The State of Cannabis Legislation & Licensing: Illinois, Indiana, Kentucky, Michigan, Ohio

The following is a list of marijuana legislation and cannabis business licensing in Illinois, Indiana, Kentucky, Michigan, and Ohio, as of January 6, 2020. 

State by state, legislation is changing in the cannabis business. Licensing regulations also vary and can often be a moving target. As of late 2018, industrial hemp is federally legal in the United States. Consider also The Secure and Fair Enforcement (SAFE) Banking Act, a federal bipartisan bill in the works aimed to protect banks and their employees from liability for federal prosecution when servicing cannabis companies. This act has passed the House and is awaiting Senate review since September 26, 2019. Below is a compiled listing of marijuana legislation and licensing for the states of Illinois, Indiana, Kentucky, Michigan, and Ohio, as of January 2020.

Illinois Cannabis Legislation & Licensing

Cannabis is legal for both medical and recreational use in Illinois. In 2019, Illinois became the first state in the nation to legalize recreational sales by an act of the state legislature, as previous states had legalized by voter initiatives. Recreational marijuana use legalized started on January 1, 2020. On that day, over $3.2 million in legal sales were recorded, a historic number. The new law also allows for expungement of past cannabis-related convictions, for which an estimated 700,000 Illinoisans. This process is expected to be completed by 2025. 

Licensing is currently closed. Between December 10, 2019 and January 2, 2020 applications were accepted for cultivation facilities, craft growers, processors, stores (called dispensing organizations) and transporters. The state awarded licenses to 75 dispensaries. By December 2021, Illinois plans to issue additional licenses for 110 dispensaries, 60 craft growers and 60 processors. No entity or individual could hold an interest in more than three cultivation centers or 10 stores.

Craft Grower License: $40,000 nonrefundable application fee, $100,000 license fee, and $40,000 annual registration fee. 

Cultivation License: $30,000 nonrefundable application fee, and $100,000 annual registration/renewal fee.

Processor License: $5,000 nonrefundable application fee, and $20,000 annual registration/renewal fee.

Conditional Dispensing Organization License: $5,000 nonrefundable application fee, and $60,000 annual registration/renewal fee.

Dispensary License: $30,000 nonrefundable application fee, and $60,000 annual registration/renewal fee.

Transporter License: $5,000 nonrefundable application fee, and $10,000 annual registration/renewal fee.

Indiana Cannabis Business Licensing

Cannabis is illegal for any purpose, however, the possession and sale of CBD was legalized for any use in 2018, as long as it comes from industrialized hemp, is at least 5% cannabidiol, and does not contain more than 0.3% THC. Recent legislation legalized hemp farming and processing in the state. A license is required to grow, handle, or research hemp. Those applying must have a criminal record clean of drug-related misdemeanors or felonies for ten years, and minimum square footage or acreage is required but yet to be determined.

Kentucky Cannabis Business Licensing

Cannabis is illegal in Kentucky for any purpose, however, the possession and sale of non-psychoactive CBD is legalized. On January 9, 2019, House Bill 136 was introduced and aims to legalize medical cannabis. It went to the Judiciary Committee on February 6, 2019, and was reported favorably in March. As of March 12th, an amendment was filed.

Ohio Cannabis Business Licensing

Cannabis is legal for medical use in Ohio. It is illegal for recreational use but possession of up to 100 grams is decriminalized. Cultivator licensing fees are non-refundable and divided into two levels, which include application fees, initial license fees, and annual license renewal fees: Level I – $400,000 & Level II – $40,000. Currently, the Board of Pharmacy is no longer accepting additional applications for licensed dispensaries.

Michigan Cannabis Business Licensing

Cannabis is legal for both medical and recreational use in Michigan. The law went into effect on December 6, 2018, and the first dispensaries opened to the public on December 1, 2019. Persons aged 21 and over are allowed to possess up to 2.5 ounces of cannabis in public, up to 10 ounces at home, and cultivate up to 12 plants at home.  

Licensing is open. Fees are listed below and limits are not set for licenses issued.

Class A Grower (up to 100 plants): $6,000 nonrefundable application fee, $4,000 initial licensure fee, and a renewal fee of $3,000 for the bottom 33%, $4,000 for the middle 33%, $5,000 for the top 33%. Class B Grower (up to 500 plants): $6,000 nonrefundable application fee, $8,000 initial licensure fee, and a renewal fee of $6,000 for the bottom 33%, $8,000 for the middle 33%, $10,000 for the top 33%. Class C Grower (up to 2,000 plants): $6,000 nonrefundable application fee, $40,000 initial licensure fee, and a renewal fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%. Excess Grower (holds 5 stacked Class C grower licenses): $6,000 nonrefundable application fee, $40,000 initial licensure fee, and a renewal fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%.

Processor: $6,000 nonrefundable application, $40,000 initial licensure fee, and a renewal fee of $30,000 for the bottom 33%, $40,000 for the middle 33%, $50,000 for the top 33%.

Retailer: $6,000 nonrefundable application, $25,000 initial licensure fee, and a renewal fee of $20,000 for the bottom 33%, $25,000 for the middle 33%, $30,000 for the top 33%.

Microbusiness (cultivate not more than 150 plants; process and package marijuana): $6,000 nonrefundable application, $8,000 initial licensure fee, and a renewal fee of $6,000 for the bottom 33%, $8,000 for the middle 33%, $10,000 for the top 33%.

Transporter: $6,000 nonrefundable application, $25,000 initial licensure fee, and a renewal fee of $20,000 for the bottom 33%, $25,000 for the middle 33%, $30,000 for the top 33%.

Safety compliance facility (receives marijuana from a marijuana facility and tests it): $6,000 nonrefundable application, $25,000 initial licensure fee, and a renewal fee of $20,000 for the bottom 33%, $250,000 for the middle 33%, $30,000 for the top 33%.

Designated consumption establishment: $6,000 nonrefundable application, $1,000 initial licensure fee, and a renewal fee of $1,000.

Event organizer: $6,000 nonrefundable application, $1,000 initial licensure fee, and a renewal fee of $1,000.

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Interested in other states? Learn more about Wisconsin, Iowa, Missouri and Minnesota.

Cannabis Business Licensing | Illinois, Indiana, Kentucky, Michigan, Ohio