesses in the state’s cannabis industry.

With the power to modify or change the licensing application process following the study, the Department of Agriculture is required to make cannabis business applications available every Jan. 7 (or the succeeding business day) starting in 2027, according to S.B. 1559. And the department must keep the application period open until March 15 each year.

“Since day one of the fight for legalization, I have stressed that this accomplishment is meaningless without reinvestment and repair for the communities left behind by the war on drugs,” Pritzker said. “Small businesses, whether transporters, growers, or dispensaries, must be able to succeed if we wish to achieve that equity. This bill is another step on the ongoing path towards achieving that goal.”