How to Win a Craft Growers License in Illinois

A: Suitability of the Proposed Facility

Suitability of the Proposed Facility Applicant must: (1) demonstrate that the proposed facility is suitable for effective and safe cultivation of cannabis; (2) demonstrate the ability to meet consumer demand by operating the craft grow facility in a safe and efficient manner with minimal impact on the environment and the surrounding community; and (3) provide an Operations and Management Practices Plan. Total Points: 75 Page Limit: 50

B: Suitability of Employee Training Plan

Suitability of the Employee Training Plan Applicant must: (1) describe a staffing plan that will provide and ensure adequate staffing and experience for accessible business hours, safe production, sanitation, security, and theft prevention; and (2) provide an employee handbook that will provide employees with a working guide of the administration and policies of the facilities. Total Points: 50 Page Limit: 15, not including a copy of the proposed handbook

C: Security Plan and Record keeping

Applicant must: (1) demonstrate its ability to prevent the theft or diversion of cannabis and how the plan will assist ISP, Department, and local law enforcement in carrying out law enforcement responsibilities, including evidence of compliance with all items in Sections 1300.355, 1300.380, and 1300.385 of the emergency rules; (2) demonstrate that its plan for record-keeping, tracking and monitoring inventory, quality control and security and other policies and procedures will discourage unlawful activity, including a description of the applicant’s plan to coordinate with and dispose of unused or surplus cannabis with ISP and the Department; (3) describe the enclosed, locked facility for securing and storing cannabis and the Applicant’s security measures, including measures for when the location is closed for business and steps taken to ensure that cannabis is not visible to the public; (4) Applicant must also provide its plan to apply for a transporter license or plan to work with a licensed transporter and the procedures for safely and securely delivering cannabis and cannabis-infused products to cannabis business establishments.  There are several new additions to the cannabis security plan some of the highlights are both 90-days recording onsite and 90 days cloud recordings must be available to the state.  The craft grow application Illinois does not require a security guard to be on location during hours of operation.  Total Points: 145 Page Limit: 65

D: Cultivation Plan

Applicant must: (1) describe its plan to provide a steady, uninterrupted supply of cannabis to registered dispensaries; (2) demonstrate knowledge of cultivation methods to be used, including the various strains to be cultivated and the Applicant’s experience, if applicable, with growing those strains or comparable agricultural products; (3) demonstrate the steps that will be taken to ensure the quality of the cannabis, including the purity and consistency, of the cannabis to be provided to dispensaries. Total Points: 75 Page Limit: 50

E: Product Safety and Labeling Plan

A Craft Grow applicant must: (1) describe its plan for safe and accurate packaging and labeling of cannabis; (2) describe its plan for testing cannabis and ensuring that all cannabis is free of contaminants; (3) describe its plan for establishing a product recall in the event of a product defect or adverse health consequences to consumers, including methods of identifying the product, notifying dispensaries and/or consumers, and disposal of the returned product. Total Points: 95 Page Limit: 55

F: Business Plan and Services to be Offered

A cannabis business plan for craft grower’s license applicant must:

1. provide a business plan that describes how the craft grower plans to operate on a long-term basis, including a detailed description about the amount and source of the equity and debt commitment and financial feasibility;
2. demonstrate and/or describe the experience that the Applicant or its officers, board members, or incorporators have in business management, this industry, or agriculture and horticulture, and the extent of their involvement in or ability to influence the day-to-day operations of the facility;
3. provide a startup timetable which provides an estimated time from permit approval to full operation, and the basis of the estimates. This should include a statement that license Applicant can demonstrate experience in or business practices that promote economic empowerment in Disproportionately Impacted Areas.
4. Total Points: 110 Page Limit: 60

G: Social Equity Applicant

These are the normal Social Equity Applicant requirements that we have written extensively about –Click Here for more information regarding the social equity applicant component of the craft growers license.

200 points – no page limit.

H: Craft Growers License Applicant’s Labor and Employment Practices

Applicant must: provide a plan to 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. Total Points: 20 Page Limit: 10

I: Environmental Plan

Applicant must: (1) provide or demonstrate a plan to minimize the carbon footprint, environmental impact, and resource needs for the production of cannabis and; (2) describe any plans for the use of alternative energy, treatment of waste water and run off, and treatment of exchanged air. Total Points: 20 Page Limit: 10

J: Illinois Resident Controlled or Owned

Craft Growers License applicant must declare whether Applicant is Illinois Resident Controlled or Owned. If the Applicant is not applying as Illinois Resident Controlled or Owned, Applicant need not provide any further information in this Exhibit. If Applicant is applying as Illinois Resident Controlled or Owned, the Applicant must: provide tax records proving the facility will be 51% controlled or owned by an individual or individuals who have been an Illinois resident for each of the past 5 years. Total Points: 90 Page Limit: none

K: Veteran Controlled or Owned

Applicant must declare whether the Applicant is Veteran Controlled or Owned. If Applicant is not Veteran Controlled or Owned, Applicant need not provide any further information in this Exhibit. If Applicant is applying as Veteran owned or Controlled, Applicant must: provide evidence proving the facility will be 51% controlled or owned by a veteran, as defined in Section 45-57 of the Illinois Procurement Code (30 ILCS 500). Total Points: 20 Page Limit: none

L: Diversity Plan

Applicant must: provide a narrative that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity. Total Points: 100 Page limit: No more than 2500 words

M: Bonus Section (Optional)

In the event of a tie in scoring the Craft Grower applications, the Illinois Department of Agriculture may award up to 2 bonus points for preferred but not required initiatives in the following categories: (1) community benefits plan, (2) substance abuse prevention plan, (3) local community/neighborhood report. If submitting this Exhibit, the Applicant must: state the category (or categories) to which license Applicant has prepared a response. Each category and its corresponding response must be clearly labeled. Total Points: 2 per category Page Limit: 10 per category

N: Property Ownership

Applicant must submit different documentation depending on Applicant’s status as the property owner. If the property of the proposed location is leased by the Applicant, Applicant must submit: a copy of the lease, confirmation of land ownership, identification of any mortgagees and/or lienholders, a written statement from property owner and/or landlord certifying consent for a craft grow facility to be operated on the premises by the applicant at least through December 31, 2021, 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 craft grow facility at least through December 31, 2021, and consent thereto by any mortgagees and/or perfected lienholders.

If the property is not owned or currently leased by the Applicant, Applicant must submit: a written statement from property owner and/or landlord certifying consent for the applicant to lease or purchase the land for the purpose of operating a craft grow facility at least through December 31, 2021, 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 craft grow facility at least through December 31, 2021, and consent thereto by any mortgagees and/or perfected lienholders. If the property is owned by the Applicant, Applicant must submit: 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 craft grow facility at least through December 31, 2021; and consent thereto by any mortgagees and/or perfected lienholders. Page limit: none

O: Notice of Proper Zoning

This Exhibit contains two parts: one to be completed by the Applicant, and one to be completed by the local zoning authority. Both parts must be completed.

P: Organizational Information and Financial Interest Disclosure

The license applicant must disclose all relevant financial information related to the craft grower. In responding to this Exhibit, Applicants are encouraged to review the definition of “financial interest” in the rules, and Sections 1300.305 and 1300.300(c)(22)-(27). The Craft Grower Applicant must provide:

1. The ownership structure of the Craft Grower, including the percentage ownership interest of each individual or business entity. This should identify all principal officers and business entities that through direct or indirect means, manage, own or control the interests and assets of the Craft Grower Applicant. a. Applicant must state what type of business entity it is: sole proprietor, partnership, limited partnership, limited liability partnership, corporation, limited liability company, or other.

i. Sole proprietors must provide the name, residence, and date of birth of the owner. ii. All partnerships must provide the names and addresses of all partners, both general and limited, and any partnership documents. iii. Limited partnerships, limited liability partnerships, corporations, and limited liability companies must provide a copy of a certificate of existence and a copy of a Certificate of Good Standing from the Illinois Secretary of State, issued within the last 60 days. iv. Limited liability companies must provide a copy of their Articles of Organization and a listing of the members of the limited liability company and their contact information. v. Corporations must provide a copy of their Articles of Incorporation, and a copy of assumed name registration issued by the Secretary of State if applicable. Corporations must also provide the names and addresses of all stockholders and directors of the corporation.

1. All foreign entities must provide the documentation applicable to their entity type above, plus a copy of a Certificate of Good Standing from their jurisdiction of incorporation, and a copy of a Certificate of Authority issued by the Illinois Secretary of State.

2. A current organizational chart of the Craft Grower, including positions descriptions and names and resumes of persons occupying positions. Include any additional skills, education, or experience relevant to a craft grower that is not included in employees’ resumes.

3. Copies of compensation agreements, management agreements, supply agreements, or other financial documents between or among the Applicant and any persons having a financial interest and/or control in the licensee, including growers, owners, and officers, or a narrative if the agreement is oral.

4. Documentation establishing that Applicant has at least $20,000 in liquid assets.

5. Nature and type of any outstanding bonds, loans, lines of credit, etc., issued or executed, or to be issued or executed, in connection with the opening or operating of the proposed craft grower.

6. Disclosure of all sources of funding used to acquire or develop the craft grower business and documentation of such funding. Applicant must complete the below worksheet for any individual or entity identified in the above information.

Q: Principal Officer or Board Member Disclosure Statement

The Craft Grower principal officer form must be completed for each principal officer and/or board member. This form must be filled out entirely despite the potential appearance of duplicative information.

R. Notarized Statement

The Craft Grower Applicant must sign and notarize a statement that specifically provides he or she will not do certain things, and that the information contained in the craft grower application is true and correct.

S: Fingerprint Consent Form

The craft grower license applicant must complete the Fingerprint Submission Consent and Notification Form and submit it directly to a live scan vendor. This Form should not be included in the Application. Applicant should not alter the Requesting Agency Name, Requesting Agency ORI Identifier, Requesting Agency Address, or Purpose Code fields of the Form.