Illinois General Assembly - Full Text of HB2522
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Full Text of HB2522  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/15/2023, by Rep. Sonya M. Harper


410 ILCS 705/Art. 43 heading new
410 ILCS 705/43-1 new
410 ILCS 705/43-5 new
410 ILCS 705/43-10 new
410 ILCS 705/43-15 new
410 ILCS 705/43-20 new
410 ILCS 705/43-25 new
410 ILCS 705/43-27 new
410 ILCS 705/43-30 new
410 ILCS 705/43-35 new
410 ILCS 705/43-40 new

    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 $500 application fee and a prorated fee of $500 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 Illinois State Police of certain officers, board members, and agents of cannabis delivery organizations. Contains provisions regarding the renewal of cannabis delivery organization licenses and agent identification cards. Contains other provisions.

LRB103 25868 CPF 55865 b





HB2522LRB103 25868 CPF 55865 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)



HB2522- 2 -LRB103 25868 CPF 55865 b

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) a nonrefundable application fee of $500 or, after
6    January 1, 2024, 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;
16        (5) the details of any administrative or judicial
17    proceeding in which any of the principal officers or board
18    members of the cannabis delivery organization (i) pled
19    guilty, were convicted, fined, or had a registration or
20    license suspended or revoked or (ii) managed or served on
21    the board of a business or nonprofit organization that
22    pled guilty, was convicted, fined, or had a registration
23    or license suspended or revoked;
24        (6) verification from the Illinois State Police that
25    all background checks of the prospective principal
26    officers, board members, and agents of the cannabis



HB2522- 3 -LRB103 25868 CPF 55865 b

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



HB2522- 4 -LRB103 25868 CPF 55865 b

1    (c) Each principal officer and board member of an
2applicant shall be at least 21 years of age.
3    (d) If the Department receives an application with missing
4information, the Department may issue a deficiency notice to
5the applicant. The applicant shall have 10 calendar days from
6the date of the deficiency notice to resubmit the incomplete
7information. Applications that are still incomplete after this
8opportunity to cure will not be scored and will be
10    (410 ILCS 705/43-15 new)
11    Sec. 43-15. Issuing licenses.
12    (a) The Department shall, by rule, develop a system to
13score cannabis delivery applications to administratively rank
14applications based on the clarity, organization, and quality
15of the applicant's responses to required information.
16Applicants shall be awarded points based on the following
18        (1) suitability of employee training plan;
19        (2) security and recordkeeping plan;
20        (3) business plan;
21        (4) labor and employment practices, which shall
22    constitute no less than 2% of total available points;
23        (5) environmental plan that demonstrates an
24    environmental plan of action to minimize the carbon
25    footprint, environmental impact, and resource needs for



HB2522- 5 -LRB103 25868 CPF 55865 b

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



HB2522- 6 -LRB103 25868 CPF 55865 b

1    (b) Applicants must qualify as a social equity applicant
2in order to be awarded a cannabis delivery organization
4    (c) Should an applicant be awarded a cannabis delivery
5organization license, the information and plans that the
6applicant provided in its application, including any plans
7submitted for the acquiring of bonus points, shall be a
8mandatory condition of the permit. Any variation from or
9failure to perform such plans may result in discipline,
10including the revocation or nonrenewal of a license.
11    (d) If an applicant is awarded a cannabis delivery
12organization license, the applicant shall pay a prorated fee
13of $500 prior to receiving the license, to be deposited into
14the Cannabis Regulation Fund. The Department may, by rule,
15adjust the fee in this Section after January 1, 2024.
16    (410 ILCS 705/43-20 new)
17    Sec. 43-20. Denial of application. An application for a
18cannabis delivery organization license shall be denied if any
19of the following conditions are met:
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;



HB2522- 7 -LRB103 25868 CPF 55865 b

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 Illinois State Police.
25    (d) A cannabis delivery organization agent shall notify



HB2522- 8 -LRB103 25868 CPF 55865 b

1local law enforcement, the Illinois State Police, and the
2Department of Agriculture within 24 hours after the discovery
3of any 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



HB2522- 9 -LRB103 25868 CPF 55865 b

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



HB2522- 10 -LRB103 25868 CPF 55865 b

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
8    prospective agents to file their applications by
9    electronic means and provide notices to the agents by
10    electronic means.
11    (b) An agent must keep his or her identification card
12visible at all times when on the property of a cannabis
13business establishment, including the cannabis delivery
14organization for which he or she is an agent.
15    (c) The agent identification cards shall contain the
17        (1) the name of the cardholder;
18        (2) the date of issuance and expiration date of the
19    identification card;
20        (3) a random 10-digit alphanumeric identification
21    number containing at least 4 numbers and at least 4
22    letters that are unique to the holder;
23        (4) a photograph of the cardholder; and
24        (5) the legal name of the cannabis delivery
25    organization employing the agent.
26    (d) An agent identification card shall be immediately



HB2522- 11 -LRB103 25868 CPF 55865 b

1returned to the cannabis delivery organization of the agent
2upon termination of his or her employment.
3    (e) Any agent identification card lost by a cannabis
4delivery agent shall be reported to the Illinois State Police
5and the Department immediately upon discovery of the loss.
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 Illinois 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 Illinois State Police shall charge a
18fee set by rule for conducting the criminal history record
19check, which shall be deposited into the State Police Services
20Fund and shall not exceed the actual cost of the record check.
21In order to carry out this provision, each cannabis delivery
22organization's prospective principal officer, board member, or
23agent shall submit a full set of fingerprints to the Illinois
24State Police for the purpose of obtaining a State and federal
25criminal records check. These fingerprints shall be checked



HB2522- 12 -LRB103 25868 CPF 55865 b

1against the fingerprint records now and hereafter, to the
2extent allowed by law, filed in the Illinois State Police and
3Federal Bureau of Investigation criminal history records
4databases. The Illinois State Police shall furnish, following
5positive identification, all conviction information to the
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 $500, or after January 1, 2024, another amount set
23    by rule by the Department, to be deposited into the
24    Cannabis Regulation Fund;
25        (2) the Department has not suspended or revoked the



HB2522- 13 -LRB103 25868 CPF 55865 b

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.