103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2812

 

Introduced 2/16/2023, by Rep. Bob Morgan - Kelly M. Cassidy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-10
410 ILCS 130/105
410 ILCS 705/55-21

    Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a medical cannabis container shall be compliant with standards established by the Consumer Product Safety Commission, unless the medical cannabis container carries a warning that it is not recommended for use in households with children. Amends the Use Tax Act and the Cannabis Regulation and Tax Act to make corresponding changes.


LRB103 29816 CPF 56224 b

 

 

A BILL FOR

 

HB2812LRB103 29816 CPF 56224 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Use Tax Act is amended by changing Section
53-10 as follows:
 
6    (35 ILCS 105/3-10)
7    Sec. 3-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9either the selling price or the fair market value, if any, of
10the tangible personal property. In all cases where property
11functionally used or consumed is the same as the property that
12was purchased at retail, then the tax is imposed on the selling
13price of the property. In all cases where property
14functionally used or consumed is a by-product or waste product
15that has been refined, manufactured, or produced from property
16purchased at retail, then the tax is imposed on the lower of
17the fair market value, if any, of the specific property so used
18in this State or on the selling price of the property purchased
19at retail. For purposes of this Section "fair market value"
20means the price at which property would change hands between a
21willing buyer and a willing seller, neither being under any
22compulsion to buy or sell and both having reasonable knowledge
23of the relevant facts. The fair market value shall be

 

 

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1established by Illinois sales by the taxpayer of the same
2property as that functionally used or consumed, or if there
3are no such sales by the taxpayer, then comparable sales or
4purchases of property of like kind and character in Illinois.
5    Beginning on July 1, 2000 and through December 31, 2000,
6with respect to motor fuel, as defined in Section 1.1 of the
7Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
8the Use Tax Act, the tax is imposed at the rate of 1.25%.
9    Beginning on August 6, 2010 through August 15, 2010, and
10beginning again on August 5, 2022 through August 14, 2022,
11with respect to sales tax holiday items as defined in Section
123-6 of this Act, the tax is imposed at the rate of 1.25%.
13    With respect to gasohol, the tax imposed by this Act
14applies to (i) 70% of the proceeds of sales made on or after
15January 1, 1990, and before July 1, 2003, (ii) 80% of the
16proceeds of sales made on or after July 1, 2003 and on or
17before July 1, 2017, and (iii) 100% of the proceeds of sales
18made thereafter. If, at any time, however, the tax under this
19Act on sales of gasohol is imposed at the rate of 1.25%, then
20the tax imposed by this Act applies to 100% of the proceeds of
21sales of gasohol made during that time.
22    With respect to majority blended ethanol fuel, the tax
23imposed by this Act does not apply to the proceeds of sales
24made on or after July 1, 2003 and on or before December 31,
252023 but applies to 100% of the proceeds of sales made
26thereafter.

 

 

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1    With respect to biodiesel blends with no less than 1% and
2no more than 10% biodiesel, the tax imposed by this Act applies
3to (i) 80% of the proceeds of sales made on or after July 1,
42003 and on or before December 31, 2018 and (ii) 100% of the
5proceeds of sales made after December 31, 2018 and before
6January 1, 2024. On and after January 1, 2024 and on or before
7December 31, 2030, the taxation of biodiesel, renewable
8diesel, and biodiesel blends shall be as provided in Section
93-5.1. If, at any time, however, the tax under this Act on
10sales of biodiesel blends with no less than 1% and no more than
1110% biodiesel is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the proceeds of sales of
13biodiesel blends with no less than 1% and no more than 10%
14biodiesel made during that time.
15    With respect to biodiesel and biodiesel blends with more
16than 10% but no more than 99% biodiesel, the tax imposed by
17this Act does not apply to the proceeds of sales made on or
18after July 1, 2003 and on or before December 31, 2023. On and
19after January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1.
22    Until July 1, 2022 and beginning again on July 1, 2023,
23with respect to food for human consumption that is to be
24consumed off the premises where it is sold (other than
25alcoholic beverages, food consisting of or infused with adult
26use cannabis, soft drinks, and food that has been prepared for

 

 

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1immediate consumption), the tax is imposed at the rate of 1%.
2Beginning on July 1, 2022 and until July 1, 2023, with respect
3to food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages,
5food consisting of or infused with adult use cannabis, soft
6drinks, and food that has been prepared for immediate
7consumption), the tax is imposed at the rate of 0%.
8    With respect to prescription and nonprescription
9medicines, drugs, medical appliances, products classified as
10Class III medical devices by the United States Food and Drug
11Administration that are used for cancer treatment pursuant to
12a prescription, as well as any accessories and components
13related to those devices, modifications to a motor vehicle for
14the purpose of rendering it usable by a person with a
15disability, and insulin, blood sugar testing materials,
16syringes, and needles used by human diabetics, the tax is
17imposed at the rate of 1%. For the purposes of this Section,
18until September 1, 2009: the term "soft drinks" means any
19complete, finished, ready-to-use, non-alcoholic drink, whether
20carbonated or not, including, but not limited to, soda water,
21cola, fruit juice, vegetable juice, carbonated water, and all
22other preparations commonly known as soft drinks of whatever
23kind or description that are contained in any closed or sealed
24bottle, can, carton, or container, regardless of size; but
25"soft drinks" does not include coffee, tea, non-carbonated
26water, infant formula, milk or milk products as defined in the

 

 

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1Grade A Pasteurized Milk and Milk Products Act, or drinks
2containing 50% or more natural fruit or vegetable juice.
3    Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "soft drinks" means non-alcoholic
5beverages that contain natural or artificial sweeteners. "Soft
6drinks" does do not include beverages that contain milk or
7milk products, soy, rice or similar milk substitutes, or
8greater than 50% of vegetable or fruit juice by volume.
9    Until August 1, 2009, and notwithstanding any other
10provisions of this Act, "food for human consumption that is to
11be consumed off the premises where it is sold" includes all
12food sold through a vending machine, except soft drinks and
13food products that are dispensed hot from a vending machine,
14regardless of the location of the vending machine. Beginning
15August 1, 2009, and notwithstanding any other provisions of
16this Act, "food for human consumption that is to be consumed
17off the premises where it is sold" includes all food sold
18through a vending machine, except soft drinks, candy, and food
19products that are dispensed hot from a vending machine,
20regardless of the location of the vending machine.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "food for human consumption that
23is to be consumed off the premises where it is sold" does not
24include candy. For purposes of this Section, "candy" means a
25preparation of sugar, honey, or other natural or artificial
26sweeteners in combination with chocolate, fruits, nuts or

 

 

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1other ingredients or flavorings in the form of bars, drops, or
2pieces. "Candy" does not include any preparation that contains
3flour or requires refrigeration.
4    Notwithstanding any other provisions of this Act,
5beginning September 1, 2009, "nonprescription medicines and
6drugs" does not include grooming and hygiene products. For
7purposes of this Section, "grooming and hygiene products"
8includes, but is not limited to, soaps and cleaning solutions,
9shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
10lotions and screens, unless those products are available by
11prescription only, regardless of whether the products meet the
12definition of "over-the-counter-drugs". For the purposes of
13this paragraph, "over-the-counter-drug" means a drug for human
14use that contains a label that identifies the product as a drug
15as required by 21 CFR C.F.R. 201.66. The
16"over-the-counter-drug" label includes:
17        (A) a A "Drug Facts" panel; or
18        (B) a A statement of the "active ingredient(s)" with a
19    list of those ingredients contained in the compound,
20    substance or preparation.
21    "Prescription Beginning on the effective date of this
22amendatory Act of the 98th General Assembly, "prescription and
23nonprescription medicines and drugs" includes medical cannabis
24purchased by a qualifying patient or a designated caregiver
25from a registered dispensing organization under the
26Compassionate Use of Medical Cannabis Program Act or a

 

 

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1secondary site dispensary or dispensary under the Cannabis
2Regulation and Tax Act.
3    As used in this Section, "adult use cannabis" means
4cannabis subject to tax under the Cannabis Cultivation
5Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
6and does not include cannabis subject to tax under the
7Compassionate Use of Medical Cannabis Program Act.
8    If the property that is purchased at retail from a
9retailer is acquired outside Illinois and used outside
10Illinois before being brought to Illinois for use here and is
11taxable under this Act, the "selling price" on which the tax is
12computed shall be reduced by an amount that represents a
13reasonable allowance for depreciation for the period of prior
14out-of-state use.
15(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
16102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
174-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
18102-700, Article 65, Section 65-5, eff. 4-19-22; revised
195-27-22.)
 
20    Section 10. The Compassionate Use of Medical Cannabis
21Program Act is amended by changing Section 105 as follows:
 
22    (410 ILCS 130/105)
23    Sec. 105. Requirements; prohibitions; penalties for
24cultivation centers.

 

 

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1    (a) The operating documents of a registered cultivation
2center shall include procedures for the oversight of the
3cultivation center, a cannabis plant monitoring system
4including a physical inventory recorded weekly, a cannabis
5container system including a physical inventory recorded
6weekly, accurate record keeping, and a staffing plan.
7    (b) A registered cultivation center shall implement a
8security plan reviewed by the Illinois State Police and
9including but not limited to: facility access controls,
10perimeter intrusion detection systems, personnel
11identification systems, 24-hour surveillance system to monitor
12the interior and exterior of the registered cultivation center
13facility and accessible to authorized law enforcement and the
14Department of Agriculture in real-time.
15    (c) A registered cultivation center may not be located
16within 2,500 feet of the property line of a pre-existing
17public or private preschool or elementary or secondary school
18or day care center, day care home, group day care home, part
19day child care facility, or an area zoned for residential use.
20    (d) All cultivation of cannabis for distribution to a
21registered dispensing organization must take place in an
22enclosed, locked facility as it applies to cultivation centers
23at the physical address provided to the Department of
24Agriculture during the registration process. The cultivation
25center location shall only be accessed by the cultivation
26center agents working for the registered cultivation center,

 

 

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1Department of Agriculture staff performing inspections,
2Department of Public Health staff performing inspections, law
3enforcement or other emergency personnel, and contractors
4working on jobs unrelated to medical cannabis, such as
5installing or maintaining security devices or performing
6electrical wiring.
7    (e) A cultivation center may not sell or distribute any
8cannabis to any individual or entity other than another
9cultivation center, a dispensing organization registered under
10this Act, or a laboratory licensed by the Department of
11Agriculture.
12    (f) All harvested cannabis intended for distribution to a
13dispensing organization must be packaged in a labeled medical
14cannabis container and entered into a data collection system.
15A medical cannabis container shall be compliant with standards
16established by the Consumer Product Safety Commission, unless
17the medical cannabis container carries a warning that it is
18not recommended for use in households with children.
19    (g) No person who has been convicted of an excluded
20offense may be a cultivation center agent.
21    (h) Registered cultivation centers are subject to random
22inspection by the Illinois State Police.
23    (i) Registered cultivation centers are subject to random
24inspections by the Department of Agriculture and the
25Department of Public Health.
26    (j) A cultivation center agent shall notify local law

 

 

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1enforcement, the Illinois State Police, and the Department of
2Agriculture within 24 hours of the discovery of any loss or
3theft. Notification shall be made by phone or in-person, or by
4written or electronic communication.
5    (k) A cultivation center shall comply with all State and
6federal rules and regulations regarding the use of pesticides.
7(Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)
 
8    Section 15. The Cannabis Regulation and Tax Act is amended
9by changing Section 55-21 as follows:
 
10    (410 ILCS 705/55-21)
11    Sec. 55-21. Cannabis product packaging and labeling.
12    (a) Each cannabis product produced for sale shall be
13registered with the Department of Agriculture on forms
14provided by the Department of Agriculture. Each product
15registration shall include a label and the required
16registration fee at the rate established by the Department of
17Agriculture for a comparable medical cannabis product, or as
18established by rule. The registration fee is for the name of
19the product offered for sale and one fee shall be sufficient
20for all package sizes.
21    (b) All harvested cannabis intended for distribution to a
22cannabis enterprise must be packaged in a sealed, labeled
23container.
24    (c) Any product containing cannabis shall be sold in a

 

 

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1sealed, odor-proof, and child-resistant cannabis container
2consistent with current standards, including the Consumer
3Product Safety Commission standards referenced by the Poison
4Prevention Act unless the sale is between or among a craft
5grower, infuser, or cultivation center or the medical cannabis
6container carries a warning that it is not recommended for use
7in households with children.
8    (d) All cannabis-infused products shall be individually
9wrapped or packaged at the original point of preparation. The
10packaging of the cannabis-infused product shall conform to the
11labeling requirements of the Illinois Food, Drug and Cosmetic
12Act, in addition to the other requirements set forth in this
13Section.
14    (e) Each cannabis product shall be labeled before sale and
15each label shall be securely affixed to the package and shall
16state in legible English and any languages required by the
17Department of Agriculture:
18        (1) the name and post office box of the registered
19    cultivation center or craft grower where the item was
20    manufactured;
21        (2) the common or usual name of the item and the
22    registered name of the cannabis product that was
23    registered with the Department of Agriculture under
24    subsection (a);
25        (3) a unique serial number that will match the product
26    with a cultivation center or craft grower batch and lot

 

 

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

 

 

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1        percentage printed on the label for any of
2        subdivisions (e)(8)(A)(i) through (iv) shall not be
3        below 85% or above 115% of the labeled amount.
4    (f) Packaging must not contain information that:
5        (1) is false or misleading;
6        (2) promotes excessive consumption;
7        (3) depicts a person under 21 years of age consuming
8    cannabis;
9        (4) includes the image of a cannabis leaf;
10        (5) includes any image designed or likely to appeal to
11    minors, including cartoons, toys, animals, or children, or
12    any other likeness to images, characters, or phrases that
13    are popularly used to advertise to children, or any
14    packaging or labeling that bears reasonable resemblance to
15    any product available for consumption as a commercially
16    available candy, or that promotes consumption of cannabis;
17        (6) contains any seal, flag, crest, coat of arms, or
18    other insignia likely to mislead the purchaser to believe
19    that the product has been endorsed, made, or used by the
20    State of Illinois or any of its representatives except
21    where authorized by this Act.
22    (g) Cannabis products produced by concentrating or
23extracting ingredients from the cannabis plant shall contain
24the following information, where applicable:
25        (1) If solvents were used to create the concentrate or
26    extract, a statement that discloses the type of extraction

 

 

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

 

 

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1    statement that "Smoking is hazardous to your health.".
2        (2) Cannabis-infused products (other than those
3    intended for topical application) must contain a statement
4    "CAUTION: This product contains cannabis, and intoxication
5    following use may be delayed 2 or more hours. This product
6    was produced in a facility that cultivates cannabis, and
7    that may also process common food allergens.".
8        (3) Cannabis-infused products intended for topical
9    application must contain a statement "DO NOT EAT" in bold,
10    capital letters.
11    (k) Each cannabis-infused product intended for consumption
12must be individually packaged, must include the total
13milligram content of THC and CBD, and may not include more than
14a total of 100 milligrams of THC per package. A package may
15contain multiple servings of 10 milligrams of THC, indicated
16by scoring, wrapping, or by other indicators designating
17individual serving sizes. The Department of Agriculture may
18change the total amount of THC allowed for each package, or the
19total amount of THC allowed for each serving size, by rule.
20    (l) No individual other than the purchaser may alter or
21destroy any labeling affixed to the primary packaging of
22cannabis or cannabis-infused products.
23    (m) For each commercial weighing and measuring device used
24at a facility, the cultivation center or craft grower must:
25        (1) Ensure that the commercial device is licensed
26    under the Weights and Measures Act and the associated

 

 

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1    administrative rules (8 Ill. Adm. Code 600);
2        (2) Maintain documentation of the licensure of the
3    commercial device; and
4        (3) Provide a copy of the license of the commercial
5    device to the Department of Agriculture for review upon
6    request.
7    (n) It is the responsibility of the Department to ensure
8that packaging and labeling requirements, including product
9warnings, are enforced at all times for products provided to
10purchasers. Product registration requirements and container
11requirements may be modified by rule by the Department of
12Agriculture.
13    (o) Labeling, including warning labels, may be modified by
14rule by the Department of Agriculture.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
16102-98, eff. 7-15-21.)