HB1443 EngrossedLRB102 03459 BMS 13472 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. The Illinois Administrative Procedure Act is
5amended by changing Section 5-45 as follows:
 
6    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
7    Sec. 5-45. Emergency rulemaking.
8    (a) "Emergency" means the existence of any situation that
9any agency finds reasonably constitutes a threat to the public
10interest, safety, or welfare.
11    (b) If any agency finds that an emergency exists that
12requires adoption of a rule upon fewer days than is required by
13Section 5-40 and states in writing its reasons for that
14finding, the agency may adopt an emergency rule without prior
15notice or hearing upon filing a notice of emergency rulemaking
16with the Secretary of State under Section 5-70. The notice
17shall include the text of the emergency rule and shall be
18published in the Illinois Register. Consent orders or other
19court orders adopting settlements negotiated by an agency may
20be adopted under this Section. Subject to applicable
21constitutional or statutory provisions, an emergency rule
22becomes effective immediately upon filing under Section 5-65
23or at a stated date less than 10 days thereafter. The agency's

 

 

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1finding and a statement of the specific reasons for the
2finding shall be filed with the rule. The agency shall take
3reasonable and appropriate measures to make emergency rules
4known to the persons who may be affected by them.
5    (c) An emergency rule may be effective for a period of not
6longer than 150 days, but the agency's authority to adopt an
7identical rule under Section 5-40 is not precluded. No
8emergency rule may be adopted more than once in any 24-month
9period, except that this limitation on the number of emergency
10rules that may be adopted in a 24-month period does not apply
11to (i) emergency rules that make additions to and deletions
12from the Drug Manual under Section 5-5.16 of the Illinois
13Public Aid Code or the generic drug formulary under Section
143.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
15emergency rules adopted by the Pollution Control Board before
16July 1, 1997 to implement portions of the Livestock Management
17Facilities Act, (iii) emergency rules adopted by the Illinois
18Department of Public Health under subsections (a) through (i)
19of Section 2 of the Department of Public Health Act when
20necessary to protect the public's health, (iv) emergency rules
21adopted pursuant to subsection (n) of this Section, (v)
22emergency rules adopted pursuant to subsection (o) of this
23Section, or (vi) emergency rules adopted pursuant to
24subsection (c-5) of this Section. Two or more emergency rules
25having substantially the same purpose and effect shall be
26deemed to be a single rule for purposes of this Section.

 

 

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1    (c-5) To facilitate the maintenance of the program of
2group health benefits provided to annuitants, survivors, and
3retired employees under the State Employees Group Insurance
4Act of 1971, rules to alter the contributions to be paid by the
5State, annuitants, survivors, retired employees, or any
6combination of those entities, for that program of group
7health benefits, shall be adopted as emergency rules. The
8adoption of those rules shall be considered an emergency and
9necessary for the public interest, safety, and welfare.
10    (d) In order to provide for the expeditious and timely
11implementation of the State's fiscal year 1999 budget,
12emergency rules to implement any provision of Public Act
1390-587 or 90-588 or any other budget initiative for fiscal
14year 1999 may be adopted in accordance with this Section by the
15agency charged with administering that provision or
16initiative, except that the 24-month limitation on the
17adoption of emergency rules and the provisions of Sections
185-115 and 5-125 do not apply to rules adopted under this
19subsection (d). The adoption of emergency rules authorized by
20this subsection (d) shall be deemed to be necessary for the
21public interest, safety, and welfare.
22    (e) In order to provide for the expeditious and timely
23implementation of the State's fiscal year 2000 budget,
24emergency rules to implement any provision of Public Act 91-24
25or any other budget initiative for fiscal year 2000 may be
26adopted in accordance with this Section by the agency charged

 

 

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1with administering that provision or initiative, except that
2the 24-month limitation on the adoption of emergency rules and
3the provisions of Sections 5-115 and 5-125 do not apply to
4rules adopted under this subsection (e). The adoption of
5emergency rules authorized by this subsection (e) shall be
6deemed to be necessary for the public interest, safety, and
7welfare.
8    (f) In order to provide for the expeditious and timely
9implementation of the State's fiscal year 2001 budget,
10emergency rules to implement any provision of Public Act
1191-712 or any other budget initiative for fiscal year 2001 may
12be adopted in accordance with this Section by the agency
13charged with administering that provision or initiative,
14except that the 24-month limitation on the adoption of
15emergency rules and the provisions of Sections 5-115 and 5-125
16do not apply to rules adopted under this subsection (f). The
17adoption of emergency rules authorized by this subsection (f)
18shall be deemed to be necessary for the public interest,
19safety, and welfare.
20    (g) In order to provide for the expeditious and timely
21implementation of the State's fiscal year 2002 budget,
22emergency rules to implement any provision of Public Act 92-10
23or any other budget initiative for fiscal year 2002 may be
24adopted in accordance with this Section by the agency charged
25with administering that provision or initiative, except that
26the 24-month limitation on the adoption of emergency rules and

 

 

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1the provisions of Sections 5-115 and 5-125 do not apply to
2rules adopted under this subsection (g). The adoption of
3emergency rules authorized by this subsection (g) shall be
4deemed to be necessary for the public interest, safety, and
5welfare.
6    (h) In order to provide for the expeditious and timely
7implementation of the State's fiscal year 2003 budget,
8emergency rules to implement any provision of Public Act
992-597 or any other budget initiative for fiscal year 2003 may
10be adopted in accordance with this Section by the agency
11charged with administering that provision or initiative,
12except that the 24-month limitation on the adoption of
13emergency rules and the provisions of Sections 5-115 and 5-125
14do not apply to rules adopted under this subsection (h). The
15adoption of emergency rules authorized by this subsection (h)
16shall be deemed to be necessary for the public interest,
17safety, and welfare.
18    (i) In order to provide for the expeditious and timely
19implementation of the State's fiscal year 2004 budget,
20emergency rules to implement any provision of Public Act 93-20
21or any other budget initiative for fiscal year 2004 may be
22adopted in accordance with this Section by the agency charged
23with administering that provision or initiative, except that
24the 24-month limitation on the adoption of emergency rules and
25the provisions of Sections 5-115 and 5-125 do not apply to
26rules adopted under this subsection (i). The adoption of

 

 

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1emergency rules authorized by this subsection (i) shall be
2deemed to be necessary for the public interest, safety, and
3welfare.
4    (j) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62005 budget as provided under the Fiscal Year 2005 Budget
7Implementation (Human Services) Act, emergency rules to
8implement any provision of the Fiscal Year 2005 Budget
9Implementation (Human Services) Act may be adopted in
10accordance with this Section by the agency charged with
11administering that provision, except that the 24-month
12limitation on the adoption of emergency rules and the
13provisions of Sections 5-115 and 5-125 do not apply to rules
14adopted under this subsection (j). The Department of Public
15Aid may also adopt rules under this subsection (j) necessary
16to administer the Illinois Public Aid Code and the Children's
17Health Insurance Program Act. The adoption of emergency rules
18authorized by this subsection (j) shall be deemed to be
19necessary for the public interest, safety, and welfare.
20    (k) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222006 budget, emergency rules to implement any provision of
23Public Act 94-48 or any other budget initiative for fiscal
24year 2006 may be adopted in accordance with this Section by the
25agency charged with administering that provision or
26initiative, except that the 24-month limitation on the

 

 

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1adoption of emergency rules and the provisions of Sections
25-115 and 5-125 do not apply to rules adopted under this
3subsection (k). The Department of Healthcare and Family
4Services may also adopt rules under this subsection (k)
5necessary to administer the Illinois Public Aid Code, the
6Senior Citizens and Persons with Disabilities Property Tax
7Relief Act, the Senior Citizens and Disabled Persons
8Prescription Drug Discount Program Act (now the Illinois
9Prescription Drug Discount Program Act), and the Children's
10Health Insurance Program Act. The adoption of emergency rules
11authorized by this subsection (k) shall be deemed to be
12necessary for the public interest, safety, and welfare.
13    (l) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152007 budget, the Department of Healthcare and Family Services
16may adopt emergency rules during fiscal year 2007, including
17rules effective July 1, 2007, in accordance with this
18subsection to the extent necessary to administer the
19Department's responsibilities with respect to amendments to
20the State plans and Illinois waivers approved by the federal
21Centers for Medicare and Medicaid Services necessitated by the
22requirements of Title XIX and Title XXI of the federal Social
23Security Act. The adoption of emergency rules authorized by
24this subsection (l) shall be deemed to be necessary for the
25public interest, safety, and welfare.
26    (m) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of the State's fiscal year
22008 budget, the Department of Healthcare and Family Services
3may adopt emergency rules during fiscal year 2008, including
4rules effective July 1, 2008, in accordance with this
5subsection to the extent necessary to administer the
6Department's responsibilities with respect to amendments to
7the State plans and Illinois waivers approved by the federal
8Centers for Medicare and Medicaid Services necessitated by the
9requirements of Title XIX and Title XXI of the federal Social
10Security Act. The adoption of emergency rules authorized by
11this subsection (m) shall be deemed to be necessary for the
12public interest, safety, and welfare.
13    (n) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152010 budget, emergency rules to implement any provision of
16Public Act 96-45 or any other budget initiative authorized by
17the 96th General Assembly for fiscal year 2010 may be adopted
18in accordance with this Section by the agency charged with
19administering that provision or initiative. The adoption of
20emergency rules authorized by this subsection (n) shall be
21deemed to be necessary for the public interest, safety, and
22welfare. The rulemaking authority granted in this subsection
23(n) shall apply only to rules promulgated during Fiscal Year
242010.
25    (o) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

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12011 budget, emergency rules to implement any provision of
2Public Act 96-958 or any other budget initiative authorized by
3the 96th General Assembly for fiscal year 2011 may be adopted
4in accordance with this Section by the agency charged with
5administering that provision or initiative. The adoption of
6emergency rules authorized by this subsection (o) is deemed to
7be necessary for the public interest, safety, and welfare. The
8rulemaking authority granted in this subsection (o) applies
9only to rules promulgated on or after July 1, 2010 (the
10effective date of Public Act 96-958) through June 30, 2011.
11    (p) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 97-689,
13emergency rules to implement any provision of Public Act
1497-689 may be adopted in accordance with this subsection (p)
15by the agency charged with administering that provision or
16initiative. The 150-day limitation of the effective period of
17emergency rules does not apply to rules adopted under this
18subsection (p), and the effective period may continue through
19June 30, 2013. The 24-month limitation on the adoption of
20emergency rules does not apply to rules adopted under this
21subsection (p). The adoption of emergency rules authorized by
22this subsection (p) is deemed to be necessary for the public
23interest, safety, and welfare.
24    (q) In order to provide for the expeditious and timely
25implementation of the provisions of Articles 7, 8, 9, 11, and
2612 of Public Act 98-104, emergency rules to implement any

 

 

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1provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
2may be adopted in accordance with this subsection (q) by the
3agency charged with administering that provision or
4initiative. The 24-month limitation on the adoption of
5emergency rules does not apply to rules adopted under this
6subsection (q). The adoption of emergency rules authorized by
7this subsection (q) is deemed to be necessary for the public
8interest, safety, and welfare.
9    (r) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 98-651,
11emergency rules to implement Public Act 98-651 may be adopted
12in accordance with this subsection (r) by the Department of
13Healthcare and Family Services. The 24-month limitation on the
14adoption of emergency rules does not apply to rules adopted
15under this subsection (r). The adoption of emergency rules
16authorized by this subsection (r) is deemed to be necessary
17for the public interest, safety, and welfare.
18    (s) In order to provide for the expeditious and timely
19implementation of the provisions of Sections 5-5b.1 and 5A-2
20of the Illinois Public Aid Code, emergency rules to implement
21any provision of Section 5-5b.1 or Section 5A-2 of the
22Illinois Public Aid Code may be adopted in accordance with
23this subsection (s) by the Department of Healthcare and Family
24Services. The rulemaking authority granted in this subsection
25(s) shall apply only to those rules adopted prior to July 1,
262015. Notwithstanding any other provision of this Section, any

 

 

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1emergency rule adopted under this subsection (s) shall only
2apply to payments made for State fiscal year 2015. The
3adoption of emergency rules authorized by this subsection (s)
4is deemed to be necessary for the public interest, safety, and
5welfare.
6    (t) In order to provide for the expeditious and timely
7implementation of the provisions of Article II of Public Act
899-6, emergency rules to implement the changes made by Article
9II of Public Act 99-6 to the Emergency Telephone System Act may
10be adopted in accordance with this subsection (t) by the
11Department of State Police. The rulemaking authority granted
12in this subsection (t) shall apply only to those rules adopted
13prior to July 1, 2016. The 24-month limitation on the adoption
14of emergency rules does not apply to rules adopted under this
15subsection (t). The adoption of emergency rules authorized by
16this subsection (t) is deemed to be necessary for the public
17interest, safety, and welfare.
18    (u) In order to provide for the expeditious and timely
19implementation of the provisions of the Burn Victims Relief
20Act, emergency rules to implement any provision of the Act may
21be adopted in accordance with this subsection (u) by the
22Department of Insurance. The rulemaking authority granted in
23this subsection (u) shall apply only to those rules adopted
24prior to December 31, 2015. The adoption of emergency rules
25authorized by this subsection (u) is deemed to be necessary
26for the public interest, safety, and welfare.

 

 

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1    (v) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 99-516,
3emergency rules to implement Public Act 99-516 may be adopted
4in accordance with this subsection (v) by the Department of
5Healthcare and Family Services. The 24-month limitation on the
6adoption of emergency rules does not apply to rules adopted
7under this subsection (v). The adoption of emergency rules
8authorized by this subsection (v) is deemed to be necessary
9for the public interest, safety, and welfare.
10    (w) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-796,
12emergency rules to implement the changes made by Public Act
1399-796 may be adopted in accordance with this subsection (w)
14by the Adjutant General. The adoption of emergency rules
15authorized by this subsection (w) is deemed to be necessary
16for the public interest, safety, and welfare.
17    (x) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 99-906,
19emergency rules to implement subsection (i) of Section
2016-115D, subsection (g) of Section 16-128A, and subsection (a)
21of Section 16-128B of the Public Utilities Act may be adopted
22in accordance with this subsection (x) by the Illinois
23Commerce Commission. The rulemaking authority granted in this
24subsection (x) shall apply only to those rules adopted within
25180 days after June 1, 2017 (the effective date of Public Act
2699-906). The adoption of emergency rules authorized by this

 

 

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1subsection (x) is deemed to be necessary for the public
2interest, safety, and welfare.
3    (y) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-23,
5emergency rules to implement the changes made by Public Act
6100-23 to Section 4.02 of the Illinois Act on the Aging,
7Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
8Section 55-30 of the Alcoholism and Other Drug Abuse and
9Dependency Act, and Sections 74 and 75 of the Mental Health and
10Developmental Disabilities Administrative Act may be adopted
11in accordance with this subsection (y) by the respective
12Department. The adoption of emergency rules authorized by this
13subsection (y) is deemed to be necessary for the public
14interest, safety, and welfare.
15    (z) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-554,
17emergency rules to implement the changes made by Public Act
18100-554 to Section 4.7 of the Lobbyist Registration Act may be
19adopted in accordance with this subsection (z) by the
20Secretary of State. The adoption of emergency rules authorized
21by this subsection (z) is deemed to be necessary for the public
22interest, safety, and welfare.
23    (aa) In order to provide for the expeditious and timely
24initial implementation of the changes made to Articles 5, 5A,
2512, and 14 of the Illinois Public Aid Code under the provisions
26of Public Act 100-581, the Department of Healthcare and Family

 

 

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1Services may adopt emergency rules in accordance with this
2subsection (aa). The 24-month limitation on the adoption of
3emergency rules does not apply to rules to initially implement
4the changes made to Articles 5, 5A, 12, and 14 of the Illinois
5Public Aid Code adopted under this subsection (aa). The
6adoption of emergency rules authorized by this subsection (aa)
7is deemed to be necessary for the public interest, safety, and
8welfare.
9    (bb) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-587,
11emergency rules to implement the changes made by Public Act
12100-587 to Section 4.02 of the Illinois Act on the Aging,
13Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
14subsection (b) of Section 55-30 of the Alcoholism and Other
15Drug Abuse and Dependency Act, Section 5-104 of the
16Specialized Mental Health Rehabilitation Act of 2013, and
17Section 75 and subsection (b) of Section 74 of the Mental
18Health and Developmental Disabilities Administrative Act may
19be adopted in accordance with this subsection (bb) by the
20respective Department. The adoption of emergency rules
21authorized by this subsection (bb) is deemed to be necessary
22for the public interest, safety, and welfare.
23    (cc) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-587,
25emergency rules may be adopted in accordance with this
26subsection (cc) to implement the changes made by Public Act

 

 

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1100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
2Pension Code by the Board created under Article 14 of the Code;
3Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
4the Board created under Article 15 of the Code; and Sections
516-190.5 and 16-190.6 of the Illinois Pension Code by the
6Board created under Article 16 of the Code. The adoption of
7emergency rules authorized by this subsection (cc) is deemed
8to be necessary for the public interest, safety, and welfare.
9    (dd) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-864,
11emergency rules to implement the changes made by Public Act
12100-864 to Section 3.35 of the Newborn Metabolic Screening Act
13may be adopted in accordance with this subsection (dd) by the
14Secretary of State. The adoption of emergency rules authorized
15by this subsection (dd) is deemed to be necessary for the
16public interest, safety, and welfare.
17    (ee) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 100-1172,
19emergency rules implementing the Illinois Underground Natural
20Gas Storage Safety Act may be adopted in accordance with this
21subsection by the Department of Natural Resources. The
22adoption of emergency rules authorized by this subsection is
23deemed to be necessary for the public interest, safety, and
24welfare.
25    (ff) In order to provide for the expeditious and timely
26initial implementation of the changes made to Articles 5A and

 

 

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114 of the Illinois Public Aid Code under the provisions of
2Public Act 100-1181, the Department of Healthcare and Family
3Services may on a one-time-only basis adopt emergency rules in
4accordance with this subsection (ff). The 24-month limitation
5on the adoption of emergency rules does not apply to rules to
6initially implement the changes made to Articles 5A and 14 of
7the Illinois Public Aid Code adopted under this subsection
8(ff). The adoption of emergency rules authorized by this
9subsection (ff) is deemed to be necessary for the public
10interest, safety, and welfare.
11    (gg) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 101-1,
13emergency rules may be adopted by the Department of Labor in
14accordance with this subsection (gg) to implement the changes
15made by Public Act 101-1 to the Minimum Wage Law. The adoption
16of emergency rules authorized by this subsection (gg) is
17deemed to be necessary for the public interest, safety, and
18welfare.
19    (hh) In order to provide for the expeditious and timely
20implementation of the provisions of Public Act 101-10,
21emergency rules may be adopted in accordance with this
22subsection (hh) to implement the changes made by Public Act
23101-10 to subsection (j) of Section 5-5.2 of the Illinois
24Public Aid Code. The adoption of emergency rules authorized by
25this subsection (hh) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

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1    (ii) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 101-10,
3emergency rules to implement the changes made by Public Act
4101-10 to Sections 5-5.4 and 5-5.4i of the Illinois Public Aid
5Code may be adopted in accordance with this subsection (ii) by
6the Department of Public Health. The adoption of emergency
7rules authorized by this subsection (ii) is deemed to be
8necessary for the public interest, safety, and welfare.
9    (jj) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 101-10,
11emergency rules to implement the changes made by Public Act
12101-10 to Section 74 of the Mental Health and Developmental
13Disabilities Administrative Act may be adopted in accordance
14with this subsection (jj) by the Department of Human Services.
15The adoption of emergency rules authorized by this subsection
16(jj) is deemed to be necessary for the public interest,
17safety, and welfare.
18    (kk) In order to provide for the expeditious and timely
19implementation of the Cannabis Regulation and Tax Act, and
20Public Act 101-27, and this amendatory Act of the 102nd
21General Assembly, the Department of Revenue, the Department of
22Public Health, the Department of Agriculture, the Department
23of State Police, and the Department of Financial and
24Professional Regulation may adopt emergency rules in
25accordance with this subsection (kk). The rulemaking authority
26granted in this subsection (kk) shall apply only to rules

 

 

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1adopted before December 31, 2021. Notwithstanding the
2provisions of subsection (c), emergency rules adopted under
3this subsection (kk) shall be effective for 180 days. The
4adoption of emergency rules authorized by this subsection (kk)
5is deemed to be necessary for the public interest, safety, and
6welfare.
7    (ll) In order to provide for the expeditious and timely
8implementation of the provisions of the Leveling the Playing
9Field for Illinois Retail Act, emergency rules may be adopted
10in accordance with this subsection (ll) to implement the
11changes made by the Leveling the Playing Field for Illinois
12Retail Act. The adoption of emergency rules authorized by this
13subsection (ll) is deemed to be necessary for the public
14interest, safety, and welfare.
15    (mm) In order to provide for the expeditious and timely
16implementation of the provisions of Section 25-70 of the
17Sports Wagering Act, emergency rules to implement Section
1825-70 of the Sports Wagering Act may be adopted in accordance
19with this subsection (mm) by the Department of the Lottery as
20provided in the Sports Wagering Act. The adoption of emergency
21rules authorized by this subsection (mm) is deemed to be
22necessary for the public interest, safety, and welfare.
23    (nn) In order to provide for the expeditious and timely
24implementation of the Sports Wagering Act, emergency rules to
25implement the Sports Wagering Act may be adopted in accordance
26with this subsection (nn) by the Illinois Gaming Board. The

 

 

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1adoption of emergency rules authorized by this subsection (nn)
2is deemed to be necessary for the public interest, safety, and
3welfare.
4    (oo) In order to provide for the expeditious and timely
5implementation of the provisions of subsection (c) of Section
620 of the Video Gaming Act, emergency rules to implement the
7provisions of subsection (c) of Section 20 of the Video Gaming
8Act may be adopted in accordance with this subsection (oo) by
9the Illinois Gaming Board. The adoption of emergency rules
10authorized by this subsection (oo) is deemed to be necessary
11for the public interest, safety, and welfare.
12    (pp) In order to provide for the expeditious and timely
13implementation of the provisions of Section 50 of the Sexual
14Assault Evidence Submission Act, emergency rules to implement
15Section 50 of the Sexual Assault Evidence Submission Act may
16be adopted in accordance with this subsection (pp) by the
17Department of State Police. The adoption of emergency rules
18authorized by this subsection (pp) is deemed to be necessary
19for the public interest, safety, and welfare.
20    (qq) In order to provide for the expeditious and timely
21implementation of the provisions of the Illinois Works Jobs
22Program Act, emergency rules may be adopted in accordance with
23this subsection (qq) to implement the Illinois Works Jobs
24Program Act. The adoption of emergency rules authorized by
25this subsection (qq) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

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1(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
2100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
36-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
4100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
53-8-19; 101-1, eff. 2-19-19; 101-10, Article 20, Section 20-5,
6eff. 6-5-19; 101-10, Article 35, Section 35-5, eff. 6-5-19;
7101-27, eff. 6-25-19; 101-31, Article 15, Section 15-5, eff.
86-28-19; 101-31, Article 25, Section 25-900, eff. 6-28-19;
9101-31, Article 35, Section 35-3, eff. 6-28-19; 101-377, eff.
108-16-19; 101-601, eff. 12-10-19.)
 
11    Section 5. The Compassionate Use of Medical Cannabis
12Program Act is amended by changing Sections 55, 100, 115, 130,
13and 145 and by adding Sections 115.5 and 162 as follows:
 
14    (410 ILCS 130/55)
15    Sec. 55. Registration of qualifying patients and
16designated caregivers.
17    (a) The Department of Public Health shall issue registry
18identification cards to qualifying patients and designated
19caregivers who submit a completed application, and at minimum,
20the following, in accordance with Department of Public Health
21rules:
22        (1) A written certification, on a form developed by
23    the Department of Public Health consistent with Section 36
24    and issued by a certifying health care professional,

 

 

HB1443 Engrossed- 21 -LRB102 03459 BMS 13472 b

1    within 90 days immediately preceding the date of an
2    application and submitted by the qualifying patient or his
3    or her designated caregiver;
4        (2) upon the execution of applicable privacy waivers,
5    the patient's medical documentation related to his or her
6    debilitating condition and any other information that may
7    be reasonably required by the Department of Public Health
8    to confirm that the certifying health care professional
9    and patient have a bona fide health care
10    professional-patient relationship, that the qualifying
11    patient is in the certifying health care professional's
12    care for his or her debilitating medical condition, and to
13    substantiate the patient's diagnosis;
14        (3) the application or renewal fee as set by rule;
15        (4) the name, address, date of birth, and social
16    security number of the qualifying patient, except that if
17    the applicant is homeless no address is required;
18        (5) the name, address, and telephone number of the
19    qualifying patient's certifying health care professional;
20        (6) the name, address, and date of birth of the
21    designated caregiver, if any, chosen by the qualifying
22    patient;
23        (7) (blank) the name of the registered medical
24    cannabis dispensing organization the qualifying patient
25    designates;
26        (8) signed statements from the patient and designated

 

 

HB1443 Engrossed- 22 -LRB102 03459 BMS 13472 b

1    caregiver asserting that they will not divert medical
2    cannabis; and
3        (9) (blank).
4    (b) Notwithstanding any other provision of this Act, a
5person provided a written certification for a debilitating
6medical condition who has submitted a completed online
7application to the Department of Public Health shall receive a
8provisional registration and be entitled to purchase medical
9cannabis from a specified licensed dispensing organization for
10a period of 90 days or until his or her application has been
11denied or he or she receives a registry identification card,
12whichever is earlier. However, a person may obtain an
13additional provisional registration after the expiration of 90
14days after the date of application if the Department of Public
15Health does not provide the individual with a registry
16identification card or deny the individual's application
17within those 90 days.
18    The provisional registration may not be extended if the
19individual does not respond to the Department of Public
20Health's request for additional information or corrections to
21required application documentation.
22    In order for a person to receive medical cannabis under
23this subsection, a person must present his or her provisional
24registration along with a valid driver's license or State
25identification card to the licensed dispensing organization
26specified in his or her application. The dispensing

 

 

HB1443 Engrossed- 23 -LRB102 03459 BMS 13472 b

1organization shall verify the person's provisional
2registration through the Department of Public Health's online
3verification system.
4    Upon verification of the provided documents, the
5dispensing organization shall dispense no more than 2.5 ounces
6of medical cannabis during a 14-day period to the person for a
7period of 90 days, until his or her application has been
8denied, or until he or she receives a registry identification
9card from the Department of Public Health, whichever is
10earlier.
11    Persons with provisional registrations must keep their
12provisional registration in his or her possession at all times
13when transporting or engaging in the medical use of cannabis.
14    (c) No person or business shall charge a fee for
15assistance in the preparation, compilation, or submission of
16an application to the Compassionate Use of Medical Cannabis
17Program or the Opioid Alternative Pilot Program. A violation
18of this subsection is a Class C misdemeanor, for which
19restitution to the applicant and a fine of up to $1,500 may be
20imposed. All fines shall be deposited into the Compassionate
21Use of Medical Cannabis Fund after restitution has been made
22to the applicant. The Department of Public Health shall refer
23individuals making complaints against a person or business
24under this Section to the Illinois State Police, who shall
25enforce violations of this provision. All application forms
26issued by the Department shall state that no person or

 

 

HB1443 Engrossed- 24 -LRB102 03459 BMS 13472 b

1business may charge a fee for assistance in the preparation,
2compilation, or submission of an application to the
3Compassionate Use of Medical Cannabis Program or the Opioid
4Alternative Pilot Program.
5(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
6    (410 ILCS 130/100)
7    Sec. 100. Cultivation center agent identification card.
8    (a) The Department of Agriculture shall:
9        (1) verify the information contained in an application
10    or renewal for a cultivation center identification card
11    submitted under this Act, and approve or deny an
12    application or renewal, within 30 days of receiving a
13    completed application or renewal application and all
14    supporting documentation required by rule;
15        (2) issue a cultivation center agent identification
16    card to a qualifying agent within 15 business days of
17    approving the application or renewal;
18        (3) enter the registry identification number of the
19    cultivation center where the agent works; and
20        (4) allow for an electronic application process, and
21    provide a confirmation by electronic or other methods that
22    an application has been submitted.
23    (b) A cultivation center agent must keep his or her
24identification card visible at all times when on the property
25of a cultivation center and during the transportation of

 

 

HB1443 Engrossed- 25 -LRB102 03459 BMS 13472 b

1medical cannabis to a registered dispensary organization.
2    (c) The cultivation center agent identification cards
3shall contain the following:
4        (1) the name of the cardholder;
5        (2) the date of issuance and expiration date of
6    cultivation center agent identification cards;
7        (3) a random 10 digit alphanumeric identification
8    number containing at least 4 numbers and at least 4
9    letters; that is unique to the holder; and
10        (4) a photograph of the cardholder.
11    (d) The cultivation center agent identification cards
12shall be immediately returned to the cultivation center upon
13termination of employment.
14    (e) Any card lost by a cultivation center agent shall be
15reported to the State Police and the Department of Agriculture
16immediately upon discovery of the loss.
17    (f) An applicant shall be denied a cultivation center
18agent identification card if he or she has been convicted of an
19excluded offense.
20    (g) An agent applicant may begin employment at a
21cultivation center while the agent applicant's identification
22card application is pending. Upon approval, the Department
23shall issue the agent's identification card to the agent. If
24denied, the cultivation center and the agent applicant shall
25be notified and the agent applicant must cease all activity at
26the cultivation center immediately.

 

 

HB1443 Engrossed- 26 -LRB102 03459 BMS 13472 b

1(Source: P.A. 98-122, eff. 1-1-14.)
 
2    (410 ILCS 130/115)
3    Sec. 115. Registration of dispensing organizations.
4    (a) The Department of Financial and Professional
5Regulation may issue up to 60 dispensing organization
6registrations for operation. The Department of Financial and
7Professional Regulation may not issue less than the 60
8registrations if there are qualified applicants who have
9applied with the Department of Financial and Professional
10Regulation. The organizations shall be geographically
11dispersed throughout the State to allow all registered
12qualifying patients reasonable proximity and access to a
13dispensing organization.
14    (a-5) The For any dispensing organization registered on or
15after July 1, 2019, the Department of Financial and
16Professional Regulation shall adopt rules to create a
17registration process for Social Equity Justice Involved
18Applicants and Qualifying Applicants, a streamlined
19application, and a Social Equity Justice Involved Medical
20Lottery under Section 115.5 to issue the remaining available 5
21dispensing organization registrations for operation award not
22less than 20% of all available points to applicants that
23qualify as Social Equity Applicants. For purposes of this
24Section:
25    "Disproportionately Impacted Area" means a census tract or

 

 

HB1443 Engrossed- 27 -LRB102 03459 BMS 13472 b

1comparable geographic area that satisfies the following
2criteria as determined by the Department of Commerce and
3Economic Opportunity, that:
4        (1) meets at least one of the following criteria:
5            (A) the area has a poverty rate of at least 20%
6        according to the latest federal decennial census; or
7            (B) 75% or more of the children in the area
8        participate in the federal free lunch program
9        according to reported statistics from the State Board
10        of Education; or
11            (C) at least 20% of the households in the area
12        receive assistance under the Supplemental Nutrition
13        Assistance Program; or
14            (D) the area has an average unemployment rate, as
15        determined by the Illinois Department of Employment
16        Security, that is more than 120% of the national
17        unemployment average, as determined by the United
18        States Department of Labor, for a period of at least 2
19        consecutive calendar years preceding the date of the
20        application; and
21        (2) has high rates of arrest, conviction, and
22    incarceration related to sale, possession, use,
23    cultivation, manufacture, or transport of cannabis.
24    "Qualifying Applicant" means an applicant that: (i)
25submitted an application pursuant to Section 15-30 of the
26Cannabis Regulation and Tax Act that received at least 85% of

 

 

HB1443 Engrossed- 28 -LRB102 03459 BMS 13472 b

1250 application points available under Section 15-30 of the
2Cannabis Regulation and Tax Act as the applicant's final
3score; (ii) received points at the conclusion of the scoring
4process for meeting the definition of a "Social Equity
5Applicant" as set forth under the Cannabis Regulation and Tax
6Act; and (iii) is an applicant that did not receive a
7Conditional Adult Use Dispensing Organization License through
8a Qualifying Applicant Lottery pursuant to Section 15-35 of
9the Cannabis Regulation and Tax Act or any Tied Applicant
10Lottery conducted under the Cannabis Regulation and Tax Act.
11    "Social Equity Justice Involved Applicant" means an
12applicant that is an Illinois resident and one of the
13following that meets one of the following criteria:
14        (1) an applicant with at least 51% ownership and
15    control by one or more individuals who have resided for at
16    least 5 of the preceding 10 years in a Disproportionately
17    Impacted Area;
18        (2) an applicant with at least 51% of ownership and
19    control by one or more individuals who have been arrested
20    for, convicted of, or adjudicated delinquent for any
21    offense that is eligible for expungement under subsection
22    (i) of Section 5.2 of the Criminal Identification Act or
23    member of an impacted family; or
24        (3) an applicant with at least 51% ownership and
25    control by one or more members of an impacted family. for
26    applicants with a minimum of 10 full-time employees, an

 

 

HB1443 Engrossed- 29 -LRB102 03459 BMS 13472 b

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

 

 

HB1443 Engrossed- 30 -LRB102 03459 BMS 13472 b

1        (5) (blank) information, in writing, regarding any
2    instances in which a business or not-for-profit that any
3    of the prospective board members managed or served on the
4    board was convicted, fined, censured, or had a
5    registration suspended or revoked in any administrative or
6    judicial proceeding;
7        (6) (blank) proposed operating by-laws that include
8    procedures for the oversight of the medical cannabis
9    dispensing organization and procedures to ensure accurate
10    record keeping and security measures that are in
11    accordance with the rules applied by the Department of
12    Financial and Professional Regulation under this Act. The
13    by-laws shall include a description of the enclosed,
14    locked facility where medical cannabis will be stored by
15    the dispensing organization; and
16        (7) (blank) signed statements from each dispensing
17    organization agent stating that they will not divert
18    medical cannabis.
19    (d) The Department of Financial and Professional
20Regulation shall conduct a background check of the prospective
21dispensing organization agents in order to carry out this
22Section. The Department of State Police shall charge a fee for
23conducting the criminal history record check, which shall be
24deposited in the State Police Services Fund and shall not
25exceed the actual cost of the record check. Each person
26applying as a dispensing organization agent shall submit a

 

 

HB1443 Engrossed- 31 -LRB102 03459 BMS 13472 b

1full set of fingerprints to the Department of State Police for
2the purpose of obtaining a State and federal criminal records
3check. These fingerprints shall be checked against the
4fingerprint records now and hereafter, to the extent allowed
5by law, filed in the Department of State Police and Federal
6Bureau of Investigation criminal history records databases.
7The Department of State Police shall furnish, following
8positive identification, all Illinois conviction information
9to the Department of Financial and Professional Regulation.
10    (e) A dispensing organization must pay a registration fee
11set by the Department of Financial and Professional
12Regulation.
13    (f) An application for a medical cannabis dispensing
14organization registration must be denied if any of the
15following conditions are met:
16        (1) the applicant failed to submit the materials
17    required by this Section, including if the applicant's
18    plans do not satisfy the security, oversight, or
19    recordkeeping rules issued by the Department of Financial
20    and Professional Regulation;
21        (2) the applicant would not be in compliance with
22    local zoning rules issued in accordance with Section 140;
23        (3) the applicant does not meet the requirements of
24    Section 130;
25        (4) one or more of the prospective principal officers
26    or board members has been convicted of an excluded

 

 

HB1443 Engrossed- 32 -LRB102 03459 BMS 13472 b

1    offense;
2        (5) one or more of the prospective principal officers
3    or board members has served as a principal officer or
4    board member for a registered medical cannabis dispensing
5    organization that has had its registration revoked; and
6        (6) one or more of the principal officers or board
7    members is under 21 years of age.
8(Source: P.A. 101-363, eff. 8-9-19.)
 
9    (410 ILCS 130/115.5 new)
10    Sec. 115.5. Social Equity Justice Involved Medical
11Lottery.
12    (a) In this Section:
13    "By lot" has the same meaning as defined in Section 1-10 of
14the Cannabis Regulation and Tax Act.
15    "Qualifying Applicant" has the same meaning as defined in
16subsection (a-5) of Section 115.
17    "Social Equity Justice Involved Applicant" has the same
18meaning as defined in subsection (a-5) of Section 115.
19    "Social Equity Justice Involved Medical Lottery" means the
20process of issuing 5 available medical cannabis dispensing
21organization registrations by lot, conducted by the Department
22of Financial and Professional Regulation, for applicants who
23are either: (i) Social Equity Justice Involved Applicants; or
24(ii) Qualifying Applicants.
25    (b) The Department of Financial and Professional

 

 

HB1443 Engrossed- 33 -LRB102 03459 BMS 13472 b

1Regulation shall conduct a Social Equity Justice Involved
2Medical Lottery to award up to 5 medical cannabis dispensing
3organization registrations by lot in accordance with Section
4115.
5    (c) The Department of Financial and Professional
6Regulation shall adopt rules through emergency rulemaking in
7accordance with subsection (kk) of Section 5-45 of the
8Illinois Administrative Procedure Act to create a registration
9process, a streamlined application, an application fee not to
10exceed $5,000 for purposes of this Section, and limits on the
11number of entries into the Social Equity Justice Involved
12Medical Lottery, as well as any other measures to reduce
13barriers to enter the cannabis industry. The General Assembly
14finds that the adoption of rules to regulate cannabis use is
15deemed an emergency and necessary for the public interest,
16safety, and welfare.
17    (d) Social Equity Justice Involved Applicants awarded a
18registration under subsection (a-5) of Section 115 are
19eligible to serve purchasers at the same site and a secondary
20site under the Cannabis Regulation and Tax Act, subject to
21application and inspection processes established by the
22Department. The licenses issued under this Section shall be
23valid for 2 years after the date of issuance and shall renew in
24the manner proscribed by the Department.
25    (e) No applicant may be awarded more than one medical
26cannabis dispensing organization registration at the

 

 

HB1443 Engrossed- 34 -LRB102 03459 BMS 13472 b

1conclusion of the lottery conducted under this Section.
2    (f) No individual may be listed as a principal officer of
3more than one medical cannabis dispensing organization
4registration awarded under this Section.
 
5    (410 ILCS 130/130)
6    Sec. 130. Requirements; prohibitions; penalties;
7dispensing organizations.
8    (a) The Department of Financial and Professional
9Regulation shall implement the provisions of this Section by
10rule.
11    (b) A dispensing organization shall maintain operating
12documents which shall include procedures for the oversight of
13the registered dispensing organization and procedures to
14ensure accurate recordkeeping.
15    (c) A dispensing organization shall implement appropriate
16security measures, as provided by rule, to deter and prevent
17the theft of cannabis and unauthorized entrance into areas
18containing cannabis.
19    (d) A dispensing organization may not be located within
201,000 feet of the property line of a pre-existing public or
21private preschool or elementary or secondary school or day
22care center, day care home, group day care home, or part day
23child care facility. A registered dispensing organization may
24not be located in a house, apartment, condominium, or an area
25zoned for residential use. This subsection shall not apply to

 

 

HB1443 Engrossed- 35 -LRB102 03459 BMS 13472 b

1any dispensing organizations registered on or after July 1,
22019.
3    (e) A dispensing organization is prohibited from acquiring
4cannabis from anyone other than a cultivation center, craft
5grower, processing organization, another dispensing
6organization, or transporting organization licensed or
7registered under this Act or the Cannabis Regulation and Tax
8Act registered cultivation center. A dispensing organization
9is prohibited from obtaining cannabis from outside the State
10of Illinois.
11    (f) A registered dispensing organization is prohibited
12from dispensing cannabis for any purpose except to assist
13registered qualifying patients with the medical use of
14cannabis directly or through the qualifying patients'
15designated caregivers.
16    (g) The area in a dispensing organization where medical
17cannabis is stored can only be accessed by dispensing
18organization agents working for the dispensing organization,
19Department of Financial and Professional Regulation staff
20performing inspections, law enforcement or other emergency
21personnel, and contractors working on jobs unrelated to
22medical cannabis, such as installing or maintaining security
23devices or performing electrical wiring.
24    (h) A dispensing organization may not dispense more than
252.5 ounces of cannabis to a registered qualifying patient,
26directly or via a designated caregiver, in any 14-day period

 

 

HB1443 Engrossed- 36 -LRB102 03459 BMS 13472 b

1unless the qualifying patient has a Department of Public
2Health-approved quantity waiver. Any Department of Public
3Health-approved quantity waiver process must be made available
4to qualified veterans.
5    (i) Except as provided in subsection (i-5), before medical
6cannabis may be dispensed to a designated caregiver or a
7registered qualifying patient, a dispensing organization agent
8must determine that the individual is a current cardholder in
9the verification system and must verify each of the following:
10        (1) that the registry identification card presented to
11    the registered dispensing organization is valid;
12        (2) that the person presenting the card is the person
13    identified on the registry identification card presented
14    to the dispensing organization agent;
15        (3) (blank); and that the dispensing organization is
16    the designated dispensing organization for the registered
17    qualifying patient who is obtaining the cannabis directly
18    or via his or her designated caregiver; and
19        (4) that the registered qualifying patient has not
20    exceeded his or her adequate supply.
21    (i-5) A dispensing organization may dispense medical
22cannabis to an Opioid Alternative Pilot Program participant
23under Section 62 and to a person presenting proof of
24provisional registration under Section 55. Before dispensing
25medical cannabis, the dispensing organization shall comply
26with the requirements of Section 62 or Section 55, whichever

 

 

HB1443 Engrossed- 37 -LRB102 03459 BMS 13472 b

1is applicable, and verify the following:
2        (1) that the written certification presented to the
3    registered dispensing organization is valid and an
4    original document;
5        (2) that the person presenting the written
6    certification is the person identified on the written
7    certification; and
8        (3) that the participant has not exceeded his or her
9    adequate supply.
10    (j) Dispensing organizations shall ensure compliance with
11this limitation by maintaining internal, confidential records
12that include records specifying how much medical cannabis is
13dispensed to the registered qualifying patient and whether it
14was dispensed directly to the registered qualifying patient or
15to the designated caregiver. Each entry must include the date
16and time the cannabis was dispensed. Additional recordkeeping
17requirements may be set by rule.
18    (k) The health care professional-patient privilege as set
19forth by Section 8-802 of the Code of Civil Procedure shall
20apply between a qualifying patient and a registered dispensing
21organization and its agents with respect to communications and
22records concerning qualifying patients' debilitating
23conditions.
24    (l) A dispensing organization may not permit any person to
25consume cannabis on the property of a medical cannabis
26organization.

 

 

HB1443 Engrossed- 38 -LRB102 03459 BMS 13472 b

1    (m) A dispensing organization may not share office space
2with or refer patients to a certifying health care
3professional.
4    (n) Notwithstanding any other criminal penalties related
5to the unlawful possession of cannabis, the Department of
6Financial and Professional Regulation may revoke, suspend,
7place on probation, reprimand, refuse to issue or renew, or
8take any other disciplinary or non-disciplinary action as the
9Department of Financial and Professional Regulation may deem
10proper with regard to the registration of any person issued
11under this Act to operate a dispensing organization or act as a
12dispensing organization agent, including imposing fines not to
13exceed $10,000 for each violation, for any violations of this
14Act and rules adopted in accordance with this Act. The
15procedures for disciplining a registered dispensing
16organization shall be determined by rule. All final
17administrative decisions of the Department of Financial and
18Professional Regulation are subject to judicial review under
19the Administrative Review Law and its rules. The term
20"administrative decision" is defined as in Section 3-101 of
21the Code of Civil Procedure.
22    (o) Dispensing organizations are subject to random
23inspection and cannabis testing by the Department of Financial
24and Professional Regulation, and the Illinois State Police,
25the Department of Revenue, the Department of Public Health,
26the Department of Agriculture, or as provided by rule.

 

 

HB1443 Engrossed- 39 -LRB102 03459 BMS 13472 b

1    (p) The Department of Financial and Professional
2Regulation shall adopt rules permitting returns, and potential
3refunds, for damaged or inadequate products.
4    (q) The Department of Financial and Professional
5Regulation may issue nondisciplinary citations for minor
6violations which may be accompanied by a civil penalty not to
7exceed $10,000 per violation. The penalty shall be a civil
8penalty or other condition as established by rule. The
9citation shall be issued to the licensee and shall contain the
10licensee's name, address, and license number, a brief factual
11statement, the Sections of the law or rule allegedly violated,
12and the civil penalty, if any, imposed. The citation must
13clearly state that the licensee may choose, in lieu of
14accepting the citation, to request a hearing. If the licensee
15does not dispute the matter in the citation with the
16Department of Financial and Professional Regulation within 30
17days after the citation is served, then the citation shall
18become final and shall not be subject to appeal.
19(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
20    (410 ILCS 130/145)
21    Sec. 145. Confidentiality.
22    (a) The following information received and records kept by
23the Department of Public Health, Department of Financial and
24Professional Regulation, Department of Agriculture, or
25Department of State Police for purposes of administering this

 

 

HB1443 Engrossed- 40 -LRB102 03459 BMS 13472 b

1Act are subject to all applicable federal privacy laws,
2confidential, and exempt from the Freedom of Information Act,
3and not subject to disclosure to any individual or public or
4private entity, except as necessary for authorized employees
5of those authorized agencies to perform official duties under
6this Act and the following information received and records
7kept by Department of Public Health, Department of
8Agriculture, Department of Financial and Professional
9Regulation, and Department of State Police, excluding any
10existing or non-existing Illinois or national criminal history
11record information as defined in subsection (d), may be
12disclosed to each other upon request:
13        (1) Applications and renewals, their contents, and
14    supporting information submitted by qualifying patients
15    and designated caregivers, including information regarding
16    their designated caregivers and certifying health care
17    professionals.
18        (2) Applications and renewals, their contents, and
19    supporting information submitted by or on behalf of
20    cultivation centers and dispensing organizations in
21    compliance with this Act, including their physical
22    addresses. This does not preclude the release of ownership
23    information of cannabis business establishment licenses.
24        (3) The individual names and other information
25    identifying persons to whom the Department of Public
26    Health has issued registry identification cards.

 

 

HB1443 Engrossed- 41 -LRB102 03459 BMS 13472 b

1        (4) Any dispensing information required to be kept
2    under Section 135, Section 150, or Department of Public
3    Health, Department of Agriculture, or Department of
4    Financial and Professional Regulation rules shall identify
5    cardholders and registered cultivation centers by their
6    registry identification numbers and medical cannabis
7    dispensing organizations by their registration number and
8    not contain names or other personally identifying
9    information.
10        (5) All medical records provided to the Department of
11    Public Health in connection with an application for a
12    registry card.
13    (b) Nothing in this Section precludes the following:
14        (1) Department of Agriculture, Department of Financial
15    and Professional Regulation, or Public Health employees
16    may notify law enforcement about falsified or fraudulent
17    information submitted to the Departments if the employee
18    who suspects that falsified or fraudulent information has
19    been submitted conferred with his or her supervisor and
20    both agree that circumstances exist that warrant
21    reporting.
22        (2) If the employee conferred with his or her
23    supervisor and both agree that circumstances exist that
24    warrant reporting, Department of Public Health employees
25    may notify the Department of Financial and Professional
26    Regulation if there is reasonable cause to believe a

 

 

HB1443 Engrossed- 42 -LRB102 03459 BMS 13472 b

1    certifying health care professional:
2            (A) issued a written certification without a bona
3        fide health care professional-patient relationship
4        under this Act;
5            (B) issued a written certification to a person who
6        was not under the certifying health care
7        professional's care for the debilitating medical
8        condition; or
9            (C) failed to abide by the acceptable and
10        prevailing standard of care when evaluating a
11        patient's medical condition.
12        (3) The Department of Public Health, Department of
13    Agriculture, and Department of Financial and Professional
14    Regulation may notify State or local law enforcement about
15    apparent criminal violations of this Act if the employee
16    who suspects the offense has conferred with his or her
17    supervisor and both agree that circumstances exist that
18    warrant reporting.
19        (4) Medical cannabis cultivation center agents and
20    medical cannabis dispensing organizations may notify the
21    Department of Public Health, Department of Financial and
22    Professional Regulation, or Department of Agriculture of a
23    suspected violation or attempted violation of this Act or
24    the rules issued under it.
25        (5) Each Department may verify registry identification
26    cards under Section 150.

 

 

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1        (6) The submission of the report to the General
2    Assembly under Section 160.
3    (b-5) Each Department responsible for licensure under this
4Act shall publish on the Department's website a list of the
5ownership information of cannabis business establishment
6licensees under the Department's jurisdiction. The list shall
7include, but shall not be limited to, the name of the person or
8entity holding each cannabis business establishment license
9and the address at which the entity is operating under this
10Act. This list shall be published and updated monthly.
11    (c) Except for any ownership information released pursuant
12to subsection (b-5) or as otherwise authorized or required by
13law, it It is a Class B misdemeanor with a $1,000 fine for any
14person, including an employee or official of the Department of
15Public Health, Department of Financial and Professional
16Regulation, or Department of Agriculture or another State
17agency or local government, to breach the confidentiality of
18information obtained under this Act.
19    (d) The Department of Public Health, the Department of
20Agriculture, the Department of State Police, and the
21Department of Financial and Professional Regulation shall not
22share or disclose any existing or non-existing Illinois or
23national criminal history record information. For the purposes
24of this Section, "any existing or non-existing Illinois or
25national criminal history record information" means any
26Illinois or national criminal history record information,

 

 

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1including but not limited to the lack of or non-existence of
2these records.
3(Source: P.A. 101-363, eff. 8-9-19.)
 
4    (410 ILCS 130/162 new)
5    Sec. 162. Market research study. The Illinois Cannabis
6Regulation Oversight Officer shall conduct a market research
7study on or before January 1, 2022. The study shall evaluate
8the ownership demographics of licensees and applicants for
9licenses under this Act.
 
10    Section 10. The Cannabis Regulation and Tax Act is amended
11by changing Sections 1-10, 5-45, 7-30, 10-35, 10-40, 15-15,
1215-25, 15-30, 15-35, 15-40, 15-70, 15-85, 15-135, 20-30, 25-5,
1325-30, 25-35, 30-5, 30-30, 35-5, 35-25, 35-30, 40-25, 40-30,
1455-21, 55-28, and 55-30 and by adding Sections 15-30.20,
1515-35.10, 15-35.20, 20-55, 30-55, 35-45, and 40-45 as follows:
 
16    (410 ILCS 705/1-10)
17    Sec. 1-10. Definitions. In this Act:
18    "Adult Use Cultivation Center License" means a license
19issued by the Department of Agriculture that permits a person
20to act as a cultivation center under this Act and any
21administrative rule made in furtherance of this Act.
22    "Adult Use Dispensing Organization License" means a
23license issued by the Department of Financial and Professional

 

 

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1Regulation that permits a person to act as a dispensing
2organization under this Act and any administrative rule made
3in furtherance of this Act.
4    "Advertise" means to engage in promotional activities
5including, but not limited to: newspaper, radio, Internet and
6electronic media, and television advertising; the distribution
7of fliers and circulars; billboard advertising; and the
8display of window and interior signs. "Advertise" does not
9mean exterior signage displaying only the name of the licensed
10cannabis business establishment.
11    "Application points" means the number of points a
12Dispensary Applicant receives on an application for a
13Conditional Adult Use Dispensing Organization License.
14    "BLS Region" means a region in Illinois used by the United
15States Bureau of Labor Statistics to gather and categorize
16certain employment and wage data. The 17 such regions in
17Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
18Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
19Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
20Rockford, St. Louis, Springfield, Northwest Illinois
21nonmetropolitan area, West Central Illinois nonmetropolitan
22area, East Central Illinois nonmetropolitan area, and South
23Illinois nonmetropolitan area.
24    "By lot" means a randomized method of choosing between 2
25or more Eligible Tied Applicants or 2 or more Qualifying
26Applicants.

 

 

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1    "Cannabis" means marijuana, hashish, and other substances
2that are identified as including any parts of the plant
3Cannabis sativa and including derivatives or subspecies, such
4as indica, of all strains of cannabis, whether growing or not;
5the seeds thereof, the resin extracted from any part of the
6plant; and any compound, manufacture, salt, derivative,
7mixture, or preparation of the plant, its seeds, or resin,
8including tetrahydrocannabinol (THC) and all other naturally
9produced cannabinol derivatives, whether produced directly or
10indirectly by extraction; however, "cannabis" does not include
11the mature stalks of the plant, fiber produced from the
12stalks, oil or cake made from the seeds of the plant, any other
13compound, manufacture, salt, derivative, mixture, or
14preparation of the mature stalks (except the resin extracted
15from it), fiber, oil or cake, or the sterilized seed of the
16plant that is incapable of germination. "Cannabis" does not
17include industrial hemp as defined and authorized under the
18Industrial Hemp Act. "Cannabis" also means cannabis flower,
19concentrate, and cannabis-infused products.
20    "Cannabis business establishment" means a cultivation
21center, craft grower, processing organization, infuser
22organization, dispensing organization, or transporting
23organization.
24    "Cannabis concentrate" means a product derived from
25cannabis that is produced by extracting cannabinoids,
26including tetrahydrocannabinol (THC), from the plant through

 

 

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1the use of propylene glycol, glycerin, butter, olive oil or
2other typical cooking fats; water, ice, or dry ice; or butane,
3propane, CO2, ethanol, or isopropanol and with the intended
4use of smoking or making a cannabis-infused product. The use
5of any other solvent is expressly prohibited unless and until
6it is approved by the Department of Agriculture.
7    "Cannabis container" means a sealed or resealable,
8traceable, container, or package used for the purpose of
9containment of cannabis or cannabis-infused product during
10transportation.
11    "Cannabis flower" means marijuana, hashish, and other
12substances that are identified as including any parts of the
13plant Cannabis sativa and including derivatives or subspecies,
14such as indica, of all strains of cannabis; including raw
15kief, leaves, and buds, but not resin that has been extracted
16from any part of such plant; nor any compound, manufacture,
17salt, derivative, mixture, or preparation of such plant, its
18seeds, or resin.
19    "Cannabis-infused product" means a beverage, food, oil,
20ointment, tincture, topical formulation, or another product
21containing cannabis or cannabis concentrate that is not
22intended to be smoked.
23    "Cannabis paraphernalia" means equipment, products, or
24materials intended to be used for planting, propagating,
25cultivating, growing, harvesting, manufacturing, producing,
26processing, preparing, testing, analyzing, packaging,

 

 

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1repackaging, storing, containing, concealing, ingesting, or
2otherwise introducing cannabis into the human body.
3    "Cannabis plant monitoring system" or "plant monitoring
4system" means a system that includes, but is not limited to,
5testing and data collection established and maintained by the
6cultivation center, craft grower, or processing organization
7and that is available to the Department of Revenue, the
8Department of Agriculture, the Department of Financial and
9Professional Regulation, and the Department of State Police
10for the purposes of documenting each cannabis plant and
11monitoring plant development throughout the life cycle of a
12cannabis plant cultivated for the intended use by a customer
13from seed planting to final packaging.
14    "Cannabis testing facility" means an entity registered by
15the Department of Agriculture to test cannabis for potency and
16contaminants.
17    "Clone" means a plant section from a female cannabis plant
18not yet rootbound, growing in a water solution or other
19propagation matrix, that is capable of developing into a new
20plant.
21    "Community College Cannabis Vocational Training Pilot
22Program faculty participant" means a person who is 21 years of
23age or older, licensed by the Department of Agriculture, and
24is employed or contracted by an Illinois community college to
25provide student instruction using cannabis plants at an
26Illinois Community College.

 

 

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1    "Community College Cannabis Vocational Training Pilot
2Program faculty participant Agent Identification Card" means a
3document issued by the Department of Agriculture that
4identifies a person as Community College Cannabis Vocational
5Training Pilot Program faculty participant.
6    "Conditional Adult Use Dispensing Organization License"
7means a contingent license awarded to top-scoring applicants
8for an Adult Use Dispensing Organization License that reserves
9the right to an Adult Use Dispensing Organization License if
10the applicant meets certain conditions described in this Act,
11but does not entitle the recipient to begin purchasing or
12selling cannabis or cannabis-infused products.
13    "Conditional Adult Use Cultivation Center License" means a
14license awarded to top-scoring applicants for an Adult Use
15Cultivation Center License that reserves the right to an Adult
16Use Cultivation Center License if the applicant meets certain
17conditions as determined by the Department of Agriculture by
18rule, but does not entitle the recipient to begin growing,
19processing, or selling cannabis or cannabis-infused products.
20    "Craft grower" means a facility operated by an
21organization or business that is licensed by the Department of
22Agriculture to cultivate, dry, cure, and package cannabis and
23perform other necessary activities to make cannabis available
24for sale at a dispensing organization or use at a processing
25organization. A craft grower may contain up to 5,000 square
26feet of canopy space on its premises for plants in the

 

 

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1flowering state. The Department of Agriculture may authorize
2an increase or decrease of flowering stage cultivation space
3in increments of 3,000 square feet by rule based on market
4need, craft grower capacity, and the licensee's history of
5compliance or noncompliance, with a maximum space of 14,000
6square feet for cultivating plants in the flowering stage,
7which must be cultivated in all stages of growth in an enclosed
8and secure area. A craft grower may share premises with a
9processing organization or a dispensing organization, or both,
10provided each licensee stores currency and cannabis or
11cannabis-infused products in a separate secured vault to which
12the other licensee does not have access or all licensees
13sharing a vault share more than 50% of the same ownership.
14    "Craft grower agent" means a principal officer, board
15member, employee, or other agent of a craft grower who is 21
16years of age or older.
17    "Craft Grower Agent Identification Card" means a document
18issued by the Department of Agriculture that identifies a
19person as a craft grower agent.
20    "Cultivation center" means a facility operated by an
21organization or business that is licensed by the Department of
22Agriculture to cultivate, process, transport (unless otherwise
23limited by this Act), and perform other necessary activities
24to provide cannabis and cannabis-infused products to cannabis
25business establishments.
26    "Cultivation center agent" means a principal officer,

 

 

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1board member, employee, or other agent of a cultivation center
2who is 21 years of age or older.
3    "Cultivation Center Agent Identification Card" means a
4document issued by the Department of Agriculture that
5identifies a person as a cultivation center agent.
6    "Currency" means currency and coin of the United States.
7    "Dispensary" means a facility operated by a dispensing
8organization at which activities licensed by this Act may
9occur.
10    "Dispensary Applicant" means the Proposed Dispensing
11Organization Name as stated on an application for a
12Conditional Adult Use Dispensing Organization License.
13    "Dispensing organization" means a facility operated by an
14organization or business that is licensed by the Department of
15Financial and Professional Regulation to acquire cannabis from
16a cultivation center, craft grower, processing organization,
17or another dispensary for the purpose of selling or dispensing
18cannabis, cannabis-infused products, cannabis seeds,
19paraphernalia, or related supplies under this Act to
20purchasers or to qualified registered medical cannabis
21patients and caregivers. As used in this Act, "dispensing
22organization" includes a registered medical cannabis
23organization as defined in the Compassionate Use of Medical
24Cannabis Program Act or its successor Act that has obtained an
25Early Approval Adult Use Dispensing Organization License.
26    "Dispensing organization agent" means a principal officer,

 

 

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1employee, or agent of a dispensing organization who is 21
2years of age or older.
3    "Dispensing organization agent identification card" means
4a document issued by the Department of Financial and
5Professional Regulation that identifies a person as a
6dispensing organization agent.
7    "Disproportionately Impacted Area" means a census tract or
8comparable geographic area that satisfies the following
9criteria as determined by the Department of Commerce and
10Economic Opportunity, that:
11        (1) meets at least one of the following criteria:
12            (A) the area has a poverty rate of at least 20%
13        according to the latest federal decennial census; or
14            (B) 75% or more of the children in the area
15        participate in the federal free lunch program
16        according to reported statistics from the State Board
17        of Education; or
18            (C) at least 20% of the households in the area
19        receive assistance under the Supplemental Nutrition
20        Assistance Program; or
21            (D) the area has an average unemployment rate, as
22        determined by the Illinois Department of Employment
23        Security, that is more than 120% of the national
24        unemployment average, as determined by the United
25        States Department of Labor, for a period of at least 2
26        consecutive calendar years preceding the date of the

 

 

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1        application; and
2        (2) has high rates of arrest, conviction, and
3    incarceration related to the sale, possession, use,
4    cultivation, manufacture, or transport of cannabis.
5    "Early Approval Adult Use Cultivation Center License"
6means a license that permits a medical cannabis cultivation
7center licensed under the Compassionate Use of Medical
8Cannabis Program Act as of the effective date of this Act to
9begin cultivating, infusing, packaging, transporting (unless
10otherwise provided in this Act), processing and selling
11cannabis or cannabis-infused product to cannabis business
12establishments for resale to purchasers as permitted by this
13Act as of January 1, 2020.
14    "Early Approval Adult Use Dispensing Organization License"
15means a license that permits a medical cannabis dispensing
16organization licensed under the Compassionate Use of Medical
17Cannabis Program Act as of the effective date of this Act to
18begin selling cannabis or cannabis-infused product to
19purchasers as permitted by this Act as of January 1, 2020.
20    "Early Approval Adult Use Dispensing Organization at a
21secondary site" means a license that permits a medical
22cannabis dispensing organization licensed under the
23Compassionate Use of Medical Cannabis Program Act as of the
24effective date of this Act to begin selling cannabis or
25cannabis-infused product to purchasers as permitted by this
26Act on January 1, 2020 at a different dispensary location from

 

 

HB1443 Engrossed- 54 -LRB102 03459 BMS 13472 b

1its existing registered medical dispensary location.
2    "Eligible Tied Applicant" means a Tied Applicant that is
3eligible to participate in the process by which a remaining
4available license is distributed by lot pursuant to a Tied
5Applicant Lottery.
6    "Enclosed, locked facility" means a room, greenhouse,
7building, or other enclosed area equipped with locks or other
8security devices that permit access only by cannabis business
9establishment agents working for the licensed cannabis
10business establishment or acting pursuant to this Act to
11cultivate, process, store, or distribute cannabis.
12    "Enclosed, locked space" means a closet, room, greenhouse,
13building or other enclosed area equipped with locks or other
14security devices that permit access only by authorized
15individuals under this Act. "Enclosed, locked space" may
16include:
17        (1) a space within a residential building that (i) is
18    the primary residence of the individual cultivating 5 or
19    fewer cannabis plants that are more than 5 inches tall and
20    (ii) includes sleeping quarters and indoor plumbing. The
21    space must only be accessible by a key or code that is
22    different from any key or code that can be used to access
23    the residential building from the exterior; or
24        (2) a structure, such as a shed or greenhouse, that
25    lies on the same plot of land as a residential building
26    that (i) includes sleeping quarters and indoor plumbing

 

 

HB1443 Engrossed- 55 -LRB102 03459 BMS 13472 b

1    and (ii) is used as a primary residence by the person
2    cultivating 5 or fewer cannabis plants that are more than
3    5 inches tall, such as a shed or greenhouse. The structure
4    must remain locked when it is unoccupied by people.
5    "Financial institution" has the same meaning as "financial
6organization" as defined in Section 1501 of the Illinois
7Income Tax Act, and also includes the holding companies,
8subsidiaries, and affiliates of such financial organizations.
9    "Flowering stage" means the stage of cultivation where and
10when a cannabis plant is cultivated to produce plant material
11for cannabis products. This includes mature plants as follows:
12        (1) if greater than 2 stigmas are visible at each
13    internode of the plant; or
14        (2) if the cannabis plant is in an area that has been
15    intentionally deprived of light for a period of time
16    intended to produce flower buds and induce maturation,
17    from the moment the light deprivation began through the
18    remainder of the marijuana plant growth cycle.
19    "Individual" means a natural person.
20    "Infuser organization" or "infuser" means a facility
21operated by an organization or business that is licensed by
22the Department of Agriculture to directly incorporate cannabis
23or cannabis concentrate into a product formulation to produce
24a cannabis-infused product.
25    "Kief" means the resinous crystal-like trichomes that are
26found on cannabis and that are accumulated, resulting in a

 

 

HB1443 Engrossed- 56 -LRB102 03459 BMS 13472 b

1higher concentration of cannabinoids, untreated by heat or
2pressure, or extracted using a solvent.
3    "Labor peace agreement" means an agreement between a
4cannabis business establishment and any labor organization
5recognized under the National Labor Relations Act, referred to
6in this Act as a bona fide labor organization, that prohibits
7labor organizations and members from engaging in picketing,
8work stoppages, boycotts, and any other economic interference
9with the cannabis business establishment. This agreement means
10that the cannabis business establishment has agreed not to
11disrupt efforts by the bona fide labor organization to
12communicate with, and attempt to organize and represent, the
13cannabis business establishment's employees. The agreement
14shall provide a bona fide labor organization access at
15reasonable times to areas in which the cannabis business
16establishment's employees work, for the purpose of meeting
17with employees to discuss their right to representation,
18employment rights under State law, and terms and conditions of
19employment. This type of agreement shall not mandate a
20particular method of election or certification of the bona
21fide labor organization.
22    "Limited access area" means a room or other area under the
23control of a cannabis dispensing organization licensed under
24this Act and upon the licensed premises where cannabis sales
25occur with access limited to purchasers, dispensing
26organization owners and other dispensing organization agents,

 

 

HB1443 Engrossed- 57 -LRB102 03459 BMS 13472 b

1or service professionals conducting business with the
2dispensing organization, or, if sales to registered qualifying
3patients, caregivers, provisional patients, and Opioid
4Alternative Pilot Program participants licensed pursuant to
5the Compassionate Use of Medical Cannabis Program Act are also
6permitted at the dispensary, registered qualifying patients,
7caregivers, provisional patients, and Opioid Alternative Pilot
8Program participants.
9    "Member of an impacted family" means an individual who has
10a parent, legal guardian, child, spouse, or dependent, or was
11a dependent of an individual who, prior to the effective date
12of this Act, was arrested for, convicted of, or adjudicated
13delinquent for any offense that is eligible for expungement
14under this Act.
15    "Mother plant" means a cannabis plant that is cultivated
16or maintained for the purpose of generating clones, and that
17will not be used to produce plant material for sale to an
18infuser or dispensing organization.
19    "Ordinary public view" means within the sight line with
20normal visual range of a person, unassisted by visual aids,
21from a public street or sidewalk adjacent to real property, or
22from within an adjacent property.
23    "Ownership and control" means ownership of at least 51% of
24the business, including corporate stock if a corporation, and
25control over the management and day-to-day operations of the
26business and an interest in the capital, assets, and profits

 

 

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1and losses of the business proportionate to percentage of
2ownership.
3    "Person" means a natural individual, firm, partnership,
4association, joint stock company, joint venture, public or
5private corporation, limited liability company, or a receiver,
6executor, trustee, guardian, or other representative appointed
7by order of any court.
8    "Possession limit" means the amount of cannabis under
9Section 10-10 that may be possessed at any one time by a person
1021 years of age or older or who is a registered qualifying
11medical cannabis patient or caregiver under the Compassionate
12Use of Medical Cannabis Program Act.
13    "Principal officer" includes a cannabis business
14establishment applicant or licensed cannabis business
15establishment's board member, owner with more than 1% interest
16of the total cannabis business establishment or more than 5%
17interest of the total cannabis business establishment of a
18publicly traded company, president, vice president, secretary,
19treasurer, partner, officer, member, manager member, or person
20with a profit sharing, financial interest, or revenue sharing
21arrangement. The definition includes a person with authority
22to control the cannabis business establishment, a person who
23assumes responsibility for the debts of the cannabis business
24establishment and who is further defined in this Act.
25    "Primary residence" means a dwelling where a person
26usually stays or stays more often than other locations. It may

 

 

HB1443 Engrossed- 59 -LRB102 03459 BMS 13472 b

1be determined by, without limitation, presence, tax filings;
2address on an Illinois driver's license, an Illinois
3Identification Card, or an Illinois Person with a Disability
4Identification Card; or voter registration. No person may have
5more than one primary residence.
6    "Processing organization" or "processor" means a facility
7operated by an organization or business that is licensed by
8the Department of Agriculture to either extract constituent
9chemicals or compounds to produce cannabis concentrate or
10incorporate cannabis or cannabis concentrate into a product
11formulation to produce a cannabis product.
12    "Processing organization agent" means a principal officer,
13board member, employee, or agent of a processing organization.
14    "Processing organization agent identification card" means
15a document issued by the Department of Agriculture that
16identifies a person as a processing organization agent.
17    "Purchaser" means a person 21 years of age or older who
18acquires cannabis for a valuable consideration. "Purchaser"
19does not include a cardholder under the Compassionate Use of
20Medical Cannabis Program Act.
21    "Qualifying Applicant" means an applicant that submitted
22an application pursuant to Section 15-30 that received at
23least 85% of 250 application points available under Section
2415-30 as the applicant's final score and meets the definition
25of "Social Equity Applicant" as set forth under this Section.
26    "Qualifying Social Equity Justice Involved Applicant"

 

 

HB1443 Engrossed- 60 -LRB102 03459 BMS 13472 b

1means an applicant that submitted an application pursuant to
2Section 15-30 that received at least 85% of 250 application
3points available under Section 15-30 as the applicant's final
4score and meets the criteria of either paragraph (1) or (2) of
5the definition of "Social Equity Applicant" as set forth under
6this Section.
7    "Qualified Social Equity Applicant" means a Social Equity
8Applicant who has been awarded a conditional license under
9this Act to operate a cannabis business establishment.
10    "Resided" means an individual's primary residence was
11located within the relevant geographic area as established by
122 of the following:
13        (1) a signed lease agreement that includes the
14    applicant's name;
15        (2) a property deed that includes the applicant's
16    name;
17        (3) school records;
18        (4) a voter registration card;
19        (5) an Illinois driver's license, an Illinois
20    Identification Card, or an Illinois Person with a
21    Disability Identification Card;
22        (6) a paycheck stub;
23        (7) a utility bill;
24        (8) tax records; or
25        (9) any other proof of residency or other information
26    necessary to establish residence as provided by rule.

 

 

HB1443 Engrossed- 61 -LRB102 03459 BMS 13472 b

1    "Smoking" means the inhalation of smoke caused by the
2combustion of cannabis.
3    "Social Equity Applicant" means an applicant that is an
4Illinois resident that meets one of the following criteria:
5        (1) an applicant with at least 51% ownership and
6    control by one or more individuals who have resided for at
7    least 5 of the preceding 10 years in a Disproportionately
8    Impacted Area;
9        (2) an applicant with at least 51% ownership and
10    control by one or more individuals who:
11            (i) have been arrested for, convicted of, or
12        adjudicated delinquent for any offense that is
13        eligible for expungement under this Act; or
14            (ii) is a member of an impacted family;
15        (3) for applicants with a minimum of 10 full-time
16    employees, an applicant with at least 51% of current
17    employees who:
18            (i) currently reside in a Disproportionately
19        Impacted Area; or
20            (ii) have been arrested for, convicted of, or
21        adjudicated delinquent for any offense that is
22        eligible for expungement under this Act or member of
23        an impacted family.
24    Nothing in this Act shall be construed to preempt or limit
25the duties of any employer under the Job Opportunities for
26Qualified Applicants Act. Nothing in this Act shall permit an

 

 

HB1443 Engrossed- 62 -LRB102 03459 BMS 13472 b

1employer to require an employee to disclose sealed or expunged
2offenses, unless otherwise required by law.
3    "Tied Applicant" means an application submitted by a
4Dispensary Applicant pursuant to Section 15-30 that received
5the same number of application points under Section 15-30 as
6the Dispensary Applicant's final score as one or more
7top-scoring applications in the same BLS Region and would have
8been awarded a license but for the one or more other
9top-scoring applications that received the same number of
10application points. Each application for which a Dispensary
11Applicant was required to pay a required application fee for
12the application period ending January 2, 2020 shall be
13considered an application of a separate Tied Applicant.
14    "Tied Applicant Lottery" means the process established
15under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
16Use Dispensing Organization Licenses pursuant to Sections
1715-25 and 15-30 among Eligible Tied Applicants.
18    "Tincture" means a cannabis-infused solution, typically
19comprised of alcohol, glycerin, or vegetable oils, derived
20either directly from the cannabis plant or from a processed
21cannabis extract. A tincture is not an alcoholic liquor as
22defined in the Liquor Control Act of 1934. A tincture shall
23include a calibrated dropper or other similar device capable
24of accurately measuring servings.
25    "Transporting organization" or "transporter" means an
26organization or business that is licensed by the Department of

 

 

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

 

 

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1    (410 ILCS 705/5-45)
2    Sec. 5-45. Illinois Cannabis Regulation Oversight Officer.
3    (a) The position of Illinois Cannabis Regulation Oversight
4Officer is created within the Department of Financial and
5Professional Regulation under the Secretary of Financial and
6Professional Regulation. The Cannabis Regulation Oversight
7Officer serves a coordinating role among State agencies
8regarding this Act and the Compassionate Use of Medical
9Cannabis Program Act. The Illinois Cannabis Regulation
10Oversight Officer shall be appointed by the Governor with the
11advice and consent of the Senate. The term of office of the
12Officer shall expire on the third Monday of January in
13odd-numbered years provided that he or she shall hold office
14until a successor is appointed and qualified. In case of
15vacancy in office during the recess of the Senate, the
16Governor shall make a temporary appointment until the next
17meeting of the Senate, when the Governor shall nominate some
18person to fill the office, and any person so nominated who is
19confirmed by the Senate shall hold office during the remainder
20of the term and until his or her successor is appointed and
21qualified.
22    (b) The Illinois Cannabis Regulation Oversight Officer has
23the authority to may:
24        (1) maintain a staff;
25        (2) make recommendations for administrative and

 

 

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1    statutory policy, statute, and rule changes;
2        (3) collect data both in Illinois and outside Illinois
3    regarding the regulation of cannabis;
4        (4) compile or assist in the compilation of any
5    reports required by this Act;
6        (5) ensure the coordination of efforts between various
7    State agencies involved in regulating and taxing the sale
8    of cannabis in Illinois; and
9        (6) encourage, promote, suggest, and report best
10    practices for ensuring diversity in the cannabis industry
11    in Illinois.
12    (c) The Illinois Cannabis Regulation Oversight Officer and
13the Officer's staff shall not:
14        (1) participate in the issuance or award of any
15    cannabis business establishment license licensing or the
16    making of awards; or
17        (2) participate in discipline related to any cannabis
18    business establishment any adjudicative decision-making
19    process involving licensing or licensee discipline.
20    The Illinois Cannabis Regulation Officer is not prohibited
21from coordinating with and making recommendations to agencies
22regarding licensing and disciplinary policies and procedures.
23    (d) Any funding required for the Illinois Cannabis
24Regulation Oversight Officer, its staff, or its activities
25shall be drawn from the Cannabis Regulation Fund.
26    (e) The Illinois Cannabis Regulation Oversight Officer

 

 

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1shall commission and publish one or more disparity and
2availability studies that a disparity and availability study
3by March 1, 2021 that: (1) evaluates whether there exists
4discrimination in the State's cannabis industry; and (2) if
5so, evaluates the impact of such discrimination on the State
6and includes recommendations to the Department of Financial
7and Professional Regulation and the Department of Agriculture
8for reducing or eliminating any identified barriers to entry
9in the cannabis market. Such disparity and availability
10studies shall examine each license type issued pursuant to
11Sections 15-25, 15-30.1, or 15-35.20, subsection (a) of
12Section 30-5, or subsection (a) of Section 35-5, and shall be
13initiated within 180 days from the issuance of the first of
14each license authorized by those Sections. The results of each
15disparity and availability study shall be reported to the
16General Assembly and the Governor no later than 12 months
17after the commission of each study.
18    The Illinois Cannabis Regulation Oversight Officer shall
19forward a copy of its findings and recommendations to the
20Department of Financial and Professional Regulation, the
21Department of Agriculture, the Department of Commerce and
22Economic Opportunity, the General Assembly, and the Governor.
23    (f) The Illinois Cannabis Regulation Oversight Officer may
24compile, collect, or otherwise gather data necessary for the
25administration of this Act and to carry out the Officer's duty
26relating to the recommendation of policy changes. The Illinois

 

 

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1Cannabis Regulation Oversight Officer may direct the
2Department of Agriculture, Department of Financial and
3Professional Regulation, Department of Public Health,
4Department of Human Services, and Department of Commerce and
5Economic Opportunity to assist in the compilation, collection,
6and data gathering authorized pursuant to this subsection. The
7Illinois Cannabis Regulation Oversight Officer shall compile
8all of the data into a single report and submit the report to
9the Governor and the General Assembly and publish the report
10on its website.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/7-30)
13    Sec. 7-30. Reporting. By January 1, 2021, and on January 1
14of every year thereafter, or upon request by the Illinois
15Cannabis Regulation Oversight Officer, each cannabis business
16establishment licensed under this Act and the Compassionate
17Use of Medical Cannabis Program Act shall report to the
18Illinois Cannabis Regulation Oversight Officer, on a form to
19be provided by the Illinois Cannabis Regulation Oversight
20Officer, information that will allow it to assess the extent
21of diversity in the medical and adult use cannabis industry
22and methods for reducing or eliminating any identified
23barriers to entry, including access to capital. Failure of a
24cannabis business establishment to respond to the request of
25the Cannabis Regulation Oversight Officer to complete the

 

 

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1form, report, and any other request for information may be
2grounds for disciplinary action by the Department of Financial
3and Professional Regulation or the Department of Agriculture.
4The information to be collected shall be designed to identify
5the following:
6        (1) the number and percentage of licenses provided to
7    Social Equity Applicants and to businesses owned by
8    minorities, women, veterans, and people with disabilities;
9        (2) the total number and percentage of employees in
10    the cannabis industry who meet the criteria in (3)(i) or
11    (3)(ii) in the definition of Social Equity Applicant or
12    who are minorities, women, veterans, or people with
13    disabilities;
14        (3) the total number and percentage of contractors and
15    subcontractors in the cannabis industry that meet the
16    definition of a Social Equity Applicant or who are owned
17    by minorities, women, veterans, or people with
18    disabilities, if known to the cannabis business
19    establishment; and
20        (4) recommendations on reducing or eliminating any
21    identified barriers to entry, including access to capital,
22    in the cannabis industry.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/10-35)
25    Sec. 10-35. Limitations and penalties.

 

 

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1    (a) This Act does not permit any person to engage in, and
2does not prevent the imposition of any civil, criminal, or
3other penalties for engaging in, any of the following conduct:
4        (1) undertaking any task under the influence of
5    cannabis when doing so would constitute negligence,
6    professional malpractice, or professional misconduct;
7        (2) possessing cannabis:
8            (A) in a school bus, unless permitted for a
9        qualifying patient or caregiver pursuant to the
10        Compassionate Use of Medical Cannabis Program Act;
11            (B) on the grounds of any preschool or primary or
12        secondary school, unless permitted for a qualifying
13        patient or caregiver pursuant to the Compassionate Use
14        of Medical Cannabis Program Act;
15            (C) in any correctional facility;
16            (D) in a vehicle not open to the public unless the
17        cannabis is in a reasonably secured, sealed or
18        resealable container and reasonably inaccessible while
19        the vehicle is moving; or
20            (E) in a private residence that is used at any time
21        to provide licensed child care or other similar social
22        service care on the premises;
23        (3) using cannabis:
24            (A) in a school bus, unless permitted for a
25        qualifying patient or caregiver pursuant to the
26        Compassionate Use of Medical Cannabis Program Act;

 

 

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1            (B) on the grounds of any preschool or primary or
2        secondary school, unless permitted for a qualifying
3        patient or caregiver pursuant to the Compassionate Use
4        of Medical Cannabis Program Act;
5            (C) in any correctional facility;
6            (D) in any motor vehicle;
7            (E) in a private residence that is used at any time
8        to provide licensed child care or other similar social
9        service care on the premises;
10            (F) in any public place; or
11            (G) knowingly in close physical proximity to
12        anyone under 21 years of age who is not a registered
13        medical cannabis patient under the Compassionate Use
14        of Medical Cannabis Program Act;
15        (4) smoking cannabis in any place where smoking is
16    prohibited under the Smoke Free Illinois Act;
17        (5) operating, navigating, or being in actual physical
18    control of any motor vehicle, aircraft, watercraft, or
19    snowmobile while using or under the influence of cannabis
20    in violation of Section 11-501 or 11-502.1 of the Illinois
21    Vehicle Code, Section 5-16 of the Boat Registration and
22    Safety Act, or Section 5-7 of the Snowmobile Registration
23    and Safety Act;
24        (6) facilitating the use of cannabis by any person who
25    is not allowed to use cannabis under this Act or the
26    Compassionate Use of Medical Cannabis Program Act;

 

 

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1        (7) transferring cannabis to any person contrary to
2    this Act or the Compassionate Use of Medical Cannabis
3    Program Act;
4        (8) the use of cannabis by a law enforcement officer,
5    corrections officer, probation officer, or firefighter
6    while on duty; nothing in this Act prevents a public
7    employer of law enforcement officers, corrections
8    officers, probation officers, paramedics, or firefighters
9    from prohibiting or taking disciplinary action for the
10    consumption, possession, sales, purchase, or delivery of
11    cannabis or cannabis-infused substances while on or off
12    duty, unless provided for in the employer's policies.
13    However, an employer may not take adverse employment
14    action against an employee based solely on the lawful
15    possession or consumption of cannabis or cannabis-infused
16    substances by members of the employee's household. To the
17    extent that this Section conflicts with any applicable
18    collective bargaining agreement, the provisions of the
19    collective bargaining agreement shall prevail. Further,
20    nothing in this Act shall be construed to limit in any way
21    the right to collectively bargain over the subject matters
22    contained in this Act; or
23        (9) the use of cannabis by a person who has a school
24    bus permit or a Commercial Driver's License while on duty.
25    As used in this Section, "public place" means any place
26where a person could reasonably be expected to be observed by

 

 

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1others. "Public place" includes all parts of buildings owned
2in whole or in part, or leased, by the State or a unit of local
3government. "Public place" includes all areas in a park,
4recreation area, wildlife area, or playground owned in whole
5or in part, leased, or managed by the State or a unit of local
6government. "Public place" does not include a private
7residence unless the private residence is used to provide
8licensed child care, foster care, or other similar social
9service care on the premises.
10    (b) Nothing in this Act shall be construed to prevent the
11arrest or prosecution of a person for reckless driving or
12driving under the influence of cannabis, operating a
13watercraft under the influence of cannabis, or operating a
14snowmobile under the influence of cannabis if probable cause
15exists.
16    (c) Nothing in this Act shall prevent a private business
17from restricting or prohibiting the use of cannabis on its
18property, including areas where motor vehicles are parked.
19    (d) Nothing in this Act shall require an individual or
20business entity to violate the provisions of federal law,
21including colleges or universities that must abide by the
22Drug-Free Schools and Communities Act Amendments of 1989, that
23require campuses to be drug free.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
25    (410 ILCS 705/10-40)

 

 

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1    Sec. 10-40. Restore, Reinvest, and Renew Program.
2    (a) The General Assembly finds that in order to address
3the disparities described below, aggressive approaches and
4targeted resources to support local design and control of
5community-based responses to these outcomes are required. To
6carry out this intent, the Restore, Reinvest, and Renew (R3)
7Program is created for the following purposes:
8        (1) to directly address the impact of economic
9    disinvestment, violence, and the historical overuse of
10    criminal justice responses to community and individual
11    needs by providing resources to support local design and
12    control of community-based responses to these impacts;
13        (2) to substantially reduce both the total amount of
14    gun violence and concentrated poverty in this State;
15        (3) to protect communities from gun violence through
16    targeted investments and intervention programs, including
17    economic growth and improving family violence prevention,
18    community trauma treatment rates, gun injury victim
19    services, and public health prevention activities;
20        (4) to promote employment infrastructure and capacity
21    building related to the social determinants of health in
22    the eligible community areas.
23    (b) In this Section, "Authority" means the Illinois
24Criminal Justice Information Authority in coordination with
25the Justice, Equity, and Opportunity Initiative of the
26Lieutenant Governor's Office.

 

 

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1    (c) Eligibility of R3 Areas. Within 180 days after the
2effective date of this Act, the Authority shall identify as
3eligible, areas in this State by way of historically
4recognized geographic boundaries, to be designated by the
5Restore, Reinvest, and Renew Program Board as R3 Areas and
6therefore eligible to apply for R3 funding. Local groups
7within R3 Areas will be eligible to apply for State funding
8through the Restore, Reinvest, and Renew Program Board.
9Qualifications for designation as an R3 Area are as follows:
10        (1) Based on an analysis of data, communities in this
11    State that are high need, underserved, disproportionately
12    impacted by historical economic disinvestment, and ravaged
13    by violence as indicated by the highest rates of gun
14    injury, unemployment, child poverty rates, and commitments
15    to and returns from the Illinois Department of
16    Corrections.
17        (2) The Authority shall send to the Legislative Audit
18    Commission and make publicly available its analysis and
19    identification of eligible R3 Areas and shall recalculate
20    the eligibility data every 4 years. On an annual basis,
21    the Authority shall analyze data and indicate if data
22    covering any R3 Area or portion of an Area has, for 4
23    consecutive years, substantially deviated from the average
24    of statewide data on which the original calculation was
25    made to determine the Areas, including disinvestment,
26    violence, gun injury, unemployment, child poverty rates,

 

 

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1    or commitments to or returns from the Illinois Department
2    of Corrections.
3    (d) The Restore, Reinvest, and Renew Program Board shall
4encourage collaborative partnerships within each R3 Area to
5minimize multiple partnerships per Area.
6    (e) The Restore, Reinvest, and Renew Program Board is
7created and shall reflect the diversity of the State of
8Illinois, including geographic, racial, and ethnic diversity.
9Using the data provided by the Authority, the Restore,
10Reinvest, and Renew Program Board shall be responsible for
11designating the R3 Area boundaries and for the selection and
12oversight of R3 Area grantees. The Restore, Reinvest, and
13Renew Program Board ex officio members shall, within 4 months
14after the effective date of this Act, convene the Board to
15appoint a full Restore, Reinvest, and Renew Program Board and
16oversee, provide guidance to, and develop an administrative
17structure for the R3 Program.
18            (1) The ex officio members are:
19                (A) The Lieutenant Governor, or his or her
20            designee, who shall serve as chair.
21                (B) The Attorney General, or his or her
22            designee.
23                (C) The Director of Commerce and Economic
24            Opportunity, or his or her designee.
25                (D) The Director of Public Health, or his or
26            her designee.

 

 

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1                (E) The Director of Corrections, or his or her
2            designee.
3                (F) The Director of Juvenile Justice, or his
4            or her designee.
5                (G) The Director of Children and Family
6            Services, or his or her designee.
7                (H) The Executive Director of the Illinois
8            Criminal Justice Information Authority, or his or
9            her designee.
10                (I) The Director of Employment Security, or
11            his or her designee.
12                (J) The Secretary of Human Services, or his or
13            her designee.
14                (K) A member of the Senate, designated by the
15            President of the Senate.
16                (L) A member of the House of Representatives,
17            designated by the Speaker of the House of
18            Representatives.
19                (M) A member of the Senate, designated by the
20            Minority Leader of the Senate.
21                (N) A member of the House of Representatives,
22            designated by the Minority Leader of the House of
23            Representatives.
24        (2) Within 90 days after the R3 Areas have been
25    designated by the Restore, Reinvest, and Renew Program
26    Board, the following members shall be appointed to the

 

 

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1    Board by the R3 board chair:
2            (A) Eight public officials of municipal geographic
3        jurisdictions in the State that include an R3 Area, or
4        their designees;
5            (B) Four community-based providers or community
6        development organization representatives who provide
7        services to treat violence and address the social
8        determinants of health, or promote community
9        investment, including, but not limited to, services
10        such as job placement and training, educational
11        services, workforce development programming, and
12        wealth building. The community-based organization
13        representatives shall work primarily in jurisdictions
14        that include an R3 Area and no more than 2
15        representatives shall work primarily in Cook County.
16        At least one of the community-based providers shall
17        have expertise in providing services to an immigrant
18        population;
19            (C) Two experts in the field of violence
20        reduction;
21            (D) One male who has previously been incarcerated
22        and is over the age of 24 at the time of appointment;
23            (E) One female who has previously been
24        incarcerated and is over the age of 24 at the time of
25        appointment;
26            (F) Two individuals who have previously been

 

 

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1        incarcerated and are between the ages of 17 and 24 at
2        the time of appointment; and .
3            (G) Eight individuals who live or work in an R3
4        Area.
5        As used in this paragraph (2), "an individual who has
6    been previously incarcerated" means a person who has been
7    convicted of or pled guilty to one or more felonies, who
8    was sentenced to a term of imprisonment, and who has
9    completed his or her sentence. Board members shall serve
10    without compensation and may be reimbursed for reasonable
11    expenses incurred in the performance of their duties from
12    funds appropriated for that purpose. Once all its members
13    have been appointed as outlined in items (A) through (F)
14    of this paragraph (2), the Board may exercise any power,
15    perform any function, take any action, or do anything in
16    furtherance of its purposes and goals upon the appointment
17    of a quorum of its members. The Board terms of the non-ex
18    officio and General Assembly Board members shall end 4
19    years from the date of appointment. The R3 board chair may
20    remove an individual appointed to the Board who does not
21    regularly attend Board meetings, based on criteria
22    approved by the Board.
23    (f) Within 12 months after the effective date of this Act,
24the Board shall:
25        (1) develop a process to solicit applications from
26    eligible R3 Areas;

 

 

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1        (2) develop a standard template for both planning and
2    implementation activities to be submitted by R3 Areas to
3    the State;
4        (3) identify resources sufficient to support the full
5    administration and evaluation of the R3 Program, including
6    building and sustaining core program capacity at the
7    community and State levels;
8        (4) review R3 Area grant applications and proposed
9    agreements and approve the distribution of resources;
10        (5) develop a performance measurement system that
11    focuses on positive outcomes;
12        (6) develop a process to support ongoing monitoring
13    and evaluation of R3 programs; and
14        (7) deliver an annual report to the General Assembly
15    and to the Governor to be posted on the Governor's Office
16    and General Assembly websites and provide to the public an
17    annual report on its progress.
18    (g) R3 Area grants.
19        (1) Grant funds shall be awarded by the Illinois
20    Criminal Justice Information Authority, in coordination
21    with the R3 board, based on the likelihood that the plan
22    will achieve the outcomes outlined in subsection (a) and
23    consistent with the requirements of the Grant
24    Accountability and Transparency Act. The R3 Program shall
25    also facilitate the provision of training and technical
26    assistance for capacity building within and among R3

 

 

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1    Areas.
2        (2) R3 Program Board grants shall be used to address
3    economic development, violence prevention services,
4    re-entry services, youth development, and civil legal aid.
5        (3) The Restore, Reinvest, and Renew Program Board and
6    the R3 Area grantees shall, within a period of no more than
7    120 days from the completion of planning activities
8    described in this Section, finalize an agreement on the
9    plan for implementation. Implementation activities may:
10            (A) have a basis in evidence or best practice
11        research or have evaluations demonstrating the
12        capacity to address the purpose of the program in
13        subsection (a);
14            (B) collect data from the inception of planning
15        activities through implementation, with data
16        collection technical assistance when needed, including
17        cost data and data related to identified meaningful
18        short-term, mid-term, and long-term goals and metrics;
19            (C) report data to the Restore, Reinvest, and
20        Renew Program Board biannually; and
21            (D) report information as requested by the R3
22        Program Board.
23(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
24    (410 ILCS 705/15-15)
25    Sec. 15-15. Early Approval Adult Use Dispensing

 

 

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1Organization License.
2    (a) Any medical cannabis dispensing organization holding a
3valid registration under the Compassionate Use of Medical
4Cannabis Program Act as of the effective date of this Act may,
5within 60 days of the effective date of this Act, apply to the
6Department for an Early Approval Adult Use Dispensing
7Organization License to serve purchasers at any medical
8cannabis dispensing location in operation on the effective
9date of this Act, pursuant to this Section.
10    (b) A medical cannabis dispensing organization seeking
11issuance of an Early Approval Adult Use Dispensing
12Organization License to serve purchasers at any medical
13cannabis dispensing location in operation as of the effective
14date of this Act shall submit an application on forms provided
15by the Department. The application must be submitted by the
16same person or entity that holds the medical cannabis
17dispensing organization registration and include the
18following:
19        (1) Payment of a nonrefundable fee of $30,000 to be
20    deposited into the Cannabis Regulation Fund;
21        (2) Proof of registration as a medical cannabis
22    dispensing organization that is in good standing;
23        (3) Certification that the applicant will comply with
24    the requirements contained in the Compassionate Use of
25    Medical Cannabis Program Act except as provided in this
26    Act;

 

 

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1        (4) The legal name of the dispensing organization;
2        (5) The physical address of the dispensing
3    organization;
4        (6) The name, address, social security number, and
5    date of birth of each principal officer and board member
6    of the dispensing organization, each of whom must be at
7    least 21 years of age;
8        (7) A nonrefundable Cannabis Business Development Fee
9    equal to 3% of the dispensing organization's total sales
10    between June 1, 2018 to June 1, 2019, or $100,000,
11    whichever is less, to be deposited into the Cannabis
12    Business Development Fund; and
13        (8) Identification of one of the following Social
14    Equity Inclusion Plans to be completed by March 31, 2021:
15            (A) Make a contribution of 3% of total sales from
16        June 1, 2018 to June 1, 2019, or $100,000, whichever is
17        less, to the Cannabis Business Development Fund. This
18        is in addition to the fee required by item (7) of this
19        subsection (b);
20            (B) Make a grant of 3% of total sales from June 1,
21        2018 to June 1, 2019, or $100,000, whichever is less,
22        to a cannabis industry training or education program
23        at an Illinois community college as defined in the
24        Public Community College Act;
25            (C) Make a donation of $100,000 or more to a
26        program that provides job training services to persons

 

 

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1        recently incarcerated or that operates in a
2        Disproportionately Impacted Area;
3            (D) Participate as a host in a cannabis business
4        establishment incubator program approved by the
5        Department of Commerce and Economic Opportunity, and
6        in which an Early Approval Adult Use Dispensing
7        Organization License holder agrees to provide a loan
8        of at least $100,000 and mentorship to incubate, for
9        at least a year, a Social Equity Applicant intending
10        to seek a license or a licensee that qualifies as a
11        Social Equity Applicant. As used in this Section,
12        "incubate" means providing direct financial assistance
13        and training necessary to engage in licensed cannabis
14        industry activity similar to that of the host
15        licensee. The Early Approval Adult Use Dispensing
16        Organization License holder or the same entity holding
17        any other licenses issued pursuant to this Act shall
18        not take an ownership stake of greater than 10% in any
19        business receiving incubation services to comply with
20        this subsection. If an Early Approval Adult Use
21        Dispensing Organization License holder fails to find a
22        business to incubate to comply with this subsection
23        before its Early Approval Adult Use Dispensing
24        Organization License expires, it may opt to meet the
25        requirement of this subsection by completing another
26        item from this subsection; or

 

 

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1            (E) Participate in a sponsorship program for at
2        least 2 years approved by the Department of Commerce
3        and Economic Opportunity in which an Early Approval
4        Adult Use Dispensing Organization License holder
5        agrees to provide an interest-free loan of at least
6        $200,000 to a Social Equity Applicant. The sponsor
7        shall not take an ownership stake in any cannabis
8        business establishment receiving sponsorship services
9        to comply with this subsection.
10    (b-5) Beginning 90 days after the effective date of this
11amendatory Act of the 102nd General Assembly, an Early
12Approval Adult Use Dispensing Organization licensee whose
13license was issued pursuant to this Section may apply to
14relocate within the same geographic district where its
15existing associated medical cannabis dispensing organization
16dispensary licensed under the Compassionate Use of Medical
17Cannabis Act is authorized to operate. A request to relocate
18under this subsection is subject to approval by the
19Department. An Early Approval Adult Use Dispensing
20Organization's application to relocate its license under this
21subsection shall be deemed approved 30 days following the
22submission of a complete application to relocate, unless
23sooner approved or denied in writing by the Department. If an
24application to relocate is denied, the Department shall
25provide, in writing, the specific reason for denial.
26    An Early Approval Adult Use Dispensing Organization may

 

 

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1request to relocate under this subsection if:
2        (1) its existing location is within the boundaries of
3    a unit of local government that prohibits the sale of
4    adult use cannabis; or
5        (2) the Early Approval Adult Use Dispensing
6    Organization has obtained the approval of the municipality
7    or, if outside the boundaries of a municipality in an
8    unincorporated area of the county, the approval of the
9    county where the existing license is located to move to
10    another location within that unit of local government.
11    At no time may an Early Approval Adult Use Dispensing
12Organization dispensary licensed under this Section operate in
13a separate facility from its associated medical cannabis
14dispensing organization dispensary licensed under the
15Compassionate Use of Medical Cannabis Act. The relocation of
16an Early Approval Adult Use Dispensing Organization License
17under this subsection shall be subject to Sections 55-25 and
1855-28 of this Act.
19    (c) The license fee required by paragraph (1) of
20subsection (b) of this Section shall be in addition to any
21license fee required for the renewal of a registered medical
22cannabis dispensing organization license.
23    (d) Applicants must submit all required information,
24including the requirements in subsection (b) of this Section,
25to the Department. Failure by an applicant to submit all
26required information may result in the application being

 

 

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1disqualified.
2    (e) If the Department receives an application that fails
3to provide the required elements contained in subsection (b),
4the Department shall issue a deficiency notice to the
5applicant. The applicant shall have 10 calendar days from the
6date of the deficiency notice to submit complete information.
7Applications that are still incomplete after this opportunity
8to cure may be disqualified.
9    (f) If an applicant meets all the requirements of
10subsection (b) of this Section, the Department shall issue the
11Early Approval Adult Use Dispensing Organization License
12within 14 days of receiving a completed application unless:
13        (1) The licensee or a principal officer is delinquent
14    in filing any required tax returns or paying any amounts
15    owed to the State of Illinois;
16        (2) The Secretary of Financial and Professional
17    Regulation determines there is reason, based on documented
18    compliance violations, the licensee is not entitled to an
19    Early Approval Adult Use Dispensing Organization License;
20    or
21        (3) Any principal officer fails to register and remain
22    in compliance with this Act or the Compassionate Use of
23    Medical Cannabis Program Act.
24    (g) A registered medical cannabis dispensing organization
25that obtains an Early Approval Adult Use Dispensing
26Organization License may begin selling cannabis,

 

 

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1cannabis-infused products, paraphernalia, and related items to
2purchasers under the rules of this Act no sooner than January
31, 2020.
4    (h) A dispensing organization holding a medical cannabis
5dispensing organization license issued under the Compassionate
6Use of Medical Cannabis Program Act must maintain an adequate
7supply of cannabis and cannabis-infused products for purchase
8by qualifying patients, caregivers, provisional patients, and
9Opioid Alternative Pilot Program participants. For the
10purposes of this subsection, "adequate supply" means a monthly
11inventory level that is comparable in type and quantity to
12those medical cannabis products provided to patients and
13caregivers on an average monthly basis for the 6 months before
14the effective date of this Act.
15    (i) If there is a shortage of cannabis or cannabis-infused
16products, a dispensing organization holding both a dispensing
17organization license under the Compassionate Use of Medical
18Cannabis Program Act and this Act shall prioritize serving
19qualifying patients, caregivers, provisional patients, and
20Opioid Alternative Pilot Program participants before serving
21purchasers.
22    (j) Notwithstanding any law or rule to the contrary, a
23person that holds a medical cannabis dispensing organization
24license issued under the Compassionate Use of Medical Cannabis
25Program Act and an Early Approval Adult Use Dispensing
26Organization License may permit purchasers into a limited

 

 

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1access area as that term is defined in administrative rules
2made under the authority in the Compassionate Use of Medical
3Cannabis Program Act.
4    (k) An Early Approval Adult Use Dispensing Organization
5License is valid until March 31, 2021. A dispensing
6organization that obtains an Early Approval Adult Use
7Dispensing Organization License shall receive written or
8electronic notice 90 days before the expiration of the license
9that the license will expire, and that informs the license
10holder that it may apply to renew its Early Approval Adult Use
11Dispensing Organization License on forms provided by the
12Department. The Department shall renew the Early Approval
13Adult Use Dispensing Organization License within 60 days of
14the renewal application being deemed complete if:
15        (1) the dispensing organization submits an application
16    and the required nonrefundable renewal fee of $30,000, to
17    be deposited into the Cannabis Regulation Fund;
18        (2) the Department has not suspended or permanently
19    revoked the Early Approval Adult Use Dispensing
20    Organization License or a medical cannabis dispensing
21    organization license on the same premises for violations
22    of this Act, the Compassionate Use of Medical Cannabis
23    Program Act, or rules adopted pursuant to those Acts;
24        (3) the dispensing organization has completed a Social
25    Equity Inclusion Plan as provided by parts (A), (B), and
26    (C) of paragraph (8) of subsection (b) of this Section or

 

 

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1    has made substantial progress toward completing a Social
2    Equity Inclusion Plan as provided by parts (D) and (E) of
3    paragraph (8) of subsection (b) of this Section; and
4        (4) the dispensing organization is in compliance with
5    this Act and rules.
6    (l) The Early Approval Adult Use Dispensing Organization
7License renewed pursuant to subsection (k) of this Section
8shall expire March 31, 2022. The Early Approval Adult Use
9Dispensing Organization Licensee shall receive written or
10electronic notice 90 days before the expiration of the license
11that the license will expire, and that informs the license
12holder that it may apply for an Adult Use Dispensing
13Organization License on forms provided by the Department. The
14Department shall grant an Adult Use Dispensing Organization
15License within 60 days of an application being deemed complete
16if the applicant has met all of the criteria in Section 15-36.
17    (m) If a dispensing organization fails to submit an
18application for renewal of an Early Approval Adult Use
19Dispensing Organization License or for an Adult Use Dispensing
20Organization License before the expiration dates provided in
21subsections (k) and (l) of this Section, the dispensing
22organization shall cease serving purchasers and cease all
23operations until it receives a renewal or an Adult Use
24Dispensing Organization License, as the case may be.
25    (n) A dispensing organization agent who holds a valid
26dispensing organization agent identification card issued under

 

 

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1the Compassionate Use of Medical Cannabis Program Act and is
2an officer, director, manager, or employee of the dispensing
3organization licensed under this Section may engage in all
4activities authorized by this Article to be performed by a
5dispensing organization agent.
6    (o) If the Department suspends, permanently revokes, or
7otherwise disciplines the Early Approval Adult Use Dispensing
8Organization License of a dispensing organization that also
9holds a medical cannabis dispensing organization license
10issued under the Compassionate Use of Medical Cannabis Program
11Act, the Department may consider the suspension, permanent
12revocation, or other discipline of the medical cannabis
13dispensing organization license.
14    (p) All fees collected pursuant to this Section shall be
15deposited into the Cannabis Regulation Fund, unless otherwise
16specified.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/15-25)
19    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
20Organization Licenses prior to January 1, 2021.
21    (a) The Department shall issue up to 75 Conditional Adult
22Use Dispensing Organization Licenses before May 1, 2020.
23    (b) The Department shall make the application for a
24Conditional Adult Use Dispensing Organization License
25available no later than October 1, 2019 and shall accept

 

 

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1applications no later than January 1, 2020.
2    (c) To ensure the geographic dispersion of Conditional
3Adult Use Dispensing Organization License holders, the
4following number of licenses shall be awarded in each BLS
5Region as determined by each region's percentage of the
6State's population:
7        (1) Bloomington: 1
8        (2) Cape Girardeau: 1
9        (3) Carbondale-Marion: 1
10        (4) Champaign-Urbana: 1
11        (5) Chicago-Naperville-Elgin: 47
12        (6) Danville: 1
13        (7) Davenport-Moline-Rock Island: 1
14        (8) Decatur: 1
15        (9) Kankakee: 1
16        (10) Peoria: 3
17        (11) Rockford: 2
18        (12) St. Louis: 4
19        (13) Springfield: 1
20        (14) Northwest Illinois nonmetropolitan: 3
21        (15) West Central Illinois nonmetropolitan: 3
22        (16) East Central Illinois nonmetropolitan: 2
23        (17) South Illinois nonmetropolitan: 2
24    (d) An applicant seeking issuance of a Conditional Adult
25Use Dispensing Organization License shall submit an
26application on forms provided by the Department. An applicant

 

 

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1must meet the following requirements:
2        (1) Payment of a nonrefundable application fee of
3    $5,000 for each license for which the applicant is
4    applying, which shall be deposited into the Cannabis
5    Regulation Fund;
6        (2) Certification that the applicant will comply with
7    the requirements contained in this Act;
8        (3) The legal name of the proposed dispensing
9    organization;
10        (4) A statement that the dispensing organization
11    agrees to respond to the Department's supplemental
12    requests for information;
13        (5) From each principal officer, a statement
14    indicating whether that person:
15            (A) has previously held or currently holds an
16        ownership interest in a cannabis business
17        establishment in Illinois; or
18            (B) has held an ownership interest in a dispensing
19        organization or its equivalent in another state or
20        territory of the United States that had the dispensing
21        organization registration or license suspended,
22        revoked, placed on probationary status, or subjected
23        to other disciplinary action;
24        (6) Disclosure of whether any principal officer has
25    ever filed for bankruptcy or defaulted on spousal support
26    or child support obligation;

 

 

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1        (7) A resume for each principal officer, including
2    whether that person has an academic degree, certification,
3    or relevant experience with a cannabis business
4    establishment or in a related industry;
5        (8) A description of the training and education that
6    will be provided to dispensing organization agents;
7        (9) A copy of the proposed operating bylaws;
8        (10) A copy of the proposed business plan that
9    complies with the requirements in this Act, including, at
10    a minimum, the following:
11            (A) A description of services to be offered; and
12            (B) A description of the process of dispensing
13        cannabis;
14        (11) A copy of the proposed security plan that
15    complies with the requirements in this Article, including:
16            (A) The process or controls that will be
17        implemented to monitor the dispensary, secure the
18        premises, agents, and currency, and prevent the
19        diversion, theft, or loss of cannabis; and
20            (B) The process to ensure that access to the
21        restricted access areas is restricted to, registered
22        agents, service professionals, transporting
23        organization agents, Department inspectors, and
24        security personnel;
25        (12) A proposed inventory control plan that complies
26    with this Section;

 

 

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1        (13) A proposed floor plan, a square footage estimate,
2    and a description of proposed security devices, including,
3    without limitation, cameras, motion detectors, servers,
4    video storage capabilities, and alarm service providers;
5        (14) The name, address, social security number, and
6    date of birth of each principal officer and board member
7    of the dispensing organization; each of those individuals
8    shall be at least 21 years of age;
9        (15) Evidence of the applicant's status as a Social
10    Equity Applicant, if applicable, and whether a Social
11    Equity Applicant plans to apply for a loan or grant issued
12    by the Department of Commerce and Economic Opportunity;
13        (16) The address, telephone number, and email address
14    of the applicant's principal place of business, if
15    applicable. A post office box is not permitted;
16        (17) Written summaries of any information regarding
17    instances in which a business or not-for-profit that a
18    prospective board member previously managed or served on
19    were fined or censured, or any instances in which a
20    business or not-for-profit that a prospective board member
21    previously managed or served on had its registration
22    suspended or revoked in any administrative or judicial
23    proceeding;
24        (18) A plan for community engagement;
25        (19) Procedures to ensure accurate recordkeeping and
26    security measures that are in accordance with this Article

 

 

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1    and Department rules;
2        (20) The estimated volume of cannabis it plans to
3    store at the dispensary;
4        (21) A description of the features that will provide
5    accessibility to purchasers as required by the Americans
6    with Disabilities Act;
7        (22) A detailed description of air treatment systems
8    that will be installed to reduce odors;
9        (23) A reasonable assurance that the issuance of a
10    license will not have a detrimental impact on the
11    community in which the applicant wishes to locate;
12        (24) The dated signature of each principal officer;
13        (25) A description of the enclosed, locked facility
14    where cannabis will be stored by the dispensing
15    organization;
16        (26) Signed statements from each dispensing
17    organization agent stating that he or she will not divert
18    cannabis;
19        (27) The number of licenses it is applying for in each
20    BLS Region;
21        (28) A diversity plan that includes a narrative of at
22    least 2,500 words that establishes a goal of diversity in
23    ownership, management, employment, and contracting to
24    ensure that diverse participants and groups are afforded
25    equality of opportunity;
26        (29) A contract with a private security contractor

 

 

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1    agency that is licensed under Section 10-5 of the Private
2    Detective, Private Alarm, Private Security, Fingerprint
3    Vendor, and Locksmith Act of 2004 in order for the
4    dispensary to have adequate security at its facility; and
5        (30) Other information deemed necessary by the
6    Illinois Cannabis Regulation Oversight Officer to conduct
7    the disparity and availability study referenced in
8    subsection (e) of Section 5-45.
9    (e) An applicant who receives a Conditional Adult Use
10Dispensing Organization License under this Section has 180
11days from the date of award to identify a physical location for
12the dispensing organization retail storefront. Before a
13conditional licensee receives an authorization to build out
14the dispensing organization from the Department, the
15Department shall inspect the physical space selected by the
16conditional licensee. The Department shall verify the site is
17suitable for public access, the layout promotes the safe
18dispensing of cannabis, the location is sufficient in size,
19power allocation, lighting, parking, handicapped accessible
20parking spaces, accessible entry and exits as required by the
21Americans with Disabilities Act, product handling, and
22storage. The applicant shall also provide a statement of
23reasonable assurance that the issuance of a license will not
24have a detrimental impact on the community. The applicant
25shall also provide evidence that the location is not within
261,500 feet of an existing dispensing organization, unless the

 

 

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1applicant is a Social Equity Applicant or Social Equity
2Justice Involved Applicant located or seeking to locate within
31,500 feet of a dispensing organization licensed under Section
415-15 or Section 15-20. If an applicant is unable to find a
5suitable physical address in the opinion of the Department
6within 180 days of the issuance of the Conditional Adult Use
7Dispensing Organization License, the Department may extend the
8period for finding a physical address another 180 days if the
9Conditional Adult Use Dispensing Organization License holder
10demonstrates concrete attempts to secure a location and a
11hardship. If the Department denies the extension or the
12Conditional Adult Use Dispensing Organization License holder
13is unable to find a location or become operational within 360
14days of being awarded a conditional license, the Department
15shall rescind the conditional license and award it to the next
16highest scoring applicant in the BLS Region for which the
17license was assigned, provided the applicant receiving the
18license: (i) confirms a continued interest in operating a
19dispensing organization; (ii) can provide evidence that the
20applicant continues to meet all requirements for holding a
21Conditional Adult Use Dispensing Organization License set
22forth in this Act; and (iii) has not otherwise become
23ineligible to be awarded a dispensing organization license. If
24the new awardee is unable to accept the Conditional Adult Use
25Dispensing Organization License, the Department shall award
26the Conditional Adult Use Dispensing Organization License to

 

 

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1the next highest scoring applicant in the same manner. The new
2awardee shall be subject to the same required deadlines as
3provided in this subsection.
4    (e-5) If, within 180 days of being awarded a Conditional
5Adult Use Dispensing Organization License, a dispensing
6organization is unable to find a location within the BLS
7Region in which it was awarded a Conditional Adult Use
8Dispensing Organization License because no jurisdiction within
9the BLS Region allows for the operation of an Adult Use
10Dispensing Organization, the Department of Financial and
11Professional Regulation may authorize the Conditional Adult
12Use Dispensing Organization License holder to transfer its
13license to a BLS Region specified by the Department.
14    (f) A dispensing organization that is awarded a
15Conditional Adult Use Dispensing Organization License pursuant
16to the criteria in Section 15-30 shall not purchase, possess,
17sell, or dispense cannabis or cannabis-infused products until
18the person has received an Adult Use Dispensing Organization
19License issued by the Department pursuant to Section 15-36 of
20this Act.
21    (g) The Department shall conduct a background check of the
22prospective organization agents in order to carry out this
23Article. The Department of State Police shall charge the
24applicant a fee for conducting the criminal history record
25check, which shall be deposited into the State Police Services
26Fund and shall not exceed the actual cost of the record check.

 

 

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1Each person applying as a dispensing organization agent shall
2submit a full set of fingerprints to the Department of State
3Police for the purpose of obtaining a State and federal
4criminal records check. These fingerprints shall be checked
5against the fingerprint records now and hereafter, to the
6extent allowed by law, filed in the Department of State Police
7and Federal Bureau of Identification criminal history records
8databases. The Department of State Police shall furnish,
9following positive identification, all Illinois conviction
10information to the Department.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
12    (410 ILCS 705/15-30)
13    Sec. 15-30. Selection criteria for conditional licenses
14awarded under Section 15-25.
15    (a) Applicants for a Conditional Adult Use Dispensing
16Organization License must submit all required information,
17including the information required in Section 15-25, to the
18Department. Failure by an applicant to submit all required
19information may result in the application being disqualified.
20    (b) If the Department receives an application that fails
21to provide the required elements contained in this Section,
22the Department shall issue a deficiency notice to the
23applicant. The applicant shall have 10 calendar days from the
24date of the deficiency notice to resubmit the incomplete
25information. Applications that are still incomplete after this

 

 

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1opportunity to cure will not be scored and will be
2disqualified.
3    (c) The Department will award up to 250 points to complete
4applications based on the sufficiency of the applicant's
5responses to required information. Applicants will be awarded
6points based on a determination that the application
7satisfactorily includes the following elements:
8        (1) Suitability of Employee Training Plan (15 points).
9            The plan includes an employee training plan that
10        demonstrates that employees will understand the rules
11        and laws to be followed by dispensary employees, have
12        knowledge of any security measures and operating
13        procedures of the dispensary, and are able to advise
14        purchasers on how to safely consume cannabis and use
15        individual products offered by the dispensary.
16        (2) Security and Recordkeeping (65 points).
17            (A) The security plan accounts for the prevention
18        of the theft or diversion of cannabis. The security
19        plan demonstrates safety procedures for dispensing
20        organization agents and purchasers, and safe delivery
21        and storage of cannabis and currency. It demonstrates
22        compliance with all security requirements in this Act
23        and rules.
24            (B) A plan for recordkeeping, tracking, and
25        monitoring inventory, quality control, and other
26        policies and procedures that will promote standard

 

 

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1        recordkeeping and discourage unlawful activity. This
2        plan includes the applicant's strategy to communicate
3        with the Department and the Department of State Police
4        on the destruction and disposal of cannabis. The plan
5        must also demonstrate compliance with this Act and
6        rules.
7            (C) The security plan shall also detail which
8        private security contractor licensed under Section
9        10-5 of the Private Detective, Private Alarm, Private
10        Security, Fingerprint Vendor, and Locksmith Act of
11        2004 the dispensary will contract with in order to
12        provide adequate security at its facility.
13        (3) Applicant's Business Plan, Financials, Operating
14    and Floor Plan (65 points).
15            (A) The business plan shall describe, at a
16        minimum, how the dispensing organization will be
17        managed on a long-term basis. This shall include a
18        description of the dispensing organization's
19        point-of-sale system, purchases and denials of sale,
20        confidentiality, and products and services to be
21        offered. It will demonstrate compliance with this Act
22        and rules.
23            (B) The operating plan shall include, at a
24        minimum, best practices for day-to-day dispensary
25        operation and staffing. The operating plan may also
26        include information about employment practices,

 

 

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1        including information about the percentage of
2        full-time employees who will be provided a living
3        wage.
4            (C) The proposed floor plan is suitable for public
5        access, the layout promotes safe dispensing of
6        cannabis, is compliant with the Americans with
7        Disabilities Act and the Environmental Barriers Act,
8        and facilitates safe product handling and storage.
9        (4) Knowledge and Experience (30 points).
10            (A) The applicant's principal officers must
11        demonstrate experience and qualifications in business
12        management or experience with the cannabis industry.
13        This includes ensuring optimal safety and accuracy in
14        the dispensing and sale of cannabis.
15            (B) The applicant's principal officers must
16        demonstrate knowledge of various cannabis product
17        strains or varieties and describe the types and
18        quantities of products planned to be sold. This
19        includes confirmation of whether the dispensing
20        organization plans to sell cannabis paraphernalia or
21        edibles.
22            (C) Knowledge and experience may be demonstrated
23        through experience in other comparable industries that
24        reflect on the applicant's ability to operate a
25        cannabis business establishment.
26        (5) Status as a Social Equity Applicant (50 points).

 

 

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1            The applicant meets the qualifications for a
2        Social Equity Applicant as set forth in this Act.
3        (6) Labor and employment practices (5 points): The
4    applicant may describe plans to provide a safe, healthy,
5    and economically beneficial working environment for its
6    agents, including, but not limited to, codes of conduct,
7    health care benefits, educational benefits, retirement
8    benefits, living wage standards, and entering a labor
9    peace agreement with employees.
10        (7) Environmental Plan (5 points): The applicant may
11    demonstrate an environmental plan of action to minimize
12    the carbon footprint, environmental impact, and resource
13    needs for the dispensary, which may include, without
14    limitation, recycling cannabis product packaging.
15        (8) Illinois owner (5 points): The applicant is 51% or
16    more owned and controlled by an Illinois resident, who can
17    prove residency in each of the past 5 years with tax
18    records or 2 of the following:
19            (A) a signed lease agreement that includes the
20        applicant's name;
21            (B) a property deed that includes the applicant's
22        name;
23            (C) school records;
24            (D) a voter registration card;
25            (E) an Illinois driver's license, an Illinois
26        Identification Card, or an Illinois Person with a

 

 

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1        Disability Identification Card;
2            (F) a paycheck stub;
3            (G) a utility bill; or
4            (H) any other proof of residency or other
5        information necessary to establish residence as
6        provided by rule.
7        (9) Status as veteran (5 points): The applicant is 51%
8    or more controlled and owned by an individual or
9    individuals who meet the qualifications of a veteran as
10    defined by Section 45-57 of the Illinois Procurement Code.
11        (10) A diversity plan (5 points): that includes a
12    narrative of not more than 2,500 words that establishes a
13    goal of diversity in ownership, management, employment,
14    and contracting to ensure that diverse participants and
15    groups are afforded equality of opportunity.
16    (d) The Department may also award up to 2 bonus points for
17a plan to engage with the community. The applicant may
18demonstrate a desire to engage with its community by
19participating in one or more of, but not limited to, the
20following actions: (i) establishment of an incubator program
21designed to increase participation in the cannabis industry by
22persons who would qualify as Social Equity Applicants; (ii)
23providing financial assistance to substance abuse treatment
24centers; (iii) educating children and teens about the
25potential harms of cannabis use; or (iv) other measures
26demonstrating a commitment to the applicant's community. Bonus

 

 

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1points will only be awarded if the Department receives
2applications that receive an equal score for a particular
3region.
4    (e) The Department may verify information contained in
5each application and accompanying documentation to assess the
6applicant's veracity and fitness to operate a dispensing
7organization.
8    (f) The Department may, in its discretion, refuse to issue
9an authorization to any applicant:
10        (1) Who is unqualified to perform the duties required
11    of the applicant;
12        (2) Who fails to disclose or states falsely any
13    information called for in the application;
14        (3) Who has been found guilty of a violation of this
15    Act, who has had any disciplinary order entered against it
16    by the Department, who has entered into a disciplinary or
17    nondisciplinary agreement with the Department, or whose
18    medical cannabis dispensing organization, medical cannabis
19    cultivation organization, or Early Approval Adult Use
20    Dispensing Organization License, or Early Approval Adult
21    Use Dispensing Organization License at a secondary site,
22    or Early Approval Cultivation Center License was
23    suspended, restricted, revoked, or denied for just cause,
24    or the applicant's cannabis business establishment license
25    was suspended, restricted, revoked, or denied in any other
26    state; or

 

 

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1        (4) Who has engaged in a pattern or practice of unfair
2    or illegal practices, methods, or activities in the
3    conduct of owning a cannabis business establishment or
4    other business.
5    (g) The Department shall deny the license if any principal
6officer, board member, or person having a financial or voting
7interest of 5% or greater in the licensee is delinquent in
8filing any required tax returns or paying any amounts owed to
9the State of Illinois.
10    (h) The Department shall verify an applicant's compliance
11with the requirements of this Article and rules before issuing
12a dispensing organization license.
13    (i) Should the applicant be awarded a license, the
14information and plans provided in the application, including
15any plans submitted for bonus points, shall become a condition
16of the Conditional Adult Use Dispensing Organization Licenses
17and any Adult Use Dispensing Organization License issued to
18the holder of the Conditional Adult Use Dispensing
19Organization License, except as otherwise provided by this Act
20or rule. Dispensing organizations have a duty to disclose any
21material changes to the application. The Department shall
22review all material changes disclosed by the dispensing
23organization, and may re-evaluate its prior decision regarding
24the awarding of a license, including, but not limited to,
25suspending or permanently revoking a license. Failure to
26comply with the conditions or requirements in the application

 

 

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1may subject the dispensing organization to discipline, up to
2and including suspension or permanent revocation of its
3authorization or license by the Department.
4    (j) If an applicant has not begun operating as a
5dispensing organization within one year of the issuance of the
6Conditional Adult Use Dispensing Organization License, the
7Department may permanently revoke the Conditional Adult Use
8Dispensing Organization License and award it to the next
9highest scoring applicant in the BLS Region if a suitable
10applicant indicates a continued interest in the license or
11begin a new selection process to award a Conditional Adult Use
12Dispensing Organization License.
13    (k) The Department shall deny an application if granting
14that application would result in a single person or entity
15having a direct or indirect financial interest in more than 10
16Early Approval Adult Use Dispensing Organization Licenses,
17Conditional Adult Use Dispensing Organization Licenses, or
18Adult Use Dispensing Organization Licenses. Any entity that is
19awarded a license that results in a single person or entity
20having a direct or indirect financial interest in more than 10
21licenses shall forfeit the most recently issued license and
22suffer a penalty to be determined by the Department, unless
23the entity declines the license at the time it is awarded.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
25    (410 ILCS 705/15-30.20 new)

 

 

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1    Sec. 15-30.20. Tied Applicant Lottery; additional
2requirements; timing.
3    (a) If awarding a license in a Tied Applicant Lottery
4would result in a Tied Applicant possessing more than 10 Early
5Approval Adult Use Dispensing Organization Licenses, Early
6Approval Adult Use Dispensing Organization Licenses at a
7secondary site, Conditional Adult Use Dispensing Organization
8Licenses, Adult Use Dispensing Organization Licenses, or any
9combination thereof, the Tied Applicant must choose which
10license to abandon pursuant to subsection (d) of Section 15-36
11and notify the Department in writing within 5 business days
12after the date that the Tied Applicant Lottery is conducted.
13    (b) The Department shall publish the certified results of
14a Tied Applicant Lottery within 2 business days after the Tied
15Applicant Lottery is conducted.
 
16    (410 ILCS 705/15-35)
17    Sec. 15-35. Qualifying Applicant Lottery for Conditional
18Adult Use Dispensing Organization Licenses License after
19January 1, 2021.
20    (a) In addition to any of the licenses issued under
21Section in Sections 15-15, Section 15-20, or Section 15-25,
22Section 15-30.20, or Section 15-35.10 of this Act, within 10
23business days after the resulting final scores for all scored
24applications pursuant to Sections 15-25 and 15-30 are
25released, by December 21, 2021, the Department shall issue up

 

 

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1to 55 110 Conditional Adult Use Dispensing Organization
2Licenses by lot, pursuant to the application process adopted
3under this Section. In order to be eligible to be awarded a
4Conditional Adult Use Dispensing Organization License by lot
5under this Section, a Dispensary Applicant must be a
6Qualifying Applicant.
7    The licenses issued under this Section shall be awarded in
8each BLS Region in the following amounts:
9        (1) Bloomington: 1.
10        (2) Cape Girardeau: 1.
11        (3) Carbondale-Marion: 1.
12        (4) Champaign-Urbana: 1.
13        (5) Chicago-Naperville-Elgin: 36.
14        (6) Danville: 1.
15        (7) Davenport-Moline-Rock Island: 1.
16        (8) Decatur: 1.
17        (9) Kankakee: 1.
18        (10) Peoria: 2.
19        (11) Rockford: 1.
20        (12) St. Louis: 3.
21        (13) Springfield: 1.
22        (14) Northwest Illinois nonmetropolitan: 1.
23        (15) West Central Illinois nonmetropolitan: 1.
24        (16) East Central Illinois nonmetropolitan: 1.
25        (17) South Illinois nonmetropolitan: 1.
26    (a-5) Prior to issuing such licenses under subsection (a),

 

 

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1the Department may adopt rules through emergency rulemaking in
2accordance with subsection (kk) (gg) of Section 5-45 of the
3Illinois Administrative Procedure Act. The General Assembly
4finds that the adoption of rules to regulate cannabis use is
5deemed an emergency and necessary for the public interest,
6safety, and welfare. Such rules may:
7        (1) Modify or change the BLS Regions as they apply to
8    this Article or modify or raise the number of Adult
9    Conditional Use Dispensing Organization Licenses assigned
10    to each region based on the following factors:
11            (A) Purchaser wait times;
12            (B) Travel time to the nearest dispensary for
13        potential purchasers;
14            (C) Percentage of cannabis sales occurring in
15        Illinois not in the regulated market using data from
16        the Substance Abuse and Mental Health Services
17        Administration, National Survey on Drug Use and
18        Health, Illinois Behavioral Risk Factor Surveillance
19        System, and tourism data from the Illinois Office of
20        Tourism to ascertain total cannabis consumption in
21        Illinois compared to the amount of sales in licensed
22        dispensing organizations;
23            (D) Whether there is an adequate supply of
24        cannabis and cannabis-infused products to serve
25        registered medical cannabis patients;
26            (E) Population increases or shifts;

 

 

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1            (F) Density of dispensing organizations in a
2        region;
3            (G) The Department's capacity to appropriately
4        regulate additional licenses;
5            (H) The findings and recommendations from the
6        disparity and availability study commissioned by the
7        Illinois Cannabis Regulation Oversight Officer in
8        subsection (e) of Section 5-45 to reduce or eliminate
9        any identified barriers to entry in the cannabis
10        industry; and
11            (I) Any other criteria the Department deems
12        relevant.
13        (2) Modify or change the licensing application process
14    to reduce or eliminate the barriers identified in the
15    disparity and availability study commissioned by the
16    Illinois Cannabis Regulation Oversight Officer and make
17    modifications to remedy evidence of discrimination.
18    (b) The Department shall distribute the available licenses
19established under this Section subject to the following: After
20January 1, 2022, the Department may by rule modify or raise the
21number of Adult Use Dispensing Organization Licenses assigned
22to each region, and modify or change the licensing application
23process to reduce or eliminate barriers based on the criteria
24in subsection (a). At no time shall the Department issue more
25than 500 Adult Use Dispensing Organization Licenses.
26        (1) The drawing by lot for all available licenses

 

 

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1    issued under this Section shall occur on the same day when
2    practicable.
3        (2) Within each BLS Region, the first Qualifying
4    Applicant drawn will have the first right to an available
5    license. The second Qualifying Applicant drawn will have
6    the second right to an available license. The same pattern
7    will continue for each subsequent Qualifying Applicant
8    drawn.
9        (3) The process for distributing available licenses
10    under this Section shall be recorded by the Department in
11    a format selected by the Department.
12        (4) A Dispensary Applicant is prohibited from becoming
13    a Qualifying Applicant if a principal officer resigns
14    after the resulting final scores for all scored
15    applications pursuant to Sections 15-25 and 15-30 are
16    released.
17        (5) No Qualifying Applicant may be awarded more than 2
18    Conditional Adult Use Dispensing Organization Licenses at
19    the conclusion of a lottery conducted under this Section.
20        (6) No individual may be listed as a principal officer
21    of more than 2 Conditional Adult Use Dispensing
22    Organization Licenses awarded under this Section.
23        (7) If, upon being selected for an available license
24    established under this Section, a Qualifying Applicant
25    exceeds the limits under paragraph (5) or (6), the
26    Qualifying Applicant must choose which license to abandon

 

 

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1    and notify the Department in writing within 5 business
2    days. If the Qualifying Applicant does not notify the
3    Department as required, the Department shall refuse to
4    issue the Qualifying Applicant all available licenses
5    established under this Section obtained by lot in all BLS
6    Regions.
7        (8) If, upon being selected for an available license
8    established under this Section, a Qualifying Applicant has
9    a principal officer who is a principal officer in more
10    than 10 Early Approval Adult Use Dispensing Organization
11    Licenses, Conditional Adult Use Dispensing Organization
12    Licenses, Adult Use Dispensing Organization Licenses, or
13    any combination thereof, the licensees and the Qualifying
14    Applicant listing that principal officer must choose which
15    license to abandon pursuant to subsection (d) of Section
16    15-36 and notify the Department in writing within 5
17    business days. If the Qualifying Applicant or licensees do
18    not notify the Department as required, the Department
19    shall refuse to issue the Qualifying Applicant all
20    available licenses established under this Section obtained
21    by lot in all BLS Regions.
22        (9) All available licenses that have been abandoned
23    under paragraph (7) or (8) shall be distributed to the
24    next Qualifying Applicant drawn by lot.
25    Any and all rights conferred or obtained under this
26Section shall be limited to the provisions of this Section.

 

 

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1    (c) An applicant who receives a Conditional Adult Use
2Dispensing Organization License under this Section has 180
3days from the date it is awarded to identify a physical
4location for the dispensing organization's retail storefront.
5The applicant shall provide evidence that the location is not
6within 1,500 feet of an existing dispensing organization,
7unless the applicant is a Social Equity Applicant or Social
8Equity Justice Involved Applicant located or seeking to locate
9within 1,500 feet of a dispensing organization licensed under
10Section 15-15 or Section 15-20. If an applicant is unable to
11find a suitable physical address in the opinion of the
12Department within 180 days from the issuance of the
13Conditional Adult Use Dispensing Organization License, the
14Department may extend the period for finding a physical
15address another 180 days if the Conditional Adult Use
16Dispensing Organization License holder demonstrates a concrete
17attempt to secure a location and a hardship. If the Department
18denies the extension or the Conditional Adult Use Dispensing
19Organization License holder is unable to find a location or
20become operational within 360 days of being awarded a
21Conditional Adult Use Dispensing Organization License under
22this Section, the Department shall rescind the Conditional
23Adult Use Dispensing Organization License and award it
24pursuant to subsection (b), provided the applicant receiving
25the Conditional Adult Use Dispensing Organization License: (i)
26confirms a continued interest in operating a dispensing

 

 

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1organization; (ii) can provide evidence that the applicant
2continues to meet all requirements for holding a Conditional
3Adult Use Dispensing Organization License set forth in this
4Act; and (iii) has not otherwise become ineligible to be
5awarded a Conditional Adult Use Dispensing Organization
6License. If the new awardee is unable to accept the
7Conditional Adult Use Dispensing Organization License, the
8Department shall award the Conditional Adult Use Dispensing
9Organization License pursuant to subsection (b). The new
10awardee shall be subject to the same required deadlines as
11provided in this subsection.
12    (d) If, within 180 days of being awarded a Conditional
13Adult Use Dispensing Organization License, a dispensing
14organization is unable to find a location within the BLS
15Region in which it was awarded a Conditional Adult Use
16Dispensing Organization License because no jurisdiction within
17the BLS Region allows for the operation of an Adult Use
18Dispensing Organization, the Department may authorize the
19Conditional Adult Use Dispensing Organization License holder
20to transfer its Conditional Adult Use Dispensing Organization
21License to a BLS Region specified by the Department.
22    (e) A dispensing organization that is awarded a
23Conditional Adult Use Dispensing Organization License under
24this Section shall not purchase, possess, sell, or dispense
25cannabis or cannabis-infused products until the dispensing
26organization has received an Adult Use Dispensing Organization

 

 

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1License issued by the Department pursuant to Section 15-36.
2    (f) The Department shall conduct a background check of the
3prospective dispensing organization agents in order to carry
4out this Article. The Illinois State Police shall charge the
5applicant a fee for conducting the criminal history record
6check, which shall be deposited into the State Police Services
7Fund and shall not exceed the actual cost of the record check.
8Each person applying as a dispensing organization agent shall
9submit a full set of fingerprints to the Illinois State Police
10for the purpose of obtaining a State and federal criminal
11records check. These fingerprints shall be checked against the
12fingerprint records now and hereafter, to the extent allowed
13by law, filed with the Illinois State Police and the Federal
14Bureau of Investigation criminal history records databases.
15The Illinois State Police shall furnish, following positive
16identification, all Illinois conviction information to the
17Department.
18    (g) The Department may verify information contained in
19each application and accompanying documentation to assess the
20applicant's veracity and fitness to operate a dispensing
21organization.
22    (h) The Department may, in its discretion, refuse to issue
23authorization to an applicant who meets any of the following
24criteria:
25        (1) An applicant who is unqualified to perform the
26    duties required of the applicant.

 

 

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1        (2) An applicant who fails to disclose or states
2    falsely any information called for in the application.
3        (3) An applicant who has been found guilty of a
4    violation of this Act, who has had any disciplinary order
5    entered against the applicant by the Department, who has
6    entered into a disciplinary or nondisciplinary agreement
7    with the Department, whose medical cannabis dispensing
8    organization, medical cannabis cultivation organization,
9    Early Approval Adult Use Dispensing Organization License,
10    Early Approval Adult Use Dispensing Organization License
11    at a secondary site, Early Approval Cultivation Center
12    License, Conditional Adult Use Dispensing Organization
13    License, or Adult Use Dispensing Organization License was
14    suspended, restricted, revoked, or denied for just cause,
15    or whose cannabis business establishment license was
16    suspended, restricted, revoked, or denied in any other
17    state.
18        (4) An applicant who has engaged in a pattern or
19    practice of unfair or illegal practices, methods, or
20    activities in the conduct of owning a cannabis business
21    establishment or other business.
22    (i) The Department shall deny issuance of a license under
23this Section if any principal officer, board member, or person
24having a financial or voting interest of 5% or greater in the
25licensee is delinquent in filing any required tax return or
26paying any amount owed to the State of Illinois.

 

 

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1    (j) The Department shall verify an applicant's compliance
2with the requirements of this Article and rules adopted under
3this Article before issuing a Conditional Adult Use Dispensing
4Organization License under this Section.
5    (k) If an applicant is awarded a Conditional Adult Use
6Dispensing Organization License under this Section, the
7information and plans provided in the application, including
8any plans submitted for bonus points, shall become a condition
9of the Conditional Adult Use Dispensing Organization License
10and any Adult Use Dispensing Organization License issued to
11the holder of the Conditional Adult Use Dispensing
12Organization License, except as otherwise provided by this Act
13or by rule. A dispensing organization has a duty to disclose
14any material changes to the application. The Department shall
15review all material changes disclosed by the dispensing
16organization and may reevaluate its prior decision regarding
17the awarding of a Conditional Adult Use Dispensing
18Organization License, including, but not limited to,
19suspending or permanently revoking a Conditional Adult Use
20Dispensing Organization License. Failure to comply with the
21conditions or requirements in the application may subject the
22dispensing organization to discipline up to and including
23suspension or permanent revocation of its authorization or
24Conditional Adult Use Dispensing Organization License by the
25Department.
26    (l) If an applicant has not begun operating as a

 

 

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1dispensing organization within one year after the issuance of
2the Conditional Adult Use Dispensing Organization License
3under this Section, the Department may permanently revoke the
4Conditional Adult Use Dispensing Organization License and
5award it to the next highest scoring applicant in the BLS
6Region if a suitable applicant indicates a continued interest
7in the Conditional Adult Use Dispensing Organization License
8or may begin a new selection process to award a Conditional
9Adult Use Dispensing Organization License.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
11    (410 ILCS 705/15-35.10 new)
12    Sec. 15-35.10. Social Equity Justice Involved Lottery for
13Conditional Adult Use Dispensing Organization Licenses.
14    (a) In addition to any of the licenses issued under
15Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,
16or Section 15-35, within 10 business days after the resulting
17final scores for all scored applications pursuant to Sections
1815-25 and 15-30 are released, the Department shall issue up to
1955 Conditional Adult Use Dispensing Organization Licenses by
20lot, pursuant to the application process adopted under this
21Section. In order to be eligible to be awarded a Conditional
22Adult Use Dispensing Organization License by lot, a Dispensary
23Applicant must be a Qualifying Social Equity Justice Involved
24Applicant.
25    The licenses issued under this Section shall be awarded in

 

 

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1each BLS Region in the following amounts:
2        (1) Bloomington: 1.
3        (2) Cape Girardeau: 1.
4        (3) Carbondale-Marion: 1.
5        (4) Champaign-Urbana: 1.
6        (5) Chicago-Naperville-Elgin: 36.
7        (6) Danville: 1.
8        (7) Davenport-Moline-Rock Island: 1.
9        (8) Decatur: 1.
10        (9) Kankakee: 1.
11        (10) Peoria: 2.
12        (11) Rockford: 1.
13        (12) St. Louis: 3.
14        (13) Springfield: 1.
15        (14) Northwest Illinois nonmetropolitan: 1.
16        (15) West Central Illinois nonmetropolitan: 1.
17        (16) East Central Illinois nonmetropolitan: 1.
18        (17) South Illinois nonmetropolitan: 1.
19    (a-5) Prior to issuing licenses under subsection (a), the
20Department may adopt rules through emergency rulemaking in
21accordance with subsection (kk) of Section 5-45 of the
22Illinois Administrative Procedure Act. The General Assembly
23finds that the adoption of rules to regulate cannabis use is
24deemed an emergency and necessary for the public interest,
25safety, and welfare.
26    (b) The Department shall distribute the available licenses

 

 

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1established under this Section subject to the following:
2        (1) The drawing by lot for all available licenses
3    established under this Section shall occur on the same day
4    when practicable.
5        (2) Within each BLS Region, the first Qualifying
6    Social Equity Justice Involved Applicant drawn will have
7    the first right to an available license. The second
8    Qualifying Social Equity Justice Involved Applicant drawn
9    will have the second right to an available license. The
10    same pattern will continue for each subsequent applicant
11    drawn.
12        (3) The process for distributing available licenses
13    under this Section shall be recorded by the Department in
14    a format selected by the Department.
15        (4) A Dispensary Applicant is prohibited from becoming
16    a Qualifying Social Equity Justice Involved Applicant if a
17    principal officer resigns after the resulting final scores
18    for all scored applications pursuant to Sections 15-25 and
19    15-30 are released.
20        (5) No Qualifying Social Equity Justice Involved
21    Applicant may be awarded more than 2 Conditional Adult Use
22    Dispensing Organization Licenses at the conclusion of a
23    lottery conducted under this Section.
24        (6) No individual may be listed as a principal officer
25    of more than 2 Conditional Adult Use Dispensing
26    Organization Licenses awarded under this Section.

 

 

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1        (7) If, upon being selected for an available license
2    established under this Section, a Qualifying Social Equity
3    Justice Involved Applicant exceeds the limits under
4    paragraph (5) or (6), the Qualifying Social Equity Justice
5    Involved Applicant must choose which license to abandon
6    and notify the Department in writing within 5 business
7    days on forms prescribed by the Department. If the
8    Qualifying Social Equity Justice Involved Applicant does
9    not notify the Department as required, the Department
10    shall refuse to issue the Qualifying Social Equity Justice
11    Involved Applicant all available licenses established
12    under this Section obtained by lot in all BLS Regions.
13        (8) If, upon being selected for an available license
14    established under this Section, a Qualifying Social Equity
15    Justice Involved Applicant has a principal officer who is
16    a principal officer in more than 10 Early Approval Adult
17    Use Dispensing Organization Licenses, Conditional Adult
18    Use Dispensing Organization Licenses, Adult Use Dispensing
19    Organization Licenses, or any combination thereof, the
20    licensees and the Qualifying Social Equity Justice
21    Involved Applicant listing that principal officer must
22    choose which license to abandon pursuant to subsection (d)
23    of Section 15-36 and notify the Department in writing
24    within 5 business days on forms prescribed by the
25    Department. If the Dispensary Applicant or licensees do
26    not notify the Department as required, the Department

 

 

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1    shall refuse to issue the Qualifying Social Equity Justice
2    Involved Applicant all available licenses established
3    under this Section obtained by lot in all BLS Regions.
4        (9) All available licenses that have been abandoned
5    under paragraph (7) or (8) shall be distributed to the
6    next Qualifying Social Equity Justice Involved Applicant
7    drawn by lot.
8    Any and all rights conferred or obtained under this
9subsection shall be limited to the provisions of this
10subsection.
11    (c) An applicant who receives a Conditional Adult Use
12Dispensing Organization License under this Section has 180
13days from the date of the award to identify a physical location
14for the dispensing organization's retail storefront. The
15applicant shall provide evidence that the location is not
16within 1,500 feet of an existing dispensing organization,
17unless the applicant is a Social Equity Applicant or Social
18Equity Justice Involved Applicant located or seeking to locate
19within 1,500 feet of a dispensing organization licensed under
20Section 15-15 or Section 15-20. If an applicant is unable to
21find a suitable physical address in the opinion of the
22Department within 180 days from the issuance of the
23Conditional Adult Use Dispensing Organization License, the
24Department may extend the period for finding a physical
25address another 180 days if the Conditional Adult Use
26Dispensing Organization License holder demonstrates a concrete

 

 

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1attempt to secure a location and a hardship. If the Department
2denies the extension or the Conditional Adult Use Dispensing
3Organization License holder is unable to find a location or
4become operational within 360 days of being awarded a
5Conditional Adult Use Dispensing Organization License under
6this Section, the Department shall rescind the Conditional
7Adult Use Dispensing Organization License and award it
8pursuant to subsection (b) and notify the new awardee at the
9email address provided in the awardee's application, provided
10the applicant receiving the Conditional Adult Use Dispensing
11Organization License: (i) confirms a continued interest in
12operating a dispensing organization; (ii) can provide evidence
13that the applicant continues to meet all requirements for
14holding a Conditional Adult Use Dispensing Organization
15License set forth in this Act; and (iii) has not otherwise
16become ineligible to be awarded a Conditional Adult Use
17Dispensing Organization License. If the new awardee is unable
18to accept the Conditional Adult Use Dispensing Organization
19License, the Department shall award the Conditional Adult Use
20Dispensing Organization License pursuant to subsection (b).
21The new awardee shall be subject to the same required
22deadlines as provided in this subsection.
23    (d) If, within 180 days of being awarded a Conditional
24Adult Use Dispensing Organization License, a dispensing
25organization is unable to find a location within the BLS
26Region in which it was awarded a Conditional Adult Use

 

 

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1Dispensing Organization License under this Section because no
2jurisdiction within the BLS Region allows for the operation of
3an Adult Use Dispensing Organization, the Department may
4authorize the Conditional Adult Use Dispensing Organization
5License holder to transfer its Conditional Adult Use
6Dispensing Organization License to a BLS Region specified by
7the Department.
8    (e) A dispensing organization that is awarded a
9Conditional Adult Use Dispensing Organization License under
10this Section shall not purchase, possess, sell, or dispense
11cannabis or cannabis-infused products until the dispensing
12organization has received an Adult Use Dispensing Organization
13License issued by the Department pursuant to Section 15-36.
14    (f) The Department shall conduct a background check of the
15prospective dispensing organization agents in order to carry
16out this Article. The Illinois State Police shall charge the
17applicant a fee for conducting the criminal history record
18check, which shall be deposited into the State Police Services
19Fund and shall not exceed the actual cost of the record check.
20Each person applying as a dispensing organization agent shall
21submit a full set of fingerprints to the Illinois State Police
22for the purpose of obtaining a State and federal criminal
23records check. These fingerprints shall be checked against the
24fingerprint records now and hereafter, to the extent allowed
25by law, filed with the Illinois State Police and the Federal
26Bureau of Investigation criminal history records databases.

 

 

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1The Illinois State Police shall furnish, following positive
2identification, all Illinois conviction information to the
3Department.
4    (g) The Department may verify information contained in
5each application and accompanying documentation to assess the
6applicant's veracity and fitness to operate a dispensing
7organization.
8    (h) The Department may, in its discretion, refuse to issue
9an authorization to an applicant who meets any of the
10following criteria:
11        (1) An applicant who is unqualified to perform the
12    duties required of the applicant.
13        (2) An applicant who fails to disclose or states
14    falsely any information called for in the application.
15        (3) An applicant who has been found guilty of a
16    violation of this Act, who has had any disciplinary order
17    entered against the applicant by the Department, who has
18    entered into a disciplinary or nondisciplinary agreement
19    with the Department, whose medical cannabis dispensing
20    organization, medical cannabis cultivation organization,
21    Early Approval Adult Use Dispensing Organization License,
22    Early Approval Adult Use Dispensing Organization License
23    at a secondary site, Early Approval Cultivation Center
24    License, Conditional Adult Use Dispensing Organization
25    License, or Adult Use Dispensing Organization License was
26    suspended, restricted, revoked, or denied for just cause,

 

 

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1    or whose cannabis business establishment license was
2    suspended, restricted, revoked, or denied in any other
3    state.
4        (4) An applicant who has engaged in a pattern or
5    practice of unfair or illegal practices, methods, or
6    activities in the conduct of owning a cannabis business
7    establishment or other business.
8    (i) The Department shall deny the license if any principal
9officer, board member, or person having a financial or voting
10interest of 5% or greater in the licensee is delinquent in
11filing any required tax return or paying any amount owed to the
12State of Illinois.
13    (j) The Department shall verify an applicant's compliance
14with the requirements of this Article and rules adopted under
15this Article before issuing a Conditional Adult Use Dispensing
16Organization License.
17    (k) If an applicant is awarded a Conditional Adult Use
18Dispensing Organization License under this Section, the
19information and plans provided in the application, including
20any plans submitted for bonus points, shall become a condition
21of the Conditional Adult Use Dispensing Organization License
22and any Adult Use Dispensing Organization License issued to
23the holder of the Conditional Adult Use Dispensing
24Organization License, except as otherwise provided by this Act
25or by rule. Dispensing organizations have a duty to disclose
26any material changes to the application. The Department shall

 

 

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1review all material changes disclosed by the dispensing
2organization and may reevaluate its prior decision regarding
3the awarding of a Conditional Adult Use Dispensing
4Organization License, including, but not limited to,
5suspending or permanently revoking a Conditional Adult Use
6Dispensing Organization License. Failure to comply with the
7conditions or requirements in the application may subject the
8dispensing organization to discipline up to and including
9suspension or permanent revocation of its authorization or
10Conditional Adult Use Dispensing Organization License by the
11Department.
12    (l) If an applicant has not begun operating as a
13dispensing organization within one year after the issuance of
14the Conditional Adult Use Dispensing Organization License
15under this Section, the Department may permanently revoke the
16Conditional Adult Use Dispensing Organization License and
17award it to the next highest scoring applicant in the BLS
18Region if a suitable applicant indicates a continued interest
19in the Conditional Adult Use Dispensing Organization License
20or may begin a new selection process to award a Conditional
21Adult Use Dispensing Organization License.
 
22    (410 ILCS 705/15-35.20 new)
23    Sec. 15-35.20. Conditional Adult Use Dispensing
24Organization Licenses on or after January 1, 2022.
25    (a) In addition to any of the licenses issued under

 

 

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1Section 15-15, Section 15-20, Section 15-25, Section 15-35, or
2Section 15-35.10, by January 1, 2022, the Department may
3publish an application to issue additional Conditional Adult
4Use Dispensing Organization Licenses, pursuant to the
5application process adopted under this Section. The Department
6may adopt rules to issue any Conditional Adult Use Dispensing
7Organization Licenses under this Section. Such rules may:
8        (1) Modify or change the BLS Regions as they apply to
9    this Article or modify or raise the number of Adult
10    Conditional Use Dispensing Organization Licenses assigned
11    to each BLS Region based on the following factors:
12            (A) Purchaser wait times.
13            (B) Travel time to the nearest dispensary for
14        potential purchasers.
15            (C) Percentage of cannabis sales occurring in
16        Illinois not in the regulated market using data from
17        the Substance Abuse and Mental Health Services
18        Administration, National Survey on Drug Use and
19        Health, Illinois Behavioral Risk Factor Surveillance
20        System, and tourism data from the Illinois Office of
21        Tourism to ascertain total cannabis consumption in
22        Illinois compared to the amount of sales in licensed
23        dispensing organizations.
24            (D) Whether there is an adequate supply of
25        cannabis and cannabis-infused products to serve
26        registered medical cannabis patients.

 

 

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1            (E) Population increases or shifts.
2            (F) Density of dispensing organizations in a
3        region.
4            (G) The Department's capacity to appropriately
5        regulate additional licenses.
6            (H) The findings and recommendations from the
7        disparity and availability study commissioned by the
8        Illinois Cannabis Regulation Oversight Officer in
9        subsection (e) of Section 5-45 to reduce or eliminate
10        any identified barriers to entry in the cannabis
11        industry.
12            (I) Any other criteria the Department deems
13        relevant.
14        (2) Modify or change the licensing application process
15    to reduce or eliminate the barriers identified in the
16    disparity and availability study commissioned by the
17    Illinois Cannabis Regulation Oversight Officer and make
18    modifications to remedy evidence of discrimination.
19    (b) At no time shall the Department issue more than 500
20Adult Use Dispensing Organization Licenses.
21    (c) The Department shall issue at least 50 additional
22Conditional Adult Use Dispensing Organization Licenses on or
23before December 21, 2022.
 
24    (410 ILCS 705/15-40)
25    Sec. 15-40. Dispensing organization agent identification

 

 

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1card; agent training.
2    (a) The Department shall:
3        (1) verify the information contained in an application
4    or renewal for a dispensing organization agent
5    identification card submitted under this Article, and
6    approve or deny an application or renewal, within 30 days
7    of receiving a completed application or renewal
8    application and all supporting documentation required by
9    rule;
10        (2) issue a dispensing organization agent
11    identification card to a qualifying agent within 15
12    business days of approving the application or renewal;
13        (3) enter the registry identification number of the
14    dispensing organization where the agent works;
15        (4) within one year from the effective date of this
16    Act, allow for an electronic application process and
17    provide a confirmation by electronic or other methods that
18    an application has been submitted; and
19        (5) collect a $100 nonrefundable fee from the
20    applicant to be deposited into the Cannabis Regulation
21    Fund.
22    (b) A dispensing organization agent must keep his or her
23identification card visible at all times when in the
24dispensary.
25    (c) The dispensing organization agent identification cards
26shall contain the following:

 

 

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1        (1) the name of the cardholder;
2        (2) the date of issuance and expiration date of the
3    dispensing organization agent identification cards;
4        (3) a random 10-digit alphanumeric identification
5    number containing at least 4 numbers and at least 4
6    letters that is unique to the cardholder; and
7        (4) a photograph of the cardholder.
8    (d) The dispensing organization agent identification cards
9shall be immediately returned to the dispensing organization
10upon termination of employment.
11    (e) The Department shall not issue an agent identification
12card if the applicant is delinquent in filing any required tax
13returns or paying any amounts owed to the State of Illinois.
14    (f) Any card lost by a dispensing organization agent shall
15be reported to the Department of State Police and the
16Department immediately upon discovery of the loss.
17    (g) An applicant shall be denied a dispensing organization
18agent identification card renewal if he or she fails to
19complete the training provided for in this Section.
20    (h) A dispensing organization agent shall only be required
21to hold one card for the same employer regardless of what type
22of dispensing organization license the employer holds.
23    (i) Cannabis retail sales training requirements.
24        (1) Within 90 days of September 1, 2019, or 90 days of
25    employment, whichever is later, all owners, managers,
26    employees, and agents involved in the handling or sale of

 

 

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1    cannabis or cannabis-infused product employed by an adult
2    use dispensing organization or medical cannabis dispensing
3    organization as defined in Section 10 of the Compassionate
4    Use of Medical Cannabis Program Act shall attend and
5    successfully complete a Responsible Vendor Program.
6        (2) Each owner, manager, employee, and agent of an
7    adult use dispensing organization or medical cannabis
8    dispensing organization shall successfully complete the
9    program annually.
10        (3) Responsible Vendor Program Training modules shall
11    include at least 2 hours of instruction time approved by
12    the Department including:
13            (i) Health and safety concerns of cannabis use,
14        including the responsible use of cannabis, its
15        physical effects, onset of physiological effects,
16        recognizing signs of impairment, and appropriate
17        responses in the event of overconsumption.
18            (ii) Training on laws and regulations on driving
19        while under the influence and operating a watercraft
20        or snowmobile while under the influence.
21            (iii) Sales to minors prohibition. Training shall
22        cover all relevant Illinois laws and rules.
23            (iv) Quantity limitations on sales to purchasers.
24        Training shall cover all relevant Illinois laws and
25        rules.
26            (v) Acceptable forms of identification. Training

 

 

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1        shall include:
2                (I) How to check identification; and
3                (II) Common mistakes made in verification;
4            (vi) Safe storage of cannabis;
5            (vii) Compliance with all inventory tracking
6        system regulations;
7            (viii) Waste handling, management, and disposal;
8            (ix) Health and safety standards;
9            (x) Maintenance of records;
10            (xi) Security and surveillance requirements;
11            (xii) Permitting inspections by State and local
12        licensing and enforcement authorities;
13            (xiii) Privacy issues;
14            (xiv) Packaging and labeling requirement for sales
15        to purchasers; and
16            (xv) Other areas as determined by rule.
17    (j) Blank.
18    (k) Upon the successful completion of the Responsible
19Vendor Program, the provider shall deliver proof of completion
20either through mail or electronic communication to the
21dispensing organization, which shall retain a copy of the
22certificate.
23    (l) The license of a dispensing organization or medical
24cannabis dispensing organization whose owners, managers,
25employees, or agents fail to comply with this Section may be
26suspended or permanently revoked under Section 15-145 or may

 

 

HB1443 Engrossed- 135 -LRB102 03459 BMS 13472 b

1face other disciplinary action.
2    (m) The regulation of dispensing organization and medical
3cannabis dispensing employer and employee training is an
4exclusive function of the State, and regulation by a unit of
5local government, including a home rule unit, is prohibited.
6This subsection (m) is a denial and limitation of home rule
7powers and functions under subsection (h) of Section 6 of
8Article VII of the Illinois Constitution.
9    (n) Persons seeking Department approval to offer the
10training required by paragraph (3) of subsection (i) may apply
11for such approval between August 1 and August 15 of each
12odd-numbered year in a manner prescribed by the Department.
13    (o) Persons seeking Department approval to offer the
14training required by paragraph (3) of subsection (i) shall
15submit a nonrefundable application fee of $2,000 to be
16deposited into the Cannabis Regulation Fund or a fee as may be
17set by rule. Any changes made to the training module shall be
18approved by the Department.
19    (p) The Department shall not unreasonably deny approval of
20a training module that meets all the requirements of paragraph
21(3) of subsection (i). A denial of approval shall include a
22detailed description of the reasons for the denial.
23    (q) Any person approved to provide the training required
24by paragraph (3) of subsection (i) shall submit an application
25for re-approval between August 1 and August 15 of each
26odd-numbered year and include a nonrefundable application fee

 

 

HB1443 Engrossed- 136 -LRB102 03459 BMS 13472 b

1of $2,000 to be deposited into the Cannabis Regulation Fund or
2a fee as may be set by rule.
3    (r) All persons applying to become or renewing their
4registrations to be agents, including agents-in-charge and
5principal officers, shall disclose any disciplinary action
6taken against them that may have occurred in Illinois, another
7state, or another country in relation to their employment at a
8cannabis business establishment or at any cannabis cultivation
9center, processor, infuser, dispensary, or other cannabis
10business establishment.
11    (s) An agent applicant may begin employment at a
12dispensing organization while the agent applicant's
13identification card application is pending. Upon approval, the
14Department shall issue the agent's identification card to the
15agent. If denied, the dispensing organization and the agent
16applicant shall be notified and the agent applicant must cease
17all activity at the dispensing organization immediately.
18(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
19    (410 ILCS 705/15-70)
20    Sec. 15-70. Operational requirements; prohibitions.
21    (a) A dispensing organization shall operate in accordance
22with the representations made in its application and license
23materials. It shall be in compliance with this Act and rules.
24    (b) A dispensing organization must include the legal name
25of the dispensary on the packaging of any cannabis product it

 

 

HB1443 Engrossed- 137 -LRB102 03459 BMS 13472 b

1sells.
2    (c) All cannabis, cannabis-infused products, and cannabis
3seeds must be obtained from an Illinois registered adult use
4cultivation center, craft grower, infuser, or another
5dispensary.
6    (d) Dispensing organizations are prohibited from selling
7any product containing alcohol except tinctures, which must be
8limited to containers that are no larger than 100 milliliters.
9    (e) A dispensing organization shall inspect and count
10product received from a transporting organization, adult use
11cultivation center, craft grower, infuser organization, or
12other dispensing organization before dispensing it.
13    (f) A dispensing organization may only accept cannabis
14deliveries into a restricted access area. Deliveries may not
15be accepted through the public or limited access areas unless
16otherwise approved by the Department.
17    (g) A dispensing organization shall maintain compliance
18with State and local building, fire, and zoning requirements
19or regulations.
20    (h) A dispensing organization shall submit a list to the
21Department of the names of all service professionals that will
22work at the dispensary. The list shall include a description
23of the type of business or service provided. Changes to the
24service professional list shall be promptly provided. No
25service professional shall work in the dispensary until the
26name is provided to the Department on the service professional

 

 

HB1443 Engrossed- 138 -LRB102 03459 BMS 13472 b

1list.
2    (i) A dispensing organization's license allows for a
3dispensary to be operated only at a single location.
4    (j) A dispensary may operate between 6 a.m. and 10 p.m.
5local time.
6    (k) A dispensing organization must keep all lighting
7outside and inside the dispensary in good working order and
8wattage sufficient for security cameras.
9    (l) A dispensing organization must keep all air treatment
10systems that will be installed to reduce odors in good working
11order.
12    (m) A dispensing organization must contract with a private
13security contractor that is licensed under Section 10-5 of the
14Private Detective, Private Alarm, Private Security,
15Fingerprint Vendor, and Locksmith Act of 2004 to provide
16on-site security at all hours of the dispensary's operation.
17    (n) A dispensing organization shall ensure that any
18building or equipment used by a dispensing organization for
19the storage or sale of cannabis is maintained in a clean and
20sanitary condition.
21    (o) The dispensary shall be free from infestation by
22insects, rodents, or pests.
23    (p) A dispensing organization shall not:
24        (1) Produce or manufacture cannabis;
25        (2) Accept a cannabis product from an adult use
26    cultivation center, craft grower, infuser, dispensing

 

 

HB1443 Engrossed- 139 -LRB102 03459 BMS 13472 b

1    organization, or transporting organization unless it is
2    pre-packaged and labeled in accordance with this Act and
3    any rules that may be adopted pursuant to this Act;
4        (3) Obtain cannabis or cannabis-infused products from
5    outside the State of Illinois;
6        (4) Sell cannabis or cannabis-infused products to a
7    purchaser unless the dispensing organization is licensed
8    under the Compassionate Use of Medical Cannabis Program
9    Act, and the individual is registered under the
10    Compassionate Use of Medical Cannabis Program or the
11    purchaser has been verified to be 21 years of age or older;
12        (5) Enter into an exclusive agreement with any adult
13    use cultivation center, craft grower, or infuser.
14    Dispensaries shall provide consumers an assortment of
15    products from various cannabis business establishment
16    licensees such that the inventory available for sale at
17    any dispensary from any single cultivation center, craft
18    grower, processor, transporter, or infuser entity shall
19    not be more than 40% of the total inventory available for
20    sale. For the purpose of this subsection, a cultivation
21    center, craft grower, processor, or infuser shall be
22    considered part of the same entity if the licensees share
23    at least one principal officer. The Department may request
24    that a dispensary diversify its products as needed or
25    otherwise discipline a dispensing organization for
26    violating this requirement;

 

 

HB1443 Engrossed- 140 -LRB102 03459 BMS 13472 b

1        (6) Refuse to conduct business with an adult use
2    cultivation center, craft grower, transporting
3    organization, or infuser that has the ability to properly
4    deliver the product and is permitted by the Department of
5    Agriculture, on the same terms as other adult use
6    cultivation centers, craft growers, infusers, or
7    transporters with whom it is dealing;
8        (7) Operate drive-through windows;
9        (8) Allow for the dispensing of cannabis or
10    cannabis-infused products in vending machines;
11        (9) Transport cannabis to residences or other
12    locations where purchasers may be for delivery;
13        (10) Enter into agreements to allow persons who are
14    not dispensing organization agents to deliver cannabis or
15    to transport cannabis to purchasers;
16        (11) Operate a dispensary if its video surveillance
17    equipment is inoperative;
18        (12) Operate a dispensary if the point-of-sale
19    equipment is inoperative;
20        (13) Operate a dispensary if the State's cannabis
21    electronic verification system is inoperative;
22        (14) Have fewer than 2 people working at the
23    dispensary at any time while the dispensary is open;
24        (15) Be located within 1,500 feet of the property line
25    of a pre-existing dispensing organization, unless the
26    applicant is a Social Equity Applicant or Social Equity

 

 

HB1443 Engrossed- 141 -LRB102 03459 BMS 13472 b

1    Justice Involved Applicant located or seeking to locate
2    within 1,500 feet of a dispensing organization licensed
3    under Section 15-15 or Section 15-20;
4        (16) Sell clones or any other live plant material;
5        (17) Sell cannabis, cannabis concentrate, or
6    cannabis-infused products in combination or bundled with
7    each other or any other items for one price, and each item
8    of cannabis, concentrate, or cannabis-infused product must
9    be separately identified by quantity and price on the
10    receipt;
11        (18) Violate any other requirements or prohibitions
12    set by Department rules.
13    (q) It is unlawful for any person having an Early Approval
14Adult Use Cannabis Dispensing Organization License, a
15Conditional Adult Use Cannabis Dispensing Organization, an
16Adult Use Dispensing Organization License, or a medical
17cannabis dispensing organization license issued under the
18Compassionate Use of Medical Cannabis Program Act or any
19officer, associate, member, representative, or agent of such
20licensee to accept, receive, or borrow money or anything else
21of value or accept or receive credit (other than merchandising
22credit in the ordinary course of business for a period not to
23exceed 30 days) directly or indirectly from any adult use
24cultivation center, craft grower, infuser, or transporting
25organization in exchange for preferential placement on the
26dispensing organization's shelves, display cases, or website.

 

 

HB1443 Engrossed- 142 -LRB102 03459 BMS 13472 b

1This includes anything received or borrowed or from any
2stockholders, officers, agents, or persons connected with an
3adult use cultivation center, craft grower, infuser, or
4transporting organization.
5    (r) It is unlawful for any person having an Early Approval
6Adult Use Cannabis Dispensing Organization License, a
7Conditional Adult Use Cannabis Dispensing Organization, an
8Adult Use Dispensing Organization License, or a medical
9cannabis dispensing organization license issued under the
10Compassionate Use of Medical Cannabis Program to enter into
11any contract with any person licensed to cultivate, process,
12or transport cannabis whereby such dispensing organization
13agrees not to sell any cannabis cultivated, processed,
14transported, manufactured, or distributed by any other
15cultivator, transporter, or infuser, and any provision in any
16contract violative of this Section shall render the whole of
17such contract void and no action shall be brought thereon in
18any court.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/15-85)
21    Sec. 15-85. Dispensing cannabis.
22    (a) Before a dispensing organization agent dispenses
23cannabis to a purchaser, the agent shall:
24        (1) Verify the age of the purchaser by checking a
25    government-issued identification card by use of an

 

 

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1    electronic reader or electronic scanning device to scan a
2    purchaser's government-issued identification, if
3    applicable, to determine the purchaser's age and the
4    validity of the identification;
5        (2) Verify the validity of the government-issued
6    identification card by use of an electronic reader or
7    electronic scanning device to scan a purchaser's
8    government-issued identification, if applicable, to
9    determine the purchaser's age and the validity of the
10    identification;
11        (3) Offer any appropriate purchaser education or
12    support materials;
13        (4) Enter the following information into the State's
14    cannabis electronic verification system:
15            (i) The dispensing organization agent's
16        identification number, or if the agent's card
17        application is pending the Department's approval, a
18        temporary and unique identifier until the agent's card
19        application is approved or denied by the Department;
20            (ii) The dispensing organization's identification
21        number;
22            (iii) The amount, type (including strain, if
23        applicable) of cannabis or cannabis-infused product
24        dispensed;
25            (iv) The date and time the cannabis was dispensed.
26    (b) A dispensing organization shall refuse to sell

 

 

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1cannabis or cannabis-infused products to any person unless the
2person produces a valid identification showing that the person
3is 21 years of age or older. A medical cannabis dispensing
4organization may sell cannabis or cannabis-infused products to
5a person who is under 21 years of age if the sale complies with
6the provisions of the Compassionate Use of Medical Cannabis
7Program Act and rules.
8    (c) For the purposes of this Section, valid identification
9must:
10        (1) Be valid and unexpired;
11        (2) Contain a photograph and the date of birth of the
12    person.
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
14    (410 ILCS 705/15-135)
15    Sec. 15-135. Investigations.
16    (a) Dispensing organizations are subject to random and
17unannounced dispensary inspections and cannabis testing by the
18Department, the Department of State Police, and local law
19enforcement, or as provided by rule.
20    (b) The Department and its authorized representatives may
21enter any place, including a vehicle, in which cannabis is
22held, stored, dispensed, sold, produced, delivered,
23transported, manufactured, or disposed of and inspect, in a
24reasonable manner, the place and all pertinent equipment,
25containers and labeling, and all things including records,

 

 

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1files, financial data, sales data, shipping data, pricing
2data, personnel data, research, papers, processes, controls,
3and facility, and inventory any stock of cannabis and obtain
4samples of any cannabis or cannabis-infused product, any
5labels or containers for cannabis, or paraphernalia.
6    (c) The Department may conduct an investigation of an
7applicant, application, dispensing organization, principal
8officer, dispensary agent, third party vendor, or any other
9party associated with a dispensing organization for an alleged
10violation of this Act or rules or to determine qualifications
11to be granted a registration by the Department.
12    (d) The Department may require an applicant or holder of
13any license issued pursuant to this Article to produce
14documents, records, or any other material pertinent to the
15investigation of an application or alleged violations of this
16Act or rules. Failure to provide the required material may be
17grounds for denial or discipline.
18    (e) Every person charged with preparation, obtaining, or
19keeping records, logs, reports, or other documents in
20connection with this Act and rules and every person in charge,
21or having custody, of those documents shall, upon request by
22the Department, make the documents immediately available for
23inspection and copying by the Department, the Department's
24authorized representative, or others authorized by law to
25review the documents.
26(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/20-30)
2    Sec. 20-30. Cultivation center requirements; prohibitions.
3    (a) The operating documents of a cultivation center shall
4include procedures for the oversight of the cultivation center
5a cannabis plant monitoring system including a physical
6inventory recorded weekly, accurate recordkeeping, and a
7staffing plan.
8    (b) A cultivation center shall implement a security plan
9reviewed by the Department of State Police that includes, but
10is not limited to: facility access controls, perimeter
11intrusion detection systems, personnel identification systems,
1224-hour surveillance system to monitor the interior and
13exterior of the cultivation center facility and accessibility
14to authorized law enforcement, the Department of Public Health
15where processing takes place, and the Department of
16Agriculture in real time.
17    (c) All cultivation of cannabis by a cultivation center
18must take place in an enclosed, locked facility at the
19physical address provided to the Department of Agriculture
20during the licensing process. The cultivation center location
21shall only be accessed by the agents working for the
22cultivation center, the Department of Agriculture staff
23performing inspections, the Department of Public Health staff
24performing inspections, local and State law enforcement or
25other emergency personnel, contractors working on jobs

 

 

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1unrelated to cannabis, such as installing or maintaining
2security devices or performing electrical wiring, transporting
3organization agents as provided in this Act, individuals in a
4mentoring or educational program approved by the State, or
5other individuals as provided by rule.
6    (d) A cultivation center may not sell or distribute any
7cannabis or cannabis-infused products to any person other than
8a dispensing organization, craft grower, infuser organization,
9transporter, or as otherwise authorized by rule.
10    (e) A cultivation center may not either directly or
11indirectly discriminate in price between different dispensing
12organizations, craft growers, or infuser organizations that
13are purchasing a like grade, strain, brand, and quality of
14cannabis or cannabis-infused product. Nothing in this
15subsection (e) prevents a cultivation centers from pricing
16cannabis differently based on differences in the cost of
17manufacturing or processing, the quantities sold, such as
18volume discounts, or the way the products are delivered.
19    (f) All cannabis harvested by a cultivation center and
20intended for distribution to a dispensing organization must be
21entered into a data collection system, packaged and labeled
22under Section 55-21, and placed into a cannabis container for
23transport. All cannabis harvested by a cultivation center and
24intended for distribution to a craft grower or infuser
25organization must be packaged in a labeled cannabis container
26and entered into a data collection system before transport.

 

 

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1    (g) Cultivation centers are subject to random inspections
2by the Department of Agriculture, the Department of Public
3Health, local safety or health inspectors, and the Department
4of State Police, or as provided by rule.
5    (h) A cultivation center agent shall notify local law
6enforcement, the Department of State Police, and the
7Department of Agriculture within 24 hours of the discovery of
8any loss or theft. Notification shall be made by phone or in
9person, or by written or electronic communication.
10    (i) A cultivation center shall comply with all State and
11any applicable federal rules and regulations regarding the use
12of pesticides on cannabis plants.
13    (j) No person or entity shall hold any legal, equitable,
14ownership, or beneficial interest, directly or indirectly, of
15more than 3 cultivation centers licensed under this Article.
16Further, no person or entity that is employed by, an agent of,
17has a contract to receive payment in any form from a
18cultivation center, is a principal officer of a cultivation
19center, or entity controlled by or affiliated with a principal
20officer of a cultivation shall hold any legal, equitable,
21ownership, or beneficial interest, directly or indirectly, in
22a cultivation that would result in the person or entity owning
23or controlling in combination with any cultivation center,
24principal officer of a cultivation center, or entity
25controlled or affiliated with a principal officer of a
26cultivation center by which he, she, or it is employed, is an

 

 

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1agent of, or participates in the management of, more than 3
2cultivation center licenses.
3    (k) A cultivation center may not contain more than 210,000
4square feet of canopy space for plants in the flowering stage
5for cultivation of adult use cannabis as provided in this Act.
6    (l) A cultivation center may process cannabis, cannabis
7concentrates, and cannabis-infused products.
8    (m) Beginning July 1, 2020, a cultivation center shall not
9transport cannabis or cannabis-infused products to a craft
10grower, dispensing organization, infuser organization, or
11laboratory licensed under this Act, unless it has obtained a
12transporting organization license.
13    (n) It is unlawful for any person having a cultivation
14center license or any officer, associate, member,
15representative, or agent of such licensee to offer or deliver
16money, or anything else of value, directly or indirectly to
17any person having an Early Approval Adult Use Dispensing
18Organization License, a Conditional Adult Use Dispensing
19Organization License, an Adult Use Dispensing Organization
20License, or a medical cannabis dispensing organization license
21issued under the Compassionate Use of Medical Cannabis Program
22Act, or to any person connected with or in any way
23representing, or to any member of the family of, such person
24holding an Early Approval Adult Use Dispensing Organization
25License, a Conditional Adult Use Dispensing Organization
26License, an Adult Use Dispensing Organization License, or a

 

 

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1medical cannabis dispensing organization license issued under
2the Compassionate Use of Medical Cannabis Program Act, or to
3any stockholders in any corporation engaged in the retail sale
4of cannabis, or to any officer, manager, agent, or
5representative of the Early Approval Adult Use Dispensing
6Organization License, a Conditional Adult Use Dispensing
7Organization License, an Adult Use Dispensing Organization
8License, or a medical cannabis dispensing organization license
9issued under the Compassionate Use of Medical Cannabis Program
10Act to obtain preferential placement within the dispensing
11organization, including, without limitation, on shelves and in
12display cases where purchasers can view products, or on the
13dispensing organization's website.
14    (o) A cultivation center must comply with any other
15requirements or prohibitions set by administrative rule of the
16Department of Agriculture.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/20-55 new)
19    Sec. 20-55. Disclosure of ownership and control.
20    (a) Each Adult Use Cultivation Center applicant and
21license holder shall file and maintain a Table of
22Organization, Ownership, and Control with the Department. The
23Table of Organization, Ownership, and Control shall contain
24the information required by this Section in sufficient detail
25to identify all owners, directors, and principal officers, and

 

 

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1the title of each principal officer or business entity that,
2through direct or indirect means, manages, owns, or controls
3the applicant or license holder.
4    (b) The Table of Organization, Ownership, and Control
5shall identify the following information:
6        (1) The management structure, ownership, and control
7    of the applicant or license holder including the name of
8    each principal officer or business entity, the office or
9    position held, and the percentage ownership interest, if
10    any. If the business entity has a parent company, the name
11    of each owner, board member, and officer of the parent
12    company and his or her percentage ownership interest in
13    the parent company and the Adult Use Cultivation Center.
14        (2) If the applicant or licensee is a business entity
15    with publicly traded stock, the identification of
16    ownership shall be provided as required in subsection (c).
17    (c) If a business entity identified in subsection (b) is a
18publicly traded company, the following information shall be
19provided in the Table of Organization, Ownership, and Control:
20        (1) The name and percentage of ownership interest of
21    each individual or business entity with ownership of more
22    than 5% of the voting shares of the entity, to the extent
23    such information is known or contained in 13D or 13G
24    Securities and Exchange Commission filings.
25        (2) To the extent known, the names and percentage of
26    interest of ownership of persons who are relatives of one

 

 

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1    another and who together exercise control over or own more
2    than 10% of the voting shares of the entity.
3    (d) An Adult Use Cultivation Center with a parent company
4or companies, or partially owned or controlled by another
5entity must disclose to the Department the relationship and
6all owners, board members, officers, or individuals with
7control or management of those entities. An Adult Use
8Cultivation Center shall not shield its ownership or control
9from the Department.
10    (e) All principal officers must submit a complete online
11application with the Department within 14 days of the Adult
12Use Cultivation Center being licensed by the Department or
13within 14 days of Department notice of approval as a new
14principal officer.
15    (f) A principal officer may not allow his or her
16registration to expire.
17    (g) An Adult Use Cultivation Center separating with a
18principal officer must do so under this Act. The principal
19officer must communicate the separation to the Department
20within 5 business days.
21    (h) A principal officer not in compliance with the
22requirements of this Act shall be removed from his or her
23position with the Adult Use Cultivation Center or shall
24otherwise terminate his or her affiliation. Failure to do so
25may subject the Adult Use Cultivation Center to discipline,
26suspension, or revocation of its license by the Department.

 

 

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1    (i) It is the responsibility of the Adult Use Cultivation
2Center and its principal officers to promptly notify the
3Department of any change of the principal place of business
4address, hours of operation, change in ownership or control,
5or a change of the Adult Use Cultivation Center's primary or
6secondary contact information. Any changes must be made to the
7Department in writing.
 
8    (410 ILCS 705/25-5)
9    (Section scheduled to be repealed on July 1, 2026)
10    Sec. 25-5. Administration.
11    (a) The Department shall establish and administer the
12Program in coordination with the Illinois Community College
13Board. The Department may issue up to 8 Program licenses to
14applicants that meet the requirements outlined in this Article
15by September 1, 2020.
16    (b) Beginning with the 2021-2022 academic year, and
17subject to subsection (h) of Section 2-12 of the Public
18Community College Act, community colleges awarded Program
19licenses may offer qualifying students a Career in Cannabis
20Certificate, which includes, but is not limited to, courses
21that allow participating students to work with, study, and
22grow live cannabis plants so as to prepare students for a
23career in the legal cannabis industry, and to instruct
24participating students on the best business practices,
25professional responsibility, and legal compliance of the

 

 

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1cannabis business industry.
2    (c) The Board may issue rules pertaining to the provisions
3in this Act.
4    (d) Notwithstanding any other provision of this Act,
5students shall be at least 18 years old in order to enroll in a
6licensee's Career in Cannabis Certificate's prescribed course
7of study.
8(Source: P.A. 101-27, eff. 6-25-19.)
 
9    (410 ILCS 705/25-30)
10    (Section scheduled to be repealed on July 1, 2026)
11    Sec. 25-30. Inspection rights.
12    (a) A licensee's enclosed, locked facilities are subject
13to random inspections by the Department, and the Department of
14State Police, or as provided by rule.
15    (b) Nothing in this Section shall be construed to give the
16Department, or the Department of State Police, or any other
17entity identified by rule under subsection (a) a right of
18inspection or access to any location on the licensee's
19premises beyond the facilities licensed under this Article.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/25-35)
22    (Section scheduled to be repealed on July 1, 2026)
23    Sec. 25-35. Community College Cannabis Vocational Training
24Pilot Program faculty participant agent identification card.

 

 

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1    (a) The Department shall:
2        (1) establish by rule the information required in an
3    initial application or renewal application for an agent
4    identification card submitted under this Article and the
5    nonrefundable fee to accompany the initial application or
6    renewal application;
7        (2) verify the information contained in an initial
8    application or renewal application for an agent
9    identification card submitted under this Article, and
10    approve or deny an application within 30 days of receiving
11    a completed initial application or renewal application and
12    all supporting documentation required by rule;
13        (3) issue an agent identification card to a qualifying
14    agent within 15 business days of approving the initial
15    application or renewal application;
16        (4) enter the license number of the community college
17    where the agent works; and
18        (5) allow for an electronic initial application and
19    renewal application process, and provide a confirmation by
20    electronic or other methods that an application has been
21    submitted. Each Department may by rule require prospective
22    agents to file their applications by electronic means and
23    to provide notices to the agents by electronic means.
24    (b) An agent must keep his or her identification card
25visible at all times when in the enclosed, locked facility, or
26facilities for which he or she is an agent.

 

 

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1    (c) The agent identification cards shall contain the
2following:
3        (1) the name of the cardholder;
4        (2) the date of issuance and expiration date of the
5    identification card;
6        (3) a random 10-digit alphanumeric identification
7    number containing at least 4 numbers and at least 4
8    letters that is unique to the holder;
9        (4) a photograph of the cardholder; and
10        (5) the legal name of the community college employing
11    the agent.
12    (d) An agent identification card shall be immediately
13returned to the community college of the agent upon
14termination of his or her employment.
15    (e) Any agent identification card lost shall be reported
16to the Department of State Police and the Department of
17Agriculture immediately upon discovery of the loss.
18    (f) An agent applicant may begin employment at a Community
19College Cannabis Vocational Training Pilot Program while the
20agent applicant's identification card application is pending.
21Upon approval, the Department shall issue the agent's
22identification card to the agent. If denied, the Community
23College Cannabis Vocational Training Pilot Program and the
24agent applicant shall be notified and the agent applicant must
25cease all activity at the Community College Cannabis
26Vocational Training Pilot Program immediately.

 

 

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1(Source: P.A. 101-27, eff. 6-25-19.)
 
2    (410 ILCS 705/30-5)
3    Sec. 30-5. Issuance of licenses.
4    (a) The Department of Agriculture shall issue up to 40
5craft grower licenses by July 1, 2020. Any person or entity
6awarded a license pursuant to this subsection shall only hold
7one craft grower license and may not sell that license until
8after December 21, 2021.
9    (b) By December 21, 2021, the Department of Agriculture
10shall issue up to 60 additional craft grower licenses. Any
11person or entity awarded a license pursuant to this subsection
12shall not hold more than 2 craft grower licenses. The person or
13entity awarded a license pursuant to this subsection or
14subsection (a) of this Section may sell its craft grower
15license subject to the restrictions of this Act or as
16determined by administrative rule. Prior to issuing such
17licenses, the Department may adopt rules through emergency
18rulemaking in accordance with subsection (kk) (gg) of Section
195-45 of the Illinois Administrative Procedure Act, to modify
20or raise the number of craft grower licenses and modify or
21change the licensing application process to reduce or
22eliminate barriers. The General Assembly finds that the
23adoption of rules to regulate cannabis use is deemed an
24emergency and necessary for the public interest, safety, and
25welfare. In determining whether to exercise the authority

 

 

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1granted by this subsection, the Department of Agriculture must
2consider the following factors:
3        (1) the percentage of cannabis sales occurring in
4    Illinois not in the regulated market using data from the
5    Substance Abuse and Mental Health Services Administration,
6    National Survey on Drug Use and Health, Illinois
7    Behavioral Risk Factor Surveillance System, and tourism
8    data from the Illinois Office of Tourism to ascertain
9    total cannabis consumption in Illinois compared to the
10    amount of sales in licensed dispensing organizations;
11        (2) whether there is an adequate supply of cannabis
12    and cannabis-infused products to serve registered medical
13    cannabis patients;
14        (3) whether there is an adequate supply of cannabis
15    and cannabis-infused products to serve purchasers;
16        (4) whether there is an oversupply of cannabis in
17    Illinois leading to trafficking of cannabis to states
18    where the sale of cannabis is not permitted by law;
19        (5) population increases or shifts;
20        (6) the density of craft growers in any area of the
21    State;
22        (7) perceived security risks of increasing the number
23    or location of craft growers;
24        (8) the past safety record of craft growers;
25        (9) the Department of Agriculture's capacity to
26    appropriately regulate additional licensees;

 

 

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1        (10) (blank) the findings and recommendations from the
2    disparity and availability study commissioned by the
3    Illinois Cannabis Regulation Oversight Officer to reduce
4    or eliminate any identified barriers to entry in the
5    cannabis industry; and
6        (11) any other criteria the Department of Agriculture
7    deems relevant.
8    (c) After January 1, 2022, the Department of Agriculture
9may by rule modify or raise the number of craft grower licenses
10and modify or change the licensing application process to
11reduce or eliminate barriers based on the criteria in
12subsection (b). At no time may the number of craft grower
13licenses exceed 150. Any person or entity awarded a license
14pursuant to this subsection shall not hold more than 3 craft
15grower licenses. A person or entity awarded a license pursuant
16to this subsection or subsection (a) or subsection (b) of this
17Section may sell its craft grower license or licenses subject
18to the restrictions of this Act or as determined by
19administrative rule.
20    (d) Upon the completion of the disparity and availability
21study pertaining to craft growers by the Cannabis Regulation
22Oversight Officer pursuant to subsection (e) of Section 5-45,
23the Department may modify or change the licensing application
24process to reduce or eliminate barriers from and remedy
25evidence of discrimination identified in the disparity and
26availability study.

 

 

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1(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
2    (410 ILCS 705/30-30)
3    Sec. 30-30. Craft grower requirements; prohibitions.
4    (a) The operating documents of a craft grower shall
5include procedures for the oversight of the craft grower, a
6cannabis plant monitoring system including a physical
7inventory recorded weekly, accurate recordkeeping, and a
8staffing plan.
9    (b) A craft grower shall implement a security plan
10reviewed by the Department of State Police that includes, but
11is not limited to: facility access controls, perimeter
12intrusion detection systems, personnel identification systems,
13and a 24-hour surveillance system to monitor the interior and
14exterior of the craft grower facility and that is accessible
15to authorized law enforcement and the Department of
16Agriculture in real time.
17    (c) All cultivation of cannabis by a craft grower must
18take place in an enclosed, locked facility at the physical
19address provided to the Department of Agriculture during the
20licensing process. The craft grower location shall only be
21accessed by the agents working for the craft grower, the
22Department of Agriculture staff performing inspections, the
23Department of Public Health staff performing inspections,
24State and local law enforcement or other emergency personnel,
25contractors working on jobs unrelated to cannabis, such as

 

 

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1installing or maintaining security devices or performing
2electrical wiring, transporting organization agents as
3provided in this Act, or participants in the incubator
4program, individuals in a mentoring or educational program
5approved by the State, or other individuals as provided by
6rule. However, if a craft grower shares a premises with an
7infuser or dispensing organization, agents from those other
8licensees may access the craft grower portion of the premises
9if that is the location of common bathrooms, lunchrooms,
10locker rooms, or other areas of the building where work or
11cultivation of cannabis is not performed. At no time may an
12infuser or dispensing organization agent perform work at a
13craft grower without being a registered agent of the craft
14grower.
15    (d) A craft grower may not sell or distribute any cannabis
16to any person other than a cultivation center, a craft grower,
17an infuser organization, a dispensing organization, or as
18otherwise authorized by rule.
19    (e) A craft grower may not be located in an area zoned for
20residential use.
21    (f) A craft grower may not either directly or indirectly
22discriminate in price between different cannabis business
23establishments that are purchasing a like grade, strain,
24brand, and quality of cannabis or cannabis-infused product.
25Nothing in this subsection (f) prevents a craft grower from
26pricing cannabis differently based on differences in the cost

 

 

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1of manufacturing or processing, the quantities sold, such as
2volume discounts, or the way the products are delivered.
3    (g) All cannabis harvested by a craft grower and intended
4for distribution to a dispensing organization must be entered
5into a data collection system, packaged and labeled under
6Section 55-21, and, if distribution is to a dispensing
7organization that does not share a premises with the
8dispensing organization receiving the cannabis, placed into a
9cannabis container for transport. All cannabis harvested by a
10craft grower and intended for distribution to a cultivation
11center, to an infuser organization, or to a craft grower with
12which it does not share a premises, must be packaged in a
13labeled cannabis container and entered into a data collection
14system before transport.
15    (h) Craft growers are subject to random inspections by the
16Department of Agriculture, local safety or health inspectors,
17and the Department of State Police, or as provided by rule.
18    (i) A craft grower agent shall notify local law
19enforcement, the Department of State Police, and the
20Department of Agriculture within 24 hours of the discovery of
21any loss or theft. Notification shall be made by phone, in
22person, or written or electronic communication.
23    (j) A craft grower shall comply with all State and any
24applicable federal rules and regulations regarding the use of
25pesticides.
26    (k) A craft grower or craft grower agent shall not

 

 

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1transport cannabis or cannabis-infused products to any other
2cannabis business establishment without a transport
3organization license unless:
4        (i) If the craft grower is located in a county with a
5    population of 3,000,000 or more, the cannabis business
6    establishment receiving the cannabis is within 2,000 feet
7    of the property line of the craft grower;
8        (ii) If the craft grower is located in a county with a
9    population of more than 700,000 but fewer than 3,000,000,
10    the cannabis business establishment receiving the cannabis
11    is within 2 miles of the craft grower; or
12        (iii) If the craft grower is located in a county with a
13    population of fewer than 700,000, the cannabis business
14    establishment receiving the cannabis is within 15 miles of
15    the craft grower.
16    (l) A craft grower may enter into a contract with a
17transporting organization to transport cannabis to a
18cultivation center, a craft grower, an infuser organization, a
19dispensing organization, or a laboratory.
20    (m) No person or entity shall hold any legal, equitable,
21ownership, or beneficial interest, directly or indirectly, of
22more than 3 craft grower licenses. Further, no person or
23entity that is employed by, an agent of, or has a contract to
24receive payment from or participate in the management of a
25craft grower, is a principal officer of a craft grower, or
26entity controlled by or affiliated with a principal officer of

 

 

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1a craft grower shall hold any legal, equitable, ownership, or
2beneficial interest, directly or indirectly, in a craft grower
3license that would result in the person or entity owning or
4controlling in combination with any craft grower, principal
5officer of a craft grower, or entity controlled or affiliated
6with a principal officer of a craft grower by which he, she, or
7it is employed, is an agent of, or participates in the
8management of more than 3 craft grower licenses.
9    (n) It is unlawful for any person having a craft grower
10license or any officer, associate, member, representative, or
11agent of the licensee to offer or deliver money, or anything
12else of value, directly or indirectly, to any person having an
13Early Approval Adult Use Dispensing Organization License, a
14Conditional Adult Use Dispensing Organization License, an
15Adult Use Dispensing Organization License, or a medical
16cannabis dispensing organization license issued under the
17Compassionate Use of Medical Cannabis Program Act, or to any
18person connected with or in any way representing, or to any
19member of the family of, the person holding an Early Approval
20Adult Use Dispensing Organization License, a Conditional Adult
21Use Dispensing Organization License, an Adult Use Dispensing
22Organization License, or a medical cannabis dispensing
23organization license issued under the Compassionate Use of
24Medical Cannabis Program Act, or to any stockholders in any
25corporation engaged in the retail sale of cannabis, or to any
26officer, manager, agent, or representative of the Early

 

 

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1Approval Adult Use Dispensing Organization License, a
2Conditional Adult Use Dispensing Organization License, an
3Adult Use Dispensing Organization License, or a medical
4cannabis dispensing organization license issued under the
5Compassionate Use of Medical Cannabis Program Act to obtain
6preferential placement within the dispensing organization,
7including, without limitation, on shelves and in display cases
8where purchasers can view products, or on the dispensing
9organization's website.
10    (o) A craft grower shall not be located within 1,500 feet
11of another craft grower or a cultivation center.
12    (p) A craft grower may process cannabis, cannabis
13concentrates, and cannabis-infused products.
14    (q) A craft grower must comply with any other requirements
15or prohibitions set by administrative rule of the Department
16of Agriculture.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
18    (410 ILCS 705/30-55 new)
19    Sec. 30-55. Disclosure of ownership and control.
20    (a) Each craft grower applicant and licensee shall file
21and maintain a Table of Organization, Ownership, and Control
22with the Department. The Table of Organization, Ownership, and
23Control shall contain the information required by this Section
24in sufficient detail to identify all owners, directors, and
25principal officers, and the title of each principal officer or

 

 

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1business entity that, through direct or indirect means,
2manages, owns, or controls the applicant or licensee.
3    (b) The Table of Organization, Ownership and Control shall
4identify the following information:
5        (1) The management structure, ownership, and control
6    of the applicant or license holder including the name of
7    each principal officer or business entity, the office or
8    position held, and the percentage ownership interest, if
9    any. If the business entity has a parent company, the name
10    of each owner, board member, and officer of the parent
11    company and his or her percentage ownership interest in
12    the parent company and the craft grower.
13        (2) If the applicant or licensee is a business entity
14    with publicly traded stock, the identification of
15    ownership shall be provided as required in subsection (c).
16    (c) If a business entity identified in subsection (b) is a
17publicly traded company, the following information shall be
18provided in the Table of Organization, Ownership, and Control:
19        (1) The name and percentage of ownership interest of
20    each individual or business entity with ownership of more
21    than 5% of the voting shares of the entity, to the extent
22    such information is known or contained in 13D or 13G
23    Securities and Exchange Commission filings.
24        (2) To the extent known, the names and percentage of
25    interest of ownership of persons who are relatives of one
26    another and who together exercise control over or own more

 

 

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1    than 10% of the voting shares of the entity.
2    (d) A craft grower with a parent company or companies, or
3partially owned or controlled by another entity must disclose
4to the Department the relationship and all owners, board
5members, officers, or individuals with control or management
6of those entities. A craft grower shall not shield its
7ownership or control from the Department.
8    (e) All principal officers must submit a complete online
9application with the Department within 14 days of the craft
10grower being licensed by the Department or within 14 days of
11Department notice of approval as a new principal officer.
12    (f) A principal officer may not allow his or her
13registration to expire.
14    (g) A craft grower separating with a principal officer
15must do so under this Act. The principal officer must
16communicate the separation to the Department within 5 business
17days.
18    (h) A principal officer not in compliance with the
19requirements of this Act shall be removed from his or her
20position with the craft grower or shall otherwise terminate
21his or her affiliation. Failure to do so may subject the craft
22grower to discipline, suspension, or revocation of its license
23by the Department.
24    (i) It is the responsibility of the craft grower and its
25principal officers to promptly notify the Department of any
26change of the principal place of business address, hours of

 

 

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1operation, change in ownership or control, or a change of the
2craft grower's primary or secondary contact information. Any
3changes must be made to the Department in writing.
 
4    (410 ILCS 705/35-5)
5    Sec. 35-5. Issuance of licenses.
6    (a) The Department of Agriculture shall issue up to 40
7infuser licenses through a process provided for in this
8Article no later than July 1, 2020.
9    (b) The Department of Agriculture shall make the
10application for infuser licenses available on January 7, 2020,
11or if that date falls on a weekend or holiday, the business day
12immediately succeeding the weekend or holiday and every
13January 7 or succeeding business day thereafter, and shall
14receive such applications no later than March 15, 2020, or, if
15that date falls on a weekend or holiday, the business day
16immediately succeeding the weekend or holiday and every March
1715 or succeeding business day thereafter.
18    (c) By December 21, 2021, the Department of Agriculture
19may issue up to 60 additional infuser licenses. Prior to
20issuing such licenses, the Department may adopt rules through
21emergency rulemaking in accordance with subsection (kk) (gg)
22of Section 5-45 of the Illinois Administrative Procedure Act,
23to modify or raise the number of infuser licenses and modify or
24change the licensing application process to reduce or
25eliminate barriers. The General Assembly finds that the

 

 

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1adoption of rules to regulate cannabis use is deemed an
2emergency and necessary for the public interest, safety, and
3welfare.
4    In determining whether to exercise the authority granted
5by this subsection, the Department of Agriculture must
6consider the following factors:
7        (1) the percentage of cannabis sales occurring in
8    Illinois not in the regulated market using data from the
9    Substance Abuse and Mental Health Services Administration,
10    National Survey on Drug Use and Health, Illinois
11    Behavioral Risk Factor Surveillance System, and tourism
12    data from the Illinois Office of Tourism to ascertain
13    total cannabis consumption in Illinois compared to the
14    amount of sales in licensed dispensing organizations;
15        (2) whether there is an adequate supply of cannabis
16    and cannabis-infused products to serve registered medical
17    cannabis patients;
18        (3) whether there is an adequate supply of cannabis
19    and cannabis-infused products to serve purchasers;
20        (4) whether there is an oversupply of cannabis in
21    Illinois leading to trafficking of cannabis to any other
22    state;
23        (5) population increases or shifts;
24        (6) changes to federal law;
25        (7) perceived security risks of increasing the number
26    or location of infuser organizations;

 

 

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1        (8) the past security records of infuser
2    organizations;
3        (9) the Department of Agriculture's capacity to
4    appropriately regulate additional licenses;
5        (10) (blank) the findings and recommendations from the
6    disparity and availability study commissioned by the
7    Illinois Cannabis Regulation Oversight Officer to reduce
8    or eliminate any identified barriers to entry in the
9    cannabis industry; and
10        (11) any other criteria the Department of Agriculture
11    deems relevant.
12    (d) After January 1, 2022, the Department of Agriculture
13may by rule modify or raise the number of infuser licenses, and
14modify or change the licensing application process to reduce
15or eliminate barriers based on the criteria in subsection (c).
16    (e) Upon the completion of the disparity and availability
17study pertaining to infusers by the Cannabis Regulation
18Oversight Officer pursuant to subsection (e) of Section 5-45,
19the Department of Agriculture may modify or change the
20licensing application process to reduce or eliminate barriers
21and remedy evidence of discrimination identified in the study.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
23    (410 ILCS 705/35-25)
24    Sec. 35-25. Infuser organization requirements;
25prohibitions.

 

 

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1    (a) The operating documents of an infuser shall include
2procedures for the oversight of the infuser, an inventory
3monitoring system including a physical inventory recorded
4weekly, accurate recordkeeping, and a staffing plan.
5    (b) An infuser shall implement a security plan reviewed by
6the Department of State Police that includes, but is not
7limited to: facility access controls, perimeter intrusion
8detection systems, personnel identification systems, and a
924-hour surveillance system to monitor the interior and
10exterior of the infuser facility and that is accessible to
11authorized law enforcement, the Department of Public Health,
12and the Department of Agriculture in real time.
13    (c) All processing of cannabis by an infuser must take
14place in an enclosed, locked facility at the physical address
15provided to the Department of Agriculture during the licensing
16process. The infuser location shall only be accessed by the
17agents working for the infuser, the Department of Agriculture
18staff performing inspections, the Department of Public Health
19staff performing inspections, State and local law enforcement
20or other emergency personnel, contractors working on jobs
21unrelated to cannabis, such as installing or maintaining
22security devices or performing electrical wiring, transporting
23organization agents as provided in this Act, participants in
24the incubator program, individuals in a mentoring or
25educational program approved by the State, local safety or
26health inspectors, or other individuals as provided by rule.

 

 

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1However, if an infuser shares a premises with a craft grower or
2dispensing organization, agents from these other licensees may
3access the infuser portion of the premises if that is the
4location of common bathrooms, lunchrooms, locker rooms, or
5other areas of the building where processing of cannabis is
6not performed. At no time may a craft grower or dispensing
7organization agent perform work at an infuser without being a
8registered agent of the infuser.
9    (d) An infuser may not sell or distribute any cannabis to
10any person other than a dispensing organization, or as
11otherwise authorized by rule.
12    (e) An infuser may not either directly or indirectly
13discriminate in price between different cannabis business
14establishments that are purchasing a like grade, strain,
15brand, and quality of cannabis or cannabis-infused product.
16Nothing in this subsection (e) prevents an infuser from
17pricing cannabis differently based on differences in the cost
18of manufacturing or processing, the quantities sold, such
19volume discounts, or the way the products are delivered.
20    (f) All cannabis infused by an infuser and intended for
21distribution to a dispensing organization must be entered into
22a data collection system, packaged and labeled under Section
2355-21, and, if distribution is to a dispensing organization
24that does not share a premises with the infuser, placed into a
25cannabis container for transport. All cannabis produced by an
26infuser and intended for distribution to a cultivation center,

 

 

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1infuser organization, or craft grower with which it does not
2share a premises, must be packaged in a labeled cannabis
3container and entered into a data collection system before
4transport.
5    (g) Infusers are subject to random inspections by the
6Department of Agriculture, the Department of Public Health,
7the Department of State Police, and local law enforcement, or
8as provided by rule.
9    (h) An infuser agent shall notify local law enforcement,
10the Department of State Police, and the Department of
11Agriculture within 24 hours of the discovery of any loss or
12theft. Notification shall be made by phone, in person, or by
13written or electronic communication.
14    (i) An infuser organization may not be located in an area
15zoned for residential use.
16    (j) An infuser or infuser agent shall not transport
17cannabis or cannabis-infused products to any other cannabis
18business establishment without a transport organization
19license unless:
20        (i) If the infuser is located in a county with a
21    population of 3,000,000 or more, the cannabis business
22    establishment receiving the cannabis or cannabis-infused
23    product is within 2,000 feet of the property line of the
24    infuser;
25        (ii) If the infuser is located in a county with a
26    population of more than 700,000 but fewer than 3,000,000,

 

 

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1    the cannabis business establishment receiving the cannabis
2    or cannabis-infused product is within 2 miles of the
3    infuser; or
4        (iii) If the infuser is located in a county with a
5    population of fewer than 700,000, the cannabis business
6    establishment receiving the cannabis or cannabis-infused
7    product is within 15 miles of the infuser.
8    (k) An infuser may enter into a contract with a
9transporting organization to transport cannabis to a
10dispensing organization or a laboratory.
11    (l) An infuser organization may share premises with a
12craft grower or a dispensing organization, or both, provided
13each licensee stores currency and cannabis or cannabis-infused
14products in a separate secured vault to which the other
15licensee does not have access or all licensees sharing a vault
16share more than 50% of the same ownership.
17    (m) It is unlawful for any person or entity having an
18infuser organization license or any officer, associate,
19member, representative or agent of such licensee to offer or
20deliver money, or anything else of value, directly or
21indirectly to any person having an Early Approval Adult Use
22Dispensing Organization License, a Conditional Adult Use
23Dispensing Organization License, an Adult Use Dispensing
24Organization License, or a medical cannabis dispensing
25organization license issued under the Compassionate Use of
26Medical Cannabis Program Act, or to any person connected with

 

 

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1or in any way representing, or to any member of the family of,
2such person holding an Early Approval Adult Use Dispensing
3Organization License, a Conditional Adult Use Dispensing
4Organization License, an Adult Use Dispensing Organization
5License, or a medical cannabis dispensing organization license
6issued under the Compassionate Use of Medical Cannabis Program
7Act, or to any stockholders in any corporation engaged the
8retail sales of cannabis, or to any officer, manager, agent,
9or representative of the Early Approval Adult Use Dispensing
10Organization License, a Conditional Adult Use Dispensing
11Organization License, an Adult Use Dispensing Organization
12License, or a medical cannabis dispensing organization license
13issued under the Compassionate Use of Medical Cannabis Program
14Act to obtain preferential placement within the dispensing
15organization, including, without limitation, on shelves and in
16display cases where purchasers can view products, or on the
17dispensing organization's website.
18    (n) At no time shall an infuser organization or an infuser
19agent perform the extraction of cannabis concentrate from
20cannabis flower.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
22    (410 ILCS 705/35-30)
23    Sec. 35-30. Infuser agent identification card.
24    (a) The Department of Agriculture shall:
25        (1) establish by rule the information required in an

 

 

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1    initial application or renewal application for an agent
2    identification card submitted under this Act and the
3    nonrefundable fee to accompany the initial application or
4    renewal application;
5        (2) verify the information contained in an initial
6    application or renewal application for an agent
7    identification card submitted under this Act, and approve
8    or deny an application within 30 days of receiving a
9    completed initial application or renewal application and
10    all supporting documentation required by rule;
11        (3) issue an agent identification card to a qualifying
12    agent within 15 business days of approving the initial
13    application or renewal application;
14        (4) enter the license number of the infuser where the
15    agent works; and
16        (5) allow for an electronic initial application and
17    renewal application process, and provide a confirmation by
18    electronic or other methods that an application has been
19    submitted. The Department of Agriculture may by rule
20    require prospective agents to file their applications by
21    electronic means and provide notices to the agents by
22    electronic means.
23    (b) An agent must keep his or her identification card
24visible at all times when on the property of a cannabis
25business establishment including the cannabis business
26establishment for which he or she is an agent.

 

 

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1    (c) The agent identification cards shall contain the
2following:
3        (1) the name of the cardholder;
4        (2) the date of issuance and expiration date of the
5    identification card;
6        (3) a random 10-digit alphanumeric identification
7    number containing at least 4 numbers and at least 4
8    letters that is unique to the holder;
9        (4) a photograph of the cardholder; and
10        (5) the legal name of the infuser organization
11    employing the agent.
12    (d) An agent identification card shall be immediately
13returned to the infuser organization of the agent upon
14termination of his or her employment.
15    (e) Any agent identification card lost by a transporting
16agent shall be reported to the Department of State Police and
17the Department of Agriculture immediately upon discovery of
18the loss.
19    (f) An agent applicant may begin employment at an infuser
20organization while the agent applicant's identification card
21application is pending. Upon approval, the Department shall
22issue the agent's identification card to the agent. If denied,
23the infuser organization and the agent applicant shall be
24notified and the agent applicant must cease all activity at
25the infuser organization immediately.
26(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/35-45 new)
2    Sec. 35-45. Disclosure of ownership and control.
3    (a) Each infuser organization applicant and licensee shall
4file and maintain a Table of Organization, Ownership and
5Control with the Department. The Table of Organization,
6Ownership and Control shall contain the information required
7by this Section in sufficient detail to identify all owners,
8directors, and principal officers, and the title of each
9principal officer or business entity that, through direct or
10indirect means, manages, owns, or controls the applicant or
11licensee.
12    (b) The Table of Organization, Ownership, and Control
13shall identify the following information:
14        (1) The management structure, ownership, and control
15    of the applicant or license holder including the name of
16    each principal officer or business entity, the office or
17    position held, and the percentage ownership interest, if
18    any. If the business entity has a parent company, the name
19    of each owner, board member, and officer of the parent
20    company and his or her percentage ownership interest in
21    the parent company and the infuser organization.
22        (2) If the applicant or licensee is a business entity
23    with publicly traded stock, the identification of
24    ownership shall be provided as required in subsection (c).
25    (c) If a business entity identified in subsection (b) is a

 

 

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1publicly traded company, the following information shall be
2provided in the Table of Organization, Ownership, and Control:
3        (1) The name and percentage of ownership interest of
4    each individual or business entity with ownership of more
5    than 5% of the voting shares of the entity, to the extent
6    such information is known or contained in 13D or 13G
7    Securities and Exchange Commission filings.
8        (2) To the extent known, the names and percentage of
9    interest of ownership of persons who are relatives of one
10    another and who together exercise control over or own more
11    than 10% of the voting shares of the entity.
12    (d) An infuser organization with a parent company or
13companies, or partially owned or controlled by another entity
14must disclose to the Department the relationship and all
15owners, board members, officers, or individuals with control
16or management of those entities. An infuser organization shall
17not shield its ownership or control from the Department.
18    (e) All principal officers must submit a complete online
19application with the Department within 14 days of the infuser
20organization being licensed by the Department or within 14
21days of Department notice of approval as a new principal
22officer.
23    (f) A principal officer may not allow his or her
24registration to expire.
25    (g) An infuser organization separating with a principal
26officer must do so under this Act. The principal officer must

 

 

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1communicate the separation to the Department within 5 business
2days.
3    (h) A principal officer not in compliance with the
4requirements of this Act shall be removed from his or her
5position with the infuser organization or shall otherwise
6terminate his or her affiliation. Failure to do so may subject
7the infuser organization to discipline, suspension, or
8revocation of its license by the Department.
9    (i) It is the responsibility of the infuser organization
10and its principal officers to promptly notify the Department
11of any change of the principal place of business address,
12hours of operation, change in ownership or control, or a
13change of the infuser organization's primary or secondary
14contact information. Any changes must be made to the
15Department in writing.
 
16    (410 ILCS 705/40-25)
17    Sec. 40-25. Transporting organization requirements;
18prohibitions.
19    (a) The operating documents of a transporting organization
20shall include procedures for the oversight of the transporter,
21an inventory monitoring system including a physical inventory
22recorded weekly, accurate recordkeeping, and a staffing plan.
23    (b) A transporting organization may not transport cannabis
24or cannabis-infused products to any person other than a
25cultivation center, a craft grower, an infuser organization, a

 

 

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1dispensing organization, a testing facility, or as otherwise
2authorized by rule.
3    (c) All cannabis transported by a transporting
4organization must be entered into a data collection system and
5placed into a cannabis container for transport.
6    (d) Transporters are subject to random inspections by the
7Department of Agriculture, the Department of Public Health,
8and the Department of State Police, or as provided by rule.
9    (e) A transporting organization agent shall notify local
10law enforcement, the Department of State Police, and the
11Department of Agriculture within 24 hours of the discovery of
12any loss or theft. Notification shall be made by phone, in
13person, or by written or electronic communication.
14    (f) No person under the age of 21 years shall be in a
15commercial vehicle or trailer transporting cannabis goods.
16    (g) No person or individual who is not a transporting
17organization agent shall be in a vehicle while transporting
18cannabis goods.
19    (h) Transporters may not use commercial motor vehicles
20with a weight rating of over 10,001 pounds.
21    (i) It is unlawful for any person to offer or deliver
22money, or anything else of value, directly or indirectly, to
23any of the following persons to obtain preferential placement
24within the dispensing organization, including, without
25limitation, on shelves and in display cases where purchasers
26can view products, or on the dispensing organization's

 

 

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1website:
2        (1) a person having a transporting organization
3    license, or any officer, associate, member,
4    representative, or agent of the licensee;
5        (2) a person having an Early Applicant Adult Use
6    Dispensing Organization License, an Adult Use Dispensing
7    Organization License, or a medical cannabis dispensing
8    organization license issued under the Compassionate Use of
9    Medical Cannabis Program Act;
10        (3) a person connected with or in any way
11    representing, or a member of the family of, a person
12    holding an Early Applicant Adult Use Dispensing
13    Organization License, an Adult Use Dispensing Organization
14    License, or a medical cannabis dispensing organization
15    license issued under the Compassionate Use of Medical
16    Cannabis Program Act; or
17        (4) a stockholder, officer, manager, agent, or
18    representative of a corporation engaged in the retail sale
19    of cannabis, an Early Applicant Adult Use Dispensing
20    Organization License, an Adult Use Dispensing Organization
21    License, or a medical cannabis dispensing organization
22    license issued under the Compassionate Use of Medical
23    Cannabis Program Act.
24    (j) A transporting organization agent must keep his or her
25identification card visible at all times when on the property
26of a cannabis business establishment and during the

 

 

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1transporting of cannabis when acting under his or her duties
2as a transportation organization agent. During these times,
3the transporting organization agent must also provide the
4identification card upon request of any law enforcement
5officer engaged in his or her official duties.
6    (k) A copy of the transporting organization's registration
7and a manifest for the delivery shall be present in any vehicle
8transporting cannabis.
9    (l) Cannabis shall be transported so it is not visible or
10recognizable from outside the vehicle.
11    (m) A vehicle transporting cannabis must not bear any
12markings to indicate the vehicle contains cannabis or bear the
13name or logo of the cannabis business establishment.
14    (n) Cannabis must be transported in an enclosed, locked
15storage compartment that is secured or affixed to the vehicle.
16    (o) The Department of Agriculture may, by rule, impose any
17other requirements or prohibitions on the transportation of
18cannabis.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/40-30)
21    Sec. 40-30. Transporting agent identification card.
22    (a) The Department of Agriculture shall:
23        (1) establish by rule the information required in an
24    initial application or renewal application for an agent
25    identification card submitted under this Act and the

 

 

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1    nonrefundable fee to accompany the initial application or
2    renewal application;
3        (2) verify the information contained in an initial
4    application or renewal application for an agent
5    identification card submitted under this Act and approve
6    or deny an application within 30 days of receiving a
7    completed initial application or renewal application and
8    all supporting documentation required by rule;
9        (3) issue an agent identification card to a qualifying
10    agent within 15 business days of approving the initial
11    application or renewal application;
12        (4) enter the license number of the transporting
13    organization where the agent works; and
14        (5) allow for an electronic initial application and
15    renewal application process, and provide a confirmation by
16    electronic or other methods that an application has been
17    submitted. The Department of Agriculture may by rule
18    require prospective agents to file their applications by
19    electronic means and provide notices to the agents by
20    electronic means.
21    (b) An agent must keep his or her identification card
22visible at all times when on the property of a cannabis
23business establishment, including the cannabis business
24establishment for which he or she is an agent.
25    (c) The agent identification cards shall contain the
26following:

 

 

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1        (1) the name of the cardholder;
2        (2) the date of issuance and expiration date of the
3    identification card;
4        (3) a random 10-digit alphanumeric identification
5    number containing at least 4 numbers and at least 4
6    letters that is unique to the holder;
7        (4) a photograph of the cardholder; and
8        (5) the legal name of the transporting organization
9    employing the agent.
10    (d) An agent identification card shall be immediately
11returned to the transporting organization of the agent upon
12termination of his or her employment.
13    (e) Any agent identification card lost by a transporting
14agent shall be reported to the Department of State Police and
15the Department of Agriculture immediately upon discovery of
16the loss.
17    (f) An application for an agent identification card shall
18be denied if the applicant is delinquent in filing any
19required tax returns or paying any amounts owed to the State of
20Illinois.
21    (g) An agent applicant may begin employment at a
22transporting organization while the agent applicant's
23identification card application is pending. Upon approval, the
24Department shall issue the agent's identification card to the
25agent. If denied, the transporting organization and the agent
26applicant shall be notified and the agent applicant must cease

 

 

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1all activity at the transporting organization immediately.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/40-45 new)
4    Sec. 40-45. Disclosure of ownership and control.
5    (a) Each transporting organization applicant and licensee
6shall file and maintain a Table of Organization, Ownership,
7and Control with the Department. The Table of Organization,
8Ownership, and Control shall contain the information required
9by this Section in sufficient detail to identify all owners,
10directors, and principal officers, and the title of each
11principal officer or business entity that, through direct or
12indirect means, manages, owns, or controls the applicant or
13licensee.
14    (b) The Table of Organization, Ownership, and Control
15shall identify the following information:
16        (1) The management structure, ownership, and control
17    of the applicant or license holder including the name of
18    each principal officer or business entity, the office or
19    position held, and the percentage ownership interest, if
20    any. If the business entity has a parent company, the name
21    of each owner, board member, and officer of the parent
22    company and his or her percentage ownership interest in
23    the parent company and the transporting organization.
24        (2) If the applicant or licensee is a business entity
25    with publicly traded stock, the identification of

 

 

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1    ownership shall be provided as required in subsection (c).
2    (c) If a business entity identified in subsection (b) is a
3publicly traded company, the following information shall be
4provided in the Table of Organization, Ownership, and Control:
5        (1) The name and percentage of ownership interest of
6    each individual or business entity with ownership of more
7    than 5% of the voting shares of the entity, to the extent
8    such information is known or contained in 13D or 13G
9    Securities and Exchange Commission filings.
10        (2) To the extent known, the names and percentage of
11    interest of ownership of persons who are relatives of one
12    another and who together exercise control over or own more
13    than 10% of the voting shares of the entity.
14    (d) A transporting organization with a parent company or
15companies, or partially owned or controlled by another entity
16must disclose to the Department the relationship and all
17owners, board members, officers, or individuals with control
18or management of those entities. A transporting organization
19shall not shield its ownership or control from the Department.
20    (e) All principal officers must submit a complete online
21application with the Department within 14 days of the
22transporting organization being licensed by the Department or
23within 14 days of Department notice of approval as a new
24principal officer.
25    (f) A principal officer may not allow his or her
26registration to expire.

 

 

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1    (g) A transporting organization separating with a
2principal officer must do so under this Act. The principal
3officer must communicate the separation to the Department
4within 5 business days.
5    (h) A principal officer not in compliance with the
6requirements of this Act shall be removed from his or her
7position with the transporting organization or shall otherwise
8terminate his or her affiliation. Failure to do so may subject
9the transporting organization to discipline, suspension, or
10revocation of its license by the Department.
11    (i) It is the responsibility of the transporting
12organization and its principal officers to promptly notify the
13Department of any change of the principal place of business
14address, hours of operation, change in ownership or control,
15or a change of the transporting organization's primary or
16secondary contact information. Any changes must be made to the
17Department in writing.
 
18    (410 ILCS 705/55-21)
19    Sec. 55-21. Cannabis product packaging and labeling.
20    (a) Each cannabis product produced for sale shall be
21registered with the Department of Agriculture on forms
22provided by the Department of Agriculture. Each product
23registration shall include a label and the required
24registration fee at the rate established by the Department of
25Agriculture for a comparable medical cannabis product, or as

 

 

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1established by rule. The registration fee is for the name of
2the product offered for sale and one fee shall be sufficient
3for all package sizes.
4    (b) All harvested cannabis intended for distribution to a
5cannabis enterprise must be packaged in a sealed, labeled
6container.
7    (c) Any product containing cannabis shall be sold packaged
8in a sealed, odor-proof, and child-resistant cannabis
9container consistent with current standards, including the
10Consumer Product Safety Commission standards referenced by the
11Poison Prevention Act unless the sale is between or among a
12craft grower, infuser, or cultivation center.
13    (d) All cannabis-infused products shall be individually
14wrapped or packaged at the original point of preparation. The
15packaging of the cannabis-infused product shall conform to the
16labeling requirements of the Illinois Food, Drug and Cosmetic
17Act, in addition to the other requirements set forth in this
18Section.
19    (e) Each cannabis product shall be labeled before sale and
20each label shall be securely affixed to the package and shall
21state in legible English and any languages required by the
22Department of Agriculture:
23        (1) the name and post office box of the registered
24    cultivation center or craft grower where the item was
25    manufactured;
26        (2) the common or usual name of the item and the

 

 

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1    registered name of the cannabis product that was
2    registered with the Department of Agriculture under
3    subsection (a);
4        (3) a unique serial number that will match the product
5    with a cultivation center or craft grower batch and lot
6    number to facilitate any warnings or recalls the
7    Department of Agriculture, cultivation center, or craft
8    grower deems appropriate;
9        (4) the date of final testing and packaging, if
10    sampled, and the identification of the independent testing
11    laboratory;
12        (5) the date of harvest and "use by" date;
13        (6) the quantity (in ounces or grams) of cannabis
14    contained in the product;
15        (7) a pass/fail rating based on the laboratory's
16    microbiological, mycotoxins, and pesticide and solvent
17    residue analyses, if sampled;
18        (8) content list.
19            (A) A list of the following, including the minimum
20        and maximum percentage content by weight for
21        subdivisions (e)(8)(A)(i) through (iv):
22                (i) delta-9-tetrahydrocannabinol (THC);
23                (ii) tetrahydrocannabinolic acid (THCA);
24                (iii) cannabidiol (CBD);
25                (iv) cannabidiolic acid (CBDA); and
26                (v) all other ingredients of the item,

 

 

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1            including any colors, artificial flavors, and
2            preservatives, listed in descending order by
3            predominance of weight shown with common or usual
4            names.
5            (B) The acceptable tolerances for the minimum
6        percentage printed on the label for any of
7        subdivisions (e)(8)(A)(i) through (iv) shall not be
8        below 85% or above 115% of the labeled amount.
9    (f) Packaging must not contain information that:
10        (1) is false or misleading;
11        (2) promotes excessive consumption;
12        (3) depicts a person under 21 years of age consuming
13    cannabis;
14        (4) includes the image of a cannabis leaf;
15        (5) includes any image designed or likely to appeal to
16    minors, including cartoons, toys, animals, or children, or
17    any other likeness to images, characters, or phrases that
18    are popularly used to advertise to children, or any
19    packaging or labeling that bears reasonable resemblance to
20    any product available for consumption as a commercially
21    available candy, or that promotes consumption of cannabis;
22        (6) contains any seal, flag, crest, coat of arms, or
23    other insignia likely to mislead the purchaser to believe
24    that the product has been endorsed, made, or used by the
25    State of Illinois or any of its representatives except
26    where authorized by this Act.

 

 

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1    (g) Cannabis products produced by concentrating or
2extracting ingredients from the cannabis plant shall contain
3the following information, where applicable:
4        (1) If solvents were used to create the concentrate or
5    extract, a statement that discloses the type of extraction
6    method, including any solvents or gases used to create the
7    concentrate or extract; and
8        (2) Any other chemicals or compounds used to produce
9    or were added to the concentrate or extract.
10    (h) All cannabis products must contain warning statements
11established for purchasers, of a size that is legible and
12readily visible to a consumer inspecting a package, which may
13not be covered or obscured in any way. The Department of Public
14Health shall define and update appropriate health warnings for
15packages including specific labeling or warning requirements
16for specific cannabis products.
17    (i) Unless modified by rule to strengthen or respond to
18new evidence and science, the following warnings shall apply
19to all cannabis products unless modified by rule: "This
20product contains cannabis and is intended for use by adults 21
21and over. Its use can impair cognition and may be habit
22forming. This product should not be used by pregnant or
23breastfeeding women. It is unlawful to sell or provide this
24item to any individual, and it may not be transported outside
25the State of Illinois. It is illegal to operate a motor vehicle
26while under the influence of cannabis. Possession or use of

 

 

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1this product may carry significant legal penalties in some
2jurisdictions and under federal law.".
3    (j) Warnings for each of the following product types must
4be present on labels when offered for sale to a purchaser:
5        (1) Cannabis that may be smoked must contain a
6    statement that "Smoking is hazardous to your health.".
7        (2) Cannabis-infused products (other than those
8    intended for topical application) must contain a statement
9    "CAUTION: This product contains cannabis, and intoxication
10    following use may be delayed 2 or more hours. This product
11    was produced in a facility that cultivates cannabis, and
12    that may also process common food allergens.".
13        (3) Cannabis-infused products intended for topical
14    application must contain a statement "DO NOT EAT" in bold,
15    capital letters.
16    (k) Each cannabis-infused product intended for consumption
17must be individually packaged, must include the total
18milligram content of THC and CBD, and may not include more than
19a total of 100 milligrams of THC per package. A package may
20contain multiple servings of 10 milligrams of THC, indicated
21by scoring, wrapping, or by other indicators designating
22individual serving sizes. The Department of Agriculture may
23change the total amount of THC allowed for each package, or the
24total amount of THC allowed for each serving size, by rule.
25    (l) No individual other than the purchaser may alter or
26destroy any labeling affixed to the primary packaging of

 

 

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1cannabis or cannabis-infused products.
2    (m) For each commercial weighing and measuring device used
3at a facility, the cultivation center or craft grower must:
4        (1) Ensure that the commercial device is licensed
5    under the Weights and Measures Act and the associated
6    administrative rules (8 Ill. Adm. Code 600);
7        (2) Maintain documentation of the licensure of the
8    commercial device; and
9        (3) Provide a copy of the license of the commercial
10    device to the Department of Agriculture for review upon
11    request.
12    (n) It is the responsibility of the Department to ensure
13that packaging and labeling requirements, including product
14warnings, are enforced at all times for products provided to
15purchasers. Product registration requirements and container
16requirements may be modified by rule by the Department of
17Agriculture.
18    (o) Labeling, including warning labels, may be modified by
19rule by the Department of Agriculture.
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
21    (410 ILCS 705/55-28)
22    Sec. 55-28. Restricted cannabis zones.
23    (a) As used in this Section:
24    "Legal voter" means a person:
25        (1) who is duly registered to vote in a municipality

 

 

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1    with a population of over 500,000;
2        (2) whose name appears on a poll list compiled by the
3    city board of election commissioners since the last
4    preceding election, regardless of whether the election was
5    a primary, general, or special election;
6        (3) who, at the relevant time, is a resident of the
7    address at which he or she is registered to vote; and
8        (4) whose address, at the relevant time, is located in
9    the precinct where such person seeks to file a notice of
10    intent to initiate a petition process, circulate a
11    petition, or sign a petition under this Section.
12    As used in the definition of "legal voter", "relevant
13time" means any time that:
14        (i) a notice of intent is filed, pursuant to
15    subsection (c) of this Section, to initiate the petition
16    process under this Section;
17        (ii) the petition is circulated for signature in the
18    applicable precinct; or
19        (iii) the petition is signed by registered voters in
20    the applicable precinct.
21    "Petition" means the petition described in this Section.
22    "Precinct" means the smallest constituent territory within
23a municipality with a population of over 500,000 in which
24electors vote as a unit at the same polling place in any
25election governed by the Election Code.
26    "Restricted cannabis zone" means a precinct within which

 

 

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1home cultivation, one or more types of cannabis business
2establishments, or both has been prohibited pursuant to an
3ordinance initiated by a petition under this Section.
4    (b) The legal voters of any precinct within a municipality
5with a population of over 500,000 may petition their local
6alderman, using a petition form made available online by the
7city clerk, to introduce an ordinance establishing the
8precinct as a restricted zone. Such petition shall specify
9whether it seeks an ordinance to prohibit, within the
10precinct: (i) home cultivation; (ii) one or more types of
11cannabis business establishments; or (iii) home cultivation
12and one or more types of cannabis business establishments.
13    Upon receiving a petition containing the signatures of at
14least 25% of the registered voters of the precinct, and
15concluding that the petition is legally sufficient following
16the posting and review process in subsection (c) of this
17Section, the city clerk shall notify the local alderman of the
18ward in which the precinct is located. Upon being notified,
19that alderman, following an assessment of relevant factors
20within the precinct, including but not limited to, its
21geography, density and character, the prevalence of
22residentially zoned property, current licensed cannabis
23business establishments in the precinct, the current amount of
24home cultivation in the precinct, and the prevailing viewpoint
25with regard to the issue raised in the petition, may introduce
26an ordinance to the municipality's governing body creating a

 

 

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1restricted cannabis zone in that precinct.
2    (c) A person seeking to initiate the petition process
3described in this Section shall first submit to the city clerk
4notice of intent to do so, on a form made available online by
5the city clerk. That notice shall include a description of the
6potentially affected area and the scope of the restriction
7sought. The city clerk shall publicly post the submitted
8notice online.
9    To be legally sufficient, a petition must contain the
10requisite number of valid signatures and all such signatures
11must be obtained within 90 days of the date that the city clerk
12publicly posts the notice of intent. Upon receipt, the city
13clerk shall post the petition on the municipality's website
14for a 30-day comment period. The city clerk is authorized to
15take all necessary and appropriate steps to verify the legal
16sufficiency of a submitted petition. Following the petition
17review and comment period, the city clerk shall publicly post
18online the status of the petition as accepted or rejected, and
19if rejected, the reasons therefor. If the city clerk rejects a
20petition as legally insufficient, a minimum of 12 months must
21elapse from the time the city clerk posts the rejection notice
22before a new notice of intent for that same precinct may be
23submitted.
24    (c-5) Within 3 days after receiving an application for
25zoning approval to locate a cannabis business establishment
26within a municipality with a population of over 500,000, the

 

 

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1municipality shall post a public notice of the filing on its
2website and notify the alderman of the ward in which the
3proposed cannabis business establishment is to be located of
4the filing. No action shall be taken on the zoning application
5for 7 business days following the notice of the filing for
6zoning approval.
7    If a notice of intent to initiate the petition process to
8prohibit the type of cannabis business establishment proposed
9in the precinct of the proposed cannabis business
10establishment is filed prior to the filing of the application
11or within the 7-day period after the filing of the
12application, the municipality shall not approve the
13application for at least 90 days after the city clerk publicly
14posts the notice of intent to initiate the petition process.
15If a petition is filed within the 90-day petition-gathering
16period described in subsection (c), the municipality shall not
17approve the application for an additional 90 days after the
18city clerk's receipt of the petition; provided that if the
19city clerk rejects a petition as legally insufficient, the
20municipality may approve the application prior to the end of
21the 90 days. If a petition is not submitted within the 90-day
22petition-gathering period described in subsection (c), the
23municipality may approve the application unless the approval
24is otherwise stayed pursuant to this subsection by a separate
25notice of intent to initiate the petition process filed timely
26within the 7-day period.

 

 

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1    If no legally sufficient petition is timely filed, a
2minimum of 12 months must elapse before a new notice of intent
3for that same precinct may be submitted.
4    (d) Notwithstanding any law to the contrary, the
5municipality may enact an ordinance creating a restricted
6cannabis zone. The ordinance shall:
7        (1) identify the applicable precinct boundaries as of
8    the date of the petition;
9        (2) state whether the ordinance prohibits within the
10    defined boundaries of the precinct, and in what
11    combination: (A) one or more types of cannabis business
12    establishments; or (B) home cultivation;
13        (3) be in effect for 4 years, unless repealed earlier;
14    and
15        (4) once in effect, be subject to renewal by ordinance
16    at the expiration of the 4-year period without the need
17    for another supporting petition.
18    (e) An Early Approval Adult Use Dispensing Organization
19License permitted to relocate under subsection (b-5) of
20Section 15-15 shall not relocate to a restricted cannabis
21zone.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
23    (410 ILCS 705/55-30)
24    Sec. 55-30. Confidentiality.
25    (a) Information provided by the cannabis business

 

 

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

 

 

HB1443 Engrossed- 201 -LRB102 03459 BMS 13472 b

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

 

 

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

 

 

HB1443 Engrossed- 203 -LRB102 03459 BMS 13472 b

1Regulation shall not share or disclose any Illinois or
2national criminal history record information, or the
3nonexistence or lack of such information, to any person or
4entity not expressly authorized by this Act.
5    (f) Each Department responsible for licensure under this
6Act shall publish on the Department's website a list of the
7ownership information of cannabis business establishment
8licensees under the Department's jurisdiction. The list shall
9include, but is not limited to: the name of the person or
10entity holding each cannabis business establishment license;
11and the address at which the entity is operating under this
12Act. This list shall be published and updated monthly.
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
14    Section 15. The Illinois Vehicle Code is amended by
15changing Sections 11-502.1 and 11-502.15 as follows:
 
16    (625 ILCS 5/11-502.1)
17    Sec. 11-502.1. Possession of medical cannabis in a motor
18vehicle.
19    (a) No driver, who is a medical cannabis cardholder, may
20use medical cannabis within the passenger area of any motor
21vehicle upon a highway in this State.
22    (b) No driver, who is a medical cannabis cardholder, a
23medical cannabis designated caregiver, medical cannabis
24cultivation center agent, or dispensing organization agent may

 

 

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1possess medical cannabis within any area of any motor vehicle
2upon a highway in this State except in a secured, sealed or
3resealable, odor-proof, and child-resistant medical cannabis
4container that is inaccessible.
5    (c) No passenger, who is a medical cannabis card holder, a
6medical cannabis designated caregiver, or medical cannabis
7dispensing organization agent may possess medical cannabis
8within any passenger area of any motor vehicle upon a highway
9in this State except in a secured, sealed or resealable,
10odor-proof, and child-resistant medical cannabis container
11that is inaccessible.
12    (d) Any person who violates subsections (a) through (c) of
13this Section:
14        (1) commits a Class A misdemeanor;
15        (2) shall be subject to revocation of his or her
16    medical cannabis card for a period of 2 years from the end
17    of the sentence imposed; and
18        (3) (4) shall be subject to revocation of his or her
19    status as a medical cannabis caregiver, medical cannabis
20    cultivation center agent, or medical cannabis dispensing
21    organization agent for a period of 2 years from the end of
22    the sentence imposed.
23(Source: P.A. 101-27, eff. 6-25-19; revised 8-6-19.)
 
24    (625 ILCS 5/11-502.15)
25    Sec. 11-502.15. Possession of adult use cannabis in a

 

 

HB1443 Engrossed- 205 -LRB102 03459 BMS 13472 b

1motor vehicle.
2    (a) No driver may use cannabis within the passenger area
3of any motor vehicle upon a highway in this State.
4    (b) No driver may possess cannabis within any area of any
5motor vehicle upon a highway in this State except in a secured,
6sealed or resealable, odor-proof, child-resistant cannabis
7container that is inaccessible.
8    (c) No passenger may possess cannabis within any passenger
9area of any motor vehicle upon a highway in this State except
10in a secured, sealed or resealable, odor-proof,
11child-resistant cannabis container that is inaccessible.
12    (d) Any person who knowingly violates subsection (a), (b),
13or (c) of this Section commits a Class A misdemeanor.
14(Source: P.A. 101-27, eff. 6-25-19.)
 
15    Section 97. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.