Ill. Admin. Code tit. 8 § 1300.105

Current through Register Vol. 48, No. 45, November 8, 2024

Section 1300.105 - License Selection Criteria

a) The license selection criteria for the Conditional Adult Use Cultivation Center License shall include the following, with each criterion accounting for up to the indicated maximum number of the total points available for each criteria, out of a 1,000 total points ("bonus" points are an additional 15 points):

1) Suitability of the Proposed Facility (75 points):

A) Measure 1 (25 points): The applicant demonstrates that the proposed facility is suitable for effective and safe cultivation of cannabis, sufficient in size, power allocation, air exchange and air flow, interior layout and lighting, and sufficient both in the interior and exterior to handle the bulk agricultural production of cannabis, cannabis-infused products, product handling, storage, trimming, packaging, loading and shipping. The loading/unloading of cannabis in the transport motor vehicle for shipping shall be in an enclosed, secure area out of public sight.

B) Measure 2 (25 points): The applicant demonstrates the capacity to meet consumer demand by operating the cultivation center in a safe and efficient manner with minimal impact on the environment and the surrounding community.

C) Measure 3 (25 points): The applicant provides an Operations and Management Practices Plan that demonstrates compliance with this Part and the Act.

2) Suitability of Employee Training Plan (50 points):

A) Measure 1 (25 points): The applicant fully describes a staffing plan that will provide and ensure adequate staffing and experience for all accessible business hours, safe production, sanitation, adequate security and theft prevention.

B) Measure 2 (25 points): The applicant provides an employee handbook that will provide employees with a working guide to the understanding of the day-to-day administration of personnel policies and practices.

3) Security Plan and Recordkeeping (145 points):

A) Measure 1 (40 points): The applicant's security plan demonstrates its ability to prevent the theft or diversion of cannabis and how the plan will assist ISP, the Department, and local law enforcement. Specifically, it shall evidence compliance with all items in Sections 1300.180 and 1300.185.

B) Measure 2 (40 points): The applicant demonstrates that its plan for record keeping, tracking and monitoring inventory, quality control and security, and other policies and procedures will discourage unlawful activity. It also describes the applicant's plan to coordinate with, and dispose of unused or surplus cannabis through, ISP and the Department.

C) Measure 3 (40 points): The applicant's security plan shall describe the enclosed, locked facility that will be used to secure or store cannabis, its security measures, including when the location is closed for business, and the steps taken to ensure that cannabis is not visible to the public.

D) Measure 4 (25 points): The applicant's plan to apply for a Transporter License or plan to work with a licensed transporter, and the applicant's procedures for safely and securely delivering cannabis and cannabis-infused products to cannabis business establishments.

4) Cultivation Plan (75 points):

A) Measure 1 (25 points): The applicant shall describe its plan to provide a steady, uninterrupted supply of cannabis to registered dispensaries or infusers.

B) Measure 2 (25 points): The applicant demonstrates knowledge of cultivation methods to be used in the cultivation of cannabis. The applicant shall describe the various strains to be cultivated and its experience, if applicable, with growing those strains or comparable agricultural products.

C) Measure 3 (25 points): The applicant demonstrates the steps that will be taken to ensure the quality, including the purity and consistency, of the cannabis to be provided to dispensaries.

5) Product Safety and Labeling Plan (95 points):

A) Measure 1 (35 points): The applicant shall describe its plan for providing safe and accurate packaging and labeling of cannabis.

B) Measure 2 (35 points): The applicant shall describe its plan for testing cannabis and ensuring that all cannabis is free of contaminants, including but not limited to pesticides, microbiological, and residual solvent. Applicant shall provide its plan to retain quality history records showing specific testing results from laboratory testing conducted on the applicant's cannabis products.

C) Measure 3 (25 points): The applicant shall describe its plan for establishing a recall of the applicant's products in the event that they are shown by testing or other means to be, or potentially to be, defective or have a reasonable probability that their use or exposure will cause serious adverse health consequences. At a minimum, the plan should include the method of: identification of the products involved; notification to the dispensary organization or others to whom the product was sold or otherwise distributed; and how the products will be disposed of if returned to or retrieved by the applicant.

6) Applicant's Business Plan and Services to be Offered (110 points):

A) Measure 1 (40 points): The applicant shall provide a business plan that describes how the cultivation center plans to operate on a long-term basis. This shall include the applicant providing a detailed description about the amount and source of the equity and debt commitment for the proposed cultivation center that demonstrates the immediate and long-term financial feasibility of the proposed financing plan, the relative availability of funds for capital and operating needs, and the financial capability to undertake the project.

B) Measure 2 (40 points): The applicant or its officers, board members, or incorporators demonstrate:

i) Experience in business management and/or having industry, agricultural or horticultural experience; and

ii) The extent of their involvement in or ability to influence the day-to-day operations of the facility.

C) Measure 3 (30 points): The business plan demonstrates a start-up timetable that provides an estimated time from license approval of the cultivation center to full operation, and the assumptions used for the basis of those estimates.

7) Applicant's Status as a Social Equity Applicant (200 points).

8) Applicant's Labor and Employment Practices (20 points): Provide a safe, healthy and economically beneficial working environment for its employees, including, but not limited to, its plans regarding workplace safety and environmental standards, codes of conduct, healthcare benefits, educational benefits, retirement benefits, wage standards, and entering a labor peace agreement with employees.

9) Applicant's Environmental Plan (20 points):

A) Measure 1 (10 points): The applicant's ability to demonstrate an environmental plan of action to minimize the carbon footprint, environmental impact, and resource needs for the production of cannabis.

B) Measure 2 (10 points): The applicant's ability to describe any plans for the use of alternative energy, the treatment of waste water and runoff, and scrubbing or treatment of exchanged air.

10) 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 proven by tax records and other documentary evidence as permitted by the Act (90 points).

11) Applicant's status as veteran-controlled or -owned, as "veteran" is defined by Section 45-57 of the Illinois Procurement Code (20 points).

12) Applicant's Diversity Plan. A narrative of not more than 2500 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 (100 points).

b) The Department may award bonus points for preferred but not required initiatives in the following categories based on the applicant's ability to meet or exceed minimum requirements, with each initiative accounting for up to a maximum of 5 points each, for a maximum total of 15 bonus points:

1) Incubator Program (5 points): Establishment of an incubator program designed to increase participation in the cannabis industry by persons who would qualify as Social Equity Applicants;

2) Substance Abuse Prevention Plan (5 points): Providing financial assistance to substance abuse treatment centers;

3) Education Plan (5 points): Educating children and teens about the potential harms of cannabis use.

c) Should the applicant be awarded a license, the terms and statements in the application become a mandatory condition of the license. If a licensee fails to comply with standard and special conditions of the license, the Department may assess a penalty or seek suspension or revocation of the license pursuant to Subpart G (Enforcement and Immunities).

d) In the event that 2 or more qualified applicants for a CAUCCL receive the same total score, the Department will distribute the remaining licenses by lot.

1) The Department will publish a list of tied applicants at least 5 business days before the day the remaining available licenses are distributed.

2) The drawing by lot for all remaining available licenses will occur on the same day.

3) The process for distributing the remaining available licenses will be recorded by the Department in a format of its discretion.

4) If, upon being selected for a remaining available license, an applicant has a principal officer that is a principal officer in more than 3 CAUCCLs, the licensees and the eligible applicant listing a principal officer must choose which license to abandon, and notify the Department in writing within 5 business days. If the eligible applicant or licensees do not notify the Department as required, the Department will refuse to issue all remaining available licenses obtained by the applicant.

5) All remaining available licenses that have been abandoned shall be distributed by lot at a later date.

e) The Department may verify information contained in each application and accompanying documentation to assess the applicant's character and fitness to operate a cultivation center. Notwithstanding an applicant satisfying the selection criteria of this Section, the Department may, in its discretion, refuse to issue a license if it is not satisfied that an applicant, or any one required to be identified in the application by Sections 1300.102, 1300.103 and 1300.145, is a person of good character, honesty and integrity, and is not:

1) A person who creates or enhances the dangers of unlawful practices, methods and activities in the cannabis industry, including, but limited to, product diversion;

2) A person who presents questionable business practices and financial arrangements incidental to the cannabis industry;

3) A person who has had a cannabis dispensary or cultivation center license revoked, suspended or sanctioned in any other jurisdiction.

Ill. Admin. Code tit. 8, § 1300.105

Added at 44 Ill. Reg. 10364, effective 6/3/2020.