Section 1300.100  Application, Selection, and Operation of Early Adult Use Cultivation Center License

a)         A medical cannabis cultivation center seeking issuance of an Early Approval Adult Use Cultivation Center License shall submit an application on forms provided by the Department of Agriculture.  The application must meet or include the following qualifications:

1)         Payment of a nonrefundable application fee of $100,000, unless the applicant is eligible for a fee waiver pursuant to Section 7-20 of the Act;

2)         Proof of registration as a medical cannabis cultivation center that is in good standing;

3)         Submission of the application by the same person or entity that holds the medical cannabis cultivation center registration;

4)         Certification that the applicant will comply with the requirements of Section 20-30 of the Act;

5)         The legal name of the cultivation center;

6)         The physical address of the cultivation center;

7)         The name, address, social security number and date of birth of each principal officer and board member of the cultivation center; each of those individuals shall be at least 21 years of age;

8)         A nonrefundable Cannabis Business Development Fee equal to 5% of the cultivation center's total sales between June 1, 2018 to June 1, 2019 or $750,000, whichever is less, but not less than $250,000, to be deposited into the Cannabis Business Development Fund; and

9)         A commitment to completing one of the Social Equity Inclusion Plans before the expiration of the Early Approval License:

A)        A contribution of 5% of the cultivation center's total sales from June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to one of the following:

i)          The Cannabis Business Development Fund. This is in addition to the fee required by subsection (a)(8);

ii)         A cannabis industry training or education program at an Illinois community college, as defined in the Public Community College Act;

iii)        A program that provides job training services to persons recently incarcerated or that operates in a Disproportionately Impacted Area.

B)        Participate, for at least one year, as a host in a cannabis business incubator program approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval License holder agrees to provide a loan of at least $100,000 and mentorship to incubate a licensee that qualifies as a Social Equity Applicant.  As used in this Section, "incubate" means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee.  The Early Approval License holder or the same entity holding any other licenses issued pursuant to the Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection (a)(9)(B).  If an Early Approval License holder fails to find a business to incubate to comply with this subsection (a)(9)(B) before its Early Approval License expires, it may opt to meet the requirements of this subsection by completing another item from this subsection prior to the expiration of its Early Approval License to avoid a penalty. [410 ILCS 705/20-10(b)]

b)         An Early Approval License is valid until March 31, 2021.  A cultivation center that obtains an Early Approval License will receive written or electronic notice, 90 days before the expiration of the license, that the license will expire. The notice will inform the license holder that it may renew its Early Approval License. The Department will grant a renewal of an Early Approval License within 60 days after submission of an application if:

1)         The cultivation center submits an application and the required renewal fee of $100,000 for an Early Approval License;

2)         The Department has not suspended the license of the cultivation center or suspended or revoked the license for violating the Act or this Part; and

3)         The cultivation center has completed a Social Equity Inclusion Plan as required by subsection (a)(9). [410 ILCS 705/20-10(c)]

c)         The Early Approval License renewed pursuant to subsection (b) shall expire March 31, 2022.  The Early Approval License holder will receive written or electronic notice, 90 days before the expiration of the license, that the license will expire. The notice will inform the license holder that it may apply for an Adult Use Cultivation Center License.  The Department will grant an Adult Use Cultivagtion Center License within 60 days after an application being deemed complete. [410 ILCS 705/20-10(c-5)]

d)         The license fee required by subsection (a)(1) shall be in addition to any license fee required for the renewal of a registered medical cannabis cultivation center license that expires during the effective period of the Early Approval License. [410 ILCS 705/20-10(d)]

e)         Applicants must submit to the Department all required information, including the requirements in subsection (a).  Failure by an applicant to submit all required information may result in the application being disqualified. [410 ILCS 705/20-10(e)]

f)         If the Department receives an application with missing information, the Department may issue a deficiency notice to the applicant.  The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified. [410 ILCS 705/20-10(f)]

g)         If an applicant meets all the requirements of subsection (a), the Department will issue the Early Approval License within 14 days after receiving the application unless:

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

2)         The Director of Agriculture determines there is reason, based on an inordinate number of documented compliance violations, the licensee is not entitled to an Early Approval License; or

3)         The licensee fails to commit to the Social Equity Inclusion Plan. [410 ILCS 705/20-10(g)]

h)         A cultivation center may begin producing cannabis and cannabis-infused products once the Early Approval License is approved.  A cultivation center that obtains an Early Approval License may begin selling cannabis and cannabis-infused products on December 1, 2019. [410 ILCS 705/20/10(h)]

i)          An Early Approval License holder must produce and provide cannabis and cannabis-infused products in type and quantity proportionate to the number of patients and caregivers it served on an average monthly basis for the 6 months before the effective date of the Act (i.e., before June 25, 2019). [410 ILCS 705/20-10(i)]

j)          If there is a shortage of cannabis or cannabis-infused products, a license holder shall prioritize patients registered under the Compassionate Use of Medical Cannabis Pilot Program Act over adult use purchasers. [410 ILCS 705/20-10(j)]

k)         If an Early Approval License holder fails to submit an application for an Adult Use Cultivation Center License before the expiration of the Early Approval License (see subsection (c)), the cultivation center shall cease adult use cultivation until it receives an Adult Use Cultivation Center License. [410 ILCS 705/20-10(k)]

l)          A cultivation center agent who holds a valid cultivation center agent identification card issued under the Compassionate Use of Medical Cannabis Pilot Program Act and is an officer, director, manager, or employee of the cultivation center licensed under this Section may engage in all activities authorized by Article 20 of the Act to be performed by a cultivation center agent. [410 ILCS 705/20-10(l)]

m)        If the Department suspends or revokes the Early Approval License of a cultivation center that also holds a medical cannabis cultivation center license, the Department will suspend or revoke the medical cannabis cultivation center license concurrently with the Early Approval License. [410 ILCS 705/20-10(m)]

n)         All fees or fines collected from an Early Approval License holder as a result of a disciplinary action in the enforcement of the Act shall be deposited into the Cannabis Regulation Fund. [410 ILCS 705/20-10(n)]