The Illinois General Assembly Joint Committee on Administrative Rules (JCAR) today announced adopted amendments to the Cannabis Regulation and Tax Act, effective Jan. 22, 2024, for “establishing a process through which craft cannabis growers may apply to DOA (Illinois Department of Agriculture) to increase canopy space in increments of 3,000 square feet up to the maximum allowed under the Act for craft growers (changed since 1st Notice from a maximum of 14,000 square feet).”

Craft growers’ canopy modifications include the following:

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.

b) Before increasing its canopy space, a craft grower must complete an application and submit all required fees for license and construction approval pursuant to Section 1300 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 monthly sales figures; wholesale cannabis sales figures; inventory tracking data; whether the craft grower has sold 50% or more of its packaged product consistently over the previous two fiscal quarters; availability of product manufactured within a 3 month window of sale; cost and availability of products used by licensed cannabis infusers, and any other data the Department may rely on to evaluate market need;

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 rules and with any other relevant law or rules applicable to the growing or selling of cannabis;

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.

For questions or comments, contact Sam McGee at DOA, State Fairgrounds, P.O. Box 19281, Springfield IL 62794-9281, by phone at 217-558-3741, and by email at Samuel.McGee@illinois.gov.

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