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1 | AN ACT concerning health.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Cannabis Regulation and Tax Act is amended | |||||||||||||||||||||||||||||||||||||||
5 | by adding Article 43 as follows: | |||||||||||||||||||||||||||||||||||||||
6 | (410 ILCS 705/Art. 43 heading new) | |||||||||||||||||||||||||||||||||||||||
7 | ARTICLE 43. | |||||||||||||||||||||||||||||||||||||||
8 | License and Regulation of | |||||||||||||||||||||||||||||||||||||||
9 | Cannabis Delivery Organizations. | |||||||||||||||||||||||||||||||||||||||
10 | (410 ILCS 705/43-1 new) | |||||||||||||||||||||||||||||||||||||||
11 | Sec. 43-1. Definition. In this Article, "Department" means | |||||||||||||||||||||||||||||||||||||||
12 | the Department of Financial and Professional Regulation. | |||||||||||||||||||||||||||||||||||||||
13 | (410 ILCS 705/43-5 new) | |||||||||||||||||||||||||||||||||||||||
14 | Sec. 43-5. Issuance of licenses. | |||||||||||||||||||||||||||||||||||||||
15 | (a) The Department shall issue cannabis delivery | |||||||||||||||||||||||||||||||||||||||
16 | organization licenses through a process provided for in this | |||||||||||||||||||||||||||||||||||||||
17 | Article and by rule. | |||||||||||||||||||||||||||||||||||||||
18 | (b) The Department shall make the application for cannabis | |||||||||||||||||||||||||||||||||||||||
19 | delivery organization licenses at a time set by rule. | |||||||||||||||||||||||||||||||||||||||
20 | (410 ILCS 705/43-10 new) |
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1 | Sec. 43-10. Application. | ||||||
2 | (a) When applying for a cannabis delivery organization | ||||||
3 | license, the applicant shall submit the following in such form | ||||||
4 | as the Department may direct: | ||||||
5 | (1) a nonrefundable application fee of $500 or, after | ||||||
6 | January 1, 2024, another amount as set by rule by the | ||||||
7 | Department, to be deposited into the Cannabis Regulation | ||||||
8 | Fund; | ||||||
9 | (2) the legal name of the cannabis delivery | ||||||
10 | organization; | ||||||
11 | (3) the proposed physical address of the cannabis | ||||||
12 | delivery organization, if one is proposed; | ||||||
13 | (4) the name, address, social security number, and | ||||||
14 | date of birth of each principal officer and board member | ||||||
15 | of the cannabis delivery organization; | ||||||
16 | (5) the details of any administrative or judicial | ||||||
17 | proceeding in which any of the principal officers or board | ||||||
18 | members of the cannabis delivery organization (i) pled | ||||||
19 | guilty, were convicted, fined, or had a registration or | ||||||
20 | license suspended or revoked or (ii) managed or served on | ||||||
21 | the board of a business or nonprofit organization that | ||||||
22 | pled guilty, was convicted, fined, or had a registration | ||||||
23 | or license suspended or revoked; | ||||||
24 | (6) verification from the Illinois State Police that | ||||||
25 | all background checks of the prospective principal | ||||||
26 | officers, board members, and agents of the cannabis |
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1 | delivery organization have been conducted; | ||||||
2 | (7) a copy of the current local zoning ordinance or | ||||||
3 | permit and verification that the proposed cannabis | ||||||
4 | delivery organization is in compliance with the local | ||||||
5 | zoning rules and distance limitations established by the | ||||||
6 | local jurisdiction, if the cannabis delivery organization | ||||||
7 | has a business address; | ||||||
8 | (8) proposed employment practices, in which the | ||||||
9 | applicant must demonstrate a plan of action to inform, | ||||||
10 | hire, and educate minorities, women, veterans, and persons | ||||||
11 | with disabilities, engage in fair labor practices, and | ||||||
12 | provide worker protections; | ||||||
13 | (9) whether an applicant can demonstrate experience in | ||||||
14 | or business practices that promote economic empowerment in | ||||||
15 | Disproportionately Impacted Areas; | ||||||
16 | (10) the identity of every person having a financial | ||||||
17 | or voting interest of 5% or more in the cannabis delivery | ||||||
18 | organization with respect to which the license is sought, | ||||||
19 | whether a trust, corporation, partnership, limited | ||||||
20 | liability company, or sole proprietorship, including the | ||||||
21 | name and address of each person; and | ||||||
22 | (11) any other information required by rule. | ||||||
23 | (b) Applicants must submit all required information, | ||||||
24 | including the information required in Section 43-35, to the | ||||||
25 | Department. Failure by an applicant to submit all required | ||||||
26 | information may result in the application being disqualified. |
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1 | (c) Each principal officer and board member of an | ||||||
2 | applicant shall be at least 21 years of age. | ||||||
3 | (d) If the Department receives an application with missing | ||||||
4 | information, the Department may issue a deficiency notice to | ||||||
5 | the applicant. The applicant shall have 10 calendar days from | ||||||
6 | the date of the deficiency notice to resubmit the incomplete | ||||||
7 | information. Applications that are still incomplete after this | ||||||
8 | opportunity to cure will not be scored and will be | ||||||
9 | disqualified. | ||||||
10 | (410 ILCS 705/43-15 new) | ||||||
11 | Sec. 43-15. Issuing licenses. | ||||||
12 | (a) The Department shall, by rule, develop a system to | ||||||
13 | score cannabis delivery applications to administratively rank | ||||||
14 | applications based on the clarity, organization, and quality | ||||||
15 | of the applicant's responses to required information. | ||||||
16 | Applicants shall be awarded points based on the following | ||||||
17 | categories: | ||||||
18 | (1) suitability of employee training plan; | ||||||
19 | (2) security and recordkeeping plan; | ||||||
20 | (3) business plan; | ||||||
21 | (4) labor and employment practices, which shall | ||||||
22 | constitute no less than 2% of total available points; | ||||||
23 | (5) environmental plan that demonstrates an | ||||||
24 | environmental plan of action to minimize the carbon | ||||||
25 | footprint, environmental impact, and resource needs for |
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1 | the cannabis delivery organization; | ||||||
2 | (6) the applicant is 51% or more owned and controlled | ||||||
3 | by an individual or individuals who have been an Illinois | ||||||
4 | resident for the past 5 years as proved by tax records or 2 | ||||||
5 | of the following: | ||||||
6 | (A) a signed lease agreement that includes the | ||||||
7 | applicant's name; | ||||||
8 | (B) a property deed that includes the applicant's | ||||||
9 | name; | ||||||
10 | (C) school records; | ||||||
11 | (D) a voter registration card; | ||||||
12 | (E) an Illinois driver's license, an Illinois | ||||||
13 | Identification Card, or an Illinois Person with a | ||||||
14 | Disability Identification Card; | ||||||
15 | (F) a paycheck stub; | ||||||
16 | (G) a utility bill; or | ||||||
17 | (H) any other proof of residency or other | ||||||
18 | information necessary to establish residence as | ||||||
19 | provided by rule; | ||||||
20 | (7) a diversity plan that includes a narrative of not | ||||||
21 | more than 2,500 words that establishes a goal of diversity | ||||||
22 | in ownership, management, employment, and contracting to | ||||||
23 | ensure that diverse participants and groups are afforded | ||||||
24 | equality of opportunity; and | ||||||
25 | (8) any other criteria the Department may, by rule, | ||||||
26 | set for points. |
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1 | (b) Applicants must qualify as a social equity applicant | ||||||
2 | in order to be awarded a cannabis delivery organization | ||||||
3 | license. | ||||||
4 | (c) Should an applicant be awarded a cannabis delivery | ||||||
5 | organization license, the information and plans that the | ||||||
6 | applicant provided in its application, including any plans | ||||||
7 | submitted for the acquiring of bonus points, shall be a | ||||||
8 | mandatory condition of the permit. Any variation from or | ||||||
9 | failure to perform such plans may result in discipline, | ||||||
10 | including the revocation or nonrenewal of a license. | ||||||
11 | (d) If an applicant is awarded a cannabis delivery | ||||||
12 | organization license, the applicant shall pay a prorated fee | ||||||
13 | of $500 prior to receiving the license, to be deposited into | ||||||
14 | the Cannabis Regulation Fund. The Department may, by rule, | ||||||
15 | adjust the fee in this Section after January 1, 2024. | ||||||
16 | (410 ILCS 705/43-20 new) | ||||||
17 | Sec. 43-20. Denial of application. An application for a | ||||||
18 | cannabis delivery organization license shall be denied if any | ||||||
19 | of the following conditions are met: | ||||||
20 | (1) the applicant failed to submit the materials | ||||||
21 | required by this Article; | ||||||
22 | (2) the applicant would not be in compliance with | ||||||
23 | local zoning rules or permit requirements; | ||||||
24 | (3) one or more of the prospective principal officers | ||||||
25 | or board members causes a violation of Section 43-25; |
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1 | (4) one or more of the principal officers or board | ||||||
2 | members is under 21 years of age; | ||||||
3 | (5) the person has submitted an application for a | ||||||
4 | license under this Article that contains false | ||||||
5 | information; or | ||||||
6 | (6) the licensee, principal officer, board member, or | ||||||
7 | person having a financial or voting interest of 5% or | ||||||
8 | greater in the licensee is delinquent in filing any | ||||||
9 | required tax returns or paying any amounts owed to the | ||||||
10 | State of Illinois. | ||||||
11 | (410 ILCS 705/43-25 new) | ||||||
12 | Sec. 43-25. Cannabis delivery organization requirements; | ||||||
13 | prohibitions. | ||||||
14 | (a) The operating documents of a cannabis delivery | ||||||
15 | organization shall include procedures for the oversight of the | ||||||
16 | organization, an inventory monitoring system including a | ||||||
17 | physical inventory recorded weekly, accurate recordkeeping, | ||||||
18 | and a staffing plan. | ||||||
19 | (b) All cannabis delivered by a cannabis delivery | ||||||
20 | organization must be entered into a data collection system and | ||||||
21 | placed into a cannabis container for transport. | ||||||
22 | (c) Cannabis delivery organizations are subject to random | ||||||
23 | inspections by the Department, the Department of Public | ||||||
24 | Health, and the Illinois State Police. | ||||||
25 | (d) A cannabis delivery organization agent shall notify |
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1 | local law enforcement, the Illinois State Police, and the | ||||||
2 | Department of Agriculture within 24 hours after the discovery | ||||||
3 | of any loss or theft. Notification shall be made by phone, in | ||||||
4 | person, or by written or electronic communication. | ||||||
5 | (e) No person under the age of 21 years shall be in a | ||||||
6 | vehicle transporting cannabis goods. | ||||||
7 | (f) No person or individual who is not a cannabis delivery | ||||||
8 | organization agent shall be in a vehicle while transporting | ||||||
9 | cannabis goods. | ||||||
10 | (g) A cannabis delivery organization agent must keep his | ||||||
11 | or her identification card visible at all times when on the | ||||||
12 | property of a cannabis business establishment and during the | ||||||
13 | transportation of cannabis when acting under his or her duties | ||||||
14 | as a cannabis delivery organization agent. During these times, | ||||||
15 | the cannabis delivery organization agent must also provide the | ||||||
16 | identification card upon request of any law enforcement | ||||||
17 | officer engaged in his or her official duties. | ||||||
18 | (h) A copy of the cannabis delivery organization's | ||||||
19 | registration and a manifest for the delivery shall be present | ||||||
20 | in any vehicle transporting cannabis. | ||||||
21 | (i) Cannabis shall be transported so it is not visible or | ||||||
22 | recognizable from outside the vehicle. | ||||||
23 | (j) A vehicle transporting cannabis must not bear any | ||||||
24 | markings to indicate the vehicle contains cannabis or bear the | ||||||
25 | name or logo of the cannabis business establishment. | ||||||
26 | (k) Cannabis must be transported in an enclosed, locked |
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1 | storage compartment that is secured or affixed to the vehicle. | ||||||
2 | (l) The Department may, by rule, impose any other | ||||||
3 | requirements or prohibitions on the transportation of | ||||||
4 | cannabis. | ||||||
5 | (410 ILCS 705/43-27 new) | ||||||
6 | Sec. 43-27. Procurement of cannabis products. A cannabis | ||||||
7 | delivery organization may obtain cannabis products from any | ||||||
8 | cannabis business organization licensed in the State. | ||||||
9 | (410 ILCS 705/43-30 new) | ||||||
10 | Sec. 43-30. Cannabis delivery agent identification card. | ||||||
11 | (a) The Department shall: | ||||||
12 | (1) establish, by rule, the information required in an | ||||||
13 | initial application or renewal application for an agent | ||||||
14 | identification card submitted under this Article and the | ||||||
15 | nonrefundable fee to accompany the initial application or | ||||||
16 | renewal application; | ||||||
17 | (2) verify the information contained in an initial | ||||||
18 | application or renewal application for an agent | ||||||
19 | identification card submitted under this Article and | ||||||
20 | approve or deny an application within 30 days of receiving | ||||||
21 | a completed initial application or renewal application and | ||||||
22 | all supporting documentation required by rule; | ||||||
23 | (3) issue an agent identification card to a qualifying | ||||||
24 | agent within 15 business days of approving the initial |
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1 | application or renewal application; | ||||||
2 | (4) enter the license number of the cannabis delivery | ||||||
3 | organization where the agent works; and | ||||||
4 | (5) allow for an electronic initial application and | ||||||
5 | renewal application process and provide a confirmation by | ||||||
6 | electronic or other methods that an application has been | ||||||
7 | submitted; the Department may, by rule, require | ||||||
8 | prospective agents to file their applications by | ||||||
9 | electronic means and provide notices to the agents by | ||||||
10 | electronic means. | ||||||
11 | (b) An agent must keep his or her identification card | ||||||
12 | visible at all times when on the property of a cannabis | ||||||
13 | business establishment, including the cannabis delivery | ||||||
14 | organization for which he or she is an agent. | ||||||
15 | (c) The agent identification cards shall contain the | ||||||
16 | following: | ||||||
17 | (1) the name of the cardholder; | ||||||
18 | (2) the date of issuance and expiration date of the | ||||||
19 | identification card; | ||||||
20 | (3) a random 10-digit alphanumeric identification | ||||||
21 | number containing at least 4 numbers and at least 4 | ||||||
22 | letters that are unique to the holder; | ||||||
23 | (4) a photograph of the cardholder; and | ||||||
24 | (5) the legal name of the cannabis delivery | ||||||
25 | organization employing the agent. | ||||||
26 | (d) An agent identification card shall be immediately |
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1 | returned to the cannabis delivery organization of the agent | ||||||
2 | upon termination of his or her employment. | ||||||
3 | (e) Any agent identification card lost by a cannabis | ||||||
4 | delivery agent shall be reported to the Illinois State Police | ||||||
5 | and the Department immediately upon discovery of the loss. | ||||||
6 | (f) An application for an agent identification card shall | ||||||
7 | be denied if the applicant is delinquent in filing any | ||||||
8 | required tax returns or paying any amounts owed to the State of | ||||||
9 | Illinois. | ||||||
10 | (410 ILCS 705/43-35 new) | ||||||
11 | Sec. 43-35. Cannabis delivery organization background | ||||||
12 | checks. | ||||||
13 | (a) Through the Illinois State Police, the Department | ||||||
14 | shall conduct a background check of the prospective principal | ||||||
15 | officers, board members, and agents of a cannabis delivery | ||||||
16 | organization applying for a license or identification card | ||||||
17 | under this Article. The Illinois State Police shall charge a | ||||||
18 | fee set by rule for conducting the criminal history record | ||||||
19 | check, which shall be deposited into the State Police Services | ||||||
20 | Fund and shall not exceed the actual cost of the record check. | ||||||
21 | In order to carry out this provision, each cannabis delivery | ||||||
22 | organization's prospective principal officer, board member, or | ||||||
23 | agent shall submit a full set of fingerprints to the Illinois | ||||||
24 | State Police for the purpose of obtaining a State and federal | ||||||
25 | criminal records check. These fingerprints shall be checked |
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1 | against the fingerprint records now and hereafter, to the | ||||||
2 | extent allowed by law, filed in the Illinois State Police and | ||||||
3 | Federal Bureau of Investigation criminal history records | ||||||
4 | databases. The Illinois State Police shall furnish, following | ||||||
5 | positive identification, all conviction information to the | ||||||
6 | Department. | ||||||
7 | (b) When applying for the initial license or | ||||||
8 | identification card, the background checks for all prospective | ||||||
9 | principal officers, board members, and agents shall be | ||||||
10 | completed before submitting the application to the Department. | ||||||
11 | (410 ILCS 705/43-40 new) | ||||||
12 | Sec. 43-40. Renewal of cannabis delivery organization | ||||||
13 | licenses and agent identification cards. | ||||||
14 | (a) Licenses and identification cards issued under this | ||||||
15 | Article shall be renewed annually. A cannabis delivery | ||||||
16 | organization shall receive written or electronic notice 90 | ||||||
17 | days before the expiration of its current license that the | ||||||
18 | license will expire. The Department shall grant a renewal | ||||||
19 | within 45 days of submission of a renewal application if: | ||||||
20 | (1) the cannabis delivery organization submits a | ||||||
21 | renewal application and the required nonrefundable renewal | ||||||
22 | fee of $500, or after January 1, 2024, another amount set | ||||||
23 | by rule by the Department, to be deposited into the | ||||||
24 | Cannabis Regulation Fund; | ||||||
25 | (2) the Department has not suspended or revoked the |
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1 | license of the cannabis delivery organization for | ||||||
2 | violating this Act or rules adopted under this Act; | ||||||
3 | (3) the cannabis delivery organization has continued | ||||||
4 | to operate in accordance with all plans submitted as part | ||||||
5 | of its application and approved by the Department or any | ||||||
6 | amendments thereto that have been approved by the | ||||||
7 | Department; and | ||||||
8 | (4) the cannabis delivery organization has submitted | ||||||
9 | an agent, employee, contracting, and subcontracting | ||||||
10 | diversity report as required by the Department. | ||||||
11 | (b) If a cannabis delivery organization fails to renew its | ||||||
12 | license before expiration, it shall cease operations until its | ||||||
13 | license is renewed. | ||||||
14 | (c) If a cannabis delivery organization agent fails to | ||||||
15 | renew his or her identification card before its expiration, he | ||||||
16 | or she shall cease to work as an agent of the cannabis delivery | ||||||
17 | organization until his or her identification card is renewed. | ||||||
18 | (d) Any cannabis delivery organization that continues to | ||||||
19 | operate, or any cannabis delivery organization agent who | ||||||
20 | continues to work as an agent, after the applicable license or | ||||||
21 | identification card has expired without renewal is subject to | ||||||
22 | the penalties provided under Section 45-5. | ||||||
23 | (e) The Department shall not renew a license or an agent | ||||||
24 | identification card if the applicant is delinquent in filing | ||||||
25 | any required tax returns or paying any amounts owed to the | ||||||
26 | State of Illinois.
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