Illinois General Assembly - Full Text of HB0312
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Full Text of HB0312  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/29/2021, by Rep. Sonya M. Harper


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    Amends the Cannabis Regulation and Tax Act. Requires the Department of Financial and Professional Regulation to issue cannabis delivery organization licenses. Contains provisions regarding applications for cannabis delivery organization licenses. Requires the Department to develop a system to score applications for cannabis delivery licenses. Provides that applicants must qualify as social equity applicants in order to be awarded a cannabis delivery organization license. Requires applicants to pay a $2,500 application fee and a prorated fee of $5,000 prior to receiving a license, to be deposited into the Cannabis Regulation Fund. Contains requirements and prohibitions for cannabis delivery organizations. Provides that cannabis delivery organizations may obtain cannabis products from any cannabis business organization licensed in the State. Contains requirements for the issuance of cannabis delivery agent identification cards. Requires the Department to conduct a background check through the Department of State Police of specified individuals of cannabis delivery organizations. Contains provisions regarding the renewal of cannabis delivery organization licenses and agent identification cards. Contains other provisions.

LRB102 10202 CPF 15525 b






HB0312LRB102 10202 CPF 15525 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 adding Article 43 as follows:
6    (410 ILCS 705/Art. 43 heading new)
License and Regulation of
Cannabis Delivery Organizations.

10    (410 ILCS 705/43-1 new)
11    Sec. 43-1. Definition. In this Article, "Department" means
12the Department of Financial and Professional Regulation.
13    (410 ILCS 705/43-5 new)
14    Sec. 43-5. Issuance of licenses.
15    (a) The Department shall issue cannabis delivery
16organization licenses through a process provided for in this
17Article and by rule.
18    (b) The Department shall make the application for cannabis
19delivery organization licenses at a time set by rule.
20    (410 ILCS 705/43-10 new)



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1    Sec. 43-10. Application.
2    (a) When applying for a cannabis delivery organization
3license, the applicant shall submit the following in such form
4as the Department may direct:
5        (1) the nonrefundable application fee of $2,500 or,
6    after January 1, 2022, another amount as set by rule by the
7    Department, to be deposited into the Cannabis Regulation
8    Fund;
9        (2) the legal name of the cannabis delivery
10    organization;
11        (3) the proposed physical address of the cannabis
12    delivery organization, if one is proposed;
13        (4) the name, address, social security number, and
14    date of birth of each principal officer and board member
15    of the cannabis delivery organization; each principal
16    officer and board member shall be at least 21 years of age;
17        (5) the details of any administrative or judicial
18    proceeding in which any of the principal officers or board
19    members of the cannabis delivery organization (i) pled
20    guilty, were convicted, fined, or had a registration or
21    license suspended or revoked, or (ii) managed or served on
22    the board of a business or nonprofit organization that
23    pled guilty, was convicted, fined, or had a registration
24    or license suspended or revoked;
25        (6) verification from the Department of State Police
26    that all background checks of the prospective principal



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1    officers, board members, and agents of the cannabis
2    delivery organization have been conducted;
3        (7) a copy of the current local zoning ordinance or
4    permit and verification that the proposed cannabis
5    delivery organization is in compliance with the local
6    zoning rules and distance limitations established by the
7    local jurisdiction, if the cannabis delivery organization
8    has a business address;
9        (8) proposed employment practices, in which the
10    applicant must demonstrate a plan of action to inform,
11    hire, and educate minorities, women, veterans, and persons
12    with disabilities, engage in fair labor practices, and
13    provide worker protections;
14        (9) whether an applicant can demonstrate experience in
15    or business practices that promote economic empowerment in
16    Disproportionately Impacted Areas;
17        (10) the identity of every person having a financial
18    or voting interest of 5% or more in the cannabis delivery
19    organization with respect to which the license is sought,
20    whether a trust, corporation, partnership, limited
21    liability company, or sole proprietorship, including the
22    name and address of each person; and
23        (11) any other information required by rule.
24    (b) Applicants must submit all required information,
25including the information required in Section 43-35, to the
26Department. Failure by an applicant to submit all required



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1information may result in the application being disqualified.
2    (c) If the Department receives an application with missing
3information, the Department may issue a deficiency notice to
4the applicant. The applicant shall have 10 calendar days from
5the date of the deficiency notice to resubmit the incomplete
6information. Applications that are still incomplete after this
7opportunity to cure will not be scored and will be
9    (410 ILCS 705/43-15 new)
10    Sec. 43-15. Issuing licenses.
11    (a) The Department shall by rule develop a system to score
12cannabis delivery applications to administratively rank
13applications based on the clarity, organization, and quality
14of the applicant's responses to required information.
15Applicants shall be awarded points based on the following
17        (1) suitability of employee training plan;
18        (2) security and recordkeeping plan;
19        (3) business plan;
20        (4) labor and employment practices, which shall
21    constitute no less than 2% of total available points;
22        (5) environmental plan that demonstrates an
23    environmental plan of action to minimize the carbon
24    footprint, environmental impact, and resource needs for
25    the cannabis delivery organization.



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1        (6) the applicant is 51% or more owned and controlled
2    by an individual or individuals who have been an Illinois
3    resident for the past 5 years as proved by tax records or 2
4    of the following:
5            (A) a signed lease agreement that includes the
6        applicant's name;
7            (B) a property deed that includes the applicant's
8        name;
9            (C) school records;
10            (D) a voter registration card;
11            (E) an Illinois driver's license, an Illinois
12        Identification Card, or an Illinois Person with a
13        Disability Identification Card;
14            (F) a paycheck stub;
15            (G) a utility bill; or
16            (H) any other proof of residency or other
17        information necessary to establish residence as
18        provided by rule; and
19        (7) a diversity plan that includes a narrative of not
20    more than 2,500 words that establishes a goal of diversity
21    in ownership, management, employment, and contracting to
22    ensure that diverse participants and groups are afforded
23    equality of opportunity; and
24        (8) any other criteria the Department may set by rule
25    for points.
26    (b) Applicants must qualify as a social equity applicant



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1in order to be awarded a cannabis delivery organization
3    (c) Should an applicant be awarded a cannabis delivery
4organization license, the information and plans that the
5applicant provided in its application, including any plans
6submitted for the acquiring of bonus points, shall be a
7mandatory condition of the permit. Any variation from or
8failure to perform such plans may result in discipline,
9including the revocation or nonrenewal of a license.
10    (d) Should an applicant be awarded a cannabis delivery
11organization license, the applicant shall pay a prorated fee
12of $5,000 prior to receiving the license, to be deposited into
13the Cannabis Regulation Fund. The Department may by rule
14adjust the fee in this Section after January 1, 2022.
15    (410 ILCS 705/43-20 new)
16    Sec. 43-20. Denial of application.
17    An application for a cannabis delivery organization
18license shall be denied if any of the following conditions are
20        (1) the applicant failed to submit the materials
21    required by this Article;
22        (2) the applicant would not be in compliance with
23    local zoning rules or permit requirements;
24        (3) one or more of the prospective principal officers
25    or board members causes a violation of Section 43-25;



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1        (4) one or more of the principal officers or board
2    members is under 21 years of age;
3        (5) the person has submitted an application for a
4    license under this Article that contains false
5    information; or
6        (6) the licensee, principal officer, board member, or
7    person having a financial or voting interest of 5% or
8    greater in the licensee is delinquent in filing any
9    required tax returns or paying any amounts owed to the
10    State of Illinois.
11    (410 ILCS 705/43-25 new)
12    Sec. 43-25. Cannabis delivery organization requirements;
14    (a) The operating documents of a cannabis delivery
15organization shall include procedures for the oversight of the
16organization, an inventory monitoring system including a
17physical inventory recorded weekly, accurate recordkeeping,
18and a staffing plan.
19    (b) All cannabis delivered by a cannabis delivery
20organization must be entered into a data collection system and
21placed into a cannabis container for transport.
22    (c) Cannabis delivery organizations are subject to random
23inspections by the Department, the Department of Public
24Health, and the Department of State Police.
25    (d) A cannabis delivery organization agent shall notify



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1local law enforcement, the Department of State Police, and the
2Department of Agriculture within 24 hours of the discovery of
3any loss or theft. Notification shall be made by phone, in
4person, or by written or electronic communication.
5    (e) No person under the age of 21 years shall be in a
6vehicle transporting cannabis goods.
7    (f) No person or individual who is not a cannabis delivery
8organization agent shall be in a vehicle while transporting
9cannabis goods.
10    (g) A cannabis delivery organization agent must keep his
11or her identification card visible at all times when on the
12property of a cannabis business establishment and during the
13transportation of cannabis when acting under his or her duties
14as a cannabis delivery organization agent. During these times,
15the cannabis delivery organization agent must also provide the
16identification card upon request of any law enforcement
17officer engaged in his or her official duties.
18    (h) A copy of the cannabis delivery organization's
19registration and a manifest for the delivery shall be present
20in any vehicle transporting cannabis.
21    (i) Cannabis shall be transported so it is not visible or
22recognizable from outside the vehicle.
23    (j) A vehicle transporting cannabis must not bear any
24markings to indicate the vehicle contains cannabis or bear the
25name or logo of the cannabis business establishment.
26    (k) Cannabis must be transported in an enclosed, locked



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1storage compartment that is secured or affixed to the vehicle.
2    (l) The Department may, by rule, impose any other
3requirements or prohibitions on the transportation of
5    (410 ILCS 705/43-27 new)
6    Sec. 43-27. Procurement of cannabis products. A cannabis
7delivery organization may obtain cannabis products from any
8cannabis business organization licensed in the State.
9    (410 ILCS 705/43-30 new)
10    Sec. 43-30. Cannabis delivery agent identification card.
11    (a) The Department shall:
12        (1) establish by rule the information required in an
13    initial application or renewal application for an agent
14    identification card submitted under this Article and the
15    nonrefundable fee to accompany the initial application or
16    renewal application;
17        (2) verify the information contained in an initial
18    application or renewal application for an agent
19    identification card submitted under this Article and
20    approve or deny an application within 30 days of receiving
21    a completed initial application or renewal application and
22    all supporting documentation required by rule;
23        (3) issue an agent identification card to a qualifying
24    agent within 15 business days of approving the initial



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1    application or renewal application;
2        (4) enter the license number of the cannabis delivery
3    organization where the agent works; and
4        (5) allow for an electronic initial application and
5    renewal application process and provide a confirmation by
6    electronic or other methods that an application has been
7    submitted. The Department may by rule require prospective
8    agents to file their applications by electronic means and
9    provide notices to the agents by electronic means.
10    (b) An agent must keep his or her identification card
11visible at all times when on the property of a cannabis
12business establishment, including the cannabis delivery
13organization for which he or she is an agent.
14    (c) The agent identification cards shall contain the
16        (1) the name of the cardholder;
17        (2) the date of issuance and expiration date of the
18    identification card;
19        (3) a random 10-digit alphanumeric identification
20    number containing at least 4 numbers and at least 4
21    letters that is unique to the holder;
22        (4) a photograph of the cardholder; and
23        (5) the legal name of the cannabis delivery
24    organization employing the agent.
25    (d) An agent identification card shall be immediately
26returned to the cannabis delivery organization of the agent



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1upon termination of his or her employment.
2    (e) Any agent identification card lost by a cannabis
3delivery agent shall be reported to the Department of State
4Police and the Department immediately upon discovery of the
6    (f) An application for an agent identification card shall
7be denied if the applicant is delinquent in filing any
8required tax returns or paying any amounts owed to the State of
10    (410 ILCS 705/43-35 new)
11    Sec. 43-35. Cannabis delivery organization background
13    (a) Through the Department of State Police, the Department
14shall conduct a background check of the prospective principal
15officers, board members, and agents of a cannabis delivery
16organization applying for a license or identification card
17under this Article. The Department of State Police shall
18charge a fee set by rule for conducting the criminal history
19record check, which shall be deposited into the State Police
20Services Fund and shall not exceed the actual cost of the
21record check. In order to carry out this provision, each
22cannabis delivery organization's prospective principal
23officer, board member, or agent shall submit a full set of
24fingerprints to the Department of State Police for the purpose
25of obtaining a State and federal criminal records check. These



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1fingerprints shall be checked against the fingerprint records
2now and hereafter, to the extent allowed by law, filed in the
3Department of State Police and Federal Bureau of Investigation
4criminal history records databases. The Department of State
5Police shall furnish, following positive identification, all
6conviction information to the Department.
7    (b) When applying for the initial license or
8identification card, the background checks for all prospective
9principal officers, board members, and agents shall be
10completed before submitting the application to the Department.
11    (410 ILCS 705/43-40 new)
12    Sec. 43-40. Renewal of cannabis delivery organization
13licenses and agent identification cards.
14    (a) Licenses and identification cards issued under this
15Article shall be renewed annually. A cannabis delivery
16organization shall receive written or electronic notice 90
17days before the expiration of its current license that the
18license will expire. The Department shall grant a renewal
19within 45 days of submission of a renewal application if:
20        (1) the cannabis delivery organization submits a
21    renewal application and the required nonrefundable renewal
22    fee of $5,000, or after January 1, 2022, another amount
23    set by rule by the Department, to be deposited into the
24    Cannabis Regulation Fund;
25        (2) the Department has not suspended or revoked the



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1    license of the cannabis delivery organization for
2    violating this Act or rules adopted under this Act;
3        (3) the cannabis delivery organization has continued
4    to operate in accordance with all plans submitted as part
5    of its application and approved by the Department or any
6    amendments thereto that have been approved by the
7    Department; and
8        (4) the cannabis delivery organization has submitted
9    an agent, employee, contracting, and subcontracting
10    diversity report as required by the Department.
11    (b) If a cannabis delivery organization fails to renew its
12license before expiration, it shall cease operations until its
13license is renewed.
14    (c) If a cannabis delivery organization agent fails to
15renew his or her identification card before its expiration, he
16or she shall cease to work as an agent of the cannabis delivery
17organization until his or her identification card is renewed.
18    (d) Any cannabis delivery organization that continues to
19operate, or any cannabis delivery organization agent who
20continues to work as an agent, after the applicable license or
21identification card has expired without renewal is subject to
22the penalties provided under Section 45-5.
23    (e) The Department shall not renew a license or an agent
24identification card if the applicant is delinquent in filing
25any required tax returns or paying any amounts owed to the
26State of Illinois.



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2 Statutes amended in order of appearance
3    410 ILCS 705/Art. 43
4    heading new
5    410 ILCS 705/43-1 new
6    410 ILCS 705/43-5 new
7    410 ILCS 705/43-10 new
8    410 ILCS 705/43-15 new
9    410 ILCS 705/43-20 new
10    410 ILCS 705/43-25 new
11    410 ILCS 705/43-27 new
12    410 ILCS 705/43-30 new
13    410 ILCS 705/43-35 new
14    410 ILCS 705/43-40 new