103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5562

 

Introduced 2/9/2024, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10
410 ILCS 705/7-10
410 ILCS 705/7-15
410 ILCS 705/55-30

    Amends the Cannabis Regulation and Tax Act. Provides that the Cannabis Business Development Fund may be used to provide financial assistance that supports lending to or private investment in qualified Social Equity Applicants and Social Equity Lottery Licensees or facilitates access to the facilities needed to commence operations on a cannabis business establishment. Provides that the Department of Commerce and Economic Opportunity may enter into financial agreements to facilitate lending to or investment in qualified Social Equity Applicants or Social Equity Lottery Licensees, or their subsidiaries or affiliates, to ensure the availability of facilities necessary to operate a cannabis business establishment. Provides that notwithstanding anything in the confidentiality provisions of the Act to the contrary, the Department of Financial and Professional Regulation and the Department of Agriculture may share licensee information with the Department of Commerce and Economic Opportunity necessary to support the administration of Social Equity programming.


LRB103 39472 RLC 69666 b

 

 

A BILL FOR

 

HB5562LRB103 39472 RLC 69666 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 Cannabis Regulation and Tax Act is amended
5by changing Sections 1-10, 7-10, 7-15, and 55-30 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
16in furtherance of this Act.
17    "Advertise" means to engage in promotional activities
18including, but not limited to: newspaper, radio, Internet and
19electronic media, and television advertising; the distribution
20of fliers and circulars; billboard advertising; and the
21display of window and interior signs. "Advertise" does not
22mean exterior signage displaying only the name of the licensed
23cannabis business establishment.

 

 

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

 

 

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

 

 

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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
5kief, leaves, and buds, but not resin that has been extracted
6from any part of such plant; nor any compound, manufacture,
7salt, derivative, mixture, or preparation of such plant, its
8seeds, or 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 Illinois State Police for the
26purposes of documenting each cannabis plant and monitoring

 

 

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1plant development throughout the life cycle of a cannabis
2plant cultivated 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
14is employed 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 a Community College Cannabis Vocational
21Training Pilot Program faculty participant.
22    "Conditional Adult Use Dispensing Organization License"
23means a contingent license awarded to 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
11organization or business that is licensed by the Department of
12Agriculture to cultivate, dry, cure, and package cannabis and
13perform other necessary activities to make cannabis available
14for sale at a dispensing organization or use at a processing
15organization. A craft grower may contain up to 5,000 square
16feet of canopy space on its premises for plants in the
17flowering state. The Department of Agriculture may authorize
18an increase or decrease of flowering stage cultivation space
19in increments of 3,000 square feet by rule based on market
20need, craft grower capacity, and the licensee's history of
21compliance or noncompliance, with a maximum space of 14,000
22square feet for cultivating plants in the flowering stage,
23which must be cultivated in all stages of growth in an enclosed
24and secure area. A craft grower may share premises with a
25processing organization or a dispensing organization, or both,
26provided each licensee stores currency and cannabis or

 

 

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1cannabis-infused products in a separate secured vault to which
2the other licensee does not have access or all licensees
3sharing a vault share 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
14to provide 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    "Dispensary Applicant" means the Proposed Dispensing

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1a dependent of an individual who, prior to the effective date
2of this Act, was arrested for, convicted of, or adjudicated
3delinquent for any offense that is eligible for expungement
4under this Act.
5    "Mother plant" means a cannabis plant that is cultivated
6or maintained for the purpose of generating clones, and that
7will not be used to produce plant material for sale to an
8infuser or dispensing organization.
9    "Ordinary public view" means within the sight line with
10normal visual range of a person, unassisted by visual aids,
11from a public street or sidewalk adjacent to real property, or
12from within an adjacent property.
13    "Ownership and control" means ownership of at least 51% of
14the business, including corporate stock if a corporation, and
15control over the management and day-to-day operations of the
16business and an interest in the capital, assets, and profits
17and losses of the business proportionate to percentage of
18ownership.
19    "Person" means a natural individual, firm, partnership,
20association, joint stock company, joint venture, public or
21private corporation, limited liability company, or a receiver,
22executor, trustee, guardian, or other representative appointed
23by order of any court.
24    "Possession limit" means the amount of cannabis under
25Section 10-10 that may be possessed at any one time by a person
2621 years of age or older or who is a registered qualifying

 

 

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

 

 

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1formulation to produce a cannabis product.
2    "Processing organization agent" means a principal officer,
3board member, employee, or agent of a processing organization.
4    "Processing organization agent identification card" means
5a document issued by the Department of Agriculture that
6identifies a person as a processing organization agent.
7    "Purchaser" means a person 21 years of age or older who
8acquires cannabis for a valuable consideration. "Purchaser"
9does not include a cardholder under the Compassionate Use of
10Medical Cannabis Program Act.
11    "Qualifying Applicant" means an applicant that submitted
12an application pursuant to Section 15-30 that received at
13least 85% of 250 application points available under Section
1415-30 as the applicant's final score and meets the definition
15of "Social Equity Applicant" as set forth under this Section.
16    "Qualifying Social Equity Justice Involved Applicant"
17means an applicant that submitted an application pursuant to
18Section 15-30 that received at least 85% of 250 application
19points available under Section 15-30 as the applicant's final
20score and meets the criteria of either paragraph (1) or (2) of
21the definition of "Social Equity Applicant" as set forth under
22this Section.
23    "Qualified Social Equity Applicant" means a Social Equity
24Applicant who has been awarded a conditional license under
25this Act to operate a cannabis business establishment.
26    "Resided" means an individual's primary residence was

 

 

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

 

 

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1            (i) have been arrested for, convicted of, or
2        adjudicated delinquent for any offense that is
3        eligible for expungement under this Act; or
4            (ii) is a member of an impacted family;
5        (3) for applicants with a minimum of 10 full-time
6    employees, an applicant with at least 51% of current
7    employees who:
8            (i) currently reside in a Disproportionately
9        Impacted Area; or
10            (ii) have been arrested for, convicted of, or
11        adjudicated delinquent for any offense that is
12        eligible for expungement under this Act or member of
13        an impacted family.
14    "Social Equity Lottery Licensee" means a holder of an
15adult-use cannabis dispensary license awarded through a
16lottery held pursuant to subsection (c) of Section 15-35.20
17and any amendments thereto.
18    Nothing in this Act shall be construed to preempt or limit
19the duties of any employer under the Job Opportunities for
20Qualified Applicants Act. Nothing in this Act shall permit an
21employer to require an employee to disclose sealed or expunged
22offenses, unless otherwise required by law.
23    "Tied Applicant" means an application submitted by a
24Dispensary Applicant pursuant to Section 15-30 that received
25the same number of application points under Section 15-30 as
26the Dispensary Applicant's final score as one or more

 

 

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1top-scoring applications in the same BLS Region and would have
2been awarded a license but for the one or more other
3top-scoring applications that received the same number of
4application points. Each application for which a Dispensary
5Applicant was required to pay a required application fee for
6the application period ending January 2, 2020 shall be
7considered an application of a separate Tied Applicant.
8    "Tied Applicant Lottery" means the process established
9under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
10Use Dispensing Organization Licenses pursuant to Sections
1115-25 and 15-30 among Eligible Tied Applicants.
12    "Tincture" means a cannabis-infused solution, typically
13comprised of alcohol, glycerin, or vegetable oils, derived
14either directly from the cannabis plant or from a processed
15cannabis extract. A tincture is not an alcoholic liquor as
16defined in the Liquor Control Act of 1934. A tincture shall
17include a calibrated dropper or other similar device capable
18of accurately measuring servings.
19    "Transporting organization" or "transporter" means an
20organization or business that is licensed by the Department of
21Agriculture to transport cannabis or cannabis-infused product
22on behalf of a cannabis business establishment or a community
23college licensed under the Community College Cannabis
24Vocational Training Pilot Program.
25    "Transporting organization agent" means a principal
26officer, board member, employee, or agent of a transporting

 

 

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1organization.
2    "Transporting organization agent identification card"
3means a document issued by the Department of Agriculture that
4identifies a person as a transporting organization agent.
5    "Unit of local government" means any county, city,
6village, or incorporated town.
7    "Vegetative stage" means the stage of cultivation in which
8a cannabis plant is propagated to produce additional cannabis
9plants or reach a sufficient size for production. This
10includes seedlings, clones, mothers, and other immature
11cannabis plants as follows:
12        (1) if the cannabis plant is in an area that has not
13    been intentionally deprived of light for a period of time
14    intended to produce flower buds and induce maturation, it
15    has no more than 2 stigmas visible at each internode of the
16    cannabis plant; or
17        (2) any cannabis plant that is cultivated solely for
18    the purpose of propagating clones and is never used to
19    produce cannabis.
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
21102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
225-13-22.)
 
23    (410 ILCS 705/7-10)
24    Sec. 7-10. Cannabis Business Development Fund.
25    (a) There is created in the State treasury a special fund,

 

 

HB5562- 21 -LRB103 39472 RLC 69666 b

1which shall be held separate and apart from all other State
2moneys, to be known as the Cannabis Business Development Fund.
3The Cannabis Business Development Fund shall be exclusively
4used for the following purposes:
5        (1) to provide low-interest rate loans to Qualified
6    Social Equity Applicants and Social Equity Lottery
7    Licenses to pay for ordinary and necessary expenses to
8    start and operate a cannabis business establishment
9    permitted by this Act;
10        (2) to provide grants to Qualified Social Equity
11    Applicants to pay for ordinary and necessary expenses to
12    start and operate a cannabis business establishment
13    permitted by this Act;
14        (3) to compensate the Department of Commerce and
15    Economic Opportunity for any costs related to the
16    provision of low-interest loans and grants to Qualified
17    Social Equity Applicants and Social Equity Lottery
18    Licensees;
19        (4) to pay for outreach that may be provided or
20    targeted to attract and support Social Equity Applicants,
21    and Qualified Social Equity Applicants, and Social Equity
22    Lottery Licensees;
23        (5) to provide financial assistance that supports
24    lending to or private investment in Qualified Social
25    Equity Applicants and Social Equity Lottery Licensees or
26    facilitates access to the facilities needed to commence

 

 

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1    operations as a cannabis business establishment (blank);
2        (6) to conduct any study or research concerning the
3    participation of minorities, women, veterans, or people
4    with disabilities in the cannabis industry, including,
5    without limitation, barriers to such individuals entering
6    the industry as equity owners of cannabis business
7    establishments;
8        (7) (blank); and
9        (8) to assist with job training and technical
10    assistance for residents in Disproportionately Impacted
11    Areas.
12    (b) All moneys collected under Sections 15-15 and 15-20
13for Early Approval Adult Use Dispensing Organization Licenses
14issued before January 1, 2021 and remunerations made as a
15result of transfers of permits awarded to Qualified Social
16Equity Applicants shall be deposited into the Cannabis
17Business Development Fund.
18    (c) (Blank).
19    (c-5) In addition to any other transfers that may be
20provided for by law, on July 1, 2023, or as soon thereafter as
21practical, the State Comptroller shall direct and the State
22Treasurer shall transfer the sum of $40,000,000 from the
23Compassionate Use of Medical Cannabis Fund to the Cannabis
24Business Development Fund.
25    (d) Notwithstanding any other law to the contrary, the
26Cannabis Business Development Fund is not subject to sweeps,

 

 

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1administrative charge-backs, or any other fiscal or budgetary
2maneuver that would in any way transfer any amounts from the
3Cannabis Business Development Fund into any other fund of the
4State.
5(Source: P.A. 103-8, eff. 6-7-23.)
 
6    (410 ILCS 705/7-15)
7    Sec. 7-15. Loans, financial assistance, and grants to
8Qualified Social Equity Applicants and Social Equity Lottery
9Licensees.
10    (a) The Department of Commerce and Economic Opportunity
11shall establish grant, and loan, and financial assistance
12programs, subject to appropriations from the Cannabis Business
13Development Fund, for the purposes of providing financial
14assistance, loans, grants, and technical assistance to
15Qualified Social Equity Applicants and Social Equity Lottery
16Licensees.
17    (b) The Department of Commerce and Economic Opportunity
18has the power to:
19        (1) provide Cannabis Social Equity loans, financial
20    assistance, and grants from appropriations from the
21    Cannabis Business Development Fund to assist Qualified
22    Social Equity Applicants and Social Equity Lottery
23    Licensees in gaining entry to, and successfully operating
24    in, the State's regulated cannabis marketplace;
25        (2) enter into agreements that set forth terms and

 

 

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1    conditions of the financial assistance, accept funds or
2    grants, and engage in cooperation with private entities
3    and agencies of State or local government to carry out the
4    purposes of this Section;
5        (3) fix, determine, charge, and collect any premiums,
6    fees, charges, costs and expenses, including application
7    fees, commitment fees, program fees, financing charges, or
8    publication fees in connection with its activities under
9    this Section;
10        (4) coordinate assistance under these financial
11    assistance loan programs with activities of the Illinois
12    Department of Financial and Professional Regulation, the
13    Illinois Department of Agriculture, and other agencies as
14    needed to maximize the effectiveness and efficiency of
15    this Act;
16        (5) provide staff, administration, and related support
17    required to administer this Section;
18        (6) take whatever actions are necessary or appropriate
19    to protect the State's interest in the event of
20    bankruptcy, default, foreclosure, or noncompliance with
21    the terms and conditions of financial assistance provided
22    under this Section, including the ability to recapture
23    funds if the recipient is found to be noncompliant with
24    the terms and conditions of the financial assistance
25    agreement;
26        (7) enter into financial intermediary agreements to

 

 

HB5562- 25 -LRB103 39472 RLC 69666 b

1    facilitate lending to or investment in Qualified Social
2    Equity Applicants or Social Equity Lottery Licensees, or
3    their subsidiaries or affiliates, to ensure the
4    availability of facilities necessary to operate a cannabis
5    business establishment;
6        (8) (7) establish application, notification, contract,
7    and other forms, procedures, or rules deemed necessary and
8    appropriate; and
9        (9) (8) utilize vendors or contract work to carry out
10    the purposes of this Act.
11    (c) Loans made under this Section:
12        (1) shall only be made if, in the Department's
13    judgment, the project furthers the goals set forth in this
14    Act; and
15        (2) shall be in such principal amount and form and
16    contain such terms and provisions with respect to
17    security, insurance, reporting, delinquency charges,
18    default remedies, and other matters as the Department
19    shall determine appropriate to protect the public interest
20    and to be consistent with the purposes of this Section.
21    The terms and provisions may be less than required for
22    similar loans not covered by this Section; and .
23        (3) may be distributed by lot if the Department
24    determines that the amount of funding available is
25    insufficient to provide an adequate amount of funding for
26    all of the applicants eligible to receive a loan. The

 

 

HB5562- 26 -LRB103 39472 RLC 69666 b

1    Department may determine the number of loans available
2    based on the amount of funding available and communicate
3    the number of loans available on the loan application. The
4    Department may use competitive criteria to establish which
5    applicants are eligible to receive a grant, loan, or
6    financial assistance.
7    (d) Grants made under this Section shall be awarded on a
8competitive and annual basis under the Grant Accountability
9and Transparency Act. Grants made under this Section shall
10further and promote the goals of this Act, including promotion
11of Social Equity Applicants, Qualified Social Equity
12Applicants, Social Equity Lottery Licensees, job training and
13workforce development, and technical assistance to Social
14Equity Applicants. To the extent registration with the federal
15System for Award Management requires a grant applicant to
16certify compliance with all federal laws, the grant applicants
17under this Section shall not be required to register for a
18unique entity identifier through the federal System for Award
19Management to be qualified to receive a grant so long as
20federal law prohibits the cultivation and sale of cannabis.
21    (e) Financial intermediary agreements to provide financial
22assistance must further the goals set forth in this Act and
23result in financing or lease costs that are affordable or
24below market rate.
25    (f) (e) Beginning January 1, 2021 and each year thereafter,
26the Department shall annually report to the Governor and the

 

 

HB5562- 27 -LRB103 39472 RLC 69666 b

1General Assembly on the outcomes and effectiveness of this
2Section that shall include the following:
3        (1) the number of persons or businesses receiving
4    financial assistance under this Section;
5        (2) the amount in financial assistance awarded in the
6    aggregate, in addition to the amount of loans made that
7    are outstanding and the amount of grants awarded;
8        (3) the location of the project engaged in by the
9    person or business; and
10        (4) if applicable, the number of new jobs and other
11    forms of economic output created as a result of the
12    financial assistance.
13    (g)
(f) The Department of Commerce and Economic Opportunity
14shall include engagement with individuals with limited English
15proficiency as part of its outreach provided or targeted to
16attract and support Social Equity Applicants.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/55-30)
19    Sec. 55-30. Confidentiality.
20    (a) Information provided by the cannabis business
21establishment licensees or applicants to the Department of
22Agriculture, the Department of Public Health, the Department
23of Financial and Professional Regulation, the Department of
24Commerce and Economic Opportunity, or other agency shall be
25limited to information necessary for the purposes of

 

 

HB5562- 28 -LRB103 39472 RLC 69666 b

1administering this Act. The information is subject to the
2provisions and limitations contained in the Freedom of
3Information Act and may be disclosed in accordance with
4Section 55-65.
5    (b) The following information received and records kept by
6the Department of Agriculture, the Department of Public
7Health, the Illinois State Police, and the Department of
8Financial and Professional Regulation for purposes of
9administering this Article are subject to all applicable
10federal privacy laws, are confidential and exempt from
11disclosure under the Freedom of Information Act, except as
12provided in this Act, and not subject to disclosure to any
13individual or public or private entity, except to the
14Department of Financial and Professional Regulation, the
15Department of Agriculture, the Department of Public Health,
16the Department of Commerce and Economic Opportunity, and the
17Illinois State Police as necessary to perform official duties
18under this Article and to the Attorney General as necessary to
19enforce the provisions of this Act. The following information
20received and kept by the Department of Financial and
21Professional Regulation or the Department of Agriculture may
22be disclosed to the Department of Public Health, the
23Department of Agriculture, the Department of Revenue, the
24Illinois State Police, the Department of Commerce and Economic
25Opportunity, or the Attorney General upon proper request:
26        (1) Applications and renewals, their contents, and

 

 

HB5562- 29 -LRB103 39472 RLC 69666 b

1    supporting information submitted by or on behalf of
2    dispensing organizations, cannabis business
3    establishments, or Community College Cannabis Vocational
4    Program licensees, in compliance with this Article,
5    including their physical addresses; however, this does not
6    preclude the release of ownership information about
7    cannabis business establishment licenses, or information
8    submitted with an application required to be disclosed
9    pursuant to subsection (f);
10        (2) Any plans, procedures, policies, or other records
11    relating to cannabis business establishment security; and
12        (3) Information otherwise exempt from disclosure by
13    State or federal law.
14    Illinois or national criminal history record information,
15or the nonexistence or lack of such information, may not be
16disclosed by the Department of Financial and Professional
17Regulation or the Department of Agriculture, except as
18necessary to the Attorney General to enforce this Act.
19    (c) The name and address of a dispensing organization
20licensed under this Act shall be subject to disclosure under
21the Freedom of Information Act. The name and cannabis business
22establishment address of the person or entity holding each
23cannabis business establishment license shall be subject to
24disclosure.
25    (d) All information collected by the Department of
26Financial and Professional Regulation or the Department of

 

 

HB5562- 30 -LRB103 39472 RLC 69666 b

1Agriculture in the course of an examination, inspection, or
2investigation of a licensee or applicant, including, but not
3limited to, any complaint against a licensee or applicant
4filed with the Department of Financial and Professional
5Regulation or the Department of Agriculture and information
6collected to investigate any such complaint, shall be
7maintained for the confidential use of the Department of
8Financial and Professional Regulation or the Department of
9Agriculture and shall not be disclosed, except as otherwise
10provided in this Act. A formal complaint against a licensee by
11the Department of Financial and Professional Regulation or the
12Department of Agriculture or any disciplinary order issued by
13the Department of Financial and Professional Regulation or the
14Department of Agriculture against a licensee or applicant
15shall be a public record, except as otherwise provided by law.
16Complaints from consumers or members of the general public
17received regarding a specific, named licensee or complaints
18regarding conduct by unlicensed entities shall be subject to
19disclosure under the Freedom of Information Act.
20    (e) The Department of Agriculture, the Illinois State
21Police, and the Department of Financial and Professional
22Regulation shall not share or disclose any Illinois or
23national criminal history record information, or the
24nonexistence or lack of such information, to any person or
25entity not expressly authorized by this Act.
26    (f) Each Department responsible for licensure under this

 

 

HB5562- 31 -LRB103 39472 RLC 69666 b

1Act shall publish on the Department's website a list of the
2ownership information of cannabis business establishment
3licensees under the Department's jurisdiction. The list shall
4include, but is not limited to: the name of the person or
5entity holding each cannabis business establishment license;
6and the address at which the entity is operating under this
7Act. This list shall be published and updated monthly.
8    (g) Notwithstanding anything in this Section to the
9contrary, the Department of Financial and Professional
10Regulation and the Department of Agriculture may share
11licensee information with the Department of Commerce and
12Economic Opportunity necessary to support the administration
13of Social Equity programming.
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.)