Current through Register Vol. 48, No. 38, September 20, 2024
a) In addition to any individuals identified
in the dispensing organization's by-laws as principal officers, the following
individuals are considered principal officers of a dispensing organization and
shall register and be approved by the Department:
1) Those individuals who meet the definition
of a "principal officer" as defined in the Act and this Part, however, an
individual does not need to register as a Principal Officer solely because of
that person's close relationship or familial tie to the holder of a Financial
Interest in a dispensing organization;
2) Managers of a management services
contractor who have entered into an agreement with a dispensing organization
under Section 1291.210(f)(4). Managers include but are not limited to board
members and corporate officers.
3)
If a corporation, the officers of the corporation;
4) If a partnership, the partners;
5) If a limited liability company, the
members and managers of the limited liability company;
6) If an association or cooperative, the
members of the association or cooperative;
7) If a joint venture, the individuals who
signed the joint venture agreement; and
8) If a business organization other than the
types listed in subsections (a)(1) through (5), the members of the business
organization.
9) If a trust has any
interest in a dispensing organization license, the dispensing organization must
disclose to the Department the trustee and all beneficiaries of and
participants in the trust, on a form or manner prescribed by the Department.
Trust beneficiaries and participants may be required to register as principal
officers if they meet the definition of a principal officer. The Department may
not approve a trust if any trust beneficiary or participant is a person that is
otherwise prohibited from having an ownership interest in the entity.
b) Communications with the
Department. The Department will only communicate with the principal officer's
email address the Department has on record, or with a third-party so long as a
third-party authorization form is submitted. In order to change its contact
information, a principal officer must submit a request to the Department from
the email address the Department has on record. If the current email address is
inaccessible, the principal officer must submit a certification attesting to
the inaccessibility and requesting the change.
c) Principal Officer Fees. The fees for a
principal officer are as follows. All fees are nonrefundable. All monies
collected under the Act shall be deposited in the Cannabis Regulation Fund in
the State Treasury.
1) The application fee for
a principal officer agent identification card is $100. This fee includes the
physical card.
2) The annual
renewal fee for a principal officer agent identification card is
$100.
3) The late fee for renewal
of a principal officer agent identification card is $50.
4) The fee for the issuance of a replacement
principal officer agent identification card is $50.
5) The fee to restore a terminated principal
officer agent identification card is $100.
d) A principal officer is not required to
complete a responsible vendor program if the principal officer does not
otherwise meet the requirements in Section
1291.20(a).
e) Principal Officer Application. A principal
officer application shall be submitted by the dispensing organization in a form
or manner provided by the Department. Principal officer applications shall be
submitted for all new principal officers and at any time an application is
needed pursuant to Section 1291.211. Principal officer applications shall
include, but not be limited to, the following:
1) The name and license number of the
dispensing organization employing or associated with the principal officer, and
the address of the dispensary;
2)
Unless the background check exception under subsection (f) applies, Department
background check authorizations in compliance with
410 ILCS
705/5-20. These authorizations include fingerprint
consent forms and livescan vendor receipt demonstrating that the principal
officer applicant has applied for a fingerprint-based criminal history records
check. Applicants shall only submit valid fingerprints capable of being
retrieved by the Department;
3) A
copy of the applicant's valid driver's license or a State-issued
identification;
4) Electronic
picture of applicant taken within 30 days of the application;
5) The applicant's social security
number;
6) The application
fee;
7) A certification that the
individual is tax compliant pursuant to
410 ILCS
705/45-20.
8) A certification that the individual is
compliant with all other aspects of Article 2105 of the Civil Administrative
Code of Illinois [20 ILCS 2105/2105]; and
9) Any additional information requested by
the Department in the verification process.
f) For all changes of ownership or sales of a
license pursuant to subsection 1291.211, each proposed principal officer must
also submit to the Department background check authorizations as part of its
principal officer applications in compliance with Section
1291.30(e).
1) The Department may waive the requirement
for fingerprint consent forms and livescan vendor receipt if the underlying
transaction is a transfer, as that term is defined in this Part.
2) The Department may also waive the
requirement for fingerprint consent forms and livescan vendor receipt if the
principal officers have submitted principal officer applications within the
previous 12 months of the closing date of the change of ownership or the sale
of the license.
g)
Principal Officer Renewals and Restoration
1)
All principal officer agent identification cards shall expire one year from the
date they are issued. The holder of a card may renew the card 45 calendar days
preceding the expiration date by submitting a renewal application and paying
the required renewal fee.
2) A
principal officer agent seeking restoration of a license that has terminated or
expired shall have the license restored upon request to the Department and
payment of fee required.
3) At any
time after the successful completion of any term of suspension, placement on
probationary status or other disciplinary action taken by the Department with
regards to any agent license, the licensee may file a petition for restoration
in accordance with 68 Ill. Adm. Code
1110.30.
h) Principal Officer Duties and Prohibitions
1)
A principal officer not in
compliance with the requirements of the Act shall be removed
from his or her position with the dispensing organization or shall otherwise
terminate his or her affiliation. Failure to do so may subject the dispensing
organization to discipline, suspension, or revocation of its license by the
Department in accordance with the Act and
20 ILCS
2105/2105-130. (Section 15-50(h) of the Act)
2) All individuals registered as a principal
officer are subject to Sections 1291.60 and 1291.70.
3) Principal officers are prohibited from
assigning their principal officer license.
4) Principal officers are prohibited from
using their principal officer license as collateral to secure an existing or
prospective debt.
i)
Principal Officer License Limitations
1) A
person or entity shall not be a principal officer, have a financial interest,
or hold any legal, equitable, ownership, or beneficial interest, directly or
indirectly, in more than 10 dispensing organizations. (See Section 15-36(c) of
the Act.)
2) The Department will
issue a Notice of Intent to Issue a Suspension Order to all dispensing
organizations held by any person or entity or entities that the Department
determines is a principal officer and/or holds a financial interest in more
than 10 Adult Use Dispensing Organization Licenses, as well as the individual
principal officer, in violation of Section 15-36(c) of the Act. The notice
shall specify the reason for the intended action and notify the dispensing
organization and the principal officer that they have 20 calendar days after
the date the notice is mailed or emailed to the address of record, to present
the Department with a written response contesting the intended action. The
Department will rescind the Notice of Intent to Issue a Suspension Order if the
dispensing organization and the principal officer demonstrate, and include
documentation that supports, one of the following scenarios:
A) The person or entity has been incorrectly
identified as a principal officer of more than 10 dispensing organizations
and/or having a financial interest in more than 10 dispensing organizations;
or
B) The person or entity is no
longer a principal officer of more than 10 dispensing organizations and/or no
longer has financial interest in more than 10 dispensing organizations, as
supported by proof of resignation letters and current tables of organization,
ownership, and control.
3) If the Department does not receive a
written response that establishes one of the grounds provided in subsection
(i)(2) within 20 calendar days after the date the notice was issued, the
Director shall issue an order suspending the license of each dispensing
organization in which the person or entity is a principal officer and/or has a
financial interest.
4) The
dispensing organizations may file for restoration of its license as provided in
Section 1291.90 once the person or entity is no longer a principal officer or
has a financial interest in more than 10 dispensing organizations.
