103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1500

 

Introduced 1/31/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture shall follow specified requirements of the Cannabis Regulation and Tax Act regarding the administration of cultivation center agent identification cards, and the Department of Financial and Professional Regulation shall follow specified requirements of that Act regarding the administration of dispensing organization agent identification cards. Repeals provisions regarding cultivation center agent identification cards. Amends the Cannabis Regulation and Tax Act. Provides that the Department of Agriculture (rather than the Department of Financial and Professional Regulation) shall issue dispensing organization licenses and agent identification cards. Requires the Department of Agriculture to issue agent identification cards under the Act via an online application portal. Contains provisions requiring, except as otherwise provided, background checks through the Illinois State Police for agent identification cards. Allows a person seeking employment at a cannabis business establishment to pay for or otherwise obtain for himself or herself, without any assistance from a cannabis business establishment, any required background check, responsible vendor training, or agent identification card required under the Act. Provides that any agent identification card that is paid for or otherwise obtained by the agent belongs to him or her and may be used by him or her as an agent identification card for a cannabis business establishment other than that for which the agent identification card was issued. Prohibits cannabis business establishments from entering into a non-compete agreement with a potential or current employee as a condition of the cannabis business establishment employing that employee. Contains other provisions. Repeals provisions regarding Department of Public Health health warnings, the Department of Human Services, the Illinois Cannabis Regulation Oversight Officer, and other provisions. Effective immediately.


LRB103 05064 CPF 50078 b

 

 

A BILL FOR

 

HB1500LRB103 05064 CPF 50078 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. Findings. The General Assembly finds that:
5        (1) The process of acquiring a license or
6    identification card under the Cannabis Regulation and Tax
7    Act offers a confusing framework that requires an
8    applicant to undergo a criminal history record check for
9    prospective principal officers, board members, and agents
10    by submitting the applicant's fingerprints to the Illinois
11    State Police as prescribed by the relevant department.
12    This process is controlled by the Illinois Department of
13    Financial and Professional Regulation and the Illinois
14    Department of Agriculture. The former offers licenses via
15    a manual licensing platform, while the latter offers an
16    online electronic application platform.
17        (2) This scenario has since led to exorbitant expense
18    for licensees seeking to recruit agents who conform to the
19    background requirements.
20        (3) As such, the current licensing criteria are
21    cumbersome, leading to a narrowing of the pool of
22    candidates for selection. Further, trained candidates are
23    inevitably denied entry into the industry subject to
24    strict background checks and inconsistent criminal records

 

 

HB1500- 2 -LRB103 05064 CPF 50078 b

1    requirements, which are not provided for in the
2    pre-badging criteria.
3        (4) The current illegal framework is discriminatory
4    and violates the spirit of the Fourteenth Amendment of the
5    United States Constitution. It fails to offer an
6    equitable, procedurally fair, and just process for Black
7    and Brown applicants who are seeking to take up agent
8    roles in dispensing organizations, cultivation centers,
9    transporting organizations, and infuser organizations.
 
10    Section 10. The Compassionate Use of Medical Cannabis
11Program Act is amended by adding Section 103 as follows:
 
12    (410 ILCS 130/103 new)
13    Sec. 103. Cultivation center agent identification cards;
14dispensing organization agent identification cards.
15    (a) The Department of Agriculture shall follow the
16requirements set forth in Section 20-35 of the Cannabis
17Regulation and Tax Act regarding the administration of
18cultivation center agent identification cards under this Act.
19    (b) The Department of Financial and Professional
20Regulation shall follow the requirements set forth in Section
2115-40 of the Cannabis Regulation and Tax Act regarding the
22administration of dispensing organization agent identification
23cards under this Act.
 

 

 

HB1500- 3 -LRB103 05064 CPF 50078 b

1    Section 15. The Cannabis Regulation and Tax Act is amended
2by changing Sections 5-10, 15-5, and 15-25 and by adding
3Sections 5-22 and 5-23 as follows:
 
4    (410 ILCS 705/5-10)
5    Sec. 5-10. Department of Agriculture. The Department of
6Agriculture shall administer and enforce provisions of this
7Act relating to the oversight and registration of dispensing
8organizations, cultivation centers, craft growers, infuser
9organizations, and transporting organizations and agents,
10including the issuance of identification cards and
11establishing limits on potency or serving size for cannabis or
12cannabis products. The Department of Agriculture may suspend
13or revoke the license of, or impose other penalties upon
14dispensing organizations, cultivation centers, craft growers,
15infuser organizations, transporting organizations, and their
16principal officers, Agents-in-Charge, and agents for
17violations of this Act and any rules adopted under this Act.
18(Source: P.A. 101-27, eff. 6-25-19.)
 
19    (410 ILCS 705/5-22 new)
20    Sec. 5-22. Licensing and identification cards.
21    (a) The Department of Agriculture shall issue dispensing
22organization agent identification cards, cultivation center
23agent identification cards, craft grower agent identification
24cards, and infuser organization agent identification cards

 

 

HB1500- 4 -LRB103 05064 CPF 50078 b

1under this Act via an online application portal.
2    (b) A State agency that issues a license under this Act
3shall offer pre-badging approval process guidelines to
4candidates for the license, pending the completion of the
5background checks in accordance with Section 5-23.
6    (c) A State agency that issues a license under this Act
7shall offer an expedited licensing process upon payment of a
8required licensing fee.
9    (d) Notwithstanding any other provision of law, and in
10accordance with subsection (b) of Section 5-23, a person
11seeking employment at a cannabis business establishment may
12pay for or otherwise obtain for himself or herself, without
13any assistance from a cannabis business establishment, any
14required background check, responsible vendor training, or
15agent identification card required under this Act. Any agent
16identification card that is paid for or otherwise obtained by
17the agent belongs to him or her and may be used by him or her
18as an agent identification card for a cannabis business
19establishment other than that for which the agent
20identification card was issued. However, if a licensed
21cannabis business establishment pays for an employee's agent
22identification card, the cannabis business establishment may
23retain and control access to the agent identification card.
24    (e) Notwithstanding any other provision of law, a cannabis
25business establishment may not enter into a non-compete
26agreement with a potential or current employee as a condition

 

 

HB1500- 5 -LRB103 05064 CPF 50078 b

1of the cannabis business establishment employing that
2employee.
 
3    (410 ILCS 705/5-23 new)
4    Sec. 5-23. Background checks.
5    (a) Except as provided under subsection (b), the
6Department of Agriculture, through the Illinois State Police,
7regarding dispensing organizations, cultivation centers,
8infuser organization, and craft growers, shall carry out
9initial background checks for all prospective principal
10officers, board members, and agents of a cannabis business
11establishment prior to licensing, including the issuance of
12identification cards.
13    (b) Notwithstanding any other provision of law, and in
14accordance with subsection (d) of Section 5-22, a person
15seeking employment at a cannabis business establishment may
16pay for or otherwise obtain any required background check as a
17condition of receiving a required dispensing organization
18agent identification card, cultivation center agent
19identification card, craft grower agent identification card,
20or infuser organization agent identification card from the
21Department of Agriculture.
22    (c) The Illinois State Police shall charge a prescribed
23fee for an expedited criminal history record check, which
24shall be deposited into the State Police Services Fund and
25shall not exceed the actual cost of the State and national

 

 

HB1500- 6 -LRB103 05064 CPF 50078 b

1criminal history record check.
2    (d) The Department of Agriculture shall provide
3information on background check requirements on the online
4application portal for the consideration of applicants prior
5to the commencement of the application's processing. For the
6purposes of this subsection, the Illinois State Police shall
7flag as unqualified an applicant with a criminal conviction of
8murder, sexual harassment, child molestation, rape, or robbery
9with violence.
10    (e) The Department of Agriculture shall ensure a fair and
11just background check, including an exemption from strict
12background check requirements for applicants with no prior
13felony records.
14    (f) The Department of Agriculture shall review background
15check requirements to eliminate all discriminatory criteria
16that may inevitably deny certain citizens access to the
17application for licensing and agent identification cards.
18    (g) The Department of Agriculture shall provide a process
19for appeal of an application denial based on erroneous or
20discriminatory background consideration.
21    (h) All applicants for licensure under this Act with
22criminal convictions shall be subject to the provisions of
23Sections 2105-131, 2105-135, and 2105-205 of the Department of
24Professional Regulation Law of the Civil Administrative Code
25of Illinois subject to any controlling exemption.
 

 

 

HB1500- 7 -LRB103 05064 CPF 50078 b

1    (410 ILCS 705/15-5)
2    Sec. 15-5. Authority.
3    (a) In this Article, "Department" means the Department of
4Agriculture Financial and Professional Regulation.
5    (b) It is the duty of the Department to administer and
6enforce the provisions of this Act relating to the licensure
7and oversight of dispensing organizations and dispensing
8organization agents unless otherwise provided in this Act.
9    (c) No person shall operate a dispensing organization for
10the purpose of serving purchasers of cannabis or cannabis
11products without a license issued under this Article by the
12Department. No person shall be an officer, director, manager,
13or employee of a dispensing organization without having been
14issued a dispensing organization agent card by the Department.
15    (d) Subject to the provisions of this Act, the Department
16may exercise the following powers and duties:
17        (1) Prescribe forms to be issued for the
18    administration and enforcement of this Article.
19        (2) Examine, inspect, and investigate the premises,
20    operations, and records of dispensing organization
21    applicants and licensees.
22        (3) Conduct investigations of possible violations of
23    this Act pertaining to dispensing organizations and
24    dispensing organization agents.
25        (4) Conduct hearings on proceedings to refuse to issue
26    or renew licenses or to revoke, suspend, place on

 

 

HB1500- 8 -LRB103 05064 CPF 50078 b

1    probation, reprimand, or otherwise discipline a license
2    under this Article or take other nondisciplinary action.
3        (5) Adopt rules required for the administration of
4    this Article.
5(Source: P.A. 101-27, eff. 6-25-19.)
 
6    (410 ILCS 705/15-25)
7    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
8Organization Licenses prior to January 1, 2021.
9    (a) The Department shall issue up to 75 Conditional Adult
10Use Dispensing Organization Licenses before May 1, 2020.
11    (b) The Department shall make the application for a
12Conditional Adult Use Dispensing Organization License
13available no later than October 1, 2019 and shall accept
14applications no later than January 1, 2020.
15    (c) To ensure the geographic dispersion of Conditional
16Adult Use Dispensing Organization License holders, the
17following number of licenses shall be awarded in each BLS
18Region as determined by each region's percentage of the
19State's population:
20        (1) Bloomington: 1
21        (2) Cape Girardeau: 1
22        (3) Carbondale-Marion: 1
23        (4) Champaign-Urbana: 1
24        (5) Chicago-Naperville-Elgin: 47
25        (6) Danville: 1

 

 

HB1500- 9 -LRB103 05064 CPF 50078 b

1        (7) Davenport-Moline-Rock Island: 1
2        (8) Decatur: 1
3        (9) Kankakee: 1
4        (10) Peoria: 3
5        (11) Rockford: 2
6        (12) St. Louis: 4
7        (13) Springfield: 1
8        (14) Northwest Illinois nonmetropolitan: 3
9        (15) West Central Illinois nonmetropolitan: 3
10        (16) East Central Illinois nonmetropolitan: 2
11        (17) South Illinois nonmetropolitan: 2
12    (d) An applicant seeking issuance of a Conditional Adult
13Use Dispensing Organization License shall submit an
14application on forms provided by the Department. An applicant
15must meet the following requirements:
16        (1) Payment of a nonrefundable application fee of
17    $5,000 for each license for which the applicant is
18    applying, which shall be deposited into the Cannabis
19    Regulation Fund;
20        (2) Certification that the applicant will comply with
21    the requirements contained in this Act;
22        (3) The legal name of the proposed dispensing
23    organization;
24        (4) A statement that the dispensing organization
25    agrees to respond to the Department's supplemental
26    requests for information;

 

 

HB1500- 10 -LRB103 05064 CPF 50078 b

1        (5) From each principal officer, a statement
2    indicating whether that person:
3            (A) has previously held or currently holds an
4        ownership interest in a cannabis business
5        establishment in Illinois; or
6            (B) has held an ownership interest in a dispensing
7        organization or its equivalent in another state or
8        territory of the United States that had the dispensing
9        organization registration or license suspended,
10        revoked, placed on probationary status, or subjected
11        to other disciplinary action;
12        (6) Disclosure of whether any principal officer has
13    ever filed for bankruptcy or defaulted on spousal support
14    or child support obligation;
15        (7) A resume for each principal officer, including
16    whether that person has an academic degree, certification,
17    or relevant experience with a cannabis business
18    establishment or in a related industry;
19        (8) A description of the training and education that
20    will be provided to dispensing organization agents;
21        (9) A copy of the proposed operating bylaws;
22        (10) A copy of the proposed business plan that
23    complies with the requirements in this Act, including, at
24    a minimum, the following:
25            (A) A description of services to be offered; and
26            (B) A description of the process of dispensing

 

 

HB1500- 11 -LRB103 05064 CPF 50078 b

1        cannabis;
2        (11) A copy of the proposed security plan that
3    complies with the requirements in this Article, including:
4            (A) The process or controls that will be
5        implemented to monitor the dispensary, secure the
6        premises, agents, and currency, and prevent the
7        diversion, theft, or loss of cannabis; and
8            (B) The process to ensure that access to the
9        restricted access areas is restricted to, registered
10        agents, service professionals, transporting
11        organization agents, Department inspectors, and
12        security personnel;
13        (12) A proposed inventory control plan that complies
14    with this Section;
15        (13) A proposed floor plan, a square footage estimate,
16    and a description of proposed security devices, including,
17    without limitation, cameras, motion detectors, servers,
18    video storage capabilities, and alarm service providers;
19        (14) The name, address, social security number, and
20    date of birth of each principal officer and board member
21    of the dispensing organization; each of those individuals
22    shall be at least 21 years of age;
23        (15) Evidence of the applicant's status as a Social
24    Equity Applicant, if applicable, and whether a Social
25    Equity Applicant plans to apply for a loan or grant issued
26    by the Department of Commerce and Economic Opportunity;

 

 

HB1500- 12 -LRB103 05064 CPF 50078 b

1        (16) The address, telephone number, and email address
2    of the applicant's principal place of business, if
3    applicable. A post office box is not permitted;
4        (17) Written summaries of any information regarding
5    instances in which a business or not-for-profit that a
6    prospective board member previously managed or served on
7    were fined or censured, or any instances in which a
8    business or not-for-profit that a prospective board member
9    previously managed or served on had its registration
10    suspended or revoked in any administrative or judicial
11    proceeding;
12        (18) A plan for community engagement;
13        (19) Procedures to ensure accurate recordkeeping and
14    security measures that are in accordance with this Article
15    and Department rules;
16        (20) The estimated volume of cannabis it plans to
17    store at the dispensary;
18        (21) A description of the features that will provide
19    accessibility to purchasers as required by the Americans
20    with Disabilities Act;
21        (22) A detailed description of air treatment systems
22    that will be installed to reduce odors;
23        (23) A reasonable assurance that the issuance of a
24    license will not have a detrimental impact on the
25    community in which the applicant wishes to locate;
26        (24) The dated signature of each principal officer;

 

 

HB1500- 13 -LRB103 05064 CPF 50078 b

1        (25) A description of the enclosed, locked facility
2    where cannabis will be stored by the dispensing
3    organization;
4        (26) Signed statements from each dispensing
5    organization agent stating that he or she will not divert
6    cannabis;
7        (27) The number of licenses it is applying for in each
8    BLS Region;
9        (28) A diversity plan that includes a narrative of at
10    least 2,500 words that establishes a goal of diversity in
11    ownership, management, employment, and contracting to
12    ensure that diverse participants and groups are afforded
13    equality of opportunity;
14        (29) A contract with a private security contractor
15    agency that is licensed under Section 10-5 of the Private
16    Detective, Private Alarm, Private Security, Fingerprint
17    Vendor, and Locksmith Act of 2004 in order for the
18    dispensary to have adequate security at its facility; and
19        (30) Other information deemed necessary by the
20    Illinois Cannabis Regulation Oversight Officer to conduct
21    the disparity and availability study referenced in
22    subsection (e) of Section 5-45.
23    (e) (Blank). An applicant who receives a Conditional Adult
24Use Dispensing Organization License under this Section has 180
25days from the date of award to identify a physical location for
26the dispensing organization retail storefront. The applicant

 

 

HB1500- 14 -LRB103 05064 CPF 50078 b

1shall provide evidence that the location is not within 1,500
2feet of an existing dispensing organization, unless the
3applicant is a Social Equity Applicant or Social Equity
4Justice Involved Applicant located or seeking to locate within
51,500 feet of a dispensing organization licensed under Section
615-15 or Section 15-20. If an applicant is unable to find a
7suitable physical address in the opinion of the Department
8within 180 days of the issuance of the Conditional Adult Use
9Dispensing Organization License, the Department may extend the
10period for finding a physical address another 180 days if the
11Conditional Adult Use Dispensing Organization License holder
12demonstrates concrete attempts to secure a location and a
13hardship. If the Department denies the extension or the
14Conditional Adult Use Dispensing Organization License holder
15is unable to find a location or become operational within 360
16days of being awarded a conditional license, the Department
17shall rescind the conditional license and award it to the next
18highest scoring applicant in the BLS Region for which the
19license was assigned, provided the applicant receiving the
20license: (i) confirms a continued interest in operating a
21dispensing organization; (ii) can provide evidence that the
22applicant continues to meet all requirements for holding a
23Conditional Adult Use Dispensing Organization License set
24forth in this Act; and (iii) has not otherwise become
25ineligible to be awarded a dispensing organization license. If
26the new awardee is unable to accept the Conditional Adult Use

 

 

HB1500- 15 -LRB103 05064 CPF 50078 b

1Dispensing Organization License, the Department shall award
2the Conditional Adult Use Dispensing Organization License to
3the next highest scoring applicant in the same manner. The new
4awardee shall be subject to the same required deadlines as
5provided in this subsection.
6    (e-5) (Blank). If, within 180 days of being awarded a
7Conditional Adult Use Dispensing Organization License, a
8dispensing organization is unable to find a location within
9the BLS Region in which it was awarded a Conditional Adult Use
10Dispensing Organization License because no jurisdiction within
11the BLS Region allows for the operation of an Adult Use
12Dispensing Organization, the Department of Financial and
13Professional Regulation may authorize the Conditional Adult
14Use Dispensing Organization License holder to transfer its
15license to a BLS Region specified by the Department.
16    (e-10) The Department shall verify that the physical
17location of an applicant's dispensing organization retail
18storefront is suitable for public access, its layout promotes
19the safe dispensing of cannabis, and its location is
20sufficient in size, power allocation, lighting, parking,
21handicapped accessible parking spaces, accessible entry and
22exits as required by the federal Americans with Disabilities
23Act of 1990, product handling, and storage. The applicant
24shall also provide a statement of reasonable assurance that
25the issuance of a license will not have a detrimental impact on
26the community. The applicant shall also provide evidence that

 

 

HB1500- 16 -LRB103 05064 CPF 50078 b

1the location is not within 1,500 feet of an existing
2dispensing organization.
3    (e-15) A Conditional Adult Use Dispensing Organization may
4transfer or sell its Conditional Adult Use Dispensing
5Organization License with prior Department approval. The
6approval may be withheld if the person or entity to whom the
7license is being transferred does not commit to the same or a
8similar community engagement plan provided as part of the
9Conditional Adult Use Dispensing Organization's application
10under paragraph (18) of subsection (d), and such transferee's
11license shall be conditional upon that commitment. A request
12to transfer or sell the Conditional Adult Use Dispensing
13Organization License must be on application forms provided by
14the Department. A request for approval to sell a dispensing
15organization must comply with the following:
16        (1) New application materials shall comply with this
17    Act and any rules adopted under this Act.
18        (2) Application materials shall include a change of
19    ownership fee of $5,000, to be deposited into the Cannabis
20    Regulation Fund.
21        (3) The application materials shall provide proof that
22    the transfer of ownership will not have the effect of
23    granting any owner or principal officer direct or indirect
24    ownership or control of more than 10 Adult Use Adult Use
25    Dispensing Organization Licenses or Conditional Adult Use
26    Dispensing Organization Licenses.

 

 

HB1500- 17 -LRB103 05064 CPF 50078 b

1        (4) Each proposed new principal officer shall complete
2    the proposed new principal officer application.
3        (5) If the Department approves the application
4    materials and proposed new principal officer applications,
5    it will perform an inspection before approving the sale
6    and issuing the new Adult Use Dispensing Organization
7    License or Conditional Adult Use Dispensing Organization
8    License.
9        (6) If the sale of the Adult Use Dispensing
10    Organization License or Conditional Adult Use Dispensing
11    Organization License is approved, the Department shall
12    issue a new license number and certificate to the new
13    dispensing organization. The transfer of a dispensing
14    organization's license to a Social Equity Applicant is
15    subject to all other provisions of this Act, relevant
16    provisions of the Compassionate Use of Medical Cannabis
17    Program Act, and administrative rules regarding the
18    transfer of licenses.
19    (e-20) If a Qualified Social Equity Applicant seeks to
20transfer, sell, or grant a cannabis business establishment
21license within 5 years after it was issued to a person or
22entity who does not qualify as a Social Equity Applicant, the
23transfer agreement shall require the new license holder to
24transfer into the Cannabis Business Development Fund an amount
25equal to:
26        (1) any fees that were waived by any State agency

 

 

HB1500- 18 -LRB103 05064 CPF 50078 b

1based upon the applicant's status as a Social Equity
2Applicant, if applicable;
3        (2) any outstanding amount owed by the Qualified
4Social Equity Applicant on a loan through the Cannabis
5Business Development Fund, if applicable; and
6        (3) the full amount of any grants that the Qualified
7Social Equity Applicant received from the Department of
8Commerce and Economic Opportunity, if applicable.
9    (f) A dispensing organization that is awarded a
10Conditional Adult Use Dispensing Organization License pursuant
11to the criteria in Section 15-30 shall not purchase, possess,
12sell, or dispense cannabis or cannabis-infused products until
13the person has received an Adult Use Dispensing Organization
14License issued by the Department pursuant to Section 15-36 of
15this Act.
16    (g) The Department shall conduct a background check of the
17prospective organization agents in order to carry out this
18Article. The Illinois State Police shall charge the applicant
19a fee for conducting the criminal history record check, which
20shall be deposited into the State Police Services Fund and
21shall not exceed the actual cost of the record check. Each
22person applying as a dispensing organization agent shall
23submit a full set of fingerprints to the Illinois State Police
24for the purpose of obtaining a State and federal criminal
25records check. These fingerprints shall be checked against the
26fingerprint records now and hereafter, to the extent allowed

 

 

HB1500- 19 -LRB103 05064 CPF 50078 b

1by law, filed in the Illinois State Police and Federal Bureau
2of Identification criminal history records databases. The
3Illinois State Police shall furnish, following positive
4identification, all Illinois conviction information to the
5Department.
6(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
7102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
85-13-22.)
 
9    (410 ILCS 130/100 rep.)
10    Section 20. The Compassionate Use of Medical Cannabis
11Program Act is amended by repealing Section 100.
 
12    (410 ILCS 705/5-15 rep.)
13    (410 ILCS 705/5-25 rep.)
14    (410 ILCS 705/5-30 rep.)
15    (410 ILCS 705/5-45 rep.)
16    Section 25. The Cannabis Regulation and Tax Act is amended
17by repealing Sections 5-15, 5-25, 5-30, and 5-45.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

HB1500- 20 -LRB103 05064 CPF 50078 b

1 INDEX
2 Statutes amended in order of appearance
3    410 ILCS 130/103 new
4    410 ILCS 705/5-10
5    410 ILCS 705/5-22 new
6    410 ILCS 705/5-23 new
7    410 ILCS 705/15-5
8    410 ILCS 705/15-25
9    410 ILCS 130/100 rep.
10    410 ILCS 705/5-15 rep.
11    410 ILCS 705/5-25 rep.
12    410 ILCS 705/5-30 rep.
13    410 ILCS 705/5-45 rep.