103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4164

 

Introduced , by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 100/5-45.35 new
410 ILCS 705/1-10
410 ILCS 705/5-10
410 ILCS 705/20-30
410 ILCS 705/30-30
410 ILCS 705/35-25
410 ILCS 705/40-5
410 ILCS 705/40-25

    Amends the Cannabis Regulation and Tax Act. Provides that by January 1, 2024, the Department of Agriculture shall adopt emergency rules and begin accepting applications for the conversion of transporting organization licenses to third-party transporting organization licenses. Provides that there shall be no applicable fees for the conversion application process, and the Department shall process these applications and convert qualifying transporting organization licenses to third-party transporting organization licenses within 60 days after application submission. Provides that third-party transporting organizations are subject to the same standards and requirements for transporting organizations under the Act. Provides that a cultivation center, craft grower, infuser, or infuser agent shall not transport cannabis or cannabis-infused products and shall use third-party transporting organizations for all transports authorized under the Act, unless (1) the licensee possesses a transporting organization license, (2) the licensee requires delivery within 36 hours, and (3) the licensee has offered a right of first refusal to all third-party transporting organizations and confirmed there are no available third-party transporting organizations to complete the delivery. Amends the Illinois Administrative Procedure Act to make a conforming change. Effective immediately.


LRB103 34582 RPS 64420 b

 

 

A BILL FOR

 

HB4164LRB103 34582 RPS 64420 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Administrative Procedure Act is
5amended by adding Section 5-45.35 as follows:
 
6    (5 ILCS 100/5-45.35 new)
7    Sec. 5-45.35. Emergency rulemaking; third-party
8transporting organization. To provide for the expeditious and
9timely implementation of this amendatory Act of the 103rd
10General Assembly, emergency rules implementing this amendatory
11Act of the 103rd General Assembly may be adopted in accordance
12with Section 5-45 by the Department of Agriculture. The
13adoption of emergency rules authorized by Section 5-45 and
14this Section is deemed to be necessary for the public
15interest, safety, and welfare.
16    This Section is repealed one year after the effective date
17of this amendatory Act of the 103rd General Assembly.
 
18    Section 10. The Cannabis Regulation and Tax Act is amended
19by changing Sections 1-10, 5-10, 20-30, 30-30, 35-25, 40-5,
20and 40-25 as follows:
 
21    (410 ILCS 705/1-10)

 

 

HB4164- 2 -LRB103 34582 RPS 64420 b

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

 

 

HB4164- 3 -LRB103 34582 RPS 64420 b

1Rockford, St. Louis, Springfield, Northwest Illinois
2nonmetropolitan area, West Central Illinois nonmetropolitan
3area, East Central Illinois nonmetropolitan area, and South
4Illinois nonmetropolitan area.
5    "By lot" means a randomized method of choosing between 2
6or more Eligible Tied Applicants or 2 or more Qualifying
7Applicants.
8    "Cannabis" means marijuana, hashish, and other substances
9that are identified as including any parts of the plant
10Cannabis sativa and including derivatives or subspecies, such
11as indica, of all strains of cannabis, whether growing or not;
12the seeds thereof, the resin extracted from any part of the
13plant; and any compound, manufacture, salt, derivative,
14mixture, or preparation of the plant, its seeds, or resin,
15including tetrahydrocannabinol (THC) and all other naturally
16produced cannabinol derivatives, whether produced directly or
17indirectly by extraction; however, "cannabis" does not include
18the mature stalks of the plant, fiber produced from the
19stalks, oil or cake made from the seeds of the plant, any other
20compound, manufacture, salt, derivative, mixture, or
21preparation of the mature stalks (except the resin extracted
22from it), fiber, oil or cake, or the sterilized seed of the
23plant that is incapable of germination. "Cannabis" does not
24include industrial hemp as defined and authorized under the
25Industrial Hemp Act. "Cannabis" also means cannabis flower,
26concentrate, and cannabis-infused products.

 

 

HB4164- 4 -LRB103 34582 RPS 64420 b

1    "Cannabis business establishment" means a cultivation
2center, craft grower, processing organization, infuser
3organization, dispensing organization, or transporting
4organization.
5    "Cannabis concentrate" means a product derived from
6cannabis that is produced by extracting cannabinoids,
7including tetrahydrocannabinol (THC), from the plant through
8the use of propylene glycol, glycerin, butter, olive oil, or
9other typical cooking fats; water, ice, or dry ice; or butane,
10propane, CO2, ethanol, or isopropanol and with the intended
11use of smoking or making a cannabis-infused product. The use
12of any other solvent is expressly prohibited unless and until
13it is approved by the Department of Agriculture.
14    "Cannabis container" means a sealed or resealable,
15traceable, container, or package used for the purpose of
16containment of cannabis or cannabis-infused product during
17transportation.
18    "Cannabis flower" means marijuana, hashish, and other
19substances that are identified as including any parts of the
20plant Cannabis sativa and including derivatives or subspecies,
21such as indica, of all strains of cannabis; including raw
22kief, leaves, and buds, but not resin that has been extracted
23from any part of such plant; nor any compound, manufacture,
24salt, derivative, mixture, or preparation of such plant, its
25seeds, or resin.
26    "Cannabis-infused product" means a beverage, food, oil,

 

 

HB4164- 5 -LRB103 34582 RPS 64420 b

1ointment, tincture, topical formulation, or another product
2containing cannabis or cannabis concentrate that is not
3intended to be smoked.
4    "Cannabis paraphernalia" means equipment, products, or
5materials intended to be used for planting, propagating,
6cultivating, growing, harvesting, manufacturing, producing,
7processing, preparing, testing, analyzing, packaging,
8repackaging, storing, containing, concealing, ingesting, or
9otherwise introducing cannabis into the human body.
10    "Cannabis plant monitoring system" or "plant monitoring
11system" means a system that includes, but is not limited to,
12testing and data collection established and maintained by the
13cultivation center, craft grower, or processing organization
14and that is available to the Department of Revenue, the
15Department of Agriculture, the Department of Financial and
16Professional Regulation, and the Illinois State Police for the
17purposes of documenting each cannabis plant and monitoring
18plant development throughout the life cycle of a cannabis
19plant cultivated for the intended use by a customer from seed
20planting to final packaging.
21    "Cannabis testing facility" means an entity registered by
22the Department of Agriculture to test cannabis for potency and
23contaminants.
24    "Clone" means a plant section from a female cannabis plant
25not yet rootbound, growing in a water solution or other
26propagation matrix, that is capable of developing into a new

 

 

HB4164- 6 -LRB103 34582 RPS 64420 b

1plant.
2    "Community College Cannabis Vocational Training Pilot
3Program faculty participant" means a person who is 21 years of
4age or older, licensed by the Department of Agriculture, and
5is employed or contracted by an Illinois community college to
6provide student instruction using cannabis plants at an
7Illinois Community College.
8    "Community College Cannabis Vocational Training Pilot
9Program faculty participant Agent Identification Card" means a
10document issued by the Department of Agriculture that
11identifies a person as a Community College Cannabis Vocational
12Training Pilot Program faculty participant.
13    "Conditional Adult Use Dispensing Organization License"
14means a contingent license awarded to applicants for an Adult
15Use Dispensing Organization License that reserves the right to
16an Adult Use Dispensing Organization License if the applicant
17meets certain conditions described in this Act, but does not
18entitle the recipient to begin purchasing or selling cannabis
19or cannabis-infused products.
20    "Conditional Adult Use Cultivation Center License" means a
21license awarded to top-scoring applicants for an Adult Use
22Cultivation Center License that reserves the right to an Adult
23Use Cultivation Center License if the applicant meets certain
24conditions as determined by the Department of Agriculture by
25rule, but does not entitle the recipient to begin growing,
26processing, or selling cannabis or cannabis-infused products.

 

 

HB4164- 7 -LRB103 34582 RPS 64420 b

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

 

 

HB4164- 8 -LRB103 34582 RPS 64420 b

1    "Cultivation center" means a facility operated by an
2organization or business that is licensed by the Department of
3Agriculture to cultivate, process, transport (unless otherwise
4limited by this Act), and perform other necessary activities
5to provide cannabis and cannabis-infused products to cannabis
6business establishments.
7    "Cultivation center agent" means a principal officer,
8board member, employee, or other agent of a cultivation center
9who is 21 years of age or older.
10    "Cultivation Center Agent Identification Card" means a
11document issued by the Department of Agriculture that
12identifies a person as a cultivation center agent.
13    "Currency" means currency and coin of the United States.
14    "Dispensary" means a facility operated by a dispensing
15organization at which activities licensed by this Act may
16occur.
17    "Dispensary Applicant" means the Proposed Dispensing
18Organization Name as stated on an application for a
19Conditional Adult Use Dispensing Organization License.
20    "Dispensing organization" means a facility operated by an
21organization or business that is licensed by the Department of
22Financial and Professional Regulation to acquire cannabis from
23a cultivation center, craft grower, processing organization,
24or another dispensary for the purpose of selling or dispensing
25cannabis, cannabis-infused products, cannabis seeds,
26paraphernalia, or related supplies under this Act to

 

 

HB4164- 9 -LRB103 34582 RPS 64420 b

1purchasers or to qualified registered medical cannabis
2patients and caregivers. As used in this Act, "dispensing
3organization" includes a registered medical cannabis
4organization as defined in the Compassionate Use of Medical
5Cannabis Program Act or its successor Act that has obtained an
6Early Approval Adult Use Dispensing Organization License.
7    "Dispensing organization agent" means a principal officer,
8employee, or agent of a dispensing organization who is 21
9years of age or older.
10    "Dispensing organization agent identification card" means
11a document issued by the Department of Financial and
12Professional Regulation that identifies a person as a
13dispensing organization agent.
14    "Disproportionately Impacted Area" means a census tract or
15comparable geographic area that satisfies the following
16criteria as determined by the Department of Commerce and
17Economic Opportunity, that:
18        (1) meets at least one of the following criteria:
19            (A) the area has a poverty rate of at least 20%
20        according to the latest federal decennial census; or
21            (B) 75% or more of the children in the area
22        participate in the federal free lunch program
23        according to reported statistics from the State Board
24        of Education; or
25            (C) at least 20% of the households in the area
26        receive assistance under the Supplemental Nutrition

 

 

HB4164- 10 -LRB103 34582 RPS 64420 b

1        Assistance Program; or
2            (D) the area has an average unemployment rate, as
3        determined by the Illinois Department of Employment
4        Security, that is more than 120% of the national
5        unemployment average, as determined by the United
6        States Department of Labor, for a period of at least 2
7        consecutive calendar years preceding the date of the
8        application; and
9        (2) has high rates of arrest, conviction, and
10    incarceration related to the sale, possession, use,
11    cultivation, manufacture, or transport of cannabis.
12    "Early Approval Adult Use Cultivation Center License"
13means a license that permits a medical cannabis cultivation
14center licensed under the Compassionate Use of Medical
15Cannabis Program Act as of the effective date of this Act to
16begin cultivating, infusing, packaging, transporting (unless
17otherwise provided in this Act), processing, and selling
18cannabis or cannabis-infused product to cannabis business
19establishments for resale to purchasers as permitted by this
20Act as of January 1, 2020.
21    "Early Approval Adult Use Dispensing Organization License"
22means a license that permits a medical cannabis dispensing
23organization licensed under the Compassionate Use of Medical
24Cannabis Program Act as of the effective date of this Act to
25begin selling cannabis or cannabis-infused product to
26purchasers as permitted by this Act as of January 1, 2020.

 

 

HB4164- 11 -LRB103 34582 RPS 64420 b

1    "Early Approval Adult Use Dispensing Organization at a
2secondary site" means a license that permits a medical
3cannabis dispensing organization licensed under the
4Compassionate Use of Medical Cannabis Program Act as of the
5effective date of this Act to begin selling cannabis or
6cannabis-infused product to purchasers as permitted by this
7Act on January 1, 2020 at a different dispensary location from
8its existing registered medical dispensary location.
9    "Eligible Tied Applicant" means a Tied Applicant that is
10eligible to participate in the process by which a remaining
11available license is distributed by lot pursuant to a Tied
12Applicant Lottery.
13    "Enclosed, locked facility" means a room, greenhouse,
14building, or other enclosed area equipped with locks or other
15security devices that permit access only by cannabis business
16establishment agents working for the licensed cannabis
17business establishment or acting pursuant to this Act to
18cultivate, process, store, or distribute cannabis.
19    "Enclosed, locked space" means a closet, room, greenhouse,
20building, or other enclosed area equipped with locks or other
21security devices that permit access only by authorized
22individuals under this Act. "Enclosed, locked space" may
23include:
24        (1) a space within a residential building that (i) is
25    the primary residence of the individual cultivating 5 or
26    fewer cannabis plants that are more than 5 inches tall and

 

 

HB4164- 12 -LRB103 34582 RPS 64420 b

1    (ii) includes sleeping quarters and indoor plumbing. The
2    space must only be accessible by a key or code that is
3    different from any key or code that can be used to access
4    the residential building from the exterior; or
5        (2) a structure, such as a shed or greenhouse, that
6    lies on the same plot of land as a residential building
7    that (i) includes sleeping quarters and indoor plumbing
8    and (ii) is used as a primary residence by the person
9    cultivating 5 or fewer cannabis plants that are more than
10    5 inches tall, such as a shed or greenhouse. The structure
11    must remain locked when it is unoccupied by people.
12    "Financial institution" has the same meaning as "financial
13organization" as defined in Section 1501 of the Illinois
14Income Tax Act, and also includes the holding companies,
15subsidiaries, and affiliates of such financial organizations.
16    "Flowering stage" means the stage of cultivation where and
17when a cannabis plant is cultivated to produce plant material
18for cannabis products. This includes mature plants as follows:
19        (1) if greater than 2 stigmas are visible at each
20    internode of the plant; or
21        (2) if the cannabis plant is in an area that has been
22    intentionally deprived of light for a period of time
23    intended to produce flower buds and induce maturation,
24    from the moment the light deprivation began through the
25    remainder of the marijuana plant growth cycle.
26    "Individual" means a natural person.

 

 

HB4164- 13 -LRB103 34582 RPS 64420 b

1    "Infuser organization" or "infuser" means a facility
2operated by an organization or business that is licensed by
3the Department of Agriculture to directly incorporate cannabis
4or cannabis concentrate into a product formulation to produce
5a cannabis-infused product.
6    "Kief" means the resinous crystal-like trichomes that are
7found on cannabis and that are accumulated, resulting in a
8higher concentration of cannabinoids, untreated by heat or
9pressure, or extracted using a solvent.
10    "Labor peace agreement" means an agreement between a
11cannabis business establishment and any labor organization
12recognized under the National Labor Relations Act, referred to
13in this Act as a bona fide labor organization, that prohibits
14labor organizations and members from engaging in picketing,
15work stoppages, boycotts, and any other economic interference
16with the cannabis business establishment. This agreement means
17that the cannabis business establishment has agreed not to
18disrupt efforts by the bona fide labor organization to
19communicate with, and attempt to organize and represent, the
20cannabis business establishment's employees. The agreement
21shall provide a bona fide labor organization access at
22reasonable times to areas in which the cannabis business
23establishment's employees work, for the purpose of meeting
24with employees to discuss their right to representation,
25employment rights under State law, and terms and conditions of
26employment. This type of agreement shall not mandate a

 

 

HB4164- 14 -LRB103 34582 RPS 64420 b

1particular method of election or certification of the bona
2fide labor organization.
3    "Limited access area" means a room or other area under the
4control of a cannabis dispensing organization licensed under
5this Act and upon the licensed premises where cannabis sales
6occur with access limited to purchasers, dispensing
7organization owners and other dispensing organization agents,
8or service professionals conducting business with the
9dispensing organization, or, if sales to registered qualifying
10patients, caregivers, provisional patients, and Opioid
11Alternative Pilot Program participants licensed pursuant to
12the Compassionate Use of Medical Cannabis Program Act are also
13permitted at the dispensary, registered qualifying patients,
14caregivers, provisional patients, and Opioid Alternative Pilot
15Program participants.
16    "Member of an impacted family" means an individual who has
17a parent, legal guardian, child, spouse, or dependent, or was
18a dependent of an individual who, prior to the effective date
19of this Act, was arrested for, convicted of, or adjudicated
20delinquent for any offense that is eligible for expungement
21under this Act.
22    "Mother plant" means a cannabis plant that is cultivated
23or maintained for the purpose of generating clones, and that
24will not be used to produce plant material for sale to an
25infuser or dispensing organization.
26    "Ordinary public view" means within the sight line with

 

 

HB4164- 15 -LRB103 34582 RPS 64420 b

1normal visual range of a person, unassisted by visual aids,
2from a public street or sidewalk adjacent to real property, or
3from within an adjacent property.
4    "Ownership and control" means ownership of at least 51% of
5the business, including corporate stock if a corporation, and
6control over the management and day-to-day operations of the
7business and an interest in the capital, assets, and profits
8and losses of the business proportionate to percentage of
9ownership.
10    "Person" means a natural individual, firm, partnership,
11association, joint stock company, joint venture, public or
12private corporation, limited liability company, or a receiver,
13executor, trustee, guardian, or other representative appointed
14by order of any court.
15    "Possession limit" means the amount of cannabis under
16Section 10-10 that may be possessed at any one time by a person
1721 years of age or older or who is a registered qualifying
18medical cannabis patient or caregiver under the Compassionate
19Use of Medical Cannabis Program Act.
20    "Principal officer" includes a cannabis business
21establishment applicant or licensed cannabis business
22establishment's board member, owner with more than 1% interest
23of the total cannabis business establishment or more than 5%
24interest of the total cannabis business establishment of a
25publicly traded company, president, vice president, secretary,
26treasurer, partner, officer, member, manager member, or person

 

 

HB4164- 16 -LRB103 34582 RPS 64420 b

1with a profit sharing, financial interest, or revenue sharing
2arrangement. The definition includes a person with authority
3to control the cannabis business establishment, a person who
4assumes responsibility for the debts of the cannabis business
5establishment and who is further defined in this Act.
6    "Primary residence" means a dwelling where a person
7usually stays or stays more often than other locations. It may
8be determined by, without limitation, presence, tax filings;
9address on an Illinois driver's license, an Illinois
10Identification Card, or an Illinois Person with a Disability
11Identification Card; or voter registration. No person may have
12more than one primary residence.
13    "Processing organization" or "processor" means a facility
14operated by an organization or business that is licensed by
15the Department of Agriculture to either extract constituent
16chemicals or compounds to produce cannabis concentrate or
17incorporate cannabis or cannabis concentrate into a product
18formulation to produce a cannabis product.
19    "Processing organization agent" means a principal officer,
20board member, employee, or agent of a processing organization.
21    "Processing organization agent identification card" means
22a document issued by the Department of Agriculture that
23identifies a person as a processing organization agent.
24    "Purchaser" means a person 21 years of age or older who
25acquires cannabis for a valuable consideration. "Purchaser"
26does not include a cardholder under the Compassionate Use of

 

 

HB4164- 17 -LRB103 34582 RPS 64420 b

1Medical Cannabis Program Act.
2    "Qualifying Applicant" means an applicant that submitted
3an application pursuant to Section 15-30 that received at
4least 85% of 250 application points available under Section
515-30 as the applicant's final score and meets the definition
6of "Social Equity Applicant" as set forth under this Section.
7    "Qualifying Social Equity Justice Involved Applicant"
8means an applicant that submitted an application pursuant to
9Section 15-30 that received at least 85% of 250 application
10points available under Section 15-30 as the applicant's final
11score and meets the criteria of either paragraph (1) or (2) of
12the definition of "Social Equity Applicant" as set forth under
13this Section.
14    "Qualified Social Equity Applicant" means a Social Equity
15Applicant who has been awarded a conditional license under
16this Act to operate a cannabis business establishment.
17    "Resided" means an individual's primary residence was
18located within the relevant geographic area as established by
192 of the following:
20        (1) a signed lease agreement that includes the
21    applicant's name;
22        (2) a property deed that includes the applicant's
23    name;
24        (3) school records;
25        (4) a voter registration card;
26        (5) an Illinois driver's license, an Illinois

 

 

HB4164- 18 -LRB103 34582 RPS 64420 b

1    Identification Card, or an Illinois Person with a
2    Disability Identification Card;
3        (6) a paycheck stub;
4        (7) a utility bill;
5        (8) tax records; or
6        (9) any other proof of residency or other information
7    necessary to establish residence as provided by rule.
8    "Smoking" means the inhalation of smoke caused by the
9combustion of cannabis.
10    "Social Equity Applicant" means an applicant that is an
11Illinois resident that meets one of the following criteria:
12        (1) an applicant with at least 51% ownership and
13    control by one or more individuals who have resided for at
14    least 5 of the preceding 10 years in a Disproportionately
15    Impacted Area;
16        (2) an applicant with at least 51% ownership and
17    control by one or more individuals who:
18            (i) have been arrested for, convicted of, or
19        adjudicated delinquent for any offense that is
20        eligible for expungement under this Act; or
21            (ii) is a member of an impacted family;
22        (3) for applicants with a minimum of 10 full-time
23    employees, an applicant with at least 51% of current
24    employees who:
25            (i) currently reside in a Disproportionately
26        Impacted Area; or

 

 

HB4164- 19 -LRB103 34582 RPS 64420 b

1            (ii) have been arrested for, convicted of, or
2        adjudicated delinquent for any offense that is
3        eligible for expungement under this Act or member of
4        an impacted family.
5    Nothing in this Act shall be construed to preempt or limit
6the duties of any employer under the Job Opportunities for
7Qualified Applicants Act. Nothing in this Act shall permit an
8employer to require an employee to disclose sealed or expunged
9offenses, unless otherwise required by law.
10    "Third-party transporting organization" means a
11transporting organization that is not owned or controlled in
12whole or in part by any other cannabis business establishment
13or individual who serves as a principal officer or who has
14ownership in or control of a cannabis business establishment
15and has been licensed by the Department of Agriculture.
16    "Tied Applicant" means an application submitted by a
17Dispensary Applicant pursuant to Section 15-30 that received
18the same number of application points under Section 15-30 as
19the Dispensary Applicant's final score as one or more
20top-scoring applications in the same BLS Region and would have
21been awarded a license but for the one or more other
22top-scoring applications that received the same number of
23application points. Each application for which a Dispensary
24Applicant was required to pay a required application fee for
25the application period ending January 2, 2020 shall be
26considered an application of a separate Tied Applicant.

 

 

HB4164- 20 -LRB103 34582 RPS 64420 b

1    "Tied Applicant Lottery" means the process established
2under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
3Use Dispensing Organization Licenses pursuant to Sections
415-25 and 15-30 among Eligible Tied Applicants.
5    "Tincture" means a cannabis-infused solution, typically
6comprised of alcohol, glycerin, or vegetable oils, derived
7either directly from the cannabis plant or from a processed
8cannabis extract. A tincture is not an alcoholic liquor as
9defined in the Liquor Control Act of 1934. A tincture shall
10include a calibrated dropper or other similar device capable
11of accurately measuring servings.
12    "Transporting organization" or "transporter" means an
13organization or business that is licensed by the Department of
14Agriculture to transport cannabis or cannabis-infused product
15on behalf of a cannabis business establishment or a community
16college licensed under the Community College Cannabis
17Vocational Training Pilot Program.
18    "Transporting organization agent" means a principal
19officer, board member, employee, or agent of a transporting
20organization.
21    "Transporting organization agent identification card"
22means a document issued by the Department of Agriculture that
23identifies a person as a transporting organization agent.
24    "Unit of local government" means any county, city,
25village, or incorporated town.
26    "Vegetative stage" means the stage of cultivation in which

 

 

HB4164- 21 -LRB103 34582 RPS 64420 b

1a cannabis plant is propagated to produce additional cannabis
2plants or reach a sufficient size for production. This
3includes seedlings, clones, mothers, and other immature
4cannabis plants as follows:
5        (1) if the cannabis plant is in an area that has not
6    been intentionally deprived of light for a period of time
7    intended to produce flower buds and induce maturation, it
8    has no more than 2 stigmas visible at each internode of the
9    cannabis plant; or
10        (2) any cannabis plant that is cultivated solely for
11    the purpose of propagating clones and is never used to
12    produce cannabis.
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
14102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
155-13-22.)
 
16    (410 ILCS 705/5-10)
17    Sec. 5-10. Department of Agriculture. The Department of
18Agriculture shall administer and enforce provisions of this
19Act relating to the oversight and registration of cultivation
20centers, craft growers, infuser organizations, and
21transporting organizations and agents, including the issuance
22of identification cards and establishing limits on potency or
23serving size for cannabis or cannabis products. The Department
24of Agriculture may suspend or revoke the license of, or impose
25other penalties upon cultivation centers, craft growers,

 

 

HB4164- 22 -LRB103 34582 RPS 64420 b

1infuser organizations, transporting organizations, and their
2principal officers, Agents-in-Charge, and agents for
3violations of this Act and any rules adopted under this Act. By
4January 1, 2024, the Department shall adopt emergency rules
5and begin accepting applications for the conversion of
6transporting organization licenses to third-party transporting
7organization licenses. There shall be no applicable fees for
8the license conversion application process, and the Department
9shall process these applications and convert qualifying
10transporting organization licenses to third-party transporting
11organization licenses within 60 days after application
12submission. Third-party transporting organizations are subject
13to the same standards and requirements for transporting
14organizations under this Act.
15(Source: P.A. 101-27, eff. 6-25-19.)
 
16    (410 ILCS 705/20-30)
17    Sec. 20-30. Cultivation center requirements; prohibitions.
18    (a) The operating documents of a cultivation center shall
19include procedures for the oversight of the cultivation
20center, a cannabis plant monitoring system including a
21physical inventory recorded weekly, accurate recordkeeping,
22and a staffing plan.
23    (b) A cultivation center shall implement a security plan
24reviewed by the Illinois State Police that includes, but is
25not limited to: facility access controls, perimeter intrusion

 

 

HB4164- 23 -LRB103 34582 RPS 64420 b

1detection systems, personnel identification systems, 24-hour
2surveillance system to monitor the interior and exterior of
3the cultivation center facility and accessibility to
4authorized law enforcement, the Department of Public Health
5where processing takes place, and the Department of
6Agriculture in real time.
7    (c) All cultivation of cannabis by a cultivation center
8must take place in an enclosed, locked facility at the
9physical address provided to the Department of Agriculture
10during the licensing process. The cultivation center location
11shall only be accessed by the agents working for the
12cultivation center, the Department of Agriculture staff
13performing inspections, the Department of Public Health staff
14performing inspections, local and State law enforcement or
15other emergency personnel, contractors working on jobs
16unrelated to cannabis, such as installing or maintaining
17security devices or performing electrical wiring, transporting
18organization agents as provided in this Act, individuals in a
19mentoring or educational program approved by the State, or
20other individuals as provided by rule.
21    (d) A cultivation center may not sell or distribute any
22cannabis or cannabis-infused products to any person other than
23a dispensing organization, craft grower, infuser organization,
24transporter, or as otherwise authorized by rule.
25    (e) A cultivation center may not either directly or
26indirectly discriminate in price between different dispensing

 

 

HB4164- 24 -LRB103 34582 RPS 64420 b

1organizations, craft growers, or infuser organizations that
2are purchasing a like grade, strain, brand, and quality of
3cannabis or cannabis-infused product. Nothing in this
4subsection (e) prevents a cultivation center from pricing
5cannabis differently based on differences in the cost of
6manufacturing or processing, the quantities sold, such as
7volume discounts, or the way the products are delivered.
8    (f) All cannabis harvested by a cultivation center and
9intended for distribution to a dispensing organization must be
10entered into a data collection system, packaged and labeled
11under Section 55-21, and placed into a cannabis container for
12transport. All cannabis harvested by a cultivation center and
13intended for distribution to a craft grower or infuser
14organization must be packaged in a labeled cannabis container
15and entered into a data collection system before transport.
16    (g) Cultivation centers are subject to random inspections
17by the Department of Agriculture, the Department of Public
18Health, local safety or health inspectors, the Illinois State
19Police, or as provided by rule.
20    (h) A cultivation center agent shall notify local law
21enforcement, the Illinois State Police, and the Department of
22Agriculture within 24 hours of the discovery of any loss or
23theft. Notification shall be made by phone or in person, or by
24written or electronic communication.
25    (i) A cultivation center shall comply with all State and
26any applicable federal rules and regulations regarding the use

 

 

HB4164- 25 -LRB103 34582 RPS 64420 b

1of pesticides on cannabis plants.
2    (j) No person or entity shall hold any legal, equitable,
3ownership, or beneficial interest, directly or indirectly, of
4more than 3 cultivation centers licensed under this Article.
5Further, no person or entity that is employed by, an agent of,
6has a contract to receive payment in any form from a
7cultivation center, is a principal officer of a cultivation
8center, or entity controlled by or affiliated with a principal
9officer of a cultivation shall hold any legal, equitable,
10ownership, or beneficial interest, directly or indirectly, in
11a cultivation that would result in the person or entity owning
12or controlling in combination with any cultivation center,
13principal officer of a cultivation center, or entity
14controlled or affiliated with a principal officer of a
15cultivation center by which he, she, or it is employed, is an
16agent of, or participates in the management of, more than 3
17cultivation center licenses.
18    (k) A cultivation center may not contain more than 210,000
19square feet of canopy space for plants in the flowering stage
20for cultivation of adult use cannabis as provided in this Act.
21    (l) A cultivation center may process cannabis, cannabis
22concentrates, and cannabis-infused products.
23    (m) Until the Department first issues third-party
24transporting organization licenses Beginning July 1, 2020, a
25cultivation center shall not transport cannabis or
26cannabis-infused products to a craft grower, dispensing

 

 

HB4164- 26 -LRB103 34582 RPS 64420 b

1organization, infuser organization, or laboratory licensed
2under this Act, unless it has obtained a transporting
3organization license. Beginning when the Department first
4issues third-party transporting organization licenses, a
5cultivation center shall not transport cannabis or
6cannabis-infused products and shall use third-party
7transporting organizations for all transports authorized under
8this Act, unless (1) the cultivation center possesses a
9transporting organization license, (2) the cultivation center
10requires delivery within 36 hours, and (3) the cultivation
11center has offered a right of first refusal to all third-party
12transporting organizations and confirmed there are no
13available third-party transporting organizations to complete
14the delivery.
15    (n) It is unlawful for any person having a cultivation
16center license or any officer, associate, member,
17representative, or agent of such licensee to offer or deliver
18money, or anything else of value, directly or indirectly to
19any person having an Early Approval Adult Use Dispensing
20Organization License, a Conditional Adult Use Dispensing
21Organization License, an Adult Use Dispensing Organization
22License, or a medical cannabis dispensing organization license
23issued under the Compassionate Use of Medical Cannabis Program
24Act, or to any person connected with or in any way
25representing, or to any member of the family of, such person
26holding an Early Approval Adult Use Dispensing Organization

 

 

HB4164- 27 -LRB103 34582 RPS 64420 b

1License, a Conditional Adult Use Dispensing Organization
2License, an Adult Use Dispensing Organization License, or a
3medical cannabis dispensing organization license issued under
4the Compassionate Use of Medical Cannabis Program Act, or to
5any stockholders in any corporation engaged in the retail sale
6of cannabis, or to any officer, manager, agent, or
7representative of the Early Approval Adult Use Dispensing
8Organization License, a Conditional Adult Use Dispensing
9Organization License, an Adult Use Dispensing Organization
10License, or a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act to obtain preferential placement within the dispensing
13organization, including, without limitation, on shelves and in
14display cases where purchasers can view products, or on the
15dispensing organization's website.
16    (o) A cultivation center must comply with any other
17requirements or prohibitions set by administrative rule of the
18Department of Agriculture.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
20102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
215-13-22.)
 
22    (410 ILCS 705/30-30)
23    Sec. 30-30. Craft grower requirements; prohibitions.
24    (a) The operating documents of a craft grower shall
25include procedures for the oversight of the craft grower, a

 

 

HB4164- 28 -LRB103 34582 RPS 64420 b

1cannabis plant monitoring system including a physical
2inventory recorded weekly, accurate recordkeeping, and a
3staffing plan.
4    (b) A craft grower shall implement a security plan
5reviewed by the Illinois State Police that includes, but is
6not limited to: facility access controls, perimeter intrusion
7detection systems, personnel identification systems, and a
824-hour surveillance system to monitor the interior and
9exterior of the craft grower facility and that is accessible
10to authorized law enforcement and the Department of
11Agriculture in real time.
12    (c) All cultivation of cannabis by a craft grower must
13take place in an enclosed, locked facility at the physical
14address provided to the Department of Agriculture during the
15licensing process. The craft grower location shall only be
16accessed by the agents working for the craft grower, the
17Department of Agriculture staff performing inspections, the
18Department of Public Health staff performing inspections,
19State and local law enforcement or other emergency personnel,
20contractors working on jobs unrelated to cannabis, such as
21installing or maintaining security devices or performing
22electrical wiring, transporting organization agents as
23provided in this Act, or participants in the incubator
24program, individuals in a mentoring or educational program
25approved by the State, or other individuals as provided by
26rule. However, if a craft grower shares a premises with an

 

 

HB4164- 29 -LRB103 34582 RPS 64420 b

1infuser or dispensing organization, agents from those other
2licensees may access the craft grower portion of the premises
3if that is the location of common bathrooms, lunchrooms,
4locker rooms, or other areas of the building where work or
5cultivation of cannabis is not performed. At no time may an
6infuser or dispensing organization agent perform work at a
7craft grower without being a registered agent of the craft
8grower.
9    (d) A craft grower may not sell or distribute any cannabis
10to any person other than a cultivation center, a craft grower,
11an infuser organization, a dispensing organization, or as
12otherwise authorized by rule.
13    (e) A craft grower may not be located in an area zoned for
14residential use.
15    (f) A craft grower may not either directly or indirectly
16discriminate in price between different cannabis business
17establishments that are purchasing a like grade, strain,
18brand, and quality of cannabis or cannabis-infused product.
19Nothing in this subsection (f) prevents a craft grower from
20pricing cannabis differently based on differences in the cost
21of manufacturing or processing, the quantities sold, such as
22volume discounts, or the way the products are delivered.
23    (g) All cannabis harvested by a craft grower and intended
24for distribution to a dispensing organization must be entered
25into a data collection system, packaged and labeled under
26Section 55-21, and, if distribution is to a dispensing

 

 

HB4164- 30 -LRB103 34582 RPS 64420 b

1organization that does not share a premises with the
2dispensing organization receiving the cannabis, placed into a
3cannabis container for transport. All cannabis harvested by a
4craft grower and intended for distribution to a cultivation
5center, to an infuser organization, or to a craft grower with
6which it does not share a premises, must be packaged in a
7labeled cannabis container and entered into a data collection
8system before transport.
9    (h) Craft growers are subject to random inspections by the
10Department of Agriculture, local safety or health inspectors,
11the Illinois State Police, or as provided by rule.
12    (i) A craft grower agent shall notify local law
13enforcement, the Illinois State Police, and the Department of
14Agriculture within 24 hours of the discovery of any loss or
15theft. Notification shall be made by phone, in person, or
16written or electronic communication.
17    (j) A craft grower shall comply with all State and any
18applicable federal rules and regulations regarding the use of
19pesticides.
20    (k) A craft grower or craft grower agent shall not
21transport cannabis or cannabis-infused products to any other
22cannabis business establishment without a transport
23organization license unless:
24        (i) If the craft grower is located in a county with a
25    population of 3,000,000 or more, the cannabis business
26    establishment receiving the cannabis is within 2,000 feet

 

 

HB4164- 31 -LRB103 34582 RPS 64420 b

1    of the property line of the craft grower;
2        (ii) If the craft grower is located in a county with a
3    population of more than 700,000 but fewer than 3,000,000,
4    the cannabis business establishment receiving the cannabis
5    is within 2 miles of the craft grower; or
6        (iii) If the craft grower is located in a county with a
7    population of fewer than 700,000, the cannabis business
8    establishment receiving the cannabis is within 15 miles of
9    the craft grower; or .
10        (iv) The craft grower (1) possesses a transporting
11    organization license, (2) requires delivery within 36
12    hours, and (3) has confirmed there are no available
13    third-party transporting organizations to complete the
14    delivery.
15    (l) A craft grower may enter into a contract with a
16transporting organization to transport cannabis to a
17cultivation center, a craft grower, an infuser organization, a
18dispensing organization, or a laboratory.
19    (m) No person or entity shall hold any legal, equitable,
20ownership, or beneficial interest, directly or indirectly, of
21more than 3 craft grower licenses. Further, no person or
22entity that is employed by, an agent of, or has a contract to
23receive payment from or participate in the management of a
24craft grower, is a principal officer of a craft grower, or
25entity controlled by or affiliated with a principal officer of
26a craft grower shall hold any legal, equitable, ownership, or

 

 

HB4164- 32 -LRB103 34582 RPS 64420 b

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

 

 

HB4164- 33 -LRB103 34582 RPS 64420 b

1Conditional Adult Use Dispensing Organization License, an
2Adult Use Dispensing Organization License, or a medical
3cannabis dispensing organization license issued under the
4Compassionate Use of Medical Cannabis Program Act to obtain
5preferential placement within the dispensing organization,
6including, without limitation, on shelves and in display cases
7where purchasers can view products, or on the dispensing
8organization's website.
9    (o) A craft grower shall not be located within 1,500 feet
10of another craft grower or a cultivation center.
11    (p) A craft grower may process cannabis, cannabis
12concentrates, and cannabis-infused products.
13    (q) A craft grower must comply with any other requirements
14or prohibitions set by administrative rule of the Department
15of Agriculture.
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
17102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
185-13-22.)
 
19    (410 ILCS 705/35-25)
20    Sec. 35-25. Infuser organization requirements;
21prohibitions.
22    (a) The operating documents of an infuser shall include
23procedures for the oversight of the infuser, an inventory
24monitoring system including a physical inventory recorded
25weekly, accurate recordkeeping, and a staffing plan.

 

 

HB4164- 34 -LRB103 34582 RPS 64420 b

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

 

 

HB4164- 35 -LRB103 34582 RPS 64420 b

1other areas of the building where processing of cannabis is
2not performed. At no time may a craft grower or dispensing
3organization agent perform work at an infuser without being a
4registered agent of the infuser.
5    (d) An infuser may not sell or distribute any cannabis to
6any person other than a dispensing organization, or as
7otherwise authorized by rule.
8    (e) An infuser may not either directly or indirectly
9discriminate in price between different cannabis business
10establishments that are purchasing a like grade, strain,
11brand, and quality of cannabis or cannabis-infused product.
12Nothing in this subsection (e) prevents an infuser from
13pricing cannabis differently based on differences in the cost
14of manufacturing or processing, the quantities sold, such
15volume discounts, or the way the products are delivered.
16    (f) All cannabis infused by an infuser and intended for
17distribution to a dispensing organization must be entered into
18a data collection system, packaged and labeled under Section
1955-21, and, if distribution is to a dispensing organization
20that does not share a premises with the infuser, placed into a
21cannabis container for transport. All cannabis produced by an
22infuser and intended for distribution to a cultivation center,
23infuser organization, or craft grower with which it does not
24share a premises, must be packaged in a labeled cannabis
25container and entered into a data collection system before
26transport.

 

 

HB4164- 36 -LRB103 34582 RPS 64420 b

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

 

 

HB4164- 37 -LRB103 34582 RPS 64420 b

1    population of fewer than 700,000, the cannabis business
2    establishment receiving the cannabis or cannabis-infused
3    product is within 15 miles of the infuser; or .
4        (iv) The infuser (1) possesses a transporting
5    organization license, (2) requires delivery within 36
6    hours, and (3) has confirmed there are no available
7    third-party transporting organizations to complete the
8    delivery.
9    (k) An infuser may enter into a contract with a
10transporting organization to transport cannabis to a
11dispensing organization or a laboratory.
12    (l) An infuser organization may share premises with a
13craft grower or a dispensing organization, or both, provided
14each licensee stores currency and cannabis or cannabis-infused
15products in a separate secured vault to which the other
16licensee does not have access or all licensees sharing a vault
17share more than 50% of the same ownership.
18    (m) It is unlawful for any person or entity having an
19infuser organization license or any officer, associate,
20member, representative or agent of such licensee to offer or
21deliver money, or anything else of value, directly or
22indirectly to any person having an Early Approval Adult Use
23Dispensing Organization License, a Conditional Adult Use
24Dispensing Organization License, an Adult Use Dispensing
25Organization License, or a medical cannabis dispensing
26organization license issued under the Compassionate Use of

 

 

HB4164- 38 -LRB103 34582 RPS 64420 b

1Medical Cannabis Program Act, or to any person connected with
2or in any way representing, or to any member of the family of,
3such person holding an Early Approval Adult Use Dispensing
4Organization License, a Conditional Adult Use Dispensing
5Organization License, an Adult Use Dispensing Organization
6License, or a medical cannabis dispensing organization license
7issued under the Compassionate Use of Medical Cannabis Program
8Act, or to any stockholders in any corporation engaged the
9retail sales of cannabis, or to any officer, manager, agent,
10or representative of the Early Approval Adult Use Dispensing
11Organization License, a Conditional Adult Use Dispensing
12Organization License, an Adult Use Dispensing Organization
13License, or a medical cannabis dispensing organization license
14issued under the Compassionate Use of Medical Cannabis Program
15Act to obtain preferential placement within the dispensing
16organization, including, without limitation, on shelves and in
17display cases where purchasers can view products, or on the
18dispensing organization's website.
19    (n) At no time shall an infuser organization or an infuser
20agent perform the extraction of cannabis concentrate from
21cannabis flower.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
23102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
245-13-22.)
 
25    (410 ILCS 705/40-5)

 

 

HB4164- 39 -LRB103 34582 RPS 64420 b

1    Sec. 40-5. Issuance of licenses.
2    (a) The Department shall issue transporting licenses
3through a process provided for in this Article no later than
4July 1, 2020.
5    (b) The Department shall make the application for
6transporting organization licenses available on January 7,
72020 and shall receive such applications no later than March
815, 2020. Subject to subsection (c), the The Department of
9Agriculture shall make available such applications on every
10January 7 thereafter or if that date falls on a weekend or
11holiday, the business day immediately succeeding the weekend
12or holiday and shall receive such applications no later than
13March 15 or the succeeding business day thereafter.
14    (c) Beginning on the effective date of this amendatory Act
15of the 103rd General Assembly and until January 1, 2031, the
16Department shall not accept any transporting license
17applications or issue any transporting licenses. By December
1831, 2030, the Illinois Cannabis Regulation Oversight Officer
19shall conduct a study to determine whether additional
20transportation licenses are necessary at that time. Additional
21transportation licenses shall not be issued unless the
22Illinois Cannabis Regulation Oversight Officer deems it
23necessary.
24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
25    (410 ILCS 705/40-25)

 

 

HB4164- 40 -LRB103 34582 RPS 64420 b

1    Sec. 40-25. Transporting organization requirements;
2prohibitions.
3    (a) The operating documents of a transporting organization
4shall include procedures for the oversight of the transporter,
5an inventory monitoring system including a physical inventory
6recorded weekly, accurate recordkeeping, and a staffing plan.
7    (b) A transporting organization may not transport cannabis
8or cannabis-infused products to any person other than a
9cultivation center, a craft grower, an infuser organization, a
10dispensing organization, a testing facility, or as otherwise
11authorized by rule.
12    (c) All cannabis transported by a transporting
13organization must be entered into a data collection system and
14placed into a cannabis container for transport.
15    (d) Transporters are subject to random inspections by the
16Department of Agriculture, the Department of Public Health,
17the Illinois State Police, or as provided by rule.
18    (e) A transporting organization agent shall notify local
19law enforcement, the Illinois State Police, and the Department
20of Agriculture within 24 hours of the discovery of any loss or
21theft. Notification shall be made by phone, in person, or by
22written or electronic communication.
23    (f) No person under the age of 21 years shall be in a
24commercial vehicle or trailer transporting cannabis goods.
25    (g) No person or individual who is not a transporting
26organization agent shall be in a vehicle while transporting

 

 

HB4164- 41 -LRB103 34582 RPS 64420 b

1cannabis goods.
2    (h) Transporters may not use commercial motor vehicles
3with a weight rating of over 10,001 pounds.
4    (i) It is unlawful for any person to offer or deliver
5money, or anything else of value, directly or indirectly, to
6any of the following persons to obtain preferential placement
7within the dispensing organization, including, without
8limitation, on shelves and in display cases where purchasers
9can view products, or on the dispensing organization's
10website:
11        (1) a person having a transporting organization
12    license, or any officer, associate, member,
13    representative, or agent of the licensee;
14        (2) a person having an Early Applicant Adult Use
15    Dispensing Organization License, an Adult Use Dispensing
16    Organization License, or a medical cannabis dispensing
17    organization license issued under the Compassionate Use of
18    Medical Cannabis Program Act;
19        (3) a person connected with or in any way
20    representing, or a member of the family of, a person
21    holding an Early Applicant Adult Use Dispensing
22    Organization License, an Adult Use Dispensing Organization
23    License, or a medical cannabis dispensing organization
24    license issued under the Compassionate Use of Medical
25    Cannabis Program Act; or
26        (4) a stockholder, officer, manager, agent, or

 

 

HB4164- 42 -LRB103 34582 RPS 64420 b

1    representative of a corporation engaged in the retail sale
2    of cannabis, an Early Applicant Adult Use Dispensing
3    Organization License, an Adult Use Dispensing Organization
4    License, or a medical cannabis dispensing organization
5    license issued under the Compassionate Use of Medical
6    Cannabis Program Act.
7    (j) A transporting organization agent must keep his or her
8identification card visible at all times when on the property
9of a cannabis business establishment and during the
10transporting of cannabis when acting under his or her duties
11as a transportation organization agent. During these times,
12the transporting organization agent must also provide the
13identification card upon request of any law enforcement
14officer engaged in his or her official duties.
15    (k) A copy of the transporting organization's registration
16and a manifest for the delivery shall be present in any vehicle
17transporting cannabis.
18    (l) Cannabis shall be transported so it is not visible or
19recognizable from outside the vehicle.
20    (m) A vehicle transporting cannabis must not bear any
21markings to indicate the vehicle contains cannabis or bear the
22name or logo of the cannabis business establishment.
23    (n) Cannabis must be transported in an enclosed, locked
24storage compartment that is secured or affixed to the vehicle.
25    (n-5) Third-party transporting organizations may
26temporarily store cannabis and cannabis products in a secure

 

 

HB4164- 43 -LRB103 34582 RPS 64420 b

1storage area in the third-party transporting organization's
2physical location for no more than 36 hours and in compliance
3with all applicable security, inventory, and storage
4requirements set forth by the Department of Agriculture, which
5shall be no more burdensome than those set forth for craft
6growers.
7    (o) The Department of Agriculture may, by rule, impose any
8other requirements or prohibitions on the transportation of
9cannabis.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
11102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
125-13-22.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.