Section 1000.110 Permits - Selection Criteria

Section

1000.110  Permits − Selection Criteria

a)         Each application

shall address all criteria and measures as set forth in this Part.  The failure

by an applicant to address all of the required criteria and measures will

result in the application being denied.

b)         The required

criteria and measures shall include the following, with each criteria

accounting for up to the indicated maximum number of the total points available

for each criteria:

1)         Suitability of the

Proposed Facility (150 points):

A)        Measure 1: The

applicant demonstrates that the proposed facility is suitable for effective and

safe cultivation of medical cannabis, sufficient in size, power allocation, air

exchange and air flow, interior layout, lighting, and sufficient both in the

interior and exterior to handle the bulk agricultural production of medical

cannabis, cannabis-infused products, product handling, storage, trimming,

packaging, loading

and

shipping.  The loading/unloading of medical cannabis in the transport motor

vehicle for shipping shall be in an enclosed, secure area out of public sight.

B)        Measure 2: The

applicant demonstrates the ability to continue to meet qualifying patient

demand by expanding the cultivation facility in a quick and efficient manner

with minimal impact on the environment and the surrounding community.

C)        Measure 3: The

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

ility to continue to meet qualifying patient

demand by expanding the cultivation facility in a quick and efficient manner

with minimal impact on the environment and the surrounding community.

C)        Measure 3: The

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.

2)         Proposed Staffing

Plan and Knowledge of Illinois Law and Rules Relating to Medical Cannabis (100

points):

A)        Measure 1: The

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; and

B)        Measure 2: The

applicant provides an Operations and Management Practices Plan that

demonstrates compliance with this Part and the Act.

3)         Security Plan (200

points):

A)        Measure 1: The

applicant's security plan demonstrates its ability to prevent the theft or

diversion of medical cannabis and how the plan will assist with ISP,

Department, and local law enforcement. Specifically, it shall evidence compliance

with all items in Sections 1000.440, 1000.445 and 1000.450.

B)        Measure 2: The

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 applicant's

plan to coordinate with and dispose of unused or surplus medical cannabis

through ISP and the Department.

C)        Measure 3: The

applicant's security plan shall describe the enclosed, locked facility that

will be used to secure or store medical cannabis, its security measures,

including when the location is closed for business, and the steps taken to

ensure that medical cannabis is not visible to the public

e with and dispose of unused or surplus medical cannabis

through ISP and the Department.

C)        Measure 3: The

applicant's security plan shall describe the enclosed, locked facility that

will be used to secure or store medical cannabis, its security measures,

including when the location is closed for business, and the steps taken to

ensure that medical cannabis is not visible to the public.

D)        Measure 4: The

applicant describes its transportation plan regarding procedures for safely and

securely delivering medical cannabis to registered dispensaries.

4)         Cultivation Plan

(300 points):

A)        Measure 1: The

applicant shall describe its plan to provide a steady, uninterrupted supply of

medical cannabis to registered dispensaries.

B)        Measure 2: The

applicant demonstrates knowledge of cultivation methods to be used in the

cultivation of cannabis. The applicant shall describe the various strains to be

cultivated and its experience, if applicable, with growing those strains or

comparable agricultural products.

C)        Measure 3: The

applicant demonstrates the steps that will be taken to ensure the quality,

including the purity and consistency, of the medical cannabis to be provided to

dispensaries.

5)         Product Safety and

Labeling Plan (150 points):

A)        Measure 1: The

applicant shall describe its plan for providing safe and accurate packaging and

labeling of medical cannabis.

B)        Measure 2: The

applicant shall describe its plan for testing medical cannabis and ensuring

that all medical cannabis is free of contaminants, including but not limited to

pesticides, microbiological, and residual solvent.  If applicable, the

applicant shall provide quality history records showing specific testing results

from laboratory testing conducted on the applicant's cannabis products

Measure 2: The

applicant shall describe its plan for testing medical cannabis and ensuring

that all medical cannabis is free of contaminants, including but not limited to

pesticides, microbiological, and residual solvent.  If applicable, the

applicant shall provide quality history records showing specific testing results

from laboratory testing conducted on the applicant's cannabis products.

C)        Measure 3:  The

applicant shall describe its plan for establishing a recall of the applicant's

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

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.

6)         Applicant's

Business Plan and Services to be Offered (100 points):

A)        Measure 1: The

applicant shall provide a business plan that describes how the cultivation

center plans to operate on a long-term basis. This shall include the applicant

providing a detailed description about the amount and source of the equity and

debt commitment for the proposed cultivation center 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.

B)        Measure 2: The

applicant or its officers, board members, or incorporators demonstrates

experience in business management and/or having medical industry, agricultural

or horticultural experience and the extent of their involvement in or ability

to influence the day-to-day operations of the facility

or capital and operating needs, and the

financial capability to undertake the project.

B)        Measure 2: The

applicant or its officers, board members, or incorporators demonstrates

experience in business management and/or having medical industry, agricultural

or horticultural experience and the extent of their involvement in or ability

to influence the day-to-day operations of the facility.

C)        Measure 3: The

business plan demonstrates a start-up timetable that provides an estimated time

from permit approval of the cultivation center

to

full operation, and the assumptions used for the basis of those estimates.

c)         The Department

shall award bonus points for preferred but not required initiatives in the

following categories based on the applicant's ability to meet or exceed minimum

requirements, with each initiative accounting for up to a maximum of 20 points

each, for a maximum total of 160 bonus:

1)         Labor and

Employment Practices: The applicant may describe any plans it has to:

A)        Provide a safe,

healthy and economically beneficial working environment for its employees,

including, but not limited to, its plans regarding workplace safety and

environmental standards, codes of conduct, healthcare benefits, educational

benefits, retirement benefits, and wage standards.

B)        Recruit and/or hire

minorities, women, veterans, disabled persons and Illinois residents.

2)         Research Plan: The

applicant may provide the Department with a detailed proposal to conduct, or

facilitate, a scientific study or studies related to the medicinal use of

cannabis

ds, codes of conduct, healthcare benefits, educational

benefits, retirement benefits, and wage standards.

B)        Recruit and/or hire

minorities, women, veterans, disabled persons and Illinois residents.

2)         Research Plan: The

applicant may provide the Department with a detailed proposal to conduct, or

facilitate, a scientific study or studies related to the medicinal use of

cannabis. To the extent it has been determined, the applicant may include in

its proposal, a detailed description of:

A)        The methodology of the study;

B)        The issues to be studied;

C)        The methods that

will be used to identify and select study participants;

D)        The identity of all

persons or organizations that will be worked with in connection with the study,

including the role of each;

E)        The duration of the study; and

F)         The intended use of the study results.

3)         Community Benefits

Plan: The applicant may provide the Department with a detailed description of

any plans the applicant has to give back to the local community if awarded a

cultivation center permit.

4)         Substance Abuse

Prevention Plan: The applicant may provide a detailed description of any plans

it will undertake, if awarded a cultivation center permit, to combat substance

abuse in Illinois, including the extent to which the applicant will partner, or

otherwise work with existing substance abuse programs.

5)         Local

Community/Neighborhood Report:  The applicant may provide comments, concerns or

support regarding the potential impact of the proposed location to the local

community and neighborhood.  This may include the local community's concerns or

support regarding the proposed location's proximity to substance abuse

treatment centers, day care centers, schools and halfway houses.

6)         Environmental

Plan:  The applicant may demonstrate an environmental plan of action to

minimize the carbon footprint, environmental impact, and resource needs for the

production of medical cannabis

This may include the local community's concerns or

support regarding the proposed location's proximity to substance abuse

treatment centers, day care centers, schools and halfway houses.

6)         Environmental

Plan:  The applicant may demonstrate an environmental plan of action to

minimize the carbon footprint, environmental impact, and resource needs for the

production of medical cannabis.  The applicant may describe any plans for the

use of alternative energy, the treatment of waste water and runoff, and

scrubbing or treatment of exchanged air.

7)         Verification of

Minority Owned, Female Owned, Veteran Owned, or Disabled Person Owned

Business:  The Minority, Female, Veteran, or Disabled Person applicant must own

at least 51 percent of the entity applying for registration.  The percentage

totals may include any combination of these types of businesses.  The Minority,

Female, Veteran, or Disabled Person applicant must also share in control of

management and day-to-day operations of the permitted facility.  Documentation

must be submitted at the time of application that demonstrates the respective

status of the applicant, including, but not limited to, certification under the

Business Enterprise for Minorities, Females, and Persons with Disabilities Act

[30 ILCS 575] for minority, female or disabled person applicants, or a DD214

for veteran applicants.  For purposes of this subsection (c)(7), minority, female,

and disabled shall have the meanings ascribed in Section 2 of the Business

Enterprise for Minorities, Females, and Persons with Disabilities Act [30 ILCS

575/2].

8)         Verification that

the applicant's principal place of business is headquartered in Illinois. The

names, addresses and verification of the applicant's proposed agents that

reside in Illinois. The applicant may also provide a plan for generating

Illinois-based jobs and economic development

Business

Enterprise for Minorities, Females, and Persons with Disabilities Act [30 ILCS

575/2].

8)         Verification that

the applicant's principal place of business is headquartered in Illinois. The

names, addresses and verification of the applicant's proposed agents that

reside in Illinois. The applicant may also provide a plan for generating

Illinois-based jobs and economic development.

d)         Should the

applicant be awarded a permit, the information and plan that an applicant

provided in its application becomes a mandatory condition of the permit.  If a

permittee fails to comply with standard and special conditions of the permit,

the Department may assess a penalty or seek suspension or revocation of the

permit pursuant to Section 1000.700.

e)         The Department may

issue a cultivation center permit with conditions addressing weaker areas of

the cultivation center's application that shall be addressed and corrected in

the manner and timeframe set forth in the permit.

f)         There shall not be

more than one permit issued per each of the 22 ISP District boundaries as

specified on January 1, 2013.

1)         A permit shall be

issued to the qualified applicant receiving at least the minimum required score

in each category and the highest total score overall as compared to the other

applicants within the applicable district.

2)         ISP District

Chicago (District C) incorporates ISP Districts 3 and 4.  Therefore, the

Department shall issue two separate permits for ISP District C.

g)         In the event that

two or more qualified applicants for a cultivation center permit receive the

same total score, the Department shall select the applicant that received the

highest score in the cultivation plan category. In the event that the same two

applicants received the same score in the cultivation plan category, the

Department shall select the applicant that received the highest score in the

security plan category

qualified applicants for a cultivation center permit receive the

same total score, the Department shall select the applicant that received the

highest score in the cultivation plan category. In the event that the same two

applicants received the same score in the cultivation plan category, the

Department shall select the applicant that received the highest score in the

security plan category.

1)         If a tie score

still remains, the tied applicants will be interviewed by an unbiased panel

selected by the Department.

2)         The panel will

judge the overall applications and suitability, sustainability and likelihood

of success of the applicants and award the permit accordingly.

h)         In the event that

there are no qualified applicants in a particular District, the applicant with

the highest total score will meet with an unbiased panel selected by the

Department to determine whether the applicant may be able to cure any

deficiencies in the application to become qualified.  If the applicant is

unable to cure the deficiencies, the panel will meet with the applicant with

the next highest score to determine whether it may be able to cure any

deficiencies in its application to become qualified.  If that applicant is

unable to cure the deficiencies, and there are no qualified applicants in that

particular District, the application process will be reopened.  All applicants

will be required to submit a new fee and application for that District.

i)          If no qualified

applicants are found during the process described in subsections (g) and (h),

or if an applicant that is issued a conditional permit fails to fulfill the

conditions of the conditional permit, or if no permit is issued or active in a

particular District for any other reason, the Department shall announce another

period to submit an application for that District.  The application period

shall be for 30 calendar days from the date specified in the announcement

g) and (h),

or if an applicant that is issued a conditional permit fails to fulfill the

conditions of the conditional permit, or if no permit is issued or active in a

particular District for any other reason, the Department shall announce another

period to submit an application for that District.  The application period

shall be for 30 calendar days from the date specified in the announcement.

j)          The Department may

verify information contained in each application and accompanying documentation

to assess the applicant's character and fitness to operate a cultivation

center.  Notwithstanding an applicant satisfying the foregoing selection

criteria, the Department may, in its discretion, refuse to issue a permit if it

is not satisfied that an applicant, or any one required to be identified in the

application by Section 1000.100, is a person of good character, honesty and

integrity, and is not:

1)         A person whose

background, including criminal charges, reputation and association, is

injurious to the health, safety, morals, good order and general welfare of the

People of the State of Illinois;

2)         A person whose

background, criminal record, reputation, habits, social or business associations

adversely affect public confidence and trust in the medical cannabis industry

or poses a threat to the public interests of the State or to the security and

integrity of the medical cannabis industry;

3)         A person who

creates or enhances the dangers of unlawful practices, methods and activities

in the medical cannabis industry, including, but limited to, product diversion;

4)         A person who

presents questionable business practices and financial arrangements incidental

to the medical cannabis industry;

5)         A person who

associates with, either socially or in business affairs, or employs persons of

notorious or unsavory reputation or who have extensive police records, or who

have failed to cooperate with any officially constituted investigatory or

administrative bod

son who

presents questionable business practices and financial arrangements incidental

to the medical cannabis industry;

5)         A person who

associates with, either socially or in business affairs, or employs persons of

notorious or unsavory reputation or who have extensive police records, or who

have failed to cooperate with any officially constituted investigatory or

administrative body; or

6)         A person who has

had a cannabis dispensary or cultivation center license revoked, suspended or

sanctioned in any other jurisdiction.