7th Circuit Court of Appeals
Case Name: Juan Finch, Jr. v. Mario Treto, Jr.
Case No.: 22-2050
Officials: Sykes, Chief Judge, and Ripple and Kirsch, Circuit Judges.
Focus: Cannabis Dispensary Licensing
In 2019, the Illinois Cannabis Regulation Act was enacted, legalizing the recreational use of cannabis and instituting a licensing system for cannabis dispensaries. The initial round of license applications concluded in 2020, and by mid-2021, the Department had issued 185 licenses through a lottery system. However, the issuance of these licenses was halted due to legal disputes in state courts.
In 2022, the Department introduced a new point-based system for a second batch of licenses, which strongly favored individuals who had long-standing residency in Illinois. The plaintiffs, who were not residents of Illinois but were interested in investing in cannabis dispensaries in the state, took legal action in March 2022. They challenged the residency requirements under the dormant Commerce Clause and sought a preliminary injunction to stop the issuance of the 2021 licenses and the ongoing process for the 2022 licenses.
Initially, the district court rejected their motion for a preliminary injunction, a decision that was subsequently upheld by the Seventh Circuit. This denial of the injunction allowed the Department to