Illinois Administrative Code › Title 14 - COMMERCE › Part 650 - CANNABIS SOCIAL EQUITY PROGRAM › Section 650.15 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions are applicable to the Cannabis Social
				Equity Program.
"Act" means the Cannabis Regulation and Tax Act [410 ILCS
				705].
"Adult Use Dispensing Organization License" means a
				license issued by the Department of Financial and Professional Regulation that
				permits a person to act as a dispensing organization under the Act and any
				administrative rule made in furtherance of the Act.
[410 ILCS
				705/1-10]
"Agreement" means a loan or line of credit agreement under the
				Program.
"Applicant" means a person that intends to apply or has applied
				for licensure under the Act as a Social Equity Applicant.
"Basic Wage" means compensation for employment that is no less
				than the legal minimum wage of the jurisdiction in which the person is
				employed. Basic wage shall not include overtime pay, bonus pay, stock options,
				awards or any other equity-based incentive, unreimbursed employee expenses,
				piecemeal rate of pay, or any form of deferred compensation.
"Borrower" means a Qualified Social Equity Applicant that has
				entered into an agreement with the Department or a financial institution
				partner under the Business Loan and Financial Assistance Program.
"Business Applicant" means an applicant or a Social Equity
				Applicant who is seeking to participate in the Business Loan and Financial
				Assistance Program.
"Business Loan and Financial Assistance Program" or "Program"
				means the loan and line of credit Program, designed to promote social equity
				within the Illinois cannabis industry, set forth in this Part.
"Cannabis Business Establishment" means a cultivation
				center, craft grower, processing organization, dispensing organization, or
				transporting organization.
[410 ILCS
				705/1-10]
"CI Act" means the Criminal Identification Act [20 ILCS
				2630].
"Conditional Adult Use Dispensing Organization License"
				means a license awarded to top-scoring applicants for an Adult Use Dispensing
				Organization License that reserves the right to an Adult Use Dispensing
				Organization License if the applicant meets certain conditions described in the
				Act, but does not entitle the recipient to begin purchasing or selling cannabis
				or cannabis-infused products.
[410 ILCS
				705/1-10]
"Conditional Commitment Letter" means a letter from the
				Department indicating that an applicant has been provisionally approved for a
				loan or line of credit under the Program, subject to receipt of a license and
				meeting other requirements described in a conditional commitment letter.
"Department" means the Illinois Department of Commerce and
				Economic Opportunity.
"DFPR" means the Illinois Department of Financial and
				Professional Regulation.
"Disproportionately Impacted Area" means a census tract
				or comparable geographic area that:
satisfies, as determined by the Department, at least
				one of the following criteria:
the area has a poverty rate of at least 20%, according
				to the latest federal decennial census
or the U.S. Census Bureau
				American Community Survey 5-Year Estimates, 2013-2017, whichever is more
				current
;
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,
if current and uniform statewide data is
				available
;
at least 20% of the households in the area receive
				assistance under the Supplemental Nutrition Assistance Program,
according to data from the U.S. Census Bureau American Community Survey 5-Year
				Estimates, 2013-2017
; 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]
"Financial Institution Partner" means a chartered bank, credit
				union, or other responsible source of financing that has entered into an
				agreement with the Department to provide funding to a Qualified Social Equity
				Applicant on behalf of or in tandem with the Department.
"Full-Time Employee" means an individual for whom a W-2 is
				issued by the applicant and who is employed for a basic wage for at least 35
				hours each week.
"High Rates of Arrest, Conviction, and Incarceration" means an
				average annual rate of arrests that exceeds 30 per 10,000 residents of the
				census tract, according to population data from the latest U.S. Census Bureau
				American Community Survey 5-year estimates, 2013-2017, and arrest data
				maintained by the Illinois State Police for the period of January 1, 2009
				through May 8, 2019. When at least 20% of arrests by an arresting agency have
				arrestee address information, those arrests without arrestee address
				information will be assigned to a census tract as follows:
the distribution of each arresting agency's arrests with known
				addresses shall be determined for each census tract within that agency's
				jurisdiction (each tract's share of the total known addresses for that
				arresting agency being that census tract's "census tract share" for that
				arresting agency);
the number of arrests with unknown addresses for each arresting
				agency shall be multiplied by each tract's census tract share, with the product
				of each calculation being allocated to each census tract as an arrest (each
				such allocation being an "imputed arrest" for that census tract and arresting
				agency); and
the imputed arrest for each census tract will be summed across
				all arresting agencies, with the total being added to the known arrests in each
				census tract summed across all arresting agencies to arrive at each census
				tract's total number of estimated arrests for that census tract over the
				period.
However, if uniform statewide data on annual rates of
				conviction and incarceration is unavailable, the Department may use an average
				annual rate of persons being released onto parole or mandatory supervised
				release for offenses eligible for expungement under CI Act Section 5.2 that
				exceeds 1 per 10,000 residents and has a minimum of 5 persons being released
				onto parole or mandatory supervised release for offenses eligible for
				expungement under the Act between July 1, 2009 and August 23, 2019), according
				to population data from the latest U.S. Census Bureau American Community Survey
				5-year estimates, 2013-2017, and data maintained by the Illinois Department of
				Corrections for the period of July 1, 2009 through August 23, 2019.
"License" means any of the Cannabis Business Establishment
				licenses established under the Act.
"Member of an 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.
[410 ILCS
				705/1-10]
"Ordinary and Necessary Expenses" are those expenses incurred
				in day-to-day operations that are appropriate, helpful to the success of the
				business, and approved by the Department.
"Organizational and Ownership Records" means records requested
				by the Department to verify the bona fide ownership and control of an
				applicant. These records may include, but are not limited to:
a Table of Organization, Ownership and Control as described in
				Section 15-50 of the Act;
articles of incorporation or organization, trust agreement,
				partnership agreement, joint venture agreements and the like, including any
				exhibits to these documents;
operating agreement, articles of partnership, corporate bylaws
				and the like, including any exhibits;
capitalization tables and other records of ownership
				interests;
to the extent any owner, member, partner, or trustee of the
				applicant is a corporate entity, the governing documents of that entity and
				records showing its owners;
copies of all guarantees to which the applicant is a
				party;
licensing or franchise agreements; and
any other information requested by the Department to identify
				ownership or any significant beneficial interests in the applicant.
"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]
"Pay Stub" means a written receipt that shows hours worked,
				rate of pay, overtime pay and overtime hours, gross wages, an itemization of
				all deductions, and wages and deductions for the year to date for an
				employee.
"Person" means a natural individual, firm, partnership,
				association, joint stock company, joint venture, public or private corporation,
				or limited liability company, or a receiver, executor, trustee, guardian, or
				other representative appointed by order of any court.
[410 ILCS
				705/1-10]
"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]
"Residency Records" means records requested by the Department
				to verify an applicant's eligibility to participate in the Program. These
				records may include, but are not limited to:
a signed lease agreement that includes the applicant's
				name;
a property deed that includes the applicant's name;
records reflecting government housing or other assistance that
				contain the applicant's name and address;
school records;
a voter registration card;
an Illinois driver license, an Illinois Identification Card, or
				an Illinois Person with a Disability Identification Card;
paycheck stubs;
utility bills;
military service records showing the member's state of legal
				residency or home of record;
proof of receipt of a homestead exemption for Illinois property
				(see
				35 ILCS
				200/15-175);
a certification of homeless status during the time relevant for
				consideration;
the applicant's most recent State tax return showing the
				applicant is subject to the Illinois Income Tax and the Personal Property Tax
				Replacement Income Tax as a resident of Illinois; or
other proof that is generally accepted by DFPR, the Department
				of Agriculture (DOA), the Department of Revenue, or the Illinois Secretary of
				State to establish a person's status as a resident in Illinois and that is
				approved by the Department.
"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;
have been arrested for, convicted of, or adjudicated
				delinquent for any offense that is eligible for expungement under the CI Act;
				or
are members of an impacted family; or
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 CI Act or
				member of an impacted family
. [410 ILCS
				705/1-10]