Ill. Admin. Code tit. 8 § 1300.407

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

Section 1300.407 - License Selection Criteria

a) The license selection criteria for the Infuser 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 1,000 total points (bonus points are an additional 2 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 production of cannabis and cannabis-infused products, sufficient in size, power allocation, air exchange and air flow, interior layout, lighting, and sufficient both in the interior and exterior to handle bulk production of 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 ability to meet consumer demand by operating the infuser facility 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 with ISP, Department, and local law enforcement. Specifically, it shall evidence compliance with all items in Sections 1300.455, 1300.480 and 1300.485;

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 dispose of unused or surplus cannabis and cannabis-infused products in cooperating with ISP and the Department;

C) Measure 3 (40 points): The applicant's security plan shall describe:

i) the enclosed, locked facility that will be used to secure or store cannabis, cannabis-infused products;

ii) its security measures, including when the location is closed for business; and

iii) the steps taken to ensure that cannabis and cannabis-infused products are 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-infused products to cannabis business establishments.

4) Infusing Plan (75 points):

A) Measure 1 (25 points): The applicant shall describe its plan to provide a steady, uninterrupted supply of cannabis-infused products to registered dispensaries;

B) Measure 2 (25 points): The applicant demonstrates knowledge of infusion methods to be used in the production of cannabis-infused 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-infused products 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-infused products;

B) Measure 2 (35 points): The applicant shall describe its plan for testing and ensuring that all cannabis-infused products are free of contaminants, including but not limited to pesticides, microbiological contaminants, and residual solvent;

C) Measure 3 (25 points): The applicant shall describe its plan for establishing a recall of the applicant's cannabis-infused 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 to these products 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 infuser 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 infuser 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 demonstrates experience in business management and/or having industry, laboratory, agricultural or horticultural experience and 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 infuser 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, living 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-infused products;

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) The applicant is 51% or more owned and controlled by an individual or individuals who have been Illinois residents for the past 5 years as proved by tax records and other documentary evidence as permitted by the Act (90 points);

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 (20 points);

12) Applicant's Diversity Plan (100 points): 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.

b) The Department may award up to 2 bonus points when an applicant makes a commitment to engage with the community. Applicants are not required to complete the bonus point category. Bonus points will only be awarded if the Department receives applications that receive an equal score. An applicant that desires to make a commitment to engage with the community may choose one of the following options:

1) Community Benefits Plan: The applicant commits to the 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: The applicant commits to providing financial assistance to substance abuse treatment centers;

3) Local Community/Neighborhood Report: The applicant commits to educating children and teens about the potential harms of cannabis use.

c) Should the applicant be awarded a license, the information and plan that an applicant provided in its application becomes 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 an Infuser License receive the same total score, the Department will distribute the remaining available licenses by lot.

1) The drawing by lot for all remaining available licenses will occur on the same day; and

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

e) The Department may verify information contained in each application and accompanying documentation to assess the applicant's character and fitness to operate an infuser. Notwithstanding an applicant satisfying the foregoing selection criteria, 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, or identified pursuant to Sections 1300.400, 1300.405 and 1300.445, 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 not limited to, product diversion;

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

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, § 1300.407

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