Illinois Application and Licensing - Round 1 Amanda Ostrowitz, Esq. (Regs Technology) Aaron Lachant, Esq. (MMLG)
Disclaimer We are not your lawyers. We are not giving you legal advice. This presentation does not create an attorney-client relationship. Do not act upon information presented in this webinar without seeking professional counsel. Cannabis remains a Schedule I drug and is illegal under federal law. This presentation is not intended to assist you in violating any federal law.
Agenda 1) Available Licenses 2) Meet the Regulators 3) Local Control and Licensing Opportunities 4) Social Equity 5) Dispensary Applications and Scoring 6) Craft Cultivation and Infuser Applications and Scoring 7) Application Strategies
Available License Types 1) Dispensary - Up to 75 adult-use licenses 2) Infuser - Up to 40 licenses available 3) Transporter - Unlimited licenses available 4) Craft Grower - Up to 40 licenses available 5) Cultivation Center - Limit of 30 total • Only current medical cultivators eligible until July 1, 2021 (maybe)
Meet The Regulators 1) Department of Agriculture 2) Department of Financial and Professional Regulation 3) Department of Public Health 4) Illinois Cannabis Regulation Oversight Officer 5) Department of Revenue 6) Department of Commerce and Economic Opportunity 7) Department of State Police
Local Control Municipalities/Counties can: • Enact time, place, and manner restrictions • Limit the number of cannabis businesses • Prohibit cannabis businesses • Allow social consumption • Impose taxes • However, they CANNOT regulate certain activities in more restrictive manner than the State
Licensing Opportunities • DeKalb • Round Lake Beach • Lombard • Worth • Chicago • Quincy • Woodstock • Rolling Meadows • Niles • Des Plaines • Galesburg • Rock Island • Northbrook • Canton • East Peoria • Mt. Prospect • Urbana • Peoria Heights • South Beloit • Metamora • Skokie • Chicago Heights • St. Charles
Social Equity Applicant Requirements • At least 51% ownership and control by one or more individuals who: • Have resided in a Disproportionately Impacted Area (“DIA”) for at last 5 of preceding 10 years; OR • Have been arrested for, convicted of, or adjudicated delinquent of any offense eligible for expungement under the Act; OR Is a member of an impacted family (regarding • arrests/convictions/adjudications) Applicant has at least 10 full-time employees and at least 51% of • current employees : Currently reside in a DIA; OR • Have been arrested for, convicted of, or adjudicated delinquent of any offense • eligible for expungement under the Act; OR • Is a member of an impacted family (regarding arrests/convictions/adjudications)
Initial Dispensary Application Period - Timeline Conditional Adult Use Dispensing Organization Licenses • October 1, 2019 • DFPR to release applications for Conditional Adult Use Dispensing Organization Licenses • January 1, 2020 • Last day to submit applications for conditional licenses • May 1, 2020 • DFPR will award up to 75 new dispensary licenses
BLS Region Licenses BLS Region Licenses Bloomington 1 Peoria 3 Cape Girardeau 1 Rockford 2 Carbondale-Marion 1 St. Louis 4 Champaign-Urbana 1 Springfield 1 Chicago-Naperville-Elgin 47 Northwest Illinois (nonmetropolitan) 3 Danville 1 West Central Illinois (nonmetropolitan) 3 East Central Illinois (nonmetropolitan) Davenport-Moline-Rock Island 1 2 Decatur 1 South Illinois (nonmetropolitan) 2 Kankakee 1
Conditional Adult Use Dispensing Organization - Application Requirements • $5,000 Fee • Licensed Private Security Contractor • Proposed Legal Name Contract • Proposed Bylaws • Procedures for record keeping/security • Evidence of SE status measures • Business Plan • Description of cannabis storage • Security Plan • Description of air treatment systems • Inventory Control Plan • Description of training and education • Floor Plan provided to agents • Description of ADA Features • Estimated volume of stored cannabis • Community Engagement Plan • Number of licenses Applicant is • Diversity Plan applying to
Conditional Adult Use Dispensing Organization - Application Requirements • Name, address, SSN, DOB for • Whether applicant plans to apply for each Principal Officer and Board grant/loan under the program Member • Certification will comply with the Act • For Principal Officers: • Agreement to respond to supplemental • Information about ownership requests for information interests in other cannabis • Reasonable assurance - no businesses detrimental impact on community • Disclosure of bankruptcy/default on • Statement that will not divert cannabis spousal or child support • Other info deemed necessary by the IL • Resume • Signature Cannabis Regulation Oversight Officer • For Board Members: • Summary of instances of past penalties incurred as manager or board member
Conditional Adult Use Dispensing Organization - Application Scoring Criteria Category Points Category Points Security and Recordkeeping 65 Environmental Plan 5 Business Plan, Financials, Operating and Illinois Ownership 65 5 Floor Plan Social Equity Applicant Status Veteran Ownership 50 5 Knowledge and Experience Diversity Plan 30 5 Employee Training Plan Community Engagement Plan (Bonus Points) 15 Up to 2 Labor and Employment Practices 5
Initial Application Periods Timelines Craft Growers, Infusing Organizations, Transporters • January 7, 2020 • DOA to release applications • March 15, 2020 • Last day to submit applications for first wave • July 1, 2020 up to 40 licenses for infusers • • up to 40 licenses for craft growers licenses for transporting organizations (no limit) •
Craft Grower - Application Requirements • $5,000 Fee • For Principal Officers and Board • Proposed Legal Name Members: • Proposed Physical Address • Name, address, SSN, DOB • Instances where individual pled guilty, was • Proposed Bylaws convicted, fined, or had registration/license • Identification of every person with revoked/suspended financial or voting interest of 5% or • Instances where individual managed/served greater in the Applicant on board of entity that pled guilty, was • For Principal Officers, Board convicted, fined, or had registration/license revoked/suspended Members, and Agents: • Verification from State Police that background check have been conducted • List of degrees, certifications, and relevant experience
Craft Grower - Application Requirements • Copy of Zoning Ordinance/Permit • Description of where cannabis will be and verification of compliance grown, harvested, manufactured, • Survey of facility packaged, prepped for distribution • Cultivation, processing, inventory, • Proposed Employment Practices packaging plans • Cultivation/Horticulture Business • Commitment to local waste Experience provision compliance • Experience in agriculture cultivation • Commitment to a technology techniques & industry standards standard for resource efficiency • Experience/practices that promote • Resource plan economic empowerment in DIA • Recycling Plan
Craft Grower - Application Scoring Criteria Categories Suitability of Proposed Facility Labor and Employment Practices Employee Training Plan Environmental Plan Security and Recordkeeping Illinois Ownership Cultivation Plan Veteran Ownership Product Safety and Labeling Plan Diversity Plan Labor and Employment Practices Community Engagement Plan (Bonus Points) Social Equity Status Other Criteria from the DOA
Infusing Organization - Application Requirements • $5,000 Fee • For Principal Officers and Board • Proposed Legal Name Members: • Proposed Physical Address • Name, address, SSN, DOB • Instances where individual pled guilty, was • Proposed Bylaws convicted, fined, or had registration/license • Identification of every person with revoked/suspended financial or voting interest of 5% or • Instances where individual managed/served greater in the Applicant on board of entity that pled guilty, was • For Principal Officers, Board convicted, fined, or had registration/license revoked/suspended Members, and Agents: • Verification from State Police that background check have been conducted • List of degrees, certifications, and relevant experience
Infusing Organization - Application Requirements • Copy of Zoning Ordinance/Permit • Experience/practices that promote and verification of compliance economic empowerment in DIA • Proposed Employment Practices • Experience with infusing products with • Processing, inventory, and cannabis concentrate packaging plans • Experience operating commercial • Resource plan kitchen/lab preparing products for • Recycling Plan human consumption • Description of facility/cannabis • Any other info required by rule storage
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