Section 1300.335  Canopy Modification

a)         A craft grower may apply to the Department to increase its canopy space in increments of 3,000 square feet up to the maximum canopy space provided for under the Act for a craft grower.

1)         A craft grower may request an increase of 3,000, 6,000 or 9,000 square feet of canopy space.

2)         At no time may a licensed craft grower's canopy space exceed the maximum canopy space provided for under the Act for a craft grower.

3)         For cannabis grow operations with 6,000 square feet of canopy or more, all HVAC units must be variable refrigerant flow HVAC units, or other more energy efficient equipment. [410 ILCS 705/20-15(a)(23)(C)(iii)]

b)         Before increasing its canopy space, a craft grower must complete an application modification (see Section 1300.330) and submit all required fees for license and construction approval pursuant to Section 1300.330 on forms provided by the Department.

c)         The Department will approve a craft grower's request for an increase of canopy space based on the following criteria:

1)         The market need for additional cannabis production, as indicated by any of the following: Illinois adult use cannabis average price per gram and monthly wholesale sales figures over the previous 3 month period immediately prior to application as published on the website of the Cannabis Regulation and Oversight Officer or other State website; whether the craft grower has sold 50% or more of its packaged product consistently over the previous two fiscal quarters; immediately prior to application as determined by data obtained from the State's cannabis plant monitoring system; and any other data the Department may rely on to evaluate market need (e.g., other reports obtained from the State's cannabis plant monitoring system);

2)         The craft grower's ability to meet all requirements and commitments contained in its original license application, including any additional modifications;

3)         The craft grower's ability to cultivate additional cannabis at the square footage requested;

4)         The craft grower's history of compliance or noncompliance with the Act or this Part and with any other relevant law or rules applicable to the growing or selling of cannabis;

A)        Deficiencies alone will not be considered as a basis for denying a licensee's request for additional canopy space;

B)        A licensee shall not be assessed more than three fines in a calendar year and be granted a request for expansion in that year; and

5)         Any additional information presented by the craft grower supporting the application for canopy space expansion.

d)         The Department may decrease a craft grower's canopy space by 3,000 square feet if the craft grower has sold less than 50% of its packaged product consistently over the previous two fiscal quarters preceding the notice to decrease canopy space. The Department shall notify a craft grower at least 120 days prior to decreasing its canopy space.

e)         The Department shall not decrease a craft grower's canopy space more than once in any twelve month period.

f)         The Department may not reduce a craft grower's canopy space below 5,000 square feet.

(Source:  Added at 48 Ill. Reg. 1862, effective January 22, 2024)