103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4193

 

Introduced 10/25/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Prevention of Use of Hemp Cannabinoid Products Intended for Human Consumption by Ingestion or Inhalation by Persons Under 21 Years of Age Act. Permits the sale and possession of hemp cannabinoids by persons 21 years of age or over. Provides that no person shall offer or sell hemp cannabinoid products to consumers in the State unless the person applies for and holds a hemp retailer licensed issued by the Department of Financial and Professional Regulation. Provides that no person shall sell ready-to-eat hemp products to end consumers without holding a hemp food establishment license issued by the Department of Public Health. Provides that a hemp food establishment that sells ready-to-eat cannabinoid products shall be exclusively licensed and located in the State. Provides that hemp food establishments and hemp retailers shall require proof of age from a purchaser of any cannabinoid products before selling the product to that person. Provides that the Department of Financial and Professional Regulation shall administer and enforce the provisions of the Act relating to licensing and oversight of hemp distributor establishment unless otherwise provided in the Act. Establishes standards for the issuance of licenses under the Act. Provides for criminal and civil penalties for violation of the Act.


LRB103 34956 RLC 64843 b

 

 

A BILL FOR

 

HB4193LRB103 34956 RLC 64843 b

1    AN ACT concerning hemp cannabinoids.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Prevention of Use of Hemp Cannabinoid Products Intended for
6Human Consumption by Ingestion or Inhalation by Persons Under
721 Years of Age Act.
 
8    Section 5. Definitions. In this Act:
9    "Cannabinoid menu item" means a restaurant-type food that
10incorporates ready-to-eat cannabinoids included on a menu or
11menu board or offered as a food on display.
12    "Hemp business establishment" means a hemp retailer or
13hemp food establishment.
14    "Hemp cannabinoid" means the chemical constituents of hemp
15plants that are naturally occurring and biologically active.
16    "Hemp cannabinoid product" means a finished product for
17sale to hemp cannabinoid users at hemp business establishments
18within the State that contains cannabinoids derived from hemp
19and is intended for human consumption by inhalation or
20ingestion.
21    "Hemp cannabinoid user" means a member of the general
22public who buys or uses hemp and who is protected by laws
23against unfair or fraudulent practices in the marketplace.

 

 

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1    "Hemp food establishment" means a facility regulated by
2the Illinois Department of Public Health that incorporates
3intermediate hemp products in the manufacturing, processing,
4or preparation of prepackaged or ready-to-eat hemp cannabinoid
5products for human ingestion and which meets the requirements
6of this Act.
7    "Hemp retailer" means a retailer operated by an
8organization or business that is licensed by the Department of
9Financial and Professional Regulation to sell hemp cannabinoid
10products to hemp cannabinoid users.
11    "Ingestion" means the process of consuming cannabinoid
12products through the mouth, whether by swallowing into the
13gastrointestinal system or through tissue absorption.
14    "Inhalation" means the process of consuming cannabinoid
15products through the mouth or nasal passage into the
16respiratory system.
17    "Intermediate hemp products" means products that are made
18from processed hemp that may only be sold to hemp business
19establishments to be used as ingredients for other
20intermediate hemp products or final hemp cannabinoid products
21for human consumption by ingestion or inhalation.
22"Intermediate hemp products" include products that contain
23more than 0.3% THC.
24    "Menu" means the primary writing of the establishment from
25which a customer makes an order selection, including, but not
26limited to, breakfast, lunch, and dinner menus, dessert menus,

 

 

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1beverage menus, other specialty menus, electronic menus, menu
2boards, and menus published on the Internet.
3    "Ready-to-eat hemp cannabinoid product" means a type of
4hemp cannabinoid product available for human consumption,
5including time or temperature control, or both, for food
6safety, as "ready-to-eat food" is defined in Section 1-201.10
7of the Food Code 2017 of the United States Public Health
8Service of the Food and Drug Administration, that does not
9exceed 50 milligrams of THC per serving, and that utilizes
10intermediate hemp products as an input as is produced as a
11single serving in a retail food establishment.
 
12    Section 10. Sale of hemp cannabinoid products.
13    (a) The retail sale of hemp cannabinoids is allowed as
14provided in this Act.
15    (b) No person shall offer or sell hemp cannabinoid
16products to consumers in the State unless the person applies
17for and holds a hemp retailer license issued by the Department
18of Financial and Professional Regulation. No person shall sell
19ready-to-eat hemp products to end consumers without holding a
20hemp food establishment license issued by the Department of
21Public Health.
22    (c) A hemp food establishment that sells ready-to-eat
23cannabinoid products shall be exclusively licensed and located
24in the State.
25    (d) No person shall sell a hemp cannabinoid product to any

 

 

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1person under the age of 21.
2    (e) No person shall sell, buy for, distribute samples of,
3or furnish any cannabinoid product to any person under the age
4of 21.
5    (f) No person under 21 years of age in the furtherance or
6facilitation of obtaining hemp cannabinoid products shall
7display or use a false or forged identification card or
8transfer, alter, or deface an identification card.
9    (g) A hemp food establishment or hemp retailer that sells
10cannabinoid products intended for inhalation shall post a
11clear and conspicuous sign directly adjacent to the display of
12the product that states the following: "THE SALE OF
13CANNABINOID PRODUCTS INTENDED FOR INHALATION TO PERSONS UNDER
14THE AGE OF 21 IS PROHIBITED. PROOF OF AGE IS REQUIRED FOR
15PURCHASE.".
16    (h) Cannabinoid products may not be mailed, shipped, or
17otherwise delivered to a purchaser unless, before the delivery
18to the purchaser, the hemp retailer obtains confirmation that
19the purchaser is 21 years of age or older.
20    (i) Hemp food establishments and hemp retailers shall
21require proof of age from a purchaser of any cannabinoid
22products before selling the product to that person. Hemp food
23establishments and hemp retailers shall exercise diligence in
24the management and supervision of their premises and in the
25supervision and training of their employees to prevent the
26underage sale of these products.

 

 

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1    (j) A product containing cannabinoids must not be
2considered adulterated or unsafe solely because the product
3contains cannabinoids or other material extracted or derived
4from hemp plants.
5    (k) A person, hemp food establishment, or hemp retailer
6that violates subsection (e) is guilty of a Class 4 felony. A
7person under the age of 21 who violates subsection (f) is
8guilty of a Class A misdemeanor.
 
9    Section 15. Licensing and regulation of hemp retailers.
10    (a) The Department of Financial and Professional
11Regulation shall administer and enforce the provisions of this
12Act relating to licensing and oversight of hemp distributor
13establishment unless otherwise provided in this Act.
14    (b) No person shall operate a hemp retail establishment
15for the purpose of serving purchasers of hemp cannabinoid
16products without a license issued under this Act by the
17Department.
18    (c) Subject to the provisions of this Act, the Department
19may exercise the following powers and duties:
20        (1) prescribe forms to be issued for the
21    administration and enforcement of this Act;
22        (2) examine, inspect, and investigate the premises,
23    operations, and records of hemp retail organization
24    applicants and licensees;
25        (3) conduct investigations of possible violations of

 

 

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1    this Act pertaining to hemp retail organizations; and
2        (4) conduct hearings on proceedings to refuse to issue
3    or renew licenses or to revoke, suspend, place on
4    probation, reprimand, or otherwise discipline a license
5    holder under this Act or take other nondisciplinary
6    action.
7    (d) The Department may not limit the number of hemp
8retailer licenses.
9    (e) The Department may not limit the number of hemp
10retailer licenses an individual may hold.
11    (f) Applicants for a hemp retail license must submit all
12information required by the Department. Failure by an
13applicant to submit all required information may result in the
14application being disqualified.
15    (g) The Department may verify information contained in
16each application and accompanying documentation to assess the
17applicant's veracity and fitness to operate a hemp retailer
18establishment.
19    (h) The Department may refuse to issue a license to any
20applicant who:
21        (1) fails to disclose or states falsely any
22    information called for in the applications;
23        (2) has been found guilty of a violation of this Act,
24    who has had any disciplinary order entered against it by
25    the Department, who has entered into a disciplinary or
26    nondisciplinary agreement with the Department, or whose

 

 

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1    hemp business establishment license was suspended,
2    restricted, revoked, or denied in another State; or
3        (3) has engaged in a pattern or practice of unfair or
4    illegal practices, methods, or activities in the conduct
5    of owning a hemp business establishment or other business.
6    (i) The Department shall deny the license if any principal
7officer, board member, or persons having a financial or voting
8interest of 5% or greater on the license is delinquent in
9filing any required tax returns or paying any amounts owed to
10the State.
11    (j) The Department shall verify an applicant's compliance
12with the requirements of this Act and rules before issuing a
13hemp retailer license.
 
14    Section 20. Operational requirements of hemp retailers.
15    (a) A hemp retailers shall operate in accordance with the
16representations made in its application and license materials.
17It shall be in compliance with this Act and rules.
18    (b) A hemp retailer establishment that obtains a hemp food
19establishment license may prepare and sell ready-to-eat hemp
20cannabinoid products.
21    (c) A hemp retailer establishment shall maintain
22compliance with State and local building, fire, and zoning
23requirements and regulations.
24    (d) A hemp retailer's license allows for a hemp retailer
25to be operated only at a single location.

 

 

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1    (e) A hemp retailer establishment shall ensure that any
2building or equipment used by the hemp retailer establishment
3for the sale of hemp, hemp cannabinoid products, and
4ready-to-eat hemp cannabinoid products are maintained in a
5clean and sanitary condition.
6    (f) A hemp retailer establishment shall be free from
7infestation by insects, rodents, or pests.
8    (g) A hemp retailer license shall not give the licensee
9the right to:
10        (1) grow hemp;
11        (2) produce or manufacture hemp or hemp cannabinoid
12    products;
13        (3) sell hemp cannabinoid products to a purchaser
14    unless the purchaser is a medical patient or that the
15    purchaser has been verified to be 21 years of age or older;
16    or
17        (4) violate any other requirements or prohibitions set
18    by Department rules.
19    (h) A hemp retailer license may be obtained by an
20out-of-state entity if:
21        (1) the applicant and any and all principals officers
22    on the application retains a registered agent or office
23    and agrees to submit to tax nexus within the State for
24    jurisdictional, regulatory, and enforcement purposes; and
25        (2) the applicant maintains a log of all sales to
26    residents located within the State to be submitted for

 

 

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1    inspection by the Department.
 
2    Section 25. Regulation of hemp food establishments.
3    (a) As used in this Section, "Department" means the
4Department of Public Health.
5    (b) The Department shall administer and enforce the
6provisions of this Act relating to the licensing and oversight
7of hemp food establishments unless otherwise provided in this
8Act.
9    (c) No person shall operate a hemp food establishment for
10the purpose of serving hemp cannabinoid products for human
11ingestions or ready-to-eat hemp cannabinoid products without a
12license issued under this Act.
13    (d) Subject to the provisions of this Act, the Department
14may exercise the following powers and duties:
15        (1) prescribe forms to be issued for the
16    administration and enforcement of this Act;
17        (2) examine, inspect, and investigate the premises,
18    operations, and records of hemp food establishment
19    applicants and licensees;
20        (3) conduct investigations of possible violations of
21    this Act pertaining to hemp food establishments; and
22        (4) conduct hearings on proceedings to refuse to issue
23    or renew licenses or to revoke, suspend, place on
24    probation, reprimand, or otherwise discipline a license
25    holder under this Act or take other nondisciplinary

 

 

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1    action.
2    (e) The Department may not limit the number of hemp food
3establishment licenses.
4    (f) The Department shall not limit the number of licenses
5an individual may hold. Applicants for a hemp food
6establishment license must submit all information required by
7the Department. Failure by an applicant to submit all required
8information may result in the application being disqualified.
9    (g) The Department may verify information contained in
10each application and accompanying documentation to assess the
11applicant's veracity and fitness to operate a hemp food
12establishment.
13    (h) The Department may refuse to issue an authorization to
14any applicant who:
15        (1) fails to disclose or falsifies any information
16    called for in the application;
17        (2) has been found guilty of a violation of this Act,
18    who has had any disciplinary order entered against the
19    applicant by the Department, who has entered into a
20    disciplinary or nondisciplinary agreement with the
21    Department, or whose hemp business establishment license
22    was suspended, restricted, revoked, or denied in another
23    state; or
24        (3) has engaged in a pattern or practice of unfair or
25    illegal practices, methods, or activities in the conduct
26    of owning a hemp business establishment or other business.

 

 

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1    (i) The Department shall deny the license if any principal
2officer, board member, or persons having a financial or voting
3interest of 5% or greater on the license is delinquent in
4filing any required tax returns or paying any amounts owed to
5the State.
6    (j) The Department shall verify an applicant's compliance
7with the requirements of this Act and rules before issuing a
8hemp food establishment license.
 
9    Section 30. Operational requirements of hemp food
10establishments.
11    (a) A hemp food establishment dealing in the manufacture
12and sale of food items that does not comply with the existing
13State laws related to food handling or does not comply with the
14health and food handling regulations of a unit of local
15government having jurisdiction over the establishment may be
16enjoined from doing business in the following manner: the
17Department of Public Health or a local department of health
18may seek an injunction in the circuit court of the county in
19which the establishment is located. An injunction, if granted,
20shall prohibit the hemp food establishment from selling hemp
21cannabinoid products for human ingestion until it complies
22with any applicable State law or regulations of a unit of local
23government. However, no injunction may be sought or granted
24before January 1, 2025, to enforce any rule or regulation
25requiring a licensed food business to adhere to those rules

 

 

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1and regulations.
2    (b) The Department of Public Health shall adopt and
3enforce rules for the manufacturing and processing of hemp
4cannabinoid products for human ingestions at a hemp food
5establishment, and, for that purpose, it may at all times
6enter every building, room, basement, enclosure, or premises
7occupied or used, or suspected of being occupied or used, for
8the production, preparation, manufacture for sale, storage,
9sale, processing, distribution, or transportation and to
10inspect the premises of a hemp food establishment together
11with all utensils, fixtures, furniture, and machinery used for
12the preparation of these products.
13    (c) A hemp food establishment shall be under the
14operational supervision of a certified food service sanitation
15manager in accordance with rules adopted under this Act.
16    (d) A hemp food establishment shall operate in accordance
17with the representations made in its application and license
18materials. It shall be in compliance with this Act and rules.
19    (e) A hemp food establishment shall comply with the food
20handling, preparation, packaging and labeling provisions of
21the Illinois Food, Drug and Cosmetic Act, the Food Handling
22Regulation Enforcement Act, and the Sanitary Food Preparation
23Act.
24    (f) A hemp food establishment that obtains a hemp retailer
25license may prepare and sell ready-to-eat hemp cannabinoid
26products.

 

 

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1    (g) A hemp food establishment shall maintain compliance
2with State and local building, fire, and zoning requirements.
3    (h) A hemp food establishment license allows for a hemp
4food establishment to be operated only at a single location.
5    (i) A hemp food establishment shall ensure that any
6building or equipment used by the hemp food establishment for
7the storage, preparation, or sale of hemp cannabinoid products
8for human ingestion and ready-to-eat hemp cannabinoid products
9are maintained in a clean and sanitary condition.
10    (j) A hemp food establishment shall be free from
11infestation by insects, rodents, or pests.
12    (k) A hemp food establishment, when combined with an
13on-site hemp retailer license, allows for the preparation and
14sale of ready-to-eat hemp cannabinoid products.
15    (l) A hemp food establishment license shall not give the
16establishment the right to:
17        (1) grow hemp;
18        (2) process hemp;
19        (3) prepare and sell ready-to-eat hemp cannabinoid
20    products to a purchaser unless the purchaser has been
21    verified to be 21 years of age or older; or
22        (4) violate any other requirements or prohibitions set
23    by the Department of Health rules.
 
24    Section 35. Recipes and dosing of ready-to-eat hemp
25cannabinoid products. In order to sell ready-to-eat hemp

 

 

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1cannabinoid products, a hemp food establishment shall:
2        (1) keep THC dosing at or below 50 milligrams per
3    serving;
4        (2) submit a standard operating procedure for dosing
5    to the Department of Public Health for approval and
6    registration. The approval shall be granted within 30 days
7    of submission unless the Department provides good cause,
8    in writing, for withholding approval;
9        (3) submit the recipe, at the hemp food
10    establishment's expense, to a third-party testing
11    laboratory for potency testing to ensure 0.3% THC
12    compliance on an annual basis;
13        (4) use only the varietal or proportional varietals of
14    ingredients included in the tested recipe for all
15    subsequent batches of the recipe; and
16        (5) provide documentation of the annual test results
17    of the recipe submitted under this paragraph upon
18    registration and to an inspector upon request during any
19    inspection authorized by the Department.
 
20    Section 40. Disclosure and labeling of ready-to-eat hemp
21cannabinoid products.
22    (a) Hemp food establishments must ensure that the total
23milligram content of each type of cannabinoid exceeding one
24milligram contained in each ready-to-eat hemp cannabinoid menu
25item is listed on the menu adjacent to the name or the price of

 

 

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1the associated menu item.
2    (b) Hemp food establishments must ensure that served
3ready-to-eat hemp cannabinoid menu items include a label that:
4        (1) indicates the total milligram content of the
5    served items; and
6        (2) provides a QR code for a link to a web page
7    containing a copy of:
8            (A) the testing results of the intermediate hemp
9        product used;
10            (B) the dosing standard operating procedure; and
11            (C) a representative compliance test for the
12        recipe.
 
13    Section 45. Administrative hearings.
14    (a) Administrative hearings involving licenses issued
15under this Act shall be conducted under the Department issuing
16the licenses' rules governing formal administrative
17proceedings.
18    (b) The following administrative fines may be imposed by
19the Department upon any person or entity who violates any
20provision of this Act or any rule adopted by any State
21department under this Act:
22        (1) a penalty of $2,500 for a first violation;
23        (2) a penalty of $5,000 for a second violation at the
24    same location within 2 years of the first violation; and
25        (3) a penalty of $10,000 for a third or subsequent

 

 

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1    violation at the same location within 2 years of the
2    second or subsequent violation.
3    Any penalty of $5,000 or greater that is not paid within
4120 days of issuance of notice from the Department shall be
5submitted to the Department of Revenue for collection as
6provided under the Illinois State Collection Act of 1986. The
7Department may prohibit any person from selling or
8distributing a hemp cannabinoid product for failure to pay an
9administrative monetary penalty within 60 days of issuance of
10notice from the Department.
11    (c) All final administrative decisions of the Department
12are subject to judicial review under the Administrative Review
13Law. For the purposes of this subsection, "administrative
14decision" has the meaning given to that term in Section 3-101
15of the Code of Civil Procedure.