Rep. Marcus C. Evans, Jr.

Filed: 3/27/2024

 

 


 

 


 
10300HB5562ham001LRB103 39472 CES 71157 a

1
AMENDMENT TO HOUSE BILL 5562

2    AMENDMENT NO. ______. Amend House Bill 5562 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Compassionate Use of Medical Cannabis
5Program Act is amended by changing Section 145 as follows:
 
6    (410 ILCS 130/145)
7    Sec. 145. Confidentiality.
8    (a) The following information received and records kept by
9the Department of Public Health, Department of Financial and
10Professional Regulation, Department of Agriculture, or
11Illinois State Police for purposes of administering this Act
12are subject to all applicable federal privacy laws,
13confidential, and exempt from the Freedom of Information Act,
14and not subject to disclosure to any individual or public or
15private entity, except as necessary for authorized employees
16of those authorized agencies to perform official duties under

 

 

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1this Act and the following information received and records
2kept by Department of Public Health, Department of
3Agriculture, Department of Financial and Professional
4Regulation, and Illinois State Police, excluding any existing
5or non-existing Illinois or national criminal history record
6information as defined in subsection (d), may be disclosed to
7each other upon request:
8        (1) Applications and renewals, their contents, and
9    supporting information submitted by qualifying patients
10    and designated caregivers, including information regarding
11    their designated caregivers and certifying health care
12    professionals.
13        (2) Applications and renewals, their contents, and
14    supporting information submitted by or on behalf of
15    cultivation centers and dispensing organizations in
16    compliance with this Act, including their physical
17    addresses. This does not preclude the release of ownership
18    information of cannabis business establishment licenses.
19        (3) The individual names and other information
20    identifying persons to whom the Department of Public
21    Health has issued registry identification cards.
22        (4) Any dispensing information required to be kept
23    under Section 135, Section 150, or Department of Public
24    Health, Department of Agriculture, or Department of
25    Financial and Professional Regulation rules shall identify
26    cardholders and registered cultivation centers by their

 

 

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1    registry identification numbers and medical cannabis
2    dispensing organizations by their registration number and
3    not contain names or other personally identifying
4    information.
5        (5) All medical records provided to the Department of
6    Public Health in connection with an application for a
7    registry card.
8    (b) Nothing in this Section precludes the following:
9        (1) Department of Agriculture, Department of Financial
10    and Professional Regulation, or Public Health employees
11    may notify law enforcement about falsified or fraudulent
12    information submitted to the Departments if the employee
13    who suspects that falsified or fraudulent information has
14    been submitted conferred with his or her supervisor and
15    both agree that circumstances exist that warrant
16    reporting.
17        (2) If the employee conferred with his or her
18    supervisor and both agree that circumstances exist that
19    warrant reporting, Department of Public Health employees
20    may notify the Department of Financial and Professional
21    Regulation if there is reasonable cause to believe a
22    certifying health care professional:
23            (A) issued a written certification without a bona
24        fide health care professional-patient relationship
25        under this Act;
26            (B) issued a written certification to a person who

 

 

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1        was not under the certifying health care
2        professional's care for the debilitating medical
3        condition; or
4            (C) failed to abide by the acceptable and
5        prevailing standard of care when evaluating a
6        patient's medical condition.
7        (3) The Department of Public Health, Department of
8    Agriculture, and Department of Financial and Professional
9    Regulation may notify State or local law enforcement about
10    apparent criminal violations of this Act if the employee
11    who suspects the offense has conferred with his or her
12    supervisor and both agree that circumstances exist that
13    warrant reporting.
14        (4) Medical cannabis cultivation center agents and
15    medical cannabis dispensing organizations may notify the
16    Department of Public Health, Department of Financial and
17    Professional Regulation, or Department of Agriculture of a
18    suspected violation or attempted violation of this Act or
19    the rules issued under it.
20        (5) Each Department may verify registry identification
21    cards under Section 150.
22        (6) The submission of the report to the General
23    Assembly under Section 160.
24    (b-5) Each Department responsible for licensure under this
25Act shall publish on the Department's website a list of the
26ownership information of cannabis business establishment

 

 

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

 

 

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1necessary to support the administration of social equity
2programming.
3(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;
4102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
5    Section 10. The Cannabis Regulation and Tax Act is amended
6by changing Sections 1-10, 7-10, 7-15, and 55-30 as follows:
 
7    (410 ILCS 705/1-10)
8    Sec. 1-10. Definitions. In this Act:
9    "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13    "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing
16organization under this Act and any administrative rule made
17in furtherance of this Act.
18    "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed
24cannabis business establishment.

 

 

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1    "Application points" means the number of points a
2Dispensary Applicant receives on an application for a
3Conditional Adult Use Dispensing Organization License.
4    "BLS Region" means a region in Illinois used by the United
5States Bureau of Labor Statistics to gather and categorize
6certain employment and wage data. The 17 such regions in
7Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
8Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
9Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
10Rockford, St. Louis, Springfield, Northwest Illinois
11nonmetropolitan area, West Central Illinois nonmetropolitan
12area, East Central Illinois nonmetropolitan area, and South
13Illinois nonmetropolitan area.
14    "By lot" means a randomized method of choosing between 2
15or more Eligible Tied Applicants or 2 or more Qualifying
16Applicants.
17    "Cannabis" means marijuana, hashish, and other substances
18that are identified as including any parts of the plant
19Cannabis sativa and including derivatives or subspecies, such
20as indica, of all strains of cannabis, whether growing or not;
21the seeds thereof, the resin extracted from any part of the
22plant; and any compound, manufacture, salt, derivative,
23mixture, or preparation of the plant, its seeds, or resin,
24including tetrahydrocannabinol (THC) and all other naturally
25produced cannabinol derivatives, whether produced directly or
26indirectly by extraction; however, "cannabis" does not include

 

 

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1the mature stalks of the plant, fiber produced from the
2stalks, oil or cake made from the seeds of the plant, any other
3compound, manufacture, salt, derivative, mixture, or
4preparation of the mature stalks (except the resin extracted
5from it), fiber, oil or cake, or the sterilized seed of the
6plant that is incapable of germination. "Cannabis" does not
7include industrial hemp as defined and authorized under the
8Industrial Hemp Act. "Cannabis" also means cannabis flower,
9concentrate, and cannabis-infused products.
10    "Cannabis business establishment" means a cultivation
11center, craft grower, processing organization, infuser
12organization, dispensing organization, or transporting
13organization.
14    "Cannabis concentrate" means a product derived from
15cannabis that is produced by extracting cannabinoids,
16including tetrahydrocannabinol (THC), from the plant through
17the use of propylene glycol, glycerin, butter, olive oil, or
18other typical cooking fats; water, ice, or dry ice; or butane,
19propane, CO2, ethanol, or isopropanol and with the intended
20use of smoking or making a cannabis-infused product. The use
21of any other solvent is expressly prohibited unless and until
22it is approved by the Department of Agriculture.
23    "Cannabis container" means a sealed or resealable,
24traceable, container, or package used for the purpose of
25containment of cannabis or cannabis-infused product during
26transportation.

 

 

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1    "Cannabis flower" means marijuana, hashish, and other
2substances that are identified as including any parts of the
3plant Cannabis sativa and including derivatives or subspecies,
4such as indica, of all strains of cannabis; including raw
5kief, leaves, and buds, but not resin that has been extracted
6from any part of such plant; nor any compound, manufacture,
7salt, derivative, mixture, or preparation of such plant, its
8seeds, or resin.
9    "Cannabis-infused product" means a beverage, food, oil,
10ointment, tincture, topical formulation, or another product
11containing cannabis or cannabis concentrate that is not
12intended to be smoked.
13    "Cannabis paraphernalia" means equipment, products, or
14materials intended to be used for planting, propagating,
15cultivating, growing, harvesting, manufacturing, producing,
16processing, preparing, testing, analyzing, packaging,
17repackaging, storing, containing, concealing, ingesting, or
18otherwise introducing cannabis into the human body.
19    "Cannabis plant monitoring system" or "plant monitoring
20system" means a system that includes, but is not limited to,
21testing and data collection established and maintained by the
22cultivation center, craft grower, or processing organization
23and that is available to the Department of Revenue, the
24Department of Agriculture, the Department of Financial and
25Professional Regulation, and the Illinois State Police for the
26purposes of documenting each cannabis plant and monitoring

 

 

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1plant development throughout the life cycle of a cannabis
2plant cultivated for the intended use by a customer from seed
3planting to final packaging.
4    "Cannabis testing facility" means an entity registered by
5the Department of Agriculture to test cannabis for potency and
6contaminants.
7    "Clone" means a plant section from a female cannabis plant
8not yet rootbound, growing in a water solution or other
9propagation matrix, that is capable of developing into a new
10plant.
11    "Community College Cannabis Vocational Training Pilot
12Program faculty participant" means a person who is 21 years of
13age or older, licensed by the Department of Agriculture, and
14is employed or contracted by an Illinois community college to
15provide student instruction using cannabis plants at an
16Illinois Community College.
17    "Community College Cannabis Vocational Training Pilot
18Program faculty participant Agent Identification Card" means a
19document issued by the Department of Agriculture that
20identifies a person as a Community College Cannabis Vocational
21Training Pilot Program faculty participant.
22    "Conditional Adult Use Dispensing Organization License"
23means a contingent license awarded to applicants for an Adult
24Use Dispensing Organization License that reserves the right to
25an Adult Use Dispensing Organization License if the applicant
26meets certain conditions described in this Act, but does not

 

 

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1entitle the recipient to begin purchasing or selling cannabis
2or cannabis-infused products.
3    "Conditional Adult Use Cultivation Center License" means a
4license awarded to top-scoring applicants for an Adult Use
5Cultivation Center License that reserves the right to an Adult
6Use Cultivation Center License if the applicant meets certain
7conditions as determined by the Department of Agriculture by
8rule, but does not entitle the recipient to begin growing,
9processing, or selling cannabis or cannabis-infused products.
10    "Craft grower" means a facility operated by an
11organization or business that is licensed by the Department of
12Agriculture to cultivate, dry, cure, and package cannabis and
13perform other necessary activities to make cannabis available
14for sale at a dispensing organization or use at a processing
15organization. A craft grower may contain up to 5,000 square
16feet of canopy space on its premises for plants in the
17flowering state. The Department of Agriculture may authorize
18an increase or decrease of flowering stage cultivation space
19in increments of 3,000 square feet by rule based on market
20need, craft grower capacity, and the licensee's history of
21compliance or noncompliance, with a maximum space of 14,000
22square feet for cultivating plants in the flowering stage,
23which must be cultivated in all stages of growth in an enclosed
24and secure area. A craft grower may share premises with a
25processing organization or a dispensing organization, or both,
26provided each licensee stores currency and cannabis or

 

 

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1cannabis-infused products in a separate secured vault to which
2the other licensee does not have access or all licensees
3sharing a vault share more than 50% of the same ownership.
4    "Craft grower agent" means a principal officer, board
5member, employee, or other agent of a craft grower who is 21
6years of age or older.
7    "Craft Grower Agent Identification Card" means a document
8issued by the Department of Agriculture that identifies a
9person as a craft grower agent.
10    "Cultivation center" means a facility operated by an
11organization or business that is licensed by the Department of
12Agriculture to cultivate, process, transport (unless otherwise
13limited by this Act), and perform other necessary activities
14to provide cannabis and cannabis-infused products to cannabis
15business establishments.
16    "Cultivation center agent" means a principal officer,
17board member, employee, or other agent of a cultivation center
18who is 21 years of age or older.
19    "Cultivation Center Agent Identification Card" means a
20document issued by the Department of Agriculture that
21identifies a person as a cultivation center agent.
22    "Currency" means currency and coin of the United States.
23    "Dispensary" means a facility operated by a dispensing
24organization at which activities licensed by this Act may
25occur.
26    "Dispensary Applicant" means the Proposed Dispensing

 

 

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1Organization Name as stated on an application for a
2Conditional Adult Use Dispensing Organization License.
3    "Dispensing organization" means a facility operated by an
4organization or business that is licensed by the Department of
5Financial and Professional Regulation to acquire cannabis from
6a cultivation center, craft grower, processing organization,
7or another dispensary for the purpose of selling or dispensing
8cannabis, cannabis-infused products, cannabis seeds,
9paraphernalia, or related supplies under this Act to
10purchasers or to qualified registered medical cannabis
11patients and caregivers. As used in this Act, "dispensing
12organization" includes a registered medical cannabis
13organization as defined in the Compassionate Use of Medical
14Cannabis Program Act or its successor Act that has obtained an
15Early Approval Adult Use Dispensing Organization License.
16    "Dispensing organization agent" means a principal officer,
17employee, or agent of a dispensing organization who is 21
18years of age or older.
19    "Dispensing organization agent identification card" means
20a document issued by the Department of Financial and
21Professional Regulation that identifies a person as a
22dispensing organization agent.
23    "Disproportionately Impacted Area" means a census tract or
24comparable geographic area that satisfies the following
25criteria as determined by the Department of Commerce and
26Economic Opportunity, that:

 

 

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1        (1) meets at least one of the following criteria:
2            (A) the area has a poverty rate of at least 20%
3        according to the latest federal decennial census; or
4            (B) 75% or more of the children in the area
5        participate in the federal free lunch program
6        according to reported statistics from the State Board
7        of Education; or
8            (C) at least 20% of the households in the area
9        receive assistance under the Supplemental Nutrition
10        Assistance Program; or
11            (D) the area has an average unemployment rate, as
12        determined by the Illinois Department of Employment
13        Security, that is more than 120% of the national
14        unemployment average, as determined by the United
15        States Department of Labor, for a period of at least 2
16        consecutive calendar years preceding the date of the
17        application; and
18        (2) has high rates of arrest, conviction, and
19    incarceration related to the sale, possession, use,
20    cultivation, manufacture, or transport of cannabis.
21    "Early Approval Adult Use Cultivation Center License"
22means a license that permits a medical cannabis cultivation
23center licensed under the Compassionate Use of Medical
24Cannabis Program Act as of the effective date of this Act to
25begin cultivating, infusing, packaging, transporting (unless
26otherwise provided in this Act), processing, and selling

 

 

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1cannabis or cannabis-infused product to cannabis business
2establishments for resale to purchasers as permitted by this
3Act as of January 1, 2020.
4    "Early Approval Adult Use Dispensing Organization License"
5means a license that permits a medical cannabis dispensing
6organization licensed under the Compassionate Use of Medical
7Cannabis Program Act as of the effective date of this Act to
8begin selling cannabis or cannabis-infused product to
9purchasers as permitted by this Act as of January 1, 2020.
10    "Early Approval Adult Use Dispensing Organization at a
11secondary site" means a license that permits a medical
12cannabis dispensing organization licensed under the
13Compassionate Use of Medical Cannabis Program Act as of the
14effective date of this Act to begin selling cannabis or
15cannabis-infused product to purchasers as permitted by this
16Act on January 1, 2020 at a different dispensary location from
17its existing registered medical dispensary location.
18    "Eligible Tied Applicant" means a Tied Applicant that is
19eligible to participate in the process by which a remaining
20available license is distributed by lot pursuant to a Tied
21Applicant Lottery.
22    "Enclosed, locked facility" means a room, greenhouse,
23building, or other enclosed area equipped with locks or other
24security devices that permit access only by cannabis business
25establishment agents working for the licensed cannabis
26business establishment or acting pursuant to this Act to

 

 

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1cultivate, process, store, or distribute cannabis.
2    "Enclosed, locked space" means a closet, room, greenhouse,
3building, or other enclosed area equipped with locks or other
4security devices that permit access only by authorized
5individuals under this Act. "Enclosed, locked space" may
6include:
7        (1) a space within a residential building that (i) is
8    the primary residence of the individual cultivating 5 or
9    fewer cannabis plants that are more than 5 inches tall and
10    (ii) includes sleeping quarters and indoor plumbing. The
11    space must only be accessible by a key or code that is
12    different from any key or code that can be used to access
13    the residential building from the exterior; or
14        (2) a structure, such as a shed or greenhouse, that
15    lies on the same plot of land as a residential building
16    that (i) includes sleeping quarters and indoor plumbing
17    and (ii) is used as a primary residence by the person
18    cultivating 5 or fewer cannabis plants that are more than
19    5 inches tall, such as a shed or greenhouse. The structure
20    must remain locked when it is unoccupied by people.
21    "Financial institution" has the same meaning as "financial
22organization" as defined in Section 1501 of the Illinois
23Income Tax Act, and also includes the holding companies,
24subsidiaries, and affiliates of such financial organizations.
25    "Flowering stage" means the stage of cultivation where and
26when a cannabis plant is cultivated to produce plant material

 

 

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1for cannabis products. This includes mature plants as follows:
2        (1) if greater than 2 stigmas are visible at each
3    internode of the plant; or
4        (2) if the cannabis plant is in an area that has been
5    intentionally deprived of light for a period of time
6    intended to produce flower buds and induce maturation,
7    from the moment the light deprivation began through the
8    remainder of the marijuana plant growth cycle.
9    "Individual" means a natural person.
10    "Infuser organization" or "infuser" means a facility
11operated by an organization or business that is licensed by
12the Department of Agriculture to directly incorporate cannabis
13or cannabis concentrate into a product formulation to produce
14a cannabis-infused product.
15    "Kief" means the resinous crystal-like trichomes that are
16found on cannabis and that are accumulated, resulting in a
17higher concentration of cannabinoids, untreated by heat or
18pressure, or extracted using a solvent.
19    "Labor peace agreement" means an agreement between a
20cannabis business establishment and any labor organization
21recognized under the National Labor Relations Act, referred to
22in this Act as a bona fide labor organization, that prohibits
23labor organizations and members from engaging in picketing,
24work stoppages, boycotts, and any other economic interference
25with the cannabis business establishment. This agreement means
26that the cannabis business establishment has agreed not to

 

 

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1disrupt efforts by the bona fide labor organization to
2communicate with, and attempt to organize and represent, the
3cannabis business establishment's employees. The agreement
4shall provide a bona fide labor organization access at
5reasonable times to areas in which the cannabis business
6establishment's employees work, for the purpose of meeting
7with employees to discuss their right to representation,
8employment rights under State law, and terms and conditions of
9employment. This type of agreement shall not mandate a
10particular method of election or certification of the bona
11fide labor organization.
12    "Limited access area" means a room or other area under the
13control of a cannabis dispensing organization licensed under
14this Act and upon the licensed premises where cannabis sales
15occur with access limited to purchasers, dispensing
16organization owners and other dispensing organization agents,
17or service professionals conducting business with the
18dispensing organization, or, if sales to registered qualifying
19patients, caregivers, provisional patients, and Opioid
20Alternative Pilot Program participants licensed pursuant to
21the Compassionate Use of Medical Cannabis Program Act are also
22permitted at the dispensary, registered qualifying patients,
23caregivers, provisional patients, and Opioid Alternative Pilot
24Program participants.
25    "Member of an impacted family" means an individual who has
26a parent, legal guardian, child, spouse, or dependent, or was

 

 

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1a dependent of an individual who, prior to the effective date
2of this Act, was arrested for, convicted of, or adjudicated
3delinquent for any offense that is eligible for expungement
4under this Act.
5    "Mother plant" means a cannabis plant that is cultivated
6or maintained for the purpose of generating clones, and that
7will not be used to produce plant material for sale to an
8infuser or dispensing organization.
9    "Ordinary public view" means within the sight line with
10normal visual range of a person, unassisted by visual aids,
11from a public street or sidewalk adjacent to real property, or
12from within an adjacent property.
13    "Ownership and control" means ownership of at least 51% of
14the business, including corporate stock if a corporation, and
15control over the management and day-to-day operations of the
16business and an interest in the capital, assets, and profits
17and losses of the business proportionate to percentage of
18ownership.
19    "Person" means a natural individual, firm, partnership,
20association, joint stock company, joint venture, public or
21private corporation, limited liability company, or a receiver,
22executor, trustee, guardian, or other representative appointed
23by order of any court.
24    "Possession limit" means the amount of cannabis under
25Section 10-10 that may be possessed at any one time by a person
2621 years of age or older or who is a registered qualifying

 

 

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1medical cannabis patient or caregiver under the Compassionate
2Use of Medical Cannabis Program Act.
3    "Principal officer" includes a cannabis business
4establishment applicant or licensed cannabis business
5establishment's board member, owner with more than 1% interest
6of the total cannabis business establishment or more than 5%
7interest of the total cannabis business establishment of a
8publicly traded company, president, vice president, secretary,
9treasurer, partner, officer, member, manager member, or person
10with a profit sharing, financial interest, or revenue sharing
11arrangement. The definition includes a person with authority
12to control the cannabis business establishment, a person who
13assumes responsibility for the debts of the cannabis business
14establishment and who is further defined in this Act.
15    "Primary residence" means a dwelling where a person
16usually stays or stays more often than other locations. It may
17be determined by, without limitation, presence, tax filings;
18address on an Illinois driver's license, an Illinois
19Identification Card, or an Illinois Person with a Disability
20Identification Card; or voter registration. No person may have
21more than one primary residence.
22    "Processing organization" or "processor" means a facility
23operated by an organization or business that is licensed by
24the Department of Agriculture to either extract constituent
25chemicals or compounds to produce cannabis concentrate or
26incorporate cannabis or cannabis concentrate into a product

 

 

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1formulation to produce a cannabis product.
2    "Processing organization agent" means a principal officer,
3board member, employee, or agent of a processing organization.
4    "Processing organization agent identification card" means
5a document issued by the Department of Agriculture that
6identifies a person as a processing organization agent.
7    "Purchaser" means a person 21 years of age or older who
8acquires cannabis for a valuable consideration. "Purchaser"
9does not include a cardholder under the Compassionate Use of
10Medical Cannabis Program Act.
11    "Qualifying Applicant" means an applicant that submitted
12an application pursuant to Section 15-30 that received at
13least 85% of 250 application points available under Section
1415-30 as the applicant's final score and meets the definition
15of "Social Equity Applicant" as set forth under this Section.
16    "Qualifying Social Equity Justice Involved Applicant"
17means an applicant that submitted an application pursuant to
18Section 15-30 that received at least 85% of 250 application
19points available under Section 15-30 as the applicant's final
20score and meets the criteria of either paragraph (1) or (2) of
21the definition of "Social Equity Applicant" as set forth under
22this Section.
23    "Qualified Social Equity Applicant" means a Social Equity
24Applicant who has been awarded a conditional license under
25this Act to operate a cannabis business establishment.
26    "Resided" means an individual's primary residence was

 

 

10300HB5562ham001- 22 -LRB103 39472 CES 71157 a

1located within the relevant geographic area as established by
22 of the following:
3        (1) a signed lease agreement that includes the
4    applicant's name;
5        (2) a property deed that includes the applicant's
6    name;
7        (3) school records;
8        (4) a voter registration card;
9        (5) an Illinois driver's license, an Illinois
10    Identification Card, or an Illinois Person with a
11    Disability Identification Card;
12        (6) a paycheck stub;
13        (7) a utility bill;
14        (8) tax records; or
15        (9) any other proof of residency or other information
16    necessary to establish residence as provided by rule.
17    "Smoking" means the inhalation of smoke caused by the
18combustion of cannabis.
19    "Social Equity Applicant" means an applicant that is an
20Illinois resident that meets one of the following criteria:
21        (1) an applicant with at least 51% ownership and
22    control by one or more individuals who have resided for at
23    least 5 of the preceding 10 years in a Disproportionately
24    Impacted Area;
25        (2) an applicant with at least 51% ownership and
26    control by one or more individuals who:

 

 

10300HB5562ham001- 23 -LRB103 39472 CES 71157 a

1            (i) have been arrested for, convicted of, or
2        adjudicated delinquent for any offense that is
3        eligible for expungement under this Act; or
4            (ii) is a member of an impacted family;
5        (3) for applicants with a minimum of 10 full-time
6    employees, an applicant with at least 51% of current
7    employees who:
8            (i) currently reside in a Disproportionately
9        Impacted Area; or
10            (ii) have been arrested for, convicted of, or
11        adjudicated delinquent for any offense that is
12        eligible for expungement under this Act or member of
13        an impacted family.
14    Nothing in this Act shall be construed to preempt or limit
15the duties of any employer under the Job Opportunities for
16Qualified Applicants Act. Nothing in this Act shall permit an
17employer to require an employee to disclose sealed or expunged
18offenses, unless otherwise required by law.
19    "Social Equity Lottery Licensee" means a holder of an
20adult-use cannabis dispensary license awarded through a
21lottery held under subsection (c) of Section 15-35.20 of this
22Act.
23    "Tied Applicant" means an application submitted by a
24Dispensary Applicant pursuant to Section 15-30 that received
25the same number of application points under Section 15-30 as
26the Dispensary Applicant's final score as one or more

 

 

10300HB5562ham001- 24 -LRB103 39472 CES 71157 a

1top-scoring applications in the same BLS Region and would have
2been awarded a license but for the one or more other
3top-scoring applications that received the same number of
4application points. Each application for which a Dispensary
5Applicant was required to pay a required application fee for
6the application period ending January 2, 2020 shall be
7considered an application of a separate Tied Applicant.
8    "Tied Applicant Lottery" means the process established
9under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
10Use Dispensing Organization Licenses pursuant to Sections
1115-25 and 15-30 among Eligible Tied Applicants.
12    "Tincture" means a cannabis-infused solution, typically
13comprised of alcohol, glycerin, or vegetable oils, derived
14either directly from the cannabis plant or from a processed
15cannabis extract. A tincture is not an alcoholic liquor as
16defined in the Liquor Control Act of 1934. A tincture shall
17include a calibrated dropper or other similar device capable
18of accurately measuring servings.
19    "Transporting organization" or "transporter" means an
20organization or business that is licensed by the Department of
21Agriculture to transport cannabis or cannabis-infused product
22on behalf of a cannabis business establishment or a community
23college licensed under the Community College Cannabis
24Vocational Training Pilot Program.
25    "Transporting organization agent" means a principal
26officer, board member, employee, or agent of a transporting

 

 

10300HB5562ham001- 25 -LRB103 39472 CES 71157 a

1organization.
2    "Transporting organization agent identification card"
3means a document issued by the Department of Agriculture that
4identifies a person as a transporting organization agent.
5    "Unit of local government" means any county, city,
6village, or incorporated town.
7    "Vegetative stage" means the stage of cultivation in which
8a cannabis plant is propagated to produce additional cannabis
9plants or reach a sufficient size for production. This
10includes seedlings, clones, mothers, and other immature
11cannabis plants as follows:
12        (1) if the cannabis plant is in an area that has not
13    been intentionally deprived of light for a period of time
14    intended to produce flower buds and induce maturation, it
15    has no more than 2 stigmas visible at each internode of the
16    cannabis plant; or
17        (2) any cannabis plant that is cultivated solely for
18    the purpose of propagating clones and is never used to
19    produce cannabis.
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
21102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
225-13-22.)
 
23    (410 ILCS 705/7-10)
24    Sec. 7-10. Cannabis Business Development Fund.
25    (a) There is created in the State treasury a special fund,

 

 

10300HB5562ham001- 26 -LRB103 39472 CES 71157 a

1which shall be held separate and apart from all other State
2moneys, to be known as the Cannabis Business Development Fund.
3The Cannabis Business Development Fund shall be exclusively
4used for the following purposes:
5        (1) to provide low-interest rate loans to Qualified
6    Social Equity Applicants and Social Equity Lottery
7    Licensees to pay for ordinary and necessary expenses to
8    start and operate a cannabis business establishment
9    permitted by this Act;
10        (2) to provide grants to Qualified Social Equity
11    Applicants to pay for ordinary and necessary expenses to
12    start and operate a cannabis business establishment
13    permitted by this Act;
14        (3) to compensate the Department of Commerce and
15    Economic Opportunity for any costs related to the
16    provision of low-interest loans and grants to Qualified
17    Social Equity Applicants and Social Equity Lottery
18    Licensees;
19        (4) to pay for outreach that may be provided or
20    targeted to attract and support Social Equity Applicants,
21    and Qualified Social Equity Applicants, and Social Equity
22    Lottery Licensees;
23        (5) to provide financial assistance to support lending
24    to, or private investment in, Qualified Social Equity
25    Applicants and Social Equity Lottery Licensees, or to
26    facilitate access to the facilities needed to commence

 

 

10300HB5562ham001- 27 -LRB103 39472 CES 71157 a

1    operations as a cannabis business establishment (blank);
2        (6) to conduct any study or research concerning the
3    participation of minorities, women, veterans, or people
4    with disabilities in the cannabis industry, including,
5    without limitation, barriers to such individuals entering
6    the industry as equity owners of cannabis business
7    establishments;
8        (7) (blank); and
9        (8) to assist with job training and technical
10    assistance for residents in Disproportionately Impacted
11    Areas.
12    (b) All moneys collected under Sections 15-15 and 15-20
13for Early Approval Adult Use Dispensing Organization Licenses
14issued before January 1, 2021 and remunerations made as a
15result of transfers of permits awarded to Qualified Social
16Equity Applicants shall be deposited into the Cannabis
17Business Development Fund.
18    (c) (Blank).
19    (c-5) In addition to any other transfers that may be
20provided for by law, on July 1, 2023, or as soon thereafter as
21practical, the State Comptroller shall direct and the State
22Treasurer shall transfer the sum of $40,000,000 from the
23Compassionate Use of Medical Cannabis Fund to the Cannabis
24Business Development Fund.
25    (d) Notwithstanding any other law to the contrary, the
26Cannabis Business Development Fund is not subject to sweeps,

 

 

10300HB5562ham001- 28 -LRB103 39472 CES 71157 a

1administrative charge-backs, or any other fiscal or budgetary
2maneuver that would in any way transfer any amounts from the
3Cannabis Business Development Fund into any other fund of the
4State.
5(Source: P.A. 103-8, eff. 6-7-23.)
 
6    (410 ILCS 705/7-15)
7    Sec. 7-15. Loans, financial assistance, and grants to
8Qualified Social Equity Applicants and Social Equity Lottery
9Licensees.
10    (a) The Department of Commerce and Economic Opportunity
11shall establish grant, and loan, and financial assistance
12programs, subject to appropriations from the Cannabis Business
13Development Fund, for the purposes of providing financial
14assistance, loans, grants, and technical assistance to
15Qualified Social Equity Applicants and Social Equity Lottery
16Licensees.
17    (b) The Department of Commerce and Economic Opportunity
18has the power to:
19        (1) provide Cannabis Social Equity loans, financial
20    assistance, and grants from appropriations from the
21    Cannabis Business Development Fund to assist Qualified
22    Social Equity Applicants and Social Equity Lottery
23    Licensees in gaining entry to, and successfully operating
24    in, the State's regulated cannabis marketplace;
25        (2) enter into agreements that set forth terms and

 

 

10300HB5562ham001- 29 -LRB103 39472 CES 71157 a

1    conditions of the financial assistance, accept funds or
2    grants, and engage in cooperation with private entities
3    and agencies of State or local government to carry out the
4    purposes of this Section;
5        (3) fix, determine, charge, and collect any premiums,
6    fees, charges, costs and expenses, including application
7    fees, commitment fees, program fees, financing charges, or
8    publication fees in connection with its activities under
9    this Section;
10        (4) coordinate assistance under the financial
11    assistance these loan programs with activities of the
12    Illinois Department of Financial and Professional
13    Regulation, the Illinois Department of Agriculture, and
14    other agencies as needed to maximize the effectiveness and
15    efficiency of this Act;
16        (5) provide staff, administration, and related support
17    required to administer this Section;
18        (6) take whatever actions are necessary or appropriate
19    to protect the State's interest in the event of
20    bankruptcy, default, foreclosure, or noncompliance with
21    the terms and conditions of financial assistance provided
22    under this Section, including the ability to recapture
23    funds if the recipient is found to be noncompliant with
24    the terms and conditions of the financial assistance
25    agreement;
26        (6.5) enter into financial intermediary agreements to

 

 

10300HB5562ham001- 30 -LRB103 39472 CES 71157 a

1    facilitate lending to or investment in Qualified Social
2    Equity Applicants, Social Equity Lottery Licensees, or
3    their subsidiaries or affiliates, to ensure the
4    availability of facilities necessary to operate a cannabis
5    business establishment;
6        (7) establish application, notification, contract, and
7    other forms, procedures, or rules deemed necessary and
8    appropriate; and
9        (8) utilize vendors or contract work to carry out the
10    purposes of this Act.
11    (c) Loans made under this Section:
12        (1) shall only be made if, in the Department's
13    judgment, the project furthers the goals set forth in this
14    Act; and
15        (2) shall be in such principal amount and form and
16    contain such terms and provisions with respect to
17    security, insurance, reporting, delinquency charges,
18    default remedies, forgiveness, and other matters as the
19    Department shall determine appropriate to protect the
20    public interest and to be consistent with the purposes of
21    this Section. The terms and provisions may be less than
22    required for similar loans not covered by this Section;
23    and .
24        (3) may be distributed by lot if the Department
25    determines that the amount of funding available is
26    insufficient to provide an adequate amount of funding for

 

 

10300HB5562ham001- 31 -LRB103 39472 CES 71157 a

1    all of the applicants eligible to receive a loan. The
2    Department may determine the number of loans available
3    based on the amount of funding available and communicate
4    the number of loans available on the loan application. The
5    Department may use competitive criteria to establish which
6    applicants are eligible to receive a grant, loan, or
7    financial assistance.
8    (d) Grants made under this Section shall be awarded on a
9competitive and annual basis under the Grant Accountability
10and Transparency Act. Grants made under this Section shall
11further and promote the goals of this Act, including promotion
12of Social Equity Applicants, Qualified Social Equity
13Applicants, or Social Equity Lottery Licensees, job training
14and workforce development, and technical assistance to Social
15Equity Applicants and Social Equity Lottery Licensees. To the
16extent registration with the federal System for Award
17Management requires a grant applicant to certify compliance
18with all federal laws, the grant applicants under this Section
19shall not be required to register for a unique entity
20identifier through the federal System for Award Management to
21be qualified to receive a grant so long as federal law
22prohibits the cultivation and sale of cannabis.
23    (d-5) Financial intermediary agreements to provide
24financial assistance must further the goals set forth in this
25Act and shall result in financing or lease costs that are
26affordable or below market rate.

 

 

10300HB5562ham001- 32 -LRB103 39472 CES 71157 a

1    (e) Beginning January 1, 2021 and each year thereafter,
2the Department shall annually report to the Governor and the
3General Assembly on the outcomes and effectiveness of this
4Section that shall include the following:
5        (1) the number of persons or businesses receiving
6    financial assistance under this Section;
7        (2) the amount in financial assistance awarded in the
8    aggregate, in addition to the amount of loans made that
9    are outstanding and the amount of grants awarded;
10        (3) the location of the project engaged in by the
11    person or business; and
12        (4) if applicable, the number of new jobs and other
13    forms of economic output created as a result of the
14    financial assistance.
15    (f) The Department of Commerce and Economic Opportunity
16shall include engagement with individuals with limited English
17proficiency as part of its outreach provided or targeted to
18attract and support Social Equity Applicants.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/55-30)
21    Sec. 55-30. Confidentiality.
22    (a) Information provided by the cannabis business
23establishment licensees or applicants to the Department of
24Agriculture, the Department of Public Health, the Department
25of Financial and Professional Regulation, the Department of

 

 

10300HB5562ham001- 33 -LRB103 39472 CES 71157 a

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

 

 

10300HB5562ham001- 34 -LRB103 39472 CES 71157 a

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

 

 

10300HB5562ham001- 35 -LRB103 39472 CES 71157 a

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

 

 

10300HB5562ham001- 36 -LRB103 39472 CES 71157 a

1entity not expressly authorized by this Act.
2    (f) Each Department responsible for licensure under this
3Act shall publish on the Department's website a list of the
4ownership information of cannabis business establishment
5licensees under the Department's jurisdiction. The list shall
6include, but is not limited to: the name of the person or
7entity holding each cannabis business establishment license;
8and the address at which the entity is operating under this
9Act. This list shall be published and updated monthly.
10    (g) Notwithstanding anything in this Section to the
11contrary, the Department of Financial and Professional
12Regulation and the Department of Agriculture may share with
13the Department of Commerce and Economic Opportunity any
14licensee information necessary to support the administration
15of Social Equity programming.
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.)".