(410 ILCS 705/30-5)
Sec. 30-5. Issuance of licenses. (a) The Department of Agriculture shall issue up to 40 craft grower licenses by July 1, 2020. Any person or entity awarded a license pursuant to this subsection shall only hold one craft grower license and may not sell that license until after December 21, 2021. (b) By December 21, 2021, the Department of Agriculture shall issue up to 60 additional craft grower licenses. Any person or entity awarded a license pursuant to this subsection shall not hold more than 2 craft grower licenses. The person or entity awarded a license pursuant to this subsection or subsection (a) of this Section may sell its craft grower license subject to the restrictions of this Act or as determined by administrative rule. Prior to issuing such licenses, the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) of Section 5-45 of the Illinois Administrative Procedure Act, to modify or raise the number of craft grower licenses and modify or change the licensing application process. The General Assembly finds that the adoption of rules to regulate cannabis use is deemed an emergency and necessary for the public interest, safety, and welfare. In determining whether to exercise the authority granted by this subsection, the Department of Agriculture must consider the following factors: (1) the percentage of cannabis sales occurring in |
| Illinois not in the regulated market using data from the Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, Illinois Behavioral Risk Factor Surveillance System, and tourism data from the Illinois Office of Tourism to ascertain total cannabis consumption in Illinois compared to the amount of sales in licensed dispensing organizations;
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(2) whether there is an adequate supply of cannabis
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| and cannabis-infused products to serve registered medical cannabis patients;
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(3) whether there is an adequate supply of cannabis
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| and cannabis-infused products to serve purchasers;
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(4) whether there is an oversupply of cannabis in
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| Illinois leading to trafficking of cannabis to states where the sale of cannabis is not permitted by law;
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(5) population increases or shifts;
(6) the density of craft growers in any area of the
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(7) perceived security risks of increasing the number
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| or location of craft growers;
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(8) the past safety record of craft growers;
(9) the Department of Agriculture's capacity to
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| appropriately regulate additional licensees;
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(10) (blank); and
(11) any other criteria the Department of Agriculture
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(c) After January 1, 2022, the Department of Agriculture may by rule modify or raise the number of craft grower licenses and modify or change the licensing application process. At no time may the number of craft grower licenses exceed 150. Any person or entity awarded a license pursuant to this subsection shall not hold more than 3 craft grower licenses. A person or entity awarded a license pursuant to this subsection or subsection (a) or subsection (b) of this Section may sell its craft grower license or licenses subject to the restrictions of this Act or as determined by administrative rule.
(d) Upon the completion of the disparity and availability study pertaining to craft growers by the Cannabis Regulation Oversight Officer pursuant to subsection (e) of Section 5-45, the Department may modify or change the licensing application process to reduce or eliminate barriers from and remedy evidence of discrimination identified in the disparity and availability study.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)
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(410 ILCS 705/30-10)
Sec. 30-10. Application. (a) When applying for a license, the applicant shall electronically submit the following in such form as the Department of Agriculture may direct: (1) the nonrefundable application fee of $5,000 to be |
| deposited into the Cannabis Regulation Fund, or another amount as the Department of Agriculture may set by rule after January 1, 2021;
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(2) the legal name of the craft grower;
(3) the proposed physical address of the craft grower;
(4) the name, address, social security number, and
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| date of birth of each principal officer and board member of the craft grower; each principal officer and board member shall be at least 21 years of age;
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(5) the details of any administrative or judicial
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| proceeding in which any of the principal officers or board members of the craft grower (i) pled guilty, were convicted, were fined, or had a registration or license suspended or revoked or (ii) managed or served on the board of a business or non-profit organization that pled guilty, was convicted, was fined, or had a registration or license suspended or revoked;
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(6) proposed operating bylaws that include procedures
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| for the oversight of the craft grower, including the development and implementation of a plant monitoring system, accurate recordkeeping, staffing plan, and security plan approved by the Illinois State Police that are in accordance with the rules issued by the Department of Agriculture under this Act; a physical inventory shall be performed of all plants and on a weekly basis by the craft grower;
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(7) verification from the Illinois State Police that
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| all background checks of the prospective principal officers, board members, and agents of the cannabis business establishment have been conducted;
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(8) a copy of the current local zoning ordinance or
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| permit and verification that the proposed craft grower is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;
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(9) proposed employment practices, in which the
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| applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;
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(10) whether an applicant can demonstrate experience
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| in or business practices that promote economic empowerment in Disproportionately Impacted Areas;
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(11) experience with the cultivation of agricultural
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| or horticultural products, operating an agriculturally related business, or operating a horticultural business;
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(12) a description of the enclosed, locked facility
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| where cannabis will be grown, harvested, manufactured, packaged, or otherwise prepared for distribution to a dispensing organization or other cannabis business establishment;
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(13) a survey of the enclosed, locked facility,
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| including the space used for cultivation;
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(14) cultivation, processing, inventory, and
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(15) a description of the applicant's experience with
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| agricultural cultivation techniques and industry standards;
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(16) a list of any academic degrees, certifications,
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| or relevant experience of all prospective principal officers, board members, and agents of the related business;
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(17) the identity of every person having a financial
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| or voting interest of 5% or greater in the craft grower operation, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person;
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(18) a plan describing how the craft grower will
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| address each of the following:
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(i) energy needs, including estimates of monthly
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| electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation, and if it has or will adopt a sustainable energy use and energy conservation policy;
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(ii) water needs, including estimated water draw
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| and if it has or will adopt a sustainable water use and water conservation policy; and
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(iii) waste management, including if it has or
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| will adopt a waste reduction policy;
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(19) a recycling plan:
(A) Purchaser packaging, including cartridges,
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| shall be accepted by the applicant and recycled.
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(B) Any recyclable waste generated by the craft
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| grower facility shall be recycled per applicable State and local laws, ordinances, and rules.
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(C) Any cannabis waste, liquid waste, or
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| hazardous waste shall be disposed of in accordance with 8 Ill. Adm. Code 1000.460, except, to the greatest extent feasible, all cannabis plant waste will be rendered unusable by grinding and incorporating the cannabis plant waste with compostable mixed waste to be disposed of in accordance with 8 Ill. Adm. Code 1000.460(g)(1);
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(20) a commitment to comply with local waste
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| provisions: a craft grower facility must remain in compliance with applicable State and federal environmental requirements, including, but not limited to:
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(A) storing, securing, and managing all
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| recyclables and waste, including organic waste composed of or containing finished cannabis and cannabis products, in accordance with applicable State and local laws, ordinances, and rules; and
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(B) disposing liquid waste containing cannabis or
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| byproducts of cannabis processing in compliance with all applicable State and federal requirements, including, but not limited to, the cannabis cultivation facility's permits under Title X of the Environmental Protection Act;
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(21) a commitment to a technology standard for
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| resource efficiency of the craft grower facility.
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(A) A craft grower facility commits to use
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| resources efficiently, including energy and water. For the following, a cannabis cultivation facility commits to meet or exceed the technology standard identified in paragraphs (i), (ii), (iii), and (iv), which may be modified by rule:
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(i) lighting systems, including light bulbs;
(ii) HVAC system;
(iii) water application system to the crop;
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(iv) filtration system for removing
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| contaminants from wastewater.
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(B) Lighting. The Lighting Power Densities (LPD)
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| for cultivation space commits to not exceed an average of 36 watts per gross square foot of active and growing space canopy, or all installed lighting technology shall meet a photosynthetic photon efficacy (PPE) of no less than 2.2 micromoles per joule fixture and shall be featured on the DesignLights Consortium (DLC) Horticultural Specification Qualified Products List (QPL). In the event that DLC requirement for minimum efficacy exceeds 2.2 micromoles per joule fixture, that PPE shall become the new standard.
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(C) HVAC.
(i) For cannabis grow operations with less
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| than 6,000 square feet of canopy, the licensee commits that all HVAC units will be high-efficiency ductless split HVAC units, or other more energy efficient equipment.
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(ii) For cannabis grow operations with 6,000
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| square feet of canopy or more, the licensee commits that all HVAC units will be variable refrigerant flow HVAC units, or other more energy efficient equipment.
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(D) Water application.
(i) The craft grower facility commits to use
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| automated watering systems, including, but not limited to, drip irrigation and flood tables, to irrigate cannabis crop.
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(ii) The craft grower facility commits to
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| measure runoff from watering events and report this volume in its water usage plan, and that on average, watering events shall have no more than 20% of runoff of water.
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(E) Filtration. The craft grower commits that
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| HVAC condensate, dehumidification water, excess runoff, and other wastewater produced by the craft grower facility shall be captured and filtered to the best of the facility's ability to achieve the quality needed to be reused in subsequent watering rounds.
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(F) Reporting energy use and efficiency as
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(22) any other information required by rule.
(b) Applicants must submit all required information, including the information required in Section 30-15, to the Department of Agriculture. Failure by an applicant to submit all required information may result in the application being disqualified.
(c) If the Department of Agriculture receives an application with missing information, the Department of Agriculture may issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to resubmit the incomplete information. Applications that are still incomplete after this opportunity to cure will not be scored and will be disqualified.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)
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(410 ILCS 705/30-15)
Sec. 30-15. Scoring applications. (a) The Department of Agriculture shall by rule develop a system to score craft grower applications to administratively rank applications based on the clarity, organization, and quality of the applicant's responses to required information. Applicants shall be awarded points based on the following categories: (1) Suitability of the proposed facility; (2) Suitability of the employee training plan; (3) Security and recordkeeping; (4) Cultivation plan; (5) Product safety and labeling plan; (6) Business plan; (7) The applicant's status as a Social Equity |
| Applicant, which shall constitute no less than 20% of total available points;
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(8) Labor and employment practices, which shall
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| constitute no less than 2% of total available points;
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(9) Environmental plan as described in paragraphs
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| (18), (19), (20), and (21) of subsection (a) of Section 30-10;
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(10) The applicant is 51% or more owned and
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| controlled by an individual or individuals who have been an Illinois resident for the past 5 years as proved by tax records or 2 of the following:
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(A) a signed lease agreement that includes the
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(B) a property deed that includes the applicant's
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(C) school records;
(D) a voter registration card;
(E) an Illinois driver's license, an Illinois
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| Identification Card, or an Illinois Person with a Disability Identification Card;
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(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other
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| information necessary to establish residence as provided by rule;
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(11) The applicant is 51% or more controlled and
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| owned by an individual or individuals who meet the qualifications of a veteran as defined in Section 45-57 of the Illinois Procurement Code;
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(12) A diversity plan that includes a narrative of
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| not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity; and
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(13) Any other criteria the Department of Agriculture
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| may set by rule for points.
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(b) The Department may also award up to 2 bonus points for the applicant's plan to engage with the community. The applicant may demonstrate a desire to engage with its community by participating in one or more of, but not limited to, the following actions: (i) establishment of an incubator program designed to increase participation in the cannabis industry by persons who would qualify as Social Equity Applicants; (ii) providing financial assistance to substance abuse treatment centers; (iii) educating children and teens about the potential harms of cannabis use; or (iv) other measures demonstrating a commitment to the applicant's community. Bonus points will only be awarded if the Department receives applications that receive an equal score.
(c) Should the applicant be awarded a craft grower license, the information and plans that an applicant provided in its application, including any plans submitted for the acquiring of bonus points, shall be a mandatory condition of the license. Any variation from or failure to perform such plans may result in discipline, including the revocation or nonrenewal of a license.
(d) Should the applicant be awarded a craft grower license, the applicant shall pay a prorated fee of $40,000 prior to receiving the license, to be deposited into the Cannabis Regulation Fund. The Department of Agriculture may by rule adjust the fee in this Section after January 1, 2021.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
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