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Tied Applicants Illinois Dispensary

Illinois amended the CRTA to provide for Tied Applicants for Illinois Dispensary Lottery in its new Article 18 of the cannabis law – showing how competitive the industry is and how fast it evolves.

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IDFPR Tie Breaker Rules

IDFPR-Tie-Breaker-Rules

Tied Applicants for Illinois Dispensaries

Illinois amended the Cannabis Regulation and Tax Act (CRTA) to prepare for the award of dispensary licenses that must include a lot of tied application. 

A whole new Article to the CRTA became law in May, 2020, that created a system of random lots to determine what tied applicants win, and what ones lose. 

There are some confusing issues with overlapping ownership that we explain in this webpage. 

For more please watch the video and podcast on Tied Applicants for Illinois Dispensaries. 

 

Tied Applicant

Tied Applicant is now a defined term under the CRTA

What is a tied applicant?

  • Defined Term under Article 18 of CRTA
  • a dispensary applicant that received the same number of points
  • would have been awarded the license but for the other applicants that tied.
  • one or more applicants can be tied.

How are tied applicants selected for a dispensary

A Tied Applicant may become an “eligible applicant” that will be entered into a lottery so that the remaining dispensary licenses are awarded to the randomly selected eligible applicants.

tied applicants

by Lot – random lottery

What if some teams have the same Principal Officers and are Tied Applicants?

Unfortunately, this may disqualify you from being selected for the tie-breaker lottery in the Illinois dispensary rounds. There are 3 restrictions on a “tied applicant” becoming an “eligible applicant”. They are:

  1. A tied applicant is prohibited from becoming an eligible applicant if a principal officer of the tied applicant is a principal officer of more tied applicants than the number of remaining available licenses. For example, if an individual is a principal officer of 4 tied applicants and there are 2 remaining available licenses, no more than 2 of those tied applicants may become eligible applicants.
  2. A tied applicant is prohibited from becoming an eligible applicant if a principal officer of a tied applicant resigns after the conclusion of the scoring process period.
  3. A tied applicant is prohibited from becoming an eligible applicant if, after the conclusion of the declination period identified pursuant to subsection (b), a principal officer of the applicant is a principal officer of more tied applicants than the number of remaining available licenses.

Form to Decline being an “eligible applicant”

F2406

What about multiple ties for the same score?

It seems Illinois will break out those multiple ties randomly.  If 10 teams tie, and presumably all become “eligible applicants” for the lottery – they will be randomly drawn until all the remaining licenses are taken.

multiple tied applicants

Download the New Law for Tied Applicants & Check Out:

 

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Thomas Howard

Thomas Howard

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316 SW Washington Street, Suite 1A
Peoria, Illinois 61602

Phone: (309) 740-4033 || Email:  tom@collateralbase.com


150 S. Wacker Drive, Suite 2400,
Chicago IL, 60606 USA

Phone: 312-741-1009 || Email:  tom@collateralbase.com

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