Current through Register Vol. 48, No. 12, March 22, 2024
c) An applicant applying for a
Craft Grower License shall electronically submit the following:
1)
Nonrefundable application fee of
$5,000, unless the applicant is eligible for a fee waiver as a Social
Equity Applicant under Section 7-20 of the Act;
2)
Legal name of the craft
grower;
3)
Proposed physical address of the craft grower;
4)
Name, address, social security
number, and 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;
5)
The details of any administrative or judicial proceeding in which any
of the principal officers or board members of the craft grower:
A)
Pled guilty, were convicted,
fined, or had a registration or license suspended or revoked;
or
B)
Managed or
served on the board of a business or non-profit organization that pled guilty,
was convicted, fined, or had a registration or license suspended or
revoked;
6)
Proposed operating bylaws that include procedures for the oversight of
the craft grower, including the development and implementation of a plant
monitoring system, accurate recordkeeping, staffing plan, and security
plan;
7)
Verification from ISP that all background checks of the prospective
principal officers, board members, and agents of the cannabis business
establishment have been conducted. If ISP has not completed the
background check, then the applicant shall provide written verification that
the request has been submitted to ISP;
8)
A copy of the current local zoning
ordinance or permit and verification that the proposed craft grower is in
compliance with the local zoning rules and distance limitations established by
the local jurisdiction;
9)
Proposed employment practices, in which the 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;
10) A
statement that the applicant can demonstrate experience in or business
practices that promote economic empowerment in Disproportionately Impacted
Areas;
11)
Experience with the cultivation of agricultural or horticultural
products, operating an agriculturally related business, or operating a
horticultural business;
12)
A description of the enclosed,
locked facility where cannabis will be grown, harvested, manufactured,
packaged, or otherwise prepared for distribution to a dispensing organization
or other cannabis business establishment;
13)
A survey of the enclosed, locked
facility, including the space used for cultivation;
14)
Cultivation, processing,
inventory, and packaging plans;
15)
A description of the applicant's
experience with agricultural cultivation techniques and industry
standards;
16)
A
list of any academic degrees, certifications, or relevant experience of all
prospective principal officers, board members, and agents of the related
agricultural or horticultural business;
17)
The identity of every person
having a financial 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;
18)
A plan
describing how the craft grower will address each of the following:
A)
Energy needs, including estimates
of monthly 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;
B)
Water needs, including estimated
water draw and if it has or will adopt a sustainable water use and water
conservation policy; and
C)
Waste management, including if it
has or will adopt a waste reduction policy.
19)
A recycling plan that
addresses each of the following:
A)
Purchaser packaging, including cartridges, that shall
be accepted by the applicant and recycled;
B)
Any recyclable waste generated by
the craft grower facility shall be recycled per applicable State and local
laws, ordinances, and rules; and
C)
Any cannabis waste, liquid waste,
or 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).
20)
A commitment to comply with local
waste provisions. A craft grower facility must remain in compliance with
applicable State and federal environmental requirements, including, but not
limited to:
A)
Storing,
securing, and managing all recyclables and waste, including organic waste
composed of or containing finished cannabis and cannabis-infused products, in
accordance with applicable State and local laws, ordinances, and rules;
and
B)
Disposing
liquid waste containing cannabis or byproducts of cannabis processing in
compliance with all applicable State and federal requirements, including, but
not limited to permits under Title X of the Environmental Protection
Act.
21)
A commitment to a technology standard for resource efficiency of the
craft grower facility:A)
Lighting. The Lighting Power Densities (LPD) 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 Design Lights 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;
B)
HVAC
i)
For cannabis grow operations with
less 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;
ii)
For cannabis grow operations with 6,000 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;
C)
Water application
i)
The craft grower facility commits
to use automated watering systems, including, but not limited to, drip
irrigation and flood tables, to irrigate cannabis crop;
ii)
The craft grower facility commits
to 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;
D)
Filtration. The craft grower
commits that 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;
E)
Reporting energy use and
efficiency; [410 ILCS
705/30-10]
22) If a sole proprietorship, the name,
residence and date of birth of the owner;
23) If a partnership, the names and addresses
of all partners, both general and limited and any partnership or joint venture
documents;
A) For a domestic limited
partnership, a copy of the Certificate of Limited Partnership, and a
Certificate of Good Standing from SOS dated within the last 60 days;
B) For a foreign limited partnership, a
certificate of Good Standing from the state of formation, a copy of the
Certificate of Authority from SOS, and a Certificate of Good Standing from SOS
dated within the last 60 days;
24) If a limited liability partnership, the
names and addresses of all partners, and any partnership or joint venture
documents;
A) For a domestic limited
liability partnership, a copy of the Certificate of Limited Liability
Partnership, and a Certificate of Good Standing from SOS dated within the last
60 days;
B) For a foreign limited
liability partnership, a certificate of Good Standing from the state of
formation, a copy of the Certificate of Authority from SOS, and a Certificate
of Good Standing from SOS dated within the last 60 days;
25) If a corporation based in Illinois, a
copy of the Articles of Incorporation, and a copy of the Certificate of Good
Standing issued by SOS or obtained from the SOS website within the last 60
days. If the corporation is a foreign corporation, a copy of the Articles of
Incorporation, a copy of the Certificate of Good Standing from the state or
country in which the corporation is domiciled, a copy of the Certificate of
Authority from SOS, and a Certificate of Good Standing from SOS dated within
the last 60 days. If using an assumed name (d/b/a), a copy of the assumed name
registration issued by SOS. Additionally, applicants shall include the names
and addresses of all stockholders and directors of the corporation;
26) If a limited liability company:
A) For a domestic limited liability company,
a copy of the Articles of Organization, a copy of the Certificate of Good
Standing issued by SOS or obtained from the SOS website within the last 60
days, and a listing of the members of the limited liability company and his,
her, or its contact information;
B)
For a foreign limited liability company, a copy of the Articles of Organization
and a Certificate of Good Standing from the state of organization, a copy of
the Application for Admission to Transact Business in Illinois, along with a
Certificate of Good Standing issued by SOS, all dated within the last 60
days;
27) If another type
of business entity, the same or similar information, as applicable, to that
listed in subsections (c)(25) and (26);
28) Property Ownership Records
A) If the property is not owned but is
currently leased by the applicant, the applicant shall provide: a copy of the
lease; confirmation of land ownership; identification of any mortgagees and/or
lienholders; a written statement from the property owner and/or landlord,
certifying consent that the applicant may operate a craft grower on the
premises at least through the term of the lease; and, if applicable,
verification of notification by the property owner to any and all mortgagees
and/or perfected lienholders that the property is to be used as a craft grower
at least through the term of the financing, and consent thereto by any
mortgagees and/or perfected lienholders;
B) If the property is not owned or currently
leased by the applicant, the applicant shall provide: a written statement from
the property owner and/or landlord certifying consent that the applicant will
lease or purchase the property for the purpose of operating a craft grower for
at least 5 years; and, if applicable, verification of notification by the
property owner to any and all mortgagees and/or perfected lienholders that the
property is to be used as a craft grower at least through the effective dates
of all agreements, and consent thereto by any mortgagees and/or perfected
lienholders;
C) If the property is
owned by the applicant, the applicant shall provide: confirmation of land
ownership; identification of any and all mortgagees and/or perfected
lienholders; and, if applicable, verification of notification to any and all
mortgagees and/or perfected lienholders that the property is to be used as a
craft grower at least through the expiration of financing, and consent thereto
by any mortgagees and/or perfected lienholders;
29) Applicant shall submit plans and
specifications drawn to scale for the interior of the building. If the building
is not in existence at the time of application, the applicant shall submit a
plot plan and a detailed drawing to scale of the interior and the architect's
drawing of the building to be constructed;
30) Documentation that the individual or
entity filing the application has at least $20,000 in liquid assets. Acceptable
documentation includes a signed statement from an Illinois licensed CPA
attesting to proof of the required amount of liquid assets under the control of
an owner or the entity applying. The statement must be dated within 30 calendar
days before the date the application was submitted;
31) All relevant financial information as set
forth in Section 1300.305;
32) If
any principal officers or board members are currently, or have been previously,
licensed or authorized in another state or jurisdiction to produce, distribute,
or otherwise sell cannabis in any form, the following:
A) A copy of each such licensing or
authorizing document verifying licensure in that state or
jurisdiction;
B) A statement
granting the Department permission to contact the regulatory agency that
granted the license to confirm the information contained in the application;
and
C) If the entity's license or
authorization to conduct business was ever suspended, revoked or otherwise
sanctioned, a copy of documentation so indicating, or a statement that the
applicant was so licensed and was never sanctioned.
33) For a Social Equity Applicant:
A) If applicable, the Social Equity
Applicant's status as an "Illinois resident", as evidenced by incorporation
documents, or, if applying as an individual, at least 2 of the following:
i) a signed lease agreement that includes the
applicant's name;
ii) a property
deed that includes the applicant's name;
iii) school records;
iv) voter registration card;
v) an Illinois driver's license, ID card, or
a Person with a Disability ID card;
vi) a paycheck stub;
vii) a utility bill; or
viii) any other proof of residency or other
information necessary to establish residence.
B) A person must have been domiciled in this
State for a period of 30 days and shall provide evidence of one of the
following:
i) The person or persons owning
and controlling at least 51% of the proposed license have lived in a
Disproportionately Impacted Area for 5 of the preceding 10 years as
demonstrated by, but not limited to, tax filings, voter registrations, leases,
mortgages, paycheck stubs, utility bills, insurance forms, or school records
that include the qualifying principal officers' names on them;
ii) The person or persons owning and
controlling at least 51% of the proposed license have been arrested for,
convicted of, or adjudicated delinquent for any offense made eligible for
expungement by the Act. If the arrest, conviction, or adjudication has been
sealed or expunged, provide records of that action;
iii) The person or persons owning and
controlling at least 51% of the proposed license have had a parent, legal
guardian, child, spouse or dependent, or was a dependent of an individual who,
prior to June 25, 2019, was arrested for, convicted of, or adjudicated
delinquent for any offense made eligible for expungement by the Act. If the
arrest, conviction or adjudication has been sealed or expunged, the applicant
shall provide records of that action. The applicant must also provide evidence
of the relationship between the applicant's principal officer or officers and
the person who was arrested for, convicted of, or adjudicated delinquent for
any offense made eligible for expungement by the Act; or
iv) The applicant employs 10 or more
full-time employees, and that 51% or more of those employees currently reside
in a Disproportionately Impacted Area; have been arrested for, convicted of, or
adjudicated delinquent for any offense that is eligible for expungement under
the Act; or are members of an "impacted family" as that term is defined in the
Act. The applicant must provide evidence as described in this subsection
(c)(33)(B)(iv) for each employee. The applicant shall also provide evidence the
employees were engaging in full time work as of the date the application was
submitted. If the employee information, or employment status of employees,
changes before licenses are awarded, the applicant has a duty to notify the
Department of the change in employee information or status.
34) If the Department
offers bonus points for community engagement, and the applicant desires to
obtain those points, the applicant must submit its plan for community
engagement.
d) The
applicant shall sign a notarized statement certifying that:
1) The craft grower will register with DOR if
the applicant is granted a license;
2) The application is complete and
accurate;
3) The applicant has
actual notice that, notwithstanding any State law:
A) Cannabis is a prohibited Schedule I
controlled substance under federal law;
B) A license is granted only to the extent
provided by the strict requirements of the Act and this Part;
C) Any activity not sanctioned by the Act or
this Part may be a violation of State law;
D) Growing, distributing or possessing
cannabis in any capacity, except through a federally-approved research program,
is a violation of federal law;
E)
Use of cannabis may affect an individual's ability to receive federal licensure
in other areas;
F) Use of cannabis,
in tandem with other conduct, may be a violation of federal law;
G) Possessing a license does not authorize
any person to violate federal law or State law and, other than as set out in
Article 45 of the Act, does not provide any immunity from or affirmative
defense to arrest or prosecution under federal law or State law; and
H) Applicants shall indemnify and hold
harmless the State of Illinois for any and all civil or criminal penalties
resulting from possessing a license; and
4) All of applicant's principal officers
expressly agree to be subject to service of process in Illinois with a current
Illinois address on file with the Department.