il-v50i42-8-ill-adm-code-1300: 8 Ill. Adm. Code 1300 — Cannabis Regulation and Tax Act

1) Heading of the Part: Cannabis Regulation and Tax Act 2) Code Citation: 8 Ill. Adm. Code 1300 3) Section Numbers: Proposed Actions: 1300.10 Amendment 1300.410 Amendment 1300.412 New Section 1300.415 Amendment 1300.420 Amendment 4) Statutory Authority: Implementing and authorized by the Cannabis Regulation and Tax Act [410 ILCS 705]. 5) A Complete Description of the Subjects and Issues Involved: This proposed rule establishes the process by which the Department will issue 45 cannabis infuser licenses as required by Public Act 104-463. All applicants must meet specified social equity criteria. If the Department receives more than 45 qualifying applications, it may conduct a lottery, in which applicants who can demonstrate experience operating a hemp business will receive an additional draw. The licensing process will proceed in five steps: (1) applicants submit a pre-application certifying that they meet the social equity requirements and, if applicable, that they have experience operating a hemp business; (2) the Department either conducts a lottery or confirms that it received 45 or fewer applications; (3) selected applicants submit documentation verifying that they meet the social equity requirements and, if claimed, the hemp business experience; (4) once that documentation is verified, applicants submit a full infuser application, including a business plan, security plan, and other required plans; and (5) upon receipt of a complete application, the Department issues the license 6) Published studies or reports, and sources of underlying data, used to compose this rulemaking: None 7) Will this proposed rulemaking replace an emergency rule currently in effect? No 8) Does this rulemaking contain an automatic repeal date? No 9) Do these proposed amendments contain incorporations by reference? No DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS 10) Are there any other proposed rulemakings pending on this Part? Yes Section Numbers: Proposed Actions: Illinois Register Citations: 1300.10 Amendment 50 Ill. Reg. 11504; August 14, 2026 1300.150 Amendment 50 Ill. Reg. 11504; August 14, 2026 1300.335 Repealed 50 Ill. Reg. 11504; August 14, 2026 1300.350 Amendment 50 Ill. Reg. 11504; August 14, 2026 1300.450 Amendment 50 Ill. Reg. 11504; August 14, 2026 11) Statement of Statewide Policy Objectives: This rulemaking does not create or enlarge any State mandate. 12) Time, Place, and Manner in which interested persons may comment on this proposed rulemaking: A 45-day written comment period will begin on the day the Notice of Proposed Amendments appears in the Illinois Register. Please mail or email written comments on the proposed rulemaking to the attention of: Sam McGee Illinois Department of Agriculture State Fairgrounds, P. O. Box 19281 Springfield, IL 62794-9281 (217) 558-3741 Samuel.McGee@illinois.gov 13) Initial Regulatory Flexibility Analysis: A) Description of the type of small business, not for profit corporations or small municipalities subject to the proposed amendments: Prospective cannabis infusers would be affected. B) Description of the proposed reporting, bookkeeping and other procedures required for compliance with the amendments: See attached rulemaking. C) Description of the types of professional skills necessary for compliance: None 14) Small Business Economic Impact Analysis: Determine whether the rulemaking has an adverse impact on small business (fewer than 50 full-time employees or less than $4,000,000 in gross annual sales). An adverse impact DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS is one that can be reasonably foreseen on small businesses including, but not limited to, a loss of customers, loss of revenue, or increased business expenses. If the proposed amendment has an adverse impact on small business, the agency must provide an economic impact analysis including: None A) Types of businesses subject to the proposed amendments: 11 Agriculture, Forestry, Fishing and Hunting B) Estimated number of small business subject to the proposed amendment: Approximately 45 cannabis infuser applicants. C) Categories that the agency reasonably believes the rulemaking will impact, including: ii. regulatory requirements D) Projected reporting, recordkeeping and other administrative costs for compliance with the proposed amendment: None E) Type of professional skills necessary for preparation of any report or record required for compliance with the proposed amendment: None F) Statement of the probable positive or negative economic effect on small business: Positive but minimal. G) Description of any less intrusive or costly alternative methods of achieving the purposes of the amendment: None 15) Regulatory Agenda on which this rulemaking was summarized: July 2026 16) Any other information or justification for the proposed rule or amendment that the agency believes would be helpful to the public regarding the proposed rule or amendment. For example, a discussion or analysis of the benefits of the proposed rule or amendment is projected to have on the Illinois public, consumers, investors or other similar groups. None The full text of the Proposed Amendments begins on the next page: DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS TITLE 8: AGRICULTURE AND ANIMALS CHAPTER I: DEPARTMENT OF AGRICULTURE SUBCHAPTER v: LICENSING AND REGULATIONS PART 1300 CANNABIS REGULATION AND TAX ACT SUBPART A: GENERAL PROVISIONS Section 1300.10 Definitions and Incorporations 1300.20 Referenced Materials 1300.30 Scope and Application 1300.40 Operation of a Cannabis Business Establishment SUBPART B: ADULT USE CULTIVATION CENTERS Section 1300.100 Application, Selection, and Operation of Early Adult Use Cultivation Center License 1300.102 Application for Conditional Adult Use Cultivation Center License 1300.103 Financial Disclosure 1300.105 License Selection Criteria 1300.110 License Denial and Prohibitions 1300.115 License Award, Issuance and Transferability 1300.120 License Renewal 1300.130 Modifications and Alterations 1300.145 Background Check 1300.150 Specifications 1300.155 Records 1300.160 Signage 1300.165 Agents and Identification Cards 1300.170 Operations – Plant Production 1300.175 Operations – Infused or Processed Products 1300.180 Inventory 1300.185 Security 1300.195 Transportation SUBPART C: COMMUNITY COLLEGE DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS CANNABIS VOCATIONAL PILOT PROGRAM Section 1300.200 Definitions 1300.202 License Application 1300.205 License Selection Criteria 1300.215 License Transferability 1300.220 License Renewal 1300.230 Modifications and Alterations 1300.235 License Awards and Denials 1300.245 Agents and Identification Cards 1300.265 Background Check 1300.275 Program Operations 1300.280 Enforcement 1300.295 Requests for Information SUBPART D: CRAFT GROWERS Section 1300.300 License Application 1300.305 Financial Disclosure 1300.307 License Selection Criteria 1300.310 License Denial and Prohibitions 1300.315 License Award, Issuance and Transferability 1300.320 License Renewal 1300.330 Modifications and Alterations 1300.335 Canopy Modification 1300.345 Background Check 1300.350 Specifications 1300.355 Records 1300.360 Signage 1300.365 Agents and Identification Cards 1300.370 Operations – Plant Production 1300.375 Operations – Infused or Processed Products 1300.380 Inventory 1300.385 Security 1300.395 Transportation SUBPART E: INFUSERS Section 1300.400 License Application 1300.405 Financial Disclosure 1300.407 License Selection Criteria 1300.410 License Denial and Prohibitions 1300.412 Social Equity Experience Lottery Infuser Licenses 1300.415 License Award, Issuance and Transferability 1300.420 License Renewal 1300.430 Modifications and Alterations 1300.445 Background Check 1300.450 Specifications 1300.455 Records 1300.460 Signage 1300.465 Agents and Identification Cards 1300.470 Operations – General Requirements 1300.475 Operations – Infused Products 1300.480 Inventory 1300.485 Security 1300.495 Transportation SUBPART F: TRANSPORTERS Section 1300.500 License Requirements 1300.510 License Application 1300.520 License Selection Criteria 1300.530 License Denial and Prohibitions 1300.540 License Issuance and Transferability 1300.550 License Renewal 1300.560 Modifications and Alterations 1300.570 Background Check 1300.580 Records 1300.590 Agents and Identification Cards 1300.595 Operations 1300.596 Transfer Sites SUBPART G: ENFORCEMENT AND IMMUNITIES Section 1300.600 Investigations 1300.610 License Suspension 1300.620 License Revocation 1300.630 Fines 1300.640 Administrative Hearings 1300.650 Petition for Rehearing SUBPART H: LABORATORY TESTING Section 1300.700 Laboratory Testing SUBPART I: DESTRUCTION OF CANNABIS Section 1300.800 Scope 1300.810 Notice to the Department 1300.820 Method of Destruction 1300.830 Records 1300.840 Disposal SUBPART J: CANNABIS PACKAGING AND LABELING Section 1300.900 Registration 1300.910 Registration Fee 1300.920 Container and Packaging Requirements 1300.930 Labeling Requirements 1300.940 Warnings SUBPART K: CANNABIS PLANT MONITORING SYSTEM Section 1300.1000 General Requirements 1300.1010 Tag Requirements 1300.1020 Tagging of Cannabis Plants and Products 1300.1030 Reporting 1300.1040 Transfer of Cannabis and Cannabis Products DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS 1300.1050 Loss of Access and System Reconciliation 1300.APPENDIX A Authorized Pesticides AUTHORITY: Implementing and authorized by the Cannabis Regulation and Tax Act [410 ILCS 705]. SOURCE: Emergency rules adopted at 44 Ill. Reg. 1466, effective January 1, 2020, for a maximum of 180 days; emergency amendment to emergency rule at 44 Ill. Reg. 8349, effective April 30, 2020, for the remainder of the 180 days; adopted at 44 Ill. Reg. 10364, effective June 3, 2020; expedited correction at 44 Ill. Reg. 16943, effective June 3, 2020; amended at 48 Ill. Reg. 1862, effective January 22, 2024; amended at 48 Ill. Reg. 11942, effective July 29, 2024; amended at 50 Ill. Reg. 7050, effective May 1, 2026; amended at 50 Ill. Reg. ______, effective ____________. SUBPART A: GENERAL PROVISIONS Section 1300.10 Definitions and Incorporations Definitions for this Part can be located in Section 10 of the Cannabis Regulation and Tax Act [410 ILCS 705]. The following definitions shall also apply to this Part: "Act" means the Cannabis Regulation and Tax Act [410 ILCS 705]. "Adult Use Cultivation Center License" means a license issued by the Department of Agriculture that licenses a person to act as a cultivation center under the Act and any administrative rule made in furtherance of the Act. [410 ILCS 705/1-10] "Advertise" means to engage in promotional activities including, but not limited to: newspaper, radio, Internet and electronic media, and television advertising; the distribution of fliers and circulars; and the display of window and interior signs. [410 ILCS 705/1-10] "Alarm System" means a device or series of devices intended to summon law enforcement personnel during, or as a result of, an alarm condition. Devices may include hard-wired systems and systems interconnected with a radio frequency method such as cellular or private radio signals that emit or transmit a remote or local audible, visual or electronic signal; motion detectors, pressure switches, duress alarms (a silent system signal generated by the entry of a designated code DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS into the arming station to indicate that the user is disarming under duress); panic alarms (an audible system signal to indicate an emergency situation); and hold-up alarms (a silent system signal to indicate that a robbery is in progress). The Department and law enforcement agencies shall have the ability to access a cultivation center's security alarm system in real-time. "Alterations" means any change at a cannabis business establishment that does not alter the physical structure of the building or any building system, but that alters, adds, or removes security measures or operational controls used to protect against diversion or theft of cannabis or cannabis operations; alters, adds, or removes workflows or production equipment used for the handling, production, tracking, or storage of cannabis and cannabis products; or changes the functional use of a room or space used for such activities, including changes that alter or deviate from the approved Security Plan or Operational Management and Practices Plan. "Applicant" means the proposed licensee name as stated on the license application. "Area Zoned for Residential Use" means an area zoned exclusively for residential use; provided that, in municipalities with a population over 2,000,000 people, an "area zoned for residential use" means an area zoned as a residential district or a residential planned development. An area that allows non-residential uses shall not be considered an area zoned exclusively for residential use. "Batch" means a specific quantity of homogeneous cannabis or cannabis product that is one of the following types: "Plant Batch" means a grouping of immature plants. "Harvest Batch" means a specifically identified quantity of dried flower or trim, leaves, or other cannabis plant matter that is harvested at the same time. "Production Batch" means either: An amount of cannabis concentrate or extract produced in one production cycle using the same extraction methods and standard operating procedures; or An amount of a type of cannabis product produced in one production cycle using the same formulation and standard operating procedures. Each production batch shall be assigned a unique identifier for the purpose of tracking, quality control, testing, labeling, and potential recalls, and shall be traceable to one or more harvest batches. "Biosecurity" means a set of preventative measures designed to reduce the risk of transmission of infectious diseases in crops, quarantined pests, invasive alien species, and living modified organisms. "Cannabinoid" means any chemical compound that interacts with the human endocannabinoid system and is structurally related to the class of molecules known as phytocannabinoids, including, but not limited to, tetrahydrocannabinols, cannabidiols, cannabinols, cannabigerols, their acids, isomers, analogs, salts, and derivatives, regardless of source or method of production. "Cannabis" means marijuana, hashish, and other substances that are identified as including any parts of the plant Cannabis sativa and including derivatives or subspecies, such as indica, of all strains of cannabis, whether growing or not; the seeds of that plant; the resin extracted from any part of the plant; and any compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin, including tetrahydrocannabinol (THC) and all other naturally produced cannabinol derivatives, whether produced directly or indirectly by extraction; however, "cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted from it), fiber, oil or cake, or the sterilized seed of the plant that is incapable of germination. "Cannabis" does not include industrial hemp as defined and authorized under the Industrial Hemp Act. "Cannabis" also means cannabis flower, concentrate and cannabis-infused products. [410 ILCS 705/1-10] "Cannabis Business Establishment" means a cultivation center, craft grower, infuser, dispensing organization, or transporter. [410 ILCS 705/1-10] "Cannabis Concentrate" means a product derived from cannabis that is produced by extracting cannabinoids, including tetrahydrocannabinol (THC), from the DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS plant through the use of propylene glycol, glycerin, butter, olive oil, or other typical cooking fats; water, ice, or dry ice; or butane, propane, CO 2 ethanol, or isopropanol and with the intended use of smoking or making a cannabis-infused product. The use of any other solvent is expressly prohibited unless, and until, it is approved by the Department of Agriculture. [410 ILCS 705/1-10] "Cannabis Container" means a sealed, traceable container or package used for the purpose of containment of cannabis or cannabis-infused product during transportation. [410 ILCS 705/1-10] "Cannabis-infused Product" means a beverage, food, oil, ointment, tincture, topical formulation, or another product containing cannabis that is not intended to be smoked. [410 ILCS 705/1-10] "Cannabis Plant Monitoring System" or "Plant Monitoring System" means a system that includes, but is not limited to, testing and data collection established and maintained by the cultivation center, craft grower, infuser, or processing organization and that is available to the Department of Revenue, the Department of Agriculture, the Department of Financial and Professional Regulation, and the Illinois State Police for the purposes of documenting each cannabis plant and monitoring plant development throughout the life cycle of a cannabis plant cultivated for the intended use by a customer from seed planting to final packaging. [410 ILCS 705/1-10] "Cannabis Product" means a product containing cannabis. "Cannabis Waste" means all cannabis byproduct, scrap, harvested cannabis, and cannabis-infused products not intended for distribution to a dispensing organization. "Canopy Space" means the surface area utilized to produce mature plants calculated in square feet and measured using the outside boundaries of any area that includes mature marijuana plants, including all the space within the boundaries. The square footage of canopy space is measured horizontally starting from the outermost point of the furthest mature flowering plant in a designated growing space and continuing around the outside of all mature flowering plants located within the designated growing space. If growing spaces are stacked vertically, each level of space shall be measured and included as part of the total canopy space measurement. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS "Community College Cannabis Vocational Training Pilot Program Faculty Participant" means a person who is 21 years of age or older, licensed by the Department of Agriculture, and employed or contracted by an Illinois community college to provide student instruction using cannabis plants at an Illinois Community College. [410 ILCS 705/1-10] "Conditional Adult Use Cultivation Center License" or "CAUCCL" means a license awarded to top-scoring applicants for an Adult Use Cultivation Organization License that reserves the right to an Adult Use Cultivation Center License if the applicant meets certain criteria set forth in this Part. [410 ILCS 705/1-10] A Conditional Adult Use Cultivation Center Licensee or applicant may also be referred to as a "cultivation center". "Craft Grower" means a facility operated by an organization or business that is licensed by the Department to cultivate, dry, cure, and package cannabis and perform other necessary activities to make cannabis available for sale, at a dispensing organization, or use, at an infuser. A craft grower may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering state. The Department may authorize an increase or decrease of flowering stage cultivation space in increments of 3,000 square feet by rule based on market need, craft grower capacity, and the licensee's history of compliance or noncompliance, with a maximum space of 14,000 square feet for cultivating plants in the flowering stage, which must be cultivated in all stages of growth in an enclosed and secure area. A craft grower may share premises with an infuser or a dispensing organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership. [410 ILCS 705/1-10] "Craft Grower Agent" means a principal officer, board member, employee, or other agent of a craft grower who is 21 years of age or older. [410 ILCS 705/1- 10] "Crop Input" means any substance that is used for the production of adult use cannabis. This may include pesticides as defined by the Illinois Pesticide Act [415 ILCS 60/4] or the American Association of Pesticide Control Officials, fertilizers as defined by the Illinois Fertilizer Act of 1961 [505 ILCS 80/3] or the American Association of Plant Food Officials, and soil amendments as defined by the Soil Amendment Act [505 ILCS 120/10]. "Cultivation Center" means a facility operated by an organization or business that is licensed by the Department to cultivate, process, transport (unless otherwise limited by the Act), and perform other necessary activities to provide cannabis and cannabis-infused products to cannabis business establishments. [410 ILCS 705/1-10] "Cultivation Center Agent" means a principal officer, board member, employee, or other agent of a cultivation center who is 21 years of age or older. [410 ILCS 705/1-10] "Department" means the Illinois Department of Agriculture. "DFPR" means the Illinois Department of Financial and Professional Regulation. "Director of Agriculture" or "Director" means the Director of the Illinois Department of Agriculture. "Disproportionately Impacted Area" means a census tract or comparable geographic area that satisfies the following criteria as determined by the Department of Commerce and Economic Opportunity, that: Meets at least one of the following criteria: The area has a poverty rate of at least 20% according to the latest federal decennial census; 75% or more of the children in the area participate in the federal free lunch program according to reported statistics from the State Board of Education; At least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program; or The area has an average unemployment rate, as determined by the Illinois Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the United States Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application; and Has high rates of arrest, conviction, and incarceration related to the sale, possession, use, cultivation, manufacture, or transport of cannabis. [410 ILCS 705/1-10] "DOR" means the Illinois Department of Revenue. "DPH" means the Illinois Department of Public Health. "Early Approval Adult Use Cultivation Center License" or "Early Approval License" means a license that permits a medical cannabis cultivation center licensed under the Compassionate Use of Medical Cannabis Pilot Program Act as of the effective date of the Cannabis Regulation and Tax Act to begin cultivating, infusing, packaging, transporting (unless otherwise provided in the Act), and selling cannabis to cannabis business establishments for resale to purchasers as permitted by the Act as of January 1, 2020. [410 ILCS 705/1-10] "Enclosed, Locked Facility" means a room, greenhouse, building, or other enclosed area equipped with locks or other security devices that permit access only by cannabis business establishment agents working for the licensed cannabis business establishment or acting pursuant to the Act to cultivate, process, store, or distribute cannabis. [410 ILCS 705/1-10] "Enclosed, Locked Space" means a closet, room, greenhouse, building or other enclosed area equipped with locks or other security devices that permit access only by authorized individuals under the Act. "Enclosed, locked space" may include: A space within a residential building that is the primary residence of the individual cultivating 5 or fewer cannabis plants that are more than 5 inches tall and includes sleeping quarters and indoor plumbing. The space must only be accessible by a key or code that is different from any key or code that can be used to access the residential building from the exterior; or DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS A structure, such as a shed or greenhouse, that lies on the same plot of land as a residential building that includes sleeping quarters and indoor plumbing and is used as a primary residence by the person cultivating 5 or fewer cannabis plants that are more than 5 inches tall, such as a shed or greenhouse. The structure must remain locked when it is unoccupied by people. [410 ILCS 705/1-10] "Enhanced Pre-Roll" or "Enhanced Flower" means a final form cannabis product that contains both cannabis and cannabis concentrate. "Facility" means the physical structures associated with a licensee. "Financial Interest" means any actual or future right to ownership, investment or compensation arrangement with another person, either directly or indirectly, through business, investment, spouse, parent or child, in a cultivation center. Financial interest does not include ownership of investment securities in a publicly-held corporation that is traded on a national securities exchange or over- the-counter market in the United States, provided the investment securities held by the person and the person's spouse, parent or child, in the aggregate, do not exceed one percent ownership in the cultivation center. "Fingerprint-based Criminal History Records Check" means a fingerprint-based criminal history records check conducted by the Illinois State Police in accordance with the Uniform Conviction Information Act (UCIA) [20 ILCS 2635/10] or 20 Ill. Adm. Code 1265.30 (Electronic Transmission of Fingerprint Requirements). "Immature Plant" means a cannabis plant that measures less than 16 inches in total height as measured from the soil or growing medium to the highest point of the plant. "Impacted Family" means an individual who has a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the effective date of the Act, was arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under the Act. "Infuser" means a facility operated by an organization or business that is licensed by the Department to directly incorporate cannabis or cannabis concentrate into DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS a product formulation to produce a cannabis-infused product. [410 ILCS 705/1- 10] "Infuser Agent" means a principal officer, board member, employee, or agent of an infuser. "Input" means a cannabinoid derivative that includes cannabidiol (CBD), cannabigerol (CBG), tetrahydrocannabivarin (THCV), or cannabinol (CBN), in the form of an isolate, derived from hemp, that is used as a raw material in the manufacture of cannabis products by a Department-licensed cultivation center, craft grower, or infuser. This definition does not include "crop inputs" as that term is defined in this Part. "Isolate" means a concentrate that is more than 95% comprised of a single cannabinoid compound created by an extraction process. "ISP" means the Illinois State Police. "Label" means a display of written, printed or graphic matter on the immediate container of any product containing cannabis. "Laboratory" means an independent laboratory located in Illinois and approved by the Department to have custody and use of controlled substances for scientific and medical purposes and for purposes of instruction, research or analysis. "Labor Peace Agreement" means an agreement between a cannabis business establishment and any labor organization recognized under the National Labor Relations Act, referred to in this Act as a bona fide labor organization, that prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economics interference with the cannabis business establishment. This agreement means that the cannabis business establishment has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis business establishment's employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis business establishment's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment. This type of agreement shall DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS not mandate a particular method of election or certification of the bona fide labor organization. [410 ILCS 705/1-10] "Livescan" means an inkless electronic system designed to capture an individual's fingerprint images and demographic data (name, sex, race, date of birth, etc.) in a digitized format that can be transmitted to ISP for processing. The data is forwarded to the ISP Bureau of Identification (BOI) over a virtual private network (VPN) and then processed by ISP's Automated Fingerprint Identification System (AFIS). Once received at the BOI for processing, the inquiry may, as permitted by law, be forwarded to the Federal Bureau of Investigation (FBI) electronically for processing. "Livescan Vendor" means an entity licensed by DFPR to provide commercial fingerprinting services under the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004. "Manufacturing" or "Manufacture" means the process of converting harvested cannabis material into a finished product by manual labor and/or machinery designed to meet a specific need or customer expectation, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. "Modification" means any change at a cannabis business establishment that modifies the physical layout, floor area, or structural configuration of the facility, including the addition, removal, or relocation of any wall, partition, or door opening; modifies the design, capacity, or performance of any building system, including mechanical, electrical, plumbing, fire protection, or life safety systems; or results in a change of occupancy or use as defined by applicable building or fire codes. "Monitoring" means the continuous and uninterrupted video surveillance of production activities and oversight for potential suspicious actions. Monitoring includes video surveillance for the purpose of summoning a law enforcement officer to the premises during alarm conditions. "Motor Vehicle" means a self-propelled vehicle as defined in Section 1-146 of the Illinois Vehicle Code [625 ILCS 5/1-146]. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS "Natural Processing" or "Naturally Produced" means the preparation of the harvested cannabis without significantly changing its physical form. "Operational and Management Practices Plan" means a narrative description of all practices that will be employed at the cultivation center for the production of cannabis and cannabis-infused products. The plan shall include, but is not limited to: The types and quantities of cannabis products that will be produced at the cultivation center; The methods of planting (seed or clones), harvesting, drying and storage of cannabis; The estimated quantity of waste material to be generated and plans for subsequent disposal; The quantity and proposed method for disposal for all crop inputs utilized for plant production; Methods for training employees for the specific phases of production; Biosecurity measures to be implemented for plant production and edible infused product production; Planned response to discrepancies in accounting of product inventories; Sampling strategy and quality testing for labeling purposes; Procedures to follow for proper labeling; and Procedures to follow for handling mandatory and voluntary recalls of cannabis or cannabis-infused products. "Ownership and Control" means ownership of at least 51% of the business, including corporate stock if a corporation, and control over the management and day-to-day operations of the business and an interest in the capital, assets, and profits and losses of the business proportionate to percentage of ownership. [410 ILCS 705/1-10] DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS "Package Tag" means the tag that is labeled with a unique serial number provided by the Department or the Department's designee for attaching to batches of cannabis or cannabis product. "Plant Tag" means the tag that is labeled with a unique serial number and provided by the Department or the Department's designee for attaching to a cannabis plant. "Primary Residence" means a dwelling where a person usually stays or stays more often than other locations. It may be determined by, without limitation, presence; tax filings; address on an Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card; or voter registration. No person may have more than one primary residence. [410 ILCS 705/1-10] "Principal Officer" includes: A cannabis business establishment applicant or licensed cannabis business establishment's board member, owner with more than 1% interest of the total cannabis business establishment or more than 5% interest of the total cannabis business establishment of a publicly traded company; President, vice president, secretary, treasurer, partner, officer, member, manager member, or person with a profit sharing, financial interest, or revenue sharing arrangement. The definition includes a person with authority to control the cannabis business establishment, a person who assumes responsibility for the debts of the cannabis business establishment, and a person who is further defined in the Act. [410 ILCS 705/1-10] "Production" or "To Produce" means the planting, preparation, cultivation, growing, harvesting, propagation, compounding, conversion, natural processing, or manufacturing of cannabis, and includes any packaging or repackaging of the substance, or labeling or relabeling of its container. "Processing organization" or "processor" means a facility operated by an organization or business that is licensed by the Department of Agriculture to DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS either extract constituent chemicals or compounds to produce cannabis concentrate or incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis product. [410 ILCS 705/1-10] "Qualified Applicant" means an applicant for a cultivation center permit who receives at least the minimum required score in each category required by the application. "Qualified Social Equity Applicant" means a Social Equity Applicant who has been awarded a conditional license under the Act to operate a cannabis business establishment. [410 ILCS 705/1-10] "Resided" means an individual's primary residence was located within the relevant geographic area as established by 2 of the following: A signed lease agreement that includes the applicant's name; A property deed that includes the applicant's name; School records; A voter registration card; An Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card; A paycheck stub; A utility bill; or Any other proof of residency or other information necessary to establish residence as provided by this Part. [410 ILCS 705/1-10] "Restricted Area" means a building, room or other contiguous area upon the permitted premises where cannabis is grown, cultivated, harvested, stored, weighed, packaged, sold or processed for sale, under control of the permitted facility. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS "Sale" means any form of delivery, which includes barter, exchange or gift, or offer therefor, and each such transaction made by any person whether as principal, proprietor, agent, servant or employee. "Secretary of State" or "SOS" means the Illinois Secretary of State. "Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria: An applicant with at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area; An applicant with at least 51% ownership and control by one or more individuals who: Have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under the Act; or Is a member of an impacted family; For applicants with a minimum of 10 full-time employees, an applicant with at least 51% of current employees who: Currently reside in a Disproportionately Impacted Area; or Have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under the Act or member of an impacted family. "Social Equity Experience Lottery Infuser License" or "SEEL License" means an infuser license awarded to a licensee pursuant to the application process in Section 1300.412. "THC" means delta-9 tetrahydrocannabinol. "THCA" means tetrahydrocannabinolic acid. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS "Total THC" means the cannabinoid content determined by the calculation of THC + (THCa x 0.877). "Transportation Activities" means the transport of cannabis on behalf of a cannabis business establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program. "Transporter" means an organization or business that is licensed by the Department of Agriculture to transport cannabis or cannabis-infused product on behalf of a cannabis business establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program. [410 ILCS 705/1-10] "Transporter Agent" or "transporting organization agent" means a principal officer, board member, employee, or agent of a transporting organization. "Transporter Transfer Site" or "Transfer Site" means a secure physical facility, approved by the Department, operated by a transporter, that the transporter may use solely to transfer cannabis and cannabis products between vehicles registered to the transporter and/or to switch drivers who are transporting organization agents. "Unique Serial Number" means the alphanumeric code or designation used for reference to a specific plant and any cannabis or cannabis product derived or manufactured from that plant. "Usable Cannabis" means the seeds, leaves, buds, and flowers of the cannabis plant, and any mixture or preparation thereof, including the resin extracted from any part of the plant, but does not include the stalk and roots of the plant. It does not include the weight of any non-cannabis ingredients combined with cannabis, such as ingredients added to prepare a topical administration, food, or drink. (Source: Amended at 50 Ill. Reg. ______, effective ____________) SUBPART E: INFUSERS Section 1300.410 License Denial and Prohibitions DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS a) An application for an Infuser License must be denied if any of the following conditions are met: 1) The applicant failed to submit the materials required by this Part; 2) The applicant would not be in compliance with local zoning rules issued in accordance with the Act; 3) One or more of the prospective principal officers or board members has violated the Act or this Part; 4) One or more of the prospective principal officers or board members has served as a principal officer or board member for a registered dispensing organization or infuser that has had its registration revoked or suspended; 5) One or more of the principal officers or board members is under 21 years of age; 6) A principal officer or board member of the infuser has failed a background check under Section 5-20 of the Act; 7) The person has submitted an application for license that contains false information; 8) If the licensee, principal officer, board member, person having a financial or voting interest of 5% or greater in the licensee, or an agent of these entities is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois; [410 ILCS 705/35-20] 9) The infuser is located in an area zoned for residential use. b) The Department may suspend or revoke an Infuser License for violations of the Act and/or this Part. c) No infuser license issued by the Department shall be issued to a person who is licensed by any licensing authority as a cultivation centeran infuser, or to any partnership, corporation, limited liability company, or trust or any subsidiary, affiliate, or any other form of business enterprise having more than 10% legal, equitable, or beneficial interest, directly or indirectly, in a person licensed in this State as a cultivation centeran infuser, or to any principal officer, agent, employee, or human being with any form of ownership or control over a cultivation centeran infuser except for a person who owns no more than 5% of the outstanding shares of a cultivation centeran infuser whose shares are publicly traded on an exchange within the meaning of the Securities Exchange Act of 1934. (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 1300.412 Social Equity Experience Lottery Infuser Licenses a) The Department will develop an application, submission, review, and deficiency process to issue at least 45 social equity experience lottery infuser licenses by January 1, 2027, and may issue up to 100 additional social equity experience lottery infuser licenses beginning January 1, 2028, pursuant to the requirements in Section 35-18 of the Act and this Part. b) The Department may issue infuser licenses under this Section pursuant to the social equity experience lottery criteria as specified in Section 35-18 of the Act. c) The requirements contained in this Section 1300.412 will only apply to the social equity experience lottery infuser licenses issued pursuant to Section 35-18 of the Act and Section 1300.400 of this Part. d) Social Equity Experience Lottery (SEEL) Infuser License Application Process 1) The social equity experience lottery infuser license application process will be a three-part process, consisting of a preapplication, SEEL application and verification of social equity experience lottery infuser license criteria, and infuser license new business application. 2) The preapplication will contain, at a minimum, basic information identifying the applicant that is requesting the social equity experience lottery infuser license and will require a non-refundable fee. 3) If more than 45 applications are received, the Department may conduct a lottery to determine how licenses are allocated. 4) If a lottery is conducted, successful applicants will be notified by the Department that a SEEL application, including supporting documents must be filed to verify that the social equity experience lottery criteria specified in Section 35-18(a)(1), Section 35-18(a)(2), and Section 35- 18(b) if applicable, of the Act have been met. 5) If a lottery is not conducted, all applicants will be notified by the Department that a SEEL application, including supporting documents must be filed to verify that the social equity experience lottery criteria specified in Section 35-18(a)(1) and Section 35-18(a)(2) of the Act have been met. 6) After the Department verifies the accuracy of the documents proving eligibility, verified applicants will be required to complete an infuser license new business application, including supporting documentation and exhibits. e) Social Equity Experience Lottery Infuser License Preapplication Requirements 1) The Department will make available a preapplication for applicants in a manner determined by the Department. 2) After the preapplication is made available, the preapplication submission window will remain open for submissions for a minimum of 10 business days. Preapplications must be submitted by 5:00 P.M. Central Time on the last day of the preapplication window and no preapplication will be accepted after the preapplication submission window closes. 3) The Department will publish a list of supporting documents (e.g., mortgage statements, bank statement, government-issued identification) that an applicant must submit in order to prove it meets the criteria required in Section 35-18(a)(1), Section 35-18(a)(2), and Section 35-18(b) if applicable, of the Act to be issued a social equity experience lottery infuser license. This list will be published on the Department's website on the same day the Department opens the preapplication submission window. 4) A principal officer cannot be on more than one preapplication. The Department will require that all applicants provide each of its principal DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS officers' social security numbers or individual taxpayer identification number, and any other unique, identifying information, required in the preapplication to ensure that an individual principal officer is not listed as a principal officer on more than one preapplication. 5) All applicants shall pay a non-refundable preapplication fee of $2,500, to be deposited in the Cannabis Regulation Fund. 6) A preapplication will be accepted only if it is complete. All incomplete preapplications will be denied. A completed preapplication will include the non-refundable preapplication fee and, at a minimum, the following information: A) the applicant's proposed entity name; B) the name of the person or persons filling out the preapplication; C) the names, social security numbers or individual taxpayer identification number, home addresses, birthdates, phone numbers, and email addresses, for all proposed principal officers of the proposed entity; D) the identification of and contact information, including phone number and email address, for a primary and alternate contact of the proposed entity, at least one of whom must also be a principal officer; E) attestation that if awarded an opportunity for a social equity experience lottery infuser license, the business entity is 51% or more owned or controlled by one or more individuals who each meet the geographic and social equity criteria pursuant to Section 35-18 of the Act; and F) if appropriate, attestation that on or before May 1, 2026, the applicant was registered with the Department as an industrial hemp processor under the Industrial Hemp Act, held an industrial hemp cultivation license issued by the Department under the Industrial Hemp Act, or operated a business in Illinois that derived the DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS majority of its gross receipts from the sale or manufacture of products containing hemp or hemp-derived cannabinoids. 7) If a principal officer identified on a preapplication dies after the applicant has submitted its preapplication but prior to the conducting of any lottery, the applicant does not need to inform the Department unless the applicant becomes eligible for a social equity experience lottery infuser license after the lottery is conducted. If the applicant becomes eligible, the applicant is required to follow the process identified in this Section. f) The Social Equity Experience Lottery Process 1) If the Department receives more than 45 applications, the Department may conduct a lottery before determining applicants' eligibility for and issuing the social equity experience lottery infuser license. 2) Prior to conducting a lottery pursuant to Section 35-18 of the Act, the Department will publish on its website a list of applicants eligible to participate in the lottery. This list is comprised of all participants who have filed timely and complete preapplications and is neither a final agency decision nor contestable. Any opportunity to contest the list will not be considered a rehearing or an action for administrative review. 3) Applicants that demonstrate hemp experience as outlined in Section 35- 18(b) of the Act will be eligible for a bonus draw in the lottery. 4) The lottery will be conducted by lot on one day, to the extent possible, on a date designated by the Department and published on its website. 5) The Department will publish the official draw results on its website. g) SEEL Application, Including Verification of the Social Equity Experience Lottery Infuser License Criteria 1) After the Department publishes the official draw results, the Department will conduct a verification process to confirm that drawn applicants, or all applicants if a lottery is not necessary, meet the eligibility criteria pursuant to Section 35-18(a)(1), Section 35-18(a)(2) and Section 35-18(b), if applicable, of the Act. Applicants will have 45 days from notification to DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS submit the SEEL application, including supporting documentation to satisfy the criteria. 2) The applicant must satisfy one of the following geographic criteria pursuant to Section 35-18(a)(1) of the Act: A) the individual must have resided for at least 5 of the preceding 10 years in a census tract that has a poverty rate of at least 20% according to the latest 5-year American Community Survey (Table S1701: Poverty Status in the Past 12 Months) that is publicly available at the start of the preapplication submission window; B) the individual must have resided for at least 5 of the preceding 10 years in a census tract where at least 20% of the households receive assistance under the Supplemental Nutrition Assistance Program in the latest 5-year American Community Survey (Table S2201: Food Stamps/Supplemental Nutrition Assistance Program (SNAP)) that is publicly available at the start of the preapplication submission window; C) the individual must have resided for at least 5 of the preceding 10 years in a census tract area classified as "low income and low access" where at least 100 households are more than one-half mile from the nearest supermarket and have no access to a vehicle or a significant number (at least 500 people) or share (at least 33%) of the population is greater than one mile from the nearest supermarket, supercenter, or large grocery store for an urban area or greater than 20 miles for a rural area, as classified by the latest United States Department of Agriculture Economic Research Service's Food Access Research Atlas data set that is publicly available at the start of the preapplication submission window; D) the individual must have received Medicaid, Supplemental Security Income, Social Security Disability, or subsidized housing for at least 5 of the preceding 10 years; or E) the individual must have resided for at least 5 of the preceding 10 years in a census tract in the top 15 percentile for the percent of residents in the census tract failing to graduate from high school in DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS that state, as classified by the latest 5-year American Community Survey (Table S1501: Educational Attainment) that is publicly available at the start of the preapplication submission window. 3) The Department may update or adjust the criteria in subsection (g)(3) by rule. 4) The applicant must satisfy one of the following social equity criteria pursuant to Section 35-18(a)(2) of the Act: A) the individual must have been arrested for, convicted of, or adjudicated delinquent for an offense, or substantially similar offense under federal or State law or under a substantially similar law of another State for possession of not more than 500 grams of cannabis or for manufacture, delivery, or possession with intent to deliver, or manufacture of cannabis up to 60 grams; B) the individual must have been a member of a justice-impacted family; or C) the individual must have been a victim of an injury caused by a firearm, as defined in the Firearm Owners Identification Card Act, as evidenced in public or medical records. As used in this subsection (g)(4)(C), "victim of an injury caused by a firearm" means: i) a person injured as a result of a firearm injury perpetrated or attempted against them; ii) the spouse, parent, or child of a person killed or injured as a result of a firearm injury perpetrated or attempted against the person, or anyone living in the household of a person killed or injured in a relationship that is substantially similar to that of a parent, spouse, or child; iii) a person injured while attempting to assist a person against whom a firearm injury is being perpetrated or attempted, if that attempt of assistance would be expected of a reasonable person under the circumstances; DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS iv) a person injured while assisting a law enforcement official apprehend a person who has perpetrated a firearm injury or prevent the perpetration of any such crime if that assistance was in response to the express request of the law enforcement official; or v) a person who personally witnessed a firearm injury. vi) "Victim of an injury caused by a firearm" does not include the offender who committed the criminal act or a person who provoked or incited the crime. 5) To be eligible for the bonus draw for hemp business operators pursuant to Section 35-18(b) of the Act, the applicant must meet one or more of the following criteria: A) The applicant was registered with the Department as an industrial hemp processor under the Industrial Hemp Act on or before May 1, 2026. B) The applicant held an industrial hemp cultivation license issued by the Department under the Industrial Hemp Act on or before May 1, 2026. C) The applicant demonstrates that, on or before May 1, 2026, it operated a business in Illinois that derived the majority of its gross receipts from the sale or manufacture of products containing hemp or hemp-derived cannabinoids as demonstrated by any of the following: i) tax return; ii) sales receipts; iii) invoices; or DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS iv) any other document that sufficiently demonstrates in the Department's discretion that the business derived a majority of its gross receipts from the sale or manufacture of hemp. 6) The applicant must demonstrate that it is 51% owned by individuals who meet the criteria in Section 35-18(a)(1), Section 35-18(a)(2), and Section 35-18(b) if applicable, of the Act, by submitting an updated Table of Organization, Ownership, and Control to the Department, which shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or license holder. 7) Within 60 calendar days of the deadline for submittal of the SEEL application, including supporting documents, the Department will determine each applicant's eligibility status and provide notices of eligibility. 8) If the Department determines that an applicant's documentation is insufficient, the Department will issue a deficiency notice to that applicant. That applicant will have 10 business days after the date that appears on the deficiency notice to submit sufficient documentation. 9) If the applicant fails to provide sufficient documentation after this deficiency period, the Department will inform the applicant of its intent to deny the issuance of a social equity experience lottery infuser license prior to any denial of a social equity experience lottery infuser license. 10) The applicant will have five business days after the date that appears on the notice of intent to deny to contest the Department's decision. Any contestation must be filed in accordance with 8 Ill. Adm. Code 1. 11) The Department's final order to either affirm or revoke its intent to deny constitutes a final agency decision and may be appealed under the Administrative Review Law [735 ILCS 5/Art. III]. 12) If the Department informs an applicant of its intent to deny the issuance of a social equity experience lottery infuser license because one of the applicant's principal officers has violated the Act or this Part, the principal DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS officer may resign from the applicant entity (or another licensee) in order for the applicant to remain eligible for a social equity experience lottery infuser license. Proof of this resignation shall be submitted to the Department on the form published on the Department's website and submitted in the manner included on that form. 13) If a principal officer of an applicant resigns after that applicant has been notified of the Department's intent to deny, that applicant may not replace the resigned principal officer. If a principal officer of an applicant resigns after that applicant has been notified of the Department's deficiency notice or intent to deny, and that applicant therefore becomes ineligible to meet the requirements of the Act and this Part, the Department will deny that applicant a social equity experience lottery infuser license. 14) If the Department affirms its intent to deny, the Department will deny issuance of the social equity experience lottery infuser license and proceed to the next applicant (if a lottery has been conducted) pursuant to Section 35-18(d) of the Act. 15) If the Department denies issuance of a social equity experience lottery infuser license to an applicant, the Department will notify the next applicant drawn by lot in the lottery of its opportunity to prove eligibility for licensure pursuant to Section 35-18(d) of the Act. 16) If the Department determines an applicant has met the relevant criteria, the applicant is deemed a "verified applicant" eligible to file an infuser license new business application h) Infuser License New Business Application 1) Verified applicants will have 45 days from the date of the notice of eligibility to submit to the Department an infuser license new business application, including all supporting documentation. 2) The license selection criteria for the infuser license shall include the following: A) Suitability of the Proposed Facility: DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS i) The verified applicant demonstrates that the proposed facility is suitable for effective and safe production of cannabis and cannabis-infused products, sufficient in size, power allocation, air exchange and air flow, interior layout, lighting, and sufficient both in the interior and exterior to handle bulk production of cannabis-infused products, product handling, storage, trimming, packaging, loading and shipping. The loading and unloading of cannabis in the transport motor vehicle for shipping shall be in an enclosed, secure area out of public sight; ii) The verified applicant demonstrates the ability to meet consumer demand by operating the infuser facility in a safe and efficient manner with minimal impact on the environment and the surrounding community; iii) The verified applicant provides an Operations and Management Practices Plan that demonstrates compliance with this Part and the Act. B) Suitability of Employee Training Plan: i) The verified applicant fully describes a staffing plan that will provide and ensure adequate staffing and experience for all accessible business hours, safe production, sanitation, adequate security and theft prevention; ii) The verified applicant provides an employee handbook that will provide employees with a working guide to the understanding of the day-to-day administration of personnel policies and practices. C) Security Plan and Recordkeeping: i) The verified applicant's security plan demonstrates its ability to prevent the theft or diversion of cannabis and how the plan will assist with ISP, Department, and local law enforcement. Specifically, it shall evidence compliance DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS with all items in Sections 1300.455, 1300.480 and 1300.485; ii) The verified applicant demonstrates that its plan for record keeping, tracking and monitoring inventory, quality control and security, and other policies and procedures will discourage unlawful activity. It also describes the verified applicant's plan to dispose of unused or surplus cannabis and cannabis-infused products in cooperating with ISP and the Department; iii) The verified applicant's security plan shall describe the enclosed, locked facility that will be used to secure or store cannabis and cannabis-infused products; its security measures, including when the location is closed for business; and the steps taken to ensure that cannabis and cannabis-infused products are not visible to the public; iv) The verified applicant's plan to apply for a transporter license or plan to work with a licensed transporter and the verified applicant's procedures for safely and securely delivering cannabis-infused products to cannabis business establishments. D) Infusing Plan: i) The verified applicant shall describe its plan to provide a steady, uninterrupted supply of cannabis-infused products to registered dispensaries; ii) The verified applicant demonstrates knowledge of infusion methods to be used in the production of cannabis-infused products; iii) The verified applicant demonstrates the steps that will be taken to ensure the quality, including the purity and consistency, of the cannabis-infused products to be provided to dispensaries. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS E) Product Safety and Labeling Plan: i) The verified applicant shall describe its plan for providing safe and accurate packaging and labeling of cannabis- infused products; ii) The verified applicant shall describe its plan for testing and ensuring that all cannabis-infused products are free of contaminants including, but not limited to, pesticides, microbiological contaminants, and residual solvent; iii) The verified applicant shall describe its plan for establishing a recall of the verified applicant's cannabis- infused products in the event that they are shown by testing or other means to be, or potentially to be, defective or have a reasonable probability that their use or exposure to these products will cause serious adverse health consequences. At a minimum, the plan should include the method of identification of the products involved; notification to the dispensary organization or others to whom the product was sold or otherwise distributed; and how the products will be disposed of if returned to or retrieved by the applicant. F) Verified Applicant's Business Plan and Services to be Offered: i) The verified applicant shall provide a business plan that describes how the infuser plans to operate on a long-term basis. This shall include the verified applicant providing a detailed description about the amount and source of the equity and debt commitment for the proposed infuser that demonstrates the immediate and long-term financial feasibility of the proposed financing plan, the relative availability of funds for capital and operating needs, and the financial capability to undertake the project; ii) The verified applicant or its officers, board members, or incorporators demonstrates experience in business management and/or having industry, laboratory, agricultural or horticultural experience and the extent of DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS their involvement in or ability to influence the day-to-day operations of the facility; iii) The business plan demonstrates a start-up timetable that provides an estimated time from license approval of the infuser to full operation, and the assumptions used for the basis of those estimates. 3) Should the verified applicant be awarded a license, the information and plan that a verified applicant provided in its infuser license new business application becomes a mandatory condition of the license. If a licensee fails to comply with standard and special conditions of the license, the Department may assess a penalty or seek suspension or revocation of the license pursuant to Subpart G (Enforcement and Immunities). 4) The Department may verify information contained in each infuser license new business application and accompanying documentation to assess the verified applicant's character and fitness to operate an infuser. Notwithstanding a verified applicant satisfying the foregoing selection criteria, the Department may, in its discretion, refuse to issue a license if it is not satisfied that a verified applicant, or anyone required to be identified in the application, or identified pursuant to Sections 1300.400, 1300.405 and 1300.445, is a person of good character, honesty and integrity, and is not: A) A person who creates or enhances the dangers of unlawful practices, methods and activities in the cannabis industry, including, but not limited to, product diversion; B) A person who presents questionable business practices and financial arrangements incidental to the cannabis industry; or C) A person who has had a cannabis dispensary or cultivation center license revoked, suspended or sanctioned in any other jurisdiction. 5) The verified applicant must provide an acknowledgement that if awarded a social equity experience lottery infuser license, neither the entity nor any of its principal officers will violate the Act's license number limitations. The acknowledgement will also include a statement or indication that the DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS verified applicant understands the timeframes to do so as required in this Part. 6) If two or more verified applicants include the same principal officer, the Department will notify the verified applicant at its identified primary and alternate contacts and the principal officer who is listed on two or more applications. Upon this notification, the identified principal officer has three business days to notify the Department of its resignation from all but one of the proposed entities. This notification will be submitted to the Department, in the manner designated by the Department. If the identified principal officer does not notify the Department of the principal officer's required resignation within the required time period, each verified applicant notified will forfeit its preapplication and non-refundable application fee. i) Post-Infuser License New Business Application 1) After the verified applicant has submitted the supporting documents with the infuser license new business application, the Department has at least 60 calendar days to review the documentation. 2) If the Department determines that the verified applicant's supporting documents are insufficient, the Department will issue a deficiency notice to that verified applicant. The verified applicant will have 10 business days after the date that appears on the deficiency notice to submit sufficient documentation. 3) If the verified applicant fails to provide sufficient documentation after this deficiency period, the Department will inform the verified applicant of its intent to deny the issuance of a social equity experience lottery infuser license prior to any denial of a social equity experience lottery infuser license. 4) The verified applicant will have five business days after the date that appears on the notice of intent to deny in order to contest the Department's decision. Any contestation must be filed in accordance with 8 Ill. Adm. Code 1. 5) The Department's final order to either affirm or revoke its intent to deny constitutes a final agency decision and may be appealed under the Administrative Review Law [735 ILCS 5/Art. III]. 6) If the Department informs a verified applicant of a deficiency or of its intent to deny the issuance of a social equity experience lottery infuser license because of one of the verified applicant's principal officers has violated the Act or this Part, the principal officer may resign from the entity (or another licensee) in order for the verified applicant to remain eligible for a social equity experience lottery infuser license. Proof of this resignation shall be submitted to the Department on the form published on the Department's website and submitted in the manner included on that form. 7) If a principal officer of a verified applicant resigns after that verified applicant has been notified of the Department's intent to deny, that verified applicant may not replace the resigned principal officer. If a principal officer of a verified applicant resigns after that verified applicant has been notified of the Department's deficiency notice or intent to deny, and that verified applicant therefore becomes ineligible to meet the requirements of the Act and this Part, the Department will deny that verified applicant a social equity experience lottery infuser license. 8) If the Department affirms its intent to deny, the Department will deny the issuance of the social equity experience lottery infuser license and proceed to the next verified applicant. 9) If the Department denies issuance of a social equity experience lottery license to a verified applicant, the Department will notify the next applicant of its opportunity to verify its social equity experience lottery infuser license criteria pursuant to Section 35-18(a)(1), Section 35- 18(a)(2) and Section 35-18(b) if applicable, of the Act pursuant to this Part. 10) The Department may issue social equity experience lottery infuser licenses to verified applicants that have provided sufficient documentation with their infuser license new business applications in the order in which they are received by the Department. Nothing shall prevent the Department DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS from issuing social equity experience lottery infuser licenses before all verified applicants have submitted all necessary documentation. 11) If a principal officer of a verified applicant dies after the submission of an infuser license new business application, the verified applicant shall present proof of death to the Department. A deceased principal officer may be replaced only if that principal officer was necessary for the verified applicant to remain eligible to be issued a social equity experience lottery infuser license. If a necessary principal officer of a verified applicant dies prior to the issuance of the social equity experience lottery infuser license, the verified applicant shall have 45 calendar days after the death of that principal officer to submit proof of a replacement principal officer to the Department in order to remain eligible for a social equity experience lottery infuser license. j) General Requirements 1) The Department will only communicate with an applicant's primary and alternate contact regarding the preapplication, infuser license new business application or other application. For a change in a primary or alternate contact information, any social equity experience lottery infuser license applicant or licensee must submit a request to change from the current primary or alternate contact email address and phone number the Department has on record. 2) If the Department determines that any information on a preapplication, infuser license new business application, or other application or in supporting documents is not truthful, the applicant associated with that application will be prohibited from: A) participating in the social equity experience lottery; B) being a drawn applicant; and C) being issued a social equity experience lottery infuser license. The Department will notify the next verified applicant drawn by lot of its opportunity for the social equity experience lottery infuser license. 3) A social equity experience lottery infuser license cannot be sold, transferred, or assigned and the social equity experience lottery infuser licensee cannot in any way change its ownership structure, including by removing or adding any principal officers, except for in the event of the death of a principal officer. 4) If a principal officer of a social equity experience lottery infuser license holder dies prior to the issuance of any social equity experience lottery infuser license, the social equity experience lottery infuser license holder shall inform the Department of the death and submit an updated Table of Organization, Ownership, and Control. 5) A principal officer may be added to the ownership structure of a social equity experience lottery infuser license holder only in the event of replacing a deceased principal officer, subject to the Department's approval of that principal officer. The Department will consider, but is not limited to, the proposed principal officer's role, qualifications, and the necessity of adding a principal officer when considering the new principal officer. 6) The death of a principal officer following issuance of a social equity experience lottery infuser license shall not impact the license holder's eligibility to be issued a license under Section 35-18 of the Act. (Source: Added at 50 Ill. Reg. ______, effective ____________) Section 1300.415 License Award, Issuance and Transferability a) The top-scoring applicants as determined by Section 1300.407, that receive at least 75% of available points, will be issued Infuser Licenses by the Department.b) An Infuser License shall be issued for the specific location identified on the application, and is valid only for the owner, premises and name designated on the license and the location for which it is issued. bc) Should the applicant be awarded an Infuser License, it shall pay a fee of $5,000 prior to receiving the license. [410 ILCS 705/35-15(d)] cd) An Infuser License shall not be transferable, in whole or in part, without Department approval, with the following exceptions: 1) An Infuser 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; 2) An Infuser License may be transferred, without charge, to an heir of a deceased licensee other than as provided in subsection (cb)(1), as determined by the Probate Act of 1975. For the purpose of considering the qualifications of the heir to receive an Infuser 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. de) In the event that the Department approves a new location as meeting all requirements of the Act and this Part, the infuser 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) An infuser may not be located in an area zoned for residential use. [410 ILCS 705/35-25(i)] 3) No product may be transferred to or processed at the new location prior to the beginning date of this approved transition period. 4) 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). 5) The infuser 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. 6) 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. DEPARTMENT OF AGRICULTURE NOTICE OF PROPOSED AMENDMENTS ef) 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. fg) 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. gh) An Infuser License shall not be leased or subcontracted, in whole or in part. hi) An Infuser License is issued upon the following condition: An infuser may not either directly or indirectly discriminate in price between different cannabis business establishments that are purchasing a like grade, strain, brand, and quality of cannabis or cannabis-infused product. Nothing in this subsection (i) prevents an infuser from pricing cannabis differently based on differences in the cost of manufacturing or processing, the quantities sold, such volume discounts, or the way the products are delivered. [410 ILCS 705/35-25(e)] ij) An Infuser License is issued upon the following condition: An infuser may share premises with a craft grower or a dispensing organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership. [410 ILCS 705/35- 25(l)] jk) An Infuser License is issued upon the following condition: It is unlawful for any person or entity having an Infuser 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 sales 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 705/35-25(m)] (Source: Amended at 50 Ill. Reg. ______, effective ____________) Section 1300.420 License Renewal a) Every Infuser License shall expire annually on the date it was issued. b) Every renewal application for a license issued pursuant to this Part and accompanied by the proper fees shall be filed annually with the Department at least 45 calendar days prior to the date the existing license expires. c) The Department will send written notification of expiration to each licensed infuser at least 90 days prior to expiration. However, failure to receive a renewal form from the Department will not excuse the infuser from paying the renewal fee or renewing the license prior to its expiration. d) The Department will grant a renewal application within 45 days of submission of a renewal application if: 1) The registered infuser submits a renewal application and the required renewal fee of $20,000; 2) The Department has not suspended the license of the infuser or suspended or revoked the registration for violation of the Act or this Part; 3) The infuser has continued to operate in accordance with all plans submitted as part of its application and approved by the Department or any amendments thereto that have been approved by the Department; 4) The infuser has submitted an agent, employee, contracting, and subcontracting diversity report to the Cannabis Regulation Oversight Officer as required by the Department; and 5) The infuser has submitted an environmental impact report as required by the Act. [410 ILCS 705/35-40(a)] e) If an infuser fails to renew its license before expiration, it shall cease operations until its license is renewed. [410 ILCS 705/35-40(b)] f) Upon request for renewal, the Department will consider the licensee's history of compliance with requirements of the Act and this Part, the number and severity of any violations and the correction of those violations, as well as penalties or fines imposed or any other enforcement actions. g) The Department may deny a renewal after consideration of the licensee's history of compliance. h) The Department shall not assess the renewal fee in subsection (d) for the two annual license renewal periods that begin after May 1, 2026. The renewal fee in subsection (d) shall be imposed on the infuser's third annual renewal application submitted after May 1, 2026. The Department shall not assess the renewal fee in subsection (d) for the first renewal cycle after a SEEL license is awarded. SEEL licenses are not subjected to an initial license fee beyond the initial application fee. The renewal fee in subsection (d) shall be imposed on the SEEL licensee's second renewal period after license award. i) If an infuser license is relinquished or revoked, any past due fees, including renewal periods in which a partial payment was made, shall not be owed to the Department. (Source: Amended at 50 Ill. Reg. ______, effective ____________) DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY NOTICE OF PROPOSED AMENDMENTS