a) An application for a CAUCCL or an Adult Use Cultivation Center License must be denied if any of the following conditions are met:

1. 1) The applicant failed to submit the materials required by Article 20 of the Act;

2) The applicant would not be in compliance with local zoning rules;

1. 3) One or more of the prospective principal officers or board members causes a violation of Section 20-30 of the Act;
2. 4) One or more of the principal officers or board members is under 21 years of age;
3. 5) The person has submitted an application for a license under the Act that contains false information;
4. 6) The licensee, principal officer, board member or person having a financial or voting interest of 5% or greater, or the agent of one of these entities, is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois; [410 ILCS 705/20-25]
5. 7) A principal officer or board member of the cultivation center has failed a background check required by Section 5-20 of the Act;
6. b) A license shall be surrendered to the Department upon written notice and demand if the cultivation center fails to begin production within 6 months after the license has been issued. The cultivation center may submit a written request to the Department for an extension of time setting forth its justification for being unable to begin production within 6 months after the license was issued. The Department may grant an extension, at its discretion, for good cause shown. Good cause may include unforeseen events, acts of nature, and other events that prevent a good faith effort. Good cause shall not include cost overruns, insufficient financing, and other factors evidencing a lack of good faith effort.

7. c) A cultivation center that fails to maintain production for any reason for more than 90 consecutive days after it has begun production shall be notified in writing and given 30 days from the date of notification from the Department to submit a written explanation why it so failed and, if it plans on continuing to operate as a cultivation center, a description of how it will correct the problem and prevent it from occurring again.

   1. 1) If no response is received from the cultivation center or if a response is received after the 30-day period, the license will be revoked and shall be surrendered to the Department.
   2. 2) If a response is received within the 30-day period, the Department will review the response and either approve it and require the cultivation center to come into compliance, or reject it and revoke the license, requiring the cultivation center to surrender its license to the Department. If the Department allows the cultivation center to come into compliance, the Department may, after a hearing, levy a fine for failure to provide an uninterrupted supply.