103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2550

 

Introduced 3/21/2023, by Sen. Celina Villanueva

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10

    Amends the Cannabis Regulation and Tax Act. Provides that a craft grower may contain canopy space on its premises for plants in the flowering state of up to 14,000 square feet (rather than a craft grower may contain canopy space on its premises for plants in the flowering state of up to 5,000 square feet unless the Department of Agriculture authorizes an increase in flowering stage cultivation space in increments of 3,000 up to 14,000 square feet).


LRB103 29357 AWJ 55745 b

 

 

A BILL FOR

 

SB2550LRB103 29357 AWJ 55745 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 Cannabis Regulation and Tax Act is amended
5by changing Section 1-10 as follows:
 
6    (410 ILCS 705/1-10)
7    Sec. 1-10. Definitions. In this Act:
8    "Adult Use Cultivation Center License" means a license
9issued by the Department of Agriculture that permits a person
10to act as a cultivation center under this Act and any
11administrative rule made in furtherance of this Act.
12    "Adult Use Dispensing Organization License" means a
13license issued by the Department of Financial and Professional
14Regulation that permits a person to act as a dispensing
15organization under this Act and any administrative rule made
16in furtherance of this Act.
17    "Advertise" means to engage in promotional activities
18including, but not limited to: newspaper, radio, Internet and
19electronic media, and television advertising; the distribution
20of fliers and circulars; billboard advertising; and the
21display of window and interior signs. "Advertise" does not
22mean exterior signage displaying only the name of the licensed
23cannabis 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 14,000 5,000
16square feet of canopy space on its premises for plants in the
17flowering state. Plants in the flowering stage The Department
18of Agriculture may authorize an increase or decrease of
19flowering stage cultivation space in increments of 3,000
20square feet by rule based on market need, craft grower
21capacity, and the licensee's history of compliance or
22noncompliance, with a maximum space of 14,000 square feet for
23cultivating plants in the flowering stage, which must be
24cultivated in all stages of growth in an enclosed and secure
25area. A craft grower may share premises with a processing
26organization or a dispensing organization, or both, provided

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1when a cannabis plant is cultivated to produce plant material
2for cannabis products. This includes mature plants as follows:
3        (1) if greater than 2 stigmas are visible at each
4    internode of the plant; or
5        (2) if the cannabis plant is in an area that has been
6    intentionally deprived of light for a period of time
7    intended to produce flower buds and induce maturation,
8    from the moment the light deprivation began through the
9    remainder of the marijuana plant growth cycle.
10    "Individual" means a natural person.
11    "Infuser organization" or "infuser" means a facility
12operated by an organization or business that is licensed by
13the Department of Agriculture to directly incorporate cannabis
14or cannabis concentrate into a product formulation to produce
15a cannabis-infused product.
16    "Kief" means the resinous crystal-like trichomes that are
17found on cannabis and that are accumulated, resulting in a
18higher concentration of cannabinoids, untreated by heat or
19pressure, or extracted using a solvent.
20    "Labor peace agreement" means an agreement between a
21cannabis business establishment and any labor organization
22recognized under the National Labor Relations Act, referred to
23in this Act as a bona fide labor organization, that prohibits
24labor organizations and members from engaging in picketing,
25work stoppages, boycotts, and any other economic interference
26with the cannabis business establishment. This agreement means

 

 

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

 

 

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1a parent, legal guardian, child, spouse, or dependent, or was
2a dependent of an individual who, prior to the effective date
3of this Act, was arrested for, convicted of, or adjudicated
4delinquent for any offense that is eligible for expungement
5under this Act.
6    "Mother plant" means a cannabis plant that is cultivated
7or maintained for the purpose of generating clones, and that
8will not be used to produce plant material for sale to an
9infuser or dispensing organization.
10    "Ordinary public view" means within the sight line with
11normal visual range of a person, unassisted by visual aids,
12from a public street or sidewalk adjacent to real property, or
13from within an adjacent property.
14    "Ownership and control" means ownership of at least 51% of
15the business, including corporate stock if a corporation, and
16control over the management and day-to-day operations of the
17business and an interest in the capital, assets, and profits
18and losses of the business proportionate to percentage of
19ownership.
20    "Person" means a natural individual, firm, partnership,
21association, joint stock company, joint venture, public or
22private corporation, limited liability company, or a receiver,
23executor, trustee, guardian, or other representative appointed
24by order of any court.
25    "Possession limit" means the amount of cannabis under
26Section 10-10 that may be possessed at any one time by a person

 

 

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

 

 

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1incorporate cannabis or cannabis concentrate into a product
2formulation to produce a cannabis product.
3    "Processing organization agent" means a principal officer,
4board member, employee, or agent of a processing organization.
5    "Processing organization agent identification card" means
6a document issued by the Department of Agriculture that
7identifies a person as a processing organization agent.
8    "Purchaser" means a person 21 years of age or older who
9acquires cannabis for a valuable consideration. "Purchaser"
10does not include a cardholder under the Compassionate Use of
11Medical Cannabis Program Act.
12    "Qualifying Applicant" means an applicant that submitted
13an application pursuant to Section 15-30 that received at
14least 85% of 250 application points available under Section
1515-30 as the applicant's final score and meets the definition
16of "Social Equity Applicant" as set forth under this Section.
17    "Qualifying Social Equity Justice Involved Applicant"
18means an applicant that submitted an application pursuant to
19Section 15-30 that received at least 85% of 250 application
20points available under Section 15-30 as the applicant's final
21score and meets the criteria of either paragraph (1) or (2) of
22the definition of "Social Equity Applicant" as set forth under
23this Section.
24    "Qualified Social Equity Applicant" means a Social Equity
25Applicant who has been awarded a conditional license under
26this Act to operate a cannabis business establishment.

 

 

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

 

 

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

 

 

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1application points. Each application for which a Dispensary
2Applicant was required to pay a required application fee for
3the application period ending January 2, 2020 shall be
4considered an application of a separate Tied Applicant.
5    "Tied Applicant Lottery" means the process established
6under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
7Use Dispensing Organization Licenses pursuant to Sections
815-25 and 15-30 among Eligible Tied Applicants.
9    "Tincture" means a cannabis-infused solution, typically
10comprised of alcohol, glycerin, or vegetable oils, derived
11either directly from the cannabis plant or from a processed
12cannabis extract. A tincture is not an alcoholic liquor as
13defined in the Liquor Control Act of 1934. A tincture shall
14include a calibrated dropper or other similar device capable
15of accurately measuring servings.
16    "Transporting organization" or "transporter" means an
17organization or business that is licensed by the Department of
18Agriculture to transport cannabis or cannabis-infused product
19on behalf of a cannabis business establishment or a community
20college licensed under the Community College Cannabis
21Vocational Training Pilot Program.
22    "Transporting organization agent" means a principal
23officer, board member, employee, or agent of a transporting
24organization.
25    "Transporting organization agent identification card"
26means a document issued by the Department of Agriculture that

 

 

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1identifies a person as a transporting organization agent.
2    "Unit of local government" means any county, city,
3village, or incorporated town.
4    "Vegetative stage" means the stage of cultivation in which
5a cannabis plant is propagated to produce additional cannabis
6plants or reach a sufficient size for production. This
7includes seedlings, clones, mothers, and other immature
8cannabis plants as follows:
9        (1) if the cannabis plant is in an area that has not
10    been intentionally deprived of light for a period of time
11    intended to produce flower buds and induce maturation, it
12    has no more than 2 stigmas visible at each internode of the
13    cannabis plant; or
14        (2) any cannabis plant that is cultivated solely for
15    the purpose of propagating clones and is never used to
16    produce cannabis.
17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
18102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
195-13-22.)