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Illinois Craft Grower License – Craft Cannabis

by Jul 8, 2019Cannabis Act Highlights0 comments

Illinois’ Cannabis Regulation & Taxation Act is unique in its outlining of a craft cannabis industry with special regulations and application procedures for smaller cannabis cultivators. Read on to learn: what is an Illinois craft grower and how do I get an Illinois craft grower license?

Illinois Craft Grower Definition

A craft grow is defined as a facility that cultivates, dries, cures, and packages cannabis. May contain up to 5,000 square feet of canopy space for plants in the flowering stage (can be increased in increments of 3,000 square feet based on market need, capacity, and history of compliance, with a maximum space of 14,000 square feet). Different from a cultivation center which can have up to 210,000 square feet of canopy space. An Illinois craft grower MAY process cannabis, cannabis concentrates, and cannabis-infused products.

Illinois Craft Grower License Timing & Fees

Illinois shall issue up to 40 craft grower licenses by July 1, 2020. By December 21, 2021, the state shall issue up to 60 additional licenses. 

The specific date that the application will be available is not mentioned, but because licenses will be issued at the same time as Transporting Organization Licenses, the applications will likely be available at the same time – on January 7, 2020 with applications accepted through March 15, 2020.

Person or entity shall not hold more than 2 craft grower licenses.

Nonrefundable application fee – $5,000

If license awarded, prorated fee of $40,000

Plan Requirements for Craft Growers License Illinois

  • 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
  • Water needs, including estimated water draw and if it has or will adopt a sustainable water use and water conservation policy
  • waste management including if it has or will adopt a waste reduction policy
  • recycling plan (purchaser packaging, including cartridges, shall be accepted by the applicant and recycled, any recyclable waste generated by the Illinois craft grower facility shall be recycled per applicable laws, ordinances, and rules, cannabis waste, liquid waste, and hazardous waste in accordance with codes)
  • Must be in compliance with local waste provisions

Lighting

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 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.

HVAC

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. 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.

Water

The Illinois craft grower facility commits to use automated watering systems, including, but not limited to, drip irrigation and flood tables, to irrigate cannabis crop. The Illinois 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.

Filtration 

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.

Scoring of Illinois Craft Grower License Applicants

The specific scoring system has not been fully established; however, we know applications will be scored based on the quality of the applicant’s responses to required information. 

  • Suitability of Proposed Facility
  • Suitability of Employee Training Program
  • Security and Recordkeeping
  • Cultivation Plan
  • Product Safety and Labeling Plan
  • Business Plan
  • Social Equity Applicant (NO LESS THAN 20% OF TOTAL POINTS)
  • Labor and Employment Practices (no less than 2% of total points)
  • Environmental Plan
  • Illinois Resident (past 5 years, 51%+ owned/controlled)
  • Veteran Owned (51%+)
  • Diversity Plan
  • Any Other Criteria
  • Up to 2 bonus points for plan to engage with community

Illinois Craft Grower License Requirements

  • Cannabis plant monitoring system including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan
  • security plan including, but not limited to: facility access controls, perimeter intrusion detection systems, personnel identification systems, and a 24-hour surveillance system to monitor the interior and exterior of the Illinois craft grower facility
  • cultivation must take place in an enclosed, locked facility which shall only be accessed by the agents working for the Illinois craft grower, Dept, of Agriculture, Dept. of Public Health, State and local law enforcement or other emergency personnel, contractors working on jobs unrelated to cannabis, transporting organization agents, or participants in the incubator program, individuals in a mentoring or educational program approved by state.
  • If premises is shared with infuser or dispensing organization, agents from other licensees may access the Illinois craft grower portion if that is the location of common bathrooms, lunchrooms, locker rooms, or other areas of the building where work or cultivation of cannabis is not performed. 
  • Dispensing or infuser agents may not perform work at an Illinois craft grower without being a registered agent of the craft grower.
  • Cannot directly or indirectly discriminate in price between different cannabis business establishments (though they can price cannabis different based on cost of manufacturing or processing, quantities sold, or the way products are delivered).
  • All cannabis harvested and intended for distribution to a dispensing organization must be entered into a data collection system.
  • Notify local law enforcement, Department of State Police, and Department of Agriculture within 24 hours of the discovery of any loss or theft.
  • No transporting cannabis or cannabis-infused products without a transport organization license unless (if in a county with population of fewer than 700,000) within 15 miles of the Illinois craft grower.

Are you considering submitting an Illinois craft grower license application?

We offer application writing, cannabis consulting, and grow setup. We have a network of industry professionals and companies to assist with your application and your grow.

Contact us to receive a free phone consultation and Illinois craft grower license application toolkit.

The Law – 410 ILCS

Article 30. Craft Growers

(Source: P.A. 101-27, eff. 6-25-19.)

Each toggle below contains a different section of Article 30 from 410 ILCS, the Cannabis Regulation & Tax Act. Open the toggle to read the details of that section.

Current as of 1/9/2020

Sec. 30-3. Definition.

In this Article, “Department” means the Department of Agriculture.

(Source: P.A. 101-27, eff. 6-25-19.)

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 (gg) 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 to reduce or eliminate barriers. 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;

        (2) whether there is an adequate supply of cannabis and cannabis-infused products to serve registered medical cannabis patients;

        (3) whether there is an adequate supply of cannabis and cannabis-infused products to serve purchasers;

        (4) whether there is an oversupply of cannabis in Illinois leading to trafficking of cannabis to states where the sale of cannabis is not permitted by law;

        (5) population increases or shifts;

        (6) the density of craft growers in any area of the State;

        (7) perceived security risks of increasing the number or location of craft growers;

        (8) the past safety record of craft growers;

        (9) the Department of Agriculture’s capacity to appropriately regulate additional licensees;

        (10) the findings and recommendations from the disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer to reduce or eliminate any identified barriers to entry in the cannabis industry; and

        (11) any other criteria the Department of Agriculture deems relevant.

    (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 to reduce or eliminate barriers based on the criteria in subsection (b). 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.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

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;

        (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 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 (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;

        (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 approved by the Department of 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;

        (7) verification from the Department of State Police that all background checks of the prospective principal officers, board members, and agents of the cannabis business establishment have been conducted;

        (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) whether an 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 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:

            (i) 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;

            (ii) water needs, including estimated water draw and if it has or will adopt a sustainable water use and water conservation policy; and

            (iii) waste management, including if it has or will adopt a waste reduction policy;

        (19) a recycling plan:

            (A) Purchaser packaging, including cartridges, 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.

            (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 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, the cannabis cultivation facility’s 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) A craft grower facility commits to use 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:

                (i) lighting systems, including light bulbs;

                (ii) HVAC system;

                (iii) water application system to the crop; and

                (iv) filtration system for removing contaminants from wastewater.

            (B) 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 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.

            (C) 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.

            (D) 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.

            (E) 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.

            (F) Reporting energy use and efficiency as required by rule; and

        (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.)

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;

        (8) Labor and employment practices, which shall constitute no less than 2% of total available points;

        (9) Environmental plan as described in paragraphs (18), (19), (20), and (21) of subsection (a) of Section 30-10;

        (10) The applicant is 51% or more owned and 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:

            (A) a signed lease agreement that includes the applicant’s name;

            (B) a property deed that includes the applicant’s name;

            (C) school records;

            (D) a voter registration card;

            (E) an Illinois driver’s license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card;

            (F) a paycheck stub;

            (G) a utility bill; or

            (H) any other proof of residency or other information necessary to establish residence as provided by rule;

        (11) The applicant is 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran as defined in Section 45-57 of the Illinois Procurement Code;

        (12) 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; and

        (13) Any other criteria the Department of Agriculture may set by rule for points.

    (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.)

Sec. 30-20. Issuance of license to certain persons prohibited.

    (a) No craft grower license issued by the Department of Agriculture shall be issued to a person who is licensed by any licensing authority as a cultivation center, or to any partnership, corporation, limited liability company, or trust or any subsidiary, affiliate, or any other form of business enterprise having more than 10% legal, equitable, or beneficial interest, directly or indirectly, in a person licensed in this State as a cultivation center, or to any principal officer, agent, employee, or human being with any form of ownership or control over a cultivation center except for a person who owns no more than 5% of the outstanding shares of a cultivation center whose shares are publicly traded on an exchange within the meaning of the Securities Exchange Act of 1934.

    (b) A person who is licensed in this State as a craft grower, or any partnership, corporation, limited liability company, or trust or any subsidiary, affiliate, or agent thereof, or any other form of business enterprise licensed in this State as a craft grower shall not have more than 10% legal, equitable, or beneficial interest, directly or indirectly, in a person licensed as a cultivation center, nor shall any partnership, corporation, limited liability company, or trust or any subsidiary, affiliate, or any other form of business enterprise having any legal, equitable, or beneficial interest, directly or indirectly, in a person licensed in this State as a craft grower or a craft grower agent be a principal officer, agent, employee, or human being with any form of ownership or control over a cultivation center except for a person who owns no more than 5% of the outstanding shares of a cultivation center whose shares are publicly traded on an exchange within the meaning of the Securities Exchange Act of 1934.

(Source: P.A. 101-27, eff. 6-25-19.)

Sec. 30-25. Denial of application.

An application for a craft grower license must be denied if any of the following conditions are met:

        (1) the applicant failed to submit the materials required by this Article;

        (2) the applicant would not be in compliance with local zoning rules;

        (3) one or more of the prospective principal officers or board members causes a violation of Section 30-20 of this Article;

        (4) one or more of the principal officers or board members is under 21 years of age;

        (5) the person has submitted an application for a license under this Act that contains false information; or

        (6) the licensee; principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee; or agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

(Source: P.A. 101-27, eff. 6-25-19.)

Sec. 30-30. Craft grower requirements; prohibitions.

    (a) The operating documents of a craft grower shall include procedures for the oversight of the craft grower, a cannabis plant monitoring system including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.

    (b) A craft grower shall implement a security plan reviewed by the Department of State Police that includes, but is not limited to: facility access controls, perimeter intrusion detection systems, personnel identification systems, and a 24-hour surveillance system to monitor the interior and exterior of the craft grower facility and that is accessible to authorized law enforcement and the Department of Agriculture in real time.

    (c) All cultivation of cannabis by a craft grower must take place in an enclosed, locked facility at the physical address provided to the Department of Agriculture during the licensing process. The craft grower location shall only be accessed by the agents working for the craft grower, the Department of Agriculture staff performing inspections, the Department of Public Health staff performing inspections, State and local law enforcement or other emergency personnel, contractors working on jobs unrelated to cannabis, such as installing or maintaining security devices or performing electrical wiring, transporting organization agents as provided in this Act, or participants in the incubator program, individuals in a mentoring or educational program approved by the State, or other individuals as provided by rule. However, if a craft grower shares a premises with an infuser or dispensing organization, agents from those other licensees may access the craft grower portion of the premises if that is the location of common bathrooms, lunchrooms, locker rooms, or other areas of the building where work or cultivation of cannabis is not performed. At no time may an infuser or dispensing organization agent perform work at a craft grower without being a registered agent of the craft grower.

    (d) A craft grower may not sell or distribute any cannabis to any person other than a cultivation center, a craft grower, an infuser organization, a dispensing organization, or as otherwise authorized by rule.

    (e) A craft grower may not be located in an area zoned for residential use.

    (f) A craft grower may not either directly or indirectly discriminate in price between different cannabis business establishments that are purchasing a like grade, strain, brand, and quality of cannabis or cannabis-infused product. Nothing in this subsection (f) prevents a craft grower from pricing cannabis differently based on differences in the cost of manufacturing or processing, the quantities sold, such as volume discounts, or the way the products are delivered.

    (g) All cannabis harvested by a craft grower and intended for distribution to a dispensing organization must be entered into a data collection system, packaged and labeled under Section 55-21, and, if distribution is to a dispensing organization that does not share a premises with the dispensing organization receiving the cannabis, placed into a cannabis container for transport. All cannabis harvested by a craft grower and intended for distribution to a cultivation center, to an infuser organization, or to a craft grower with which it does not share a premises, must be packaged in a labeled cannabis container and entered into a data collection system before transport.

    (h) Craft growers are subject to random inspections by the Department of Agriculture, local safety or health inspectors, and the Department of State Police.

    (i) A craft grower agent shall notify local law enforcement, the Department of State Police, and the Department of Agriculture within 24 hours of the discovery of any loss or theft. Notification shall be made by phone, in person, or written or electronic communication.

    (j) A craft grower shall comply with all State and any applicable federal rules and regulations regarding the use of pesticides.

    (k) A craft grower or craft grower agent shall not transport cannabis or cannabis-infused products to any other cannabis business establishment without a transport organization license unless:

        (i) If the craft grower is located in a county with a population of 3,000,000 or more, the cannabis business establishment receiving the cannabis is within 2,000 feet of the property line of the craft grower;

        (ii) If the craft grower is located in a county with a population of more than 700,000 but fewer than 3,000,000, the cannabis business establishment receiving the cannabis is within 2 miles of the craft grower; or

        (iii) If the craft grower is located in a county with a population of fewer than 700,000, the cannabis business establishment receiving the cannabis is within 15 miles of the craft grower.

    (l) A craft grower may enter into a contract with a transporting organization to transport cannabis to a cultivation center, a craft grower, an infuser organization, a dispensing organization, or a laboratory.

    (m) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 3 craft grower licenses. Further, no person or entity that is employed by, an agent of, or has a contract to receive payment from or participate in the management of a craft grower, is a principal officer of a craft grower, or entity controlled by or affiliated with a principal officer of a craft grower shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a craft grower license that would result in the person or entity owning or controlling in combination with any craft grower, principal officer of a craft grower, or entity controlled or affiliated with a principal officer of a craft grower by which he, she, or it is employed, is an agent of, or participates in the management of more than 3 craft grower licenses.

    (n) It is unlawful for any person having a craft grower license or any officer, associate, member, representative, or agent of the licensee to offer or deliver money, or anything else of value, directly or indirectly, to any person having an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any person connected with or in any way representing, or to any member of the family of, the person holding an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any stockholders in any corporation engaged in the retail sale of cannabis, or to any officer, manager, agent, or representative of the Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act to obtain preferential placement within the dispensing organization, including, without limitation, on shelves and in display cases where purchasers can view products, or on the dispensing organization’s website.

    (o) A craft grower shall not be located within 1,500 feet of another craft grower or a cultivation center.

    (p) A craft grower may process cannabis, cannabis concentrates, and cannabis-infused products.

    (q) A craft grower must comply with any other requirements or prohibitions set by administrative rule of the Department of Agriculture.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

Sec. 30-35. Craft grower agent identification card.

    (a) The Department of Agriculture shall:

        (1) establish by rule the information required in an initial application or renewal application for an agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;

        (2) verify the information contained in an initial application or renewal application for an agent identification card submitted under this Act and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;

        (3) issue an agent identification card to a qualifying agent within 15 business days of approving the initial application or renewal application;

        (4) enter the license number of the craft grower where the agent works; and

        (5) allow for an electronic initial application and

renewal application process, and provide a confirmation by electronic or other methods that an application has been submitted. The Department of Agriculture may by rule require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.

    (b) An agent must keep his or her identification card visible at all times when on the property of a cannabis business establishment, including the craft grower organization for which he or she is an agent.

    (c) The agent identification cards shall contain the following:

        (1) the name of the cardholder;

        (2) the date of issuance and expiration date of the identification card;

        (3) a random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters that is unique to the holder;

        (4) a photograph of the cardholder; and

        (5) the legal name of the craft grower organization employing the agent.

    (d) An agent identification card shall be immediately returned to the cannabis business establishment of the agent upon termination of his or her employment.

    (e) Any agent identification card lost by a craft grower agent shall be reported to the Department of State Police and the Department of Agriculture immediately upon discovery of the loss.

(Source: P.A. 101-27, eff. 6-25-19.)

Sec. 30-40. Craft grower background checks.

    (a) Through the Department of State Police, the Department of Agriculture shall conduct a background check of the prospective principal officers, board members, and agents of a craft grower applying for a license or identification card under this Act. The Department of State Police shall charge a fee set by rule for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. In order to carry out this Section, each craft grower organization’s prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Department of State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed in the Department of State Police and Federal Bureau of Investigation criminal history records databases. The Department of State Police shall furnish, following positive identification, all conviction information to the Department of Agriculture.

    (b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.

(Source: P.A. 101-27, eff. 6-25-19.)

Sec. 30-45. Renewal of craft grower licenses and agent identification cards.

    (a) Licenses and identification cards issued under this Act shall be renewed annually. A craft grower shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department of Agriculture shall grant a renewal within 45 days of submission of a renewal application if:

        (1) the craft grower submits a renewal application and the required nonrefundable renewal fee of $40,000, or another amount as the Department of Agriculture may set by rule after January 1, 2021;

        (2) the Department of Agriculture has not suspended the license of the craft grower or suspended or revoked the license for violating this Act or rules adopted under this Act;

        (3) the craft grower has continued to operate in accordance with all plans submitted as part of its application and approved by the Department of Agriculture or any amendments thereto that have been approved by the Department of Agriculture;

        (4) the craft grower has submitted an agent, employee, contracting, and subcontracting diversity report as required by the Department; and

        (5) the craft grower has submitted an environmental impact report.

    (b) If a craft grower fails to renew its license before expiration, it shall cease operations until its license is renewed.

    (c) If a craft grower agent fails to renew his or her identification card before its expiration, he or she shall cease to work as an agent of the craft grower organization until his or her identification card is renewed.

    (d) Any craft grower that continues to operate, or any craft grower agent who continues to work as an agent, after the applicable license or identification card has expired without renewal is subject to the penalties provided under Section 45-5.

    (e) All fees or fines collected from the renewal of a craft grower license shall be deposited into the Cannabis Regulation Fund.

(Source: P.A. 101-27, eff. 6-25-19.)

Sec. 30-50. Craft grower taxes; returns.

    (a) A tax is imposed upon the privilege of cultivating and processing adult use cannabis at the rate of 7% of the gross receipts from the sale of cannabis by a craft grower to a dispensing organization. The sale of any adult use product that contains any amount of cannabis or any derivative thereof is subject to the tax under this Section on the full selling price of the product. The proceeds from this tax shall be deposited into the Cannabis Regulation Fund. This tax shall be paid by the craft grower who makes the first sale and is not the responsibility of a dispensing organization, qualifying patient, or purchaser.

    (b) In the administration of and compliance with this Section, the Department of Revenue and persons who are subject to this Section: (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in the Cannabis Cultivation Privilege Tax Law and the Uniform Penalty and Interest Act as if those provisions were set forth in this Section.

    (c) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

(Source: P.A. 101-27, eff. 6-25-19.)

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