When Can Medical Marijuana Dispensaries Face License Discipline?

 Posted on June 07, 2024 in Professional License Defense

Since the state of Illinois legalized marijuana for medical and recreational use, many business owners have taken advantage of the available opportunities and opened dispensaries and other types of marijuana-related businesses. While these businesses can be lucrative opportunities, they face a number of restrictions and requirements.

Understanding the issues that could lead to discipline to a medical marijuana business license can be crucial. For those who face disciplinary action, an experienced attorney can provide legal help and representation, working to resolve these issues and ensure that a business can continue operating.

Grounds for Disciplinary Action for Marijuana Businesses

The Cannabis Regulation and Tax Act details the requirements that apply to dispensaries that provide medical marijuana to approved patients and recreational cannabis products to adults. It also lists the grounds for discipline that may result in the denial of a license, a refusal to renew an existing license, a reprimand, the suspension or revocation of a license, or other forms of disciplinary action. These grounds include:

• Factual misstatements: When applying for a license, a business owner will need to provide detailed information about themselves, their business, other stakeholders, and key personnel. Purposeful misstatements of facts, such as falsifying information on a license application, could lead to disciplinary action.

• Discrepancies in audits: The Illinois Department of Financial and Professional Regulation (IDFPR) may conduct audits of a business, reviewing records, policies, and procedures to ensure that it is complying with its legal requirements. Discrepancies discovered during these audits, including those related to inventory of cannabis products or financial records, could lead to discipline.

• Unprofessional conduct: If a business engages in conduct that is likely to deceive the public, defraud customers, or cause other forms of harm to customers or others, it may face discipline.

• Incompetence: If a business owner or key personnel have demonstrated that they cannot use reasonable judgment or skill when providing products or services to customers, the business may face disciplinary action. These issues may be related to addictions to drugs or alcohol or other concerns about professionalism and competency.

• Failure to provide required training: Cannabis businesses must meet specific requirements to ensure that all employees are properly trained. If this training is not provided within the appropriate timeframes, discipline may be warranted.

• Failure to prevent theft or loss of marijuana: A dispensary must implement the proper security measures to ensure that cannabis products are not used inappropriately. Allowing products to be stolen, diverted from their approved uses, or lost without following the proper disposal procedures could lead to discipline.

• Violations of the Cannabis Regulation and Tax Act: Illinois law places a number of restrictions on the activities of marijuana businesses, and violations of these restrictions could result in disciplinary action. For example, a dispensary is not allowed to sell or serve alcohol, deliver cannabis products to people’s homes or other locations, sell marijuana through drive-through windows or vending machines, operate without video surveillance, or be open without at least two staff members working.

Contact Our Chicago Medical Marijuana Licensing Lawyer

Because of the complex rules and requirements that apply to dispensaries and other marijuana-related businesses, there are many situations where business owners may need to take steps to respond to disciplinary action. At The Law Offices of Joseph J. Bogdan, Inc., our Illinois marijuana dispensary license defense attorney can assist with these issues, helping a business avoid discipline that may affect its ability to continue operating. To learn how we can assist with issues related to medical marijuana licenses, contact our firm at 630-310-1267 and arrange a free consultation.