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Infuser Licenses for Cannabis Extracts in Illinois

What does the law say about Infuser Organizations for Cannabis Extracts in Illinois?

An Infuser license is a facility that directly incorporates cannabis concentrate into a product to make a cannabis-infused product. These facilities will be licensed by the department of Agriculture and will need to fulfill a few requirements in order to get an operating license.
Cannabis Infuser License

Cannabis Extracts Sometimes Can Resemble Honey

Below we look at some of those requirements. We will also cover the terms set out by the law for those looking to set up infuser licenses for cannabis organizations.

Issuance of Cannabis Infuser Licenses

By the start of July 2020, the department of agriculture will have issued up to 40 infuser organization licenses. The applications for these licenses will start from January 7, 2020 and the application window will close by March 15, 2020.

By the end of the year 2021, the department of agriculture will have issued a maximum of 60 infuser organization licenses. Before this date, the department may adopt rules that will change this number. 
Some steps the department may take to increase the number of infuser licensing applicants include, “to modify or raise the number of infuser licenses and modify or change the licensing application process to reduce or eliminate barriers.”

 

A few factors that the Department of Agriculture will consider while increasing or decreasing the number of infuser licenses include:

  • There are inadequate cannabis or cannabis infused products to meet the needs of medical cannabis patients.
  • The supply of cannabis infused products cannot meet the demand for both medical and recreational users
  • Perceived risk of adding more infuser organizations or establishing these organizations in certain areas
  • The security concerns recorded in all infuser organizations
  • A change in the federal law requiring the addition or reduction of infuser organizations
  • The department of agriculture does not have the capacity to deal with additional infuser organizations.

License Application

Applications for the infuser organization license will be done electronically. When submitting the application, the following are required:

  • A non-refundable application fee. Until January 2021, this amount will be $5,000. After this date, the department of agriculture may set another amount that is higher or lower. This fee will be deposited to the cannabis regulation fund
  • The infuser’s legal name, proposed physical address, and the names and addressed of all board members and principal officers
  • Comprehensive report with, “details of any administrative or judicial proceeding in which any of the principal officers or board members of the infuser
    (i) pled guilty, were convicted, 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, fined, or had a registration or license suspended or revoked”
  • The operating by-laws that the infuser will abide by including the monitoring system, security plan, and staffing plan
     
  • Experience in the cannabis industry, and a description that outlines the applicants experience working in a commercial kitchen or in a laboratory where products designed for human consumption are produced.
  • A detailed plan on how the infuser will handle its energy needs, water needs, and waste management

Grounds for Disqualification

The department of agriculture may disqualify an infuser organization application on the following grounds:

 

The applicant has not provided all the required information. Sometimes, “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.”

If an applicant fails to submit the complete information even after this notice, the application will be disqualified.

 

How Cannabis Infuser Licenses Will be Issued

The department of agriculture will be required to come up with a system that scores application by interested infuser organization applicants. Those scoring with the highest points will be awarded the infuser organization licenses first. The scoring will be based on the information the infuser organization applicant provides, the overall organization setup, and clarity of application form.

 

 

Other factors to be considered include:

  • How suitable the proposed facility is
  • Employee training plan suitability
  • Record-keeping and security plan
  • Social equity status
  • Environmental plan

The infuser organizations that plan to also engage the community will be awarded additional points. An infuser organization may show their desire to engage the 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”.

Can a License be Denied?

Yes, the department of agriculture will have a right to deny an application if they feel that the applicant did not follow the laid down procedures and requirements. A license application can be denied if any of the following situations arise:

 

  • All required materials are not submitted
  • If the applicant is not compliant with local zoning rules
  • If any of the board members and principal officers are less than 21 years in age
  • Early Approval of Adult Use Cultivation Center License Requirements

 

Cannabis Infuser Organization Application Requirements

Some things that infuser organizations will be required to have include:

 

  • A comprehensive operating document that details the inventory procedures, the monitoring systems, record keeping and the staffing plan
  • The security plan that the infuser organization implements must be reviewed by the police
  • Processing of cannabis infused products will be done in an enclosed place. Access to this area will also be restricted as outlined in the law. 
  • Cannabis infused products will only be distributed to the dispensing organization
  • The infuser organization is prohibited from directly or indirectly discriminating the prices when selling to different dispensing organizations. All products made by infuser organizations are required to be of high quality and priced the same for all buyers.

Final Thoughts on cannabis infuser license

The above are just some of the requirements set out by the law for those looking to establish infuser organizations. There will be more requirements as things are expected to keep on changing. Those interested in joining this industry will need to keep abreast with what is happening.

To succeed, you should get in touch with a cannabis attorney who can help you understand all the requirements needed to apply for a license. They will ensure that your application goes through the first time. With an attorney, it will also be easy to continue operating in compliance with the law.

Infuser licenses – the one you get if you want to make brownies for profit in Illinois.

Hey, I’m tom – find me by googling cannabis lawyer and going to my website cannabis industry lawyer to ask whatever question your team has.  With the infuser license – the subject today – Illinois has done something somewhat different than processor licenses out west – we’re gonna deep dive on this- so stick around and I will tell you how to get the extractions services you may be confused about when it comes to the infuser license.

So subscribe, ask a question in the comments, and give us a thumbs up and hope to see you Wednesdays on Legalization News – buut now, let’s dive into the Infuser license. 

The Illinois department of ag will issue 40 infuser licenses in July of 2020, and another 60 by December 2021.  We don’t know how many licenses will come after 2022 – but appears to be no limit by rules changed by the department of ag after that.  It will depend on the supply of such infused products being adequate – which I guess we will have to wait and see how your consumers set that.  Will you buy.

Space Cakes?  Pot brownies? Infused gummies, hard candies – or the gold standard for me…Lagunitas new THC-brau.  HiFi hops – now in California, Colorado – and probably by 2021 – Illinois as you know Lagunitas has a taproom in the Chicagoland area.

Of note – the infuser license is the cheapest when it comes to the license fee charged by the state.  It is 5 grand to apply, then 5 to win – then an annual $20,000 fee thereafter.

The applications will be coming out in January of 2020, hopefully we will get more rules – but we see the main things in the application in the law itself.

It’s not that different from other cannabis licenses.  You need to make lots of disclosures and plans about how the company shall operate, keep records, staffing plan, security plans and monitoring.  You have to disclose any administrative or judicial proceedings, be current on your taxes and child support, have background checks. The identities of anyone owning more than 5% of the license. Also describe your proposed employment practice – 

Here’s where Illinois’ brand of social equity in the cannabis industry reflecting the population of the state – those employment practices had to demonstrate how your company will inform, hire, educate – minorities, women, veterans, disabled people and have fair labor practices and worker protection.

Further – you have to demonstrate experience in or business practice that promote economic empowerment in disproportionately impacted area. These maps basically correlate to urban poverty in the state – they dot the state and the official map is online at the DCEO’s website. The applicant also has 20% of their points based on them being a social equity applicant.

Then the application gets back to the nitty gritty of the qualification of the infuser – they need to disclose details about the enclosed locked facility where the cannabis will be stored.  You must describe your experience operating a commercial kitchen or lab making products for human consumption. Then list any degrees or certificates and relevant experience you and your team have in these food related businesses. 

Then you , like the craft growers have to explain certain environmental and green practices to help conserve energy in your company. 

The scoring proceeds more like the craft grows as well with the points being awarded for:

  1. Suitability of the facility – so if you think you are going cheap on your facility – just quit trying. Make sure what you want to do – the building is good, secure, energy efficient as heck. 
  2. Suitability of employee training plan – get experience
  3. Security and record keeping policy – backbone of the industry- also includes 24 hour AV surveillance. 
  4. Infusing plan
  5. Product safety and labelling plan – aka make sure you can qualify doses easily and disclaim warnings of THC and child proof containers.
  6. Business plan
  7. Social equity points
  8. (small points -2% of so) Environmental points, diversity plan, Illinois and veteran owners & bonus community outreach for ties.

 Infusers may only have “raw materials” when it comes to cannabis – which the law defines as the extract they wish to infuse into their products. 

In fact the law prohibits infusers from performing the extraction of cannabis concentrate from cannabis flower that commonly defines a processor in the industry. (410 ILCS 705/35-25(n))

However, the department of Ag may one day unlock a processor license to do such extractions – as the infuser law allows that, but right out the gate – the standard model Infuser license has no extraction component – for that you need a craft grow license – so google that.

But if you want to make wonderful things with THC infused into it – feel free to like and subscribe or visit me at cannabis industry lawyer by googling cannabis lawyer or “infuser license” and I hope you and I are enjoying a Lagunitas cannabis brew by 2022.

Thomas Howard

Thomas Howard

Cannabis Lawyer

Thomas Howard has been in business for years and can help yours navigate towards more profitable waters.

Thomas Howard was on the ball and got things done. Easy to work with, communicates very well, and I would recommend him anytime.

R. Martindale

Cannabis Industry Lawyer is a Stumari designed website for Tom Howard’s law practice at the central Illinois lawyers firm of Hall, Rustom & Fritz.

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cannabis industry lawyer

316 SW Washington St, Suite 1A Peoria,
IL 61602, USA
Call Us 309-740-4033 || e-Mail Us tom@collateralbase.com

cannabis industry lawyer

150 S. Wacker Drive,
Suite 2400 Chicago IL, 60606, USA
Call Us 312-741-1009  || e-Mail Us tom@collateralbase.com
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