§1300.102. Application for Conditional Adult Use Cultivation Center License  


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  • a)         A Conditional Adult Use Cultivation Center License (CAUCCL) shall be obtained for each facility prior to commencement of any production activities.  The license shall, along with any other certificate, business license, or other authorization required to conduct production activities, be posted in a conspicuous place within the facility.

     

    b)         The Department will accept applications for CAUCCLs for 14 calendar days after the date indicated on the Department's website as the commencement date for accepting applications.

     

    1)         Submissions shall be considered as submitted on the date on which they are postmarked or, if delivered in person during regular business hours, on the date on which they are so delivered or, if sent electronically, on the date received by the Department if received on or before 5 p.m. Central Time.  If received electronically after 5 p.m., they will be considered received on the next business day.

     

    2)         Submissions received after the 14-day period, or by a means other than required in this subsection (b), shall be returned to the applicant.

     

    3)         Notification of the availability of applications, instructions for completion and submission of applications, and application forms will be posted on the Department's website at www.agr.state.il.us/.  Application forms will be made available online at that website.

     

    c)         The license application shall be submitted on the forms provided by the Department.  The forms will include instructions for their completion and submission.  The application will reflect the information required of applicants by the Act and this Part.  The instructions on the application will reflect the total maximum number of points that can be awarded for each required criteria, measure and bonus point category listed in Section 1300.105(b).  The instructions/application will also identify the total minimum number of points necessary from the required criteria and measures to be eligible for consideration of the bonus point categories.  All applications will be reviewed and points awarded based upon the same point system in a fair and unbiased manner.  If all materials, documentations, fees and information required by the application form are not submitted, the application shall be returned to the applicant along with a deficiency notice from the Department.  The applicant shall then have 10 calendar days from the date of the deficiency notice to resubmit the application in its entirety.  Applications that are still incomplete after this opportunity to cure will not be scored and will be returned to the applicant.  [410 ILCS 705/20-15(c)] Once submitted, the required fee will not be returned.  Upon receipt of an application deemed to be complete, the Department will engage in no further communication with the applicant until after the selection process is completed.

     

    d)         An applicant applying for a CAUCCL shall submit, in duplicate, the following:

     

    1)         The legal name of the cultivation center;

     

    2)         The proposed physical address of the cultivation center;

     

    3)         A description of the enclosed, locked facility where cannabis will be grown, harvested, manufactured, processed, packaged, or otherwise prepared for distribution to a dispensing organization;

     

    4)         The name, address, social security number, and date of birth of each principal officer and board member of the cultivation center; 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 cultivation center:

     

    A)        Pled guilty or 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 or was convicted, fined, or had a registration or license suspended or revoked;

     

    6)         Cultivation, processing, inventory, and packaging plans;

     

    7)         Proposed operating by-laws (Operation and Management Practices Plan) that include procedures for the oversight of the cultivation center, development and implementation of a plant monitoring system, cannabis container tracking system, accurate record keeping, staffing plan, and security plan reviewed by ISP that are in accordance with the rules issued by the Department under the Act.  A physical inventory shall be performed of all plants and cannabis containers on a weekly basis.  ISP may utilize the services of a private security contractor licensed by DFPR to assist with performing a security plan review;

     

    8)         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;

     

    9)         A statement demonstrating experience in or business practices that promote economic empowerment in Disproportionately Impacted Areas;

     

    10)         A statement demonstrating experience with the cultivation of agricultural or horticultural products, operating an agriculturally related business, or operating a horticultural business;

     

    11)         Any academic degrees, certifications, or relevant experience with related businesses; [410 ILCS 705/20-15]

     

    12)         The identity of every person, association, trust, partnership, other entity, or corporation having any direct or indirect pecuniary interest in the cultivation center operation with respect to which the registration is sought.  If the disclosed entity is a trust, the application shall disclose the names and addresses of the beneficiaries; (Section 85 of the Compassionate Use of Medical Cannabis Program Act)

     

    13)         If a sole proprietorship, the name, residence and date of birth of the owner;

     

    14)         If a partnership, the names and addresses of all partners, both general and limited (Section 85 of the Compassionate Use of Medical Cannabis Program Act) 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;

     

    15)        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;

     

    16)        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 (Section 85 of the Compassionate Use of Medical Cannabis Program Act);

     

    17)        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 their 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;

     

    18)        If another type of business entity, the same or similar information, as applicable, to that listed in this subsection (d);

     

    19)        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 verification that the request has been submitted to ISP;

     

    20)        A copy of the current local zoning ordinance or permit and verification that the proposed cultivation center is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;

     

    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 cultivation center on the premises; 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 cultivation center, and consent to that use 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 cultivation center; 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 cultivation center, 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 cultivation center, and consent to that use by any mortgagees and/or perfected lienholders;

     

    21)        A non-refundable application fee;

     

    22)        A survey of the enclosed, locked facility, including the space used for cultivation;

     

    23)        A map of the cultivation center.  The map must clearly demonstrate that the proposed cultivation center is not located within 1,500 feet of another cultivation center or craft grower;

     

    24)        A plot plan of the cultivation center drawn to a reasonable scale.  If the cultivation center building is in existence at the time of the application, the 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;

     

    25)        Documentation acceptable to the Department that the individual or entity filing the application has at least $100,000 in liquid assets.  Documentation acceptable to the Department 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;

     

    26)        Documentation acceptable to the Department that the individual or entity filing the application will be able to obtain insurance sufficient to indemnify and hold harmless the State and its officers and employees;

     

    27)        All relevant financial information set forth in Section 1300.103;

     

    28)        If any principal officers or board members are currently, or have previously been, licensed or authorized in another state or jurisdiction to produce or otherwise deal in the distribution of cannabis in any form, the following:

     

    A)        A copy of each licensing/authorizing document verifying licensure in that state or jurisdiction;

     

    B)        A statement granting permission to contact the regulatory agency that granted the license to confirm the information contained in the application; and

     

    C)        If the license/authorization or application was ever denied, suspended, revoked or otherwise sanctioned, a copy of documentation so indicating, or a statement that the applicant was so licensed and was never sanctioned;

     

    29)        A plan describing how the cultivation center 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;

     

    30)        A diversity plan that includes a narrative of 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;

     

    31)        The applicant's recycling plan describing the following commitments:

     

    A)        Purchaser packaging, including cartridges, shall be accepted by the applicant and recycled;

     

    B)        Any recyclable waste generated 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 1300.840, 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 1300.840;

     

    32)       A statement describing the applicant's commitment to comply with local waste provisions.  A cultivation 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 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 (Permits);

     

    33)       A commitment to use resources efficiently, including energy and water.

     

    A)        Lighting

    The Lighting Power Densities (LPD) for cultivation space does 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)          A commitment to use automated watering systems, including, but not limited to, drip irrigation and flood tables, to irrigate cannabis crop;

     

    ii)         A commitment 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. A commitment that HVAC condensate, dehumidification water, excess runoff, and other wastewater produced 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; [410 ILCS 705/20-15]

     

    34)       If applicable, the applicant's status as a Social Equity Applicant, as demonstrated by:

     

    A)        Evidence of the applicant's status as an "Illinois resident" as demonstrated 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 the State for a period of 30 days to be an "Illinois resident" as used in the application; and one of the following: 

     

    i)          Evidence 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)         Evidence 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, the applicant shall provide records of that action; or

     

    iii)        Evidence the person or persons owning and controlling at least 51% of the proposed license has 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)        Evidence that the applicant employs 10 or more full-time employees and evidence 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 of the required status 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 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.

     

    e)         The applicant shall sign a notarized statement certifying that:

     

    1)         The cultivation center 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)        Participation in the program is licensed 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 or State licensure in other areas;

     

    F)         Use of cannabis, in tandem with other conduct, may be a violation of State or federal law;

     

    G)        Participation in the program 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 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 participation in the program; 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.