103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2281

 

Introduced 2/10/2023, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 130/130
410 ILCS 705/15-70
410 ILCS 705/15-85

    Amends the Compassionate Use of Medical Cannabis Program Act and the Cannabis Regulation and Tax Act. Allows dispensing organizations to establish a protocol to dispense cannabis on any real property or parking area under the dispensary's ownership or control, such as transactions at drive-through windows. Requires the protocol to adhere to the requirements for point-of-sale dispensing transactions under the Acts. In the Cannabis Regulation and Tax Act, removes language prohibiting dispensing organizations from operating drive-through windows. Prohibits dispensing organizations from transporting cannabis to residences or other locations beyond the real property or parking area under the ownership or control of the dispensary where purchasers may be for delivery (rather than from transporting cannabis to residences or other locations where purchasers may be for delivery).


LRB103 28120 CPF 54499 b

 

 

A BILL FOR

 

SB2281LRB103 28120 CPF 54499 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 Compassionate Use of Medical Cannabis
5Program Act is amended by changing Section 130 as follows:
 
6    (410 ILCS 130/130)
7    Sec. 130. Requirements; prohibitions; penalties;
8dispensing organizations.
9    (a) The Department of Financial and Professional
10Regulation shall implement the provisions of this Section by
11rule.
12    (b) A dispensing organization shall maintain operating
13documents which shall include procedures for the oversight of
14the registered dispensing organization and procedures to
15ensure accurate recordkeeping.
16    (c) A dispensing organization shall implement appropriate
17security measures, as provided by rule, to deter and prevent
18the theft of cannabis and unauthorized entrance into areas
19containing cannabis.
20    (d) A dispensing organization may not be located within
211,000 feet of the property line of a pre-existing public or
22private preschool or elementary or secondary school or day
23care center, day care home, group day care home, or part day

 

 

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1child care facility. A registered dispensing organization may
2not be located in a house, apartment, condominium, or an area
3zoned for residential use. This subsection shall not apply to
4any dispensing organizations registered on or after July 1,
52019.
6    (e) A dispensing organization is prohibited from acquiring
7cannabis from anyone other than a cultivation center, craft
8grower, processing organization, another dispensing
9organization, or transporting organization licensed or
10registered under this Act or the Cannabis Regulation and Tax
11Act. A dispensing organization is prohibited from obtaining
12cannabis from outside the State of Illinois.
13    (f) A registered dispensing organization is prohibited
14from dispensing cannabis for any purpose except to assist
15registered qualifying patients with the medical use of
16cannabis directly or through the qualifying patients'
17designated caregivers.
18    (g) The area in a dispensing organization where medical
19cannabis is stored can only be accessed by dispensing
20organization agents working for the dispensing organization,
21Department of Financial and Professional Regulation staff
22performing inspections, law enforcement or other emergency
23personnel, and contractors working on jobs unrelated to
24medical cannabis, such as installing or maintaining security
25devices or performing electrical wiring.
26    (h) A dispensing organization may not dispense more than

 

 

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12.5 ounces of cannabis to a registered qualifying patient,
2directly or via a designated caregiver, in any 14-day period
3unless the qualifying patient has a Department of Public
4Health-approved quantity waiver. Any Department of Public
5Health-approved quantity waiver process must be made available
6to qualified veterans.
7    (i) Except as provided in subsection (i-5), before medical
8cannabis may be dispensed to a designated caregiver or a
9registered qualifying patient, a dispensing organization agent
10must determine that the individual is a current cardholder in
11the verification system and must verify each of the following:
12        (1) that the registry identification card presented to
13    the registered dispensing organization is valid;
14        (2) that the person presenting the card is the person
15    identified on the registry identification card presented
16    to the dispensing organization agent;
17        (3) (blank); and
18        (4) that the registered qualifying patient has not
19    exceeded his or her adequate supply.
20    (i-5) A dispensing organization may dispense medical
21cannabis to an Opioid Alternative Pilot Program participant
22under Section 62 and to a person presenting proof of
23provisional registration under Section 55. Before dispensing
24medical cannabis, the dispensing organization shall comply
25with the requirements of Section 62 or Section 55, whichever
26is applicable, and verify the following:

 

 

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1        (1) that the written certification presented to the
2    registered dispensing organization is valid and an
3    original document;
4        (2) that the person presenting the written
5    certification is the person identified on the written
6    certification; and
7        (3) that the participant has not exceeded his or her
8    adequate supply.
9    (i-10) A dispensing organization may establish a protocol
10to dispense cannabis on any real property or parking area
11under the dispensary's ownership or control, such as
12transactions at drive-through windows. The protocol shall
13adhere to the requirements for point-of-sale dispensing
14transactions under this Act, including, but not limited to,
15camera recordings capturing each sale, the individuals
16involved, and the computer monitors used for the sale.
17    (j) Dispensing organizations shall ensure compliance with
18this limitation by maintaining internal, confidential records
19that include records specifying how much medical cannabis is
20dispensed to the registered qualifying patient and whether it
21was dispensed directly to the registered qualifying patient or
22to the designated caregiver. Each entry must include the date
23and time the cannabis was dispensed. Additional recordkeeping
24requirements may be set by rule.
25    (k) The health care professional-patient privilege as set
26forth by Section 8-802 of the Code of Civil Procedure shall

 

 

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1apply between a qualifying patient and a registered dispensing
2organization and its agents with respect to communications and
3records concerning qualifying patients' debilitating
4conditions.
5    (l) A dispensing organization may not permit any person to
6consume cannabis on the property of a medical cannabis
7organization.
8    (m) A dispensing organization may not share office space
9with or refer patients to a certifying health care
10professional.
11    (n) Notwithstanding any other criminal penalties related
12to the unlawful possession of cannabis, the Department of
13Financial and Professional Regulation may revoke, suspend,
14place on probation, reprimand, refuse to issue or renew, or
15take any other disciplinary or non-disciplinary action as the
16Department of Financial and Professional Regulation may deem
17proper with regard to the registration of any person issued
18under this Act to operate a dispensing organization or act as a
19dispensing organization agent, including imposing fines not to
20exceed $10,000 for each violation, for any violations of this
21Act and rules adopted in accordance with this Act. The
22procedures for disciplining a registered dispensing
23organization shall be determined by rule. All final
24administrative decisions of the Department of Financial and
25Professional Regulation are subject to judicial review under
26the Administrative Review Law and its rules. The term

 

 

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1"administrative decision" is defined as in Section 3-101 of
2the Code of Civil Procedure.
3    (o) Dispensing organizations are subject to random
4inspection and cannabis testing by the Department of Financial
5and Professional Regulation, the Illinois State Police, the
6Department of Revenue, the Department of Public Health, the
7Department of Agriculture, or as provided by rule.
8    (p) The Department of Financial and Professional
9Regulation shall adopt rules permitting returns, and potential
10refunds, for damaged or inadequate products.
11    (q) The Department of Financial and Professional
12Regulation may issue nondisciplinary citations for minor
13violations which may be accompanied by a civil penalty not to
14exceed $10,000 per violation. The penalty shall be a civil
15penalty or other condition as established by rule. The
16citation shall be issued to the licensee and shall contain the
17licensee's name, address, and license number, a brief factual
18statement, the Sections of the law or rule allegedly violated,
19and the civil penalty, if any, imposed. The citation must
20clearly state that the licensee may choose, in lieu of
21accepting the citation, to request a hearing. If the licensee
22does not dispute the matter in the citation with the
23Department of Financial and Professional Regulation within 30
24days after the citation is served, then the citation shall
25become final and shall not be subject to appeal.
26(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
 

 

 

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1    Section 10. The Cannabis Regulation and Tax Act is amended
2by changing Sections 15-70 and 15-85 as follows:
 
3    (410 ILCS 705/15-70)
4    Sec. 15-70. Operational requirements; prohibitions.
5    (a) A dispensing organization shall operate in accordance
6with the representations made in its application and license
7materials. It shall be in compliance with this Act and rules.
8    (b) A dispensing organization must include the legal name
9of the dispensary on the packaging of any cannabis product it
10sells.
11    (c) All cannabis, cannabis-infused products, and cannabis
12seeds must be obtained from an Illinois registered adult use
13cultivation center, craft grower, infuser, or another
14dispensary.
15    (d) Dispensing organizations are prohibited from selling
16any product containing alcohol except tinctures, which must be
17limited to containers that are no larger than 100 milliliters.
18    (e) A dispensing organization shall inspect and count
19product received from a transporting organization, adult use
20cultivation center, craft grower, infuser organization, or
21other dispensing organization before dispensing it.
22    (f) A dispensing organization may only accept cannabis
23deliveries into a restricted access area. Deliveries may not
24be accepted through the public or limited access areas unless

 

 

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1otherwise approved by the Department.
2    (g) A dispensing organization shall maintain compliance
3with State and local building, fire, and zoning requirements
4or regulations.
5    (h) A dispensing organization shall submit a list to the
6Department of the names of all service professionals that will
7work at the dispensary. The list shall include a description
8of the type of business or service provided. Changes to the
9service professional list shall be promptly provided. No
10service professional shall work in the dispensary until the
11name is provided to the Department on the service professional
12list.
13    (i) A dispensing organization's license allows for a
14dispensary to be operated only at a single location.
15    (j) A dispensary may operate between 6 a.m. and 10 p.m.
16local time.
17    (k) A dispensing organization must keep all lighting
18outside and inside the dispensary in good working order and
19wattage sufficient for security cameras.
20    (l) A dispensing organization must keep all air treatment
21systems that will be installed to reduce odors in good working
22order.
23    (m) A dispensing organization must contract with a private
24security contractor that is licensed under Section 10-5 of the
25Private Detective, Private Alarm, Private Security,
26Fingerprint Vendor, and Locksmith Act of 2004 to provide

 

 

SB2281- 9 -LRB103 28120 CPF 54499 b

1on-site security at all hours of the dispensary's operation.
2    (n) A dispensing organization shall ensure that any
3building or equipment used by a dispensing organization for
4the storage or sale of cannabis is maintained in a clean and
5sanitary condition.
6    (o) The dispensary shall be free from infestation by
7insects, rodents, or pests.
8    (p) A dispensing organization shall not:
9        (1) Produce or manufacture cannabis;
10        (2) Accept a cannabis product from an adult use
11    cultivation center, craft grower, infuser, dispensing
12    organization, or transporting organization unless it is
13    pre-packaged and labeled in accordance with this Act and
14    any rules that may be adopted pursuant to this Act;
15        (3) Obtain cannabis or cannabis-infused products from
16    outside the State of Illinois;
17        (4) Sell cannabis or cannabis-infused products to a
18    purchaser unless the dispensing organization is licensed
19    under the Compassionate Use of Medical Cannabis Program
20    Act, and the individual is registered under the
21    Compassionate Use of Medical Cannabis Program or the
22    purchaser has been verified to be 21 years of age or older;
23        (5) Enter into an exclusive agreement with any adult
24    use cultivation center, craft grower, or infuser.
25    Dispensaries shall provide consumers an assortment of
26    products from various cannabis business establishment

 

 

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1    licensees such that the inventory available for sale at
2    any dispensary from any single cultivation center, craft
3    grower, processor, transporter, or infuser entity shall
4    not be more than 40% of the total inventory available for
5    sale. For the purpose of this subsection, a cultivation
6    center, craft grower, processor, or infuser shall be
7    considered part of the same entity if the licensees share
8    at least one principal officer. The Department may request
9    that a dispensary diversify its products as needed or
10    otherwise discipline a dispensing organization for
11    violating this requirement;
12        (6) Refuse to conduct business with an adult use
13    cultivation center, craft grower, transporting
14    organization, or infuser that has the ability to properly
15    deliver the product and is permitted by the Department of
16    Agriculture, on the same terms as other adult use
17    cultivation centers, craft growers, infusers, or
18    transporters with whom it is dealing;
19        (7) (Blank) Operate drive-through windows;
20        (8) Allow for the dispensing of cannabis or
21    cannabis-infused products in vending machines;
22        (9) Transport cannabis to residences or other
23    locations beyond the real property or parking area under
24    the ownership or control of the dispensary where
25    purchasers may be for delivery;
26        (10) Enter into agreements to allow persons who are

 

 

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1    not dispensing organization agents to deliver cannabis or
2    to transport cannabis to purchasers;
3        (11) Operate a dispensary if its video surveillance
4    equipment is inoperative;
5        (12) Operate a dispensary if the point-of-sale
6    equipment is inoperative;
7        (13) Operate a dispensary if the State's cannabis
8    electronic verification system is inoperative;
9        (14) Have fewer than 2 people working at the
10    dispensary at any time while the dispensary is open;
11        (15) Be located within 1,500 feet of the property line
12    of a pre-existing dispensing organization, unless the
13    applicant is a Social Equity Applicant or Social Equity
14    Justice Involved Applicant located or seeking to locate
15    within 1,500 feet of a dispensing organization licensed
16    under Section 15-15 or Section 15-20;
17        (16) Sell clones or any other live plant material;
18        (17) Sell cannabis, cannabis concentrate, or
19    cannabis-infused products in combination or bundled with
20    each other or any other items for one price, and each item
21    of cannabis, concentrate, or cannabis-infused product must
22    be separately identified by quantity and price on the
23    receipt;
24        (18) Violate any other requirements or prohibitions
25    set by Department rules.
26    (q) It is unlawful for any person having an Early Approval

 

 

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1Adult Use Cannabis Dispensing Organization License, a
2Conditional Adult Use Cannabis Dispensing Organization, an
3Adult Use Dispensing Organization License, or a medical
4cannabis dispensing organization license issued under the
5Compassionate Use of Medical Cannabis Program Act or any
6officer, associate, member, representative, or agent of such
7licensee to accept, receive, or borrow money or anything else
8of value or accept or receive credit (other than merchandising
9credit in the ordinary course of business for a period not to
10exceed 30 days) directly or indirectly from any adult use
11cultivation center, craft grower, infuser, or transporting
12organization in exchange for preferential placement on the
13dispensing organization's shelves, display cases, or website.
14This includes anything received or borrowed or from any
15stockholders, officers, agents, or persons connected with an
16adult use cultivation center, craft grower, infuser, or
17transporting organization.
18    (r) It is unlawful for any person having an Early Approval
19Adult Use Cannabis Dispensing Organization License, a
20Conditional Adult Use Cannabis Dispensing Organization, an
21Adult Use Dispensing Organization License, or a medical
22cannabis dispensing organization license issued under the
23Compassionate Use of Medical Cannabis Program to enter into
24any contract with any person licensed to cultivate, process,
25or transport cannabis whereby such dispensing organization
26agrees not to sell any cannabis cultivated, processed,

 

 

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1transported, manufactured, or distributed by any other
2cultivator, transporter, or infuser, and any provision in any
3contract violative of this Section shall render the whole of
4such contract void and no action shall be brought thereon in
5any court.
6(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
7102-98, eff. 7-15-21.)
 
8    (410 ILCS 705/15-85)
9    Sec. 15-85. Dispensing cannabis.
10    (a) Before a dispensing organization agent dispenses
11cannabis to a purchaser, the agent shall:
12        (1) Verify the age of the purchaser by checking a
13    government-issued identification card by use of an
14    electronic reader or electronic scanning device to scan a
15    purchaser's government-issued identification, if
16    applicable, to determine the purchaser's age and the
17    validity of the identification;
18        (2) Verify the validity of the government-issued
19    identification card by use of an electronic reader or
20    electronic scanning device to scan a purchaser's
21    government-issued identification, if applicable, to
22    determine the purchaser's age and the validity of the
23    identification;
24        (3) Offer any appropriate purchaser education or
25    support materials;

 

 

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1        (4) Enter the following information into the State's
2    cannabis electronic verification system:
3            (i) The dispensing organization agent's
4        identification number, or if the agent's card
5        application is pending the Department's approval, a
6        temporary and unique identifier until the agent's card
7        application is approved or denied by the Department;
8            (ii) The dispensing organization's identification
9        number;
10            (iii) The amount, type (including strain, if
11        applicable) of cannabis or cannabis-infused product
12        dispensed;
13            (iv) The date and time the cannabis was dispensed.
14    (b) A dispensing organization shall refuse to sell
15cannabis or cannabis-infused products to any person unless the
16person produces a valid identification showing that the person
17is 21 years of age or older. A medical cannabis dispensing
18organization may sell cannabis or cannabis-infused products to
19a person who is under 21 years of age if the sale complies with
20the provisions of the Compassionate Use of Medical Cannabis
21Program Act and rules.
22    (c) For the purposes of this Section, valid identification
23must:
24        (1) Be valid and unexpired;
25        (2) Contain a photograph and the date of birth of the
26    person.

 

 

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1    (d) A dispensing organization may establish a protocol to
2dispense cannabis on any real property or parking area under
3the dispensary's ownership or control, such as transactions at
4drive-through windows. The protocol shall adhere to the
5requirements for point-of-sale dispensing transactions under
6this Act, including, but not limited to, camera recordings
7capturing each sale, the individuals involved, and the
8computer monitors used for the sale.
9(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
10102-98, eff. 7-15-21.)