License Award, Issuance and Transferability

TITLE 8: AGRICULTURE AND ANIMALS CHAPTER I: ILLINOIS DEPARTMENT OF AGRICULTURE SUBCHAPTER v: LICENSING AND REGULATIONS PART 1300 CANNABIS REGULATION AND TAX ACT SECTION 1300.315 LICENSE AWARD, ISSUANCE AND TRANSFERABILITY Section 1300.315  License Award, Issuance and Transferability a)         The top-scoring applicants, as determined by Section 1300.307, that receive at least 75% of available points will be issued Craft Grower Licenses by the Department. b)         A Craft Grower License shall be issued for the specific location identified on the application, and is valid only for the named owner and the location for which it is issued. c) Should the applicant be awarded a Craft Grower License, the applicant shall pay a prorated fee of $40,000 prior to receiving the license. [410 ILCS 705/30-15(d)] d)         Transfer of License A Craft Grower License shall not be transferable in whole or in part, without Department approval, with the following exceptions: 1)         A Craft Grower License may be reissued, without charge, solely in the name of the surviving spouse or domestic partner of a deceased licensee if the license was issued in the names of both of the parties; and 2)         A Craft Grower License may be transferred, without charge, to an heir of a deceased licensee, as determined by the Probate Act of 1975.  For the purpose of considering the qualifications of the heir to receive a Craft Grower License, the Department will require a criminal background check and the heir will be subject to all other requirements of the Act and this Part. e)         Change of Location In the event that the Department approves a new location as meeting all requirements of the Act and this Part, the craft grower shall have a brief transition period of no more than 90 days, approved by the Department, to transfer its inventory and begin operations at the new location. 1)         The transition period shall not begin until the new location is ready to begin production. 2) A craft grower may not be located in an area zoned for residential use. [410 ILCS 705/30-30(e)] 3) A craft grower shall not be located within 1,500 feet of another craft grower or a cultivation center. [410 ILCS 705/30-30(o)] 4)         No product may be transferred to or cultivated at the new location prior to the beginning date of this approved transition period. 5)         Any product remaining at the original location past the transition period shall be destroyed in accordance with the provisions of Subpart I (Destruction of Cannabis). 6)         The craft grower shall notify the Department in writing or by electronic transmission once the transfer of inventory is complete and production has begun at the new location. 7)         Upon inspection and verification by the Department that the new location is in compliance with the Act and this Part, the Department will issue a license modification reflecting the new location. The modified license shall have the same expiration date as the previously issued license. f)         Sale of Stock The proposed sale of any outstanding or issued stock of a corporation licensed under the Act, or any proposed change in the officers or board members of the corporation, must be reported to the Department, and Department approval must be obtained before the changes are made. A fee of $1,000 will be charged for the processing of the change of stock ownership or corporate officers or board members. g)         The proposed change of any person or principal officer of any licensee must be reported to the Department and Department approval must be obtained before the changes are made. h)         A Craft Grower License shall not be leased or subcontracted, in whole or in part. i)          A Craft Grower License is issued upon the following condition: A craft grower may not either directly or indirectly discriminate in price between different dispensing organizations, craft growers, or infusers that are purchasing a like grade, strain, brand, and quality of cannabis or cannabis-infused product. Nothing in this subsection (i) prevents a cultivation center from pricing cannabis differently based on differences in the cost of manufacturing or processing, the quantities sold, such as volume discounts, or the way the products are delivered. [410 ILCS 705/20-30(e)] j)          A Craft Grower License is issued upon the following condition: It is unlawful for any person having a Craft Grower License or any officer, associate, member, representative, or agent of such licensee to offer or deliver money, or anything else of value, directly or indirectly to any person having an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any person connected with or in any way representing, or to any member of the family of, such person holding an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any stockholders in any corporation engaged in the retail sale of cannabis, or to any officer, manager, agent, or representative of the Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act to obtain preferential placement within the dispensing organization, including, without limitation, on shelves and in display cases where purchasers can view products, or on the dispensing organization's website. [410 ILCS 705/30-30(n)] k)         A Craft Grower License is issued upon the following condition: No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 3 Craft Grower Licenses. Further, no person or entity that is employed by, an agent of, or has a contract to receive payment from or participate in the management of a craft grower, is a principal officer of a craft grower, or entity controlled by or affiliated with a principal officer of a craft grower shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a Craft Grower License that would result in the person or entity owning or controlling in combination with any craft grower, principal officer of a craft grower, or entity controlled or affiliated with a principal officer of a craft grower by which he, she, or it is employed, is an agent of, or participates in the management of more than 3 Craft Grower Licenses. [410 ILCS 705/30-30(m)]