Rep. Arthur Turner

Filed: 3/17/2020

 

 


 

 


 
10100HB5545ham001LRB101 20629 CPF 70874 a

1
AMENDMENT TO HOUSE BILL 5545

2    AMENDMENT NO. ______. Amend House Bill 5545 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Section 1-10 as follows:
 
6    (410 ILCS 705/1-10)
7    Sec. 1-10. Definitions. In this Act:
8    "Adult Use Cultivation Center License" means a license
9issued by the Department of Agriculture that permits a person
10to act as a cultivation center under this Act and any
11administrative rule made in furtherance of this Act.
12    "Adult Use Dispensing Organization License" means a
13license issued by the Department of Financial and Professional
14Regulation that permits a person to act as a dispensing
15organization under this Act and any administrative rule made in
16furtherance of this Act.

 

 

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1    "Advertise" means to engage in promotional activities
2including, but not limited to: newspaper, radio, Internet and
3electronic media, and television advertising; the distribution
4of fliers and circulars; billboard advertising; and the display
5of window and interior signs. "Advertise" does not mean
6exterior signage displaying only the name of the licensed
7cannabis business establishment.
8    "BLS Region" means a region in Illinois used by the United
9States Bureau of Labor Statistics to gather and categorize
10certain employment and wage data. The 17 such regions in
11Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
12Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
13Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
14Rockford, St. Louis, Springfield, Northwest Illinois
15nonmetropolitan area, West Central Illinois nonmetropolitan
16area, East Central Illinois nonmetropolitan area, and South
17Illinois nonmetropolitan area.
18    "Cannabis" means marijuana, hashish, and other substances
19that are identified as including any parts of the plant
20Cannabis sativa and including derivatives or subspecies, such
21as indica, of all strains of cannabis, whether growing or not;
22the seeds thereof, the resin extracted from any part of the
23plant; and any compound, manufacture, salt, derivative,
24mixture, or preparation of the plant, its seeds, or resin,
25including tetrahydrocannabinol (THC) and all other naturally
26produced cannabinol derivatives, whether produced directly or

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1products in a separate secured vault to which the other
2licensee does not have access or all licensees sharing a vault
3share more than 50% of the same ownership.
4    "Craft grower agent" means a principal officer, board
5member, employee, or other agent of a craft grower who is 21
6years of age or older.
7    "Craft Grower Agent Identification Card" means a document
8issued by the Department of Agriculture that identifies a
9person as a craft grower agent.
10    "Cultivation center" means a facility operated by an
11organization or business that is licensed by the Department of
12Agriculture to cultivate, process, transport (unless otherwise
13limited by this Act), and perform other necessary activities to
14provide cannabis and cannabis-infused products to cannabis
15business establishments.
16    "Cultivation center agent" means a principal officer,
17board member, employee, or other agent of a cultivation center
18who is 21 years of age or older.
19    "Cultivation Center Agent Identification Card" means a
20document issued by the Department of Agriculture that
21identifies a person as a cultivation center agent.
22    "Currency" means currency and coin of the United States.
23    "Dispensary" means a facility operated by a dispensing
24organization at which activities licensed by this Act may
25occur.
26    "Dispensing organization" means a facility operated by an

 

 

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

 

 

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1            (B) 75% or more of the children in the area
2        participate in the federal free lunch program
3        according to reported statistics from the State Board
4        of Education; or
5            (C) at least 20% of the households in the area
6        receive assistance under the Supplemental Nutrition
7        Assistance Program; or
8            (D) the area has an average unemployment rate, as
9        determined by the Illinois Department of Employment
10        Security, that is more than 120% of the national
11        unemployment average, as determined by the United
12        States Department of Labor, for a period of at least 2
13        consecutive calendar years preceding the date of the
14        application; and
15        (2) has high rates of arrest, conviction, and
16    incarceration related to the sale, possession, use,
17    cultivation, manufacture, or transport of cannabis.
18    "Early Approval Adult Use Cultivation Center License"
19means a license that permits a medical cannabis cultivation
20center licensed under the Compassionate Use of Medical Cannabis
21Program Act as of the effective date of this Act to begin
22cultivating, infusing, packaging, transporting (unless
23otherwise provided in this Act), processing and selling
24cannabis or cannabis-infused product to cannabis business
25establishments for resale to purchasers as permitted by this
26Act as of January 1, 2020.

 

 

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

 

 

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

 

 

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1    remainder of the marijuana plant growth cycle.
2    "Individual" means a natural person.
3    "Infuser organization" or "infuser" means a facility
4operated by an organization or business that is licensed by the
5Department of Agriculture to directly incorporate cannabis or
6cannabis concentrate into a product formulation to produce a
7cannabis-infused product.
8    "Kief" means the resinous crystal-like trichomes that are
9found on cannabis and that are accumulated, resulting in a
10higher concentration of cannabinoids, untreated by heat or
11pressure, or extracted using a solvent.
12    "Labor peace agreement" means an agreement between a
13cannabis business establishment and any labor organization
14recognized under the National Labor Relations Act, referred to
15in this Act as a bona fide labor organization, that prohibits
16labor organizations and members from engaging in picketing,
17work stoppages, boycotts, and any other economic interference
18with the cannabis business establishment. This agreement means
19that the cannabis business establishment has agreed not to
20disrupt efforts by the bona fide labor organization to
21communicate with, and attempt to organize and represent, the
22cannabis business establishment's employees. The agreement
23shall provide a bona fide labor organization access at
24reasonable times to areas in which the cannabis business
25establishment's employees work, for the purpose of meeting with
26employees to discuss their right to representation, employment

 

 

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1rights under State law, and terms and conditions of employment.
2This type of agreement shall not mandate a particular method of
3election or certification of the bona fide labor organization.
4    "Limited access area" means a room or other area under the
5control of a cannabis dispensing organization licensed under
6this Act and upon the licensed premises where cannabis sales
7occur with access limited to purchasers, dispensing
8organization owners and other dispensing organization agents,
9or service professionals conducting business with the
10dispensing organization, or, if sales to registered qualifying
11patients, caregivers, provisional patients, and Opioid
12Alternative Pilot Program participants licensed pursuant to
13the Compassionate Use of Medical Cannabis Program Act are also
14permitted at the dispensary, registered qualifying patients,
15caregivers, provisional patients, and Opioid Alternative Pilot
16Program participants.
17    "Member of an impacted family" means an individual who has
18a parent, legal guardian, child, spouse, or dependent, or was a
19dependent of an individual who, prior to the effective date of
20this Act, was arrested for, convicted of, or adjudicated
21delinquent for any offense that is eligible for expungement
22under this Act.
23    "Mother plant" means a cannabis plant that is cultivated or
24maintained for the purpose of generating clones, and that will
25not be used to produce plant material for sale to an infuser or
26dispensing organization.

 

 

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1    "Ordinary public view" means within the sight line with
2normal visual range of a person, unassisted by visual aids,
3from a public street or sidewalk adjacent to real property, or
4from within an adjacent property.
5    "Ownership and control" means ownership of at least 51% of
6the business, including corporate stock if a corporation, and
7control over the management and day-to-day operations of the
8business and an interest in the capital, assets, and profits
9and losses of the business proportionate to percentage of
10ownership.
11    "Person" means a natural individual, firm, partnership,
12association, joint stock company, joint venture, public or
13private corporation, limited liability company, or a receiver,
14executor, trustee, guardian, or other representative appointed
15by order of any court.
16    "Possession limit" means the amount of cannabis under
17Section 10-10 that may be possessed at any one time by a person
1821 years of age or older or who is a registered qualifying
19medical cannabis patient or caregiver under the Compassionate
20Use of Medical Cannabis Program Act.
21    "Principal officer" includes a cannabis business
22establishment applicant or licensed cannabis business
23establishment's board member, owner with more than 1% interest
24of the total cannabis business establishment or more than 5%
25interest of the total cannabis business establishment of a
26publicly traded company, president, vice president, secretary,

 

 

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

 

 

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1does not include a cardholder under the Compassionate Use of
2Medical Cannabis Program Act.
3    "Qualified Social Equity Applicant" means a Social Equity
4Applicant who has been awarded a conditional license under this
5Act to operate a cannabis business establishment.
6    "Resided" means an individual's primary residence was
7located within the relevant geographic area as established by 2
8of the following:
9        (1) a signed lease agreement that includes the
10    applicant's name;
11        (2) a property deed that includes the applicant's name;
12        (3) school records;
13        (4) a voter registration card;
14        (5) an Illinois driver's license, an Illinois
15    Identification Card, or an Illinois Person with a
16    Disability Identification Card;
17        (6) a paycheck stub;
18        (7) a utility bill;
19        (8) tax records; or
20        (9) any other proof of residency or other information
21    necessary to establish residence as provided by rule.
22    "Smoking" means the inhalation of smoke caused by the
23combustion of cannabis.
24    "Social Equity Applicant" means an applicant that is an
25Illinois resident that meets one of the following criteria:
26        (1) an applicant with at least 51% ownership and

 

 

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1    control by one or more individuals who have resided for at
2    least 5 of the preceding 10 years in a Disproportionately
3    Impacted Area;
4        (2) an applicant with at least 51% ownership and
5    control by one or more individuals who:
6            (i) have been arrested for, convicted of, or
7        adjudicated delinquent for any offense that is
8        eligible for expungement under this Act; or
9            (ii) is a member of an impacted family;
10        (3) for applicants with a minimum of 10 full-time
11    employees, an applicant with at least 51% of current
12    employees who:
13            (i) currently reside in a Disproportionately
14        Impacted Area; or
15            (ii) have been arrested for, convicted of, or
16        adjudicated delinquent for any offense that is
17        eligible for expungement under this Act or member of an
18        impacted family; or .
19        (4) an applicant who exercises meaningful control over
20    the operations of the cannabis business establishment.
21    Nothing in this Act shall be construed to preempt or limit
22the duties of any employer under the Job Opportunities for
23Qualified Applicants Act. Nothing in this Act shall permit an
24employer to require an employee to disclose sealed or expunged
25offenses, unless otherwise required by law.
26    In evaluating whether an applicant has at least 51%

 

 

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1ownership and control by one or more individuals, the following
2factors shall be taken into account, with no factor being
3determinative:
4        (1) whether the applicant is immediately vested in the
5    applicant's ownership interests;
6        (2) whether the applicant has a substantial
7    opportunity to share in the profits of the cannabis
8    business establishment and in the gains from sale of the
9    business;
10        (3) whether nonapplicant owners are entitled to
11    preferential returns of profits;
12        (4) whether, and the conditions under which,
13    nonapplicant owners or third parties can require the
14    applicant to sell the applicant's ownership interests;
15        (5) whether, and the extent to which, an applicant's
16    ownership is subject to repurchase by the cannabis business
17    establishment or a nonapplicant owner for less than fair
18    market value, except that repurchase for less than fair
19    market value in the event of material breach or misconduct
20    by an applicant shall not be deemed to abrogate bona fide
21    ownership by the applicant;
22        (6) whether, and the extent to which, sales or
23    transfers by the applicant of the applicant's ownership
24    interests are restricted; and
25        (7) whether, and the extent to which, applicant owners
26    are subject to noncompete agreements.

 

 

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1    In evaluating whether an applicant exercises meaningful
2control over the operations of a cannabis business
3establishment, the following factors shall be taken into
4account, with no factor being determinative:
5        (1) the prior business experience of the applicant's
6    owner;
7        (2) whether the applicant's owner participates in and
8    manages the day to day retail operations of the cannabis
9    business establishment, including, but not limited to, the
10    hiring and firing of retail employees and contracting for
11    goods and services; and
12        (3) the extent to which any management contract or
13    other third-party agreement restricts the decision-making
14    power of the applicant's owner.
15    "Tincture" means a cannabis-infused solution, typically
16comprised of alcohol, glycerin, or vegetable oils, derived
17either directly from the cannabis plant or from a processed
18cannabis extract. A tincture is not an alcoholic liquor as
19defined in the Liquor Control Act of 1934. A tincture shall
20include a calibrated dropper or other similar device capable of
21accurately measuring servings.
22    "Transporting organization" or "transporter" means an
23organization or business that is licensed by the Department of
24Agriculture to transport cannabis or cannabis-infused product
25on behalf of a cannabis business establishment or a community
26college licensed under the Community College Cannabis

 

 

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1Vocational Training Pilot Program.
2    "Transporting organization agent" means a principal
3officer, board member, employee, or agent of a transporting
4organization.
5    "Transporting organization agent identification card"
6means a document issued by the Department of Agriculture that
7identifies a person as a transporting organization agent.
8    "Unit of local government" means any county, city, village,
9or incorporated town.
10    "Vegetative stage" means the stage of cultivation in which
11a cannabis plant is propagated to produce additional cannabis
12plants or reach a sufficient size for production. This includes
13seedlings, clones, mothers, and other immature cannabis plants
14as follows:
15        (1) if the cannabis plant is in an area that has not
16    been intentionally deprived of light for a period of time
17    intended to produce flower buds and induce maturation, it
18    has no more than 2 stigmas visible at each internode of the
19    cannabis plant; or
20        (2) any cannabis plant that is cultivated solely for
21    the purpose of propagating clones and is never used to
22    produce cannabis.
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".