103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3480

 

Introduced 2/8/2024, by Sen. Adriane Johnson

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 130/115
410 ILCS 705/1-10
410 ILCS 705/7-1

    Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales.


LRB103 38152 RLC 68285 b

 

 

A BILL FOR

 

SB3480LRB103 38152 RLC 68285 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Compassionate Use of Medical Cannabis
5Program Act is amended by changing Section 115 as follows:
 
6    (410 ILCS 130/115)
7    Sec. 115. Registration of dispensing organizations.
8    (a) The Department of Financial and Professional
9Regulation may issue up to 60 dispensing organization
10registrations for operation. The Department of Financial and
11Professional Regulation may not issue less than the 60
12registrations if there are qualified applicants who have
13applied with the Department of Financial and Professional
14Regulation. The organizations shall be geographically
15dispersed throughout the State to allow all registered
16qualifying patients reasonable proximity and access to a
17dispensing organization.
18    (a-5) The Department of Financial and Professional
19Regulation shall adopt rules to create a registration process
20for Social Equity Justice Involved Applicants and Qualifying
21Applicants, a streamlined application, and a Social Equity
22Justice Involved Medical Lottery under Section 115.5 to issue
23the remaining available 5 dispensing organization

 

 

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1registrations for operation.
2    (a-6) The Department of Financial and Professional
3Regulation shall adopt rules to create a registration process
4for Adult Use Dispensing Organization Social Equity Licenses,
5as defined in the Cannabis Regulation and Tax Act, to sell
6cannabis under this Act. The registration process shall be
7available to all Adult Use Dispensing Organization Social
8Equity Licenses within 30 days of the issuance of the Adult Use
9Dispensing Organization Social Equity License.
10     For purposes of this Section:
11    "Disproportionately Impacted Area" means a census tract or
12comparable geographic area that satisfies the following
13criteria as determined by the Department of Commerce and
14Economic Opportunity, that:
15        (1) meets at least one of the following criteria:
16            (A) the area has a poverty rate of at least 20%
17        according to the latest federal decennial census; or
18            (B) 75% or more of the children in the area
19        participate in the federal free lunch program
20        according to reported statistics from the State Board
21        of Education; or
22            (C) at least 20% of the households in the area
23        receive assistance under the Supplemental Nutrition
24        Assistance Program; or
25            (D) the area has an average unemployment rate, as
26        determined by the Illinois Department of Employment

 

 

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1        Security, that is more than 120% of the national
2        unemployment average, as determined by the United
3        States Department of Labor, for a period of at least 2
4        consecutive calendar years preceding the date of the
5        application; and
6        (2) has high rates of arrest, conviction, and
7    incarceration related to sale, possession, use,
8    cultivation, manufacture, or transport of cannabis.
9    "Qualifying Applicant" means an applicant that: (i)
10submitted an application pursuant to Section 15-30 of the
11Cannabis Regulation and Tax Act that received at least 85% of
12250 application points available under Section 15-30 of the
13Cannabis Regulation and Tax Act as the applicant's final
14score; (ii) received points at the conclusion of the scoring
15process for meeting the definition of a "Social Equity
16Applicant" as set forth under the Cannabis Regulation and Tax
17Act; and (iii) is an applicant that did not receive a
18Conditional Adult Use Dispensing Organization License through
19a Qualifying Applicant Lottery pursuant to Section 15-35 of
20the Cannabis Regulation and Tax Act or any Tied Applicant
21Lottery conducted under the Cannabis Regulation and Tax Act.
22    "Social Equity Justice Involved Applicant" means an
23applicant that is an Illinois resident and one of the
24following:
25        (1) an applicant with at least 51% ownership and
26    control by one or more individuals who have resided for at

 

 

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1    least 5 of the preceding 10 years in a Disproportionately
2    Impacted Area;
3        (2) an applicant with at least 51% of ownership and
4    control by one or more individuals who have been arrested
5    for, convicted of, or adjudicated delinquent for any
6    offense that is eligible for expungement under subsection
7    (i) of Section 5.2 of the Criminal Identification Act; or
8        (3) an applicant with at least 51% ownership and
9    control by one or more members of an impacted family.
10    (b) A dispensing organization may only operate if it has
11been issued a registration from the Department of Financial
12and Professional Regulation. The Department of Financial and
13Professional Regulation shall adopt rules establishing the
14procedures for applicants for dispensing organizations.
15    (c) When applying for a dispensing organization
16registration, the applicant shall submit, at a minimum, the
17following in accordance with Department of Financial and
18Professional Regulation rules:
19        (1) a non-refundable application fee established by
20    rule;
21        (2) the proposed legal name of the dispensing
22    organization;
23        (3) the proposed physical address of the dispensing
24    organization;
25        (4) the name, address, and date of birth of each
26    principal officer and board member of the dispensing

 

 

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1    organization, provided that all those individuals shall be
2    at least 21 years of age;
3        (5) (blank);
4        (6) (blank); and
5        (7) (blank).
6    (d) The Department of Financial and Professional
7Regulation shall conduct a background check of the prospective
8dispensing organization agents in order to carry out this
9Section. The Department of State Police shall charge a fee for
10conducting the criminal history record check, which shall be
11deposited in the State Police Services Fund and shall not
12exceed the actual cost of the record check. Each person
13applying as a dispensing organization agent shall submit a
14full set of fingerprints to the Department of State Police for
15the purpose of obtaining a State and federal criminal records
16check. These fingerprints shall be checked against the
17fingerprint records now and hereafter, to the extent allowed
18by law, filed in the Department of State Police and Federal
19Bureau of Investigation criminal history records databases.
20The Department of State Police shall furnish, following
21positive identification, all Illinois conviction information
22to the Department of Financial and Professional Regulation.
23    (e) A dispensing organization must pay a registration fee
24set by the Department of Financial and Professional
25Regulation.
26    (f) An application for a medical cannabis dispensing

 

 

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1organization registration must be denied if any of the
2following conditions are met:
3        (1) the applicant failed to submit the materials
4    required by this Section, including if the applicant's
5    plans do not satisfy the security, oversight, or
6    recordkeeping rules issued by the Department of Financial
7    and Professional Regulation;
8        (2) the applicant would not be in compliance with
9    local zoning rules issued in accordance with Section 140;
10        (3) the applicant does not meet the requirements of
11    Section 130;
12        (4) one or more of the prospective principal officers
13    or board members has been convicted of an excluded
14    offense;
15        (5) one or more of the prospective principal officers
16    or board members has served as a principal officer or
17    board member for a registered medical cannabis dispensing
18    organization that has had its registration revoked; and
19        (6) one or more of the principal officers or board
20    members is under 21 years of age.
21(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
 
22    Section 10. The Cannabis Regulation and Tax Act is amended
23by changing Sections 1-10 and 7-1 as follows:
 
24    (410 ILCS 705/1-10)

 

 

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1    Sec. 1-10. Definitions. In this Act:
2    "Adult Use Cultivation Center License" means a license
3issued by the Department of Agriculture that permits a person
4to act as a cultivation center under this Act and any
5administrative rule made in furtherance of this Act.
6    "Adult Use Dispensing Organization License" means a
7license issued by the Department of Financial and Professional
8Regulation that permits a person to act as a dispensing
9organization under this Act and any administrative rule made
10in furtherance of this Act.
11    "Adult Use Dispensing Organization Social Equity License"
12means a license issued by the Department of Financial and
13Professional Regulation to a Qualified Social Equity Applicant
14with current Ownership and Control that permits a person to
15act as a dispensing organization under this Act and any
16administrative rule made in furtherance of this Act and the
17Compassionate Use of Medical Cannabis Program Act.
18    "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed
24cannabis business establishment.
25    "Application points" means the number of points a
26Dispensary Applicant receives on an application for a

 

 

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1Conditional Adult Use Dispensing Organization License.
2    "BLS Region" means a region in Illinois used by the United
3States Bureau of Labor Statistics to gather and categorize
4certain employment and wage data. The 17 such regions in
5Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
6Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
7Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
8Rockford, St. Louis, Springfield, Northwest Illinois
9nonmetropolitan area, West Central Illinois nonmetropolitan
10area, East Central Illinois nonmetropolitan area, and South
11Illinois nonmetropolitan area.
12    "By lot" means a randomized method of choosing between 2
13or more Eligible Tied Applicants or 2 or more Qualifying
14Applicants.
15    "Cannabis" means marijuana, hashish, and other substances
16that are identified as including any parts of the plant
17Cannabis sativa and including derivatives or subspecies, such
18as indica, of all strains of cannabis, whether growing or not;
19the seeds thereof, the resin extracted from any part of the
20plant; and any compound, manufacture, salt, derivative,
21mixture, or preparation of the plant, its seeds, or resin,
22including tetrahydrocannabinol (THC) and all other naturally
23produced cannabinol derivatives, whether produced directly or
24indirectly by extraction; however, "cannabis" does not include
25the mature stalks of the plant, fiber produced from the
26stalks, oil or cake made from the seeds of the plant, any other

 

 

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1compound, manufacture, salt, derivative, mixture, or
2preparation of the mature stalks (except the resin extracted
3from it), fiber, oil or cake, or the sterilized seed of the
4plant that is incapable of germination. "Cannabis" does not
5include industrial hemp as defined and authorized under the
6Industrial Hemp Act. "Cannabis" also means cannabis flower,
7concentrate, and cannabis-infused products.
8    "Cannabis business establishment" means a cultivation
9center, craft grower, processing organization, infuser
10organization, dispensing organization, or transporting
11organization.
12    "Cannabis concentrate" means a product derived from
13cannabis that is produced by extracting cannabinoids,
14including tetrahydrocannabinol (THC), from the plant through
15the use of propylene glycol, glycerin, butter, olive oil, or
16other typical cooking fats; water, ice, or dry ice; or butane,
17propane, CO2, ethanol, or isopropanol and with the intended
18use of smoking or making a cannabis-infused product. The use
19of any other solvent is expressly prohibited unless and until
20it is approved by the Department of Agriculture.
21    "Cannabis container" means a sealed or resealable,
22traceable, container, or package used for the purpose of
23containment of cannabis or cannabis-infused product during
24transportation.
25    "Cannabis flower" means marijuana, hashish, and other
26substances that are identified as including any parts of the

 

 

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1plant Cannabis sativa and including derivatives or subspecies,
2such as indica, of all strains of cannabis; including raw
3kief, leaves, and buds, but not resin that has been extracted
4from any part of such plant; nor any compound, manufacture,
5salt, derivative, mixture, or preparation of such plant, its
6seeds, or resin.
7    "Cannabis-infused product" means a beverage, food, oil,
8ointment, tincture, topical formulation, or another product
9containing cannabis or cannabis concentrate that is not
10intended to be smoked.
11    "Cannabis paraphernalia" means equipment, products, or
12materials intended to be used for planting, propagating,
13cultivating, growing, harvesting, manufacturing, producing,
14processing, preparing, testing, analyzing, packaging,
15repackaging, storing, containing, concealing, ingesting, or
16otherwise introducing cannabis into the human body.
17    "Cannabis plant monitoring system" or "plant monitoring
18system" means a system that includes, but is not limited to,
19testing and data collection established and maintained by the
20cultivation center, craft grower, or processing organization
21and that is available to the Department of Revenue, the
22Department of Agriculture, the Department of Financial and
23Professional Regulation, and the Illinois State Police for the
24purposes of documenting each cannabis plant and monitoring
25plant development throughout the life cycle of a cannabis
26plant cultivated for the intended use by a customer from seed

 

 

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1planting to final packaging.
2    "Cannabis testing facility" means an entity registered by
3the Department of Agriculture to test cannabis for potency and
4contaminants.
5    "Clone" means a plant section from a female cannabis plant
6not yet rootbound, growing in a water solution or other
7propagation matrix, that is capable of developing into a new
8plant.
9    "Community College Cannabis Vocational Training Pilot
10Program faculty participant" means a person who is 21 years of
11age or older, licensed by the Department of Agriculture, and
12is employed or contracted by an Illinois community college to
13provide student instruction using cannabis plants at an
14Illinois Community College.
15    "Community College Cannabis Vocational Training Pilot
16Program faculty participant Agent Identification Card" means a
17document issued by the Department of Agriculture that
18identifies a person as a Community College Cannabis Vocational
19Training Pilot Program faculty participant.
20    "Conditional Adult Use Dispensing Organization License"
21means a contingent license awarded to applicants for an Adult
22Use Dispensing Organization License that reserves the right to
23an Adult Use Dispensing Organization License if the applicant
24meets certain conditions described in this Act, but does not
25entitle the recipient to begin purchasing or selling cannabis
26or cannabis-infused products.

 

 

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1    "Conditional Adult Use Cultivation Center License" means a
2license awarded to top-scoring applicants for an Adult Use
3Cultivation Center License that reserves the right to an Adult
4Use Cultivation Center License if the applicant meets certain
5conditions as determined by the Department of Agriculture by
6rule, but does not entitle the recipient to begin growing,
7processing, or selling cannabis or cannabis-infused products.
8    "Craft grower" means a facility operated by an
9organization or business that is licensed by the Department of
10Agriculture to cultivate, dry, cure, and package cannabis and
11perform other necessary activities to make cannabis available
12for sale at a dispensing organization or use at a processing
13organization. A craft grower may contain up to 5,000 square
14feet of canopy space on its premises for plants in the
15flowering state. The Department of Agriculture may authorize
16an increase or decrease of flowering stage cultivation space
17in increments of 3,000 square feet by rule based on market
18need, craft grower capacity, and the licensee's history of
19compliance or noncompliance, with a maximum space of 14,000
20square feet for cultivating plants in the flowering stage,
21which must be cultivated in all stages of growth in an enclosed
22and secure area. A craft grower may share premises with a
23processing organization or a dispensing organization, or both,
24provided each licensee stores currency and cannabis or
25cannabis-infused products in a separate secured vault to which
26the other licensee does not have access or all licensees

 

 

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1sharing a vault share more than 50% of the same ownership.
2    "Craft grower agent" means a principal officer, board
3member, employee, or other agent of a craft grower who is 21
4years of age or older.
5    "Craft Grower Agent Identification Card" means a document
6issued by the Department of Agriculture that identifies a
7person as a craft grower agent.
8    "Cultivation center" means a facility operated by an
9organization or business that is licensed by the Department of
10Agriculture to cultivate, process, transport (unless otherwise
11limited by this Act), and perform other necessary activities
12to provide cannabis and cannabis-infused products to cannabis
13business establishments.
14    "Cultivation center agent" means a principal officer,
15board member, employee, or other agent of a cultivation center
16who is 21 years of age or older.
17    "Cultivation Center Agent Identification Card" means a
18document issued by the Department of Agriculture that
19identifies a person as a cultivation center agent.
20    "Currency" means currency and coin of the United States.
21    "Dispensary" means a facility operated by a dispensing
22organization at which activities licensed by this Act may
23occur.
24    "Dispensary Applicant" means the Proposed Dispensing
25Organization Name as stated on an application for a
26Conditional Adult Use Dispensing Organization License.

 

 

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1    "Dispensing organization" means a facility operated by an
2organization or business that is licensed by the Department of
3Financial and Professional Regulation to acquire cannabis from
4a cultivation center, craft grower, processing organization,
5or another dispensary for the purpose of selling or dispensing
6cannabis, cannabis-infused products, cannabis seeds,
7paraphernalia, or related supplies under this Act to
8purchasers or to qualified registered medical cannabis
9patients and caregivers. As used in this Act, "dispensing
10organization" includes a registered medical cannabis
11organization as defined in the Compassionate Use of Medical
12Cannabis Program Act or its successor Act that has obtained an
13Early Approval Adult Use Dispensing Organization License.
14    "Dispensing organization agent" means a principal officer,
15employee, or agent of a dispensing organization who is 21
16years of age or older.
17    "Dispensing organization agent identification card" means
18a document issued by the Department of Financial and
19Professional Regulation that identifies a person as a
20dispensing organization agent.
21    "Disproportionately Impacted Area" means a census tract or
22comparable geographic area that satisfies the following
23criteria as determined by the Department of Commerce and
24Economic Opportunity, that:
25        (1) meets at least one of the following criteria:
26            (A) the area has a poverty rate of at least 20%

 

 

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1        according to the latest federal decennial census; or
2            (B) 75% or more of the children in the area
3        participate in the federal free lunch program
4        according to reported statistics from the State Board
5        of Education; or
6            (C) at least 20% of the households in the area
7        receive assistance under the Supplemental Nutrition
8        Assistance Program; or
9            (D) the area has an average unemployment rate, as
10        determined by the Illinois Department of Employment
11        Security, that is more than 120% of the national
12        unemployment average, as determined by the United
13        States Department of Labor, for a period of at least 2
14        consecutive calendar years preceding the date of the
15        application; and
16        (2) has high rates of arrest, conviction, and
17    incarceration related to the sale, possession, use,
18    cultivation, manufacture, or transport of cannabis.
19    "Early Approval Adult Use Cultivation Center License"
20means a license that permits a medical cannabis cultivation
21center licensed under the Compassionate Use of Medical
22Cannabis Program Act as of the effective date of this Act to
23begin cultivating, infusing, packaging, transporting (unless
24otherwise provided in this Act), processing, and selling
25cannabis or cannabis-infused product to cannabis business
26establishments for resale to purchasers as permitted by this

 

 

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1Act as of January 1, 2020.
2    "Early Approval Adult Use Dispensing Organization License"
3means a license that permits a medical cannabis dispensing
4organization licensed under the Compassionate Use of Medical
5Cannabis Program Act as of the effective date of this Act to
6begin selling cannabis or cannabis-infused product to
7purchasers as permitted by this Act as of January 1, 2020.
8    "Early Approval Adult Use Dispensing Organization at a
9secondary site" means a license that permits a medical
10cannabis dispensing organization licensed under the
11Compassionate Use of Medical Cannabis Program Act as of the
12effective date of this Act to begin selling cannabis or
13cannabis-infused product to purchasers as permitted by this
14Act on January 1, 2020 at a different dispensary location from
15its existing registered medical dispensary location.
16    "Eligible Tied Applicant" means a Tied Applicant that is
17eligible to participate in the process by which a remaining
18available license is distributed by lot pursuant to a Tied
19Applicant Lottery.
20    "Enclosed, locked facility" means a room, greenhouse,
21building, or other enclosed area equipped with locks or other
22security devices that permit access only by cannabis business
23establishment agents working for the licensed cannabis
24business establishment or acting pursuant to this Act to
25cultivate, process, store, or distribute cannabis.
26    "Enclosed, locked space" means a closet, room, greenhouse,

 

 

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1building, or other enclosed area equipped with locks or other
2security devices that permit access only by authorized
3individuals under this Act. "Enclosed, locked space" may
4include:
5        (1) a space within a residential building that (i) is
6    the primary residence of the individual cultivating 5 or
7    fewer cannabis plants that are more than 5 inches tall and
8    (ii) includes sleeping quarters and indoor plumbing. The
9    space must only be accessible by a key or code that is
10    different from any key or code that can be used to access
11    the residential building from the exterior; or
12        (2) a structure, such as a shed or greenhouse, that
13    lies on the same plot of land as a residential building
14    that (i) includes sleeping quarters and indoor plumbing
15    and (ii) is used as a primary residence by the person
16    cultivating 5 or fewer cannabis plants that are more than
17    5 inches tall, such as a shed or greenhouse. The structure
18    must remain locked when it is unoccupied by people.
19    "Financial institution" has the same meaning as "financial
20organization" as defined in Section 1501 of the Illinois
21Income Tax Act, and also includes the holding companies,
22subsidiaries, and affiliates of such financial organizations.
23    "Flowering stage" means the stage of cultivation where and
24when a cannabis plant is cultivated to produce plant material
25for cannabis products. This includes mature plants as follows:
26        (1) if greater than 2 stigmas are visible at each

 

 

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1    internode of the plant; or
2        (2) if the cannabis plant is in an area that has been
3    intentionally deprived of light for a period of time
4    intended to produce flower buds and induce maturation,
5    from the moment the light deprivation began through the
6    remainder of the marijuana plant growth cycle.
7    "Individual" means a natural person.
8    "Infuser organization" or "infuser" means a facility
9operated by an organization or business that is licensed by
10the Department of Agriculture to directly incorporate cannabis
11or cannabis concentrate into a product formulation to produce
12a cannabis-infused product.
13    "Kief" means the resinous crystal-like trichomes that are
14found on cannabis and that are accumulated, resulting in a
15higher concentration of cannabinoids, untreated by heat or
16pressure, or extracted using a solvent.
17    "Labor peace agreement" means an agreement between a
18cannabis business establishment and any labor organization
19recognized under the National Labor Relations Act, referred to
20in this Act as a bona fide labor organization, that prohibits
21labor organizations and members from engaging in picketing,
22work stoppages, boycotts, and any other economic interference
23with the cannabis business establishment. This agreement means
24that the cannabis business establishment has agreed not to
25disrupt efforts by the bona fide labor organization to
26communicate with, and attempt to organize and represent, the

 

 

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1cannabis business establishment's employees. The agreement
2shall provide a bona fide labor organization access at
3reasonable times to areas in which the cannabis business
4establishment's employees work, for the purpose of meeting
5with employees to discuss their right to representation,
6employment rights under State law, and terms and conditions of
7employment. This type of agreement shall not mandate a
8particular method of election or certification of the bona
9fide labor organization.
10    "Limited access area" means a room or other area under the
11control of a cannabis dispensing organization licensed under
12this Act and upon the licensed premises where cannabis sales
13occur with access limited to purchasers, dispensing
14organization owners and other dispensing organization agents,
15or service professionals conducting business with the
16dispensing organization, or, if sales to registered qualifying
17patients, caregivers, provisional patients, and Opioid
18Alternative Pilot Program participants licensed pursuant to
19the Compassionate Use of Medical Cannabis Program Act are also
20permitted at the dispensary, registered qualifying patients,
21caregivers, provisional patients, and Opioid Alternative Pilot
22Program participants.
23    "Member of an impacted family" means an individual who has
24a parent, legal guardian, child, spouse, or dependent, or was
25a dependent of an individual who, prior to the effective date
26of this Act, was arrested for, convicted of, or adjudicated

 

 

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1delinquent for any offense that is eligible for expungement
2under this Act.
3    "Mother plant" means a cannabis plant that is cultivated
4or maintained for the purpose of generating clones, and that
5will not be used to produce plant material for sale to an
6infuser or dispensing organization.
7    "Ordinary public view" means within the sight line with
8normal visual range of a person, unassisted by visual aids,
9from a public street or sidewalk adjacent to real property, or
10from within an adjacent property.
11    "Ownership and control" means ownership of at least 51% of
12the business, including corporate stock if a corporation, and
13control over the management and day-to-day operations of the
14business and an interest in the capital, assets, and profits
15and losses of the business proportionate to percentage of
16ownership.
17    "Person" means a natural individual, firm, partnership,
18association, joint stock company, joint venture, public or
19private corporation, limited liability company, or a receiver,
20executor, trustee, guardian, or other representative appointed
21by order of any court.
22    "Possession limit" means the amount of cannabis under
23Section 10-10 that may be possessed at any one time by a person
2421 years of age or older or who is a registered qualifying
25medical cannabis patient or caregiver under the Compassionate
26Use of Medical Cannabis Program Act.

 

 

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1    "Principal officer" includes a cannabis business
2establishment applicant or licensed cannabis business
3establishment's board member, owner with more than 1% interest
4of the total cannabis business establishment or more than 5%
5interest of the total cannabis business establishment of a
6publicly traded company, president, vice president, secretary,
7treasurer, partner, officer, member, manager member, or person
8with a profit sharing, financial interest, or revenue sharing
9arrangement. The definition includes a person with authority
10to control the cannabis business establishment, a person who
11assumes responsibility for the debts of the cannabis business
12establishment and who is further defined in this Act.
13    "Primary residence" means a dwelling where a person
14usually stays or stays more often than other locations. It may
15be determined by, without limitation, presence, tax filings;
16address on an Illinois driver's license, an Illinois
17Identification Card, or an Illinois Person with a Disability
18Identification Card; or voter registration. No person may have
19more than one primary residence.
20    "Processing organization" or "processor" means a facility
21operated by an organization or business that is licensed by
22the Department of Agriculture to either extract constituent
23chemicals or compounds to produce cannabis concentrate or
24incorporate cannabis or cannabis concentrate into a product
25formulation to produce a cannabis product.
26    "Processing organization agent" means a principal officer,

 

 

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1board member, employee, or agent of a processing organization.
2    "Processing organization agent identification card" means
3a document issued by the Department of Agriculture that
4identifies a person as a processing organization agent.
5    "Purchaser" means a person 21 years of age or older who
6acquires cannabis for a valuable consideration. "Purchaser"
7does not include a cardholder under the Compassionate Use of
8Medical Cannabis Program Act.
9    "Qualifying Applicant" means an applicant that submitted
10an application pursuant to Section 15-30 that received at
11least 85% of 250 application points available under Section
1215-30 as the applicant's final score and meets the definition
13of "Social Equity Applicant" as set forth under this Section.
14    "Qualifying Social Equity Justice Involved Applicant"
15means an applicant that submitted an application pursuant to
16Section 15-30 that received at least 85% of 250 application
17points available under Section 15-30 as the applicant's final
18score and meets the criteria of either paragraph (1) or (2) of
19the definition of "Social Equity Applicant" as set forth under
20this Section.
21    "Qualified Social Equity Applicant" means a Social Equity
22Applicant who has been awarded a conditional license under
23this Act to operate a cannabis business establishment.
24    "Resided" means an individual's primary residence was
25located within the relevant geographic area as established by
262 of the following:

 

 

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1        (1) a signed lease agreement that includes the
2    applicant's name;
3        (2) a property deed that includes the applicant's
4    name;
5        (3) school records;
6        (4) a voter registration card;
7        (5) an Illinois driver's license, an Illinois
8    Identification Card, or an Illinois Person with a
9    Disability Identification Card;
10        (6) a paycheck stub;
11        (7) a utility bill;
12        (8) tax records; or
13        (9) any other proof of residency or other information
14    necessary to establish residence as provided by rule.
15    "Smoking" means the inhalation of smoke caused by the
16combustion of cannabis.
17    "Social Equity Applicant" means an applicant that is an
18Illinois resident that meets one of the following criteria:
19        (1) an applicant with at least 51% ownership and
20    control by one or more individuals who have resided for at
21    least 5 of the preceding 10 years in a Disproportionately
22    Impacted Area;
23        (2) an applicant with at least 51% ownership and
24    control by one or more individuals who:
25            (i) have been arrested for, convicted of, or
26        adjudicated delinquent for any offense that is

 

 

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1        eligible for expungement under this Act; or
2            (ii) is a member of an impacted family;
3        (3) for applicants with a minimum of 10 full-time
4    employees, an applicant with at least 51% of current
5    employees who:
6            (i) currently reside in a Disproportionately
7        Impacted Area; or
8            (ii) have been arrested for, convicted of, or
9        adjudicated delinquent for any offense that is
10        eligible for expungement under this Act or member of
11        an impacted family.
12    Nothing in this Act shall be construed to preempt or limit
13the duties of any employer under the Job Opportunities for
14Qualified Applicants Act. Nothing in this Act shall permit an
15employer to require an employee to disclose sealed or expunged
16offenses, unless otherwise required by law.
17    "Tied Applicant" means an application submitted by a
18Dispensary Applicant pursuant to Section 15-30 that received
19the same number of application points under Section 15-30 as
20the Dispensary Applicant's final score as one or more
21top-scoring applications in the same BLS Region and would have
22been awarded a license but for the one or more other
23top-scoring applications that received the same number of
24application points. Each application for which a Dispensary
25Applicant was required to pay a required application fee for
26the application period ending January 2, 2020 shall be

 

 

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1considered an application of a separate Tied Applicant.
2    "Tied Applicant Lottery" means the process established
3under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
4Use Dispensing Organization Licenses pursuant to Sections
515-25 and 15-30 among Eligible Tied Applicants.
6    "Tincture" means a cannabis-infused solution, typically
7comprised of alcohol, glycerin, or vegetable oils, derived
8either directly from the cannabis plant or from a processed
9cannabis extract. A tincture is not an alcoholic liquor as
10defined in the Liquor Control Act of 1934. A tincture shall
11include a calibrated dropper or other similar device capable
12of accurately measuring servings.
13    "Transporting organization" or "transporter" means an
14organization or business that is licensed by the Department of
15Agriculture to transport cannabis or cannabis-infused product
16on behalf of a cannabis business establishment or a community
17college licensed under the Community College Cannabis
18Vocational Training Pilot Program.
19    "Transporting organization agent" means a principal
20officer, board member, employee, or agent of a transporting
21organization.
22    "Transporting organization agent identification card"
23means a document issued by the Department of Agriculture that
24identifies a person as a transporting organization agent.
25    "Unit of local government" means any county, city,
26village, or incorporated town.

 

 

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1    "Vegetative stage" means the stage of cultivation in which
2a cannabis plant is propagated to produce additional cannabis
3plants or reach a sufficient size for production. This
4includes seedlings, clones, mothers, and other immature
5cannabis plants as follows:
6        (1) if the cannabis plant is in an area that has not
7    been intentionally deprived of light for a period of time
8    intended to produce flower buds and induce maturation, it
9    has no more than 2 stigmas visible at each internode of the
10    cannabis plant; or
11        (2) any cannabis plant that is cultivated solely for
12    the purpose of propagating clones and is never used to
13    produce cannabis.
14(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
15102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
165-13-22.)
 
17    (410 ILCS 705/7-1)
18    Sec. 7-1. Findings.
19    (a) The General Assembly finds that the medical cannabis
20industry, established in 2014 through the Compassionate Use of
21Medical Cannabis Program Act, has shown that additional
22efforts are needed to reduce barriers to ownership. Through
23that program, 55 licenses for dispensing organizations and 20
24licenses for cultivation centers have been issued. Those
25licenses are held by only a small number of businesses, the

 

 

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1ownership of which does not sufficiently meet the General
2Assembly's interest in business ownership that reflects the
3population of the State of Illinois and that demonstrates the
4need to reduce barriers to entry for individuals and
5communities most adversely impacted by the enforcement of
6cannabis-related laws.
7    (b) In the interest of establishing a legal cannabis
8industry that is equitable and accessible to those most
9adversely impacted by the enforcement of drug-related laws in
10this State, including cannabis-related laws, the General
11Assembly finds and declares that a social equity program
12should be established.
13    (c) The General Assembly also finds and declares that
14individuals who have been arrested or incarcerated due to drug
15laws suffer long-lasting negative consequences, including
16impacts to employment, business ownership, housing, health,
17and long-term financial well-being.
18    (d) The General Assembly also finds and declares that
19family members, especially children, and communities of those
20who have been arrested or incarcerated due to drug laws,
21suffer from emotional, psychological, and financial harms as a
22result of such arrests or incarcerations.
23    (e) Furthermore, the General Assembly finds and declares
24that certain communities have disproportionately suffered the
25harms of enforcement of cannabis-related laws. Those
26communities face greater difficulties accessing traditional

 

 

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1banking systems and capital for establishing businesses.
2    (f) The General Assembly also finds that individuals who
3have resided in areas of high poverty suffer negative
4consequences, including barriers to entry in employment,
5business ownership, housing, health, and long-term financial
6well-being.
7    (g) The General Assembly also finds and declares that
8promotion of business ownership by individuals who have
9resided in areas of high poverty and high enforcement of
10cannabis-related laws furthers an equitable cannabis industry.
11    (g-1) The General Assembly also finds and recognizes that
12the dispensaries established under the Compassionate Use of
13Medical Cannabis Program Act enacted in 2014 have
14inadvertently placed those dispensaries with an Adult Use
15Dispensing Organization Social Equity License at a competitive
16disadvantage. This competitive imbalance stems primarily from
17the established dispensaries' existing market presence and
18their capacity to sell cannabis to a well-established medical
19patient base at lower prices, a benefit derived from the
20exemption of certain taxes applicable to medical cannabis
21sales.
22    (h) Therefore, in the interest of remedying the harms
23resulting from the disproportionate enforcement of
24cannabis-related laws, the General Assembly finds and declares
25that a social equity program should offer, among other things,
26financial assistance and license application benefits to

 

 

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1individuals most directly and adversely impacted by the
2enforcement of cannabis-related laws who are interested in
3starting cannabis business establishments.
4(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)