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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
ARTICLE 1.
5
SHORT TITLE; FINDINGS; DEFINITIONS

 
6    Section 1-1. Short title. This Act may be cited as the
7Cannabis Regulation and Tax Act.
 
8    Section 1-5. Findings.
9    (a) In the interest of allowing law enforcement to focus on
10violent and property crimes, generating revenue for education,
11substance abuse prevention and treatment, freeing public
12resources to invest in communities and other public purposes,
13and individual freedom, the General Assembly finds and declares
14that the use of cannabis should be legal for persons 21 years
15of age or older and should be taxed in a manner similar to
16alcohol.
17    (b) In the interest of the health and public safety of the
18residents of Illinois, the General Assembly further finds and
19declares that cannabis should be regulated in a manner similar
20to alcohol so that:
21        (1) persons will have to show proof of age before
22    purchasing cannabis;

 

 

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1        (2) selling, distributing, or transferring cannabis to
2    minors and other persons under 21 years of age shall remain
3    illegal;
4        (3) driving under the influence of cannabis shall
5    remain illegal;
6        (4) legitimate, taxpaying business people, and not
7    criminal actors, will conduct sales of cannabis;
8        (5) cannabis sold in this State will be tested,
9    labeled, and subject to additional regulation to ensure
10    that purchasers are informed and protected; and
11        (6) purchasers will be informed of any known health
12    risks associated with the use of cannabis, as concluded by
13    evidence-based, peer reviewed research.
14    (c) The General Assembly further finds and declares that it
15is necessary to ensure consistency and fairness in the
16application of this Act throughout the State and that,
17therefore, the matters addressed by this Act are, except as
18specified in this Act, matters of statewide concern.
19    (d) The General Assembly further finds and declares that
20this Act shall not diminish the State's duties and commitment
21to seriously ill patients registered under the Compassionate
22Use of Medical Cannabis Pilot Program Act, nor alter the
23protections granted to them.
24    (e) The General Assembly supports and encourages labor
25neutrality in the cannabis industry and further finds and
26declares that employee workplace safety shall not be diminished

 

 

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1and employer workplace policies shall be interpreted broadly to
2protect employee safety.
 
3    Section 1-10. Definitions. In this Act:
4    "Adult Use Cultivation Center License" means a license
5issued by the Department of Agriculture that permits a person
6to act as a cultivation center under this Act and any
7administrative rule made in furtherance of this Act.
8    "Adult Use Dispensing Organization License" means a
9license issued by the Department of Financial and Professional
10Regulation that permits a person to act as a dispensing
11organization under this Act and any administrative rule made in
12furtherance of this Act.
13    "Advertise" means to engage in promotional activities
14including, but not limited to: newspaper, radio, Internet and
15electronic media, and television advertising; the distribution
16of fliers and circulars; and the display of window and interior
17signs.
18    "BLS Region" means a region in Illinois used by the United
19States Bureau of Labor Statistics to gather and categorize
20certain employment and wage data. The 17 such regions in
21Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
22Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
23Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
24Rockford, St. Louis, Springfield, Northwest Illinois
25nonmetropolitan area, West Central Illinois nonmetropolitan

 

 

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1area, East Central Illinois nonmetropolitan area, and South
2Illinois nonmetropolitan area.
3    "Cannabis" means marijuana, hashish, and other substances
4that are identified as including any parts of the plant
5Cannabis sativa and including derivatives or subspecies, such
6as indica, of all strains of cannabis, whether growing or not;
7the seeds thereof, the resin extracted from any part of the
8plant; and any compound, manufacture, salt, derivative,
9mixture, or preparation of the plant, its seeds, or resin,
10including tetrahydrocannabinol (THC) and all other naturally
11produced cannabinol derivatives, whether produced directly or
12indirectly by extraction; however, "cannabis" does not include
13the mature stalks of the plant, fiber produced from the stalks,
14oil or cake made from the seeds of the plant, any other
15compound, manufacture, salt, derivative, mixture, or
16preparation of the mature stalks (except the resin extracted
17from it), fiber, oil or cake, or the sterilized seed of the
18plant that is incapable of germination. "Cannabis" does not
19include industrial hemp as defined and authorized under the
20Industrial Hemp Act. "Cannabis" also means concentrate and
21cannabis-infused products.
22    "Cannabis business establishment" means a cultivation
23center, craft grower, processing organization, dispensing
24organization, or transporting organization.
25    "Cannabis concentrate" means a product derived from
26cannabis that is produced by extracting cannabinoids from the

 

 

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1plant through the use of propylene glycol, glycerin, butter,
2olive oil or other typical cooking fats; water, ice, or dry
3ice; or butane, propane, CO2, ethanol, or isopropanol. The use
4of any other solvent is expressly prohibited unless and until
5it is approved by the Department of Agriculture.
6    "Cannabis container" means a sealed, traceable, container,
7or package used for the purpose of containment of cannabis or
8cannabis-infused product during transportation.
9    "Cannabis flower" means marijuana, hashish, and other
10substances that are identified as including any parts of the
11plant Cannabis sativa and including derivatives or subspecies,
12such as indica, of all strains of cannabis; including raw kief,
13leaves, and buds, but not resin that has been extracted from
14any part of such plant; nor any compound, manufacture, salt,
15derivative, mixture, or preparation of such plant, its seeds,
16or resin.
17    "Cannabis-infused product" means a beverage, food, oil,
18ointment, tincture, topical formulation, or another product
19containing cannabis that is not intended to be smoked.
20    "Cannabis plant monitoring system" or "plant monitoring
21system" means a system that includes, but is not limited to,
22testing and data collection established and maintained by the
23cultivation center, craft grower, or processing organization
24and that is available to the Department of Revenue, the
25Department of Agriculture, the Department of Financial and
26Professional Regulation, and the Department of State Police for

 

 

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

 

 

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1meets certain conditions described in this Act, but does not
2entitle the recipient to begin purchasing or selling cannabis
3or cannabis-infused products.
4    "Conditional Adult Use Cultivation Center License" means a
5license awarded to top-scoring applicants for an Adult Use
6Cultivation Center License that reserves the right to an Adult
7Use Cultivation Center License if the applicant meets certain
8conditions as determined by the Department of Agriculture by
9rule, but does not entitle the recipient to begin growing,
10processing, or selling cannabis or cannabis-infused products.
11    "Craft grower" means a facility operated by an organization
12or business that is licensed by the Department of Agriculture
13to cultivate, dry, cure, and package cannabis and perform other
14necessary activities to make cannabis available for sale at a
15dispensing organization or use at a processing organization. A
16craft grower may contain up to 5,000 square feet of canopy
17space on its premises for plants in the flowering state. The
18Department of Agriculture may authorize an increase or decrease
19of flowering 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 to
15provide 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    "Dispensing organization" means a facility operated by an
2organization or business that is licensed by the Department of
3Financial and Professional Regulation to acquire cannabis from
4a cultivation center, craft grower, processing organization,
5or another dispensary for the purpose of selling or dispensing
6cannabis, cannabis-infused products, cannabis seeds,
7paraphernalia, or related supplies under this Act to purchasers
8or to qualified registered medical cannabis patients and
9caregivers. As used in this Act, dispensary organization shall
10include a registered medical cannabis organization as defined
11in the Compassionate Use of Medical Cannabis Pilot Program Act
12or its successor Act that has obtained an Early Approval Adult
13Use Dispensing Organization License.
14    "Dispensing organization agent" means a principal officer,
15employee, or agent of a dispensing organization who is 21 years
16of age or older.
17    "Dispensing organization agent identification card" means
18a document issued by the Department of Financial and
19Professional Regulation that identifies a person as a
20dispensing organization agent.
21    "Disproportionately Impacted Area" means a census tract or
22comparable geographic area that satisfies the following
23criteria as determined by the Department of Commerce and
24Economic Opportunity, that:
25        (1) meets at least one of the following criteria:
26            (A) the area has a poverty rate of at least 20%

 

 

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1        according to the latest federal decennial census; or
2            (B) 75% or more of the children in the area
3        participate in the federal free lunch program
4        according to reported statistics from the State Board
5        of Education; or
6            (C) at least 20% of the households in the area
7        receive assistance under the Supplemental Nutrition
8        Assistance Program; or
9            (D) the area has an average unemployment rate, as
10        determined by the Illinois Department of Employment
11        Security, that is more than 120% of the national
12        unemployment average, as determined by the United
13        States Department of Labor, for a period of at least 2
14        consecutive calendar years preceding the date of the
15        application; and
16        (2) has high rates of arrest, conviction, and
17    incarceration related to the sale, possession, use,
18    cultivation, manufacture, or transport of cannabis.
19    "Early Approval Adult Use Cultivation Center License"
20means a license that permits a medical cannabis cultivation
21center licensed under the Compassionate Use of Medical Cannabis
22Pilot Program Act as of the effective date of this Act to begin
23cultivating, infusing, packaging, transporting (unless
24otherwise provided in this Act), and selling cannabis to
25cannabis business establishments for resale to purchasers as
26permitted by this Act as of January 1, 2020.

 

 

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1    "Early Approval Adult Use Dispensing Organization License"
2means a license that permits a medical cannabis dispensing
3organization licensed under the Compassionate Use of Medical
4Cannabis Pilot Program Act as of the effective date of this Act
5to begin selling cannabis to purchasers as permitted by this
6Act as of January 1, 2020.
7    "Early Approval Adult Use Dispensing Organization at a
8secondary site" means a license that permits a medical cannabis
9dispensing organization licensed under the Compassionate Use
10of Medical Cannabis Pilot Program Act as of the effective date
11of this Act to begin selling cannabis to purchasers as
12permitted by this Act on January 1, 2020 at a different
13dispensary location from its existing registered medical
14dispensary location.
15    "Enclosed, locked facility" means a room, greenhouse,
16building, or other enclosed area equipped with locks or other
17security devices that permit access only by cannabis business
18establishment agents working for the licensed cannabis
19business establishment or acting pursuant to this Act to
20cultivate, process, store, or distribute cannabis.
21    "Enclosed, locked space" means a closet, room, greenhouse,
22building or other enclosed area equipped with locks or other
23security devices that permit access only by authorized
24individuals under this Act. "Enclosed, locked space" may
25include:
26        (1) a space within a residential building that (i) is

 

 

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1    the primary residence of the individual cultivating 5 or
2    fewer cannabis plants that are more than 5 inches tall and
3    (ii) includes sleeping quarters and indoor plumbing. The
4    space must only be accessible by a key or code that is
5    different from any key or code that can be used to access
6    the residential building from the exterior; or
7        (2) a structure, such as a shed or greenhouse, that
8    lies on the same plot of land as a residential building
9    that (i) includes sleeping quarters and indoor plumbing and
10    (ii) is used as a primary residence by the person
11    cultivating 5 or fewer cannabis plants that are more than 5
12    inches tall, such as a shed or greenhouse. The structure
13    must remain locked when it is unoccupied by people.
14    "Financial institution" has the same meaning as "financial
15organization" as defined in Section 1501 of the Illinois Income
16Tax Act, and also includes the holding companies, subsidiaries,
17and affiliates of such financial organizations.
18    "Flowering stage" means the stage of cultivation where and
19when a cannabis plant is cultivated to produce plant material
20for cannabis products. This includes mature plants as follows:
21        (1) if greater than 2 stigmas are visible at each
22    internode of the plant; or
23        (2) if the cannabis plant is in an area that has been
24    intentionally deprived of light for a period of time
25    intended to produce flower buds and induce maturation, from
26    the moment the light deprivation began through the

 

 

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1    remainder of the marijuana plant growth cycle.
2    "Individual" means a natural person.
3    "Infuser organization" or "infuser" means a facility
4operated by an organization or business that is licensed by the
5Department of Agriculture to directly incorporate cannabis or
6cannabis concentrate into a product formulation to produce a
7cannabis-infused product.
8    "Kief" means the resinous crystal-like trichomes that are
9found on cannabis and that are accumulated, resulting in a
10higher concentration of cannabinoids, untreated by heat or
11pressure, or extracted using a solvent.
12    "Labor peace agreement" means an agreement between a
13cannabis business establishment and any labor organization
14recognized under the National Labor Relations Act, referred to
15in this Act as a bona fide labor organization, that prohibits
16labor organizations and members from engaging in picketing,
17work stoppages, boycotts, and any other economic interference
18with the cannabis business establishment. This agreement means
19that the cannabis business establishment has agreed not to
20disrupt efforts by the bona fide labor organization to
21communicate with, and attempt to organize and represent, the
22cannabis business establishment's employees. The agreement
23shall provide a bona fide labor organization access at
24reasonable times to areas in which the cannabis business
25establishment's employees work, for the purpose of meeting with
26employees to discuss their right to representation, employment

 

 

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1rights under State law, and terms and conditions of employment.
2This type of agreement shall not mandate a particular method of
3election or certification of the bona fide labor organization.
4    "Limited access area" means a building, room, or other area
5under the control of a cannabis dispensing organization
6licensed under this Act and upon the licensed premises with
7access limited to purchasers, dispensing organization owners
8and other dispensing organization agents, or service
9professionals conducting business with the dispensing
10organization.
11    "Member of an impacted family" means an individual who has
12a parent, legal guardian, child, spouse, or dependent, or was a
13dependent of an individual who, prior to the effective date of
14this Act, was arrested for, convicted of, or adjudicated
15delinquent for any offense that is eligible for expungement
16under this Act.
17    "Mother plant" means a cannabis plant that is cultivated or
18maintained for the purpose of generating clones, and that will
19not be used to produce plant material for sale to an infuser or
20dispensing organization.
21    "Ordinary public view" means within the sight line with
22normal visual range of a person, unassisted by visual aids,
23from a public street or sidewalk adjacent to real property, or
24from within an adjacent property.
25    "Ownership and control" means ownership of at least 51% of
26the business, including corporate stock if a corporation, and

 

 

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1control over the management and day-to-day operations of the
2business and an interest in the capital, assets, and profits
3and losses of the business proportionate to percentage of
4ownership.
5    "Person" means a natural individual, firm, partnership,
6association, joint stock company, joint venture, public or
7private corporation, limited liability company, or a receiver,
8executor, trustee, guardian, or other representative appointed
9by order of any court.
10    "Possession limit" means the amount of cannabis under
11Section 10-10 that may be possessed at any one time by a person
1221 years of age or older or who is a registered qualifying
13medical cannabis patient or caregiver under the Compassionate
14Use of Medical Cannabis Pilot Program Act.
15    "Principal officer" includes a cannabis business
16establishment applicant or licensed cannabis business
17establishment's board member, owner with more than 1% interest
18of the total cannabis business establishment or more than 5%
19interest of the total cannabis business establishment of a
20publicly traded company, president, vice president, secretary,
21treasurer, partner, officer, member, manager member, or person
22with a profit sharing, financial interest, or revenue sharing
23arrangement. The definition includes a person with authority to
24control the cannabis business establishment, a person who
25assumes responsibility for the debts of the cannabis business
26establishment and who is further defined in this Act.

 

 

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1    "Primary residence" means a dwelling where a person usually
2stays or stays more often than other locations. It may be
3determined by, without limitation, presence, tax filings;
4address on an Illinois driver's license, an Illinois
5Identification Card, or an Illinois Person with a Disability
6Identification Card; or voter registration. No person may have
7more than one primary residence.
8    "Processing organization" or "processor" means a facility
9operated by an organization or business that is licensed by the
10Department of Agriculture to either extract constituent
11chemicals or compounds to produce cannabis concentrate or
12incorporate cannabis or cannabis concentrate into a product
13formulation to produce a cannabis product.
14    "Processing organization agent" means a principal officer,
15board member, employee, or agent of a processing organization.
16    "Processing organization agent identification card" means
17a document issued by the Department of Agriculture that
18identifies a person as a processing organization agent.
19    "Purchaser" means a person 21 years of age or older who
20acquires cannabis for a valuable consideration. "Purchaser"
21does not include a cardholder under the Compassionate Use of
22Medical Cannabis Pilot Program Act.
23    "Qualified Social Equity Applicant" means a Social Equity
24Applicant who has been awarded a conditional license under this
25Act to operate a cannabis business establishment.
26    "Resided" means an individual's primary residence was

 

 

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

 

 

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1        eligible for expungement under this Act; or
2            (ii) is a member of an impacted family;
3        (3) for applicants with a minimum of 10 full-time
4    employees, an applicant with at least 51% of current
5    employees who:
6            (i) currently reside in a Disproportionately
7        Impacted Area; or
8            (ii) have been arrested for, convicted of, or
9        adjudicated delinquent for any offense that is
10        eligible for expungement under this Act or member of an
11        impacted family.
12    Nothing in this Act shall be construed to preempt or limit
13the duties of any employer under the Job Opportunities for
14Qualified Applicants Act. Nothing in this Act shall permit an
15employer to require an employee to disclose sealed or expunged
16offenses, unless otherwise required by law.
17    "Tincture" means a cannabis-infused solution, typically
18comprised of alcohol, glycerin, or vegetable oils, derived
19either directly from the cannabis plant or from a processed
20cannabis extract. A tincture is not an alcoholic liquor as
21defined in the Liquor Control Act of 1934. A tincture shall
22include a calibrated dropper or other similar device capable of
23accurately measuring servings.
24    "Transporting organization" or "transporter" means an
25organization or business that is licensed by the Department of
26Agriculture to transport cannabis on behalf of a cannabis

 

 

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1business establishment or a community college licensed under
2the Community College Cannabis Vocational Training Pilot
3Program.
4    "Transporting organization agent" means a principal
5officer, board member, employee, or agent of a transporting
6organization.
7    "Transporting organization agent identification card"
8means a document issued by the Department of Agriculture that
9identifies a person as a transporting organization agent.
10    "Unit of local government" means any county, city, village,
11or incorporated town.
12    "Vegetative stage" means the stage of cultivation in which
13a cannabis plant is propagated to produce additional cannabis
14plants or reach a sufficient size for production. This includes
15seedlings, clones, mothers, and other immature cannabis plants
16as follows:
17        (1) if the cannabis plant is in an area that has not
18    been intentionally deprived of light for a period of time
19    intended to produce flower buds and induce maturation, it
20    has no more than 2 stigmas visible at each internode of the
21    cannabis plant; or
22        (2) any cannabis plant that is cultivated solely for
23    the purpose of propagating clones and is never used to
24    produce cannabis.
 
25
ARTICLE 5.

 

 

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1
AUTHORITY

 
2    Section 5-5. Sharing of authority. Notwithstanding any
3provision or law to the contrary, any authority granted to any
4State agency or State employees or appointees under the
5Compassionate Use of Medical Cannabis Pilot Program Act shall
6be shared by any State agency or State employees or appointees
7given authority to license, discipline, revoke, regulate, or
8make rules under this Act.
 
9    Section 5-10. Department of Agriculture. The Department of
10Agriculture shall administer and enforce provisions of this Act
11relating to the oversight and registration of cultivation
12centers, craft growers, infuser organizations, and
13transporting organizations and agents, including the issuance
14of identification cards and establishing limits on potency or
15serving size for cannabis or cannabis products. The Department
16of Agriculture may suspend or revoke the license of, or impose
17other penalties upon cultivation centers, craft growers,
18infuser organizations, transporting organizations, and their
19principal officers, Agents-in-Charge, and agents for
20violations of this Act and any rules adopted under this Act.
 
21    Section 5-15. Department of Financial and Professional
22Regulation. The Department of Financial and Professional
23Regulation shall enforce the provisions of this Act relating to

 

 

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1the oversight and registration of dispensing organizations and
2agents, including the issuance of identification cards for
3dispensing organization agents. The Department of Financial
4and Professional Regulation may suspend or revoke the license
5of, or impose other penalties upon, dispensing organizations
6for violations of this Act and any rules adopted under this
7Act.
 
8    Section 5-20. Background checks.
9    (a) Through the Department of State Police, the licensing
10or issuing Department shall conduct a criminal history record
11check of the prospective principal officers, board members, and
12agents of a cannabis business establishment applying for a
13license or identification card under this Act.
14    Each cannabis business establishment prospective principal
15officer, board member, or agent shall submit his or her
16fingerprints to the Department of State Police in the form and
17manner prescribed by the Department of State Police.
18    Such fingerprints shall be transmitted through a live scan
19fingerprint vendor licensed by the Department of Financial and
20Professional Regulation. These fingerprints shall be checked
21against the fingerprint records now and hereafter filed in the
22Department of State Police and Federal Bureau of Investigation
23criminal history records databases. The Department of State
24Police shall charge a fee for conducting the criminal history
25record check, which shall be deposited into the State Police

 

 

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1Services Fund and shall not exceed the actual cost of the State
2and national criminal history record check. The Department of
3State Police shall furnish, pursuant to positive
4identification, all Illinois conviction information and shall
5forward the national criminal history record information to:
6        (i) the Department of Agriculture, with respect to a
7    cultivation center, craft grower, infuser organization, or
8    transporting organization; or
9        (ii) the Department of Financial and Professional
10    Regulation, with respect to a dispensing organization.
11    (b) When applying for the initial license or identification
12card, the background checks for all prospective principal
13officers, board members, and agents shall be completed before
14submitting the application to the licensing or issuing agency.
15    (c) All applications for licensure under this Act by
16applicants with criminal convictions shall be subject to
17Sections 2105-131, 2105-135, and 2105-205 of the Department of
18Professional Regulation Law of the Civil Administrative Code of
19Illinois.
 
20    Section 5-25. Department of Public Health to make health
21warning recommendations.
22    (a) The Department of Public Health shall make
23recommendations to the Department of Agriculture and the
24Department of Financial and Professional Regulation on
25appropriate health warnings for dispensaries and advertising,

 

 

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1which may apply to all cannabis products, including item-type
2specific labeling or warning requirements, regulate the
3facility where cannabis-infused products are made, regulate
4cannabis-infused products as provided in subsection (e) of
5Section 55-5, and facilitate the Adult Use Cannabis Health
6Advisory Committee.
7    (b) An Adult Use Cannabis Health Advisory Committee is
8hereby created and shall meet at least twice annually. The
9Chairperson may schedule meetings more frequently upon his or
10her initiative or upon the request of a Committee member.
11Meetings may be held in person or by teleconference. The
12Committee shall discuss and monitor changes in drug use data in
13Illinois and the emerging science and medical information
14relevant to the health effects associated with cannabis use and
15may provide recommendations to the Department of Human Services
16about public health awareness campaigns and messages. The
17Committee shall include the following members appointed by the
18Governor and shall represent the geographic, ethnic, and racial
19diversity of the State:
20        (1) The Director of Public Health, or his or her
21    designee, who shall serve as the Chairperson.
22        (2) The Secretary of Human Services, or his or her
23    designee, who shall serve as the Co-Chairperson.
24        (3) A representative of the poison control center.
25        (4) A pharmacologist.
26        (5) A pulmonologist.

 

 

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1        (6) An emergency room physician.
2        (7) An emergency medical technician, paramedic, or
3    other first responder.
4        (8) A nurse practicing in a school-based setting.
5        (9) A psychologist.
6        (10) A neonatologist.
7        (11) An obstetrician-gynecologist.
8        (12) A drug epidemiologist.
9        (13) A medical toxicologist.
10        (14) An addiction psychiatrist.
11        (15) A pediatrician.
12        (16) A representative of a statewide professional
13    public health organization.
14        (17) A representative of a statewide hospital/health
15    system association.
16        (18) An individual registered as a patient in the
17    Compassionate Use of Medical Cannabis Pilot Program.
18        (19) An individual registered as a caregiver in the
19    Compassionate Use of Medical Cannabis Pilot Program.
20        (20) A representative of an organization focusing on
21    cannabis-related policy.
22        (21) A representative of an organization focusing on
23    the civil liberties of individuals who reside in Illinois.
24        (22) A representative of the criminal defense or civil
25    aid community of attorneys serving Disproportionately
26    Impacted Areas.

 

 

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1        (23) A representative of licensed cannabis business
2    establishments.
3        (24) A Social Equity Applicant.
4    (c) The Committee shall provide a report by September 30,
52021, and every year thereafter, to the General Assembly. The
6Department of Public Health shall make the report available on
7its website.
 
8    Section 5-30. Department of Human Services. The Department
9of Human Services shall identify evidence-based programs for
10preventive mental health, the prevention or treatment of
11alcohol abuse, tobacco use, illegal drug use (including
12prescription drugs), and cannabis use by pregnant women, and
13make policy recommendations, as appropriate, to the Adult Use
14Cannabis Health Advisory Committee. The Department of Human
15Services shall develop and disseminate educational materials
16for purchasers based on recommendations received from the
17Department of Public Health and the Adult Use Cannabis Health
18Advisory Committee.
 
19    Section 5-45. Illinois Cannabis Regulation Oversight
20Officer.
21    (a) The position of Illinois Cannabis Regulation Oversight
22Officer is created within the Department of Financial and
23Professional Regulation under the Secretary of Financial and
24Professional Regulation. The Illinois Cannabis Regulation

 

 

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1Oversight Officer shall be appointed by the Governor with the
2advice and consent of the Senate. The term of office of the
3Officer shall expire on the third Monday of January in
4odd-numbered years provided that he or she shall hold office
5until a successor is appointed and qualified. In case of
6vacancy in office during the recess of the Senate, the Governor
7shall make a temporary appointment until the next meeting of
8the Senate, when the Governor shall nominate some person to
9fill the office, and any person so nominated who is confirmed
10by the Senate shall hold office during the remainder of the
11term and until his or her successor is appointed and qualified.
12    (b) The Illinois Cannabis Regulation Oversight Officer
13may:
14        (1) maintain a staff;
15        (2) make recommendations for policy, statute, and rule
16    changes;
17        (3) collect data both in Illinois and outside Illinois
18    regarding the regulation of cannabis;
19        (4) compile or assist in the compilation of any reports
20    required by this Act;
21        (5) ensure the coordination of efforts between various
22    State agencies involved in regulating and taxing the sale
23    of cannabis in Illinois; and
24        (6) encourage, promote, suggest, and report best
25    practices for ensuring diversity in the cannabis industry
26    in Illinois.

 

 

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1    (c) The Illinois Cannabis Regulation Oversight Officer
2shall not:
3        (1) participate in the issuance of any business
4    licensing or the making of awards; or
5        (2) participate in any adjudicative decision-making
6    process involving licensing or licensee discipline.
7    (d) Any funding required for the Illinois Cannabis
8Regulation Oversight Officer, its staff, or its activities
9shall be drawn from the Cannabis Regulation Fund.
10    (e) The Illinois Cannabis Regulation Oversight Officer
11shall commission and publish a disparity and availability study
12by March 1, 2021 that: (1) evaluates whether there exists
13discrimination in the State's cannabis industry; and (2) if so,
14evaluates the impact of such discrimination on the State and
15includes recommendations to the Department of Financial and
16Professional Regulation and the Department of Agriculture for
17reducing or eliminating any identified barriers to entry in the
18cannabis market. The Illinois Cannabis Regulation Oversight
19Officer shall forward a copy of its findings and
20recommendations to the Department of Financial and
21Professional Regulation, the Department of Agriculture, the
22Department of Commerce and Economic Opportunity, the General
23Assembly, and the Governor.
24    (f) The Illinois Cannabis Regulation Oversight Officer may
25compile, collect, or otherwise gather data necessary for the
26administration of this Act and to carry out the Officer's duty

 

 

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1relating to the recommendation of policy changes. The Illinois
2Cannabis Regulation Oversight Officer may direct the
3Department of Agriculture, Department of Financial and
4Professional Regulation, Department of Public Health,
5Department of Human Services, and Department of Commerce and
6Economic Opportunity to assist in the compilation, collection,
7and data gathering authorized pursuant to this subsection. The
8Illinois Cannabis Regulation Oversight Officer shall compile
9all of the data into a single report and submit the report to
10the Governor and the General Assembly and publish the report on
11its website.
 
12
ARTICLE 7.
13
SOCIAL EQUITY IN THE CANNABIS INDUSTRY

 
14    Section 7-1. Findings.
15    (a) The General Assembly finds that the medical cannabis
16industry, established in 2014 through the Compassionate Use of
17Medical Cannabis Pilot Program Act, has shown that additional
18efforts are needed to reduce barriers to ownership. Through
19that program, 55 licenses for dispensing organizations and 20
20licenses for cultivation centers have been issued. Those
21licenses are held by only a small number of businesses, the
22ownership of which does not sufficiently meet the General
23Assembly's interest in business ownership that reflects the
24population of the State of Illinois and that demonstrates the

 

 

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1need to reduce barriers to entry for individuals and
2communities most adversely impacted by the enforcement of
3cannabis-related laws.
4    (b) In the interest of establishing a legal cannabis
5industry that is equitable and accessible to those most
6adversely impacted by the enforcement of drug-related laws in
7this State, including cannabis-related laws, the General
8Assembly finds and declares that a social equity program should
9be established.
10    (c) The General Assembly also finds and declares that
11individuals who have been arrested or incarcerated due to drug
12laws suffer long-lasting negative consequences, including
13impacts to employment, business ownership, housing, health,
14and long-term financial well-being.
15    (d) The General Assembly also finds and declares that
16family members, especially children, and communities of those
17who have been arrested or incarcerated due to drug laws, suffer
18from emotional, psychological, and financial harms as a result
19of such arrests or incarcerations.
20    (e) Furthermore, the General Assembly finds and declares
21that certain communities have disproportionately suffered the
22harms of enforcement of cannabis-related laws. Those
23communities face greater difficulties accessing traditional
24banking systems and capital for establishing businesses.
25    (f) The General Assembly also finds that individuals who
26have resided in areas of high poverty suffer negative

 

 

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1consequences, including barriers to entry in employment,
2business ownership, housing, health, and long-term financial
3well-being.
4    (g) The General Assembly also finds and declares that
5promotion of business ownership by individuals who have resided
6in areas of high poverty and high enforcement of
7cannabis-related laws furthers an equitable cannabis industry.
8    (h) Therefore, in the interest of remedying the harms
9resulting from the disproportionate enforcement of
10cannabis-related laws, the General Assembly finds and declares
11that a social equity program should offer, among other things,
12financial assistance and license application benefits to
13individuals most directly and adversely impacted by the
14enforcement of cannabis-related laws who are interested in
15starting cannabis business establishments.
 
16    Section 7-10. Cannabis Business Development Fund.
17    (a) There is created in the State treasury a special fund,
18which shall be held separate and apart from all other State
19moneys, to be known as the Cannabis Business Development Fund.
20The Cannabis Business Development Fund shall be exclusively
21used for the following purposes:
22        (1) to provide low-interest rate loans to Social Equity
23    Applicants to pay for ordinary and necessary expenses to
24    start and operate a cannabis business establishment
25    permitted by this Act;

 

 

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1        (2) to provide grants to Qualified Social Equity
2    Applicants to pay for ordinary and necessary expenses to
3    start and operate a cannabis business establishment
4    permitted by this Act;
5        (3) to compensate the Department of Commerce and
6    Economic Opportunity for any costs related to the provision
7    of low-interest loans and grants to Qualified Social Equity
8    Applicants;
9        (4) to pay for outreach that may be provided or
10    targeted to attract and support Social Equity Applicants;
11        (5) (blank);
12        (6) to conduct any study or research concerning the
13    participation of minorities, women, veterans, or people
14    with disabilities in the cannabis industry, including,
15    without limitation, barriers to such individuals entering
16    the industry as equity owners of cannabis business
17    establishments;
18        (7) (blank); and
19        (8) to assist with job training and technical
20    assistance for residents in Disproportionately Impacted
21    Areas.
22    (b) All moneys collected under Sections 15-15 and 15-20 for
23Early Approval Adult Use Dispensing Organization Licenses
24issued before January 1, 2021 and remunerations made as a
25result of transfers of permits awarded to Qualified Social
26Equity Applicants shall be deposited into the Cannabis Business

 

 

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1Development Fund.
2    (c) As soon as practical after July 1, 2019, the
3Comptroller shall order and the Treasurer shall transfer
4$12,000,000 from the Compassionate Use of Medical Cannabis Fund
5to the Cannabis Business Development Fund.
6    (d) Notwithstanding any other law to the contrary, the
7Cannabis Business Development Fund is not subject to sweeps,
8administrative charge-backs, or any other fiscal or budgetary
9maneuver that would in any way transfer any amounts from the
10Cannabis Business Development Fund into any other fund of the
11State.
 
12    Section 7-15. Loans and grants to Social Equity Applicants.
13    (a) The Department of Commerce and Economic Opportunity
14shall establish grant and loan programs, subject to
15appropriations from the Cannabis Business Development Fund,
16for the purposes of providing financial assistance, loans,
17grants, and technical assistance to Social Equity Applicants.
18    (b) The Department of Commerce and Economic Opportunity has
19the power to:
20        (1) provide Cannabis Social Equity loans and grants
21    from appropriations from the Cannabis Business Development
22    Fund to assist Social Equity Applicants in gaining entry
23    to, and successfully operating in, the State's regulated
24    cannabis marketplace;
25        (2) enter into agreements that set forth terms and

 

 

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1    conditions of the financial assistance, accept funds or
2    grants, and engage in cooperation with private entities and
3    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 these loan programs
11    with activities of the Illinois Department of Financial and
12    Professional Regulation, the Illinois Department of
13    Agriculture, and other agencies as needed to maximize the
14    effectiveness and efficiency of this Act;
15        (5) provide staff, administration, and related support
16    required to administer this Section;
17        (6) take whatever actions are necessary or appropriate
18    to protect the State's interest in the event of bankruptcy,
19    default, foreclosure, or noncompliance with the terms and
20    conditions of financial assistance provided under this
21    Section, including the ability to recapture funds if the
22    recipient is found to be noncompliant with the terms and
23    conditions of the financial assistance agreement;
24        (7) establish application, notification, contract, and
25    other forms, procedures, or rules deemed necessary and
26    appropriate; and

 

 

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1        (8) utilize vendors or contract work to carry out the
2    purposes of this Act.
3    (c) Loans made under this Section:
4        (1) shall only be made if, in the Department's
5    judgment, the project furthers the goals set forth in this
6    Act; and
7        (2) shall be in such principal amount and form and
8    contain such terms and provisions with respect to security,
9    insurance, reporting, delinquency charges, default
10    remedies, and other matters as the Department shall
11    determine appropriate to protect the public interest and to
12    be consistent with the purposes of this Section. The terms
13    and provisions may be less than required for similar loans
14    not covered by this Section.
15    (d) Grants made under this Section shall be awarded on a
16competitive and annual basis under the Grant Accountability and
17Transparency Act. Grants made under this Section shall further
18and promote the goals of this Act, including promotion of
19Social Equity Applicants, job training and workforce
20development, and technical assistance to Social Equity
21Applicants.
22    (e) Beginning January 1, 2021 and each year thereafter, the
23Department shall annually report to the Governor and the
24General Assembly on the outcomes and effectiveness of this
25Section that shall include the following:
26        (1) the number of persons or businesses receiving

 

 

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1    financial assistance under this Section;
2        (2) the amount in financial assistance awarded in the
3    aggregate, in addition to the amount of loans made that are
4    outstanding and the amount of grants awarded;
5        (3) the location of the project engaged in by the
6    person or business; and
7        (4) if applicable, the number of new jobs and other
8    forms of economic output created as a result of the
9    financial assistance.
10    (f) The Department of Commerce and Economic Opportunity
11shall include engagement with individuals with limited English
12proficiency as part of its outreach provided or targeted to
13attract and support Social Equity Applicants.
 
14    Section 7-20. Fee waivers.
15    (a) For Social Equity Applicants, the Department of
16Financial and Professional Regulation and the Department of
17Agriculture shall waive 50% of any nonrefundable license
18application fees, any nonrefundable fees associated with
19purchasing a license to operate a cannabis business
20establishment, and any surety bond or other financial
21requirements, provided a Social Equity Applicant meets the
22following qualifications at the time the payment is due:
23        (1) the applicant, including all individuals and
24    entities with 10% or greater ownership and all parent
25    companies, subsidiaries, and affiliates, has less than a

 

 

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1    total of $750,000 of income in the previous calendar year;
2    and
3        (2) the applicant, including all individuals and
4    entities with 10% or greater ownership and all parent
5    companies, subsidiaries, and affiliates, has no more than 2
6    other licenses for cannabis business establishments in the
7    State of Illinois.
8    (b) The Department of Financial and Professional
9Regulation and the Department of Agriculture may require Social
10Equity Applicants to attest that they meet the requirements for
11a fee waiver as provided in subsection (a) and to provide
12evidence of annual total income in the previous calendar year.
13    (c) If the Department of Financial and Professional
14Regulation or the Department of Agriculture determines that an
15applicant who applied as a Social Equity Applicant is not
16eligible for such status, the applicant shall be provided an
17additional 10 days to provide alternative evidence that he or
18she qualifies as a Social Equity Applicant. Alternatively, the
19applicant may pay the remainder of the waived fee and be
20considered as a non-Social Equity Applicant. If the applicant
21cannot do either, then the Departments may keep the initial
22application fee and the application shall not be graded.
 
23    Section 7-25. Transfer of license awarded to Social Equity
24Applicant.
25    (a) In the event a Social Equity Applicant seeks to

 

 

HB1438 Enrolled- 37 -LRB101 04919 JRG 49928 b

1transfer, sell, or grant a cannabis business establishment
2license within 5 years after it was issued to a person or
3entity that does not qualify as a Social Equity Applicant, the
4transfer agreement shall require the new license holder to pay
5the Cannabis Business Development Fund an amount equal to:
6        (1) any fees that were waived by any State agency based
7    on the applicant's status as a Social Equity Applicant, if
8    applicable;
9        (2) any outstanding amount owed by the Qualified Social
10    Equity Applicant for a loan through the Cannabis Business
11    Development Fund, if applicable; and
12        (3) the full amount of any grants that the Qualified
13    Social Equity Applicant received from the Department of
14    Commerce and Economic Opportunity, if applicable.
15    (b) Transfers of cannabis business establishment licenses
16awarded to a Social Equity Applicant are subject to all other
17provisions of this Act, the Compassionate Use of Medical
18Cannabis Pilot Program Act, and rules regarding transfers.
 
19    Section 7-30. Reporting. By January 1, 2021, and on January
201 of every year thereafter, or upon request by the Illinois
21Cannabis Regulation Oversight Officer, each cannabis business
22establishment licensed under this Act shall report to the
23Illinois Cannabis Regulation Oversight Officer, on a form to be
24provided by the Illinois Cannabis Regulation Oversight
25Officer, information that will allow it to assess the extent of

 

 

HB1438 Enrolled- 38 -LRB101 04919 JRG 49928 b

1diversity in the medical and adult use cannabis industry and
2methods for reducing or eliminating any identified barriers to
3entry, including access to capital. The information to be
4collected shall be designed to identify the following:
5        (1) the number and percentage of licenses provided to
6    Social Equity Applicants and to businesses owned by
7    minorities, women, veterans, and people with disabilities;
8        (2) the total number and percentage of employees in the
9    cannabis industry who meet the criteria in (3)(i) or
10    (3)(ii) in the definition of Social Equity Applicant or who
11    are minorities, women, veterans, or people with
12    disabilities;
13        (3) the total number and percentage of contractors and
14    subcontractors in the cannabis industry that meet the
15    definition of a Social Equity Applicant or who are owned by
16    minorities, women, veterans, or people with disabilities,
17    if known to the cannabis business establishment; and
18        (4) recommendations on reducing or eliminating any
19    identified barriers to entry, including access to capital,
20    in the cannabis industry.
 
21
ARTICLE 10.
22
PERSONAL USE OF CANNABIS

 
23    Section 10-5. Personal use of cannabis; restrictions on
24cultivation; penalties.

 

 

HB1438 Enrolled- 39 -LRB101 04919 JRG 49928 b

1    (a) Beginning January 1, 2020, notwithstanding any other
2provision of law, and except as otherwise provided in this Act,
3the following acts are not a violation of this Act and shall
4not be a criminal or civil offense under State law or the
5ordinances of any unit of local government of this State or be
6a basis for seizure or forfeiture of assets under State law for
7persons other than natural individuals under 21 years of age:
8        (1) possession, consumption, use, purchase, obtaining,
9    or transporting an amount of cannabis for personal use that
10    does not exceed the possession limit under Section 10-10 or
11    otherwise in accordance with the requirements of this Act;
12        (2) cultivation of cannabis for personal use in
13    accordance with the requirements of this Act; and
14        (3) controlling property if actions that are
15    authorized by this Act occur on the property in accordance
16    with this Act.
17    (a-1) Beginning January 1, 2020, notwithstanding any other
18provision of law, and except as otherwise provided in this Act,
19possessing, consuming, using, purchasing, obtaining, or
20transporting an amount of cannabis purchased or produced in
21accordance with this Act that does not exceed the possession
22limit under subsection (a) of Section 10-10 shall not be a
23basis for seizure or forfeiture of assets under State law.
24    (b) Cultivating cannabis for personal use is subject to the
25following limitations:
26        (1) An Illinois resident 21 years of age or older who

 

 

HB1438 Enrolled- 40 -LRB101 04919 JRG 49928 b

1    is a registered qualifying patient under the Compassionate
2    Use of Medical Cannabis Pilot Program Act may cultivate
3    cannabis plants, with a limit of 5 plants that are more
4    than 5 inches tall, per household without a cultivation
5    center or craft grower license. In this Section, "resident"
6    means a person who has been domiciled in the State of
7    Illinois for a period of 30 days before cultivation.
8        (2) Cannabis cultivation must take place in an
9    enclosed, locked space.
10        (3) Adult registered qualifying patients may purchase
11    cannabis seeds from a dispensary for the purpose of home
12    cultivation. Seeds may not be given or sold to any other
13    person.
14        (4) Cannabis plants shall not be stored or placed in a
15    location where they are subject to ordinary public view, as
16    defined in this Act. A registered qualifying patient who
17    cultivates cannabis under this Section shall take
18    reasonable precautions to ensure the plants are secure from
19    unauthorized access, including unauthorized access by a
20    person under 21 years of age.
21        (5) Cannabis cultivation may occur only on residential
22    property lawfully in possession of the cultivator or with
23    the consent of the person in lawful possession of the
24    property. An owner or lessor of residential property may
25    prohibit the cultivation of cannabis by a lessee.
26        (6) (Blank).

 

 

HB1438 Enrolled- 41 -LRB101 04919 JRG 49928 b

1        (7) A dwelling, residence, apartment, condominium
2    unit, enclosed, locked space, or piece of property not
3    divided into multiple dwelling units shall not contain more
4    than 5 plants at any one time.
5        (8) Cannabis plants may only be tended by registered
6    qualifying patients who reside at the residence, or their
7    authorized agent attending to the residence for brief
8    periods, such as when the qualifying patient is temporarily
9    away from the residence.
10        (9) A registered qualifying patient who cultivates
11    more than the allowable number of cannabis plants, or who
12    sells or gives away cannabis plants, cannabis, or
13    cannabis-infused products produced under this Section, is
14    liable for penalties as provided by law, including the
15    Cannabis Control Act, in addition to loss of home
16    cultivation privileges as established by rule.
 
17    Section 10-10. Possession limit.
18    (a) Except if otherwise authorized by this Act, for a
19person who is 21 years of age or older and a resident of this
20State, the possession limit is as follows:
21        (1) 30 grams of cannabis flower;
22        (2) no more than 500 milligrams of THC contained in
23    cannabis-infused product;
24        (3) 5 grams of cannabis concentrate; and
25        (4) for registered qualifying patients, any cannabis

 

 

HB1438 Enrolled- 42 -LRB101 04919 JRG 49928 b

1    produced by cannabis plants grown under subsection (b) of
2    Section 10-5, provided any amount of cannabis produced in
3    excess of 30 grams of raw cannabis or its equivalent must
4    remain secured within the residence or residential
5    property in which it was grown.
6    (b) For a person who is 21 years of age or older and who is
7not a resident of this State, the possession limit is:
8        (1) 15 grams of cannabis flower;
9        (2) 2.5 grams of cannabis concentrate; and
10        (3) 250 milligrams of THC contained in a
11    cannabis-infused product.
12    (c) The possession limits found in subsections (a) and (b)
13of this Section are to be considered cumulative.
14    (d) No person shall knowingly obtain, seek to obtain, or
15possess an amount of cannabis from a dispensing organization or
16craft grower that would cause him or her to exceed the
17possession limit under this Section, including cannabis that is
18cultivated by a person under this Act or obtained under the
19Compassionate Use of Medical Cannabis Pilot Program Act.
 
20    Section 10-15. Persons under 21 years of age.
21    (a) Nothing in this Act is intended to permit the transfer
22of cannabis, with or without remuneration, to a person under 21
23years of age, or to allow a person under 21 years of age to
24purchase, possess, use, process, transport, grow, or consume
25cannabis except where authorized by the Compassionate Use of

 

 

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1Medical Cannabis Pilot Program Act or by the Community College
2Cannabis Vocational Pilot Program.
3    (b) Notwithstanding any other provisions of law
4authorizing the possession of medical cannabis, nothing in this
5Act authorizes a person who is under 21 years of age to possess
6cannabis. A person under 21 years of age with cannabis in his
7or her possession is guilty of a civil law violation as
8outlined in paragraph (a) of Section 4 of the Cannabis Control
9Act.
10    (c) If the person under the age of 21 was in a motor
11vehicle at the time of the offense, the Secretary of State may
12suspend or revoke the driving privileges of any person for a
13violation of this Section under Section 6-206 of the Illinois
14Vehicle Code and the rules adopted under it.
15    (d) It is unlawful for any parent or guardian to knowingly
16permit his or her residence, any other private property under
17his or her control, or any vehicle, conveyance, or watercraft
18under his or her control to be used by an invitee of the
19parent's child or the guardian's ward, if the invitee is under
20the age of 21, in a manner that constitutes a violation of this
21Section. A parent or guardian is deemed to have knowingly
22permitted his or her residence, any other private property
23under his or her control, or any vehicle, conveyance, or
24watercraft under his or her control to be used in violation of
25this Section if he or she knowingly authorizes or permits
26consumption of cannabis by underage invitees. Any person who

 

 

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1violates this subsection (d) is guilty of a Class A misdemeanor
2and the person's sentence shall include, but shall not be
3limited to, a fine of not less than $500. If a violation of
4this subsection (d) directly or indirectly results in great
5bodily harm or death to any person, the person violating this
6subsection is guilty of a Class 4 felony. In this subsection
7(d), where the residence or other property has an owner and a
8tenant or lessee, the trier of fact may infer that the
9residence or other property is occupied only by the tenant or
10lessee.
 
11    Section 10-20. Identification; false identification;
12penalty.
13    (a) To protect personal privacy, the Department of
14Financial and Professional Regulation shall not require a
15purchaser to provide a dispensing organization with personal
16information other than government-issued identification to
17determine the purchaser's age, and a dispensing organization
18shall not obtain and record personal information about a
19purchaser without the purchaser's consent. A dispensing
20organization shall use an electronic reader or electronic
21scanning device to scan a purchaser's government-issued
22identification, if applicable, to determine the purchaser's
23age and the validity of the identification. Any identifying or
24personal information of a purchaser obtained or received in
25accordance with this Section shall not be retained, used,

 

 

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1shared or disclosed for any purpose except as authorized by
2this Act.
3    (b) A person who is under 21 years of age may not present
4or offer to a cannabis business establishment or the cannabis
5business establishment's principal or employee any written or
6oral evidence of age that is false, fraudulent, or not actually
7the person's own, for the purpose of:
8        (1) purchasing, attempting to purchase, or otherwise
9    obtaining or attempting to obtain cannabis or any cannabis
10    product; or
11        (2) gaining access to a cannabis business
12    establishment.
13    (c) A violation of this Section is a Class A misdemeanor
14consistent with Section 6-20 of the Liquor Control Act of 1934.
15    (d) The Secretary of State may suspend or revoke the
16driving privileges of any person for a violation of this
17Section under Section 6-206 of the Illinois Vehicle Code and
18the rules adopted under it.
19    (e) No agent or employee of the licensee shall be
20disciplined or discharged for selling or furnishing cannabis or
21cannabis products to a person under 21 years of age if the
22agent or employee demanded and was shown, before furnishing
23cannabis or cannabis products to a person under 21 years of
24age, adequate written evidence of age and identity of the
25person. This subsection (e) does not apply if the agent or
26employee accepted the written evidence knowing it to be false

 

 

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1or fraudulent. Adequate written evidence of age and identity of
2the person is a document issued by a federal, State, county, or
3municipal government, or subdivision or agency thereof,
4including, but not limited to, a motor vehicle operator's
5license, a registration certificate issued under the Military
6Selective Service Act, or an identification card issued to a
7member of the Armed Forces. Proof that the licensee or his or
8her employee or agent was shown and reasonably relied upon such
9written evidence in any transaction forbidden by this Section
10is an affirmative defense in any criminal prosecution therefor
11or to any proceedings for the suspension or revocation of any
12license based thereon.
 
13    Section 10-25. Immunities and presumptions related to the
14use of cannabis by purchasers.
15    (a) A purchaser who is 21 years of age or older is not
16subject to arrest, prosecution, denial of any right or
17privilege, or other punishment including, but not limited to,
18any civil penalty or disciplinary action taken by an
19occupational or professional licensing board, based solely on
20the use of cannabis if (1) the purchaser possesses an amount of
21cannabis that does not exceed the possession limit under
22Section 10-10 and, if the purchaser is licensed, certified, or
23registered to practice any trade or profession under any Act
24and (2) the use of cannabis does not impair that person when he
25or she is engaged in the practice of the profession for which

 

 

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1he or she is licensed, certified, or registered.
2    (b) A purchaser 21 years of age or older is not subject to
3arrest, prosecution, denial of any right or privilege, or other
4punishment, including, but not limited to, any civil penalty or
5disciplinary action taken by an occupational or professional
6licensing board, based solely for (i) selling cannabis
7paraphernalia if employed and licensed as a dispensing agent by
8a dispensing organization or (ii) being in the presence or
9vicinity of the use of cannabis as allowed under this Act.
10    (c) Mere possession of, or application for, an agent
11identification card or license does not constitute probable
12cause or reasonable suspicion to believe that a crime has been
13committed, nor shall it be used as the sole basis to support
14the search of the person, property, or home of the person
15possessing or applying for the agent identification card. The
16possession of, or application for, an agent identification card
17does not preclude the existence of probable cause if probable
18cause exists based on other grounds.
19    (d) No person employed by the State of Illinois shall be
20subject to criminal or civil penalties for taking any action in
21good faith in reliance on this Act when acting within the scope
22of his or her employment. Representation and indemnification
23shall be provided to State employees as set forth in Section 2
24of the State Employee Indemnification Act.
25    (e) No law enforcement or correctional agency, nor any
26person employed by a law enforcement or correctional agency,

 

 

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1shall be subject to criminal or civil liability, except for
2willful and wanton misconduct, as a result of taking any action
3within the scope of the official duties of the agency or person
4to prohibit or prevent the possession or use of cannabis by a
5person incarcerated at a correctional facility, jail, or
6municipal lockup facility, on parole or mandatory supervised
7release, or otherwise under the lawful jurisdiction of the
8agency or person.
9    (f) For purposes of receiving medical care, including organ
10transplants, a person's use of cannabis under this Act does not
11constitute the use of an illicit substance or otherwise
12disqualify a person from medical care.
 
13    Section 10-30. Discrimination prohibited.
14    (a) Neither the presence of cannabinoid components or
15metabolites in a person's bodily fluids nor possession of
16cannabis-related paraphernalia, nor conduct related to the use
17of cannabis or the participation in cannabis-related
18activities lawful under this Act by a custodial or noncustodial
19parent, grandparent, legal guardian, foster parent, or other
20person charged with the well-being of a child, shall form the
21sole or primary basis or supporting basis for any action or
22proceeding by a child welfare agency or in a family or juvenile
23court, any adverse finding, adverse evidence, or restriction of
24any right or privilege in a proceeding related to adoption of a
25child, acting as a foster parent of a child, or a person's

 

 

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1fitness to adopt a child or act as a foster parent of a child,
2or serve as the basis of any adverse finding, adverse evidence,
3or restriction of any right of privilege in a proceeding
4related to guardianship, conservatorship, trusteeship, the
5execution of a will, or the management of an estate, unless the
6person's actions in relation to cannabis created an
7unreasonable danger to the safety of the minor or otherwise
8show the person to not be competent as established by clear and
9convincing evidence. This subsection applies only to conduct
10protected under this Act.
11    (b) No landlord may be penalized or denied any benefit
12under State law for leasing to a person who uses cannabis under
13this Act.
14    (c) Nothing in this Act may be construed to require any
15person or establishment in lawful possession of property to
16allow a guest, client, lessee, customer, or visitor to use
17cannabis on or in that property.
 
18    Section 10-35. Limitations and penalties.
19    (a) This Act does not permit any person to engage in, and
20does not prevent the imposition of any civil, criminal, or
21other penalties for engaging in, any of the following conduct:
22        (1) undertaking any task under the influence of
23    cannabis when doing so would constitute negligence,
24    professional malpractice, or professional misconduct;
25        (2) possessing cannabis:

 

 

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1            (A) in a school bus, unless permitted for a
2        qualifying patient or caregiver pursuant to the
3        Compassionate Use of Medical Cannabis Pilot Program
4        Act;
5            (B) on the grounds of any preschool or primary or
6        secondary school, unless permitted for a qualifying
7        patient or caregiver pursuant to the Compassionate Use
8        of Medical Cannabis Pilot Program Act;
9            (C) in any correctional facility;
10            (D) in a vehicle not open to the public unless the
11        cannabis is in a reasonably secured, sealed container
12        and reasonably inaccessible while the vehicle is
13        moving; or
14            (E) in a private residence that is used at any time
15        to provide licensed child care or other similar social
16        service care on the premises;
17        (3) using cannabis:
18            (A) in a school bus, unless permitted for a
19        qualifying patient or caregiver pursuant to the
20        Compassionate Use of Medical Cannabis Pilot Program
21        Act;
22            (B) on the grounds of any preschool or primary or
23        secondary school, unless permitted for a qualifying
24        patient or caregiver pursuant to the Compassionate Use
25        of Medical Cannabis Pilot Program Act;
26            (C) in any correctional facility;

 

 

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1            (D) in any motor vehicle;
2            (E) in a private residence that is used at any time
3        to provide licensed child care or other similar social
4        service care on the premises;
5            (F) in any public place; or
6            (G) knowingly in close physical proximity to
7        anyone under 21 years of age who is not a registered
8        medical cannabis patient under the Compassionate Use
9        of Medical Cannabis Pilot Program Act;
10        (4) smoking cannabis in any place where smoking is
11    prohibited under the Smoke Free Illinois Act;
12        (5) operating, navigating, or being in actual physical
13    control of any motor vehicle, aircraft, or motorboat while
14    using or under the influence of cannabis in violation of
15    Section 11-501 or 11-502.1 of the Illinois Vehicle Code;
16        (6) facilitating the use of cannabis by any person who
17    is not allowed to use cannabis under this Act or the
18    Compassionate Use of Medical Cannabis Pilot Program Act;
19        (7) transferring cannabis to any person contrary to
20    this Act or the Compassionate Use of Medical Cannabis Pilot
21    Program Act;
22        (8) the use of cannabis by a law enforcement officer,
23    corrections officer, probation officer, or firefighter
24    while on duty; or
25        (9) the use of cannabis by a person who has a school
26    bus permit or a Commercial Driver's License while on duty.

 

 

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1    As used in this Section, "public place" means any place
2where a person could reasonably be expected to be observed by
3others. "Public place" includes all parts of buildings owned in
4whole or in part, or leased, by the State or a unit of local
5government. "Public place" does not include a private residence
6unless the private residence is used to provide licensed child
7care, foster care, or other similar social service care on the
8premises.
9    (b) Nothing in this Act shall be construed to prevent the
10arrest or prosecution of a person for reckless driving or
11driving under the influence of cannabis if probable cause
12exists.
13    (c) Nothing in this Act shall prevent a private business
14from restricting or prohibiting the use of cannabis on its
15property, including areas where motor vehicles are parked.
16    (d) Nothing in this Act shall require an individual or
17business entity to violate the provisions of federal law,
18including colleges or universities that must abide by the
19Drug-Free Schools and Communities Act Amendments of 1989, that
20require campuses to be drug free.
 
21    Section 10-40. Restore, Reinvest, and Renew Program.
22    (a) The General Assembly finds that in order to address the
23disparities described below, aggressive approaches and
24targeted resources to support local design and control of
25community-based responses to these outcomes are required. To

 

 

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1carry out this intent, the Restore, Reinvest, and Renew (R3)
2Program is created for the following purposes:
3        (1) to directly address the impact of economic
4    disinvestment, violence, and the historical overuse of
5    criminal justice responses to community and individual
6    needs by providing resources to support local design and
7    control of community-based responses to these impacts;
8        (2) to substantially reduce both the total amount of
9    gun violence and concentrated poverty in this State;
10        (3) to protect communities from gun violence through
11    targeted investments and intervention programs, including
12    economic growth and improving family violence prevention,
13    community trauma treatment rates, gun injury victim
14    services, and public health prevention activities;
15        (4) to promote employment infrastructure and capacity
16    building related to the social determinants of health in
17    the eligible community areas.
18    (b) In this Section, "Authority" means the Illinois
19Criminal Justice Information Authority in coordination with
20the Justice, Equity, and Opportunity Initiative of the
21Lieutenant Governor's Office.
22    (c) Eligibility of R3 Areas. Within 180 days after the
23effective date of this Act, the Authority shall identify as
24eligible, areas in this State by way of historically recognized
25geographic boundaries, to be designated by the Restore,
26Reinvest, and Renew Program Board as R3 Areas and therefore

 

 

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1eligible to apply for R3 funding. Local groups within R3 Areas
2will be eligible to apply for State funding through the
3Restore, Reinvest, and Renew Program Board. Qualifications for
4designation as an R3 Area are as follows:
5        (1) Based on an analysis of data, communities in this
6    State that are high need, underserved, disproportionately
7    impacted by historical economic disinvestment, and ravaged
8    by violence as indicated by the highest rates of gun
9    injury, unemployment, child poverty rates, and commitments
10    to and returns from the Illinois Department of Corrections.
11        (2) The Authority shall send to the Legislative Audit
12    Commission and make publicly available its analysis and
13    identification of eligible R3 Areas and shall recalculate
14    he eligibility data every 4 years. On an annual basis, the
15    Authority shall analyze data and indicate if data covering
16    any R3 Area or portion of an Area has, for 4 consecutive
17    years, substantially deviated from the average of
18    statewide data on which the original calculation was made
19    to determine the Areas, including disinvestment, violence,
20    gun injury, unemployment, child poverty rates, or
21    commitments to or returns from the Illinois Department of
22    Corrections.
23    (d) The Restore, Reinvest, and Renew Program Board shall
24encourage collaborative partnerships within each R3 Area to
25minimize multiple partnerships per Area.
26    (e) The Restore, Reinvest, and Renew Program Board is

 

 

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1created and shall reflect the diversity of the State of
2Illinois, including geographic, racial, and ethnic diversity.
3Using the data provided by the Authority, the Restore,
4Reinvest, and Renew Program Board shall be responsible for
5designating the R3 Area boundaries and for the selection and
6oversight of R3 Area grantees. The Restore, Reinvest, and Renew
7Program Board ex officio members shall, within 4 months after
8the effective date of this Act, convene the Board to appoint a
9full Restore, Reinvest, and Renew Program Board and oversee,
10provide guidance to, and develop an administrative structure
11for the R3 Program.
12            (1) The ex officio members are:
13                (A) The Lieutenant Governor, or his or her
14            designee, who shall serve as chair.
15                (B) The Attorney General, or his or her
16            designee.
17                (C) The Director of Commerce and Economic
18            Opportunity, or his or her designee.
19                (D) The Director of Public Health, or his or
20            her designee.
21                (E) The Director of Corrections, or his or her
22            designee.
23                (F) The Executive Director of the Illinois
24            Criminal Justice Information Authority, or his or
25            her designee.
26                (G) The Director of Employment Security, or

 

 

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1            his or her designee.
2                (H) The Secretary of Human Services, or his or
3            her designee.
4                (I) A member of the Senate, designated by the
5            President of the Senate.
6                (J) A member of the House of Representatives,
7            designated by the Speaker of the House of
8            Representatives.
9                (K) A member of the Senate, designated by the
10            Minority Leader of the Senate.
11                (L) A member of the House of Representatives,
12            designated by the Minority Leader of the House of
13            Representatives.
14        (2) Within 90 days after the R3 Areas have been
15    designated by the Restore, Reinvest, and Renew Program
16    Board, the following members shall be appointed to the
17    Board by the R3 board chair:
18            (A) public officials of municipal geographic
19        jurisdictions in the State that include an R3 Area, or
20        their designees;
21            (B) 4 community-based providers or community
22        development organization representatives who provide
23        services to treat violence and address the social
24        determinants of health, or promote community
25        investment, including, but not limited to, services
26        such as job placement and training, educational

 

 

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1        services, workforce development programming, and
2        wealth building. The community-based organization
3        representatives shall work primarily in jurisdictions
4        that include an R3 Area and no more than 2
5        representatives shall work primarily in Cook County.
6        At least one of the community-based providers shall
7        have expertise in providing services to an immigrant
8        population;
9            (C) Two experts in the field of violence reduction;
10            (D) One male who has previously been incarcerated
11        and is over the age of 24 at time of appointment;
12            (E) One female who has previously been
13        incarcerated and is over the age of 24 at time of
14        appointment;
15            (F) Two individuals who have previously been
16        incarcerated and are between the ages of 17 and 24 at
17        time of appointment.
18        As used in this paragraph (2), "an individual who has
19    been previously incarcerated" means a person who has been
20    convicted of or pled guilty to one or more felonies, who
21    was sentenced to a term of imprisonment, and who has
22    completed his or her sentence. Board members shall serve
23    without compensation and may be reimbursed for reasonable
24    expenses incurred in the performance of their duties from
25    funds appropriated for that purpose. Once all its members
26    have been appointed as outlined in items (A) through (F) of

 

 

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1    this paragraph (2), the Board may exercise any power,
2    perform any function, take any action, or do anything in
3    furtherance of its purposes and goals upon the appointment
4    of a quorum of its members. The Board terms of the non-ex
5    officio and General Assembly Board members shall end 4
6    years from the date of appointment.
7    (f) Within 12 months after the effective date of this Act,
8the Board shall:
9        (1) develop a process to solicit applications from
10    eligible R3 Areas;
11        (2) develop a standard template for both planning and
12    implementation activities to be submitted by R3 Areas to
13    the State;
14        (3) identify resources sufficient to support the full
15    administration and evaluation of the R3 Program, including
16    building and sustaining core program capacity at the
17    community and State levels;
18        (4) review R3 Area grant applications and proposed
19    agreements and approve the distribution of resources;
20        (5) develop a performance measurement system that
21    focuses on positive outcomes;
22        (6) develop a process to support ongoing monitoring and
23    evaluation of R3 programs; and
24        (7) deliver an annual report to the General Assembly
25    and to the Governor to be posted on the Governor's Office
26    and General Assembly websites and provide to the public an

 

 

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1    annual report on its progress.
2    (g) R3 Area grants.
3        (1) Grant funds shall be awarded by the Illinois
4    Criminal Justice Information Authority, in coordination
5    with the R3 board, based on the likelihood that the plan
6    will achieve the outcomes outlined in subsection (a) and
7    consistent with the requirements of the Grant
8    Accountability and Transparency Act. The R3 Program shall
9    also facilitate the provision of training and technical
10    assistance for capacity building within and among R3 Areas.
11        (2) R3 Program Board grants shall be used to address
12    economic development, violence prevention services,
13    re-entry services, youth development, and civil legal aid.
14        (3) The Restore, Reinvest, and Renew Program Board and
15    the R3 Area grantees shall, within a period of no more than
16    120 days from the completion of planning activities
17    described in this Section, finalize an agreement on the
18    plan for implementation. Implementation activities may:
19            (A) have a basis in evidence or best practice
20        research or have evaluations demonstrating the
21        capacity to address the purpose of the program in
22        subsection (a);
23            (B) collect data from the inception of planning
24        activities through implementation, with data
25        collection technical assistance when needed, including
26        cost data and data related to identified meaningful

 

 

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1        short-term, mid-term, and long-term goals and metrics;
2            (C) report data to the Restore, Reinvest, and Renew
3        Program Board biannually; and
4            (D) report information as requested by the R3
5        Program Board.
 
6    Section 10-50. Employment; employer liability.
7    (a) Nothing in this Act shall prohibit an employer from
8adopting reasonable zero tolerance or drug free workplace
9policies, or employment policies concerning drug testing,
10smoking, consumption, storage, or use of cannabis in the
11workplace or while on call provided that the policy is applied
12in a nondiscriminatory manner.
13    (b) Nothing in this Act shall require an employer to permit
14an employee to be under the influence of or use cannabis in the
15employer's workplace or while performing the employee's job
16duties or while on call.
17    (c) Nothing in this Act shall limit or prevent an employer
18from disciplining an employee or terminating employment of an
19employee for violating an employer's employment policies or
20workplace drug policy.
21    (d) An employer may consider an employee to be impaired or
22under the influence of cannabis if the employer has a good
23faith belief that an employee manifests specific, articulable
24symptoms while working that decrease or lessen the employee's
25performance of the duties or tasks of the employee's job

 

 

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1position, including symptoms of the employee's speech,
2physical dexterity, agility, coordination, demeanor,
3irrational or unusual behavior, or negligence or carelessness
4in operating equipment or machinery; disregard for the safety
5of the employee or others, or involvement in any accident that
6results in serious damage to equipment or property; disruption
7of a production or manufacturing process; or carelessness that
8results in any injury to the employee or others. If an employer
9elects to discipline an employee on the basis that the employee
10is under the influence or impaired by cannabis, the employer
11must afford the employee a reasonable opportunity to contest
12the basis of the determination.
13    (e) Nothing in this Act shall be construed to create or
14imply a cause of action for any person against an employer for:
15        (1) actions, including but not limited to subjecting an
16    employee or applicant to reasonable drug and alcohol
17    testing under the employer's workplace drug policy,
18    including an employee's refusal to be tested or to
19    cooperate in testing procedures or disciplining or
20    termination of employment, based on the employer's good
21    faith belief that an employee used or possessed cannabis in
22    the employer's workplace or while performing the
23    employee's job duties or while on call in violation of the
24    employer's employment policies;
25        (2) actions, including discipline or termination of
26    employment, based on the employer's good faith belief that

 

 

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1    an employee was impaired as a result of the use of
2    cannabis, or under the influence of cannabis, while at the
3    employer's workplace or while performing the employee's
4    job duties or while on call in violation of the employer's
5    workplace drug policy; or
6        (3) injury, loss, or liability to a third party if the
7    employer neither knew nor had reason to know that the
8    employee was impaired.
9    (f) Nothing in this Act shall be construed to enhance or
10diminish protections afforded by any other law, including but
11not limited to the Compassionate Use of Medical Cannabis Pilot
12Program Act or the Opioid Alternative Pilot Program.
13    (g) Nothing in this Act shall be construed to interfere
14with any federal, State, or local restrictions on employment
15including, but not limited to, the United States Department of
16Transportation regulation 49 CFR 40.151(e) or impact an
17employer's ability to comply with federal or State law or cause
18it to lose a federal or State contract or funding.
19    (h) As used in this Section, "workplace" means the
20employer's premises, including any building, real property,
21and parking area under the control of the employer or area used
22by an employee while in performance of the employee's job
23duties, and vehicles, whether leased, rented, or owned.
24"Workplace" may be further defined by the employer's written
25employment policy, provided that the policy is consistent with
26this Section.

 

 

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1    (i) For purposes of this Section, an employee is deemed "on
2call" when such employee is scheduled with at least 24 hours'
3notice by his or her employer to be on standby or otherwise
4responsible for performing tasks related to his or her
5employment either at the employer's premises or other
6previously designated location by his or her employer or
7supervisor to perform a work-related task.
 
8
ARTICLE 15.
9
LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS

 
10    Section 15-5. Authority.
11    (a) In this Article, "Department" means the Department of
12Financial and Professional Regulation.
13    (b) It is the duty of the Department to administer and
14enforce the provisions of this Act relating to the licensure
15and oversight of dispensing organizations and dispensing
16organization agents unless otherwise provided in this Act.
17    (c) No person shall operate a dispensing organization for
18the purpose of serving purchasers of cannabis or cannabis
19products without a license issued under this Article by the
20Department. No person shall be an officer, director, manager,
21or employee of a dispensing organization without having been
22issued a dispensing organization agent card by the Department.
23    (d) Subject to the provisions of this Act, the Department
24may exercise the following powers and duties:

 

 

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1        (1) Prescribe forms to be issued for the administration
2    and enforcement of this Article.
3        (2) Examine, inspect, and investigate the premises,
4    operations, and records of dispensing organization
5    applicants and licensees.
6        (3) Conduct investigations of possible violations of
7    this Act pertaining to dispensing organizations and
8    dispensing organization agents.
9        (4) Conduct hearings on proceedings to refuse to issue
10    or renew licenses or to revoke, suspend, place on
11    probation, reprimand, or otherwise discipline a license
12    under this Article or take other nondisciplinary action.
13        (5) Adopt rules required for the administration of this
14    Article.
 
15    Section 15-10. Medical cannabis dispensing organization
16exemption. This Article does not apply to medical cannabis
17dispensing organizations registered under the Compassionate
18Use of Medical Cannabis Pilot Program Act, except where
19otherwise specified.
 
20    Section 15-15. Early Approval Adult Use Dispensing
21Organization License.
22    (a) Any medical cannabis dispensing organization holding a
23valid registration under the Compassionate Use of Medical
24Cannabis Pilot Program Act as of the effective date of this Act

 

 

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1may, within 60 days of the effective date of this Act, apply to
2the Department for an Early Approval Adult Use Dispensing
3Organization License to serve purchasers at any medical
4cannabis dispensing location in operation on the effective date
5of this Act, pursuant to this Section.
6    (b) A medical cannabis dispensing organization seeking
7issuance of an Early Approval Adult Use Dispensing Organization
8License to serve purchasers at any medical cannabis dispensing
9location in operation as of the effective date of this Act
10shall submit an application on forms provided by the
11Department. The application must be submitted by the same
12person or entity that holds the medical cannabis dispensing
13organization registration and include the following:
14        (1) Payment of a nonrefundable fee of $30,000 to be
15    deposited into the Cannabis Regulation Fund;
16        (2) Proof of registration as a medical cannabis
17    dispensing organization that is in good standing;
18        (3) Certification that the applicant will comply with
19    the requirements contained in the Compassionate Use of
20    Medical Cannabis Pilot Program Act except as provided in
21    this Act;
22        (4) The legal name of the dispensing organization;
23        (5) The physical address of the dispensing
24    organization;
25        (6) The name, address, social security number, and date
26    of birth of each principal officer and board member of the

 

 

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1    dispensing organization, each of whom must be at least 21
2    years of age;
3        (7) A nonrefundable Cannabis Business Development Fee
4    equal to 3% of the dispensing organization's total sales
5    between June 1, 2018 to June 1, 2019, or $100,000,
6    whichever is less, to be deposited into the Cannabis
7    Business Development Fund; and
8        (8) Identification of one of the following Social
9    Equity Inclusion Plans to be completed by March 31, 2021:
10            (A) Make a contribution of 3% of total sales from
11        June 1, 2018 to June 1, 2019, or $100,000, whichever is
12        less, to the Cannabis Business Development Fund. This
13        is in addition to the fee required by item (7) of this
14        subsection (b);
15            (B) Make a grant of 3% of total sales from June 1,
16        2018 to June 1, 2019, or $100,000, whichever is less,
17        to a cannabis industry training or education program at
18        an Illinois community college as defined in the Public
19        Community College Act;
20            (C) Make a donation of $100,000 or more to a
21        program that provides job training services to persons
22        recently incarcerated or that operates in a
23        Disproportionately Impacted Area;
24            (D) Participate as a host in a cannabis business
25        establishment incubator program approved by the
26        Department of Commerce and Economic Opportunity, and

 

 

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1        in which an Early Approval Adult Use Dispensing
2        Organization License holder agrees to provide a loan of
3        at least $100,000 and mentorship to incubate a licensee
4        that qualifies as a Social Equity Applicant for at
5        least a year. As used in this Section, "incubate" means
6        providing direct financial assistance and training
7        necessary to engage in licensed cannabis industry
8        activity similar to that of the host licensee. The
9        Early Approval Adult Use Dispensing Organization
10        License holder or the same entity holding any other
11        licenses issued pursuant to this Act shall not take an
12        ownership stake of greater than 10% in any business
13        receiving incubation services to comply with this
14        subsection. If an Early Approval Adult Use Dispensing
15        Organization License holder fails to find a business to
16        incubate to comply with this subsection before its
17        Early Approval Adult Use Dispensing Organization
18        License expires, it may opt to meet the requirement of
19        this subsection by completing another item from this
20        subsection; or
21            (E) Participate in a sponsorship program for at
22        least 2 years approved by the Department of Commerce
23        and Economic Opportunity in which an Early Approval
24        Adult Use Dispensing Organization License holder
25        agrees to provide an interest-free loan of at least
26        $200,000 to a Social Equity Applicant. The sponsor

 

 

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1        shall not take an ownership stake in any cannabis
2        business establishment receiving sponsorship services
3        to comply with this subsection.
4    (c) The license fee required by paragraph (1) of subsection
5(b) of this Section shall be in addition to any license fee
6required for the renewal of a registered medical cannabis
7dispensing organization license.
8    (d) Applicants must submit all required information,
9including the requirements in subsection (b) of this Section,
10to the Department. Failure by an applicant to submit all
11required information may result in the application being
12disqualified.
13    (e) If the Department receives an application that fails to
14provide the required elements contained in subsection (b), the
15Department shall issue a deficiency notice to the applicant.
16The applicant shall have 10 calendar days from the date of the
17deficiency notice to submit complete information. Applications
18that are still incomplete after this opportunity to cure may be
19disqualified.
20    (f) If an applicant meets all the requirements of
21subsection (b) of this Section, the Department shall issue the
22Early Approval Adult Use Dispensing Organization License
23within 14 days of receiving a completed application unless:
24        (1) The licensee or a principal officer is delinquent
25    in filing any required tax returns or paying any amounts
26    owed to the State of Illinois;

 

 

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1        (2) The Secretary of Financial and Professional
2    Regulation determines there is reason, based on documented
3    compliance violations, the licensee is not entitled to an
4    Early Approval Adult Use Dispensing Organization License;
5    or
6        (3) Any principal officer fails to register and remain
7    in compliance with this Act or the Compassionate Use of
8    Medical Cannabis Pilot Program Act.
9    (g) A registered medical cannabis dispensing organization
10that obtains an Early Approval Adult Use Dispensing
11Organization License may begin selling cannabis,
12cannabis-infused products, paraphernalia, and related items to
13purchasers under the rules of this Act no sooner than January
141, 2020.
15    (h) A dispensing organization holding a medical cannabis
16dispensing organization license issued under the Compassionate
17Use of Medical Cannabis Pilot Program Act must maintain an
18adequate supply of cannabis and cannabis-infused products for
19purchase by qualifying patients, caregivers, provisional
20patients, and Opioid Alternative Pilot Program participants.
21For the purposes of this subsection, "adequate supply" means a
22monthly inventory level that is comparable in type and quantity
23to those medical cannabis products provided to patients and
24caregivers on an average monthly basis for the 6 months before
25the effective date of this Act.
26    (i) If there is a shortage of cannabis or cannabis-infused

 

 

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1products, a dispensing organization holding both a dispensing
2organization license under the Compassionate Use of Medical
3Cannabis Pilot Program Act and this Act shall prioritize
4serving qualifying patients, caregivers, provisional patients,
5and Opioid Alternative Pilot Program participants before
6serving purchasers.
7    (j) Notwithstanding any law or rule to the contrary, a
8person that holds a medical cannabis dispensing organization
9license issued under the Compassionate Use of Medical Cannabis
10Pilot Program Act and an Early Approval Adult Use Dispensing
11Organization License may permit purchasers into a limited
12access area as that term is defined in administrative rules
13made under the authority in the Compassionate Use of Medical
14Cannabis Pilot Program Act.
15    (k) An Early Approval Adult Use Dispensing Organization
16License is valid until March 31, 2021. A dispensing
17organization that obtains an Early Approval Adult Use
18Dispensing Organization License shall receive written or
19electronic notice 90 days before the expiration of the license
20that the license will expire, and inform the license holder
21that it may renew its Early Approval Adult Use Dispensing
22Organization License. The Department shall renew the Early
23Approval Adult Use Dispensing Organization License within 60
24days of the renewal application being deemed complete if:
25        (1) the dispensing organization submits an application
26    and the required nonrefundable renewal fee of $30,000, to

 

 

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1    be deposited into the Cannabis Regulation Fund;
2        (2) the Department has not suspended or revoked the
3    Early Approval Adult Use Dispensing Organization License
4    or a medical cannabis dispensing organization license on
5    the same premises for violations of this Act, the
6    Compassionate Use of Medical Cannabis Pilot Program Act, or
7    rules adopted pursuant to those Acts; and
8        (3) the dispensing organization has completed a Social
9    Equity Inclusion Plan as required by paragraph (8) of
10    subsection (b) of this Section.
11    (l) The Early Approval Adult Use Dispensing Organization
12License renewed pursuant to subsection (k) of this Section
13shall expire March 31, 2022. The Early Approval Adult Use
14Dispensing Organization Licensee shall receive written or
15electronic notice 90 days before the expiration of the license
16that the license will expire, and inform the license holder
17that it may apply for an Adult Use Dispensing Organization
18License. The Department shall grant an Adult Use Dispensing
19Organization License within 60 days of an application being
20deemed complete if the applicant has met all of the criteria in
21Section 15-36.
22    (m) If a dispensary fails to submit an application for an
23Adult Use Dispensing Organization License before the
24expiration of the Early Approval Adult Use Dispensing
25Organization License pursuant to subsection (k) of this
26Section, the dispensing organization shall cease serving

 

 

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1purchasers and cease all operations until it receives an Adult
2Use Dispensing Organization License.
3    (n) A dispensing organization agent who holds a valid
4dispensing organization agent identification card issued under
5the Compassionate Use of Medical Cannabis Pilot Program Act and
6is an officer, director, manager, or employee of the dispensing
7organization licensed under this Section may engage in all
8activities authorized by this Article to be performed by a
9dispensing organization agent.
10    (o) All fees collected pursuant to this Section shall be
11deposited into the Cannabis Regulation Fund, unless otherwise
12specified.
 
13    Section 15-20. Early Approval Adult Use Dispensing
14Organization License; secondary site.
15    (a) If the Department suspends or revokes the Early
16Approval Adult Use Dispensing Organization License of a
17dispensing organization that also holds a medical cannabis
18dispensing organization license issued under the Compassionate
19Use of Medical Cannabis Pilot Program Act, the Department may
20consider the suspension or revocation as grounds to take
21disciplinary action against the medical cannabis dispensing
22organization license.
23    (a-5) If, within 360 days of the effective date of this
24Act, a dispensing organization is unable to find a location
25within the BLS Regions prescribed in subsection (a) of this

 

 

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1Section in which to operate an Early Approval Adult Use
2Dispensing Organization at a secondary site because no
3jurisdiction within the prescribed area allows the operation of
4an Adult Use Cannabis Dispensing Organization, the Department
5of Financial and Professional Regulation may waive the
6geographic restrictions of subsection (a) of this Section and
7specify another BLS Region into which the dispensary may be
8placed.
9    (b) Any medical cannabis dispensing organization holding a
10valid registration under the Compassionate Use of Medical
11Cannabis Pilot Program Act as of the effective date of this Act
12may, within 60 days of the effective date of this Act, apply to
13the Department for an Early Approval Adult Use Dispensing
14Organization License to operate a dispensing organization to
15serve purchasers at a secondary site not within 1,500 feet of
16another medical cannabis dispensing organization or adult use
17dispensing organization. The Early Approval Adult Use
18Dispensing Organization secondary site shall be within any BLS
19region that shares territory with the dispensing organization
20district to which the medical cannabis dispensing organization
21is assigned under the administrative rules for dispensing
22organizations under the Compassionate Use of Medical Cannabis
23Pilot Program Act.
24    (c) A medical cannabis dispensing organization seeking
25issuance of an Early Approval Adult Use Dispensing Organization
26License at a secondary site to serve purchasers at a secondary

 

 

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1site as prescribed in subsection (b) of this Section shall
2submit an application on forms provided by the Department. The
3application must meet or include the following qualifications:
4        (1) a payment of a nonrefundable application fee of
5    $30,000;
6        (2) proof of registration as a medical cannabis
7    dispensing organization that is in good standing;
8        (3) submission of the application by the same person or
9    entity that holds the medical cannabis dispensing
10    organization registration;
11        (4) the legal name of the medical cannabis dispensing
12    organization;
13        (5) the physical address of the medical cannabis
14    dispensing organization and the proposed physical address
15    of the secondary site;
16        (6) a copy of the current local zoning ordinance
17    Sections relevant to dispensary operations and
18    documentation of the approval, the conditional approval or
19    the status of a request for zoning approval from the local
20    zoning office that the proposed dispensary location is in
21    compliance with the local zoning rules;
22        (7) a plot plan of the dispensary drawn to scale. The
23    applicant shall submit general specifications of the
24    building exterior and interior layout;
25        (8) a statement that the dispensing organization
26    agrees to respond to the Department's supplemental

 

 

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1    requests for information;
2        (9) for the building or land to be used as the proposed
3    dispensary:
4            (A) if the property is not owned by the applicant,
5        a written statement from the property owner and
6        landlord, if any, certifying consent that the
7        applicant may operate a dispensary on the premises; or
8            (B) if the property is owned by the applicant,
9        confirmation of ownership;
10        (10) a copy of the proposed operating bylaws;
11        (11) a copy of the proposed business plan that complies
12    with the requirements in this Act, including, at a minimum,
13    the following:
14            (A) a description of services to be offered; and
15            (B) a description of the process of dispensing
16        cannabis;
17        (12) a copy of the proposed security plan that complies
18    with the requirements in this Article, including:
19            (A) a description of the delivery process by which
20        cannabis will be received from a transporting
21        organization, including receipt of manifests and
22        protocols that will be used to avoid diversion, theft,
23        or loss at the dispensary acceptance point; and
24            (B) the process or controls that will be
25        implemented to monitor the dispensary, secure the
26        premises, agents, patients, and currency, and prevent

 

 

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1        the diversion, theft, or loss of cannabis; and
2            (C) the process to ensure that access to the
3        restricted access areas is restricted to, registered
4        agents, service professionals, transporting
5        organization agents, Department inspectors, and
6        security personnel;
7        (13) a proposed inventory control plan that complies
8    with this Section;
9        (14) the name, address, social security number, and
10    date of birth of each principal officer and board member of
11    the dispensing organization; each of those individuals
12    shall be at least 21 years of age;
13        (15) a nonrefundable Cannabis Business Development Fee
14    equal to $200,000, to be deposited into the Cannabis
15    Business Development Fund; and
16        (16) a commitment to completing one of the following
17    Social Equity Inclusion Plans in subsection (d).
18    (d) Before receiving an Early Approval Adult Use Dispensing
19Organization License at a secondary site, a dispensing
20organization shall indicate the Social Equity Inclusion Plan
21that the applicant plans to achieve before the expiration of
22the Early Approval Adult Use Dispensing Organization License
23from the list below:
24        (1) make a contribution of 3% of total sales from June
25    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
26    the Cannabis Business Development Fund. This is in addition

 

 

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1    to the fee required by paragraph (16) of subsection (c) of
2    this Section;
3        (2) make a grant of 3% of total sales from June 1, 2018
4    to June 1, 2019, or $100,000, whichever is less, to a
5    cannabis industry training or education program at an
6    Illinois community college as defined in the Public
7    Community College Act;
8        (3) make a donation of $100,000 or more to a program
9    that provides job training services to persons recently
10    incarcerated or that operates in a Disproportionately
11    Impacted Area;
12        (4) participate as a host in a cannabis business
13    establishment incubator program approved by the Department
14    of Commerce and Economic Opportunity, and in which an Early
15    Approval Adult Use Dispensing Organization License at a
16    secondary site holder agrees to provide a loan of at least
17    $100,000 and mentorship to incubate a licensee that
18    qualifies as a Social Equity Applicant for at least a year.
19    In this paragraph (4), "incubate" means providing direct
20    financial assistance and training necessary to engage in
21    licensed cannabis industry activity similar to that of the
22    host licensee. The Early Approval Adult Use Dispensing
23    Organization License holder or the same entity holding any
24    other licenses issued under this Act shall not take an
25    ownership stake of greater than 10% in any business
26    receiving incubation services to comply with this

 

 

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1    subsection. If an Early Approval Adult Use Dispensing
2    Organization License at a secondary site holder fails to
3    find a business to incubate in order to comply with this
4    subsection before its Early Approval Adult Use Dispensing
5    Organization License at a secondary site expires, it may
6    opt to meet the requirement of this subsection by
7    completing another item from this subsection before the
8    expiration of its Early Approval Adult Use Dispensing
9    Organization License at a secondary site to avoid a
10    penalty; or
11        (5) participate in a sponsorship program for at least 2
12    years approved by the Department of Commerce and Economic
13    Opportunity in which an Early Approval Adult Use Dispensing
14    Organization License at a secondary site holder agrees to
15    provide an interest-free loan of at least $200,000 to a
16    Social Equity Applicant. The sponsor shall not take an
17    ownership stake of greater than 10% in any business
18    receiving sponsorship services to comply with this
19    subsection.
20    (e) The license fee required by paragraph (1) of subsection
21(c) of this Section is in addition to any license fee required
22for the renewal of a registered medical cannabis dispensing
23organization license.
24    (f) Applicants must submit all required information,
25including the requirements in subsection (c) of this Section,
26to the Department. Failure by an applicant to submit all

 

 

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1required information may result in the application being
2disqualified.
3    (g) If the Department receives an application that fails to
4provide the required elements contained in subsection (c), the
5Department shall issue a deficiency notice to the applicant.
6The applicant shall have 10 calendar days from the date of the
7deficiency notice to submit complete information. Applications
8that are still incomplete after this opportunity to cure may be
9disqualified.
10    (h) Once all required information and documents have been
11submitted, the Department will review the application. The
12Department may request revisions and retains final approval
13over dispensary features. Once the application is complete and
14meets the Department's approval, the Department shall
15conditionally approve the license. Final approval is
16contingent on the build-out and Department inspection.
17    (i) Upon submission of the Early Approval Adult Use
18Dispensing Organization at a secondary site application, the
19applicant shall request an inspection and the Department may
20inspect the Early Approval Adult Use Dispensing Organization's
21secondary site to confirm compliance with the application and
22this Act.
23    (j) The Department shall only issue an Early Approval Adult
24Use Dispensing Organization License at a secondary site after
25the completion of a successful inspection.
26    (k) If an applicant passes the inspection under this

 

 

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1Section, the Department shall issue the Early Approval Adult
2Use Dispensing Organization License at a secondary site within
310 business days unless:
4        (1) The licensee; principal officer, board member, or
5    person having a financial or voting interest of 5% or
6    greater in the licensee; or agent is delinquent in filing
7    any required tax returns or paying any amounts owed to the
8    State of Illinois; or
9        (2) The Secretary of Financial and Professional
10    Regulation determines there is reason, based on documented
11    compliance violations, the licensee is not entitled to an
12    Early Approval Adult Use Dispensing Organization License
13    at its secondary site.
14    (l) Once the Department has issued a license, the
15dispensing organization shall notify the Department of the
16proposed opening date.
17    (m) A registered medical cannabis dispensing organization
18that obtains an Early Approval Adult Use Dispensing
19Organization License at a secondary site may begin selling
20cannabis, cannabis-infused products, paraphernalia, and
21related items to purchasers under the rules of this Act no
22sooner than January 1, 2020.
23    (n) If there is a shortage of cannabis or cannabis-infused
24products, a dispensing organization holding both a dispensing
25organization license under the Compassionate Use of Medical
26Cannabis Pilot Program Act and this Article shall prioritize

 

 

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1serving qualifying patients and caregivers before serving
2purchasers.
3    (o) An Early Approval Adult Use Dispensing Organization
4License at a secondary site is valid until March 31, 2021. A
5dispensing organization that obtains an Early Approval Adult
6Use Dispensing Organization License at a secondary site shall
7receive written or electronic notice 90 days before the
8expiration of the license that the license will expire, and
9inform the license holder that it may renew its Early Approval
10Adult Use Dispensing Organization License at a secondary site.
11The Department shall renew an Early Approval Adult Use
12Dispensing Organization License at a secondary site within 60
13days of submission of the renewal application being deemed
14complete if:
15        (1) the dispensing organization submits an application
16    and the required nonrefundable renewal fee of $30,000, to
17    be deposited into the Cannabis Regulation Fund;
18        (2) the Department has not suspended or revoked the
19    Early Approval Adult Use Dispensing Organization License
20    or a medical cannabis dispensing organization license held
21    by the same person or entity for violating this Act or
22    rules adopted under this Act or the Compassionate Use of
23    Medical Cannabis Pilot Program Act or rules adopted under
24    that Act; and
25        (3) the dispensing organization has completed a Social
26    Equity Inclusion Plan as required by paragraph (16) of

 

 

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1    subsection (c) of this Section.     
2    (p) The Early Approval Adult Use Dispensing Organization
3Licensee at a secondary site renewed pursuant to subsection (o)
4shall receive written or electronic notice 90 days before the
5expiration of the license that the license will expire, and
6inform the license holder that it may apply for an Adult Use
7Dispensing Organization License. The Department shall grant an
8Adult Use Dispensing Organization License within 60 days of an
9application being deemed complete if the applicant has meet all
10of the criteria in Section 15-36.
11    (q) If a dispensing organization fails to submit an
12application for renewal of an Early Approval Adult Use
13Dispensing Organization License or for an Adult Use Dispensing
14Organization License before the expiration dates provided in
15subsections (o) and (p) of this Section, the dispensing
16organization shall cease serving purchasers until it receives a
17renewal or an Adult Use Dispensing Organization License.
18    (r) A dispensing organization agent who holds a valid
19dispensing organization agent identification card issued under
20the Compassionate Use of Medical Cannabis Pilot Program Act and
21is an officer, director, manager, or employee of the dispensing
22organization licensed under this Section may engage in all
23activities authorized by this Article to be performed by a
24dispensing organization agent.
25    (s) If the Department suspends or revokes the Early
26Approval Adult Use Dispensing Organization License of a

 

 

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1dispensing organization that also holds a medical cannabis
2dispensing organization license issued under the Compassionate
3Use of Medical Cannabis Pilot Program Act, the Department may
4consider the suspension or revocation as grounds to take
5disciplinary action against the medical cannabis dispensing
6organization.
7    (t) All fees or fines collected from an Early Approval
8Adult Use Dispensary Organization License at a secondary site
9holder as a result of a disciplinary action in the enforcement
10of this Act shall be deposited into the Cannabis Regulation
11Fund and be appropriated to the Department for the ordinary and
12contingent expenses of the Department in the administration and
13enforcement of this Section.
 
14    Section 15-25. Awarding of Conditional Adult Use
15Dispensing Organization Licenses prior to January 1, 2021.
16    (a) The Department shall issue up to 75 Conditional Adult
17Use Dispensing Organization Licenses before May 1, 2020.
18    (b) The Department shall make the application for a
19Conditional Adult Use Dispensing Organization License
20available no later than October 1, 2019 and shall accept
21applications no later than January 1, 2020.
22    (c) To ensure the geographic dispersion of Conditional
23Adult Use Dispensing Organization License holders, the
24following number of licenses shall be awarded in each BLS
25Region as determined by each region's percentage of the State's

 

 

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1population:
2        (1) Bloomington: 1
3        (2) Cape Girardeau: 1
4        (3) Carbondale-Marion: 1
5        (4) Champaign-Urbana: 1
6        (5) Chicago-Naperville-Elgin: 47
7        (6) Danville: 1
8        (7) Davenport-Moline-Rock Island: 1
9        (8) Decatur: 1
10        (9) Kankakee: 1
11        (10) Peoria: 3
12        (11) Rockford: 2
13        (12) St. Louis: 4
14        (13) Springfield: 1
15        (14) Northwest Illinois nonmetropolitan: 3
16        (15) West Central Illinois nonmetropolitan: 3
17        (16) East Central Illinois nonmetropolitan: 2
18        (17) South Illinois nonmetropolitan: 2
19    (d) An applicant seeking issuance of a Conditional Adult
20Use Dispensing Organization License shall submit an
21application on forms provided by the Department. An applicant
22must meet the following requirements:
23        (1) Payment of a nonrefundable application fee of
24    $5,000 for each license for which the applicant is
25    applying, which shall be deposited into the Cannabis
26    Regulation Fund;

 

 

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1        (2) Certification that the applicant will comply with
2    the requirements contained in this Act;
3        (3) The legal name of the proposed dispensing
4    organization;
5        (4) A statement that the dispensing organization
6    agrees to respond to the Department's supplemental
7    requests for information;
8        (5) From each principal officer, a statement
9    indicating whether that person:
10            (A) has previously held or currently holds an
11        ownership interest in a cannabis business
12        establishment in Illinois; or
13            (B) has held an ownership interest in a dispensing
14        organization or its equivalent in another state or
15        territory of the United States that had the dispensing
16        organization registration or license suspended,
17        revoked, placed on probationary status, or subjected
18        to other disciplinary action;
19        (6) Disclosure of whether any principal officer has
20    ever filed for bankruptcy or defaulted on spousal support
21    or child support obligation;
22        (7) A resume for each principal officer, including
23    whether that person has an academic degree, certification,
24    or relevant experience with a cannabis business
25    establishment or in a related industry;
26        (8) A description of the training and education that

 

 

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1    will be provided to dispensing organization agents;
2        (9) A copy of the proposed operating bylaws;
3        (10) A copy of the proposed business plan that complies
4    with the requirements in this Act, including, at a minimum,
5    the following:
6            (A) A description of services to be offered; and
7            (B) A description of the process of dispensing
8        cannabis;
9        (11) A copy of the proposed security plan that complies
10    with the requirements in this Article, including:
11            (A) The process or controls that will be
12        implemented to monitor the dispensary, secure the
13        premises, agents, and currency, and prevent the
14        diversion, theft, or loss of cannabis; and
15            (B) The process to ensure that access to the
16        restricted access areas is restricted to, registered
17        agents, service professionals, transporting
18        organization agents, Department inspectors, and
19        security personnel;
20        (12) A proposed inventory control plan that complies
21    with this Section;
22        (13) A proposed floor plan, a square footage estimate,
23    and a description of proposed security devices, including,
24    without limitation, cameras, motion detectors, servers,
25    video storage capabilities, and alarm service providers;
26        (14) The name, address, social security number, and

 

 

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1    date of birth of each principal officer and board member of
2    the dispensing organization; each of those individuals
3    shall be at least 21 years of age;
4        (15) Evidence of the applicant's status as a Social
5    Equity Applicant, if applicable, and whether a Social
6    Equity Applicant plans to apply for a loan or grant issued
7    by the Department of Commerce and Economic Opportunity;
8        (16) The address, telephone number, and email address
9    of the applicant's principal place of business, if
10    applicable. A post office box is not permitted;
11        (17) Written summaries of any information regarding
12    instances in which a business or not-for-profit that a
13    prospective board member previously managed or served on
14    were fined or censured, or any instances in which a
15    business or not-for-profit that a prospective board member
16    previously managed or served on had its registration
17    suspended or revoked in any administrative or judicial
18    proceeding;
19        (18) A plan for community engagement;
20        (19) Procedures to ensure accurate recordkeeping and
21    security measures that are in accordance with this Article
22    and Department rules;
23        (20) The estimated volume of cannabis it plans to store
24    at the dispensary;
25        (21) A description of the features that will provide
26    accessibility to purchasers as required by the Americans

 

 

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1    with Disabilities Act;
2        (22) A detailed description of air treatment systems
3    that will be installed to reduce odors;
4        (23) A reasonable assurance that the issuance of a
5    license will not have a detrimental impact on the community
6    in which the applicant wishes to locate;
7        (24) The dated signature of each principal officer;
8        (25) A description of the enclosed, locked facility
9    where cannabis will be stored by the dispensing
10    organization;
11        (26) Signed statements from each dispensing
12    organization agent stating that he or she will not divert
13    cannabis;
14        (27) The number of licenses it is applying for in each
15    BLS Region;
16        (28) A diversity plan that includes a narrative of at
17    least 2,500 words that establishes a goal of diversity in
18    ownership, management, employment, and contracting to
19    ensure that diverse participants and groups are afforded
20    equality of opportunity;
21        (29) A contract with a private security contractor that
22    is licensed under Section 10-5 of the Private Detective,
23    Private Alarm, Private Security, Fingerprint Vendor, and
24    Locksmith Act of 2004 in order for the dispensary to have
25    adequate security at its facility; and
26        (30) Other information deemed necessary by the

 

 

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1    Illinois Cannabis Regulation Oversight Officer to conduct
2    the disparity and availability study referenced in
3    subsection (e) of Section 5-45.
4    (e) An applicant who receives a Conditional Adult Use
5Dispensing Organization License under this Section has 180 days
6from the date of award to identify a physical location for the
7dispensing organization retail storefront. Before a
8conditional licensee receives an authorization to build out the
9dispensing organization from the Department, the Department
10shall inspect the physical space selected by the conditional
11licensee. The Department shall verify the site is suitable for
12public access, the layout promotes the safe dispensing of
13cannabis, the location is sufficient in size, power allocation,
14lighting, parking, handicapped accessible parking spaces,
15accessible entry and exits as required by the Americans with
16Disabilities Act, product handling, and storage. The applicant
17shall also provide a statement of reasonable assurance that the
18issuance of a license will not have a detrimental impact on the
19community. The applicant shall also provide evidence that the
20location is not within 1,500 feet of an existing dispensing
21organization. If an applicant is unable to find a suitable
22physical address in the opinion of the Department within 180
23days of the issuance of the Conditional Adult Use Dispensing
24Organization License, the Department may extend the period for
25finding a physical address another 180 days if the Conditional
26Adult Use Dispensing Organization License holder demonstrates

 

 

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1concrete attempts to secure a location and a hardship. If the
2Department denies the extension or the Conditional Adult Use
3Dispensing Organization License holder is unable to find a
4location or become operational within 360 days of being awarded
5a conditional license, the Department shall rescind the
6conditional license and award it to the next highest scoring
7applicant in the BLS Region for which the license was assigned,
8provided the applicant receiving the license: (i) confirms a
9continued interest in operating a dispensing organization;
10(ii) can provide evidence that the applicant continues to meet
11the financial requirements provided in subsection (c) of this
12Section; and (iii) has not otherwise become ineligible to be
13awarded a dispensing organization license. If the new awardee
14is unable to accept the Conditional Adult Use Dispensing
15Organization License, the Department shall award the
16Conditional Adult Use Dispensing Organization License to the
17next highest scoring applicant in the same manner. The new
18awardee shall be subject to the same required deadlines as
19provided in this subsection.
20    (e-5) If, within 180 days of being awarded a Conditional
21Adult Use Dispensing Organization license, a dispensing
22organization is unable to find a location within the BLS Region
23in which it was awarded a Conditional Adult Use Dispensing
24Organization license because no jurisdiction within the BLS
25Region allows for the operation of an Adult Use Dispensing
26Organization, the Department of Financial and Professional

 

 

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1Regulation may authorize the Conditional Adult Use Dispensing
2Organization License holder to transfer its license to a BLS
3Region specified by the Department.
4    (f) A dispensing organization that is awarded a Conditional
5Adult Use Dispensing Organization License pursuant to the
6criteria in Section 15-30 shall not purchase, possess, sell, or
7dispense cannabis or cannabis-infused products until the
8person has received an Adult Use Dispensing Organization
9License issued by the Department pursuant to Section 15-36 of
10this Act. The Department shall not issue an Adult Use
11Dispensing Organization License until:
12        (1) the Department has inspected the dispensary site
13    and proposed operations and verified that they are in
14    compliance with this Act and local zoning laws; and
15        (2) the Conditional Adult Use Dispensing Organization
16    License holder has paid a registration fee of $60,000, or a
17    prorated amount accounting for the difference of time
18    between when the Adult Use Dispensing Organization License
19    is issued and March 31 of the next even-numbered year.
20    (g) The Department shall conduct a background check of the
21prospective organization agents in order to carry out this
22Article. The Department of State Police shall charge the
23applicant a fee for conducting the criminal history record
24check, which shall be deposited into the State Police Services
25Fund and shall not exceed the actual cost of the record check.
26Each person applying as a dispensing organization agent shall

 

 

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1submit a full set of fingerprints to the Department of State
2Police for the purpose of obtaining a State and federal
3criminal records check. These fingerprints shall be checked
4against the fingerprint records now and hereafter, to the
5extent allowed by law, filed in the Department of State Police
6and Federal Bureau of Identification criminal history records
7databases. The Department of State Police shall furnish,
8following positive identification, all Illinois conviction
9information to the Department.
 
10    Section 15-30. Selection criteria for conditional licenses
11awarded under Section 15-25.
12    (a) Applicants for a Conditional Adult Use Dispensing
13Organization License must submit all required information,
14including the information required in Section 15-25, to the
15Department. Failure by an applicant to submit all required
16information may result in the application being disqualified.
17    (b) If the Department receives an application that fails to
18provide the required elements contained in this Section, the
19Department shall issue a deficiency notice to the applicant.
20The applicant shall have 10 calendar days from the date of the
21deficiency notice to resubmit the incomplete information.
22Applications that are still incomplete after this opportunity
23to cure will not be scored and will be disqualified.
24    (c) The Department will award up to 250 points to complete
25applications based on the sufficiency of the applicant's

 

 

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1responses to required information. Applicants will be awarded
2points based on a determination that the application
3satisfactorily includes the following elements:
4        (1) Suitability of Employee Training Plan (15 points).
5            The plan includes an employee training plan that
6        demonstrates that employees will understand the rules
7        and laws to be followed by dispensary employees, have
8        knowledge of any security measures and operating
9        procedures of the dispensary, and are able to advise
10        purchasers on how to safely consume cannabis and use
11        individual products offered by the dispensary.
12        (2) Security and Recordkeeping (65 points).
13            (A) The security plan accounts for the prevention
14        of the theft or diversion of cannabis. The security
15        plan demonstrates safety procedures for dispensary
16        agents and purchasers, and safe delivery and storage of
17        cannabis and currency. It demonstrates compliance with
18        all security requirements in this Act and rules.
19            (B) A plan for recordkeeping, tracking, and
20        monitoring inventory, quality control, and other
21        policies and procedures that will promote standard
22        recordkeeping and discourage unlawful activity. This
23        plan includes the applicant's strategy to communicate
24        with the Department and the Department of State Police
25        on the destruction and disposal of cannabis. The plan
26        must also demonstrate compliance with this Act and

 

 

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1        rules.
2            (C) The security plan shall also detail which
3        private security contractor licensed under Section
4        10-5 of the Private Detective, Private Alarm, Private
5        Security, Fingerprint Vendor, and Locksmith Act of
6        2004 the dispensary will contract with in order to
7        provide adequate security at its facility.
8        (3) Applicant's Business Plan, Financials, Operating
9    and Floor Plan (65 points).
10            (A) The business plan shall describe, at a minimum,
11        how the dispensing organization will be managed on a
12        long-term basis. This shall include a description of
13        the dispensing organization's point-of-sale system,
14        purchases and denials of sale, confidentiality, and
15        products and services to be offered. It will
16        demonstrate compliance with this Act and rules.
17            (B) The operating plan shall include, at a minimum,
18        best practices for day-to-day dispensary operation and
19        staffing. The operating plan may also include
20        information about employment practices, including
21        information about the percentage of full-time
22        employees who will be provided a living wage.
23            (C) The proposed floor plan is suitable for public
24        access, the layout promotes safe dispensing of
25        cannabis, is compliant with the Americans with
26        Disabilities Act and the Environmental Barriers Act,

 

 

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1        and facilitates safe product handling and storage.
2        (4) Knowledge and Experience (30 points).
3            (A) The applicant's principal officers must
4        demonstrate experience and qualifications in business
5        management or experience with the cannabis industry.
6        This includes ensuring optimal safety and accuracy in
7        the dispensing and sale of cannabis.
8            (B) The applicant's principal officers must
9        demonstrate knowledge of various cannabis product
10        strains or varieties and describe the types and
11        quantities of products planned to be sold. This
12        includes confirmation of whether the dispensing
13        organization plans to sell cannabis paraphernalia or
14        edibles.
15            (C) Knowledge and experience may be demonstrated
16        through experience in other comparable industries that
17        reflect on applicant's ability to operate a cannabis
18        business establishment.
19        (5) Status as a Social Equity Applicant (50 points).
20            The applicant meets the qualifications for a
21        Social Equity Applicant as set forth in this Act.
22        (6) Labor and employment practices (5 points): The
23    applicant may describe plans to provide a safe, healthy,
24    and economically beneficial working environment for its
25    agents, including, but not limited to, codes of conduct,
26    health care benefits, educational benefits, retirement

 

 

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1    benefits, living wage standards, and entering a labor peace
2    agreement with employees.
3        (7) Environmental Plan (5 points): The applicant may
4    demonstrate an environmental plan of action to minimize the
5    carbon footprint, environmental impact, and resource needs
6    for the dispensary, which may include, without limitation,
7    recycling cannabis product packaging.
8        (8) Illinois owner (5 points): The applicant is 51% or
9    more owned and controlled by an Illinois resident, who can
10    prove residency in each of the past 5 years with tax
11    records.
12        (9) Status as veteran (5 points): The applicant is 51%
13    or more controlled and owned by an individual or
14    individuals who meet the qualifications of a veteran as
15    defined by Section 45-57 of the Illinois Procurement Code.
16        (10) A diversity plan (5 points): that includes a
17    narrative of not more than 2,500 words that establishes a
18    goal of diversity in ownership, management, employment,
19    and contracting to ensure that diverse participants and
20    groups are afforded equality of opportunity.
21    (d) The Department may also award up to 2 bonus points for
22a plan to engage with the community. The applicant may
23demonstrate a desire to engage with its community by
24participating in one or more of, but not limited to, the
25following actions: (i) establishment of an incubator program
26designed to increase participation in the cannabis industry by

 

 

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1persons who would qualify as Social Equity Applicants; (ii)
2providing financial assistance to substance abuse treatment
3centers; (iii) educating children and teens about the potential
4harms of cannabis use; or (iv) other measures demonstrating a
5commitment to the applicant's community. Bonus points will only
6be awarded if the Department receives applications that receive
7an equal score for a particular region.
8    (e) The Department may verify information contained in each
9application and accompanying documentation to assess the
10applicant's veracity and fitness to operate a dispensing
11organization.
12    (f) The Department may, in its discretion, refuse to issue
13an authorization to any applicant:
14        (1) Who is unqualified to perform the duties required
15    of the applicant;
16        (2) Who fails to disclose or states falsely any
17    information called for in the application;
18        (3) Who has been found guilty of a violation of this
19    Act, or whose medical cannabis dispensing organization,
20    medical cannabis cultivation organization, or Early
21    Approval Adult Use Dispensing Organization License, or
22    Early Approval Adult Use Dispensing Organization License
23    at a secondary site, or Early Approval Cultivation Center
24    License was suspended, restricted, revoked, or denied for
25    just cause, or the applicant's cannabis business
26    establishment license was suspended, restricted, revoked,

 

 

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1    or denied in any other state; or
2        (4) Who has engaged in a pattern or practice of unfair
3    or illegal practices, methods, or activities in the conduct
4    of owning a cannabis business establishment or other
5    business.
6    (g) The Department shall deny the license if any principal
7officer, board member, or person having a financial or voting
8interest of 5% or greater in the licensee is delinquent in
9filing any required tax returns or paying any amounts owed to
10the State of Illinois.
11    (h) The Department shall verify an applicant's compliance
12with the requirements of this Article and rules before issuing
13a dispensing organization license.
14    (i) Should the applicant be awarded a license, the
15information and plans provided in the application, including
16any plans submitted for bonus points, shall become a condition
17of the Conditional Adult Use Dispensing Organization Licenses,
18except as otherwise provided by this Act or rule. Dispensing
19organizations have a duty to disclose any material changes to
20the application. The Department shall review all material
21changes disclosed by the dispensing organization, and may
22re-evaluate its prior decision regarding the awarding of a
23license, including, but not limited to, suspending or revoking
24a license. Failure to comply with the conditions or
25requirements in the application may subject the dispensing
26organization to discipline, up to and including suspension or

 

 

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1revocation of its authorization or license by the Department.
2    (j) If an applicant has not begun operating as a dispensing
3organization within one year of the issuance of the Conditional
4Adult Use Dispensing Organization License, the Department may
5revoke the Conditional Adult Use Dispensing Organization
6License and award it to the next highest scoring applicant in
7the BLS Region if a suitable applicant indicates a continued
8interest in the license or begin a new selection process to
9award a Conditional Adult Use Dispensing Organization License.
10    (k) The Department shall deny an application if granting
11that application would result in a single person or entity
12having a direct or indirect financial interest in more than 10
13Early Approval Adult Use Dispensing Organization Licenses,
14Conditional Adult Use Dispensing Organization Licenses, or
15Adult Use Dispensing Organization Licenses. Any entity that is
16awarded a license that results in a single person or entity
17having a direct or indirect financial interest in more than 10
18licenses shall forfeit the most recently issued license and
19suffer a penalty to be determined by the Department, unless the
20entity declines the license at the time it is awarded.
 
21    Section 15-35. Conditional Adult Use Dispensing
22Organization License after January 1, 2021.
23    (a) In addition to any of the licenses issued in Sections
2415-15, Section 15-20, or Section 15-25 of this Act, by December
2521, 2021, the Department shall issue up to 110 Conditional

 

 

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1Adult Use Dispensing Organization Licenses, pursuant to the
2application process adopted under this Section. Prior to
3issuing such licenses, the Department may adopt rules through
4emergency rulemaking in accordance with subsection (gg) of
5Section 5-45 of the Illinois Administrative Procedure Act. The
6General Assembly finds that the adoption of rules to regulate
7cannabis use is deemed an emergency and necessary for the
8public interest, safety, and welfare. Such rules may:
9        (1) Modify or change the BLS Regions as they apply to
10    this Article or modify or raise the number of Adult
11    Conditional Use Dispensing Organization Licenses assigned
12    to each region based on the following factors:
13            (A) Purchaser wait times;
14            (B) Travel time to the nearest dispensary for
15        potential purchasers;
16            (C) Percentage of cannabis sales occurring in
17        Illinois not in the regulated market using data from
18        the Substance Abuse and Mental Health Services
19        Administration, National Survey on Drug Use and
20        Health, Illinois Behavioral Risk Factor Surveillance
21        System, and tourism data from the Illinois Office of
22        Tourism to ascertain total cannabis consumption in
23        Illinois compared to the amount of sales in licensed
24        dispensing organizations;
25            (D) Whether there is an adequate supply of cannabis
26        and cannabis-infused products to serve registered

 

 

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1        medical cannabis patients;
2            (E) Population increases or shifts;
3            (F) Density of dispensing organizations in a
4        region;
5            (G) The Department's capacity to appropriately
6        regulate additional licenses;
7            (H) The findings and recommendations from the
8        disparity and availability study commissioned by the
9        Illinois Cannabis Regulation Oversight Officer in
10        subsection (e) of Section 5-45 to reduce or eliminate
11        any identified barriers to entry in the cannabis
12        industry; and
13            (I) Any other criteria the Department deems
14        relevant.
15        (2) Modify or change the licensing application process
16    to reduce or eliminate the barriers identified in the
17    disparity and availability study commissioned by the
18    Illinois Cannabis Regulation Oversight Officer and make
19    modifications to remedy evidence of discrimination.
20    (b) After January 1, 2022, the Department may by rule
21modify or raise the number of Adult Use Dispensing Organization
22Licenses assigned to each region, and modify or change the
23licensing application process to reduce or eliminate barriers
24based on the criteria in subsection (a). At no time shall the
25Department issue more than 500 Adult Use Dispensary
26Organization Licenses.
 

 

 

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1    Section 15-36. Adult Use Dispensing Organization License.
2    (a) A person is only eligible to receive an Adult Use
3Dispensing Organization if the person has been awarded a
4Conditional Adult Use Dispensing Organization License pursuant
5to this Act or has renewed its license pursuant to subsection
6(k) of Section 15-15 or subsection (p) of Section 15-20.
7    (b) The Department shall not issue an Adult Use Dispensing
8Organization License until:
9        (1) the Department has inspected the dispensary site
10    and proposed operations and verified that they are in
11    compliance with this Act and local zoning laws;
12        (2) the Conditional Adult Use Dispensing Organization
13    License holder has paid a registration fee of $60,000 or a
14    prorated amount accounting for the difference of time
15    between when the Adult Use Dispensing Organization License
16    is issued and March 31 of the next even-numbered year; and
17        (3) the Conditional Adult Use Dispensing Organization
18    License holder has met all the requirements in the Act and
19    rules.
20    (c) No person or entity shall hold any legal, equitable,
21ownership, or beneficial interest, directly or indirectly, of
22more than 10 dispensing organizations licensed under this
23Article. Further, no person or entity that is:
24        (1) employed by, is an agent of, or participates in the
25    management of a dispensing organization or registered

 

 

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1    medical cannabis dispensing organization;
2        (2) a principal officer of a dispensing organization or
3    registered medical cannabis dispensing organization; or
4        (3) an entity controlled by or affiliated with a
5    principal officer of a dispensing organization or
6    registered medical cannabis dispensing organization;
7shall hold any legal, equitable, ownership, or beneficial
8interest, directly or indirectly, in a dispensing organization
9that would result in such person or entity owning or
10participating in the management of more than 10 dispensing
11organizations. For the purpose of this subsection,
12participating in management may include, without limitation,
13controlling decisions regarding staffing, pricing, purchasing,
14marketing, store design, hiring, and website design.
15    (d) The Department shall deny an application if granting
16that application would result in a person or entity obtaining
17direct or indirect financial interest in more than 10 Early
18Approval Adult Use Dispensing Organization Licenses,
19Conditional Adult Use Dispensing Organization Licenses, Adult
20Use Dispensing Organization Licenses, or any combination
21thereof. If a person or entity is awarded a Conditional Adult
22Use Dispensing Organization License that would cause the person
23or entity to be in violation of this subsection, he, she, or it
24shall choose which license application it wants to abandon and
25such licenses shall become available to the next qualified
26applicant in the region in which the abandoned license was

 

 

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1awarded.
 
2    Section 15-40. Dispensing organization agent
3identification card; agent training.
4    (a) The Department shall:
5        (1) Verify the information contained in an application
6    or renewal for a dispensing organization agent
7    identification card submitted under this Article, and
8    approve or deny an application or renewal, within 30 days
9    of receiving a completed application or renewal
10    application and all supporting documentation required by
11    rule;
12        (2) Issue a dispensing organization agent
13    identification card to a qualifying agent within 15
14    business days of approving the application or renewal;
15        (3) Enter the registry identification number of the
16    dispensing organization where the agent works;
17        (4) Within one year from the effective date of this
18    Act, allow for an electronic application process and
19    provide a confirmation by electronic or other methods that
20    an application has been submitted; and
21        (5) Collect a $100 nonrefundable fee from the applicant
22    to be deposited into the Cannabis Regulation Fund.
23    (b) A dispensing agent must keep his or her identification
24card visible at all times when on the property of the
25dispensing organization.

 

 

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1    (c) The dispensing organization agent identification cards
2shall contain the following:
3        (1) The name of the cardholder;
4        (2) The date of issuance and expiration date of the
5    dispensing organization agent identification cards;
6        (3) A random 10-digit alphanumeric identification
7    number containing at least 4 numbers and at least 4 letters
8    that is unique to the cardholder; and
9        (4) A photograph of the cardholder.
10    (d) The dispensing organization agent identification cards
11shall be immediately returned to the dispensing organization
12upon termination of employment.
13    (e) The Department shall not issue an agent identification
14card if the applicant is delinquent in filing any required tax
15returns or paying any amounts owed to the State of Illinois.
16    (f) Any card lost by a dispensing organization agent shall
17be reported to the Department of State Police and the
18Department immediately upon discovery of the loss.
19    (g) An applicant shall be denied a dispensing organization
20agent identification card if he or she fails to complete the
21training provided for in this Section.
22    (h) A dispensing organization agent shall only be required
23to hold one card for the same employer regardless of what type
24of dispensing organization license the employer holds.
25    (i) Cannabis retail sales training requirements.
26        (1) Within 90 days of September 1, 2019, or 90 days of

 

 

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1    employment, whichever is later, all owners, managers,
2    employees, and agents involved in the handling or sale of
3    cannabis or cannabis-infused product employed by an adult
4    use dispensing organization or medical cannabis dispensing
5    organization as defined in Section 10 of the Compassionate
6    Use of Medical Cannabis Pilot Program Act shall attend and
7    successfully complete a Responsible Vendor Program.
8        (2) Each owner, manager, employee, and agent of an
9    adult use dispensing organization or medical cannabis
10    dispensing organization shall successfully complete the
11    program annually.
12        (3) Responsible Vendor Program Training modules shall
13    include at least 2 hours of instruction time approved by
14    the Department including:
15            (i) Health and safety concerns of cannabis use,
16        including the responsible use of cannabis, its
17        physical effects, onset of physiological effects,
18        recognizing signs of impairment, and appropriate
19        responses in the event of overconsumption.
20            (ii) Training on laws and regulations on driving
21        while under the influence.
22            (iii) Sales to minors prohibition. Training shall
23        cover all relevant Illinois laws and rules.
24            (iv) Quantity limitations on sales to purchasers.
25        Training shall cover all relevant Illinois laws and
26        rules.

 

 

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1            (v) Acceptable forms of identification. Training
2        shall include:
3                (I) How to check identification; and
4                (II) Common mistakes made in verification;
5            (vi) Safe storage of cannabis;
6            (vii) Compliance with all inventory tracking
7        system regulations;
8            (viii) Waste handling, management, and disposal;
9            (ix) Health and safety standards;
10            (x) Maintenance of records;
11            (xi) Security and surveillance requirements;
12            (xii) Permitting inspections by State and local
13        licensing and enforcement authorities;
14            (xiii) Privacy issues;
15            (xiv) Packaging and labeling requirement for sales
16        to purchasers; and
17            (xv) Other areas as determined by rule.
18    (j)BLANK.
19    (k) Upon the successful completion of the Responsible
20Vendor Program, the provider shall deliver proof of completion
21either through mail or electronic communication to the
22dispensing organization, which shall retain a copy of the
23certificate.
24    (l) The license of a dispensing organization or medical
25cannabis dispensing organization whose owners, managers,
26employees, or agents fail to comply with this Section may be

 

 

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1suspended or revoked under Section 15-145 or may face other
2disciplinary action.
3    (m) The regulation of dispensing organization and medical
4cannabis dispensing employer and employee training is an
5exclusive function of the State, and regulation by a unit of
6local government, including a home rule unit, is prohibited.
7This subsection (m) is a denial and limitation of home rule
8powers and functions under subsection (h) of Section 6 of
9Article VII of the Illinois Constitution.
10    (n) Persons seeking Department approval to offer the
11training required by paragraph (3) of subsection (i) may apply
12for such approval between August 1 and August 15 of each
13odd-numbered year in a manner prescribed by the Department.
14    (o) Persons seeking Department approval to offer the
15training required by paragraph (3) of subsection (i) shall
16submit a non-refundable application fee of $2,000 to be
17deposited into the Cannabis Regulation Fund or a fee as may be
18set by rule. Any changes made to the training module shall be
19approved by the Department.
20    (p) The Department shall not unreasonably deny approval of
21a training module that meets all the requirements of paragraph
22(3) of subsection (i). A denial of approval shall include a
23detailed description of the reasons for the denial.
24    (q) Any person approved to provide the training required by
25paragraph (3) of subsection (i) shall submit an application for
26re-approval between August 1 and August 15 of each odd-numbered

 

 

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1year and include a non-refundable application fee of $2,000 to
2be deposited into the Cannabis Regulation Fund or a fee as may
3be set by rule.
 
4    Section 15-45. Renewal.
5    (a) Adult Use Dispensing Organization Licenses shall
6expire on March 31 of even-numbered years.
7    (b) Agent identification cards shall expire one year from
8the date they are issued.
9    (c) Licensees and dispensing agents shall submit a renewal
10application as provided by the Department and pay the required
11renewal fee. The Department shall require an agent, employee,
12contracting, and subcontracting diversity report and an
13environmental impact report with its renewal application. No
14license or agent identification card shall be renewed if it is
15currently under revocation or suspension for violation of this
16Article or any rules that may be adopted under this Article or
17the licensee, principal officer, board member, person having a
18financial or voting interest of 5% or greater in the licensee,
19or agent is delinquent in filing any required tax returns or
20paying any amounts owed to the State of Illinois.
21    (d) Renewal fees are:
22        (1) For a dispensing organization, $60,000, to be
23    deposited into the Cannabis Regulation Fund.
24        (2) For an agent identification card, $100, to be
25    deposited into the Cannabis Regulation Fund.

 

 

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1    (e) If a dispensing organization fails to renew its license
2before expiration, the dispensing organization shall cease
3operations until the license is renewed.
4    (f) If a dispensing organization agent fails to renew his
5or her registration before its expiration, he or she shall
6cease to perform duties authorized by this Article at a
7dispensing organization until his or her registration is
8renewed.
9    (g) Any dispensing organization that continues to operate
10or dispensing agent that continues to perform duties authorized
11by this Article at a dispensing organization that fails to
12renew its license is subject to penalty as provided in this
13Article, or any rules that may be adopted pursuant to this
14Article.
15    (h) The Department shall not renew a license if the
16applicant is delinquent in filing any required tax returns or
17paying any amounts owed to the State of Illinois. The
18Department shall not renew a dispensing agent identification
19card if the applicant is delinquent in filing any required tax
20returns or paying any amounts owed to the State of Illinois.
 
21    Section 15-50. Disclosure of ownership and control.
22    (a) Each dispensing organization applicant and licensee
23shall file and maintain a Table of Organization, Ownership and
24Control with the Department. The Table of Organization,
25Ownership and Control shall contain the information required by

 

 

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1this Section in sufficient detail to identify all owners,
2directors, and principal officers, and the title of each
3principal officer or business entity that, through direct or
4indirect means, manages, owns, or controls the applicant or
5licensee.
6    (b) The Table of Organization, Ownership and Control shall
7identify the following information:
8        (1) The management structure, ownership, and control
9    of the applicant or license holder including the name of
10    each principal officer or business entity, the office or
11    position held, and the percentage ownership interest, if
12    any. If the business entity has a parent company, the name
13    of each owner, board member, and officer of the parent
14    company and his or her percentage ownership interest in the
15    parent company and the dispensing organization.
16        (2) If the applicant or licensee is a business entity
17    with publicly traded stock, the identification of
18    ownership shall be provided as required in subsection (c).
19    (c) If a business entity identified in subsection (b) is a
20publicly traded company, the following information shall be
21provided in the Table of Organization, Ownership and Control:
22        (1) The name and percentage of ownership interest of
23    each individual or business entity with ownership of more
24    than 5% of the voting shares of the entity, to the extent
25    such information is known or contained in 13D or 13G
26    Securities and Exchange Commission filings.

 

 

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1        (2) To the extent known, the names and percentage of
2    interest of ownership of persons who are relatives of one
3    another and who together exercise control over or own more
4    than 10% of the voting shares of the entity.
5    (d) A dispensing organization with a parent company or
6companies, or partially owned or controlled by another entity
7must disclose to the Department the relationship and all
8owners, board members, officers, or individuals with control or
9management of those entities. A dispensing organization shall
10not shield its ownership or control from the Department.
11    (e) All principal officers must submit a complete online
12application with the Department within 14 days of the
13dispensing organization being licensed by the Department or
14within 14 days of Department notice of approval as a new
15principal officer.
16    (f) A principal officer may not allow his or her
17registration to expire.
18    (g) A dispensing organization separating with a principal
19officer must do so under this Act. The principal officer must
20communicate the separation to the Department within 5 business
21days.
22    (h) A principal officer not in compliance with the
23requirements of this Act shall be removed from his or her
24position with the dispensing organization or shall otherwise
25terminate his or her affiliation. Failure to do so may subject
26the dispensing organization to discipline, suspension, or

 

 

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1revocation of its license by the Department.
2    (i) It is the responsibility of the dispensing organization
3and its principal officers to promptly notify the Department of
4any change of the principal place of business address, hours of
5operation, change in ownership or control, or a change of the
6dispensing organization's primary or secondary contact
7information. Any changes must be made to the Department in
8writing.
 
9    Section 15-55. Financial responsibility. Evidence of
10financial responsibility is a requirement for the issuance,
11maintenance, or reactivation of a license under this Article.
12Evidence of financial responsibility shall be used to guarantee
13that the dispensing organization timely and successfully
14completes dispensary construction, operates in a manner that
15provides an uninterrupted supply of cannabis, faithfully pays
16registration renewal fees, keeps accurate books and records,
17makes regularly required reports, complies with State tax
18requirements, and conducts the dispensing organization in
19conformity with this Act and rules. Evidence of financial
20responsibility shall be provided by one of the following:
21        (1) Establishing and maintaining an escrow or surety
22    account in a financial institution in the amount of
23    $50,000, with escrow terms, approved by the Department,
24    that it shall be payable to the Department in the event of
25    circumstances outlined in this Act and rules.

 

 

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1            (A) A financial institution may not return money in
2        an escrow or surety account to the dispensing
3        organization that established the account or a
4        representative of the organization unless the
5        organization or representative presents a statement
6        issued by the Department indicating that the account
7        may be released.
8            (B) The escrow or surety account shall not be
9        canceled on less than 30 days' notice in writing to the
10        Department, unless otherwise approved by the
11        Department. If an escrow or surety account is canceled
12        and the registrant fails to secure a new account with
13        the required amount on or before the effective date of
14        cancellation, the registrant's registration may be
15        revoked. The total and aggregate liability of the
16        surety on the bond is limited to the amount specified
17        in the escrow or surety account.
18        (2) Providing a surety bond in the amount of $50,000,
19    naming the dispensing organization as principal of the
20    bond, with terms, approved by the Department, that the bond
21    defaults to the Department in the event of circumstances
22    outlined in this Act and rules. Bond terms shall include:
23            (A) The business name and registration number on
24        the bond must correspond exactly with the business name
25        and registration number in the Department's records.
26            (B) The bond must be written on a form approved by

 

 

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1        the Department.
2            (C) A copy of the bond must be received by the
3        Department within 90 days after the effective date.
4            (D) The bond shall not be canceled by a surety on
5        less than 30 days' notice in writing to the Department.
6        If a bond is canceled and the registrant fails to file
7        a new bond with the Department in the required amount
8        on or before the effective date of cancellation, the
9        registrant's registration may be revoked. The total
10        and aggregate liability of the surety on the bond is
11        limited to the amount specified in the bond.
 
12    Section 15-60. Changes to a dispensing organization.
13    (a) A license shall be issued to the specific dispensing
14organization identified on the application and for the specific
15location proposed. The license is valid only as designated on
16the license and for the location for which it is issued.
17    (b) A dispensing organization may only add principal
18officers after being approved by the Department.
19    (c) A dispensing organization shall provide written notice
20of the removal of a principal officer within 5 business days
21after removal. The notice shall include the written agreement
22of the principal officer being removed, unless otherwise
23approved by the Department, and allocation of ownership shares
24after removal in an updated ownership chart.
25    (d) A dispensing organization shall provide a written

 

 

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1request to the Department for the addition of principal
2officers. A dispensing organization shall submit proposed
3principal officer applications on forms approved by the
4Department.
5    (e) All proposed new principal officers shall be subject to
6the requirements of this Act, this Article, and any rules that
7may be adopted pursuant to this Act.
8    (f) The Department may prohibit the addition of a principal
9officer to a dispensing organization for failure to comply with
10this Act, this Article, and any rules that may be adopted
11pursuant to this Act.
12    (g) A dispensing organization may not assign a license.
13    (h) A dispensing organization may not transfer a license
14without prior Department approval. Such approval may be
15withheld if the person to whom the license is being transferred
16does not commit to the same or a similar community engagement
17plan provided as part of the dispensing organization's
18application under paragraph (18) of subsection (d) of Section
1915-25, and such transferee's license shall be conditional upon
20that commitment.
21    (i) With the addition or removal of principal officers, the
22Department will review the ownership structure to determine
23whether the change in ownership has had the effect of a
24transfer of the license. The dispensing organization shall
25supply all ownership documents requested by the Department.
26    (j) A dispensing organization may apply to the Department

 

 

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1to approve a sale of the dispensing organization. A request to
2sell the dispensing organization must be on application forms
3provided by the Department. A request for an approval to sell a
4dispensing organization must comply with the following:
5        (1) New application materials shall comply with this
6    Act and any rules that may be adopted pursuant to this Act;
7        (2) Application materials shall include a change of
8    ownership fee of $5,000 to be deposited into the Cannabis
9    Regulation Fund;
10        (3) The application materials shall provide proof that
11    the transfer of ownership will not have the effect of
12    granting any of the owners or principal officers direct or
13    indirect ownership or control of more than 10 adult use
14    dispensing organization licenses;
15        (4) New principal officers shall each complete the
16    proposed new principal officer application;
17        (5) If the Department approves the application
18    materials and proposed new principal officer applications,
19    it will perform an inspection before approving the sale and
20    issuing the dispensing organization license;
21        (6) If a new license is approved, the Department will
22    issue a new license number and certificate to the new
23    dispensing organization.
24    (k) The dispensing organization shall provide the
25Department with the personal information for all new dispensing
26organizations agents as required in this Article and all new

 

 

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1dispensing organization agents shall be subject to the
2requirements of this Article. A dispensing organization agent
3must obtain an agent identification card from the Department
4before beginning work at a dispensary.
5    (l) Before remodeling, expansion, reduction, or other
6physical, noncosmetic alteration of a dispensary, the
7dispensing organization must notify the Department and confirm
8the alterations are in compliance with this Act and any rules
9that may be adopted pursuant to this Act.
 
10    Section 15-65. Administration.
11    (a) A dispensing organization shall establish, maintain,
12and comply with written policies and procedures as submitted in
13the Business, Financial and Operating plan as required in this
14Article or by rules established by the Department, and approved
15by the Department, for the security, storage, inventory, and
16distribution of cannabis. These policies and procedures shall
17include methods for identifying, recording, and reporting
18diversion, theft, or loss, and for correcting errors and
19inaccuracies in inventories. At a minimum, dispensing
20organizations shall ensure the written policies and procedures
21provide for the following:
22        (1) Mandatory and voluntary recalls of cannabis
23    products. The policies shall be adequate to deal with
24    recalls due to any action initiated at the request of the
25    Department and any voluntary action by the dispensing

 

 

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1    organization to remove defective or potentially defective
2    cannabis from the market or any action undertaken to
3    promote public health and safety, including:
4            (i) A mechanism reasonably calculated to contact
5        purchasers who have, or likely have, obtained the
6        product from the dispensary, including information on
7        the policy for return of the recalled product;
8            (ii) A mechanism to identify and contact the adult
9        use cultivation center, craft grower, or infuser that
10        manufactured the cannabis;
11            (iii) Policies for communicating with the
12        Department, the Department of Agriculture, and the
13        Department of Public Health within 24 hours of
14        discovering defective or potentially defective
15        cannabis; and
16            (iv) Policies for destruction of any recalled
17        cannabis product;
18        (2) Responses to local, State, or national
19    emergencies, including natural disasters, that affect the
20    security or operation of a dispensary;
21        (3) Segregation and destruction of outdated, damaged,
22    deteriorated, misbranded, or adulterated cannabis. This
23    procedure shall provide for written documentation of the
24    cannabis disposition;
25        (4) Ensure the oldest stock of a cannabis product is
26    distributed first. The procedure may permit deviation from

 

 

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1    this requirement, if such deviation is temporary and
2    appropriate;
3        (5) Training of dispensing organization agents in the
4    provisions of this Act and rules, to effectively operate
5    the point-of-sale system and the State's verification
6    system, proper inventory handling and tracking, specific
7    uses of cannabis or cannabis-infused products, instruction
8    regarding regulatory inspection preparedness and law
9    enforcement interaction, awareness of the legal
10    requirements for maintaining status as an agent, and other
11    topics as specified by the dispensing organization or the
12    Department. The dispensing organization shall maintain
13    evidence of all training provided to each agent in its
14    files that is subject to inspection and audit by the
15    Department. The dispensing organization shall ensure
16    agents receive a minimum of 8 hours of training subject to
17    the requirements in subsection (i) of Section 15-40
18    annually, unless otherwise approved by the Department;
19        (6) Maintenance of business records consistent with
20    industry standards, including bylaws, consents, manual or
21    computerized records of assets and liabilities, audits,
22    monetary transactions, journals, ledgers, and supporting
23    documents, including agreements, checks, invoices,
24    receipts, and vouchers. Records shall be maintained in a
25    manner consistent with this Act and shall be retained for 5
26    years;

 

 

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1        (7) Inventory control, including:
2            (i) Tracking purchases and denials of sale;
3            (ii) Disposal of unusable or damaged cannabis as
4        required by this Act and rules; and
5        (8) Purchaser education and support, including:
6            (i) Whether possession of cannabis is illegal
7        under federal law;
8            (ii) Current educational information issued by the
9        Department of Public Health about the health risks
10        associated with the use or abuse of cannabis;
11            (iii) Information about possible side effects;
12            (iv) Prohibition on smoking cannabis in public
13        places; and
14            (v) Offering any other appropriate purchaser
15        education or support materials.
16    (b) BLANK.
17    (c) A dispensing organization shall maintain copies of the
18policies and procedures on the dispensary premises and provide
19copies to the Department upon request. The dispensing
20organization shall review the dispensing organization policies
21and procedures at least once every 12 months from the issue
22date of the license and update as needed due to changes in
23industry standards or as requested by the Department.
24    (d) A dispensing organization shall ensure that each
25principal officer and each dispensing organization agent has a
26current agent identification card in the agent's immediate

 

 

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1possession when the agent is at the dispensary.
2    (e) A dispensing organization shall provide prompt written
3notice to the Department, including the date of the event, when
4a dispensing organization agent no longer is employed by the
5dispensing organization.
6    (f) A dispensing organization shall promptly document and
7report any loss or theft of cannabis from the dispensary to the
8Department of State Police and the Department. It is the duty
9of any dispensing organization agent who becomes aware of the
10loss or theft to report it as provided in this Article.
11    (g) A dispensing organization shall post the following
12information in a conspicuous location in an area of the
13dispensary accessible to consumers:
14        (1) The dispensing organization's license;
15        (2) The hours of operation.
16    (h) Signage that shall be posted inside the premises.
17        (1) All dispensing organizations must display a
18    placard that states the following: "Cannabis consumption
19    can impair cognition and driving, is for adult use only,
20    may be habit forming, and should not be used by pregnant or
21    breastfeeding women.".
22        (2) Any dispensing organization that sells edible
23    cannabis-infused products must display a placard that
24    states the following:
25            (A) "Edible cannabis-infused products were
26        produced in a kitchen that may also process common food

 

 

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1        allergens."; and
2            (B) "The effects of cannabis products can vary from
3        person to person, and it can take as long as two hours
4        to feel the effects of some cannabis-infused products.
5        Carefully review the portion size information and
6        warnings contained on the product packaging before
7        consuming.".
8        (3) All of the required signage in this subsection (h)
9    shall be no smaller than 24 inches tall by 36 inches wide,
10    with typed letters no smaller than 2 inches. The signage
11    shall be clearly visible and readable by customers. The
12    signage shall be placed in the area where cannabis and
13    cannabis-infused products are sold and may be translated
14    into additional languages as needed. The Department may
15    require a dispensary to display the required signage in a
16    different language, other than English, if the Secretary
17    deems it necessary.
18    (i) A dispensing organization shall prominently post
19notices inside the dispensing organization that state
20activities that are strictly prohibited and punishable by law,
21including, but not limited to:
22        (1) No minors permitted on the premises unless the
23    minor is a minor qualifying patient under the Compassionate
24    Use of Medical Cannabis Pilot Program Act;
25        (2) Distribution to persons under the age of 21 is
26    prohibited;

 

 

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1        (3) Transportation of cannabis or cannabis products
2    across state lines is prohibited.
 
3    Section 15-70. Operational requirements; prohibitions.
4    (a) A dispensing organization shall operate in accordance
5with the representations made in its application and license
6materials. It shall be in compliance with this Act and rules.
7    (b) A dispensing organization must include the legal name
8of the dispensary on the packaging of any cannabis product it
9sells.
10    (c) All cannabis, cannabis-infused products, and cannabis
11seeds must be obtained from an Illinois registered adult use
12cultivation center, craft grower, infuser, or another
13dispensary.
14    (d) Dispensing organizations are prohibited from selling
15any product containing alcohol except tinctures, which must be
16limited to containers that are no larger than 100 milliliters.
17    (e) A dispensing organization shall inspect and count
18product received by the adult use cultivation center before
19dispensing it.
20    (f) A dispensing organization may only accept cannabis
21deliveries into a restricted access area. Deliveries may not be
22accepted through the public or limited access areas unless
23otherwise approved by the Department.
24    (g) A dispensing organization shall maintain compliance
25with State and local building, fire, and zoning requirements or

 

 

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1regulations.
2    (h) A dispensing organization shall submit a list to the
3Department of the names of all service professionals that will
4work at the dispensary. The list shall include a description of
5the type of business or service provided. Changes to the
6service professional list shall be promptly provided. No
7service professional shall work in the dispensary until the
8name is provided to the Department on the service professional
9list.
10    (i) A dispensing organization's license allows for a
11dispensary to be operated only at a single location.
12    (j) A dispensary may operate between 6 a.m. and 10 p.m.
13local time.
14    (k) A dispensing organization must keep all lighting
15outside and inside the dispensary in good working order and
16wattage sufficient for security cameras.
17    (l) A dispensing organization shall ensure that any
18building or equipment used by a dispensing organization for the
19storage or sale of cannabis is maintained in a clean and
20sanitary condition.
21    (m) The dispensary shall be free from infestation by
22insects, rodents, or pests.
23    (n) A dispensing organization shall not:
24        (1) Produce or manufacture cannabis;
25        (2) Accept a cannabis product from an adult use
26    cultivation center, craft grower, infuser, dispensing

 

 

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1    organization, or transporting organization unless it is
2    pre-packaged and labeled in accordance with this Act and
3    any rules that may be adopted pursuant to this Act;
4        (3) Obtain cannabis or cannabis-infused products from
5    outside the State of Illinois;
6        (4) Sell cannabis or cannabis-infused products to a
7    purchaser unless the dispensary organization is licensed
8    under the Compassionate Use of Medical Cannabis Pilot
9    Program, and the individual is registered under the
10    Compassionate Use of Medical Cannabis Pilot Program or the
11    purchaser has been verified to be over the age of 21;
12        (5) Enter into an exclusive agreement with any adult
13    use cultivation center, craft grower, or infuser.
14    Dispensaries shall provide consumers an assortment of
15    products from various cannabis business establishment
16    licensees such that the inventory available for sale at any
17    dispensary from any single cultivation center, craft
18    grower, processor, or infuser entity shall not be more than
19    40% of the total inventory available for sale. For the
20    purpose of this subsection, a cultivation center, craft
21    grower, processor, or infuser shall be considered part of
22    the same entity if the licensees share at least one
23    principal officer. The Department may request that a
24    dispensary diversify its products as needed or otherwise
25    discipline a dispensing organization for violating this
26    requirement;

 

 

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1        (6) Refuse to conduct business with an adult use
2    cultivation center, craft grower, transporting
3    organization, or infuser that has the ability to properly
4    deliver the product and is permitted by the Department of
5    Agriculture, on the same terms as other adult use
6    cultivation centers, craft growers, infusers, or
7    transporters with whom it is dealing;
8        (7) Operate drive-through windows;
9        (8) Allow for the dispensing of cannabis or
10    cannabis-infused products in vending machines;
11        (9) Transport cannabis to residences or other
12    locations where purchasers may be for delivery;
13        (10) Enter into agreements to allow persons who are not
14    dispensing organization agents to deliver cannabis or to
15    transport cannabis to purchasers.
16        (11) Operate a dispensary if its video surveillance
17    equipment is inoperative;
18        (12) Operate a dispensary if the point-of-sale
19    equipment is inoperative;
20        (13) Operate a dispensary if the State's cannabis
21    electronic verification system is inoperative;
22        (14) Have fewer than 2 people working at the dispensary
23    at any time while the dispensary is open;
24        (15) Be located within 1,500 feet of the property line
25    of a pre-existing dispensing organization;
26        (16) Sell clones or any other live plant material;

 

 

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1        (17) Sell cannabis, cannabis concentrate, or
2    cannabis-infused products in combination or bundled with
3    each other or any other items for one price, and each item
4    of cannabis, concentrate, or cannabis-infused product must
5    be separately identified by quantity and price on the
6    receipt;
7        (18) Violate any other requirements or prohibitions
8    set by Department rules.
9    (o) It is unlawful for any person having an Early Approval
10Adult Use Cannabis Dispensing Organization License, a
11Conditional Adult Use Cannabis Dispensing Organization, an
12Adult Use Dispensing Organization License, or a medical
13cannabis dispensing organization license issued under the
14Compassionate Use of Medical Cannabis Pilot Program or any
15officer, associate, member, representative, or agent of such
16licensee to accept, receive, or borrow money or anything else
17of value or accept or receive credit (other than merchandising
18credit in the ordinary course of business for a period not to
19exceed 30 days) directly or indirectly from any adult use
20cultivation center, craft grower, infuser, or transporting
21organization. This includes anything received or borrowed or
22from any stockholders, officers, agents, or persons connected
23with an adult use cultivation center, craft grower, infuser, or
24transporting organization. This also excludes any received or
25borrowed in exchange for preferential placement by the
26dispensing organization, including preferential placement on

 

 

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1the dispensing organization's shelves, display cases, or
2website.
3    (p) It is unlawful for any person having an Early Approval
4Adult Use Cannabis Dispensing Organization License, a
5Conditional Adult Use Cannabis Dispensing Organization, an
6Adult Use Dispensing Organization License, or a medical
7cannabis dispensing organization license issued under the
8Compassionate Use of Medical Cannabis Pilot Program to enter
9into any contract with any person licensed to cultivate,
10process, or transport cannabis whereby such dispensary
11organization agrees not to sell any cannabis cultivated,
12processed, transported, manufactured, or distributed by any
13other cultivator, transporter, or infuser, and any provision in
14any contract violative of this Section shall render the whole
15of such contract void and no action shall be brought thereon in
16any court.
 
17    Section 15-75. Inventory control system.
18    (a) A dispensing organization agent-in-charge shall have
19primary oversight of the dispensing organization's cannabis
20inventory verification system, and its point-of-sale system.
21The inventory point-of-sale system shall be real-time,
22web-based, and accessible by the Department at any time. The
23point-of-sale system shall track, at a minimum the date of
24sale, amount, price, and currency.
25    (b) A dispensing organization shall establish an account

 

 

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1with the State's verification system that documents:
2        (1) Each sales transaction at the time of sale and each
3    day's beginning inventory, acquisitions, sales, disposal,
4    and ending inventory.
5        (2) Acquisition of cannabis and cannabis-infused
6    products from a licensed adult use cultivation center,
7    craft grower, infuser, or transporter, including:
8            (i) A description of the products, including the
9        quantity, strain, variety, and batch number of each
10        product received;
11            (ii) The name and registry identification number
12        of the licensed adult use cultivation center, craft
13        grower, or infuser providing the cannabis and
14        cannabis-infused products;
15            (iii) The name and registry identification number
16        of the licensed adult use cultivation center, craft
17        grower, infuser, or transportation agent delivering
18        the cannabis;
19            (iv) The name and registry identification number
20        of the dispensing organization agent receiving the
21        cannabis; and
22            (v) The date of acquisition.
23        (3) The disposal of cannabis, including:
24            (i) A description of the products, including the
25        quantity, strain, variety, batch number, and reason
26        for the cannabis being disposed;

 

 

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1            (ii) The method of disposal; and
2            (iii) The date and time of disposal.
3    (c) Upon cannabis delivery, a dispensing organization
4shall confirm the product's name, strain name, weight, and
5identification number on the manifest matches the information
6on the cannabis product label and package. The product name
7listed and the weight listed in the State's verification system
8shall match the product packaging.
9    (d) The agent-in-charge shall conduct daily inventory
10reconciliation documenting and balancing cannabis inventory by
11confirming the State's verification system matches the
12dispensing organization's point-of-sale system and the amount
13of physical product at the dispensary.
14        (1) A dispensing organization must receive Department
15    approval before completing an inventory adjustment. It
16    shall provide a detailed reason for the adjustment.
17    Inventory adjustment documentation shall be kept at the
18    dispensary for 2 years from the date performed.
19        (2) If the dispensing organization identifies an
20    imbalance in the amount of cannabis after the daily
21    inventory reconciliation due to mistake, the dispensing
22    organization shall determine how the imbalance occurred
23    and immediately upon discovery take and document
24    corrective action. If the dispensing organization cannot
25    identify the reason for the mistake within 2 calendar days
26    after first discovery, it shall inform the Department

 

 

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1    immediately in writing of the imbalance and the corrective
2    action taken to date. The dispensing organization shall
3    work diligently to determine the reason for the mistake.
4        (3) If the dispensing organization identifies an
5    imbalance in the amount of cannabis after the daily
6    inventory reconciliation or through other means due to
7    theft, criminal activity, or suspected criminal activity,
8    the dispensing organization shall immediately determine
9    how the reduction occurred and take and document corrective
10    action. Within 24 hours after the first discovery of the
11    reduction due to theft, criminal activity, or suspected
12    criminal activity, the dispensing organization shall
13    inform the Department and the Department of State Police in
14    writing.
15        (4) The dispensing organization shall file an annual
16    compilation report with the Department, including a
17    financial statement that shall include, but not be limited
18    to, an income statement, balance sheet, profit and loss
19    statement, statement of cash flow, wholesale cost and
20    sales, and any other documentation requested by the
21    Department in writing. The financial statement shall
22    include any other information the Department deems
23    necessary in order to effectively administer this Act and
24    all rules, orders, and final decisions promulgated under
25    this Act. Statements required by this Section shall be
26    filed with the Department within 60 days after the end of

 

 

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1    the calendar year. The compilation report shall include a
2    letter authored by a licensed certified public accountant
3    that it has been reviewed and is accurate based on the
4    information provided. The dispensing organization,
5    financial statement, and accompanying documents are not
6    required to be audited unless specifically requested by the
7    Department.
8    (e) A dispensing organization shall:
9        (1) Maintain the documentation required in this
10    Section in a secure locked location at the dispensing
11    organization for 5 years from the date on the document;
12        (2) Provide any documentation required to be
13    maintained in this Section to the Department for review
14    upon request; and
15        (3) If maintaining a bank account, retain for a period
16    of 5 years a record of each deposit or withdrawal from the
17    account.
18    (f) If a dispensing organization chooses to have a return
19policy for cannabis and cannabis products, the dispensing
20organization shall seek prior approval from the Department.
 
21    Section 15-80. Storage requirements.
22    (a) Authorized on-premises storage. A dispensing
23organization must store inventory on its premises. All
24inventory stored on the premises must be secured in a
25restricted access area and tracked consistently with the

 

 

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1inventory tracking rules.
2    (b) A dispensary shall be of suitable size and construction
3to facilitate cleaning, maintenance, and proper operations.
4    (c) A dispensary shall maintain adequate lighting,
5ventilation, temperature, humidity control, and equipment.
6    (d) Containers storing cannabis that have been tampered
7with, damaged, or opened shall be labeled with the date opened
8and quarantined from other cannabis products in the vault until
9they are disposed.
10    (e) Cannabis that was tampered with, expired, or damaged
11shall not be stored at the premises for more than 7 calendar
12days.
13    (f) Cannabis samples shall be in a sealed container.
14Samples shall be maintained in the restricted access area.
15    (g) The dispensary storage areas shall be maintained in
16accordance with the security requirements in this Act and
17rules.
18    (h) Cannabis must be stored at appropriate temperatures and
19under appropriate conditions to help ensure that its packaging,
20strength, quality, and purity are not adversely affected.
 
21    Section 15-85. Dispensing cannabis.
22    (a) Before a dispensing organization agent dispenses
23cannabis to a purchaser, the agent shall:
24        (1) Verify the age of the purchaser by checking a
25    government-issued identification card by use of an

 

 

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1    electronic reader or electronic scanning device to scan a
2    purchaser's government-issued identification, if
3    applicable, to determine the purchaser's age and the
4    validity of the identification;
5        (2) Verify the validity of the government-issued
6    identification card;
7        (3) Offer any appropriate purchaser education or
8    support materials;
9        (4) Enter the following information into the State's
10    cannabis electronic verification system:
11            (i) The dispensing organization agent's
12        identification number;
13            (ii) The dispensing organization's identification
14        number;
15            (iii) The amount, type (including strain, if
16        applicable) of cannabis or cannabis-infused product
17        dispensed;
18            (iv) The date and time the cannabis was dispensed.
19    (b) A dispensing organization shall refuse to sell cannabis
20or cannabis-infused products to any person unless the person
21produces a valid identification showing that the person is 21
22years of age or older. A medical cannabis dispensing
23organization may sell cannabis or cannabis-infused products to
24a person who is under 21 years of age if the sale complies with
25the provisions of the Compassionate Use of Medical Cannabis
26Pilot Program Act and rules.

 

 

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1    (c) For the purposes of this Section, valid identification
2must:
3        (1) Be valid and unexpired;
4        (2) Contain a photograph and the date of birth of the
5    person.
 
6    Section 15-90. Destruction and disposal of cannabis.
7    (a) Cannabis and cannabis-infused products must be
8destroyed by rendering them unusable using methods approved by
9the Department that comply with this Act and rules.
10    (b) Cannabis waste rendered unusable must be promptly
11disposed according to this Act and rules. Disposal of the
12cannabis waste rendered unusable may be delivered to a
13permitted solid waste facility for final disposition.
14Acceptable permitted solid waste facilities include, but are
15not limited to:
16        (1) Compostable mixed waste: Compost, anaerobic
17    digester, or other facility with approval of the
18    jurisdictional health department.
19        (2) Noncompostable mixed waste: Landfill, incinerator,
20    or other facility with approval of the jurisdictional
21    health department.
22    (c) All waste and unusable product shall be weighed,
23recorded, and entered into the inventory system before
24rendering it unusable. All waste and unusable cannabis
25concentrates and cannabis-infused products shall be recorded

 

 

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1and entered into the inventory system before rendering it
2unusable. Verification of this event shall be performed by an
3agent-in-charge and conducted in an area with video
4surveillance.
5    (d) Electronic documentation of destruction and disposal
6shall be maintained for a period of at least 5 years.
 
7    Section 15-95. Agent-in-charge.
8    (a) Every dispensing organization shall designate, at a
9minimum, one agent-in-charge for each licensed dispensary. The
10designated agent-in-charge must hold a dispensing organization
11agent identification card. Maintaining an agent-in-charge is a
12continuing requirement for the license, except as provided in
13subsection (f).
14    (b) The agent-in-charge shall be a principal officer or a
15full-time agent of the dispensing organization and shall manage
16the dispensary. Managing the dispensary includes, but is not
17limited to, responsibility for opening and closing the
18dispensary, delivery acceptance, oversight of sales and
19dispensing organization agents, recordkeeping, inventory,
20dispensing organization agent training, and compliance with
21this Act and rules. Participation in affairs also includes the
22responsibility for maintaining all files subject to audit or
23inspection by the Department at the dispensary.
24    (c) The agent-in-charge is responsible for promptly
25notifying the Department of any change of information required

 

 

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1to be reported to the Department.
2    (d) In determining whether an agent-in-charge manages the
3dispensary, the Department may consider the responsibilities
4identified in this Section, the number of dispensing
5organization agents under the supervision of the
6agent-in-charge, and the employment relationship between the
7agent-in-charge and the dispensing organization, including the
8existence of a contract for employment and any other relevant
9fact or circumstance.
10    (e) The agent-in-charge is responsible for notifying the
11Department of a change in the employment status of all
12dispensing organization agents within 5 business days after the
13change, including notice to the Department if the termination
14of an agent was for diversion of product or theft of currency.
15    (f) In the event of the separation of an agent-in-charge
16due to death, incapacity, termination, or any other reason and
17if the dispensary does not have an active agent-in-charge, the
18dispensing organization shall immediately contact the
19Department and request a temporary certificate of authority
20allowing the continuing operation. The request shall include
21the name of an interim agent-in-charge until a replacement is
22identified, or shall include the name of the replacement. The
23Department shall issue the temporary certificate of authority
24promptly after it approves the request. If a dispensing
25organization fails to promptly request a temporary certificate
26of authority after the separation of the agent-in-charge, its

 

 

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1registration shall cease until the Department approves the
2temporary certificate of authority or registers a new
3agent-in-charge. No temporary certificate of authority shall
4be valid for more than 90 days. The succeeding agent-in-charge
5shall register with the Department in compliance with this
6Article. Once the permanent succeeding agent-in-charge is
7registered with the Department, the temporary certificate of
8authority is void. No temporary certificate of authority shall
9be issued for the separation of an agent-in-charge due to
10disciplinary action by the Department related to his or her
11conduct on behalf of the dispensing organization.
12    (g) The dispensing organization agent-in-charge
13registration shall expire one year from the date it is issued.
14The agent-in-charge's registration shall be renewed annually.
15The Department shall review the dispensing organization's
16compliance history when determining whether to grant the
17request to renew.
18    (h) Upon termination of an agent-in-charge's employment,
19the dispensing organization shall immediately reclaim the
20dispensing agent identification card. The dispensing
21organization shall promptly return the identification card to
22the Department.
23    (i) The Department may deny an application or renewal or
24discipline or revoke an agent-in-charge identification card
25for any of the following reasons:
26        (1) Submission of misleading, incorrect, false, or

 

 

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1    fraudulent information in the application or renewal
2    application;
3        (2) Violation of the requirements of this Act or rules;
4        (3) Fraudulent use of the agent-in-charge
5    identification card;
6        (4) Selling, distributing, transferring in any manner,
7    or giving cannabis to any unauthorized person;
8        (5) Theft of cannabis, currency, or any other items
9    from a dispensary.
10        (6) Tampering with, falsifying, altering, modifying,
11    or duplicating an agent-in-charge identification card;
12        (7) Tampering with, falsifying, altering, or modifying
13    the surveillance video footage, point-of-sale system, or
14    the State's verification system;
15        (8) Failure to notify the Department immediately upon
16    discovery that the agent-in-charge identification card has
17    been lost, stolen, or destroyed;
18        (9) Failure to notify the Department within 5 business
19    days after a change in the information provided in the
20    application for an agent-in-charge identification card;
21        (10) Conviction of a felony offense in accordance with
22    Sections 2105-131, 2105-135, and 2105-205 of the
23    Department of Professional Regulation Law of the Civil
24    Administrative Code of Illinois or any incident listed in
25    this Act or rules following the issuance of an
26    agent-in-charge identification card;

 

 

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1        (11) Dispensing to purchasers in amounts above the
2    limits provided in this Act; or
3        (12) Delinquency in filing any required tax returns or
4    paying any amounts owed to the State of Illinois
 
5    Section 15-100. Security.
6    (a) A dispensing organization shall implement security
7measures to deter and prevent entry into and theft of cannabis
8or currency.
9    (b) A dispensing organization shall submit any changes to
10the floor plan or security plan to the Department for
11pre-approval. All cannabis shall be maintained and stored in a
12restricted access area during construction.
13    (c) The dispensing organization shall implement security
14measures to protect the premises, purchasers, and dispensing
15organization agents including, but not limited to the
16following:
17        (1) Establish a locked door or barrier between the
18    facility's entrance and the limited access area;
19        (2) Prevent individuals from remaining on the premises
20    if they are not engaging in activity permitted by this Act
21    or rules;
22        (3) Develop a policy that addresses the maximum
23    capacity and purchaser flow in the waiting rooms and
24    limited access areas;
25        (4) Dispose of cannabis in accordance with this Act and

 

 

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1    rules;
2        (5) During hours of operation, store and dispense all
3    cannabis from the restricted access area. During
4    operational hours, cannabis shall be stored in an enclosed
5    locked room or cabinet and accessible only to specifically
6    authorized dispensing organization agents;
7        (6) When the dispensary is closed, store all cannabis
8    and currency in a reinforced vault room in the restricted
9    access area and in a manner as to prevent diversion, theft,
10    or loss;
11        (7) Keep the reinforced vault room and any other
12    equipment or cannabis storage areas securely locked and
13    protected from unauthorized entry;
14        (8) Keep an electronic daily log of dispensing
15    organization agents with access to the reinforced vault
16    room and knowledge of the access code or combination;
17        (9) Keep all locks and security equipment in good
18    working order;
19        (10) Maintain an operational security and alarm system
20    at all times;
21        (11) Prohibit keys, if applicable, from being left in
22    the locks, or stored or placed in a location accessible to
23    persons other than specifically authorized personnel;
24        (12) Prohibit accessibility of security measures,
25    including combination numbers, passwords, or electronic or
26    biometric security systems to persons other than

 

 

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1    specifically authorized dispensing organization agents;
2        (13) Ensure that the dispensary interior and exterior
3    premises are sufficiently lit to facilitate surveillance;
4        (14) Ensure that trees, bushes, and other foliage
5    outside of the dispensary premises do not allow for a
6    person or persons to conceal themselves from sight;
7        (15) Develop emergency policies and procedures for
8    securing all product and currency following any instance of
9    diversion, theft, or loss of cannabis, and conduct an
10    assessment to determine whether additional safeguards are
11    necessary; and
12        (16) Develop sufficient additional safeguards in
13    response to any special security concerns, or as required
14    by the Department.
15    (d) The Department may request or approve alternative
16security provisions that it determines are an adequate
17substitute for a security requirement specified in this
18Article. Any additional protections may be considered by the
19Department in evaluating overall security measures.
20    (e) A dispensary organization may share premises with a
21craft grower or an infuser organization, or both, provided each
22licensee stores currency and cannabis or cannabis-infused
23products in a separate secured vault to which the other
24licensee does not have access or all licensees sharing a vault
25share more than 50% of the same ownership.
26    (f) A dispensing organization shall provide additional

 

 

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1security as needed and in a manner appropriate for the
2community where it operates.
3    (g) Restricted access areas.
4        (1) All restricted access areas must be identified by
5    the posting of a sign that is a minimum of 12 inches by 12
6    inches and that states "Do Not Enter - Restricted Access
7    Area - Authorized Personnel Only" in lettering no smaller
8    than one inch in height.
9        (2) All restricted access areas shall be clearly
10    described in the floor plan of the premises, in the form
11    and manner determined by the Department, reflecting walls,
12    partitions, counters, and all areas of entry and exit. The
13    floor plan shall show all storage, disposal, and retail
14    sales areas.
15        (3) All restricted access areas must be secure, with
16    locking devices that prevent access from the limited access
17    areas.
18    (h) Security and alarm.
19        (1) A dispensing organization shall have an adequate
20    security plan and security system to prevent and detect
21    diversion, theft, or loss of cannabis, currency, or
22    unauthorized intrusion using commercial grade equipment
23    installed by an Illinois licensed private alarm contractor
24    or private alarm contractor agency that shall, at a
25    minimum, include:
26            (i) A perimeter alarm on all entry points and glass

 

 

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1        break protection on perimeter windows;
2            (ii) Security shatterproof tinted film on exterior
3        windows;
4            (iii) A failure notification system that provides
5        an audible, text, or visual notification of any failure
6        in the surveillance system, including, but not limited
7        to, panic buttons, alarms, and video monitoring
8        system. The failure notification system shall provide
9        an alert to designated dispensing organization agents
10        within 5 minutes after the failure, either by telephone
11        or text message;
12            (iv) A duress alarm, panic button, and alarm, or
13        holdup alarm and after-hours intrusion detection alarm
14        that by design and purpose will directly or indirectly
15        notify, by the most efficient means, the Public Safety
16        Answering Point for the law enforcement agency having
17        primary jurisdiction;
18            (v) Security equipment to deter and prevent
19        unauthorized entrance into the dispensary, including
20        electronic door locks on the limited and restricted
21        access areas that include devices or a series of
22        devices to detect unauthorized intrusion that may
23        include a signal system interconnected with a radio
24        frequency method, cellular, private radio signals or
25        other mechanical or electronic device.
26        (2) All security system equipment and recordings shall

 

 

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1    be maintained in good working order, in a secure location
2    so as to prevent theft, loss, destruction, or alterations.
3        (3) Access to surveillance monitoring recording
4    equipment shall be limited to persons who are essential to
5    surveillance operations, law enforcement authorities
6    acting within their jurisdiction, security system service
7    personnel, and the Department. A current list of authorized
8    dispensing organization agents and service personnel that
9    have access to the surveillance equipment must be available
10    to the Department upon request.
11        (4) All security equipment shall be inspected and
12    tested at regular intervals, not to exceed one month from
13    the previous inspection, and tested to ensure the systems
14    remain functional.
15        (5) The security system shall provide protection
16    against theft and diversion that is facilitated or hidden
17    by tampering with computers or electronic records.
18        (6) The dispensary shall ensure all access doors are
19    not solely controlled by an electronic access panel to
20    ensure that locks are not released during a power outage.
21    (i) To monitor the dispensary, the dispensing organization
22shall incorporate continuous electronic video monitoring
23including the following:
24        (1) All monitors must be 19 inches or greater;
25        (2) Unobstructed video surveillance of all enclosed
26    dispensary areas, unless prohibited by law, including all

 

 

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1    points of entry and exit that shall be appropriate for the
2    normal lighting conditions of the area under surveillance.
3    The cameras shall be directed so all areas are captured,
4    including, but not limited to, safes, vaults, sales areas,
5    and areas where cannabis is stored, handled, dispensed, or
6    destroyed. Cameras shall be angled to allow for facial
7    recognition, the capture of clear and certain
8    identification of any person entering or exiting the
9    dispensary area and in lighting sufficient during all times
10    of night or day;
11        (3) Unobstructed video surveillance of outside areas,
12    the storefront, and the parking lot, that shall be
13    appropriate for the normal lighting conditions of the area
14    under surveillance. Cameras shall be angled so as to allow
15    for the capture of facial recognition, clear and certain
16    identification of any person entering or exiting the
17    dispensary and the immediate surrounding area, and license
18    plates of vehicles in the parking lot;
19        (4) 24-hour recordings from all video cameras
20    available for immediate viewing by the Department upon
21    request. Recordings shall not be destroyed or altered and
22    shall be retained for at least 90 days. Recordings shall be
23    retained as long as necessary if the dispensing
24    organization is aware of the loss or theft of cannabis or a
25    pending criminal, civil, or administrative investigation
26    or legal proceeding for which the recording may contain

 

 

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1    relevant information;
2        (5) The ability to immediately produce a clear, color
3    still photo from the surveillance video, either live or
4    recorded;
5        (6) A date and time stamp embedded on all video
6    surveillance recordings. The date and time shall be
7    synchronized and set correctly and shall not significantly
8    obscure the picture;
9        (7) The ability to remain operational during a power
10    outage and ensure all access doors are not solely
11    controlled by an electronic access panel to ensure that
12    locks are not released during a power outage;
13        (8) All video surveillance equipment shall allow for
14    the exporting of still images in an industry standard image
15    format, including .jpg, .bmp, and .gif. Exported video
16    shall have the ability to be archived in a proprietary
17    format that ensures authentication of the video and
18    guarantees that no alteration of the recorded image has
19    taken place. Exported video shall also have the ability to
20    be saved in an industry standard file format that can be
21    played on a standard computer operating system. All
22    recordings shall be erased or destroyed before disposal;
23        (9) The video surveillance system shall be operational
24    during a power outage with a 4-hour minimum battery backup;
25        (10) A video camera or cameras recording at each
26    point-of-sale location allowing for the identification of

 

 

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1    the dispensing organization agent distributing the
2    cannabis and any purchaser. The camera or cameras shall
3    capture the sale, the individuals and the computer monitors
4    used for the sale;
5        (11) A failure notification system that provides an
6    audible and visual notification of any failure in the
7    electronic video monitoring system; and
8        (12) All electronic video surveillance monitoring must
9    record at least the equivalent of 8 frames per second and
10    be available as recordings to the Department and the
11    Department of State Police 24 hours a day via a secure
12    web-based portal with reverse functionality.
13    (j) The requirements contained in this Act are minimum
14requirements for operating a dispensing organization. The
15Department may establish additional requirements by rule.
 
16    Section 15-110. Recordkeeping.
17    (a) Dispensing organization records must be maintained
18electronically for 3 years and be available for inspection by
19the Department upon request. Required written records include,
20but are not limited to, the following:
21        (1) Operating procedures;
22        (2) Inventory records, policies, and procedures;
23        (3) Security records;
24        (4) Audit records;
25        (5) Staff training plans and completion documentation;

 

 

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1        (6) Staffing plan; and
2        (7) Business records, including but not limited to:
3            (i) Assets and liabilities;
4            (ii) Monetary transactions;
5            (iii) Written or electronic accounts, including
6        bank statements, journals, ledgers, and supporting
7        documents, agreements, checks, invoices, receipts, and
8        vouchers; and
9            (iv) Any other financial accounts reasonably
10        related to the dispensary operations.
11    (b) Storage and transfer of records. If a dispensary closes
12due to insolvency, revocation, bankruptcy, or for any other
13reason, all records must be preserved at the expense of the
14dispensing organization for at least 3 years in a form and
15location in Illinois acceptable to the Department. The
16dispensing organization shall keep the records longer if
17requested by the Department. The dispensing organization shall
18notify the Department of the location where the dispensary
19records are stored or transferred.
 
20    Section 15-120. Closure of a dispensary.
21    (a) If a dispensing organization decides not to renew its
22license or decides to close its business, it shall promptly
23notify the Department not less than 3 months before the
24effective date of the closing date or as otherwise authorized
25by the Department.

 

 

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1    (b) The dispensing organization shall work with the
2Department to develop a closure plan that addresses, at a
3minimum, the transfer of business records, transfer of cannabis
4products, and anything else the Department finds necessary.
 
5    Section 15-125. Fees. After January 1, 2022, the Department
6may by rule modify any fee established under this Article.
 
7    Section 15-135. Investigations.
8    (a) Dispensing organizations are subject to random and
9unannounced dispensary inspections and cannabis testing by the
10Department, the Department of State Police, and local law
11enforcement.
12    (b) The Department and its authorized representatives may
13enter any place, including a vehicle, in which cannabis is
14held, stored, dispensed, sold, produced, delivered,
15transported, manufactured, or disposed of and inspect, in a
16reasonable manner, the place and all pertinent equipment,
17containers and labeling, and all things including records,
18files, financial data, sales data, shipping data, pricing data,
19personnel data, research, papers, processes, controls, and
20facility, and inventory any stock of cannabis and obtain
21samples of any cannabis or cannabis-infused product, any labels
22or containers for cannabis, or paraphernalia.
23    (c) The Department may conduct an investigation of an
24applicant, application, dispensing organization, principal

 

 

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1officer, dispensary agent, third party vendor, or any other
2party associated with a dispensing organization for an alleged
3violation of this Act or rules or to determine qualifications
4to be granted a registration by the Department.
5    (d) The Department may require an applicant or holder of
6any license issued pursuant to this Article to produce
7documents, records, or any other material pertinent to the
8investigation of an application or alleged violations of this
9Act or rules. Failure to provide the required material may be
10grounds for denial or discipline.
11    (e) Every person charged with preparation, obtaining, or
12keeping records, logs, reports, or other documents in
13connection with this Act and rules and every person in charge,
14or having custody, of those documents shall, upon request by
15the Department, make the documents immediately available for
16inspection and copying by the Department, the Department's
17authorized representative, or others authorized by law to
18review the documents.
 
19    Section 15-140. Citations. The Department may issue
20nondisciplinary citations for minor violations. Any such
21citation issued by the Department may be accompanied by a fee.
22The fee shall not exceed $20,000 per violation. The citation
23shall be issued to the licensee and shall contain the
24licensee's name and address, the licensee's license number, a
25brief factual statement, the Sections of the law allegedly

 

 

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1violated, and the fee, if any, imposed. The citation must
2clearly state that the licensee may choose, in lieu of
3accepting the citation, to request a hearing. If the licensee
4does not dispute the matter in the citation with the Department
5within 30 days after the citation is served, then the citation
6shall become final and not subject to appeal. The penalty shall
7be a fee or other conditions as established by rule.
 
8    Section 15-145. Grounds for discipline.
9    (a) The Department may deny issuance, refuse to renew or
10restore, or may reprimand, place on probation, suspend, revoke,
11or take other disciplinary or nondisciplinary action against
12any license or agent identification card or may impose a fine
13for any of the following:
14        (1) Material misstatement in furnishing information to
15    the Department;
16        (2) Violations of this Act or rules;
17        (3) Obtaining an authorization or license by fraud or
18    misrepresentation;
19        (4) A pattern of conduct that demonstrates
20    incompetence or that the applicant has engaged in conduct
21    or actions that would constitute grounds for discipline
22    under the Act;
23        (5) Aiding or assisting another person in violating any
24    provision of this Act or rules;
25        (6) Failing to respond to a written request for

 

 

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1    information by the Department within 30 days;
2        (7) Engaging in unprofessional, dishonorable, or
3    unethical conduct of a character likely to deceive,
4    defraud, or harm the public;
5        (8) Adverse action by another United States
6    jurisdiction or foreign nation;
7        (9) A finding by the Department that the licensee,
8    after having his or her license placed on suspended or
9    probationary status, has violated the terms of the
10    suspension or probation;
11        (10) Conviction, entry of a plea of guilty, nolo
12    contendere, or the equivalent in a State or federal court
13    of a principal officer or agent-in-charge of a felony
14    offense in accordance with Sections 2105-131, 2105-135,
15    and 2105-205 of the Department of Professional Regulation
16    Law of the Civil Administrative Code of Illinois;
17        (11) Excessive use or addiction to alcohol, narcotics,
18    stimulants, or any other chemical agent or drug;
19        (12) A finding by the Department of a discrepancy in a
20    Department audit of cannabis;
21        (13) A finding by the Department of a discrepancy in a
22    Department audit of capital or funds;
23        (14) A finding by the Department of acceptance of
24    cannabis from a source other than an Adult Use Cultivation
25    Center, craft grower, infuser, or transporting
26    organization licensed by the Department of Agriculture, or

 

 

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1    a dispensing organization licensed by the Department;
2        (15) An inability to operate using reasonable
3    judgment, skill, or safety due to physical or mental
4    illness or other impairment or disability, including,
5    without limitation, deterioration through the aging
6    process or loss of motor skills or mental incompetence;
7        (16) Failing to report to the Department within the
8    time frames established, or if not identified, 14 days, of
9    any adverse action taken against the dispensing
10    organization or an agent by a licensing jurisdiction in any
11    state or any territory of the United States or any foreign
12    jurisdiction, any governmental agency, any law enforcement
13    agency or any court defined in this Section;
14        (17) Any violation of the dispensing organization's
15    policies and procedures submitted to the Department
16    annually as a condition for licensure;
17        (18) Failure to inform the Department of any change of
18    address within 10 business days;
19        (19) Disclosing customer names, personal information,
20    or protected health information in violation of any State
21    or federal law;
22        (20) Operating a dispensary before obtaining a license
23    from the Department;
24        (21) Performing duties authorized by this Act prior to
25    receiving a license to perform such duties;
26        (22) Dispensing cannabis when prohibited by this Act or

 

 

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1    rules;
2        (23) Any fact or condition that, if it had existed at
3    the time of the original application for the license, would
4    have warranted the denial of the license;
5        (24) Permitting a person without a valid agent
6    identification card to perform licensed activities under
7    this Act;
8        (25) Failure to assign an agent-in-charge as required
9    by this Article;
10        (26) Failure to provide the training required by
11    paragraph (3) of subsection (i) of Section 15-40 within the
12    provided timeframe
13        (27) Personnel insufficient in number or unqualified
14    in training or experience to properly operate the
15    dispensary business;
16        (28) Any pattern of activity that causes a harmful
17    impact on the community; and
18        (29) Failing to prevent diversion, theft, or loss of
19    cannabis.
20    (b) All fines and fees imposed under this Section shall be
21paid within 60 days after the effective date of the order
22imposing the fine or as otherwise specified in the order.
23    (c) A circuit court order establishing that an
24agent-in-charge or principal officer holding an agent
25identification card is subject to involuntary admission as that
26term is defined in Section 1-119 or 1-119.1 of the Mental

 

 

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1Health and Developmental Disabilities Code shall operate as a
2suspension of that card.
 
3    Section 15-150. Temporary suspension.
4    (a) The Secretary of Financial and Professional Regulation
5may temporarily suspend a dispensing organization license or an
6agent registration without a hearing if the Secretary finds
7that public safety or welfare requires emergency action. The
8Secretary shall cause the temporary suspension by issuing a
9suspension notice in connection with the institution of
10proceedings for a hearing.
11    (b) If the Secretary temporarily suspends a license or
12agent registration without a hearing, the licensee or agent is
13entitled to a hearing within 45 days after the suspension
14notice has been issued. The hearing shall be limited to the
15issues cited in the suspension notice, unless all parties agree
16otherwise.
17    (c) If the Department does not hold a hearing with 45 days
18after the date the suspension notice was issued, then the
19suspended license or registration shall be automatically
20reinstated and the suspension vacated.
21    (d) The suspended licensee or agent may seek a continuance
22of the hearing date, during which time the suspension remains
23in effect and the license or registration shall not be
24automatically reinstated.
25    (e) Subsequently discovered causes of action by the

 

 

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1Department after the issuance of the suspension notice may be
2filed as a separate notice of violation. The Department is not
3precluded from filing a separate action against the suspended
4licensee or agent.
 
5    Section 15-155. Consent to administrative supervision
6order. In appropriate cases, the Department may resolve a
7complaint against a licensee or agent through the issuance of a
8consent order for administrative supervision. A license or
9agent subject to a consent order shall be considered by the
10Department to hold a license or registration in good standing.
 
11    Section 15-160. Notice; hearing.
12    (a) The Department shall, before disciplining an applicant
13or licensee, at least 30 days before the date set for the
14hearing: (i) notify the accused in writing of the charges made
15and the time and place for the hearing on the charges; (ii)
16direct him or her to file a written answer to the charges under
17oath within 20 days after service; and (iii) inform the
18applicant or licensee that failure to answer will result in a
19default being entered against the applicant or licensee.
20    (b) At the time and place fixed in the notice, the hearing
21officer appointed by the Secretary shall proceed to hear the
22charges, and the parties or their counsel shall be accorded
23ample opportunity to present any pertinent statements,
24testimony, evidence, and arguments. The hearing officer may

 

 

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1continue the hearing from time to time. In case the person,
2after receiving the notice, fails to file an answer, his or her
3license may, in the discretion of the Secretary, having first
4received the recommendation of the hearing officer, be
5suspended, revoked, or placed on probationary status, or be
6subject to whatever disciplinary action the Secretary
7considers proper, including a fine, without hearing, if that
8act or acts charged constitute sufficient grounds for that
9action under this Act.
10    (c) The written notice and any notice in the subsequent
11proceeding may be served by regular mail or email to the
12licensee's or applicant's address of record.
 
13    Section 15-165. Subpoenas; oaths. The Department shall
14have the power to subpoena and bring before it any person and
15to take testimony either orally or by deposition, or both, with
16the same fees and mileage and in the same manner as prescribed
17by law in judicial proceedings in civil cases in courts in this
18State. The Secretary or the hearing officer shall each have the
19power to administer oaths to witnesses at any hearings that the
20Department is authorized to conduct.
 
21    Section 15-170. Hearing; motion for rehearing.
22    (a) The hearing officer shall hear evidence in support of
23the formal charges and evidence produced by the licensee. At
24the conclusion of the hearing, the hearing officer shall

 

 

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1present to the Secretary a written report of his or her
2findings of fact, conclusions of law, and recommendations.
3    (b) At the conclusion of the hearing, a copy of the hearing
4officer's report shall be served upon the applicant or licensee
5by the Department, either personally or as provided in this Act
6for the service of a notice of hearing. Within 20 calendar days
7after service, the applicant or licensee may present to the
8Department a motion in writing for rehearing, which shall
9specify the particular grounds for rehearing. The Department
10may respond to the motion for rehearing within 20 calendar days
11after its service on the Department. If no motion for rehearing
12is filed, then, upon the expiration of the time specified for
13filing such motion or upon denial of a motion for rehearing,
14the Secretary may enter an order in accordance with the
15recommendation of the hearing officer. If the applicant or
16licensee orders from the reporting service and pays for a
17transcript of the record within the time for filing a motion
18for rehearing, the 20-day period within which a motion may be
19filed shall commence upon the delivery of the transcript to the
20applicant or licensee.
21    (c) If the Secretary disagrees in any regard with the
22report of the hearing officer, the Secretary may issue an order
23contrary to the report.
24    (d) Whenever the Secretary is not satisfied that
25substantial justice has been done, the Secretary may order a
26rehearing by the same or another hearing officer.

 

 

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1    (e) At any point in any investigation or disciplinary
2proceeding under in this Article, both parties may agree to a
3negotiated consent order. The consent order shall be final upon
4signature of the Secretary.
 
5    Section 15-175. Review under the Administrative Review
6Law.
7    (a) All final administrative decisions of the Department
8hereunder shall be subject to judicial review under the
9provisions of the Administrative Review Law, and all amendment
10and modifications thereof. The term "administrative decision"
11is defined as in Section 3-101 of the Code of Civil Procedure.
12    (b) Proceedings for judicial review shall be commenced in
13the circuit court of the county in which the party applying for
14review resides, but if the party is not a resident of Illinois,
15the venue shall be in Sangamon County.
16    (c) The Department shall not be required to certify any
17record to the court, file any answer in court, or otherwise
18appear in any court in a judicial review proceeding, unless and
19until the Department has received from the plaintiff payment of
20the costs of furnishing and certifying the record, which costs
21shall be determined by the Department. Failure on the part of
22the plaintiff to file a receipt in court shall be grounds for
23dismissal of the action.
 
24
ARTICLE 20.

 

 

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1
ADULT USE CULTIVATION CENTERS

 
2    Section 20-1. Definition. In this Article, "Department"
3means the Department of Agriculture.
 
4    Section 20-5. Issuance of licenses. On or after July 1,
52021, the Department of Agriculture by rule may:
6        (1) Modify or change the number of cultivation center
7    licenses available, which shall at no time exceed 30
8    cultivation center licenses. In determining whether to
9    exercise the authority granted by this subsection, the
10    Department of Agriculture must consider the following
11    factors:
12            (A) The percentage of cannabis sales occurring in
13        Illinois not in the regulated market using data from
14        the Substance Abuse and Mental Health Services
15        Administration, National Survey on Drug Use and
16        Health, Illinois Behavioral Risk Factor Surveillance
17        System, and tourism data from the Illinois Office of
18        Tourism to ascertain total cannabis consumption in
19        Illinois compared to the amount of sales in licensed
20        dispensing organizations;
21            (B) Whether there is an adequate supply of cannabis
22        and cannabis-infused products to serve registered
23        medical cannabis patients;
24            (C) Whether there is an adequate supply of cannabis

 

 

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1        and cannabis-infused products to serve purchasers;
2            (D) Whether there is an oversupply of cannabis in
3        Illinois leading to trafficking of cannabis to any
4        other state;
5            (E) Population increases or shifts;
6            (F) Changes to federal law;
7            (G) Perceived security risks of increasing the
8        number or location of cultivation centers;
9            (H) The past security records of cultivation
10        centers;
11            (I) The Department of Agriculture's capacity to
12        appropriately regulate additional licensees;
13            (J) The findings and recommendations from the
14        disparity and availability study commissioned by the
15        Illinois Cannabis Regulation Oversight Officer
16        referenced in subsection (e) of Section 5-45 to reduce
17        or eliminate any identified barriers to entry in the
18        cannabis industry; and
19            (K) Any other criteria the Department of
20        Agriculture deems relevant.
21        (2) Modify or change the licensing application process
22    to reduce or eliminate the barriers identified in the
23    disparity and availability study commission by the
24    Illinois Cannabis Regulation Oversight Officer and shall
25    make modifications to remedy evidence of discrimination.
 

 

 

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1    Section 20-10. Early Approval of Adult Use Cultivation
2Center License.
3    (a) Any medical cannabis cultivation center registered and
4in good standing under the Compassionate Use of Medical
5Cannabis Pilot Program Act as of the effective date of this Act
6may, within 60 days of the effective date of this Act but no
7later than 180 days from the effective date of this Act, apply
8to the Department of Agriculture for an Early Approval Adult
9Use Cultivation Center License to produce cannabis and
10cannabis-infused products at its existing facilities as of the
11effective date of this Act.
12    (b) A medical cannabis cultivation center seeking issuance
13of an Early Approval Adult Use Cultivation Center License shall
14submit an application on forms provided by the Department of
15Agriculture. The application must meet or include the following
16qualifications:
17        (1) Payment of a nonrefundable application fee of
18    $100,000 to be deposited into the Cannabis Regulation Fund;
19        (2) Proof of registration as a medical cannabis
20    cultivation center that is in good standing;
21        (3) Submission of the application by the same person or
22    entity that holds the medical cannabis cultivation center
23    registration;
24        (4) Certification that the applicant will comply with
25    the requirements of Section 20-30;
26        (5) The legal name of the cultivation center;

 

 

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1        (6) The physical address of the cultivation center;
2        (7) The name, address, social security number, and date
3    of birth of each principal officer and board member of the
4    cultivation center; each of those individuals shall be at
5    least 21 years of age;
6        (8) A nonrefundable Cannabis Business Development Fee
7    equal to 5% of the cultivation center's total sales between
8    June 1, 2018 to June 1, 2019 or $750,000, whichever is
9    less, but at not less than $250,000, to be deposited into
10    the Cannabis Business Development Fund; and
11        (9) A commitment to completing one of the following
12    Social Equity Inclusion Plans provided for in this
13    subsection (b) before the expiration of the Early Approval
14    Adult Use Cultivation Center License:
15            (A) A contribution of 5% of the cultivation
16        center's total sales from June 1, 2018 to June 1, 2019,
17        or $100,000, whichever is less, to one of the
18        following:
19                (i) the Cannabis Business Development Fund.
20            This is in addition to the fee required by item (8)
21            of this subsection (b);
22                (ii) a cannabis industry training or education
23            program at an Illinois community college as
24            defined in the Public Community College Act;
25                (iii) a program that provides job training
26            services to persons recently incarcerated or that

 

 

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1            operates in a Disproportionately Impacted Area.
2            (B) Participate as a host in a cannabis business
3        incubator program for at least one year approved by the
4        Department of Commerce and Economic Opportunity, and
5        in which an Early Approval Adult Use Cultivation Center
6        License holder agrees to provide a loan of at least
7        $100,000 and mentorship to incubate a licensee that
8        qualifies as a Social Equity Applicant. As used in this
9        Section, "incubate" means providing direct financial
10        assistance and training necessary to engage in
11        licensed cannabis industry activity similar to that of
12        the host licensee. The Early Approval Adult Use
13        Cultivation Center License holder or the same entity
14        holding any other licenses issued pursuant to this Act
15        shall not take an ownership stake of greater than 10%
16        in any business receiving incubation services to
17        comply with this subsection. If an Early Approval Adult
18        Use Cultivation Center License holder fails to find a
19        business to incubate to comply with this subsection
20        before its Early Approval Adult Use Cultivation Center
21        License expires, it may opt to meet the requirement of
22        this subsection by completing another item from this
23        subsection prior to the expiration of its Early
24        Approval Adult Use Cultivation Center License to avoid
25        a penalty.
26    (c) An Early Approval Adult Use Cultivation Center License

 

 

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1is valid until March 31, 2021. A cultivation center that
2obtains an Early Approval Adult Use Cultivation Center License
3shall receive written or electronic notice 90 days before the
4expiration of the license that the license will expire, and
5inform the license holder that it may renew its Early Approval
6Adult Use Cultivation Center License. The Department of
7Agriculture shall grant a renewal of an Early Approval Adult
8Use Cultivation Center License within 60 days of submission of
9an application if:
10        (1) the cultivation center submits an application and
11    the required renewal fee of $100,000 for an Early Approval
12    Adult Use Cultivation Center License;
13        (2) the Department of Agriculture has not suspended the
14    license of the cultivation center or suspended or revoked
15    the license for violating this Act or rules adopted under
16    this Act; and
17        (3) the cultivation center has completed a Social
18    Equity Inclusion Plan as required by item (9) of subsection
19    (b) of this Section.
20    (c-5) The Early Approval Adult Use Cultivation Center
21License renewed pursuant to subsection (c) of this Section
22shall expire March 31, 2022. The Early Approval Adult Use
23Cultivation Center Licensee shall receive written or
24electronic notice 90 days before the expiration of the license
25that the license will expire, and inform the license holder
26that it may apply for an Adult Use Cultivation Center License.

 

 

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1The Department of Agriculture shall grant an Adult Use
2Dispensing Organization License within 60 days of an
3application being deemed complete if the applicant meets all of
4the criteria in Section 20-21.
5    (d) The license fee required by paragraph (1) of subsection
6(c) of this Section shall be in addition to any license fee
7required for the renewal of a registered medical cannabis
8cultivation center license that expires during the effective
9period of the Early Approval Adult Use Cultivation Center
10License.
11    (e) Applicants must submit all required information,
12including the requirements in subsection (b) of this Section,
13to the Department of Agriculture. Failure by an applicant to
14submit all required information may result in the application
15being disqualified.
16    (f) If the Department of Agriculture receives an
17application with missing information, the Department may issue
18a deficiency notice to the applicant. The applicant shall have
1910 calendar days from the date of the deficiency notice to
20submit complete information. Applications that are still
21incomplete after this opportunity to cure may be disqualified.
22    (g) If an applicant meets all the requirements of
23subsection (b) of this Section, the Department of Agriculture
24shall issue the Early Approval Adult Use Cultivation Center
25License within 14 days of receiving the application unless:
26        (1) The licensee; principal officer, board member, or

 

 

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1    person having a financial or voting interest of 5% or
2    greater in the licensee; or agent is delinquent in filing
3    any required tax returns or paying any amounts owed to the
4    State of Illinois;
5        (2) The Director of Agriculture determines there is
6    reason, based on an inordinate number of documented
7    compliance violations, the licensee is not entitled to an
8    Early Approval Adult Use Cultivation Center License; or
9        (3) The licensee fails to commit to the Social Equity
10    Inclusion Plan.
11    (h) A cultivation center may begin producing cannabis and
12cannabis-infused products once the Early Approval Adult Use
13Cultivation Center License is approved. A cultivation center
14that obtains an Early Approval Adult Use Cultivation Center
15License may begin selling cannabis and cannabis-infused
16products on December 1, 2019.
17    (i) An Early Approval Adult Use Cultivation Center License
18holder must continue to produce and provide an adequate supply
19of cannabis and cannabis-infused products for purchase by
20qualifying patients and caregivers. For the purposes of this
21subsection, "adequate supply" means a monthly production level
22that is comparable in type and quantity to those medical
23cannabis products produced for patients and caregivers on an
24average monthly basis for the 6 months before the effective
25date of this Act.
26    (j) If there is a shortage of cannabis or cannabis-infused

 

 

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1products, a license holder shall prioritize patients
2registered under the Compassionate Use of Medical Cannabis
3Pilot Program Act over adult use purchasers.
4    (k) If an Early Approval Adult Use Cultivation Center
5licensee fails to submit an application for an Adult Use
6Cultivation Center License before the expiration of the Early
7Approval Adult Use Cultivation Center License pursuant to
8subsection (c-5) of this Section, the cultivation center shall
9cease adult use cultivation until it receives an Adult Use
10Cultivation Center License.
11    (l) A cultivation center agent who holds a valid
12cultivation center agent identification card issued under the
13Compassionate Use of Medical Cannabis Pilot Program Act and is
14an officer, director, manager, or employee of the cultivation
15center licensed under this Section may engage in all activities
16authorized by this Article to be performed by a cultivation
17center agent.
18    (m) If the Department of Agriculture suspends or revokes
19the Early Approval Adult Use Cultivation Center License of a
20cultivation center that also holds a medical cannabis
21cultivation center license issued under the Compassionate Use
22of Medical Cannabis Pilot Program Act, the Department of
23Agriculture may suspend or revoke the medical cannabis
24cultivation center license concurrently with the Early
25Approval Adult Use Cultivation Center License.
26    (n) All fees or fines collected from an Early Approval

 

 

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1Adult Use Cultivation Center License holder as a result of a
2disciplinary action in the enforcement of this Act shall be
3deposited into the Cannabis Regulation Fund.
 
4    Section 20-15. Conditional Adult Use Cultivation Center
5application.
6    (a) If the Department of Agriculture makes available
7additional cultivation center licenses pursuant to Section
820-5, applicants for a Conditional Adult Use Cultivation Center
9License shall electronically submit the following in such form
10as the Department of Agriculture may direct:
11        (1) the nonrefundable application fee set by rule by
12    the Department of Agriculture, to be deposited into the
13    Cannabis Regulation Fund;
14        (2) the legal name of the cultivation center;
15        (3) the proposed physical address of the cultivation
16    center;
17        (4) the name, address, social security number, and date
18    of birth of each principal officer and board member of the
19    cultivation center; each principal officer and board
20    member shall be at least 21 years of age;
21        (5) the details of any administrative or judicial
22    proceeding in which any of the principal officers or board
23    members of the cultivation center (i) pled guilty, were
24    convicted, fined, or had a registration or license
25    suspended or revoked, or (ii) managed or served on the

 

 

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1    board of a business or non-profit organization that pled
2    guilty, was convicted, fined, or had a registration or
3    license suspended or revoked;
4        (6) proposed operating bylaws that include procedures
5    for the oversight of the cultivation center, including the
6    development and implementation of a plant monitoring
7    system, accurate recordkeeping, staffing plan, and
8    security plan approved by the Department of State Police
9    that are in accordance with the rules issued by the
10    Department of Agriculture under this Act. A physical
11    inventory shall be performed of all plants and cannabis on
12    a weekly basis by the cultivation center;
13        (7) verification from the Department of State Police
14    that all background checks of the prospective principal
15    officers, board members, and agents of the cannabis
16    business establishment have been conducted;
17        (8) a copy of the current local zoning ordinance or
18    permit and verification that the proposed cultivation
19    center is in compliance with the local zoning rules and
20    distance limitations established by the local
21    jurisdiction;
22        (9) proposed employment practices, in which the
23    applicant must demonstrate a plan of action to inform,
24    hire, and educate minorities, women, veterans, and persons
25    with disabilities, engage in fair labor practices, and
26    provide worker protections;

 

 

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1        (10) whether an applicant can demonstrate experience
2    in or business practices that promote economic empowerment
3    in Disproportionately Impacted Areas;
4        (11) experience with the cultivation of agricultural
5    or horticultural products, operating an agriculturally
6    related business, or operating a horticultural business;
7        (12) a description of the enclosed, locked facility
8    where cannabis will be grown, harvested, manufactured,
9    processed, packaged, or otherwise prepared for
10    distribution to a dispensing organization;
11        (13) a survey of the enclosed, locked facility,
12    including the space used for cultivation;
13        (14) cultivation, processing, inventory, and packaging
14    plans;
15        (15) a description of the applicant's experience with
16    agricultural cultivation techniques and industry
17    standards;
18        (16) a list of any academic degrees, certifications, or
19    relevant experience of all prospective principal officers,
20    board members, and agents of the related business;
21        (17) the identity of every person having a financial or
22    voting interest of 5% or greater in the cultivation center
23    operation with respect to which the license is sought,
24    whether a trust, corporation, partnership, limited
25    liability company, or sole proprietorship, including the
26    name and address of each person;

 

 

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1        (18) a plan describing how the cultivation center will
2    address each of the following:
3            (i) energy needs, including estimates of monthly
4        electricity and gas usage, to what extent it will
5        procure energy from a local utility or from on-site
6        generation, and if it has or will adopt a sustainable
7        energy use and energy conservation policy;
8            (ii) water needs, including estimated water draw
9        and if it has or will adopt a sustainable water use and
10        water conservation policy; and
11            (iii) waste management, including if it has or will
12        adopt a waste reduction policy;
13        (19) a diversity plan that includes a narrative of not
14    more than 2,500 words that establishes a goal of diversity
15    in ownership, management, employment, and contracting to
16    ensure that diverse participants and groups are afforded
17    equality of opportunity;
18        (20) any other information required by rule;
19        (21) a recycling plan:
20            (A) Purchaser packaging, including cartridges,
21        shall be accepted by the applicant and recycled.
22            (B) Any recyclable waste generated by the cannabis
23        cultivation facility shall be recycled per applicable
24        State and local laws, ordinances, and rules.
25            (C) Any cannabis waste, liquid waste, or hazardous
26        waste shall be disposed of in accordance with 8 Ill.

 

 

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1        Adm. Code 1000.460, except, to the greatest extent
2        feasible, all cannabis plant waste will be rendered
3        unusable by grinding and incorporating the cannabis
4        plant waste with compostable mixed waste to be disposed
5        of in accordance with 8 Ill Adm. Code 1000.460(g)(1);
6        (22) commitment to comply with local waste provisions:
7    a cultivation facility must remain in compliance with
8    applicable State and federal environmental requirements,
9    including, but not limited to:
10            (A) storing, securing, and managing all
11        recyclables and waste, including organic waste
12        composed of or containing finished cannabis and
13        cannabis products, in accordance with applicable State
14        and local laws, ordinances, and rules; and
15            (B) Disposing liquid waste containing cannabis or
16        byproducts of cannabis processing in compliance with
17        all applicable State and federal requirements,
18        including, but not limited to, the cannabis
19        cultivation facility's permits under Title X of the
20        Environmental Protection Act; and
21        (23) a commitment to a technology standard for resource
22    efficiency of the cultivation center facility.
23            (A) A cannabis cultivation facility commits to use
24        resources efficiently, including energy and water. For
25        the following, a cannabis cultivation facility commits
26        to meet or exceed the technology standard identified in

 

 

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1        items (i), (ii), (iii), and (iv), which may be modified
2        by rule:
3                (i) lighting systems, including light bulbs;
4                (ii) HVAC system;
5                (iii) water application system to the crop;
6            and
7                (iv) filtration system for removing
8            contaminants from wastewater.
9            (B) Lighting. The Lighting Power Densities (LPD)
10        for cultivation space commits to not exceed an average
11        of 36 watts per gross square foot of active and growing
12        space canopy, or all installed lighting technology
13        shall meet a photosynthetic photon efficacy (PPE) of no
14        less than 2.2 micromoles per joule fixture and shall be
15        featured on the DesignLights Consortium (DLC)
16        Horticultural Specification Qualified Products List
17        (QPL). In the event that DLC requirement for minimum
18        efficacy exceeds 2.2 micromoles per joule fixture,
19        that PPE shall become the new standard.
20            (C) HVAC.
21                (i) For cannabis grow operations with less
22            than 6,000 square feet of canopy, the licensee
23            commits that all HVAC units will be
24            high-efficiency ductless split HVAC units, or
25            other more energy efficient equipment.
26                (ii) For cannabis grow operations with 6,000

 

 

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1            square feet of canopy or more, the licensee commits
2            that all HVAC units will be variable refrigerant
3            flow HVAC units, or other more energy efficient
4            equipment.
5            (D) Water application.
6                (i) The cannabis cultivation facility commits
7            to use automated watering systems, including, but
8            not limited to, drip irrigation and flood tables,
9            to irrigate cannabis crop.
10                (ii) The cannabis cultivation facility commits
11            to measure runoff from watering events and report
12            this volume in its water usage plan, and that on
13            average, watering events shall have no more than
14            20% of runoff of water.
15            (E) Filtration. The cultivator commits that HVAC
16        condensate, dehumidification water, excess runoff, and
17        other wastewater produced by the cannabis cultivation
18        facility shall be captured and filtered to the best of
19        the facility's ability to achieve the quality needed to
20        be reused in subsequent watering rounds.
21            (F) Reporting energy use and efficiency as
22        required by rule.
23    (b) Applicants must submit all required information,
24including the information required in Section 20-10, to the
25Department of Agriculture. Failure by an applicant to submit
26all required information may result in the application being

 

 

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1disqualified.
2    (c) If the Department of Agriculture receives an
3application with missing information, the Department of
4Agriculture may issue a deficiency notice to the applicant. The
5applicant shall have 10 calendar days from the date of the
6deficiency notice to resubmit the incomplete information.
7Applications that are still incomplete after this opportunity
8to cure will not be scored and will be disqualified.
9    (e) A cultivation center that is awarded a Conditional
10Adult Use Cultivation Center License pursuant to the criteria
11in Section 20-20 shall not grow, purchase, possess, or sell
12cannabis or cannabis-infused products until the person has
13received an Adult Use Cultivation Center License issued by the
14Department of Agriculture pursuant to Section 20-21 of this
15Act.
 
16    Section 20-20. Conditional Adult Use License scoring
17applications.
18    (a) The Department of Agriculture shall by rule develop a
19system to score cultivation center applications to
20administratively rank applications based on the clarity,
21organization, and quality of the applicant's responses to
22required information. Applicants shall be awarded points based
23on the following categories:
24        (1) Suitability of the proposed facility;
25        (2) Suitability of employee training plan;

 

 

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1        (3) Security and recordkeeping;
2        (4) Cultivation plan;
3        (5) Product safety and labeling plan;
4        (6) Business plan;
5        (7) The applicant's status as a Social Equity
6    Applicant, which shall constitute no less than 20% of total
7    available points;
8        (8) Labor and employment practices, which shall
9    constitute no less than 2% of total available points;
10        (9) Environmental plan as described in paragraphs
11    (18), (21), (22), and (23) of subsection (a) of Section
12    20-15;
13        (10) The applicant is 51% or more owned and controlled
14    by an individual or individuals who have been an Illinois
15    resident for the past 5 years as proved by tax records;
16        (11) The applicant is 51% or more controlled and owned
17    by an individual or individuals who meet the qualifications
18    of a veteran as defined by Section 45-57 of the Illinois
19    Procurement Code;
20        (12) 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        (13) Any other criteria the Department of Agriculture
26    may set by rule for points.

 

 

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1    (b) The Department may also award bonus points for the
2applicant's plan to engage with the community. Bonus points
3will only be awarded if the Department receives applications
4that receive an equal score for a particular region.
5    (c) Should the applicant be awarded a cultivation center
6license, the information and plans that an applicant provided
7in its application, including any plans submitted for the
8acquiring of bonus points, becomes a mandatory condition of the
9permit. Any variation from or failure to perform such plans may
10result in discipline, including the revocation or nonrenewal of
11a license.
12    (d) Should the applicant be awarded a cultivation center
13license, it shall pay a fee of $100,000 prior to receiving the
14license, to be deposited into the Cannabis Regulation Fund. The
15Department of Agriculture may by rule adjust the fee in this
16Section after January 1, 2021.
 
17    Section 20-21. Adult Use Cultivation Center License.
18    (a) A person or entity is only eligible to receive an Adult
19Use Cultivation Center License if the person or entity has
20first been awarded a Conditional Adult Use Cultivation Center
21License pursuant to this Act or the person or entity has
22renewed its Early Approval Cultivation Center License pursuant
23to subsection (c) of Section 20-10.
24    (b) The Department of Agriculture shall not issue an Adult
25Use Cultivation Center License until:

 

 

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1        (1) the Department of Agriculture has inspected the
2    cultivation center site and proposed operations and
3    verified that they are in compliance with this Act and
4    local zoning laws;
5        (2) the Conditional Adult Use Cultivation Center
6    License holder has paid a registration fee of $100,000 or a
7    prorated amount accounting for the difference of time
8    between when the Adult Use Cultivation Center License is
9    issued and March 31 of the next even-numbered year; and
10        (3) The Conditional Adult Use Cultivation Center
11    License holder has met all the requirements in the Act and
12    rules.
 
13    Section 20-25. Denial of application. An application for a
14cultivation center license must be denied if any of the
15following conditions are met:
16        (1) the applicant failed to submit the materials
17    required by this Article;
18        (2) the applicant would not be in compliance with local
19    zoning rules;
20        (3) one or more of the prospective principal officers
21    or board members causes a violation of Section 20-30;
22        (4) one or more of the principal officers or board
23    members is under 21 years of age;
24        (5) the person has submitted an application for a
25    permit under this Act that contains false information; or

 

 

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1        (6) the licensee, principal officer, board member, or
2    person having a financial or voting interest of 5% or
3    greater in the licensee, or the agent is delinquent in
4    filing any required tax returns or paying any amounts owed
5    to the State of Illinois.
 
6    Section 20-30. Cultivation center requirements;
7prohibitions.
8    (a) The operating documents of a cultivation center shall
9include procedures for the oversight of the cultivation center
10a cannabis plant monitoring system including a physical
11inventory recorded weekly, accurate recordkeeping, and a
12staffing plan.
13    (b) A cultivation center shall implement a security plan
14reviewed by the Department of State Police that includes, but
15is not limited to: facility access controls, perimeter
16intrusion detection systems, personnel identification systems,
1724-hour surveillance system to monitor the interior and
18exterior of the cultivation center facility and accessibility
19to authorized law enforcement, the Department of Public Health
20where processing takes place, and the Department of Agriculture
21in real time.
22    (c) All cultivation of cannabis by a cultivation center
23must take place in an enclosed, locked facility at the physical
24address provided to the Department of Agriculture during the
25licensing process. The cultivation center location shall only

 

 

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1be accessed by the agents working for the cultivation center,
2the Department of Agriculture staff performing inspections,
3the Department of Public Health staff performing inspections,
4local and State law enforcement or other emergency personnel,
5contractors working on jobs unrelated to cannabis, such as
6installing or maintaining security devices or performing
7electrical wiring, transporting organization agents as
8provided in this Act, individuals in a mentoring or educational
9program approved by the State, or other individuals as provided
10by rule.
11    (d) A cultivation center may not sell or distribute any
12cannabis or cannabis-infused products to any person other than
13a dispensing organization, craft grower, infusing
14organization, transporter, or as otherwise authorized by rule.
15    (e) A cultivation center may not either directly or
16indirectly discriminate in price between different dispensing
17organizations, craft growers, or infuser organizations that
18are purchasing a like grade, strain, brand, and quality of
19cannabis or cannabis-infused product. Nothing in this
20subsection (e) prevents a cultivation centers from pricing
21cannabis differently based on differences in the cost of
22manufacturing or processing, the quantities sold, such as
23volume discounts, or the way the products are delivered.
24    (f) All cannabis harvested by a cultivation center and
25intended for distribution to a dispensing organization must be
26entered into a data collection system, packaged and labeled

 

 

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1under Section 55-21, and placed into a cannabis container for
2transport. All cannabis harvested by a cultivation center and
3intended for distribution to a craft grower or infuser
4organization must be packaged in a labeled cannabis container
5and entered into a data collection system before transport.
6    (g) Cultivation centers are subject to random inspections
7by the Department of Agriculture, the Department of Public
8Health, local safety or health inspectors, and the Department
9of State Police.
10    (h) A cultivation center agent shall notify local law
11enforcement, the Department of State Police, and the Department
12of Agriculture within 24 hours of the discovery of any loss or
13theft. Notification shall be made by phone or in person, or by
14written or electronic communication.
15    (i) A cultivation center shall comply with all State and
16any applicable federal rules and regulations regarding the use
17of pesticides on cannabis plants.
18    (j) No person or entity shall hold any legal, equitable,
19ownership, or beneficial interest, directly or indirectly, of
20more than 3 cultivation centers licensed under this Article.
21Further, no person or entity that is employed by, an agent of,
22has a contract to receive payment in any form from a
23cultivation center, is a principal officer of a cultivation
24center, or entity controlled by or affiliated with a principal
25officer of a cultivation shall hold any legal, equitable,
26ownership, or beneficial interest, directly or indirectly, in a

 

 

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1cultivation that would result in the person or entity owning or
2controlling in combination with any cultivation center,
3principal officer of a cultivation center, or entity controlled
4or affiliated with a principal officer of a cultivation center
5by which he, she, or it is employed, is an agent of, or
6participates in the management of, more than 3 cultivation
7center licenses.
8    (k) A cultivation center may not contain more than 210,000
9square feet of canopy space for plants in the flowering stage
10for cultivation of adult use cannabis as provided in this Act.
11    (l) A cultivation center may process cannabis, cannabis
12concentrates, and cannabis-infused products.
13    (m) Beginning July 1, 2020, a cultivation center shall not
14transport cannabis to a craft grower, dispensing organization,
15infuser organization, or laboratory licensed under this Act,
16unless it has obtained a transporting organization license.
17    (n) It is unlawful for any person having a cultivation
18center license or any officer, associate, member,
19representative, or agent of such licensee to offer or deliver
20money, or anything else of value, directly or indirectly to any
21person having an Early Approval Adult Use Dispensing
22Organization License, a Conditional Adult Use Dispensing
23Organization License, an Adult Use Dispensing Organization
24License, or a medical cannabis dispensing organization license
25issued under the Compassionate Use of Medical Cannabis Pilot
26Program Act, or to any person connected with or in any way

 

 

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1representing, or to any member of the family of, such person
2holding an Early Approval Adult Use Dispensing Organization
3License, a Conditional Adult Use Dispensing Organization
4License, an Adult Use Dispensing Organization License, or a
5medical cannabis dispensing organization license issued under
6the Compassionate Use of Medical Cannabis Pilot Program Act, or
7to any stockholders in any corporation engaged in the retail
8sale of cannabis, or to any officer, manager, agent, or
9representative of the Early Approval Adult Use Dispensing
10Organization License, a Conditional Adult Use Dispensing
11Organization License, an Adult Use Dispensing Organization
12License, or a medical cannabis dispensing organization license
13issued under the Compassionate Use of Medical Cannabis Pilot
14Program Act to obtain preferential placement within the
15dispensing organization, including, without limitation, on
16shelves and in display cases where purchasers can view
17products, or on the dispensing organization's website.
18    (o) A cultivation center must comply with any other
19requirements or prohibitions set by administrative rule of the
20Department of Agriculture.
 
21    Section 20-35. Cultivation center agent identification
22card.
23    (a) The Department of Agriculture shall:
24        (1) establish by rule the information required in an
25    initial application or renewal application for an agent

 

 

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1    identification card submitted under this Act and the
2    nonrefundable fee to accompany the initial application or
3    renewal application;
4        (2) verify the information contained in an initial
5    application or renewal application for an agent
6    identification card submitted under this Act, and approve
7    or deny an application within 30 days of receiving a
8    completed initial application or renewal application and
9    all supporting documentation required by rule;
10        (3) issue an agent identification card to a qualifying
11    agent within 15 business days of approving the initial
12    application or renewal application;
13        (4) enter the license number of the cultivation center
14    where the agent works; and
15        (5) allow for an electronic initial application and
16    renewal application process, and provide a confirmation by
17    electronic or other methods that an application has been
18    submitted. The Department of Agriculture may by rule
19    require prospective agents to file their applications by
20    electronic means and provide notices to the agents by
21    electronic means.
22    (b) An agent must keep his or her identification card
23visible at all times when on the property of the cultivation
24center at which the agent is employed.
25    (c) The agent identification cards shall contain the
26following:

 

 

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1        (1) the name of the cardholder;
2        (2) the date of issuance and expiration date of the
3    identification card;
4        (3) a random 10-digit alphanumeric identification
5    number containing at least 4 numbers and at least 4 letters
6    that is unique to the holder;
7        (4) a photograph of the cardholder; and
8        (5) the legal name of the cultivation center employing
9    the agent.
10    (d) An agent identification card shall be immediately
11returned to the cultivation center of the agent upon
12termination of his or her employment.
13    (e) Any agent identification card lost by a cultivation
14center agent shall be reported to the Department of State
15Police and the Department of Agriculture immediately upon
16discovery of the loss.
17    (f) The Department of Agriculture shall not issue an agent
18identification card if the applicant is delinquent in filing
19any required tax returns or paying any amounts owed to the
20State of Illinois.
 
21    Section 20-40. Cultivation center background checks.
22    (a) Through the Department of State Police, the Department
23of Agriculture shall conduct a background check of the
24prospective principal officers, board members, and agents of a
25cultivation center applying for a license or identification

 

 

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1card under this Act. The Department of State Police shall
2charge a fee set by rule for conducting the criminal history
3record check, which shall be deposited into the State Police
4Services Fund and shall not exceed the actual cost of the
5record check. In order to carry out this provision, each
6cultivation center prospective principal officer, board
7member, or agent shall submit a full set of fingerprints to the
8Department of State Police for the purpose of obtaining a State
9and federal criminal records check. These fingerprints shall be
10checked against the fingerprint records now and hereafter, to
11the extent allowed by law, filed in the Department of State
12Police and Federal Bureau of Investigation criminal history
13records databases. The Department of State Police shall
14furnish, following positive identification, all conviction
15information to the Department of Agriculture.
16    (b) When applying for the initial license or identification
17card, the background checks for all prospective principal
18officers, board members, and agents shall be completed before
19submitting the application to the licensing or issuing agency.
 
20    Section 20-45. Renewal of cultivation center licenses and
21agent identification cards.
22    (a) Licenses and identification cards issued under this Act
23shall be renewed annually. A cultivation center shall receive
24written or electronic notice 90 days before the expiration of
25its current license that the license will expire. The

 

 

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1Department of Agriculture shall grant a renewal within 45 days
2of submission of a renewal application if:
3        (1) the cultivation center submits a renewal
4    application and the required nonrefundable renewal fee of
5    $100,000, or another amount as the Department of
6    Agriculture may set by rule after January 1, 2021, to be
7    deposited into the Cannabis Regulation Fund.
8        (2) the Department of Agriculture has not suspended the
9    license of the cultivation center or suspended or revoked
10    the license for violating this Act or rules adopted under
11    this Act;
12        (3) the cultivation center has continued to operate in
13    accordance with all plans submitted as part of its
14    application and approved by the Department of Agriculture
15    or any amendments thereto that have been approved by the
16    Department of Agriculture;
17        (4) the cultivation center has submitted an agent,
18    employee, contracting, and subcontracting diversity report
19    as required by the Department; and
20        (5) the cultivation center has submitted an
21    environmental impact report.
22    (b) If a cultivation center fails to renew its license
23before expiration, it shall cease operations until its license
24is renewed.
25    (c) If a cultivation center agent fails to renew his or her
26identification card before its expiration, he or she shall

 

 

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1cease to work as an agent of the cultivation center until his
2or her identification card is renewed.
3    (d) Any cultivation center that continues to operate, or
4any cultivation center agent who continues to work as an agent,
5after the applicable license or identification card has expired
6without renewal is subject to the penalties provided under
7Section 45-5.
 
8    Section 20-50. Cultivator taxes; returns.
9    (a) A tax is imposed upon the privilege of cultivating and
10processing adult use cannabis at the rate of 7% of the gross
11receipts from the sale of cannabis by a cultivator to a
12dispensing organization. The sale of any adult use product that
13contains any amount of cannabis or any derivative thereof is
14subject to the tax under this Section on the full selling price
15of the product. The proceeds from this tax shall be deposited
16into the Cannabis Regulation Fund. This tax shall be paid by
17the cultivator who makes the first sale and is not the
18responsibility of a dispensing organization, qualifying
19patient, or purchaser.
20    (b)In the administration of and compliance with this
21Section, the Department of Revenue and persons who are subject
22to this Section: (i) have the same rights, remedies,
23privileges, immunities, powers, and duties, (ii) are subject to
24the same conditions, restrictions, limitations, penalties, and
25definitions of terms, and (iii) shall employ the same modes of

 

 

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1procedure as are set forth in the Cannabis Cultivation
2Privilege Tax Law and the Uniform Penalty and Interest Act as
3if those provisions were set forth in this Section.
4    (c)The tax imposed under this Act shall be in addition to
5all other occupation or privilege taxes imposed by the State of
6Illinois or by any municipal corporation or political
7subdivision thereof.
 
8
ARTICLE 25.
9
COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM

 
10    Section 25-1. Definitions In this Article:
11    "Board" means the Illinois Community College Board.
12    "Career in Cannabis Certificate" or "Certificate" means
13the certification awarded to a community college student who
14completes a prescribed course of study in cannabis and cannabis
15business industry related classes and curriculum at a community
16college awarded a Community College Cannabis Vocational Pilot
17Program license.
18    "Community college" means a public community college
19organized under the Public Community College Act.
20    "Department" means the Department of Agriculture.
21    "Licensee" means a community college awarded a Community
22College Cannabis Vocational Pilot Program license under this
23Article.
24    "Program" means the Community College Cannabis Vocational

 

 

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1Pilot Program.
2    "Program license" means a Community College Cannabis
3Vocational Pilot Program license issued to a community college
4under this Article.
 
5    Section 25-5. Administration.
6    (a) The Department shall establish and administer the
7Program in coordination with the Illinois Community College
8Board. The Department may issue up to 8 Program licenses by
9September 1, 2020.
10    (b) Beginning with the 2021-2022 academic year, and subject
11to subsection (h) of Section 2-12 of the Public Community
12College Act, community colleges awarded Program licenses may
13offer qualifying students a Career in Cannabis Certificate,
14which includes, but is not limited to, courses that allow
15participating students to work with, study, and grow live
16cannabis plants so as to prepare students for a career in the
17legal cannabis industry, and to instruct participating
18students on the best business practices, professional
19responsibility, and legal compliance of the cannabis business
20industry.
21    (c) The Board may issue rules pertaining to the provisions
22in this Act.
23    (d) Notwithstanding any other provision of this Act,
24students shall be at least 18 years old in order to enroll in a
25licensee's Career in Cannabis Certificate's prescribed course

 

 

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1of study.
 
2    Section 25-10. Issuance of Community College Cannabis
3Vocational Pilot Program licenses.
4    (a) The Department shall issue rules regulating the
5selection criteria for applicants by January 1, 2020. The
6Department shall make the application for a Program license
7available no later than February 1, 2020, and shall require
8that applicants submit the completed application no later than
9July 1, 2020.
10    (b) The Department shall by rule develop a system to score
11Program licenses to administratively rank applications based
12on the clarity, organization, and quality of the applicant's
13responses to required information. Applicants shall be awarded
14points that are based on or that meet the following categories:
15        (1) Geographic diversity of the applicants;
16        (2) Experience and credentials of the applicant's
17    faculty;
18        (3) At least 5 Program license awardees must have a
19    student population that is more than 50% low-income in each
20    of the past 4 years;
21        (4) Security plan, including a requirement that all
22    cannabis plants be in an enclosed, locked facility;
23        (5) Curriculum plan, including processing and testing
24    curriculum for the Career in Cannabis Certificate;
25        (6) Career advising and placement plan for

 

 

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1    participating students; and
2        (7) Any other criteria the Department may set by rule.
 
3    Section 25-15. Community College Cannabis Vocational Pilot
4Program requirements and prohibitions.
5    (a) Licensees shall not have more than 50 flowering
6cannabis plants at any one time.
7    (b) The agent-in-charge shall keep a vault log of the
8licensee's enclosed, locked facility or facilities, including
9but not limited to, the person entering the site location, the
10time of entrance, the time of exit, and any other information
11the Department may set by rule.
12    (c) Cannabis shall not be removed from the licensee's
13facility, except for the limited purpose of shipping a sample
14to a laboratory registered under this Act.
15    (d) The licensee shall limit keys, access cards, or an
16access code to the licensee's enclosed, locked facility, or
17facilities, to cannabis curriculum faculty and college
18security personnel with a bona fide need to access the facility
19for emergency purposes.
20    (e) A transporting organization may transport cannabis
21produced pursuant to this Article to a laboratory registered
22under this Act. All other cannabis produced by the licensee
23that was not shipped to a registered laboratory shall be
24destroyed within 5 weeks of being harvested.
25    (f) Licensees shall subscribe to the Department of

 

 

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1Agriculture's cannabis plant monitoring system.
2    (g) Licensees shall maintain a weekly inventory system.
3    (h) No student participating in the cannabis curriculum
4necessary to obtain a Certificate may be in the licensee's
5facility unless a faculty agent-in-charge is also physically
6present in the facility.
7    (i) Licensees shall conduct post-certificate follow up
8surveys and record participating students' job placements
9within the cannabis business industry within a year of the
10student's completion.
11    (j) The Illinois Community College Board shall report
12annually to the Department on the race, ethnicity, and gender
13of all students participating in the cannabis curriculum
14necessary to obtain a Certificate, and of those students who
15obtain a Certificate.
 
16    Section 25-20. Faculty.
17    (a) All faculty members shall be required to maintain
18registration as an agent-in-charge and have a valid agent
19identification card prior to teaching or participating in the
20licensee's cannabis curriculum that involves instruction
21offered in the enclosed, locked facility or facilities.
22    (b) All faculty receiving an agent-in-charge or agent
23identification card must successfully pass a background check
24required by Section 5-20 prior to participating in a licensee's
25cannabis curriculum that involves instruction offered in the

 

 

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1enclosed, locked facility.
 
2    Section 25-25. Enforcement.
3    (a) The Department has the authority to suspend or revoke
4any faculty agent-in-charge or agent identification card for
5any violation found under this Article.
6    (b) The Department has the authority to suspend or revoke
7any Program license for any violation found under this Article.
8    (c) The Board shall revoke the authority to offer the
9Certificate of any community college that has had its license
10revoked by the Department.
 
11    Section 25-30. Inspection rights.
12    (a) A licensee's enclosed, locked facilities are subject to
13random inspections by the Department and the Department of
14State Police.
15    (b) Nothing in this Section shall be construed to give the
16Department or the Department of State Police a right of
17inspection or access to any location on the licensee's premises
18beyond the facilities licensed under this Article.
 
19    Section 25-35. Community College Cannabis Vocational
20Training Pilot Program faculty participant agent
21identification card.
22    (a) The Department shall:
23        (1) establish by rule the information required in an

 

 

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1    initial application or renewal application for an agent
2    identification card submitted under this Article and the
3    nonrefundable fee to accompany the initial application or
4    renewal application;
5        (2) verify the information contained in an initial
6    application or renewal application for an agent
7    identification card submitted under this Article, and
8    approve or deny an application within 30 days of receiving
9    a completed initial application or renewal application and
10    all supporting documentation required by rule;
11        (3) issue an agent identification card to a qualifying
12    agent within 15 business days of approving the initial
13    application or renewal application;
14        (4) enter the license number of the community college
15    where the agent works; and
16        (5) allow for an electronic initial application and
17    renewal application process, and provide a confirmation by
18    electronic or other methods that an application has been
19    submitted. Each Department may by rule require prospective
20    agents to file their applications by electronic means and
21    to provide notices to the agents by electronic means.
22    (b) An agent must keep his or her identification card
23visible at all times when in the enclosed, locked facility, or
24facilities for which he or she is an agent.
25    (c) The agent identification cards shall contain the
26following:

 

 

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1        (1) the name of the cardholder;
2        (2) the date of issuance and expiration date of the
3    identification card;
4        (3) a random 10-digit alphanumeric identification
5    number containing at least 4 numbers and at least 4 letters
6    that is unique to the holder;
7        (4) a photograph of the cardholder; and
8        (5) the legal name of the community college employing
9    the agent.
10    (d) An agent identification card shall be immediately
11returned to the community college of the agent upon termination
12of his or her employment.
13    (e) Any agent identification card lost shall be reported to
14the Department of State Police and the Department of
15Agriculture immediately upon discovery of the loss.
 
16    Section 25-40. Study. By December 31, 2025, the Illinois
17Cannabis Regulation Oversight Officer, in coordination with
18the Board, must issue a report to the Governor and the General
19Assembly which includes, but is not limited to, the following:
20        (1) Number of security incidents or infractions at each
21    licensee and any action taken or not taken;
22        (2) Statistics, based on race, ethnicity, gender, and
23    participating community college of:
24            (A) students enrolled in career in cannabis
25        classes;

 

 

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1            (B) successful completion rates by community
2        college students for the Certificate;
3            (C) postgraduate job placement of students who
4        obtained a Certificate, including both cannabis
5        business establishment jobs and non-cannabis business
6        establishment jobs; and
7        (3) Any other relevant information.
 
8    Section 25-45. Repeal. This Article is repealed on July 1,
92026.
 
10
ARTICLE 30.
11
CRAFT GROWERS

 
12    Section 30-3. Definition. In this Article, "Department"
13means the Department of Agriculture.
 
14    Section 30-5. Issuance of licenses.
15    (a) The Department of Agriculture shall issue up to 40
16craft grower licenses by July 1, 2020. Any person or entity
17awarded a license pursuant to this subsection shall only hold
18one craft grower license and may not sell that license until
19after December 21, 2021.
20    (b) By December 21, 2021, the Department of Agriculture
21shall issue up to 60 additional craft grower licenses. Any
22person or entity awarded a license pursuant to this subsection

 

 

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1shall not hold more than 2 craft grower licenses. The person or
2entity awarded a license pursuant to this subsection or
3subsection (a) of this Section may sell its craft grower
4license subject to the restrictions of this Act or as
5determined by administrative rule. Prior to issuing such
6licenses, the Department may adopt rules through emergency
7rulemaking in accordance with subsection (gg) of Section 5-45
8of the Illinois Administrative Procedure Act, to modify or
9raise the number of craft grower licenses assigned to each
10region and modify or change the licensing application process
11to reduce or eliminate barriers. The General Assembly finds
12that the adoption of rules to regulate cannabis use is deemed
13an emergency and necessary for the public interest, safety, and
14welfare. In determining whether to exercise the authority
15granted by this subsection, the Department of Agriculture must
16consider the following factors:
17        (1) The percentage of cannabis sales occurring in
18    Illinois not in the regulated market using data from the
19    Substance Abuse and Mental Health Services Administration,
20    National Survey on Drug Use and Health, Illinois Behavioral
21    Risk Factor Surveillance System, and tourism data from the
22    Illinois Office of Tourism to ascertain total cannabis
23    consumption in Illinois compared to the amount of sales in
24    licensed dispensing organizations;
25        (2) Whether there is an adequate supply of cannabis and
26    cannabis-infused products to serve registered medical

 

 

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1    cannabis patients;
2        (3) Whether there is an adequate supply of cannabis and
3    cannabis-infused products to serve purchasers;
4        (4) Whether there is an oversupply of cannabis in
5    Illinois leading to trafficking of cannabis to states where
6    the sale of cannabis is not permitted by law;
7        (5) Population increases or shifts;
8        (6) The density of craft growers in any area of the
9    State;
10        (7) Perceived security risks of increasing the number
11    or location of craft growers;
12        (8) The past safety record of craft growers;
13        (9) The Department of Agriculture's capacity to
14    appropriately regulate additional licensees;
15        (10) The findings and recommendations from the
16    disparity and availability study commissioned by the
17    Illinois Cannabis Regulation Oversight Officer to reduce
18    or eliminate any identified barriers to entry in the
19    cannabis industry; and
20        (11) Any other criteria the Department of Agriculture
21    deems relevant.
22    (c) After January 1, 2022, the Department of Agriculture
23may by rule modify or raise the number of craft grower licenses
24assigned to each region, and modify or change the licensing
25application process to reduce or eliminate barriers based on
26the criteria in subsection (b). At no time may the number of

 

 

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1craft grower licenses exceed 150. Any person or entity awarded
2a license pursuant to this subsection shall not hold more than
33 craft grower licenses. A person or entity awarded a license
4pursuant to this subsection or subsection (a) or subsection (b)
5of this Section may sell its craft grower license or licenses
6subject to the restrictions of this Act or as determined by
7administrative rule.
 
8    Section 30-10. Application.
9    (a) When applying for a license, the applicant shall
10electronically submit the following in such form as the
11Department of Agriculture may direct:
12        (1) the nonrefundable application fee of $5,000 to be
13    deposited into the Cannabis Regulation Fund, or another
14    amount as the Department of Agriculture may set by rule
15    after January 1, 2021;
16        (2) the legal name of the craft grower;
17        (3) the proposed physical address of the craft grower;
18        (4) the name, address, social security number, and date
19    of birth of each principal officer and board member of the
20    craft grower; each principal officer and board member shall
21    be at least 21 years of age;
22        (5) the details of any administrative or judicial
23    proceeding in which any of the principal officers or board
24    members of the craft grower (i) pled guilty, were
25    convicted, fined, or had a registration or license

 

 

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1    suspended or revoked or (ii) managed or served on the board
2    of a business or non-profit organization that pled guilty,
3    was convicted, fined, or had a registration or license
4    suspended or revoked;
5        (6) proposed operating bylaws that include procedures
6    for the oversight of the craft grower, including the
7    development and implementation of a plant monitoring
8    system, accurate recordkeeping, staffing plan, and
9    security plan approved by the Department of State Police
10    that are in accordance with the rules issued by the
11    Department of Agriculture under this Act; a physical
12    inventory shall be performed of all plants and on a weekly
13    basis by the craft grower;
14        (7) verification from the Department of State Police
15    that all background checks of the prospective principal
16    officers, board members, and agents of the cannabis
17    business establishment have been conducted;
18        (8) a copy of the current local zoning ordinance or
19    permit and verification that the proposed craft grower is
20    in compliance with the local zoning rules and distance
21    limitations established by the local jurisdiction;
22        (9) proposed employment practices, in which the
23    applicant must demonstrate a plan of action to inform,
24    hire, and educate minorities, women, veterans, and persons
25    with disabilities, engage in fair labor practices, and
26    provide worker protections;

 

 

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1        (10) whether an applicant can demonstrate experience
2    in or business practices that promote economic empowerment
3    in Disproportionately Impacted Areas;
4        (11) experience with the cultivation of agricultural
5    or horticultural products, operating an agriculturally
6    related business, or operating a horticultural business;
7        (12) a description of the enclosed, locked facility
8    where cannabis will be grown, harvested, manufactured,
9    packaged, or otherwise prepared for distribution to a
10    dispensing organization or other cannabis business
11    establishment;
12        (13) a survey of the enclosed, locked facility,
13    including the space used for cultivation;
14        (14) cultivation, processing, inventory, and packaging
15    plans;
16        (15) a description of the applicant's experience with
17    agricultural cultivation techniques and industry
18    standards;
19        (16) a list of any academic degrees, certifications, or
20    relevant experience of all prospective principal officers,
21    board members, and agents of the related business;
22        (17) the identity of every person having a financial or
23    voting interest of 5% or greater in the craft grower
24    operation, whether a trust, corporation, partnership,
25    limited liability company, or sole proprietorship,
26    including the name and address of each person;

 

 

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1        (18) a plan describing how the craft grower will
2    address each of the following:
3            (i) energy needs, including estimates of monthly
4        electricity and gas usage, to what extent it will
5        procure energy from a local utility or from on-site
6        generation, and if it has or will adopt a sustainable
7        energy use and energy conservation policy;
8            (ii) water needs, including estimated water draw
9        and if it has or will adopt a sustainable water use and
10        water conservation policy; and
11            (iii) waste management, including if it has or will
12        adopt a waste reduction policy;
13        (19) a recycling plan:
14            (A) Purchaser packaging, including cartridges,
15        shall be accepted by the applicant and recycled.
16            (B) Any recyclable waste generated by the craft
17        grower facility shall be recycled per applicable State
18        and local laws, ordinances, and rules.
19            (C) Any cannabis waste, liquid waste, or hazardous
20        waste shall be disposed of in accordance with 8 Ill.
21        Adm. Code 1000.460, except, to the greatest extent
22        feasible, all cannabis plant waste will be rendered
23        unusable by grinding and incorporating the cannabis
24        plant waste with compostable mixed waste to be disposed
25        of in accordance with 8 Ill Adm. Code 1000.460(g)(1).
26        (20) a commitment to comply with local waste

 

 

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1    provisions: a craft grower facility must remain in
2    compliance with applicable State and federal environmental
3    requirements, including, but not limited to:
4            (A) storing, securing, and managing all
5        recyclables and waste, including organic waste
6        composed of or containing finished cannabis and
7        cannabis products, in accordance with applicable State
8        and local laws, ordinances, and rules; and
9            (B) Disposing liquid waste containing cannabis or
10        byproducts of cannabis processing in compliance with
11        all applicable State and federal requirements,
12        including, but not limited to, the cannabis
13        cultivation facility's permits under Title X of the
14        Environmental Protection Act.
15        (21) a commitment to a technology standard for resource
16    efficiency of the craft grower facility.
17            (A) A craft grower facility commits to use
18        resources efficiently, including energy and water. For
19        the following, a cannabis cultivation facility commits
20        to meet or exceed the technology standard identified in
21        paragraphs (i), (ii), (iii), and (iv), which may be
22        modified by rule:
23                (i) lighting systems, including light bulbs;
24                (ii) HVAC system;
25                (iii) water application system to the crop;
26            and

 

 

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1                (iv) filtration system for removing
2            contaminants from wastewater.
3            (B) Lighting. The Lighting Power Densities (LPD)
4        for cultivation space commits to not exceed an average
5        of 36 watts per gross square foot of active and growing
6        space canopy, or all installed lighting technology
7        shall meet a photosynthetic photon efficacy (PPE) of no
8        less than 2.2 micromoles per joule fixture and shall be
9        featured on the DesignLights Consortium (DLC)
10        Horticultural Specification Qualified Products List
11        (QPL). In the event that DLC requirement for minimum
12        efficacy exceeds 2.2 micromoles per joule fixture,
13        that PPE shall become the new standard.
14            (C) HVAC.
15                (i) For cannabis grow operations with less
16            than 6,000 square feet of canopy, the licensee
17            commits that all HVAC units will be
18            high-efficiency ductless split HVAC units, or
19            other more energy efficient equipment.
20                (ii) For cannabis grow operations with 6,000
21            square feet of canopy or more, the licensee commits
22            that all HVAC units will be variable refrigerant
23            flow HVAC units, or other more energy efficient
24            equipment.
25            (D) Water application.
26                (i) The craft grower facility commits to use

 

 

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1            automated watering systems, including, but not
2            limited to, drip irrigation and flood tables, to
3            irrigate cannabis crop.
4                (ii) The craft grower facility commits to
5            measure runoff from watering events and report
6            this volume in its water usage plan, and that on
7            average, watering events shall have no more than
8            20% of runoff of water.
9            (E) Filtration. The craft grower commits that HVAC
10        condensate, dehumidification water, excess runoff, and
11        other wastewater produced by the craft grower facility
12        shall be captured and filtered to the best of the
13        facility's ability to achieve the quality needed to be
14        reused in subsequent watering rounds.
15            (F) Reporting energy use and efficiency as
16        required by rule; and
17        (22) any other information required by rule.
18    (b) Applicants must submit all required information,
19including the information required in Section 30-15, to the
20Department of Agriculture. Failure by an applicant to submit
21all required information may result in the application being
22disqualified.
23    (c) If the Department of Agriculture receives an
24application with missing information, the Department of
25Agriculture may issue a deficiency notice to the applicant. The
26applicant shall have 10 calendar days from the date of the

 

 

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1deficiency notice to resubmit the incomplete information.
2Applications that are still incomplete after this opportunity
3to cure will not be scored and will be disqualified.
 
4    Section 30-15. Scoring applications.
5    (a) The Department of Agriculture shall by rule develop a
6system to score craft grower applications to administratively
7rank applications based on the clarity, organization, and
8quality of the applicant's responses to required information.
9Applicants shall be awarded points based on the following
10categories:
11        (1) Suitability of the proposed facility;
12        (2) Suitability of the employee training plan;
13        (3) Security and recordkeeping;
14        (4) Cultivation plan;
15        (5) Product safety and labeling plan;
16        (6) Business plan;
17        (7) The applicant's status as a Social Equity
18    Applicant, which shall constitute no less than 20% of total
19    available points;
20        (8) Labor and employment practices, which shall
21    constitute no less than 2% of total available points;
22        (9) Environmental plan as described in paragraphs
23    (18), (19), (20), and (21) of subsection (a) of Section
24    30-10;
25        (10) The applicant is 51% or more owned and controlled

 

 

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1    by an individual or individuals who have been an Illinois
2    resident for the past 5 years as proved by tax records;
3        (11) The applicant is 51% or more controlled and owned
4    by an individual or individuals who meet the qualifications
5    of a veteran as defined in Section 45-57 of the Illinois
6    Procurement Code;
7        (12) A diversity plan that includes a narrative of not
8    more than 2,500 words that establishes a goal of diversity
9    in ownership, management, employment, and contracting to
10    ensure that diverse participants and groups are afforded
11    equality of opportunity; and
12        (13) Any other criteria the Department of Agriculture
13    may set by rule for points.
14    (b) The Department may also award up to 2 bonus points for
15the applicant's plan to engage with the community. The
16applicant may demonstrate a desire to engage with its community
17by participating in one or more of, but not limited to, the
18following actions: (i) establishment of an incubator program
19designed to increase participation in the cannabis industry by
20persons who would qualify as Social Equity Applicants; (ii)
21providing financial assistance to substance abuse treatment
22centers; (iii) educating children and teens about the potential
23harms of cannabis use; or (iv) other measures demonstrating a
24commitment to the applicant's community. Bonus points will only
25be awarded if the Department receives applications that receive
26an equal score for a particular region.

 

 

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1    (c) Should the applicant be awarded a craft grower license,
2the information and plans that an applicant provided in its
3application, including any plans submitted for the acquiring of
4bonus points, shall be a mandatory condition of the license.
5Any variation from or failure to perform such plans may result
6in discipline, including the revocation or nonrenewal of a
7license.
8    (d) Should the applicant be awarded a craft grower license,
9the applicant shall pay a prorated fee of $40,000 prior to
10receiving the license, to be deposited into the Cannabis
11Regulation Fund. The Department of Agriculture may by rule
12adjust the fee in this Section after January 1, 2021.
 
13    Section 30-20. Issuance of license to certain persons
14prohibited.
15    (a) No craft grower license issued by the Department of
16Agriculture shall be issued to a person who is licensed by any
17licensing authority as a cultivation center, or to any
18partnership, corporation, limited liability company, or trust
19or any subsidiary, affiliate, or any other form of business
20enterprise having more than 10% legal, equitable, or beneficial
21interest, directly or indirectly, in a person licensed in this
22State as a cultivation center, or to any principal officer,
23agent, employee, or human being with any form of ownership or
24control over a cultivation center except for a person who owns
25no more than 5% of the outstanding shares of a cultivation

 

 

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1center whose shares are publicly traded on an exchange within
2the meaning of the Securities Exchange Act of 1934.
3    (b) A person who is licensed in this State as a craft
4grower, or any partnership, corporation, limited liability
5company, or trust or any subsidiary, affiliate, or agent
6thereof, or any other form of business enterprise licensed in
7this State as a craft grower shall not have more than 10%
8legal, equitable, or beneficial interest, directly or
9indirectly, in a person licensed as a cultivation center, nor
10shall any partnership, corporation, limited liability company,
11or trust or any subsidiary, affiliate, or any other form of
12business enterprise having any legal, equitable, or beneficial
13interest, directly or indirectly, in a person licensed in this
14State as a craft grower or a craft grower agent be a principal
15officer, agent, employee, or human being with any form of
16ownership or control over a cultivation center except for a
17person who owns no more than 5% of the outstanding shares of a
18cultivation center whose shares are publicly traded on an
19exchange within the meaning of the Securities Exchange Act of
201934.
 
21    Section 30-25. Denial of application. An application for a
22craft grower license must be denied if any of the following
23conditions are met:
24        (1) the applicant failed to submit the materials
25    required by this Article;

 

 

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1        (2) the applicant would not be in compliance with local
2    zoning rules;
3        (3) one or more of the prospective principal officers
4    or board members causes a violation of Section 30-20 of
5    this Article;
6        (4) one or more of the principal officers or board
7    members is under 21 years of age;
8        (5) the person has submitted an application for a
9    license under this Act that contains false information; or
10        (6) the licensee; principal officer, board member, or
11    person having a financial or voting interest of 5% or
12    greater in the licensee; or agent is delinquent in filing
13    any required tax returns or paying any amounts owed to the
14    State of Illinois.
 
15    Section 30-30. Craft grower requirements; prohibitions.
16    (a) The operating documents of a craft grower shall include
17procedures for the oversight of the craft grower, a cannabis
18plant monitoring system including a physical inventory
19recorded weekly, accurate recordkeeping, and a staffing plan.
20    (b) A craft grower shall implement a security plan reviewed
21by the Department of State Police that includes, but is not
22limited to: facility access controls, perimeter intrusion
23detection systems, personnel identification systems, and a
2424-hour surveillance system to monitor the interior and
25exterior of the craft grower facility and that is accessible to

 

 

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1authorized law enforcement and the Department of Agriculture in
2real time.
3    (c) All cultivation of cannabis by a craft grower must take
4place in an enclosed, locked facility at the physical address
5provided to the Department of Agriculture during the licensing
6process. The craft grower location shall only be accessed by
7the agents working for the craft grower, the Department of
8Agriculture staff performing inspections, the Department of
9Public Health staff performing inspections, State and local law
10enforcement or other emergency personnel, contractors working
11on jobs unrelated to cannabis, such as installing or
12maintaining security devices or performing electrical wiring,
13transporting organization agents as provided in this Act, or
14participants in the incubator program, individuals in a
15mentoring or educational program approved by the State, or
16other individuals as provided by rule. However, if a craft
17grower shares a premises with an infuser or dispensing
18organization, agents from those other licensees may access the
19craft grower portion of the premises if that is the location of
20common bathrooms, lunchrooms, locker rooms, or other areas of
21the building where work or cultivation of cannabis is not
22performed. At no time may an infuser or dispensing organization
23agent perform work at a craft grower without being a registered
24agent of the craft grower.
25    (d) A craft grower may not sell or distribute any cannabis
26to any person other than a cultivation center, a craft grower,

 

 

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1an infuser organization, a dispensing organization, or as
2otherwise authorized by rule.
3    (e) A craft grower may not be located in an area zoned for
4residential use.
5    (f) A craft grower may not either directly or indirectly
6discriminate in price between different cannabis business
7establishments that are purchasing a like grade, strain, brand,
8and quality of cannabis or cannabis-infused product. Nothing in
9this subsection (f) prevents a craft grower from pricing
10cannabis differently based on differences in the cost of
11manufacturing or processing, the quantities sold, such as
12volume discounts, or the way the products are delivered.
13    (g) All cannabis harvested by a craft grower and intended
14for distribution to a dispensing organization must be entered
15into a data collection system, packaged and labeled under
16Section 55-21, and, if distribution is to a dispensing
17organization that does not share a premises with the dispensing
18organization receiving the cannabis, placed into a cannabis
19container for transport. All cannabis harvested by a craft
20grower and intended for distribution to a cultivation center,
21to an infuser organization, or to a craft grower with which it
22does not share a premises, must be packaged in a labeled
23cannabis container and entered into a data collection system
24before transport.
25    (h) Craft growers are subject to random inspections by the
26Department of Agriculture, local safety or health inspectors,

 

 

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1and the Department of State Police.
2    (i) A craft grower agent shall notify local law
3enforcement, the Department of State Police, and the Department
4of Agriculture within 24 hours of the discovery of any loss or
5theft. Notification shall be made by phone, in person, or
6written or electronic communication.
7    (j) A craft grower shall comply with all State and any
8applicable federal rules and regulations regarding the use of
9pesticides.
10    (k) A craft grower or craft grower agent shall not
11transport cannabis or cannabis-infused products to any other
12cannabis business establishment without a transport
13organization license unless:
14        (i) If the craft grower is located in a county with a
15    population of 3,000,000 or more, the cannabis business
16    establishment receiving the cannabis is within 2,000 feet
17    of the property line of the craft grower;
18        (ii) If the craft grower is located in a county with a
19    population of more than 700,000 but fewer than 3,000,000,
20    the cannabis business establishment receiving the cannabis
21    is within 2 miles of the craft grower; or
22        (iii) If the craft grower is located in a county with a
23    population of fewer the 700,000, the cannabis business
24    establishment receiving the cannabis is within 15 miles of
25    the craft grower.
26    (l) A craft grower may enter into a contract with a

 

 

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1transporting organization to transport cannabis to a
2cultivation center, a craft grower, an infuser organization, a
3dispensing organization, or a laboratory.
4    (m) No person or entity shall hold any legal, equitable,
5ownership, or beneficial interest, directly or indirectly, of
6more than 3 craft grower licenses. Further, no person or entity
7that is employed by, an agent of, or has a contract to receive
8payment from or participate in the management of a craft
9grower, is a principal officer of a craft grower, or entity
10controlled by or affiliated with a principal officer of a craft
11grower shall hold any legal, equitable, ownership, or
12beneficial interest, directly or indirectly, in a craft grower
13license that would result in the person or entity owning or
14controlling in combination with any craft grower, principal
15officer of a craft grower, or entity controlled or affiliated
16with a principal officer of a craft grower by which he, she, or
17it is employed, is an agent of, or participates in the
18management of more than 3 craft grower licenses.
19    (n) It is unlawful for any person having a craft grower
20license or any officer, associate, member, representative, or
21agent of the licensee to offer or deliver money, or anything
22else of value, directly or indirectly, to any person having an
23Early Approval Adult Use Dispensing Organization License, a
24Conditional Adult Use Dispensing Organization License, an
25Adult Use Dispensing Organization License, or a medical
26cannabis dispensing organization license issued under the

 

 

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1Compassionate Use of Medical Cannabis Pilot Program Act, or to
2any person connected with or in any way representing, or to any
3member of the family of, the person holding an Early Approval
4Adult Use Dispensing Organization License, a Conditional Adult
5Use Dispensing Organization License, an Adult Use Dispensing
6Organization License, or a medical cannabis dispensing
7organization license issued under the Compassionate Use of
8Medical Cannabis Pilot Program Act, or to any stockholders in
9any corporation engaged in the retail sale of cannabis, or to
10any officer, manager, agent, or representative of the Early
11Approval Adult Use Dispensing Organization License, a
12Conditional Adult Use Dispensing Organization License, an
13Adult Use Dispensing Organization License, or a medical
14cannabis dispensing organization license issued under the
15Compassionate Use of Medical Cannabis Pilot Program Act to
16obtain preferential placement within the dispensing
17organization, including, without limitation, on shelves and in
18display cases where purchasers can view products, or on the
19dispensing organization's website.
20    (o) A craft grower shall not be located within 1,500 feet
21of another craft grower or a cultivation center.
22    (p) A graft grower may process cannabis, cannabis
23concentrates, and cannabis-infused products.
24    (q) A craft grower must comply with any other requirements
25or prohibitions set by administrative rule of the Department of
26Agriculture.
 

 

 

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1    Section 30-35. Craft grower agent identification card.
2    (a) The Department of Agriculture shall:
3        (1) establish by rule the information required in an
4    initial application or renewal application for an agent
5    identification card submitted under this Act and the
6    nonrefundable fee to accompany the initial application or
7    renewal application;
8        (2) verify the information contained in an initial
9    application or renewal application for an agent
10    identification card submitted under this Act and approve or
11    deny an application within 30 days of receiving a completed
12    initial application or renewal application and all
13    supporting documentation required by rule;
14        (3) issue an agent identification card to a qualifying
15    agent within 15 business days of approving the initial
16    application or renewal application;
17        (4) enter the license number of the craft grower where
18    the agent works; and
19        (5) allow for an electronic initial application and
20    renewal application process, and provide a confirmation by
21    electronic or other methods that an application has been
22    submitted. The Department of Agriculture may by rule
23    require prospective agents to file their applications by
24    electronic means and provide notices to the agents by
25    electronic means.

 

 

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1    (b) An agent must keep his or her identification card
2visible at all times when on the property of a cannabis
3business establishment, including the craft grower
4organization for which he or she is an agent.
5    (c) The agent identification cards shall contain the
6following:
7        (1) the name of the cardholder;
8        (2) the date of issuance and expiration date of the
9    identification card;
10        (3) a random 10-digit alphanumeric identification
11    number containing at least 4 numbers and at least 4 letters
12    that is unique to the holder;
13        (4) a photograph of the cardholder; and
14        (5) the legal name of the craft grower organization
15    employing the agent.
16    (d) An agent identification card shall be immediately
17returned to the cannabis business establishment of the agent
18upon termination of his or her employment.
19    (e) Any agent identification card lost by a craft grower
20agent shall be reported to the Department of State Police and
21the Department of Agriculture immediately upon discovery of the
22loss.
 
23    Section 30-40. Craft grower background checks.
24    (a) Through the Department of State Police, the Department
25of Agriculture shall conduct a background check of the

 

 

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1prospective principal officers, board members, and agents of a
2craft grower applying for a license or identification card
3under this Act. The Department of State Police shall charge a
4fee set by rule for conducting the criminal history record
5check, which shall be deposited into the State Police Services
6Fund and shall not exceed the actual cost of the record check.
7In order to carry out this Section, each craft grower
8organization's prospective principal officer, board member, or
9agent shall submit a full set of fingerprints to the Department
10of State Police for the purpose of obtaining a State and
11federal criminal records check. These fingerprints shall be
12checked against the fingerprint records now and hereafter, to
13the extent allowed by law, filed in the Department of State
14Police and Federal Bureau of Investigation criminal history
15records databases. The Department of State Police shall
16furnish, following positive identification, all conviction
17information to the Department of Agriculture.
18    (b) When applying for the initial license or identification
19card, the background checks for all prospective principal
20officers, board members, and agents shall be completed before
21submitting the application to the licensing or issuing agency.
 
22    Section 30-45. Renewal of craft grower licenses and agent
23identification cards.
24    (a) Licenses and identification cards issued under this Act
25shall be renewed annually. A craft grower shall receive written

 

 

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1or electronic notice 90 days before the expiration of its
2current license that the license will expire. The Department of
3Agriculture shall grant a renewal within 45 days of submission
4of a renewal application if:
5        (1) the craft grower submits a renewal application and
6    the required nonrefundable renewal fee of $40,000, or
7    another amount as the Department of Agriculture may set by
8    rule after January 1, 2021;
9        (2) the Department of Agriculture has not suspended the
10    license of the craft grower or suspended or revoked the
11    license for violating this Act or rules adopted under this
12    Act;
13        (3) the craft grower has continued to operate in
14    accordance with all plans submitted as part of its
15    application and approved by the Department of Agriculture
16    or any amendments thereto that have been approved by the
17    Department of Agriculture;
18        (4) the craft grower has submitted an agent, employee,
19    contracting, and subcontracting diversity report as
20    required by the Department; and
21        (5) the craft grower has submitted an environmental
22    impact report.
23    (b) If a craft grower fails to renew its license before
24expiration, it shall cease operations until its license is
25renewed.
26    (c) If a craft grower agent fails to renew his or her

 

 

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1identification card before its expiration, he or she shall
2cease to work as an agent of the craft grower organization
3until his or her identification card is renewed.
4    (d) Any craft grower that continues to operate, or any
5craft grower agent who continues to work as an agent, after the
6applicable license or identification card has expired without
7renewal is subject to the penalties provided under Section
845-5.
9    (e) All fees or fines collected from the renewal of a craft
10grower license shall be deposited into the Cannabis Regulation
11Fund.
 
12    Section 30-50. Craft grower taxes; returns.
13    (a) A tax is imposed upon the privilege of cultivating and
14processing adult use cannabis at the rate of 7% of the gross
15receipts from the sale of cannabis by a craft grower to a
16dispensing organization. The sale of any adult use product that
17contains any amount of cannabis or any derivative thereof is
18subject to the tax under this Section on the full selling price
19of the product. The proceeds from this tax shall be deposited
20into the Cannabis Regulation Fund. This tax shall be paid by
21the craft grower who makes the first sale and is not the
22responsibility of a dispensing organization, qualifying
23patient, or purchaser.
24    (b)In the administration of and compliance with this
25Section, the Department of Revenue and persons who are subject

 

 

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1to this Section: (i) have the same rights, remedies,
2privileges, immunities, powers, and duties, (ii) are subject to
3the same conditions, restrictions, limitations, penalties, and
4definitions of terms, and (iii) shall employ the same modes of
5procedure as are set forth in the Cannabis Cultivation
6Privilege Tax Law and the Uniform Penalty and Interest Act as
7if those provisions were set forth in this Section.
8    (c)The tax imposed under this Act shall be in addition to
9all other occupation or privilege taxes imposed by the State of
10Illinois or by any municipal corporation or political
11subdivision thereof.
 
12
ARTICLE 35.
13
INFUSER ORGANIZATIONS

 
14    Section 35-3. Definitions. In this Article:
15    "Department" means the Department of Agriculture.
 
16    Section 35-5. Issuance of licenses.
17    (a) The Department of Agriculture shall issue up to 40
18infuser licenses through a process provided for in this Article
19no later than July 1, 2020.
20    (b) The Department of Agriculture shall make the
21application for infuser licenses available on January 7, 2020,
22or if that date falls on a weekend or holiday, the business day
23immediately succeeding the weekend or holiday and every January

 

 

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17 or succeeding business day thereafter, and shall receive such
2applications no later than March 15, 2020, or, if that date
3falls on a weekend or holiday, the business day immediately
4succeeding the weekend or holiday and every March 15 or
5succeeding business day thereafter.
6    (c) By December 21, 2021, the Department of Agriculture may
7issue up to 60 additional infuser licenses. Prior to issuing
8such licenses, the Department may adopt rules through emergency
9rulemaking in accordance with subsection (gg) of Section 5-45
10of the Illinois Administrative Procedure Act, to modify or
11raise the number of infuser licenses and modify or change the
12licensing application process to reduce or eliminate barriers.
13The General Assembly finds that the adoption of rules to
14regulate cannabis use is deemed an emergency and necessary for
15the public interest, safety, and welfare.
16    In determining whether to exercise the authority granted by
17this subsection, the Department of Agriculture must consider
18the following factors:
19        (1) the percentage of cannabis sales occurring in
20    Illinois not in the regulated market using data from the
21    Substance Abuse and Mental Health Services Administration,
22    National Survey on Drug Use and Health, Illinois Behavioral
23    Risk Factor Surveillance System, and tourism data from the
24    Illinois Office of Tourism to ascertain total cannabis
25    consumption in Illinois compared to the amount of sales in
26    licensed dispensing organizations;

 

 

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1        (2) whether there is an adequate supply of cannabis and
2    cannabis-infused products to serve registered medical
3    cannabis patients;
4        (3) whether there is an adequate supply of cannabis and
5    cannabis-infused products to sere purchasers:
6        (4) whether there is an oversupply of cannabis in
7    Illinois leading to trafficking of cannabis to any other
8    state;
9        (5) population increases or shifts;
10        (6) changes to federal law;
11        (7) perceived security risks of increasing the number
12    or location of infuser organizations;
13        (8) the past security records of infuser
14    organizations;
15        (9) the Department of Agriculture's capacity to
16    appropriately regulate additional licenses;
17        (10) the findings and recommendations from the
18    disparity and availability study commissioned by the
19    Illinois Cannabis Regulation Oversight Officer to reduce
20    or eliminate any identified barriers to entry in the
21    cannabis industry; and
22        (11) any other criteria the Department of Agriculture
23    deems relevant.
24    (d) After January 1, 2022, the Department of Agriculture
25may by rule modify or raise the number of infuser licenses, and
26modify or change the licensing application process to reduce or

 

 

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1eliminate barriers based on the criteria in subsection (c).
 
2    Section 35-10. Application.
3    (a) When applying for a license, the applicant shall
4electronically submit the following in such form as the
5Department of Agriculture may direct:
6        (1) the nonrefundable application fee of $5,000 or,
7    after January 1, 2021, another amount as set by rule by the
8    Department of Agriculture, to be deposited into the
9    Cannabis Regulation Fund;
10        (2) the legal name of the infuser;
11        (3) the proposed physical address of the infuser;
12        (4) the name, address, social security number, and date
13    of birth of each principal officer and board member of the
14    infuser; each principal officer and board member shall be
15    at least 21 years of age;
16        (5) the details of any administrative or judicial
17    proceeding in which any of the principal officers or board
18    members of the infuser (i) pled guilty, were convicted,
19    fined, or had a registration or license suspended or
20    revoked, or (ii) managed or served on the board of a
21    business or non-profit organization that pled guilty, was
22    convicted, fined, or had a registration or license
23    suspended or revoked;
24        (6) proposed operating bylaws that include procedures
25    for the oversight of the infuser, including the development

 

 

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1    and implementation of a plant monitoring system, accurate
2    recordkeeping, staffing plan, and security plan approved
3    by the Department of State Police that are in accordance
4    with the rules issued by the Department of Agriculture
5    under this Act; a physical inventory of all cannabis shall
6    be performed on a weekly basis by the infuser;
7        (7) verification from the Department of State Police
8    that all background checks of the prospective principal
9    officers, board members, and agents of the infuser
10    organization have been conducted;
11        (8) a copy of the current local zoning ordinance and
12    verification that the proposed infuser is in compliance
13    with the local zoning rules and distance limitations
14    established by the local jurisdiction;
15        (9) proposed employment practices, in which the
16    applicant must demonstrate a plan of action to inform,
17    hire, and educate minorities, women, veterans, and persons
18    with disabilities, engage in fair labor practices, and
19    provide worker protections;
20        (10) whether an applicant can demonstrate experience
21    in or business practices that promote economic empowerment
22    in Disproportionately Impacted Areas;
23        (11) experience with infusing products with cannabis
24    concentrate;
25        (12) a description of the enclosed, locked facility
26    where cannabis will be infused, packaged, or otherwise

 

 

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1    prepared for distribution to a dispensing organization or
2    other infuser;
3        (13) processing, inventory, and packaging plans;
4        (14) a description of the applicant's experience with
5    operating a commercial kitchen or laboratory preparing
6    products for human consumption;
7        (15) a list of any academic degrees, certifications, or
8    relevant experience of all prospective principal officers,
9    board members, and agents of the related business;
10        (16) the identity of every person having a financial or
11    voting interest of 5% or greater in the infuser operation
12    with respect to which the license is sought, whether a
13    trust, corporation, partnership, limited liability
14    company, or sole proprietorship, including the name and
15    address of each person;
16        (17) a plan describing how the infuser will address
17    each of the following:
18            (i) energy needs, including estimates of monthly
19        electricity and gas usage, to what extent it will
20        procure energy from a local utility or from on-site
21        generation, and if it has or will adopt a sustainable
22        energy use and energy conservation policy;
23            (ii) water needs, including estimated water draw,
24        and if it has or will adopt a sustainable water use and
25        water conservation policy; and
26            (iii) waste management, including if it has or will

 

 

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1        adopt a waste reduction policy;
2        (18) a recycling plan:
3            (A) a commitment that any recyclable waste
4        generated by the infuser shall be recycled per
5        applicable State and local laws, ordinances, and
6        rules; and
7            (B) a commitment to comply with local waste
8        provisions. An infuser commits to remain in compliance
9        with applicable State and federal environmental
10        requirements, including, but not limited to, storing,
11        securing, and managing all recyclables and waste,
12        including organic waste composed of or containing
13        finished cannabis and cannabis products, in accordance
14        with applicable State and local laws, ordinances, and
15        rules; and
16        (19) any other information required by rule.
17    (b) Applicants must submit all required information,
18including the information required in Section 35-15, to the
19Department of Agriculture. Failure by an applicant to submit
20all required information may result in the application being
21disqualified.
22    (c) If the Department of Agriculture receives an
23application with missing information, the Department of
24Agriculture may issue a deficiency notice to the applicant. The
25applicant shall have 10 calendar days from the date of the
26deficiency notice to resubmit the incomplete information.

 

 

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1Applications that are still incomplete after this opportunity
2to cure will not be scored and will be disqualified.
 
3    Section 35-15. Issuing licenses.
4    (a) The Department of Agriculture shall by rule develop a
5system to score infuser applications to administratively rank
6applications based on the clarity, organization, and quality of
7the applicant's responses to required information. Applicants
8shall be awarded points based on the following categories:
9        (1) Suitability of the proposed facility;
10        (2) Suitability of the employee training plan;
11        (3) Security and recordkeeping plan;
12        (4) Infusing plan;
13        (5) Product safety and labeling plan;
14        (6) Business plan;
15        (7) The applicant's status as a Social Equity
16    Applicant, which shall constitute no less than 20% of total
17    available points;
18        (8) Labor and employment practices, which shall
19    constitute no less than 2% of total available points;
20        (9) Environmental plan as described in paragraphs (17)
21    and (18) of subsection (a) of Section 35-10;
22        (10) The applicant is 51% or more owned and controlled
23    by an individual or individuals who have been an Illinois
24    resident for the past 5 years as proved by tax records;
25        (11) The applicant is 51% or more controlled and owned

 

 

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1    by an individual or individuals who meet the qualifications
2    of a veteran as defined by Section 45-57 of the Illinois
3    Procurement Code; and
4        (12) A diversity plan that includes a narrative of not
5    more than 2,500 words that establishes a goal of diversity
6    in ownership, management, employment, and contracting to
7    ensure that diverse participants and groups are afforded
8    equality of opportunity; and
9        (13) Any other criteria the Department of Agriculture
10    may set by rule for points.
11    (b) The Department may also award up to 2 bonus points for
12the applicant's plan to engage with the community. The
13applicant may demonstrate a desire to engage with its community
14by participating in one or more of, but not limited to, the
15following actions: (i) establishment of an incubator program
16designed to increase participation in the cannabis industry by
17persons who would qualify as Social Equity Applicants; (ii)
18providing financial assistance to substance abuse treatment
19centers; (iii) educating children and teens about the potential
20harms of cannabis use; or (iv) other measures demonstrating a
21commitment to the applicant's community. Bonus points will only
22be awarded if the Department receives applications that receive
23an equal score for a particular region.
24    (c) Should the applicant be awarded an infuser license, the
25information and plans that an applicant provided in its
26application, including any plans submitted for the acquiring of

 

 

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1bonus points, becomes a mandatory condition of the permit. Any
2variation from or failure to perform such plans may result in
3discipline, including the revocation or nonrenewal of a
4license.
5    (d) Should the applicant be awarded an infuser organization
6license, it shall pay a fee of $5,000 prior to receiving the
7license, to be deposited into the Cannabis Regulation Fund. The
8Department of Agriculture may by rule adjust the fee in this
9Section after January 1, 2021.
 
10    Section 35-20. Denial of application. An application for an
11infuser license shall be denied if any of the following
12conditions are met:
13        (1) the applicant failed to submit the materials
14    required by this Article;
15        (2) the applicant would not be in compliance with local
16    zoning rules or permit requirements;
17        (3) one or more of the prospective principal officers
18    or board members causes a violation of Section 35-25.
19        (4) one or more of the principal officers or board
20    members is under 21 years of age;
21        (5) the person has submitted an application for a
22    license under this Act or this Article that contains false
23    information; or
24        (6) if the licensee; principal officer, board member,
25    or person having a financial or voting interest of 5% or

 

 

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1    greater in the licensee; or agent is delinquent in filing
2    any required tax returns or paying any amounts owed to the
3    State of Illinois.
 
4    Section 35-25. Infuser organization requirements;
5prohibitions.
6    (a) The operating documents of an infuser shall include
7procedures for the oversight of the infuser, an inventory
8monitoring system including a physical inventory recorded
9weekly, accurate recordkeeping, and a staffing plan.
10    (b) An infuser shall implement a security plan reviewed by
11the Department of State Police that includes, but is not
12limited to: facility access controls, perimeter intrusion
13detection systems, personnel identification systems, and a
1424-hour surveillance system to monitor the interior and
15exterior of the infuser facility and that is accessible to
16authorized law enforcement, the Department of Public Health,
17and the Department of Agriculture in real time.
18    (c) All processing of cannabis by an infuser must take
19place in an enclosed, locked facility at the physical address
20provided to the Department of Agriculture during the licensing
21process. The infuser location shall only be accessed by the
22agents working for the infuser, the Department of Agriculture
23staff performing inspections, the Department of Public Health
24staff performing inspections, State and local law enforcement
25or other emergency personnel, contractors working on jobs

 

 

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1unrelated to cannabis, such as installing or maintaining
2security devices or performing electrical wiring, transporting
3organization agents as provided in this Act, participants in
4the incubator program, individuals in a mentoring or
5educational program approved by the State, local safety or
6health inspectors, or other individuals as provided by rule.
7However, if an infuser shares a premises with a craft grower or
8dispensing organization, agents from these other licensees may
9access the infuser portion of the premises if that is the
10location of common bathrooms, lunchrooms, locker rooms, or
11other areas of the building where processing of cannabis is not
12performed. At no time may a craft grower or dispensing
13organization agent perform work at an infuser without being a
14registered agent of the infuser.
15    (d) An infuser may not sell or distribute any cannabis to
16any person other than a dispensing organization, or as
17otherwise authorized by rule.
18    (e) An infuser may not either directly or indirectly
19discriminate in price between different cannabis business
20establishments that are purchasing a like grade, strain, brand,
21and quality of cannabis or cannabis-infused product. Nothing in
22this subsection (e) prevents an infuser from pricing cannabis
23differently based on differences in the cost of manufacturing
24or processing, the quantities sold, such volume discounts, or
25the way the products are delivered.
26    (f) All cannabis infused by an infuser and intended for

 

 

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1distribution to a dispensing organization must be entered into
2a data collection system, packaged and labeled under Section
355-21, and, if distribution is to a dispensing organization
4that does not share a premises with the infuser, placed into a
5cannabis container for transport. All cannabis produced by an
6infuser and intended for distribution to a cultivation center,
7infuser organization, or craft grower with which it does not
8share a premises, must be packaged in a labeled cannabis
9container and entered into a data collection system before
10transport.
11    (g) Infusers are subject to random inspections by the
12Department of Agriculture, the Department of Public Health, the
13Department of State Police, and local law enforcement.
14    (h) An infuser agent shall notify local law enforcement,
15the Department of State Police, and the Department of
16Agriculture within 24 hours of the discovery of any loss or
17theft. Notification shall be made by phone, in person, or by
18written or electronic communication.
19    (i) An infuser organization may not be located in an area
20zoned for residential use.
21    (j) An infuser or infuser agent shall not transport
22cannabis or cannabis-infused products to any other cannabis
23business establishment without a transport organization
24license unless:
25        (i) If the infuser is located in a county with a
26    population of 3,000,000 or more, the cannabis business

 

 

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1    establishment receiving the cannabis or cannabis-infused
2    product is within 2,000 feet of the property line of the
3    infuser;
4        (ii) If the infuser is located in a county with a
5    population of more than 700,000 but fewer than 3,000,000,
6    the cannabis business establishment receiving the cannabis
7    or cannabis-infused product is within 2 miles of the
8    infuser; or
9        (iii) If the infuser is located in a county with a
10    population of fewer than 700,000, the cannabis business
11    establishment receiving the cannabis or cannabis-infused
12    product is within 15 miles of the infuser.
13    (k) An infuser may enter into a contract with a
14transporting organization to transport cannabis to a
15dispensing organization or a laboratory.
16    (l) An infuser organization may share premises with a craft
17grower or a dispensing organization, or both, provided each
18licensee stores currency and cannabis or cannabis-infused
19products in a separate secured vault to which the other
20licensee does not have access or all licensees sharing a vault
21share more than 50% of the same ownership.
22    (m) It is unlawful for any person or entity having an
23infuser organization license or any officer, associate,
24member, representative or agent of such licensee to offer or
25deliver money, or anything else of value, directly or
26indirectly to any person having an Early Approval Adult Use

 

 

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1Dispensing Organization License, a Conditional Adult Use
2Dispensing Organization License, an Adult Use Dispensing
3Organization License, or a medical cannabis dispensing
4organization license issued under the Compassionate Use of
5Medical Cannabis Pilot Program Act, or to any person connected
6with or in any way representing, or to any member of the family
7of, such person holding an Early Approval Adult Use Dispensing
8Organization License, a Conditional Adult Use Dispensing
9Organization License, an Adult Use Dispensing Organization
10License, or a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Pilot
12Program Act, or to any stockholders in any corporation engaged
13the retail sales of cannabis, or to any officer, manager,
14agent, or representative of the Early Approval Adult Use
15Dispensing Organization License, a Conditional Adult Use
16Dispensing Organization License, an Adult Use Dispensing
17Organization License, or a medical cannabis dispensing
18organization license issued under the Compassionate Use of
19Medical Cannabis Pilot Program Act to obtain preferential
20placement within the dispensing organization, including,
21without limitation, on shelves and in display cases where
22purchasers can view products, or on the dispensing
23organization's website.
24    (n) At no time shall an infuser organization or an infuser
25agent perform the extraction of cannabis concentrate from
26cannabis flower.
 

 

 

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1    Section 35-30. Infuser agent identification card.
2    (a) The Department of Agriculture shall:
3        (1) establish by rule the information required in an
4    initial application or renewal application for an agent
5    identification card submitted under this Act and the
6    nonrefundable fee to accompany the initial application or
7    renewal application;
8        (2) verify the information contained in an initial
9    application or renewal application for an agent
10    identification card submitted under this Act, and approve
11    or deny an application within 30 days of receiving a
12    completed initial application or renewal application and
13    all supporting documentation required by rule;
14        (3) issue an agent identification card to a qualifying
15    agent within 15 business days of approving the initial
16    application or renewal application;
17        (4) enter the license number of the infuser where the
18    agent works; and
19        (5) allow for an electronic initial application and
20    renewal application process, and provide a confirmation by
21    electronic or other methods that an application has been
22    submitted. The Department of Agriculture may by rule
23    require prospective agents to file their applications by
24    electronic means and provide notices to the agents by
25    electronic means.

 

 

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1    (b) An agent must keep his or her identification card
2visible at all times when on the property of a cannabis
3business establishment including the cannabis business
4establishment for which he or she is an agent.
5    (c) The agent identification cards shall contain the
6following:
7        (1) the name of the cardholder;
8        (2) the date of issuance and expiration date of the
9    identification card;
10        (3) a random 10-digit alphanumeric identification
11    number containing at least 4 numbers and at least 4 letters
12    that is unique to the holder;
13        (4) a photograph of the cardholder; and
14        (5) the legal name of the infuser organization
15    employing the agent.
16    (d) An agent identification card shall be immediately
17returned to the infuser organization of the agent upon
18termination of his or her employment.
19    (e) Any agent identification card lost by a transporting
20agent shall be reported to the Department of State Police and
21the Department of Agriculture immediately upon discovery of the
22loss.
 
23    Section 35-31. Ensuring an adequate supply of raw materials
24to serve infusers.
25    (a) As used in this Section, "raw materials" includes, but

 

 

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1is not limited to, CO2 hash oil, "crude", "distillate", or any
2other cannabis concentrate extracted from cannabis flower by
3use of a solvent or a mechanical process.
4    (b) The Department of Agriculture may by rule design a
5method for assessing whether licensed infusers have access to
6an adequate supply of reasonably affordable raw materials,
7which may include but not be limited to: (i) a survey of
8infusers; (ii) a market study on the sales trends of
9cannabis-infused products manufactured by infusers; and (iii)
10the costs cultivation centers and craft growers assume for the
11raw materials they use in any cannabis-infused products they
12manufacture.
13    (c) The Department of Agriculture shall perform an
14assessment of whether infusers have access to an adequate
15supply of reasonably affordable raw materials that shall start
16no sooner than January 1, 2022 and shall conclude no later than
17April 1, 2022. The Department of Agriculture may rely on data
18from the Illinois Cannabis Regulation Oversight Officer as part
19of this assessment.
20    (d) The Department of Agriculture shall perform an
21assessment of whether infusers have access to an adequate
22supply of reasonably affordable raw materials that shall start
23no sooner than January 1, 2023 and shall conclude no later than
24April 1, 2023. The Department of Agriculture may rely on data
25from the Cannabis Regulation Oversight Officer as part of this
26assessment.

 

 

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1    (e) The Department of Agriculture may by rule adopt
2measures to ensure infusers have access to an adequate supply
3of reasonably affordable raw materials necessary for the
4manufacture of cannabis-infused products. Such measures may
5include, but not be limited to (i) requiring cultivation
6centers and craft growers to set aside a minimum amount of raw
7materials for the wholesale market or (ii) enabling infusers to
8apply for a processor license to extract raw materials from
9cannabis flower.
10    (f) If the Department of Agriculture determines processor
11licenses may be available to infusing organizations based upon
12findings made pursuant to subsection (e), infuser
13organizations may submit to the Department of Agriculture on
14forms provided by the Department of Agriculture the following
15information as part of an application to receive a processor
16license:
17        (1) experience with the extraction, processing, or
18    infusing of oils similar to those derived from cannabis, or
19    other business practices to be performed by the infuser;
20        (2) a description of the applicant's experience with
21    manufacturing equipment and chemicals to be used in
22    processing;
23        (3) expertise in relevant scientific fields;
24        (4) a commitment that any cannabis waste, liquid waste,
25    or hazardous waste shall be disposed of in accordance with
26    8 Ill. Adm. Code 1000.460, except, to the greatest extent

 

 

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1    feasible, all cannabis plant waste will be rendered
2    unusable by grinding and incorporating the cannabis plant
3    waste with compostable mixed waste to be disposed of in
4    accordance with Ill. Adm. Code 1000.460(g)(1); and
5        (5) any other information the Department of
6    Agriculture deems relevant.
7    (g) The Department of Agriculture may only issue an
8infusing organization a processor license if, based on the
9information pursuant to subsection (f) and any other criteria
10set by the Department of Agriculture, which may include but not
11be limited an inspection of the site where processing would
12occur, the Department of Agriculture is reasonably certain the
13infusing organization will process cannabis in a safe and
14compliant manner.
 
15    Section 35-35. Infuser organization background checks.
16    (a) Through the Department of State Police, the Department
17of Agriculture shall conduct a background check of the
18prospective principal officers, board members, and agents of an
19infuser applying for a license or identification card under
20this Act. The Department of State Police shall charge a fee set
21by rule for conducting the criminal history record check, which
22shall be deposited into the State Police Services Fund and
23shall not exceed the actual cost of the record check. In order
24to carry out this provision, each infuser organization's
25prospective principal officer, board member, or agent shall

 

 

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1submit a full set of fingerprints to the Department of State
2Police for the purpose of obtaining a State and federal
3criminal records check. These fingerprints shall be checked
4against the fingerprint records now and hereafter, to the
5extent allowed by law, filed in the Department of State Police
6and Federal Bureau of Investigation criminal history records
7databases. The Department of State Police shall furnish,
8following positive identification, all conviction information
9to the Department of Agriculture.
10    (b) When applying for the initial license or identification
11card, the background checks for all prospective principal
12officers, board members, and agents shall be completed before
13submitting the application to the licensing or issuing agency.
 
14    Section 35-40. Renewal of infuser organization licenses
15and agent identification cards.
16    (a) Licenses and identification cards issued under this Act
17shall be renewed annually. An infuser organization shall
18receive written or electronic notice 90 days before the
19expiration of its current license that the license will expire.
20The Department of Agriculture shall grant a renewal within 45
21days of submission of a renewal application if:
22        (1) the infuser organization submits a renewal
23    application and the required nonrefundable renewal fee of
24    $20,000, or, after January 1, 2021, another amount set by
25    rule by the Department of Agriculture, to be deposited into

 

 

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1    the Cannabis Regulation Fund;
2        (2) the Department of Agriculture has not suspended or
3    revoked the license of the infuser organization for
4    violating this Act or rules adopted under this Act;
5        (3) the infuser organization has continued to operate
6    in accordance with all plans submitted as part of its
7    application and approved by the Department of Agriculture
8    or any amendments thereto that have been approved by the
9    Department of Agriculture;
10        (4) The infuser has submitted an agent, employee,
11    contracting, and subcontracting diversity report as
12    required by the Department; and
13        (5) The infuser has submitted an environmental impact
14    report.
15    (b) If an infuser organization fails to renew its license
16before expiration, it shall cease operations until its license
17is renewed.
18    (c) If an infuser organization agent fails to renew his or
19her identification card before its expiration, he or she shall
20cease to work as an agent of the infuser organization until his
21or her identification card is renewed.
22    (d) Any infuser organization that continues to operate, or
23any infuser organization agent who continues to work as an
24agent, after the applicable license or identification card has
25expired without renewal is subject to the penalties provided
26under Section 35-25.

 

 

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1    (e) The Department shall not renew a license or an agent
2identification card if the applicant is delinquent in filing
3any required tax returns or paying any amounts owed to the
4State of Illinois.
 
5
ARTICLE 40.
6
TRANSPORTING ORGANIZATIONS

 
7    Section 40-1. Definition. In this Article, "Department"
8means the Department of Agriculture.
 
9    Section 40-5. Issuance of licenses.
10    (a) The Department shall issue transporting licenses
11through a process provided for in this Article no later than
12July 1, 2020.
13    (b) The Department shall make the application for
14transporting organization licenses available on January 7,
152020 and shall receive such applications no later than March
1615, 2020. Thereafter, the Department of Agriculture shall make
17available such applications on every January 7 thereafter or if
18that date falls on a weekend or holiday, the business day
19immediately succeeding the weekend or holiday and shall receive
20such applications no later than March 15 or the succeeding
21business day thereafter.
 
22    Section 40-10. Application.

 

 

HB1438 Enrolled- 248 -LRB101 04919 JRG 49928 b

1    (a) When applying for a transporting organization license,
2the applicant shall electronically submit the following in such
3form as the Department of Agriculture may direct:
4        (1) the nonrefundable application fee of $5,000 or,
5    after January 1, 2021, another amount as set by rule by the
6    Department of Agriculture, to be deposited into the
7    Cannabis Regulation Fund;
8        (2) the legal name of the transporting organization;
9        (3) the proposed physical address of the transporting
10    organization, if one is proposed;
11        (4) the name, address, social security number, and date
12    of birth of each principal officer and board member of the
13    transporting organization; each principal officer and
14    board member shall be at least 21 years of age;
15        (5) the details of any administrative or judicial
16    proceeding in which any of the principal officers or board
17    members of the transporting organization (i) pled guilty,
18    were convicted, fined, or had a registration or license
19    suspended or revoked, or (ii) managed or served on the
20    board of a business or non-profit organization that pled
21    guilty, was convicted, fined, or had a registration or
22    license suspended or revoked;
23        (6) proposed operating bylaws that include procedures
24    for the oversight of the transporting organization,
25    including the development and implementation of an
26    accurate recordkeeping plan, staffing plan, and security

 

 

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1    plan approved by the Department of State Police that are in
2    accordance with the rules issued by the Department of
3    Agriculture under this Act; a physical inventory shall be
4    performed of all cannabis on a weekly basis by the
5    transporting organization;
6        (7) verification from the Department of State Police
7    that all background checks of the prospective principal
8    officers, board members, and agents of the transporting
9    organization have been conducted;
10        (8) a copy of the current local zoning ordinance or
11    permit and verification that the proposed transporting
12    organization is in compliance with the local zoning rules
13    and distance limitations established by the local
14    jurisdiction, if the transporting organization has a
15    business address;
16        (9) proposed employment practices, in which the
17    applicant must demonstrate a plan of action to inform,
18    hire, and educate minorities, women, veterans, and persons
19    with disabilities, engage in fair labor practices, and
20    provide worker protections;
21        (10) whether an applicant can demonstrate experience
22    in or business practices that promote economic empowerment
23    in Disproportionately Impacted Areas;
24        (11) the number and type of equipment the transporting
25    organization will use to transport cannabis and
26    cannabis-infused products;

 

 

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1        (12) loading, transporting, and unloading plans;
2        (13) a description of the applicant's experience in the
3    distribution or security business;
4        (14) the identity of every person having a financial or
5    voting interest of 5% or more in the transporting
6    organization with respect to which the license is sought,
7    whether a trust, corporation, partnership, limited
8    liability company, or sole proprietorship, including the
9    name and address of each person; and
10        (15) any other information required by rule.
11    (b) Applicants must submit all required information,
12including the information required in Section 40-35 to the
13Department. Failure by an applicant to submit all required
14information may result in the application being disqualified.
15    (c) If the Department receives an application with missing
16information, the Department of Agriculture may issue a
17deficiency notice to the applicant. The applicant shall have 10
18calendar days from the date of the deficiency notice to
19resubmit the incomplete information. Applications that are
20still incomplete after this opportunity to cure will not be
21scored and will be disqualified.
 
22    Section 40-15. Issuing licenses.
23    (a) The Department of Agriculture shall by rule develop a
24system to score transporter applications to administratively
25rank applications based on the clarity, organization, and

 

 

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1quality of the applicant's responses to required information.
2Applicants shall be awarded points based on the following
3categories:
4        (1) Suitability of employee training plan;
5        (2) Security and recordkeeping plan;
6        (3) Business plan;
7        (4) The applicant's status as a Social Equity
8    Applicant, which shall constitute no less than 20% of total
9    available points;
10        (5) Labor and employment practices, which shall
11    constitute no less than 2% of total available points;
12        (6) Environmental plan that demonstrates an
13    environmental plan of action to minimize the carbon
14    footprint, environmental impact, and resource needs for
15    the transporter, which may include, without limitation,
16    recycling cannabis product packaging;
17        (7) the applicant is 51% or more owned and controlled
18    by an individual or individuals who have been an Illinois
19    resident for the past 5 years as proved by tax records;
20        (8) The applicant is 51% or more controlled and owned
21    by an individual or individuals who meet the qualifications
22    of a veteran as defined by Section 45-57 of the Illinois
23    Procurement Code;
24        (9) a diversity plan that includes a narrative of not
25    more than 2,500 words that establishes a goal of diversity
26    in ownership, management, employment, and contracting to

 

 

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1    ensure that diverse participants and groups are afforded
2    equality of opportunity; and
3        (10) Any other criteria the Department of Agriculture
4    may set by rule for points.
5    (b) The Department may also award up to 2 bonus points for
6the applicant's plan to engage with the community. The
7applicant may demonstrate a desire to engage with its community
8by participating in one or more of, but not limited to, the
9following actions: (i) establishment of an incubator program
10designed to increase participation in the cannabis industry by
11persons who would qualify as Social Equity Applicants; (ii)
12providing financial assistance to substance abuse treatment
13centers; (iii) educating children and teens about the potential
14harms of cannabis use; or (iv) other measures demonstrating a
15commitment to the applicant's community. Bonus points will only
16be awarded if the Department receives applications that receive
17an equal score for a particular region.
18    (c) Applicants for transportation organization licenses
19that score at least 85% of available points according to the
20system developed by rule and meet all other requirements for a
21transporter license shall be issued a license by the Department
22of Agriculture within 60 days of receiving the application.
23Applicants that were registered as medical cannabis
24cultivation centers prior to January 1, 2020 and who meet all
25other requirements for a transporter license shall be issued a
26license by the Department of Agriculture within 60 days of

 

 

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1receiving the application.
2    (d) Should the applicant be awarded a transportation
3organization license, the information and plans that an
4applicant provided in its application, including any plans
5submitted for the acquiring of bonus points, shall be a
6mandatory condition of the permit. Any variation from or
7failure to perform such plans may result in discipline,
8including the revocation or nonrenewal of a license.
9    (e) Should the applicant be awarded a transporting
10organization license, the applicant shall pay a prorated fee of
11$10,000 prior to receiving the license, to be deposited into
12the Cannabis Regulation Fund. The Department of Agriculture may
13by rule adjust the fee in this Section after January 1, 2021.
 
14    Section 40-20. Denial of application. An application for a
15transportation organization license shall be denied if any of
16the following conditions are met:
17        (1) the applicant failed to submit the materials
18    required by this Article;
19        (2) the applicant would not be in compliance with local
20    zoning rules or permit requirements;
21        (3) one or more of the prospective principal officers
22    or board members causes a violation of Section 40-25;
23        (4) one or more of the principal officers or board
24    members is under 21 years of age;
25        (5) the person has submitted an application for a

 

 

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1    license under this Act that contains false information; or
2        (6) the licensee, principal officer, board member, or
3    person having a financial or voting interest of 5% or
4    greater in the licensee is delinquent in filing any
5    required tax returns or paying any amounts owed to the
6    State of Illinois.
 
7    Section 40-25. Transporting organization requirements;
8prohibitions.
9    (a) The operating documents of a transporting organization
10shall include procedures for the oversight of the transporter,
11an inventory monitoring system including a physical inventory
12recorded weekly, accurate recordkeeping, and a staffing plan.
13    (b) A transporting organization may not transport cannabis
14or cannabis-infused products to any person other than a
15cultivation center, a craft grower, an infuser organization, a
16dispensing organization, a testing facility, or as otherwise
17authorized by rule.
18    (c) All cannabis transported by a transporting
19organization must be entered into a data collection system and
20placed into a cannabis container for transport.
21    (d) Transporters are subject to random inspections by the
22Department of Agriculture, the Department of Public Health, and
23the Department of State Police.
24    (e) A transporting organization agent shall notify local
25law enforcement, the Department of State Police, and the

 

 

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1Department of Agriculture within 24 hours of the discovery of
2any loss or theft. Notification shall be made by phone, in
3person, or by written or electronic communication.
4    (f) No person under the age of 21 years shall be in a
5commercial vehicle or trailer transporting cannabis goods.
6    (g) No person or individual who is not a transporting
7organization agent shall be in a vehicle while transporting
8cannabis goods.
9    (h) Transporters may not use commercial motor vehicles with
10a weight rating of over 10,001 pounds.
11    (i) It is unlawful for any person to offer or deliver
12money, or anything else of value, directly or indirectly, to
13any of the following persons to obtain preferential placement
14within the dispensing organization, including, without
15limitation, on shelves and in display cases where purchasers
16can view products, or on the dispensing organization's website:
17        (1) a person having a transporting organization
18    license, or any officer, associate, member,
19    representative, or agent of the licensee;
20        (2) a person having an Early Applicant Adult Use
21    Dispensing Organization License, an Adult Use Dispensing
22    Organization License, or a medical cannabis dispensing
23    organization license issued under the Compassionate Use of
24    Medical Cannabis Pilot Program Act;
25        (3) a person connected with or in any way representing,
26    or a member of the family of, a person holding an Early

 

 

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1    Applicant Adult Use Dispensing Organization License, an
2    Adult Use Dispensing Organization License, or a medical
3    cannabis dispensing organization license issued under the
4    Compassionate Use of Medical Cannabis Pilot Program Act; or
5        (4) a stockholder, officer, manager, agent, or
6    representative of a corporation engaged in the retail sale
7    of cannabis, an Early Applicant Adult Use Dispensing
8    Organization License, an Adult Use Dispensing Organization
9    License, or a medical cannabis dispensing organization
10    license issued under the Compassionate Use of Medical
11    Cannabis Pilot Program Act.
12    (j) A transportation organization agent must keep his or
13her identification card visible at all times when on the
14property of a cannabis business establishment and during the
15transportation of cannabis when acting under his or her duties
16as a transportation organization agent. During these times, the
17transporter organization agent must also provide the
18identification card upon request of any law enforcement officer
19engaged in his or her official duties.
20    (k) A copy of the transporting organization's registration
21and a manifest for the delivery shall be present in any vehicle
22transporting cannabis.
23    (l) Cannabis shall be transported so it is not visible or
24recognizable from outside the vehicle.
25    (m) A vehicle transporting cannabis must not bear any
26markings to indicate the vehicle contains cannabis or bear the

 

 

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1name or logo of the cannabis business establishment.
2    (n) Cannabis must be transported in an enclosed, locked
3storage compartment that is secured or affixed to the vehicle.
4    (o) The Department of Agriculture may, by rule, impose any
5other requirements or prohibitions on the transportation of
6cannabis.
 
7    Section 40-30. Transporting agent identification card.
8    (a) The Department of Agriculture shall:
9        (1) establish by rule the information required in an
10    initial application or renewal application for an agent
11    identification card submitted under this Act and the
12    nonrefundable fee to accompany the initial application or
13    renewal application;
14        (2) verify the information contained in an initial
15    application or renewal application for an agent
16    identification card submitted under this Act and approve or
17    deny an application within 30 days of receiving a completed
18    initial application or renewal application and all
19    supporting documentation required by rule;
20        (3) issue an agent identification card to a qualifying
21    agent within 15 business days of approving the initial
22    application or renewal application;
23        (4) enter the license number of the transporting
24    organization where the agent works; and
25        (5) allow for an electronic initial application and

 

 

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

 

 

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1the Department of Agriculture immediately upon discovery of the
2loss.
3    (f) An application for an agent identification card shall
4be denied if the applicant is delinquent in filing any required
5tax returns or paying any amounts owed to the State of
6Illinois.
 
7    Section 40-35. Transporting organization background
8checks.
9    (a) Through the Department of State Police, the Department
10of Agriculture shall conduct a background check of the
11prospective principal officers, board members, and agents of a
12transporter applying for a license or identification card under
13this Act. The Department of State Police shall charge a fee set
14by rule for conducting the criminal history record check, which
15shall be deposited into the State Police Services Fund and
16shall not exceed the actual cost of the record check. In order
17to carry out this provision, each transporter organization's
18prospective principal officer, board member, or agent shall
19submit a full set of fingerprints to the Department of State
20Police for the purpose of obtaining a State and federal
21criminal records check. These fingerprints shall be checked
22against the fingerprint records now and hereafter, to the
23extent allowed by law, filed in the Department of State Police
24and Federal Bureau of Investigation criminal history records
25databases. The Department of State Police shall furnish,

 

 

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1following positive identification, all conviction information
2to the Department of Agriculture.
3    (b) When applying for the initial license or identification
4card, the background checks for all prospective principal
5officers, board members, and agents shall be completed before
6submitting the application to the Department of Agriculture.
 
7    Section 40-40. Renewal of transporting organization
8licenses and agent identification cards.
9    (a) Licenses and identification cards issued under this Act
10shall be renewed annually. A transporting organization shall
11receive written or electronic notice 90 days before the
12expiration of its current license that the license will expire.
13The Department of Agriculture shall grant a renewal within 45
14days of submission of a renewal application if:
15        (1) the transporting organization submits a renewal
16    application and the required nonrefundable renewal fee of
17    $10,000, or after January 1, 2021, another amount set by
18    rule by the Department of Agriculture, to be deposited into
19    the Cannabis Regulation Fund;
20        (2) the Department of Agriculture has not suspended or
21    revoked the license of the transporting organization for
22    violating this Act or rules adopted under this Act;
23        (3) the transporting organization has continued to
24    operate in accordance with all plans submitted as part of
25    its application and approved by the Department of

 

 

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

 
24    Section 45-5. License suspension; revocation; other

 

 

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1penalties.
2    (a) Notwithstanding any other criminal penalties related
3to the unlawful possession of cannabis, the Department of
4Financial and Professional Regulation and the Department of
5Agriculture may revoke, suspend, place on probation,
6reprimand, issue cease and desist orders, refuse to issue or
7renew a license, or take any other disciplinary or
8nondisciplinary action as each department may deem proper with
9regard to a cannabis business establishment or cannabis
10business establishment agent, including fines not to exceed:
11        (1) $50,000 for each violation of this Act or rules
12    adopted under this Act by a cultivation center or
13    cultivation center agent;
14        (2) $10,000 for each violation of this Act or rules
15    adopted under this Act by a dispensing organization or
16    dispensing organization agent;
17        (3) $15,000 for each violation of this Act or rules
18    adopted under this Act by a craft grower or craft grower
19    agent;
20        (4) $10,000 for each violation of this Act or rules
21    adopted under this Act by an infuser organization or
22    infuser organization agent; and
23        (5) $10,000 for each violation of this Act or rules
24    adopted under this Act by a transporting organization or
25    transporting organization agent.
26    (b) The Department of Financial and Professional

 

 

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1Regulation and the Department of Agriculture, as the case may
2be, shall consider licensee cooperation in any agency or other
3investigation in its determination of penalties imposed under
4this Section.
5    (c) The procedures for disciplining a cannabis business
6establishment or cannabis business establishment agent and for
7administrative hearings shall be determined by rule, and shall
8provide for the review of final decisions under the
9Administrative Review Law.
10    (d) The Attorney General may also enforce a violation of
11Section 55-20, Section 55-21, and Section 15-155 as an unlawful
12practice under the Consumer Fraud and Deceptive Business
13Practices Act.
 
14    Section 45-10. Immunities and presumptions related to the
15handling of cannabis by cannabis business establishments and
16their agents.
17    (a) A cultivation center, craft grower, infuser
18organization, or transporting organization is not subject to:
19(i) prosecution; (ii) search or inspection, except by the
20Department of Agriculture, the Department of Public Health, or
21State or local law enforcement under this Act; (iii) seizure;
22(iv) penalty in any manner, including, but not limited to,
23civil penalty; (v) denial of any right or privilege; or (vi)
24disciplinary action by a business licensing board or entity for
25acting under this Act and rules adopted under this Act to

 

 

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1acquire, possess, cultivate, manufacture, process, deliver,
2transfer, transport, supply, or sell cannabis or cannabis
3paraphernalia under this Act.
4    (b) A licensed cultivation center agent, licensed craft
5grower agent, licensed infuser organization agent, or licensed
6transporting organization agent is not subject to: (i)
7prosecution; (ii) search; (iii) penalty in any manner,
8including, but not limited to, civil penalty; (iv) denial of
9any right or privilege; or (v) disciplinary action by a
10business licensing board or entity, for engaging in
11cannabis-related activities authorized under this Act and
12rules adopted under this Act.
13    (c) A dispensing organization is not subject to: (i)
14prosecution; (ii) search or inspection, except by the
15Department of Financial and Professional Regulation, or State
16or local law enforcement under this Act; (iii) seizure; (iv)
17penalty in any manner, including, but not limited to, civil
18penalty; (v) denial of any right or privilege; or (vi)
19disciplinary action by a business licensing board or entity,
20for acting under this Act and rules adopted under this Act to
21acquire, possess, or dispense cannabis, cannabis-infused
22products, cannabis paraphernalia, or related supplies, and
23educational materials under this Act.
24    (d) A licensed dispensing organization agent is not subject
25to: (i) prosecution; (ii) search; or (iii) penalty in any
26manner, or denial of any right or privilege, including, but not

 

 

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1limited to, civil penalty or disciplinary action by a business
2licensing board or entity, for working for a dispensing
3organization under this Act and rules adopted under this Act.
4    (e) Any cannabis, cannabis-infused product, cannabis
5paraphernalia, legal property, or interest in legal property
6that is possessed, owned, or used in connection with the use of
7cannabis as allowed under this Act, or acts incidental to that
8use, may not be seized or forfeited. This Act does not prevent
9the seizure or forfeiture of cannabis exceeding the amounts
10allowed under this Act, nor does it prevent seizure or
11forfeiture if the basis for the action is unrelated to the
12cannabis that is possessed, manufactured, transferred, or used
13under this Act.
14    (f) Nothing in this Act shall preclude local or State law
15enforcement agencies from searching a cultivation center,
16craft grower, infuser organization, transporting organization,
17or dispensing organization if there is probable cause to
18believe that the criminal laws of this State have been violated
19and the search is conducted in conformity with the Illinois
20Constitution, the Constitution of the United States, and
21applicable law.
22    (g) Nothing in this Act shall preclude the Attorney General
23or other authorized government agency from investigating or
24bringing a civil action against a cannabis business
25establishment, or an agent thereof, for a violation of State
26law, including, but not limited to, civil rights violations and

 

 

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1violations of the Consumer Fraud and Deceptive Business
2Practices Act.
 
3    Section 45-15. State standards and requirements. Any
4standards, requirements, and rules regarding the health and
5safety, environmental protection, testing, security, food
6safety, and worker protections established by the State shall
7be the minimum standards for all licensees under this Act
8statewide, where applicable. Knowing violations of any State or
9local law, ordinance, or rule conferring worker protections or
10legal rights on the employees of a licensee may be grounds for
11disciplinary action under this Act, in addition to penalties
12established elsewhere.
 
13    Section 45-20. Violation of tax Acts; refusal, revocation,
14or suspension of license or agent identification card.
15    (a) In addition to other grounds specified in this Act, the
16Department of Agriculture and Department of Financial and
17Professional Regulation, upon notification by the Department
18of Revenue, shall refuse the issuance or renewal of a license
19or agent identification card, or suspend or revoke the license
20or agent identification card, of any person, for any of the
21following violations of any tax Act administered by the
22Department of Revenue:
23        (1) Failure to file a tax return.
24        (2) The filing of a fraudulent return.

 

 

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1        (3) Failure to pay all or part of any tax or penalty
2    finally determined to be due.
3        (4) Failure to keep books and records.
4        (5) Failure to secure and display a certificate or
5    sub-certificate of registration, if required.
6        (6) Willful violation of any rule or regulation of the
7    Department relating to the administration and enforcement
8    of tax liability.
9    (b) After all violations of any of items (1) through (6) of
10subsection (a) have been corrected or resolved, the Department
11shall, upon request of the applicant or, if not requested, may
12notify the entities listed in subsection (a) that the
13violations have been corrected or resolved. Upon receiving
14notice from the Department that a violation of any of items (1)
15through (6) of subsection (a) have been corrected or otherwise
16resolved to the Department of Revenue's satisfaction, the
17Department of Agriculture and the Department of Financial and
18Professional Regulation may issue or renew the license or agent
19identification card, or vacate an order of suspension or
20revocation.
 
21
ARTICLE 50.
22
LABORATORY TESTING

 
23    Section 50-5. Laboratory testing.
24    (a) Notwithstanding any other provision of law, the

 

 

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1following acts, when performed by a cannabis testing facility
2with a current, valid registration, or a person 21 years of age
3or older who is acting in his or her capacity as an owner,
4employee, or agent of a cannabis testing facility, are not
5unlawful and shall not be an offense under Illinois law or be a
6basis for seizure or forfeiture of assets under Illinois law:
7        (1) possessing, repackaging, transporting, storing, or
8    displaying cannabis or cannabis-infused products;
9        (2) receiving or transporting cannabis or
10    cannabis-infused products from a cannabis business
11    establishment, a community college licensed under the
12    Community College Cannabis Vocational Training Pilot
13    Program, or a person 21 years of age or older; and
14        (3) returning or transporting cannabis or
15    cannabis-infused products to a cannabis business
16    establishment, a community college licensed under the
17    Community College Cannabis Vocational Training Pilot
18    Program, or a person 21 years of age or older.
19    (b)(1) No laboratory shall handle, test, or analyze
20cannabis unless approved by the Department of Agriculture in
21accordance with this Section.
22    (2) No laboratory shall be approved to handle, test, or
23analyze cannabis unless the laboratory:
24        (A) is accredited by a private laboratory accrediting
25    organization;
26        (B) is independent from all other persons involved in

 

 

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1    the cannabis industry in Illinois and no person with a
2    direct or indirect interest in the laboratory has a direct
3    or indirect financial, management, or other interest in an
4    Illinois cultivation center, craft grower, dispensary,
5    infuser, transporter, certifying physician, or any other
6    entity in the State that may benefit from the production,
7    manufacture, dispensing, sale, purchase, or use of
8    cannabis; and
9        (C) has employed at least one person to oversee and be
10    responsible for the laboratory testing who has earned, from
11    a college or university accredited by a national or
12    regional certifying authority, at least:
13            (i) a master's level degree in chemical or
14        biological sciences and a minimum of 2 years'
15        post-degree laboratory experience; or
16            (ii) a bachelor's degree in chemical or biological
17        sciences and a minimum of 4 years' post-degree
18        laboratory experience.
19    (3) Each independent testing laboratory that claims to be
20accredited must provide the Department of Agriculture with a
21copy of the most recent annual inspection report granting
22accreditation and every annual report thereafter.
23    (c) Immediately before manufacturing or natural processing
24of any cannabis or cannabis-infused product or packaging
25cannabis for sale to a dispensary, each batch shall be made
26available by the cultivation center, craft grower, or infuser

 

 

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1for an employee of an approved laboratory to select a random
2sample, which shall be tested by the approved laboratory for:
3        (1) microbiological contaminants;
4        (2) mycotoxins;
5        (3) pesticide active ingredients;
6        (4) residual solvent; and
7        (5) an active ingredient analysis.
8    (d) The Department of Agriculture may select a random
9sample that shall, for the purposes of conducting an active
10ingredient analysis, be tested by the Department of Agriculture
11for verification of label information.
12    (e) A laboratory shall immediately return or dispose of any
13cannabis upon the completion of any testing, use, or research.
14If cannabis is disposed of, it shall be done in compliance with
15Department of Agriculture rule.
16    (f) If a sample of cannabis does not pass the
17microbiological, mycotoxin, pesticide chemical residue, or
18solvent residue test, based on the standards established by the
19Department of Agriculture, the following shall apply:
20        (1) If the sample failed the pesticide chemical residue
21    test, the entire batch from which the sample was taken
22    shall, if applicable, be recalled as provided by rule.
23        (2) If the sample failed any other test, the batch may
24    be used to make a CO2-based or solvent based extract. After
25    processing, the CO2-based or solvent based extract must
26    still pass all required tests.

 

 

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1    (g) The Department of Agriculture shall establish
2standards for microbial, mycotoxin, pesticide residue, solvent
3residue, or other standards for the presence of possible
4contaminants, in addition to labeling requirements for
5contents and potency.
6    (h) The laboratory shall file with the Department of
7Agriculture an electronic copy of each laboratory test result
8for any batch that does not pass the microbiological,
9mycotoxin, or pesticide chemical residue test, at the same time
10that it transmits those results to the cultivation center. In
11addition, the laboratory shall maintain the laboratory test
12results for at least 5 years and make them available at the
13Department of Agriculture's request.
14    (i) A cultivation center, craft grower, and infuser shall
15provide to a dispensing organization the laboratory test
16results for each batch of cannabis product purchased by the
17dispensing organization, if sampled. Each dispensary
18organization must have those laboratory results available upon
19request to purchasers.
20    (j) The Department of Agriculture may adopt rules related
21to testing in furtherance of this Act.
 
22
ARTICLE 55.
23
GENERAL PROVISIONS

 
24    Section 55-5. Preparation of cannabis-infused products.

 

 

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1    (a) The Department of Agriculture may regulate the
2production of cannabis-infused products by a cultivation
3center, a craft grower, an infuser organization, or a
4dispensing organization and establish rules related to
5refrigeration, hot-holding, and handling of cannabis-infused
6products. All cannabis-infused products shall meet the
7packaging and labeling requirements contained in Section
855-21.
9    (b) Cannabis-infused products for sale or distribution at a
10dispensing organization must be prepared by an approved agent
11of a cultivation center or infuser organization.
12    (c) A cultivation center or infuser organization that
13prepares cannabis-infused products for sale or distribution by
14a dispensing organization shall be under the operational
15supervision of a Department of Public Health certified food
16service sanitation manager.
17    (d) Dispensing organizations may not manufacture, process,
18or produce cannabis-infused products.
19    (e) The Department of Public Health shall adopt and enforce
20rules for the manufacture and processing of cannabis-infused
21products, and for that purpose it may at all times enter every
22building, room, basement, enclosure, or premises occupied or
23used, or suspected of being occupied or used, for the
24production, preparation, manufacture for sale, storage, sale,
25processing, distribution, or transportation of
26cannabis-infused products, and to inspect the premises

 

 

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1together with all utensils, fixtures, furniture, and machinery
2used for the preparation of these products.
3    (f) The Department of Agriculture shall by rule establish a
4maximum level of THC that may be contained in each serving of
5cannabis-infused product, and within the product package.
6    (g) If a local public health agency has a reasonable belief
7that a cannabis-infused product poses a public health hazard,
8it may refer the cultivation center, craft grower, or infuser
9that manufactured or processed the cannabis-infused product to
10the Department of Public Health. If the Department of Public
11Health finds that a cannabis-infused product poses a health
12hazard, it may bring an action for immediate injunctive relief
13to require that action be taken as the court may deem necessary
14to meet the hazard of the cultivation facility or seek other
15relief as provided by rule.
 
16    Section 55-10. Maintenance of inventory. All dispensing
17organizations authorized to serve both registered qualifying
18patients and caregivers and purchasers are required to report
19which cannabis and cannabis-infused products are purchased for
20sale under the Compassionate Use of Medical Cannabis Pilot
21Program Act, and which cannabis and cannabis-infused products
22are purchased under this Act. Nothing in this Section prohibits
23a registered qualifying patient under the Compassionate Use of
24Medical Cannabis Pilot Program Act from purchasing cannabis as
25a purchaser under this Act.
 

 

 

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1    Section 55-15. Destruction of cannabis.
2    (a) All cannabis byproduct, scrap, and harvested cannabis
3not intended for distribution to a dispensing organization must
4be destroyed and disposed of under rules adopted by the
5Department of Agriculture under this Act. Documentation of
6destruction and disposal shall be retained at the cultivation
7center, craft grower, infuser organization, transporter, or
8testing facility as applicable for a period of not less than 5
9years.
10    (b) A cultivation center, craft grower, or infuser
11organization shall, before destruction, notify the Department
12of Agriculture and the Department of State Police. A dispensing
13organization shall, before destruction, notify the Department
14of Financial and Professional Regulation and the Department of
15State Police. The Department of Agriculture may by rule require
16that an employee of the Department of Agriculture or the
17Department of Financial and Professional Regulation be present
18during the destruction of any cannabis byproduct, scrap, and
19harvested cannabis, as applicable.
20    (c) The cultivation center, craft grower, infuser
21organization, or dispensing organization shall keep a record of
22the date of destruction and how much was destroyed.
23    (d) A dispensing organization shall destroy all cannabis,
24including cannabis-infused products, not sold to purchasers.
25Documentation of destruction and disposal shall be retained at

 

 

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1the dispensing organization for a period of not less than 5
2years.
 
3    Section 55-20. Advertising and promotions.
4    (a) No cannabis business establishment nor any other person
5or entity shall engage in advertising that contains any
6statement or illustration that:
7        (1) is false or misleading;
8        (2) promotes overconsumption of cannabis or cannabis
9    products;
10        (3) depicts the actual consumption of cannabis or
11    cannabis products;
12        (4) depicts a person under 21 years of age consuming
13    cannabis;
14        (5) makes any health, medicinal, or therapeutic claims
15    about cannabis or cannabis-infused products;
16        (6) includes the image of a cannabis leaf or bud; or
17        (7) includes any image designed or likely to appeal to
18    minors, including cartoons, toys, animals, or children, or
19    any other likeness to images, characters, or phrases that
20    is designed in any manner to be appealing to or encourage
21    consumption of persons under 21 years of age.
22    (b) No cannabis business establishment nor any other person
23or entity shall place or maintain, or cause to be placed or
24maintained, an advertisement of cannabis or a cannabis-infused
25product in any form or through any medium:

 

 

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1        (1) within 1,000 feet of the perimeter of school
2    grounds, a playground, a recreation center or facility, a
3    child care center, a public park or public library, or a
4    game arcade to which admission is not restricted to persons
5    21 years of age or older;
6        (2) on or in a public transit vehicle or public transit
7    shelter;
8        (3) on or in publicly owned or publicly operated
9    property; or
10        (4) that contains information that:
11            (A) is false or misleading;
12            (B) promotes excessive consumption;
13            (C) depicts a person under 21 years of age
14        consuming cannabis;
15            (D) includes the image of a cannabis leaf; or
16            (E) includes any image designed or likely to appeal
17        to minors, including cartoons, toys, animals, or
18        children, or any other likeness to images, characters,
19        or phrases that are popularly used to advertise to
20        children, or any imitation of candy packaging or
21        labeling, or that promotes consumption of cannabis.
22    (c) Subsections (a) and (b) do not apply to an educational
23message.
24    (d) Sales promotions. No cannabis business establishment
25nor any other person or entity may encourage the sale of
26cannabis or cannabis products by giving away cannabis or

 

 

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1cannabis products, by conducting games or competitions related
2to the consumption of cannabis or cannabis products, or by
3providing promotional materials or activities of a manner or
4type that would be appealing to children.
 
5    Section 55-21. Cannabis product packaging and labeling.
6    (a) Each cannabis product produced for sale shall be
7registered with the Department of Agriculture on forms provided
8by the Department of Agriculture. Each product registration
9shall include a label and the required registration fee at the
10rate established by the Department of Agriculture for a
11comparable medical cannabis product, or as established by rule.
12The registration fee is for the name of the product offered for
13sale and one fee shall be sufficient for all package sizes.
14    (b) All harvested cannabis intended for distribution to a
15cannabis enterprise must be packaged in a sealed, labeled
16container.
17    (c) Any product containing cannabis shall be packaged in a
18sealed, odor-proof, and child-resistant cannabis container
19consistent with current standards, including the Consumer
20Product Safety Commission standards referenced by the Poison
21Prevention Act.
22    (d) All cannabis-infused products shall be individually
23wrapped or packaged at the original point of preparation. The
24packaging of the cannabis-infused product shall conform to the
25labeling requirements of the Illinois Food, Drug and Cosmetic

 

 

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1Act, in addition to the other requirements set forth in this
2Section.
3    (e) Each cannabis product shall be labeled before sale and
4each label shall be securely affixed to the package and shall
5state in legible English and any languages required by the
6Department of Agriculture:
7        (1) The name and post office box of the registered
8    cultivation center or craft grower where the item was
9    manufactured;
10        (2) The common or usual name of the item and the
11    registered name of the cannabis product that was registered
12    with the Department of Agriculture under subsection (a);
13        (3) A unique serial number that will match the product
14    with a cultivation center or craft grower batch and lot
15    number to facilitate any warnings or recalls the Department
16    of Agriculture, cultivation center, or craft grower deems
17    appropriate;
18        (4) The date of final testing and packaging, if
19    sampled, and the identification of the independent testing
20    laboratory;
21        (5) The date of harvest and "use by" date;
22        (6) The quantity (in ounces or grams) of cannabis
23    contained in the product;
24        (7) A pass/fail rating based on the laboratory's
25    microbiological, mycotoxins, and pesticide and solvent
26    residue analyses, if sampled.

 

 

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1        (8) Content list.
2            (A) A list of the following, including the minimum
3        and maximum percentage content by weight for
4        subdivisions (d)(8)(A)(i) through (iv):
5                (i) delta-9-tetrahydrocannabinol (THC);
6                (ii) tetrahydrocannabinolic acid (THCA);
7                (iii) cannabidiol (CBD);
8                (iv) cannabidiolic acid (CBDA); and
9                (v) all other ingredients of the item,
10            including any colors, artificial flavors, and
11            preservatives, listed in descending order by
12            predominance of weight shown with common or usual
13            names.
14            (B) The acceptable tolerances for the minimum
15        percentage printed on the label for any of subdivisions
16        (d)(8)(A)(i) through (iv) shall not be below 85% or
17        above 115% of the labeled amount;
18    (f) Packaging must not contain information that:
19        (1) is false or misleading;
20        (2) promotes excessive consumption;
21        (3) depicts a person under 21 years of age consuming
22    cannabis;
23        (4) includes the image of a cannabis leaf;
24        (5) includes any image designed or likely to appeal to
25    minors, including cartoons, toys, animals, or children, or
26    any other likeness to images, characters, or phrases that

 

 

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1    are popularly used to advertise to children, or any
2    packaging or labeling that bears reasonable resemblance to
3    any product available for consumption as a commercially
4    available candy, or that promotes consumption of cannabis;
5        (6) contains any seal, flag, crest, coat of arms, or
6    other insignia likely to mislead the purchaser to believe
7    that the product has been endorsed, made, or used by the
8    State of Illinois or any of its representatives except
9    where authorized by this Act.
10    (g) Cannabis products produced by concentrating or
11extracting ingredients from the cannabis plant shall contain
12the following information, where applicable:
13        (1) If solvents were used to create the concentrate or
14    extract, a statement that discloses the type of extraction
15    method, including any solvents or gases used to create the
16    concentrate or extract; and
17        (2) Any other chemicals or compounds used to produce or
18    were added to the concentrate or extract.
19    (h) All cannabis products must contain warning statements
20established for purchasers, of a size that is legible and
21readily visible to a consumer inspecting a package, which may
22not be covered or obscured in any way. The Department of Public
23Health shall define and update appropriate health warnings for
24packages including specific labeling or warning requirements
25for specific cannabis products.
26    (i) Unless modified by rule to strengthen or respond to new

 

 

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1evidence and science, the following warnings shall apply to all
2cannabis products unless modified by rule: "This product
3contains cannabis and is intended for use by adults 21 and
4over. Its use can impair cognition and may be habit forming.
5This product should not be used by pregnant or breastfeeding
6women. It is unlawful to sell or provide this item to any
7individual, and it may not be transported outside the State of
8Illinois. It is illegal to operate a motor vehicle while under
9the influence of cannabis. Possession or use of this product
10may carry significant legal penalties in some jurisdictions and
11under federal law.".
12    (j) Warnings for each of the following product types must
13be present on labels when offered for sale to a purchaser:
14        (1) Cannabis that may be smoked must contain a
15    statement that "Smoking is hazardous to your health.".
16        (2) Cannabis-infused products (other than those
17    intended for topical application) must contain a statement
18    "CAUTION: This product contains cannabis, and intoxication
19    following use may be delayed 2 or more hours. This product
20    was produced in a facility that cultivates cannabis, and
21    that may also process common food allergens.".
22        (3) Cannabis-infused products intended for topical
23    application must contain a statement "DO NOT EAT" in bold,
24    capital letters.
25    (k) Each cannabis-infused product intended for consumption
26must be individually packaged, must include the total milligram

 

 

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1content of THC and CBD, and may not include more than a total
2of 100 milligrams of THC per package. A package may contain
3multiple servings of 10 milligrams of THC, and indicated by
4scoring, wrapping, or by other indicators designating
5individual serving sizes. The Department of Agriculture may
6change the total amount of THC allowed for each package, or the
7total amount of THC allowed for each serving size, by rule.
8    (l) No individual other than the purchaser may alter or
9destroy any labeling affixed to the primary packaging of
10cannabis or cannabis-infused products.
11    (m) For each commercial weighing and measuring device used
12at a facility, the cultivation center or craft grower must:
13        (1) Ensure that the commercial device is licensed under
14    the Weights and Measures Act and the associated
15    administrative rules (8 Ill. Adm. Code 600);
16        (2) Maintain documentation of the licensure of the
17    commercial device; and
18        (3) Provide a copy of the license of the commercial
19    device to the Department of Agriculture for review upon
20    request.
21    (n) It is the responsibility of the Department to ensure
22that packaging and labeling requirements, including product
23warnings, are enforced at all times for products provided to
24purchasers. Product registration requirements and container
25requirements may be modified by rule by the Department of
26Agriculture.

 

 

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1    (o) Labeling, including warning labels, may be modified by
2rule by the Department of Agriculture.
 
3    Section 55-25. Local ordinances. Unless otherwise provided
4under this Act or otherwise in accordance with State law:
5        (1) A unit of local government, including a home rule
6    unit or any non-home rule county within the unincorporated
7    territory of the county, may enact reasonable zoning
8    ordinances or resolutions, not in conflict with this Act or
9    rules adopted pursuant to this Act, regulating cannabis
10    business establishments. No unit of local government,
11    including a home rule unit or any non-home rule county
12    within the unincorporated territory of the county, may
13    prohibit home cultivation or unreasonably prohibit use of
14    cannabis authorized by this Act.
15        (2) A unit of local government, including a home rule
16    unit or any non-home rule county within the unincorporated
17    territory of the county, may enact ordinances or rules not
18    in conflict with this Act or with rules adopted pursuant to
19    this Act governing the time, place, manner, and number of
20    cannabis business establishment operations, including
21    minimum distance limitations between cannabis business
22    establishments and locations it deems sensitive, including
23    colleges and universities, through the use of conditional
24    use permits. A unit of local government, including a home
25    rule unit, may establish civil penalties for violation of

 

 

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1    an ordinance or rules governing the time, place, and manner
2    of operation of a cannabis business establishment or a
3    conditional use permit in the jurisdiction of the unit of
4    local government. No unit of local government, including a
5    home rule unit or non-home rule county within an
6    unincorporated territory of the county, may unreasonably
7    restrict the time, place, manner, and number of cannabis
8    business establishment operations authorized by this Act.
9        (3) A unit of local government, including a home rule
10    unit, or any non-home rule county within the unincorporated
11    territory of the county may regulate the on-premises
12    consumption of cannabis at or in a cannabis business
13    establishment within its jurisdiction in a manner
14    consistent with this Act. A cannabis business
15    establishment or other entity authorized or permitted by a
16    unit of local government to allow on-site consumption shall
17    not be deemed a public place within the meaning of the
18    Smoke Free Illinois Act.
19        (4) A unit of local government, including a home rule
20    unit or any non-home rule county within the unincorporated
21    territory of the county, may not regulate the activities
22    described in paragraph (1), (2), or (3) in a manner more
23    restrictive than the regulation of those activities by the
24    State under this Act. This Section is a limitation under
25    subsection (i) of Section 6 of Article VII of the Illinois
26    Constitution on the concurrent exercise by home rule units

 

 

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1    of powers and functions exercised by the State.
2        (5) A unit of local government, including a home rule
3    unit or any non-home rule county within the unincorporated
4    territory of the county, may enact ordinances to prohibit
5    or significantly limit a cannabis business establishment's
6    location.
 
7    Section 55-28. Restricted cannabis zones.
8    (a) As used in this Section:
9    "Legal voter" means a person:
10        (1) who is duly registered to vote in a municipality
11    with a population of over 500,000;
12        (2) whose name appears on a poll list compiled by the
13    city board of election commissioners since the last
14    preceding election, regardless of whether the election was
15    a primary, general, or special election;
16        (3) who, at the relevant time, is a resident of the
17    address at which he or she is registered to vote; and
18        (4) whose address, at the relevant time, is located in
19    the precinct where such person seeks to circulate or sign a
20    petition under this Section.
21    As used in the definition of "legal voter", "relevant time"
22means any time that:
23        (i) a notice of intent is filed, pursuant to subsection
24    (c) of this Section, to initiate the petition process under
25    this Section;

 

 

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1        (ii) the petition is circulated for signature in the
2    applicable precinct; or
3        (iii) the petition is signed by registered voters in
4    the applicable precinct.
5    "Petition" means the petition described in this Section.
6    "Precinct" means the smallest constituent territory within
7a municipality with a population of over 500,000 in which
8electors vote as a unit at the same polling place in any
9election governed by the Election Code.
10    "Restricted cannabis zone" means a precinct within which
11home cultivation, one or more types of cannabis business
12establishments, or both has been prohibited pursuant to an
13ordinance initiated by a petition under this Section.
14    (b) The legal voters of any precinct within a municipality
15with a population of over 500,000 may petition their local
16alderman, using a petition form made available online by the
17city clerk, to introduce an ordinance establishing the precinct
18as a restricted zone. Such petition shall specify whether it
19seeks an ordinance to prohibit, within the precinct: (i) home
20cultivation; (ii) one or more types of cannabis business
21establishments; or (iii) home cultivation and one or more types
22of cannabis business establishments.
23    Upon receiving a petition containing the signatures of at
24least 25% of the registered voters of the precinct, and
25concluding that the petition is legally sufficient following
26the posting and review process in subsection (c) of this

 

 

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1Section, the city clerk shall notify the local alderman of the
2ward in which the precinct is located. Upon being notified,
3that alderman, following an assessment of relevant factors
4within the precinct, including but not limited to, its
5geography, density and character, the prevalence of
6residentially zoned property, current licensed cannabis
7business establishments in the precinct, the current amount of
8home cultivation in the precinct, and the prevailing viewpoint
9with regard to the issue raised in the petition, may introduce
10an ordinance to the municipality's governing body creating a
11restricted cannabis zone in that precinct.
12    (c) A person seeking to initiate the petition process
13described in this Section shall first submit to the city clerk
14notice of intent to do so, on a form made available online by
15the city clerk. That notice shall include a description of the
16potentially affected area and the scope of the restriction
17sought. The city clerk shall publicly post the submitted notice
18online.
19    To be legally sufficient, a petition must contain the
20requisite number of valid signatures and all such signatures
21must be obtained within 90 days of the date that the city clerk
22publicly posts the notice of intent. Upon receipt, the city
23clerk shall post the petition on the municipality's website for
24a 30-day comment period. The city clerk is authorized to take
25all necessary and appropriate steps to verify the legal
26sufficiency of a submitted petition. Following the petition

 

 

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1review and comment period, the city clerk shall publicly post
2online the status of the petition as accepted or rejected, and
3if rejected, the reasons therefor. If the city clerk rejects a
4petition as legally insufficient, a minimum of 12 months must
5elapse from the time the city clerk posts the rejection notice
6before a new notice of intent for that same precinct may be
7submitted.
8    (d) Notwithstanding any law to the contrary, the
9municipality may enact an ordinance creating a restricted
10cannabis zone. The ordinance shall:
11        (1) identify the applicable precinct boundaries as of
12    the date of the petition;
13        (2) state whether the ordinance prohibits within the
14    defined boundaries of the precinct, and in what
15    combination: (A) one or more types of cannabis business
16    establishments; or (B) home cultivation;
17        (3) be in effect for 4 years, unless repealed earlier;
18    and
19        (4) once in effect, be subject to renewal by ordinance
20    at the expiration of the 4-year period without the need for
21    another supporting petition.
 
22    Section 55-30. Confidentiality.
23    (a) Information provided by the cannabis business
24establishment licensees or applicants to the Department of
25Agriculture, the Department of Public Health, the Department of

 

 

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1Financial and Professional Regulation, the Department of
2Commerce and Economic Opportunity, or other agency shall be
3limited to information necessary for the purposes of
4administering this Act. The information is subject to the
5provisions and limitations contained in the Freedom of
6Information Act and may be disclosed in accordance with Section
755-65.
8    (b) The following information received and records kept by
9the Department of Agriculture, the Department of Public Health,
10the Department of State Police, and the Department of Financial
11and Professional Regulation for purposes of administering this
12Article are subject to all applicable federal privacy laws, are
13confidential and exempt from disclosure under the Freedom of
14Information Act, except as provided in this Act, and not
15subject to disclosure to any individual or public or private
16entity, except to the Department of Financial and Professional
17Regulation, the Department of Agriculture, the Department of
18Public Health, and the Department of State Police as necessary
19to perform official duties under this Article. The following
20information received and kept by the Department of Financial
21and Professional Regulation or the Department of Agriculture,
22excluding any existing or non-existing Illinois or national
23criminal history record information, may be disclosed to the
24Department of Public Health, the Department of Agriculture, the
25Department of Revenue, or the Department of State Police upon
26request:

 

 

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1        (1) Applications and renewals, their contents, and
2    supporting information submitted by or on behalf of
3    dispensing organizations in compliance with this Article,
4    including their physical addresses;
5        (2) Any plans, procedures, policies, or other records
6    relating to dispensing organization security;
7        (3) Information otherwise exempt from disclosure by
8    State or federal law.
9    (c) The name and address of a dispensing organization
10licensed under this Act shall be subject to disclosure under
11the Freedom of Information Act. The name and cannabis business
12establishment address of the person or entity holding each
13cannabis business establishment license shall be subject to
14disclosure.
15    (d) All information collected by the Department of
16Financial and Professional Regulation in the course of an
17examination, inspection, or investigation of a licensee or
18applicant, including, but not limited to, any complaint against
19a licensee or applicant filed with the Department and
20information collected to investigate any such complaint, shall
21be maintained for the confidential use of the Department and
22shall not be disclosed, except as otherwise provided in the
23Act. A formal complaint against a licensee by the Department or
24any disciplinary order issued by the Department against a
25licensee or applicant shall be a public record, except as
26otherwise prohibited by law, as required by law, or as

 

 

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1necessary to enforce the provisions of this Act. Complaints
2from consumers or members of the general public received
3regarding a specific, named licensee or complaints regarding
4conduct by unlicensed entities shall be subject to disclosure
5under the Freedom of Information Act
6    (e) The Department of Agriculture, the Department of State
7Police, and the Department of Financial and Professional
8Regulation shall not share or disclose any existing or
9non-existing Illinois or national criminal history record
10information to any person or entity not expressly authorized by
11this Act. As used in this Section, "any existing or
12non-existing Illinois or national criminal history record
13information" means any Illinois or national criminal history
14record information, including but not limited to the lack of or
15non-existence of these records.
16    (f) Each Department responsible for licensure under this
17Act shall publish on the Department's website a list of the
18ownership information of cannabis business establishment
19licensees under the Department's jurisdiction. The list shall
20include, but is not limited to: the name of the person or
21entity holding each cannabis business establishment license;
22and the address at which the entity is operating under this
23Act. This list shall be published and updated monthly.
 
24    Section 55-35. Administrative rulemaking.
25    (a) No later than 180 days after the effective date of this

 

 

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1Act, the Department of Agriculture, the Department of State
2Police, the Department of Financial and Professional
3Regulation, the Department of Revenue, the Department of
4Commerce and Economic Opportunity, and the Treasurer's Office
5shall adopt permanent rules in accordance with their
6responsibilities under this Act. The Department of
7Agriculture, the Department of State Police, the Department of
8Financial and Professional Regulation, the Department of
9Revenue, and the Department of Commerce and Economic
10Opportunity may adopt rules necessary to regulate personal
11cannabis use through the use of emergency rulemaking in
12accordance with subsection (gg) of Section 5-45 of the Illinois
13Administrative Procedure Act. The General Assembly finds that
14the adoption of rules to regulate cannabis use is deemed an
15emergency and necessary for the public interest, safety, and
16welfare.
17    (b) The Department of Agriculture rules may address, but
18are not limited to, the following matters related to
19cultivation centers, craft growers, infuser organizations, and
20transporting organizations with the goal of protecting against
21diversion and theft, without imposing an undue burden on the
22cultivation centers, craft growers, infuser organizations, or
23transporting organizations:
24        (1) oversight requirements for cultivation centers,
25    craft growers, infuser organizations, and transporting
26    organizations;

 

 

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1        (2) recordkeeping requirements for cultivation
2    centers, craft growers, infuser organizations, and
3    transporting organizations;
4        (3) security requirements for cultivation centers,
5    craft growers, infuser organizations, and transporting
6    organizations, which shall include that each cultivation
7    center, craft grower, infuser organization, and
8    transporting organization location must be protected by a
9    fully operational security alarm system;
10        (4) standards for enclosed, locked facilities under
11    this Act;
12        (5) procedures for suspending or revoking the
13    identification cards of agents of cultivation centers,
14    craft growers, infuser organizations, and transporting
15    organizations that commit violations of this Act or the
16    rules adopted under this Section;
17        (6) rules concerning the intrastate transportation of
18    cannabis from a cultivation center, craft grower, infuser
19    organization, and transporting organization to a
20    dispensing organization;
21        (7) standards concerning the testing, quality,
22    cultivation, and processing of cannabis; and
23        (8) any other matters under oversight by the Department
24    of Agriculture as are necessary for the fair, impartial,
25    stringent, and comprehensive administration of this Act.
26    (c) The Department of Financial and Professional

 

 

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1Regulation rules may address, but are not limited to, the
2following matters related to dispensing organizations, with
3the goal of protecting against diversion and theft, without
4imposing an undue burden on the dispensing organizations:
5        (1) oversight requirements for dispensing
6    organizations;
7        (2) recordkeeping requirements for dispensing
8    organizations;
9        (3) security requirements for dispensing
10    organizations, which shall include that each dispensing
11    organization location must be protected by a fully
12    operational security alarm system;
13        (4) procedures for suspending or revoking the licenses
14    of dispensing organization agents that commit violations
15    of this Act or the rules adopted under this Act;
16        (5) any other matters under oversight by the Department
17    of Financial and Professional Regulation that are
18    necessary for the fair, impartial, stringent, and
19    comprehensive administration of this Act.
20    (d) The Department of Revenue rules may address, but are
21not limited to, the following matters related to the payment of
22taxes by cannabis business establishments:
23        (1) recording of sales;
24        (2) documentation of taxable income and expenses;
25        (3) transfer of funds for the payment of taxes; or
26        (4) any other matter under the oversight of the

 

 

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1    Department of Revenue.
2    (e) The Department of Commerce and Economic Opportunity
3rules may address, but are not limited to, a loan program or
4grant program to assist Social Equity Applicants access the
5capital needed to start a cannabis business establishment. The
6names of recipients and the amounts of any moneys received
7through a loan program or grant program shall be a public
8record.
9    (f) The Department of State Police rules may address
10enforcement of its authority under this Act. The Department of
11State Police shall not make rules that infringe on the
12exclusive authority of the Department of Financial and
13Professional Regulation or the Department of Agriculture over
14licensees under this Act.
15    (g) The Department of Public Health shall develop and
16disseminate:
17        (1) educational information about the health risks
18    associated with the use of cannabis; and
19        (2) one or more public education campaigns in
20    coordination with local health departments and community
21    organizations, including one or more prevention campaigns
22    directed at children, adolescents, parents, and pregnant
23    or breastfeeding women, to inform them of the potential
24    health risks associated with intentional or unintentional
25    cannabis use.
 

 

 

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1    Section 55-40. Enforcement.
2    (a) If the Department of Agriculture, Department of State
3Police, Department of Financial and Professional Regulation,
4Department of Commerce and Economic Opportunity, or Department
5of Revenue fails to adopt rules to implement this Act within
6the times provided in this Act, any citizen may commence a
7mandamus action in the circuit court to compel the agencies to
8perform the actions mandated under Section 55-35.
9    (b) If the Department of Agriculture or the Department of
10Financial and Professional Regulation fails to issue a valid
11agent identification card in response to a valid initial
12application or renewal application submitted under this Act or
13fails to issue a verbal or written notice of denial of the
14application within 30 days of its submission, the agent
15identification card is deemed granted and a copy of the agent
16identification initial application or renewal application
17shall be deemed a valid agent identification card.
18    (c) Authorized employees of State or local law enforcement
19agencies shall immediately notify the Department of
20Agriculture and the Department of Financial and Professional
21Regulation when any person in possession of an agent
22identification card has been convicted of or pled guilty to
23violating this Act.
 
24    Section 55-45. Administrative hearings.
25    (a) Administrative hearings related to the duties and

 

 

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1responsibilities assigned to the Department of Public Health
2shall be conducted under the Department of Public Health's
3rules governing administrative hearings.
4    (b) Administrative hearings related to the duties and
5responsibilities assigned to the Department of Financial and
6Professional Regulation and dispensing organization agents
7shall be conducted under the Department of Financial and
8Professional Regulation's rules governing administrative
9hearings.
10    (c) Administrative hearings related to the duties and
11responsibilities assigned to the Department of Agriculture,
12cultivation centers, or cultivation center agents shall be
13conducted under the Department of Agriculture's rules
14governing administrative hearings.
 
15    Section 55-50. Petition for rehearing. Within 20 days after
16the service of any order or decision of the Department of
17Public Health, the Department of Agriculture, the Department of
18Financial and Professional Regulation, or the Department of
19State Police upon any party to the proceeding, the party may
20apply for a rehearing in respect to any matters determined by
21them under this Act, except for decisions made under the
22Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser
23Excise Tax Law, the County Cannabis Retailers' Occupation Tax
24Law, and the Municipal Cannabis Retailers' Occupation Tax Law,
25which shall be governed by the provisions of those Laws. If a

 

 

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1rehearing is granted, an agency shall hold the rehearing and
2render a decision within 30 days from the filing of the
3application for rehearing with the agency. The time for holding
4such rehearing and rendering a decision may be extended for a
5period not to exceed 30 days, for good cause shown, and by
6notice in writing to all parties of interest. If an agency
7fails to act on the application for rehearing within 30 days,
8or the date the time for rendering a decision was extended for
9good cause shown, the order or decision of the agency is final.
10No action for the judicial review of any order or decision of
11an agency shall be allowed unless the party commencing such
12action has first filed an application for a rehearing and the
13agency has acted or failed to act upon the application. Only
14one rehearing may be granted by an agency on application of any
15one party.
 
16    Section 55-55. Review of administrative decisions. All
17final administrative decisions of the Department of Public
18Health, the Department of Agriculture, the Department of
19Financial and Professional Regulation, and the Department of
20State Police are subject to judicial review under the
21Administrative Review Law and the rules adopted under that Law.
22The term "administrative decision" is defined as in Section
233-101 of the Code of Civil Procedure.
 
24    Section 55-60. Suspension or revocation of a license.

 

 

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1    (a) The Department of Financial and Professional
2Regulation or the Department of Agriculture may suspend or
3revoke a license for a violation of this Act or a rule adopted
4in accordance with this Act by the Department of Agriculture
5and the Department of Financial and Professional Regulation.
6    (b) The Department of Agriculture and the Department of
7Financial and Professional Regulation may suspend or revoke an
8agent identification card for a violation of this Act or a rule
9adopted in accordance with this Act.
 
10    Section 55-65. Financial institutions.
11    (a) A financial institution that provides financial
12services customarily provided by financial institutions to a
13cannabis business establishment authorized under this Act or
14the Compassionate Use of Medical Cannabis Pilot Program Act, or
15to a person that is affiliated with such cannabis business
16establishment, is exempt from any criminal law of this State as
17it relates to cannabis-related conduct authorized under State
18law.
19    (b) Upon request of a financial institution, a cannabis
20business establishment or proposed cannabis business
21establishment may provide to the financial institution the
22following information:
23        (1) Whether a cannabis business establishment with
24    which the financial institution is doing or is considering
25    doing business holds a license under this Act or the

 

 

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1    Compassionate Use of Medical Cannabis Pilot Program Act;
2        (2) The name of any other business or individual
3    affiliate with the cannabis business establishment;
4        (3) A copy of the application, and any supporting
5    documentation submitted with the application, for a
6    license or a permit submitted on behalf of the proposed
7    cannabis business establishment;
8        (4) If applicable, data relating to sales and the
9    volume of product sold by the cannabis business
10    establishment;
11        (5) Any past or pending violation by the person of this
12    Act, the Compassionate Use of Medical Cannabis Pilot
13    Program Act, or the rules adopted under these Acts where
14    applicable; and
15        (6) Any penalty imposed upon the person for violating
16    this Act, the Compassionate Use of Medical Cannabis Pilot
17    Program Act, or the rules adopted under these Acts.
18    (c) (Blank).
19    (d) (Blank).
20    (e) Information received by a financial institution under
21this Section is confidential. Except as otherwise required or
22permitted by this Act, State law or rule, or federal law or
23regulation, a financial institution may not make the
24information available to any person other than:
25        (1) the customer to whom the information applies;
26        (2) a trustee, conservator, guardian, personal

 

 

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1    representative, or agent of the customer to whom the
2    information applies; a federal or State regulator when
3    requested in connection with an examination of the
4    financial institution or if otherwise necessary for
5    complying with federal or State law;
6        (3) a federal or State regulator when requested in
7    connection with an examination of the financial
8    institution or if otherwise necessary for complying with
9    federal or State law; and
10        (4) a third party performing services for the financial
11    institution, provided the third party is performing such
12    services under a written agreement that expressly or by
13    operation of law prohibits the third party's sharing and
14    use of such confidential information for any purpose other
15    than as provided in its agreement to provide services to
16    the financial institution.
 
17    Section 55-75. Contracts enforceable. It is the public
18policy of this State that contracts related to the operation of
19a lawful cannabis business establishment under this Act are
20enforceable. It is the public policy of this State that no
21contract entered into by a lawful cannabis business
22establishment or its agents on behalf of a cannabis business
23establishment, or by those who allow property to be used by a
24cannabis business establishment, shall be unenforceable on the
25basis that cultivating, obtaining, manufacturing, processing,

 

 

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1distributing, dispensing, transporting, selling, possessing,
2or using cannabis or hemp is prohibited by federal law.
 
3    Section 55-80. Annual reports.
4    (a) The Department of Financial and Professional
5Regulation shall submit to the General Assembly and Governor a
6report, by September 30 of each year, that does not disclose
7any information identifying information about cultivation
8centers, craft growers, infuser organizations, transporting
9organizations, or dispensing organizations, but does contain,
10at a minimum, all of the following information for the previous
11fiscal year:
12        (1) The number of licenses issued to dispensing
13    organizations by county, or, in counties with greater than
14    3,000,000 residents, by zip code;
15        (2) The total number of dispensing organization owners
16    that are Social Equity Applicants or minority persons,
17    women, or persons with disabilities as those terms are
18    defined in the Business Enterprise for Minorities, Women,
19    and Persons with Disabilities Act;
20        (3) The total number of revenues received from
21    dispensing organizations, segregated from revenues
22    received from dispensing organizations under the
23    Compassionate Use of Medical Cannabis Pilot Program Act by
24    county, separated by source of revenue;
25        (4) The total amount of revenue received from

 

 

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1    dispensing organizations that share a premises or majority
2    ownership with a craft grower;
3        (5) The total amount of revenue received from
4    dispensing organizations that share a premises or majority
5    ownership with an infuser; and
6        (6) An analysis of revenue generated from taxation,
7    licensing, and other fees for the State, including
8    recommendations to change the tax rate applied.
9    (b) The Department of Agriculture shall submit to the
10General Assembly and Governor a report, by September 30 of each
11year, that does not disclose any information identifying
12information about cultivation centers, craft growers, infuser
13organizations, transporting organizations, or dispensing
14organizations, but does contain, at a minimum, all of the
15following information for the previous fiscal year:
16        (1) The number of licenses issued to cultivation
17    centers, craft growers, infusers, and transporters by
18    license type, and, in counties with more than 3,000,000
19    residents, by zip code;
20        (2) The total number of cultivation centers, craft
21    growers, infusers, and transporters by license type that
22    are Social Equity Applicants or minority persons, women, or
23    persons with disabilities as those terms are defined in the
24    Business Enterprise for Minorities, Women, and Persons
25    with Disabilities Act;
26        (3) The total amount of revenue received from

 

 

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1    cultivation centers, craft growers, infusers, and
2    transporters, separated by license types and source of
3    revenue;
4        (4) The total amount of revenue received from craft
5    growers and infusers that share a premises or majority
6    ownership with a dispensing organization;
7        (5) The total amount of revenue received from craft
8    growers that share a premises or majority ownership with an
9    infuser, but do not share a premises or ownership with a
10    dispensary;
11        (6) The total amount of revenue received from infusers
12    that share a premises or majority ownership with a craft
13    grower, but do not share a premises or ownership with a
14    dispensary;
15        (7) The total amount of revenue received from craft
16    growers that share a premises or majority ownership with a
17    dispensing organization, but do not share a premises or
18    ownership with an infuser;
19        (8) The total amount of revenue received from infusers
20    that share a premises or majority ownership with a
21    dispensing organization, but do not share a premises or
22    ownership with a craft grower;
23        (9) The total amount of revenue received from
24    transporters; and
25        (10) An analysis of revenue generated from taxation,
26    licensing, and other fees for the State, including

 

 

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1    recommendations to change the tax rate applied.
2    (c) The Department of State Police shall submit to the
3General Assembly and Governor a report, by September 30 of each
4year that contains, at a minimum, all of the following
5information for the previous fiscal year:
6        (1) The effect of regulation and taxation of cannabis
7    on law enforcement resources;
8        (2) The impact of regulation and taxation of cannabis
9    on highway safety and rates of impaired driving, where
10    impairment was determined based on failure of a field
11    sobriety test;
12        (3) The available and emerging methods for detecting
13    the metabolites for delta-9-tetrahydrocannabinol in bodily
14    fluids, including, without limitation, blood and saliva;
15        (4) The effectiveness of current DUI laws and
16    recommendations for improvements to policy to better
17    ensure safe highways and fair laws.
18    (d) The Adult Use Cannabis Health Advisory Committee shall
19submit to the General Assembly and Governor a report, by
20September 30 of each year, that does not disclose any
21identifying information about any individuals, but does
22contain, at a minimum:
23        (1) Self-reported youth cannabis use, as published in
24    the most recent Illinois Youth Survey available;
25        (2) Self-reported adult cannabis use, as published in
26    the most recent Behavioral Risk Factor Surveillance Survey

 

 

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1    available;
2        (3) Hospital room admissions and hospital utilization
3    rates caused by cannabis consumption, including the
4    presence or detection of other drugs;
5        (4) Overdoses of cannabis and poison control data,
6    including the presence of other drugs that may have
7    contributed;
8        (5) Incidents of impaired driving caused by the
9    consumption of cannabis or cannabis products, including
10    the presence of other drugs or alcohol that may have
11    contributed to the impaired driving;
12        (6) Prevalence of infants born testing positive for
13    cannabis or delta-9-tetrahydrocannabinol, including
14    demographic and racial information on which infants are
15    tested;
16        (7) Public perceptions of use and risk of harm;
17        (8) Revenue collected from cannabis taxation and how
18    that revenue was used;
19        (9) Cannabis retail licenses granted and locations;
20        (10) Cannabis-related arrests; and
21        (11) The number of individuals completing required bud
22    tender training.
23    (e) Each agency or committee submitting reports under this
24Section may consult with one another in the preparation of each
25report.
 

 

 

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1    Section 55-85. Medical cannabis.
2    (a) Nothing in this Act shall be construed to limit any
3privileges or rights of a medical cannabis patient including
4minor patients, primary caregiver, medical cannabis
5cultivation center, or medical cannabis dispensing
6organization under the Compassionate Use of Medical Cannabis
7Pilot Program Act, and where there is conflict between this Act
8and the Compassionate Use of Medical Cannabis Pilot Program Act
9as they relate to medical cannabis patients, the Compassionate
10Use of Medical Cannabis Pilot Program Act shall prevail.
11    (b) Dispensary locations that obtain an Early Approval
12Adult Use Dispensary Organization License or an Adult Use
13Dispensary Organization License in accordance with this Act at
14the same location as a medical cannabis dispensing organization
15registered under the Compassionate Use of Medical Cannabis
16Pilot Program Act shall maintain an inventory of medical
17cannabis and medical cannabis products on a monthly basis that
18is substantially similar in variety and quantity to the
19products offered at the dispensary during the 6-month period
20immediately before the effective date of this Act.
21    (c) Beginning June 30, 2020, the Department of Agriculture
22shall make a quarterly determination whether inventory
23requirements established for dispensaries in subsection (b)
24should be adjusted due to changing patient need.
 
25    Section 55-90. Home rule preemption. Except as otherwise

 

 

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1provided in this Act, the regulation and licensing of the
2activities described in this Act are exclusive powers and
3functions of the State. Except as otherwise provided in this
4Act, a unit of local government, including a home rule unit,
5may not regulate or license the activities described in this
6Act. This Section is a denial and limitation of home rule
7powers and functions under subsection (h) of Section 6 of
8Article VII of the Illinois Constitution.
 
9    Section 55-95. Conflict of interest. A person is ineligible
10to apply for, hold, or own financial or voting interest in any
11cannabis business license under this Act if, within a 2-year
12period from the effective date of this Act, the person or his
13or her spouse or immediately family member was a member of the
14General Assembly or a State employee at an agency that
15regulates cannabis business establishment license holders who
16participated personally and substantially in the award of
17licenses under this Act. A person who violates this Section
18shall be guilty under subsection (b) of Section 50-5 of the
19State Officials and Employees Ethics Act.
 
20
ARTICLE 60.
21
CANNABIS CULTIVATION PRIVILEGE TAX

 
22    Section 60-1. Short title. This Article may be referred to
23as the Cannabis Cultivation Privilege Tax Law.
 

 

 

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1    Section 60-5. Definitions. In this Article:
2    "Cannabis" has the meaning given to that term in Article 1
3of this Act, except that it does not include cannabis that is
4subject to tax under the Compassionate Use of Medical Cannabis
5Pilot Program Act.
6    "Craft grower" has the meaning given to that term in
7Article 1 of this Act.
8    "Cultivation center" has the meaning given to that term in
9Article 1 of this Act.
10    "Cultivator" or "taxpayer" means a cultivation center or
11craft grower who is subject to tax under this Article.
12    "Department" means the Department of Revenue.
13    "Director" means the Director of Revenue.
14    "Dispensing organization" or "dispensary" has the meaning
15given to that term in Article 1 of this Act.
16    "Gross receipts" from the sales of cannabis by a cultivator
17means the total selling price or the amount of such sales, as
18defined in this Article. In the case of charges and time sales,
19the amount thereof shall be included only when payments are
20received by the cultivator.
21    "Person" means a natural individual, firm, partnership,
22association, joint stock company, joint adventure, public or
23private corporation, limited liability company, or a receiver,
24executor, trustee, guardian, or other representative appointed
25by order of any court.

 

 

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1    "Infuser" means "infuser organization" or "infuser" as
2defined in Article 1 of this Act.
3    "Selling price" or "amount of sale" means the consideration
4for a sale valued in money whether received in money or
5otherwise, including cash, credits, property, and services,
6and shall be determined without any deduction on account of the
7cost of the property sold, the cost of materials used, labor or
8service cost, or any other expense whatsoever, but does not
9include separately stated charges identified on the invoice by
10cultivators to reimburse themselves for their tax liability
11under this Article.
 
12    Section 60-10. Tax imposed.
13    (a) Beginning September 1, 2019, a tax is imposed upon the
14privilege of cultivating cannabis at the rate of 7% of the
15gross receipts from the first sale of cannabis by a cultivator.
16The sale of any product that contains any amount of cannabis or
17any derivative thereof is subject to the tax under this Section
18on the full selling price of the product. The Department may
19determine the selling price of the cannabis when the seller and
20purchaser are affiliated persons, when the sale and purchase of
21cannabis is not an arm's length transaction, or when cannabis
22is transferred by a craft grower to the craft grower's
23dispensing organization or infuser or processing organization
24and a value is not established for the cannabis. The value
25determined by the Department shall be commensurate with the

 

 

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1actual price received for products of like quality, character,
2and use in the area. If there are no sales of cannabis of like
3quality, character, and use in the same area, then the
4Department shall establish a reasonable value based on sales of
5products of like quality, character, and use in other areas of
6the State, taking into consideration any other relevant
7factors.
8    (b) The Cannabis Cultivation Privilege Tax imposed under
9this Article is solely the responsibility of the cultivator who
10makes the first sale and is not the responsibility of a
11subsequent purchaser, a dispensing organization, or an
12infuser. Persons subject to the tax imposed under this Article
13may, however, reimburse themselves for their tax liability
14hereunder by separately stating reimbursement for their tax
15liability as an additional charge.
16    (c) The tax imposed under this Article shall be in addition
17to all other occupation, privilege, or excise taxes imposed by
18the State of Illinois or by any unit of local government.
 
19    Section 60-15. Registration of cultivators. Every
20cultivator and craft grower subject to the tax under this
21Article shall apply to the Department of Revenue for a
22certificate of registration under this Article. All
23applications for registration under this Article shall be made
24by electronic means in the form and manner required by the
25Department. For that purpose, the provisions of Section 2a of

 

 

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1the Retailers' Occupation Tax Act are incorporated into this
2Article to the extent not inconsistent with this Article. In
3addition, no certificate of registration shall be issued under
4this Article unless the applicant is licensed under this Act.
 
5    Section 60-20. Return and payment of cannabis cultivation
6privilege tax. Each person who is required to pay the tax
7imposed by this Article shall make a return to the Department
8on or before the 20th day of each month for the preceding
9calendar month stating the following:
10        (1) the taxpayer's name;
11        (2) the address of the taxpayer's principal place of
12    business and the address of the principal place of business
13    (if that is a different address) from which the taxpayer is
14    engaged in the business of cultivating cannabis subject to
15    tax under this Article;
16        (3) the total amount of receipts received by the
17    taxpayer during the preceding calendar month from sales of
18    cannabis subject to tax under this Article by the taxpayer
19    during the preceding calendar month;
20        (4) the total amount received by the taxpayer during
21    the preceding calendar month on charge and time sales of
22    cannabis subject to tax imposed under this Article by the
23    taxpayer before the month for which the return is filed;
24        (5) deductions allowed by law;
25        (6) gross receipts that were received by the taxpayer

 

 

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1    during the preceding calendar month and upon the basis of
2    which the tax is imposed;
3        (7) the amount of tax due;
4        (8) the signature of the taxpayer; and
5        (9) any other information as the Department may
6    reasonably require.
7    All returns required to be filed and payments required to
8be made under this Article shall be by electronic means.
9Taxpayers who demonstrate hardship in paying electronically
10may petition the Department to waive the electronic payment
11requirement. The Department may require a separate return for
12the tax under this Article or combine the return for the tax
13under this Article with the return for the tax under the
14Compassionate Use of Medical Cannabis Pilot Program Act. If the
15return for the tax under this Article is combined with the
16return for tax under the Compassionate Use of Medical Cannabis
17Pilot Program Act, then the vendor's discount allowed under
18this Section and any cap on that discount shall apply to the
19combined return. The taxpayer making the return provided for in
20this Section shall also pay to the Department, in accordance
21with this Section, the amount of tax imposed by this Article,
22less a discount of 1.75%, but not to exceed $1,000 per return
23period, which is allowed to reimburse the taxpayer for the
24expenses incurred in keeping records, collecting tax,
25preparing and filing returns, remitting the tax, and supplying
26data to the Department upon request. No discount may be claimed

 

 

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1by a taxpayer on returns not timely filed and for taxes not
2timely remitted. No discount may be claimed by a taxpayer for
3any return that is not filed electronically. No discount may be
4claimed by a taxpayer for any payment that is not made
5electronically, unless a waiver has been granted under this
6Section. Any amount that is required to be shown or reported on
7any return or other document under this Article shall, if the
8amount is not a whole-dollar amount, be increased to the
9nearest whole-dollar amount if the fractional part of a dollar
10is $0.50 or more and decreased to the nearest whole-dollar
11amount if the fractional part of a dollar is less than $0.50.
12If a total amount of less than $1 is payable, refundable, or
13creditable, the amount shall be disregarded if it is less than
14$0.50 and shall be increased to $1 if it is $0.50 or more.
15Notwithstanding any other provision of this Article concerning
16the time within which a taxpayer may file a return, any such
17taxpayer who ceases to engage in the kind of business that
18makes the person responsible for filing returns under this
19Article shall file a final return under this Article with the
20Department within one month after discontinuing such business.
21    Each taxpayer under this Article shall make estimated
22payments to the Department on or before the 7th, 15th, 22nd,
23and last day of the month during which tax liability to the
24Department is incurred. The payments shall be in an amount not
25less than the lower of either 22.5% of the taxpayer's actual
26tax liability for the month or 25% of the taxpayer's actual tax

 

 

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1liability for the same calendar month of the preceding year.
2The amount of the quarter-monthly payments shall be credited
3against the final tax liability of the taxpayer's return for
4that month. If any quarter-monthly payment is not paid at the
5time or in the amount required by this Section, then the
6taxpayer shall be liable for penalties and interest on the
7difference between the minimum amount due as a payment and the
8amount of the quarter-monthly payment actually and timely paid,
9except insofar as the taxpayer has previously made payments for
10that month to the Department in excess of the minimum payments
11previously due as provided in this Section.
12    If any payment provided for in this Section exceeds the
13taxpayer's liabilities under this Article, as shown on an
14original monthly return, the Department shall, if requested by
15the taxpayer, issue to the taxpayer a credit memorandum no
16later than 30 days after the date of payment. The credit
17evidenced by the credit memorandum may be assigned by the
18taxpayer to a similar taxpayer under this Act, in accordance
19with reasonable rules to be prescribed by the Department. If no
20such request is made, the taxpayer may credit the excess
21payment against tax liability subsequently to be remitted to
22the Department under this Act, in accordance with reasonable
23rules prescribed by the Department. If the Department
24subsequently determines that all or any part of the credit
25taken was not actually due to the taxpayer, the taxpayer's
26discount shall be reduced, if necessary, to reflect the

 

 

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1difference between the credit taken and that actually due, and
2that taxpayer shall be liable for penalties and interest on the
3difference.
4    If a taxpayer fails to sign a return within 30 days after
5the proper notice and demand for signature by the Department is
6received by the taxpayer, the return shall be considered valid
7and any amount shown to be due on the return shall be deemed
8assessed.
 
9    Section 60-25. Infuser information returns. If it is deemed
10necessary for the administration of this Article, the
11Department may adopt rules that require infusers to file
12information returns regarding the sale of cannabis by infusers
13to dispensaries. The Department may require infusers to file
14all information returns by electronic means.
 
15    Section 60-30. Deposit of proceeds. All moneys received by
16the Department under this Article shall be deposited into the
17Cannabis Regulation Fund.
 
18    Section 60-35. Department administration and enforcement.
19The Department shall have full power to administer and enforce
20this Article, to collect all taxes, penalties, and interest due
21hereunder, to dispose of taxes, penalties and interest so
22collected in the manner hereinafter provided, and to determine
23all rights to credit memoranda, arising on account of the

 

 

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1erroneous payment of tax, penalty, or interest hereunder. In
2the administration of, and compliance with, this Article, the
3Department and persons who are subject to this Article shall
4have the same rights, remedies, privileges, immunities,
5powers, and duties, and be subject to the same conditions,
6restrictions, limitations, penalties, and definitions of
7terms, and employ the same modes of procedure, as are
8prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,
95d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,
1012, and 13 of the Retailers' Occupation Tax Act and all of the
11provisions of the Uniform Penalty and Interest Act, which are
12not inconsistent with this Article, as fully as if those
13provisions were set forth herein. For purposes of this Section,
14references in the Retailers' Occupation Tax Act to a "sale of
15tangible personal property at retail" mean the "sale of
16cannabis by a cultivator".
 
17    Section 60-40. Invoices. Every sales invoice for cannabis
18issued by a cultivator to a cannabis business establishment
19shall contain the cultivator's certificate of registration
20number assigned under this Article, date, invoice number,
21purchaser's name and address, selling price, amount of
22cannabis, concentrate, or cannabis-infused product, and any
23other reasonable information as the Department may provide by
24rule is necessary for the administration of this Article.
25Cultivators shall retain the invoices for inspection by the

 

 

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1Department.
 
2    Section 60-45. Rules. The Department may adopt rules
3related to the enforcement of this Article.
 
4
ARTICLE 65.
5
CANNABIS PURCHASER EXCISE TAX

 
6    Section 65-1. Short title. This Article may be referred to
7as the Cannabis Purchaser Excise Tax Law.
 
8    Section 65-5. Definitions. In this Article:
9    "Adjusted delta-9-tetrahydrocannabinol level" means, for a
10delta-9-tetrahydrocannabinol dominant product, the sum of the
11percentage of delta-9-tetrahydrocannabinol plus .877
12multiplied by the percentage of tetrahydrocannabinolic acid.
13    "Cannabis" has the meaning given to that term in Article 1
14of this Act, except that it does not include cannabis that is
15subject to tax under the Compassionate Use of Medical Cannabis
16Pilot Program Act.
17    "Cannabis-infused product" means beverage food, oils,
18ointments, tincture, topical formulation, or another product
19containing cannabis that is not intended to be smoked.
20    "Cannabis retailer" means a dispensing organization that
21sells cannabis for use and not for resale.
22    "Craft grower" has the meaning given to that term in

 

 

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1Article 1 of this Act.
2    "Department" means the Department of Revenue.
3    "Director" means the Director of Revenue.
4    "Dispensing organization" or "dispensary" has the meaning
5given to that term in Article 1 of this Act.
6    "Person" means a natural individual, firm, partnership,
7association, joint stock company, joint adventure, public or
8private corporation, limited liability company, or a receiver,
9executor, trustee, guardian, or other representative appointed
10by order of any court.
11    "Infuser organization" or "infuser" means a facility
12operated by an organization or business that is licensed by the
13Department of Agriculture to directly incorporate cannabis or
14cannabis concentrate into a product formulation to produce a
15cannabis-infused product.
16    "Purchase price" means the consideration paid for a
17purchase of cannabis, valued in money, whether received in
18money or otherwise, including cash, gift cards, credits, and
19property and shall be determined without any deduction on
20account of the cost of materials used, labor or service costs,
21or any other expense whatsoever. However, "purchase price" does
22not include consideration paid for:
23        (1) any charge for a payment that is not honored by a
24    financial institution;
25        (2) any finance or credit charge, penalty or charge for
26    delayed payment, or discount for prompt payment; and

 

 

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1        (3) any amounts added to a purchaser's bill because of
2    charges made under the tax imposed by this Article, the
3    Municipal Cannabis Retailers' Occupation Tax Law, the
4    County Cannabis Retailers' Occupation Tax Law, the
5    Retailers' Occupation Tax Act, the Use Tax Act, the Service
6    Occupation Tax Act, the Service Use Tax Act, or any locally
7    imposed occupation or use tax.
8    "Purchaser" means a person who acquires cannabis for a
9valuable consideration.
10    "Taxpayer" means a cannabis retailer who is required to
11collect the tax imposed under this Article.
 
12    Section 65-10. Tax imposed.
13    (a) Beginning January 1, 2020, a tax is imposed upon
14purchasers for the privilege of using cannabis at the following
15rates:
16        (1) Any cannabis, other than a cannabis-infused
17    product, with an adjusted delta-9-tetrahydrocannabinol
18    level at or below 35% shall be taxed at a rate of 10% of the
19    purchase price;
20        (2) Any cannabis, other than a cannabis-infused
21    product, with an adjusted delta-9-tetrahydrocannabinol
22    level above 35% shall be taxed at a rate of 25% of the
23    purchase price; and
24        (3) A cannabis-infused product shall be taxed at a rate
25    of 20% of the purchase price.

 

 

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1    (b) The purchase of any product that contains any amount of
2cannabis or any derivative thereof is subject to the tax under
3subsection (a) of this Section on the full purchase price of
4the product.
5    (c) The tax imposed under this Section is not imposed on
6cannabis that is subject to tax under the Compassionate Use of
7Medical Cannabis Pilot Program Act. The tax imposed by this
8Section is not imposed with respect to any transaction in
9interstate commerce, to the extent the transaction may not,
10under the Constitution and statutes of the United States, be
11made the subject of taxation by this State.
12    (d) The tax imposed under this Article shall be in addition
13to all other occupation, privilege, or excise taxes imposed by
14the State of Illinois or by any municipal corporation or
15political subdivision thereof.
16    (e) The tax imposed under this Article shall not be imposed
17on any purchase by a purchaser if the cannabis retailer is
18prohibited by federal or State Constitution, treaty,
19convention, statute, or court decision from collecting the tax
20from the purchaser.
 
21    Section 65-11. Bundling of taxable and nontaxable items;
22prohibition; taxation. If a cannabis retailer sells cannabis,
23concentrate, or cannabis-infused products in combination or
24bundled with items that are not subject to tax under this Act
25for one price in violation of the prohibition on this activity

 

 

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1under Section 15-70, then the tax under this Act is imposed on
2the purchase price of the entire bundled product.
 
3    Section 65-15. Collection of tax.
4    (a) The tax imposed by this Article shall be collected from
5the purchaser by the cannabis retailer at the rate stated in
6Section 65-10 with respect to cannabis sold by the cannabis
7retailer to the purchaser, and shall be remitted to the
8Department as provided in Section 65-30. All sales to a
9purchaser who is not a cardholder under the Compassionate Use
10of Medical Cannabis Pilot Program Act are presumed subject to
11tax collection. Cannabis retailers shall collect the tax from
12purchasers by adding the tax to the amount of the purchase
13price received from the purchaser for selling cannabis to the
14purchaser. The tax imposed by this Article shall, when
15collected, be stated as a distinct item separate and apart from
16the purchase price of the cannabis.
17    (b) If a cannabis retailer collects Cannabis Purchaser
18Excise Tax measured by a purchase price that is not subject to
19Cannabis Purchaser Excise Tax, or if a cannabis retailer, in
20collecting Cannabis Purchaser Excise Tax measured by a purchase
21price that is subject to tax under this Act, collects more from
22the purchaser than the required amount of the Cannabis
23Purchaser Excise Tax on the transaction, the purchaser shall
24have a legal right to claim a refund of that amount from the
25cannabis retailer. If, however, that amount is not refunded to

 

 

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1the purchaser for any reason, the cannabis retailer is liable
2to pay that amount to the Department.
3    (c) Any person purchasing cannabis subject to tax under
4this Article as to which there has been no charge made to him
5or her of the tax imposed by Section 65-10 shall make payment
6of the tax imposed by Section 65-10 in the form and manner
7provided by the Department not later than the 20th day of the
8month following the month of purchase of the cannabis.
 
9    Section 65-20. Registration of cannabis retailers. Every
10cannabis retailer required to collect the tax under this
11Article shall apply to the Department for a certificate of
12registration under this Article. All applications for
13registration under this Article shall be made by electronic
14means in the form and manner required by the Department. For
15that purpose, the provisions of Section 2a of the Retailers'
16Occupation Tax Act are incorporated into this Article to the
17extent not inconsistent with this Article. In addition, no
18certificate of registration shall be issued under this Article
19unless the applicant is licensed under this Act.
 
20    Section 65-25. Tax collected as debt owed to State. Any
21cannabis retailer required to collect the tax imposed by this
22Article shall be liable to the Department for the tax, whether
23or not the tax has been collected by the cannabis retailer, and
24any such tax shall constitute a debt owed by the cannabis

 

 

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1retailer to this State. To the extent that a cannabis retailer
2required to collect the tax imposed by this Act has actually
3collected that tax, the tax is held in trust for the benefit of
4the Department.
 
5    Section 65-30. Return and payment of tax by cannabis
6retailer. Each cannabis retailer that is required or authorized
7to collect the tax imposed by this Article shall make a return
8to the Department, by electronic means, on or before the 20th
9day of each month for the preceding calendar month stating the
10following:
11        (1) the cannabis retailer's name;
12        (2) the address of the cannabis retailer's principal
13    place of business and the address of the principal place of
14    business (if that is a different address) from which the
15    cannabis retailer engaged in the business of selling
16    cannabis subject to tax under this Article;
17        (3) the total purchase price received by the cannabis
18    retailer for cannabis subject to tax under this Article;
19        (4) the amount of tax due at each rate;
20        (5) the signature of the cannabis retailer; and
21        (6) any other information as the Department may
22    reasonably require.
23    All returns required to be filed and payments required to
24be made under this Article shall be by electronic means.
25Cannabis retailers who demonstrate hardship in paying

 

 

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1electronically may petition the Department to waive the
2electronic payment requirement.
3    Any amount that is required to be shown or reported on any
4return or other document under this Article shall, if the
5amount is not a whole-dollar amount, be increased to the
6nearest whole-dollar amount if the fractional part of a dollar
7is $0.50 or more and decreased to the nearest whole-dollar
8amount if the fractional part of a dollar is less than $0.50.
9If a total amount of less than $1 is payable, refundable, or
10creditable, the amount shall be disregarded if it is less than
11$0.50 and shall be increased to $1 if it is $0.50 or more.
12    The cannabis retailer making the return provided for in
13this Section shall also pay to the Department, in accordance
14with this Section, the amount of tax imposed by this Article,
15less a discount of 1.75%, but not to exceed $1,000 per return
16period, which is allowed to reimburse the cannabis retailer for
17the expenses incurred in keeping records, collecting tax,
18preparing and filing returns, remitting the tax, and supplying
19data to the Department upon request. No discount may be claimed
20by a cannabis retailer on returns not timely filed and for
21taxes not timely remitted. No discount may be claimed by a
22taxpayer for any return that is not filed electronically. No
23discount may be claimed by a taxpayer for any payment that is
24not made electronically, unless a waiver has been granted under
25this Section.
26    Notwithstanding any other provision of this Article

 

 

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1concerning the time within which a cannabis retailer may file a
2return, any such cannabis retailer who ceases to engage in the
3kind of business that makes the person responsible for filing
4returns under this Article shall file a final return under this
5Article with the Department within one month after
6discontinuing the business.
7    Each cannabis retailer shall make estimated payments to the
8Department on or before the 7th, 15th, 22nd, and last day of
9the month during which tax liability to the Department is
10incurred. The payments shall be in an amount not less than the
11lower of either 22.5% of the cannabis retailer's actual tax
12liability for the month or 25% of the cannabis retailer's
13actual tax liability for the same calendar month of the
14preceding year. The amount of the quarter-monthly payments
15shall be credited against the final tax liability of the
16cannabis retailer's return for that month. If any such
17quarter-monthly payment is not paid at the time or in the
18amount required by this Section, then the cannabis retailer
19shall be liable for penalties and interest on the difference
20between the minimum amount due as a payment and the amount of
21the quarter-monthly payment actually and timely paid, except
22insofar as the cannabis retailer has previously made payments
23for that month to the Department in excess of the minimum
24payments previously due as provided in this Section.
25    If any payment provided for in this Section exceeds the
26taxpayer's liabilities under this Article, as shown on an

 

 

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1original monthly return, the Department shall, if requested by
2the taxpayer, issue to the taxpayer a credit memorandum no
3later than 30 days after the date of payment. The credit
4evidenced by the credit memorandum may be assigned by the
5taxpayer to a similar taxpayer under this Article, in
6accordance with reasonable rules to be prescribed by the
7Department. If no such request is made, the taxpayer may credit
8the excess payment against tax liability subsequently to be
9remitted to the Department under this Article, in accordance
10with reasonable rules prescribed by the Department. If the
11Department subsequently determines that all or any part of the
12credit taken was not actually due to the taxpayer, the
13taxpayer's discount shall be reduced, if necessary, to reflect
14the difference between the credit taken and that actually due,
15and that taxpayer shall be liable for penalties and interest on
16the difference. If a cannabis retailer fails to sign a return
17within 30 days after the proper notice and demand for signature
18by the Department is received by the cannabis retailer, the
19return shall be considered valid and any amount shown to be due
20on the return shall be deemed assessed.
 
21    Section 65-35. Deposit of proceeds. All moneys received by
22the Department under this Article shall be paid into the
23Cannabis Regulation Fund.
 
24    Section 65-36. Recordkeeping; books and records.

 

 

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1    (a) Every retailer of cannabis, whether or not the retailer
2has obtained a certificate of registration under Section 65-20,
3shall keep complete and accurate records of cannabis held,
4purchased, sold, or otherwise disposed of, and shall preserve
5and keep all invoices, bills of lading, sales records, and
6copies of bills of sale, returns, and other pertinent papers
7and documents relating to the purchase, sale, or disposition of
8cannabis. Such records need not be maintained on the licensed
9premises but must be maintained in the State of Illinois.
10However, all original invoices or copies thereof covering
11purchases of cannabis must be retained on the licensed premises
12for a period of 90 days after such purchase, unless the
13Department has granted a waiver in response to a written
14request in cases where records are kept at a central business
15location within the State of Illinois. The Department shall
16adopt rules regarding the eligibility for a waiver, revocation
17of a waiver, and requirements and standards for maintenance and
18accessibility of records located at a central location under a
19waiver provided under this Section.
20    (b) Books, records, papers, and documents that are required
21by this Article to be kept shall, at all times during the usual
22business hours of the day, be subject to inspection by the
23Department or its duly authorized agents and employees. The
24books, records, papers, and documents for any period with
25respect to which the Department is authorized to issue a notice
26of tax liability shall be preserved until the expiration of

 

 

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1that period.
 
2    Section 65-38. Violations and penalties.
3    (a) When the amount due is under $300, any retailer of
4cannabis who fails to file a return, willfully fails or refuses
5to make any payment to the Department of the tax imposed by
6this Article, or files a fraudulent return, or any officer or
7agent of a corporation engaged in the business of selling
8cannabis to purchasers located in this State who signs a
9fraudulent return filed on behalf of the corporation, or any
10accountant or other agent who knowingly enters false
11information on the return of any taxpayer under this Article is
12guilty of a Class 4 felony.
13    (b) When the amount due is $300 or more, any retailer of
14cannabis who files, or causes to be filed, a fraudulent return,
15or any officer or agent of a corporation engaged in the
16business of selling cannabis to purchasers located in this
17State who files or causes to be filed or signs or causes to be
18signed a fraudulent return filed on behalf of the corporation,
19or any accountant or other agent who knowingly enters false
20information on the return of any taxpayer under this Article is
21guilty of a Class 3 felony.
22    (c) Any person who violates any provision of Section 65-20,
23fails to keep books and records as required under this Article,
24or willfully violates a rule of the Department for the
25administration and enforcement of this Article is guilty of a

 

 

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1Class 4 felony. A person commits a separate offense on each day
2that he or she engages in business in violation of Section
365-20 or a rule of the Department for the administration and
4enforcement of this Article. If a person fails to produce the
5books and records for inspection by the Department upon
6request, a prima facie presumption shall arise that the person
7has failed to keep books and records as required under this
8Article. A person who is unable to rebut this presumption is in
9violation of this Article and is subject to the penalties
10provided in this Section.
11    (d) Any person who violates any provision of Sections
1265-20, fails to keep books and records as required under this
13Article, or willfully violates a rule of the Department for the
14administration and enforcement of this Article, is guilty of a
15business offense and may be fined up to $5,000. If a person
16fails to produce books and records for inspection by the
17Department upon request, a prima facie presumption shall arise
18that the person has failed to keep books and records as
19required under this Article. A person who is unable to rebut
20this presumption is in violation of this Article and is subject
21to the penalties provided in this Section. A person commits a
22separate offense on each day that he or she engages in business
23in violation of Section 65-20.
24    (e) Any taxpayer or agent of a taxpayer who with the intent
25to defraud purports to make a payment due to the Department by
26issuing or delivering a check or other order upon a real or

 

 

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1fictitious depository for the payment of money, knowing that it
2will not be paid by the depository, is guilty of a deceptive
3practice in violation of Section 17-1 of the Criminal Code of
42012.
5    (f) Any person who fails to keep books and records or fails
6to produce books and records for inspection, as required by
7Section 65-36, is liable to pay to the Department, for deposit
8in the Tax Compliance and Administration Fund, a penalty of
9$1,000 for the first failure to keep books and records or
10failure to produce books and records for inspection, as
11required by Section 65-36, and $3,000 for each subsequent
12failure to keep books and records or failure to produce books
13and records for inspection, as required by Section 65-36.
14    (g) Any person who knowingly acts as a retailer of cannabis
15in this State without first having obtained a certificate of
16registration to do so in compliance with Section 65-20 of this
17Article shall be guilty of a Class 4 felony.
18    (h) A person commits the offense of tax evasion under this
19Article when he or she knowingly attempts in any manner to
20evade or defeat the tax imposed on him or her or on any other
21person, or the payment thereof, and he or she commits an
22affirmative act in furtherance of the evasion. As used in this
23Section, "affirmative act in furtherance of the evasion" means
24an act designed in whole or in part to (i) conceal,
25misrepresent, falsify, or manipulate any material fact or (ii)
26tamper with or destroy documents or materials related to a

 

 

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1person's tax liability under this Article. Two or more acts of
2sales tax evasion may be charged as a single count in any
3indictment, information, or complaint and the amount of tax
4deficiency may be aggregated for purposes of determining the
5amount of tax that is attempted to be or is evaded and the
6period between the first and last acts may be alleged as the
7date of the offense.
8        (1) When the amount of tax, the assessment or payment
9    of which is attempted to be or is evaded is less than $500,
10    a person is guilty of a Class 4 felony.
11        (2) When the amount of tax, the assessment or payment
12    of which is attempted to be or is evaded is $500 or more
13    but less than $10,000, a person is guilty of a Class 3
14    felony.
15        (3) When the amount of tax, the assessment or payment
16    of which is attempted to be or is evaded is $10,000 or more
17    but less than $100,000, a person is guilty of a Class 2
18    felony.
19        (4) When the amount of tax, the assessment or payment
20    of which is attempted to be or is evaded is $100,000 or
21    more, a person is guilty of a Class 1 felony.
22    Any person who knowingly sells, purchases, installs,
23transfers, possesses, uses, or accesses any automated sales
24suppression device, zapper, or phantom-ware in this State is
25guilty of a Class 3 felony.
26    As used in this Section:

 

 

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1    "Automated sales suppression device" or "zapper" means a
2software program that falsifies the electronic records of an
3electronic cash register or other point-of-sale system,
4including, but not limited to, transaction data and transaction
5reports. The term includes the software program, any device
6that carries the software program, or an Internet link to the
7software program.
8    "Phantom-ware" means a hidden programming option embedded
9in the operating system of an electronic cash register or
10hardwired into an electronic cash register that can be used to
11create a second set of records or that can eliminate or
12manipulate transaction records in an electronic cash register.
13    "Electronic cash register" means a device that keeps a
14register or supporting documents through the use of an
15electronic device or computer system designed to record
16transaction data for the purpose of computing, compiling, or
17processing retail sales transaction data in any manner.
18    "Transaction data" includes: items purchased by a
19purchaser; the price of each item; a taxability determination
20for each item; a segregated tax amount for each taxed item; the
21amount of cash or credit tendered; the net amount returned to
22the customer in change; the date and time of the purchase; the
23name, address, and identification number of the vendor; and the
24receipt or invoice number of the transaction.
25    "Transaction report" means a report that documents,
26without limitation, the sales, taxes, or fees collected, media

 

 

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1totals, and discount voids at an electronic cash register and
2that is printed on a cash register tape at the end of a day or
3shift, or a report that documents every action at an electronic
4cash register and is stored electronically.
5    A prosecution for any act in violation of this Section may
6be commenced at any time within 5 years of the commission of
7that act.
8    (i) The Department may adopt rules to administer the
9penalties under this Section.
10    (j) Any person whose principal place of business is in this
11State and who is charged with a violation under this Section
12shall be tried in the county where his or her principal place
13of business is located unless he or she asserts a right to be
14tried in another venue.
15    (k) Except as otherwise provided in subsection (h), a
16prosecution for a violation described in this Section may be
17commenced within 3 years after the commission of the act
18constituting the violation.
 
19    Section 65-40. Department administration and enforcement.
20The Department shall have full power to administer and enforce
21this Article, to collect all taxes and penalties due hereunder,
22to dispose of taxes and penalties so collected in the manner
23hereinafter provided, and to determine all rights to credit
24memoranda, arising on account of the erroneous payment of tax
25or penalty hereunder.

 

 

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1    In the administration of, and compliance with, this
2Article, the Department and persons who are subject to this
3Article shall have the same rights, remedies, privileges,
4immunities, powers, and duties, and be subject to the same
5conditions, restrictions, limitations, penalties, and
6definitions of terms, and employ the same modes of procedure,
7as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,
812a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and
9Sections 1, 2-12, 2b, 4 (except that the time limitation
10provisions shall run from the date when the tax is due rather
11than from the date when gross receipts are received), 5 (except
12that the time limitation provisions on the issuance of notices
13of tax liability shall run from the date when the tax is due
14rather than from the date when gross receipts are received and
15except that in the case of a failure to file a return required
16by this Act, no notice of tax liability shall be issued on and
17after each July 1 and January 1 covering tax due with that
18return during any month or period more than 6 years before that
19July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
205h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'
21Occupation Tax Act and all of the provisions of the Uniform
22Penalty and Interest Act, which are not inconsistent with this
23Article, as fully as if those provisions were set forth herein.
24References in the incorporated Sections of the Retailers'
25Occupation Tax Act and the Use Tax Act to retailers, to
26sellers, or to persons engaged in the business of selling

 

 

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1tangible personal property mean cannabis retailers when used in
2this Article. References in the incorporated Sections to sales
3of tangible personal property mean sales of cannabis subject to
4tax under this Article when used in this Article.
 
5    Section 65-41. Arrest; search and seizure without warrant.
6Any duly authorized employee of the Department: (i) may arrest
7without warrant any person committing in his or her presence a
8violation of any of the provisions of this Article; (ii) may
9without a search warrant inspect all cannabis located in any
10place of business; (iii) may seize any cannabis in the
11possession of the retailer in violation of this Act; and (iv)
12may seize any cannabis on which the tax imposed by Article 60
13of this Act has not been paid. The cannabis so seized is
14subject to confiscation and forfeiture as provided in Sections
1565-42 and 65-43.
 
16    Section 65-42. Seizure and forfeiture. After seizing any
17cannabis as provided in Section 65-41, the Department must hold
18a hearing and determine whether the retailer was properly
19registered to sell the cannabis at the time of its seizure by
20the Department. The Department shall give not less than 20
21days' notice of the time and place of the hearing to the owner
22of the cannabis, if the owner is known, and also to the person
23in whose possession the cannabis was found, if that person is
24known and if the person in possession is not the owner of the

 

 

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1cannabis. If neither the owner nor the person in possession of
2the cannabis is known, the Department must cause publication of
3the time and place of the hearing to be made at least once in
4each week for 3 weeks successively in a newspaper of general
5circulation in the county where the hearing is to be held.
6    If, as the result of the hearing, the Department determines
7that the retailer was not properly registered at the time the
8cannabis was seized, the Department must enter an order
9declaring the cannabis confiscated and forfeited to the State,
10to be held by the Department for disposal by it as provided in
11Section 65-43. The Department must give notice of the order to
12the owner of the cannabis, if the owner is known, and also to
13the person in whose possession the cannabis was found, if that
14person is known and if the person in possession is not the
15owner of the cannabis. If neither the owner nor the person in
16possession of the cannabis is known, the Department must cause
17publication of the order to be made at least once in each week
18for 3 weeks successively in a newspaper of general circulation
19in the county where the hearing was held.
 
20    Section 65-43. Search warrant; issuance and return;
21process; confiscation of cannabis; forfeitures.
22    (a) If a peace officer of this State or any duly authorized
23officer or employee of the Department has reason to believe
24that any violation of this Article or a rule of the Department
25for the administration and enforcement of this Article has

 

 

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1occurred and that the person violating this Article or rule has
2in that person's possession any cannabis in violation of this
3Article or a rule of the Department for the administration and
4enforcement of this Article, that peace officer or officer or
5employee of the Department may file or cause to be filed his or
6her complaint in writing, verified by affidavit, with any court
7within whose jurisdiction the premises to be searched are
8situated, stating the facts upon which the belief is founded,
9the premises to be searched, and the property to be seized, and
10procure a search warrant and execute that warrant. Upon the
11execution of the search warrant, the peace officer, or officer
12or employee of the Department, executing the search warrant
13shall make due return of the warrant to the court issuing the
14warrant, together with an inventory of the property taken under
15the warrant. The court must then issue process against the
16owner of the property if the owner is known; otherwise, process
17must be issued against the person in whose possession the
18property is found, if that person is known. In case of
19inability to serve process upon the owner or the person in
20possession of the property at the time of its seizure, notice
21of the proceedings before the court must be given in the same
22manner as required by the law governing cases of attachment.
23Upon the return of the process duly served or upon the posting
24or publishing of notice made, as appropriate, the court or
25jury, if a jury is demanded, shall proceed to determine whether
26the property so seized was held or possessed in violation of

 

 

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1this Article or a rule of the Department for the administration
2and enforcement of this Article. If a violation is found,
3judgment shall be entered confiscating the property and
4forfeiting it to the State and ordering its delivery to the
5Department. In addition, the court may tax and assess the costs
6of the proceedings.
7    (b) When any cannabis has been declared forfeited to the
8State by the Department, as provided in Section 65-42 and this
9Section, and when all proceedings for the judicial review of
10the Department's decision have terminated, the Department
11shall, to the extent that its decision is sustained on review,
12destroy or maintain and use such cannabis in an undercover
13capacity.
14    (c) The Department may, before any destruction of cannabis,
15permit the true holder of trademark rights in the cannabis to
16inspect such cannabis in order to assist the Department in any
17investigation regarding such cannabis.
 
18    Section 65-45. Cannabis retailers; purchase and possession
19of cannabis. Cannabis retailers shall purchase cannabis for
20resale only from cannabis business establishments as
21authorized by this Act.
 
22    Section 65-50. Rulemaking. The Department may adopt rules
23in accordance with the Illinois Administrative Procedure Act
24and prescribe forms relating to the administration and

 

 

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1enforcement of this Article as it deems appropriate.
 
2
ARTICLE 900.
3
AMENDATORY PROVISIONS

 
4    Section 900-5. The Illinois Administrative Procedure Act
5is amended by changing Section 5-45 as follows:
 
6    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
7    Sec. 5-45. Emergency rulemaking.
8    (a) "Emergency" means the existence of any situation that
9any agency finds reasonably constitutes a threat to the public
10interest, safety, or welfare.
11    (b) If any agency finds that an emergency exists that
12requires adoption of a rule upon fewer days than is required by
13Section 5-40 and states in writing its reasons for that
14finding, the agency may adopt an emergency rule without prior
15notice or hearing upon filing a notice of emergency rulemaking
16with the Secretary of State under Section 5-70. The notice
17shall include the text of the emergency rule and shall be
18published in the Illinois Register. Consent orders or other
19court orders adopting settlements negotiated by an agency may
20be adopted under this Section. Subject to applicable
21constitutional or statutory provisions, an emergency rule
22becomes effective immediately upon filing under Section 5-65 or
23at a stated date less than 10 days thereafter. The agency's

 

 

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1finding and a statement of the specific reasons for the finding
2shall be filed with the rule. The agency shall take reasonable
3and appropriate measures to make emergency rules known to the
4persons who may be affected by them.
5    (c) An emergency rule may be effective for a period of not
6longer than 150 days, but the agency's authority to adopt an
7identical rule under Section 5-40 is not precluded. No
8emergency rule may be adopted more than once in any 24-month
9period, except that this limitation on the number of emergency
10rules that may be adopted in a 24-month period does not apply
11to (i) emergency rules that make additions to and deletions
12from the Drug Manual under Section 5-5.16 of the Illinois
13Public Aid Code or the generic drug formulary under Section
143.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
15emergency rules adopted by the Pollution Control Board before
16July 1, 1997 to implement portions of the Livestock Management
17Facilities Act, (iii) emergency rules adopted by the Illinois
18Department of Public Health under subsections (a) through (i)
19of Section 2 of the Department of Public Health Act when
20necessary to protect the public's health, (iv) emergency rules
21adopted pursuant to subsection (n) of this Section, (v)
22emergency rules adopted pursuant to subsection (o) of this
23Section, or (vi) emergency rules adopted pursuant to subsection
24(c-5) of this Section. Two or more emergency rules having
25substantially the same purpose and effect shall be deemed to be
26a single rule for purposes of this Section.

 

 

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1    (c-5) To facilitate the maintenance of the program of group
2health benefits provided to annuitants, survivors, and retired
3employees under the State Employees Group Insurance Act of
41971, rules to alter the contributions to be paid by the State,
5annuitants, survivors, retired employees, or any combination
6of those entities, for that program of group health benefits,
7shall be adopted as emergency rules. The adoption of those
8rules shall be considered an emergency and necessary for the
9public interest, safety, and welfare.
10    (d) In order to provide for the expeditious and timely
11implementation of the State's fiscal year 1999 budget,
12emergency rules to implement any provision of Public Act 90-587
13or 90-588 or any other budget initiative for fiscal year 1999
14may be adopted in accordance with this Section by the agency
15charged with administering that provision or initiative,
16except that the 24-month limitation on the adoption of
17emergency rules and the provisions of Sections 5-115 and 5-125
18do not apply to rules adopted under this subsection (d). The
19adoption of emergency rules authorized by this subsection (d)
20shall be deemed to be necessary for the public interest,
21safety, and welfare.
22    (e) In order to provide for the expeditious and timely
23implementation of the State's fiscal year 2000 budget,
24emergency rules to implement any provision of Public Act 91-24
25or any other budget initiative for fiscal year 2000 may be
26adopted in accordance with this Section by the agency charged

 

 

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1with administering that provision or initiative, except that
2the 24-month limitation on the adoption of emergency rules and
3the provisions of Sections 5-115 and 5-125 do not apply to
4rules adopted under this subsection (e). The adoption of
5emergency rules authorized by this subsection (e) shall be
6deemed to be necessary for the public interest, safety, and
7welfare.
8    (f) In order to provide for the expeditious and timely
9implementation of the State's fiscal year 2001 budget,
10emergency rules to implement any provision of Public Act 91-712
11or any other budget initiative for fiscal year 2001 may be
12adopted in accordance with this Section by the agency charged
13with administering that provision or initiative, except that
14the 24-month limitation on the adoption of emergency rules and
15the provisions of Sections 5-115 and 5-125 do not apply to
16rules adopted under this subsection (f). The adoption of
17emergency rules authorized by this subsection (f) shall be
18deemed to be necessary for the public interest, safety, and
19welfare.
20    (g) In order to provide for the expeditious and timely
21implementation of the State's fiscal year 2002 budget,
22emergency rules to implement any provision of Public Act 92-10
23or any other budget initiative for fiscal year 2002 may be
24adopted in accordance with this Section by the agency charged
25with administering that provision or initiative, except that
26the 24-month limitation on the adoption of emergency rules and

 

 

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1the provisions of Sections 5-115 and 5-125 do not apply to
2rules adopted under this subsection (g). The adoption of
3emergency rules authorized by this subsection (g) shall be
4deemed to be necessary for the public interest, safety, and
5welfare.
6    (h) In order to provide for the expeditious and timely
7implementation of the State's fiscal year 2003 budget,
8emergency rules to implement any provision of Public Act 92-597
9or any other budget initiative for fiscal year 2003 may be
10adopted in accordance with this Section by the agency charged
11with administering that provision or initiative, except that
12the 24-month limitation on the adoption of emergency rules and
13the provisions of Sections 5-115 and 5-125 do not apply to
14rules adopted under this subsection (h). The adoption of
15emergency rules authorized by this subsection (h) shall be
16deemed to be necessary for the public interest, safety, and
17welfare.
18    (i) In order to provide for the expeditious and timely
19implementation of the State's fiscal year 2004 budget,
20emergency rules to implement any provision of Public Act 93-20
21or any other budget initiative for fiscal year 2004 may be
22adopted in accordance with this Section by the agency charged
23with administering that provision or initiative, except that
24the 24-month limitation on the adoption of emergency rules and
25the provisions of Sections 5-115 and 5-125 do not apply to
26rules adopted under this subsection (i). The adoption of

 

 

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1emergency rules authorized by this subsection (i) shall be
2deemed to be necessary for the public interest, safety, and
3welfare.
4    (j) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62005 budget as provided under the Fiscal Year 2005 Budget
7Implementation (Human Services) Act, emergency rules to
8implement any provision of the Fiscal Year 2005 Budget
9Implementation (Human Services) Act may be adopted in
10accordance with this Section by the agency charged with
11administering that provision, except that the 24-month
12limitation on the adoption of emergency rules and the
13provisions of Sections 5-115 and 5-125 do not apply to rules
14adopted under this subsection (j). The Department of Public Aid
15may also adopt rules under this subsection (j) necessary to
16administer the Illinois Public Aid Code and the Children's
17Health Insurance Program Act. The adoption of emergency rules
18authorized by this subsection (j) shall be deemed to be
19necessary for the public interest, safety, and welfare.
20    (k) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222006 budget, emergency rules to implement any provision of
23Public Act 94-48 or any other budget initiative for fiscal year
242006 may be adopted in accordance with this Section by the
25agency charged with administering that provision or
26initiative, except that the 24-month limitation on the adoption

 

 

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1of emergency rules and the provisions of Sections 5-115 and
25-125 do not apply to rules adopted under this subsection (k).
3The Department of Healthcare and Family Services may also adopt
4rules under this subsection (k) necessary to administer the
5Illinois Public Aid Code, the Senior Citizens and Persons with
6Disabilities Property Tax Relief Act, the Senior Citizens and
7Disabled Persons Prescription Drug Discount Program Act (now
8the Illinois Prescription Drug Discount Program Act), and the
9Children's Health Insurance Program Act. The adoption of
10emergency rules authorized by this subsection (k) shall be
11deemed to be necessary for the public interest, safety, and
12welfare.
13    (l) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152007 budget, the Department of Healthcare and Family Services
16may adopt emergency rules during fiscal year 2007, including
17rules effective July 1, 2007, in accordance with this
18subsection to the extent necessary to administer the
19Department's responsibilities with respect to amendments to
20the State plans and Illinois waivers approved by the federal
21Centers for Medicare and Medicaid Services necessitated by the
22requirements of Title XIX and Title XXI of the federal Social
23Security Act. The adoption of emergency rules authorized by
24this subsection (l) shall be deemed to be necessary for the
25public interest, safety, and welfare.
26    (m) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of the State's fiscal year
22008 budget, the Department of Healthcare and Family Services
3may adopt emergency rules during fiscal year 2008, including
4rules effective July 1, 2008, in accordance with this
5subsection to the extent necessary to administer the
6Department's responsibilities with respect to amendments to
7the State plans and Illinois waivers approved by the federal
8Centers for Medicare and Medicaid Services necessitated by the
9requirements of Title XIX and Title XXI of the federal Social
10Security Act. The adoption of emergency rules authorized by
11this subsection (m) shall be deemed to be necessary for the
12public interest, safety, and welfare.
13    (n) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152010 budget, emergency rules to implement any provision of
16Public Act 96-45 or any other budget initiative authorized by
17the 96th General Assembly for fiscal year 2010 may be adopted
18in accordance with this Section by the agency charged with
19administering that provision or initiative. The adoption of
20emergency rules authorized by this subsection (n) shall be
21deemed to be necessary for the public interest, safety, and
22welfare. The rulemaking authority granted in this subsection
23(n) shall apply only to rules promulgated during Fiscal Year
242010.
25    (o) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

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12011 budget, emergency rules to implement any provision of
2Public Act 96-958 or any other budget initiative authorized by
3the 96th General Assembly for fiscal year 2011 may be adopted
4in accordance with this Section by the agency charged with
5administering that provision or initiative. The adoption of
6emergency rules authorized by this subsection (o) is deemed to
7be necessary for the public interest, safety, and welfare. The
8rulemaking authority granted in this subsection (o) applies
9only to rules promulgated on or after July 1, 2010 (the
10effective date of Public Act 96-958) through June 30, 2011.
11    (p) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 97-689,
13emergency rules to implement any provision of Public Act 97-689
14may be adopted in accordance with this subsection (p) by the
15agency charged with administering that provision or
16initiative. The 150-day limitation of the effective period of
17emergency rules does not apply to rules adopted under this
18subsection (p), and the effective period may continue through
19June 30, 2013. The 24-month limitation on the adoption of
20emergency rules does not apply to rules adopted under this
21subsection (p). The adoption of emergency rules authorized by
22this subsection (p) is deemed to be necessary for the public
23interest, safety, and welfare.
24    (q) In order to provide for the expeditious and timely
25implementation of the provisions of Articles 7, 8, 9, 11, and
2612 of Public Act 98-104, emergency rules to implement any

 

 

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1provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
2may be adopted in accordance with this subsection (q) by the
3agency charged with administering that provision or
4initiative. The 24-month limitation on the adoption of
5emergency rules does not apply to rules adopted under this
6subsection (q). The adoption of emergency rules authorized by
7this subsection (q) is deemed to be necessary for the public
8interest, safety, and welfare.
9    (r) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 98-651,
11emergency rules to implement Public Act 98-651 may be adopted
12in accordance with this subsection (r) by the Department of
13Healthcare and Family Services. The 24-month limitation on the
14adoption of emergency rules does not apply to rules adopted
15under this subsection (r). The adoption of emergency rules
16authorized by this subsection (r) is deemed to be necessary for
17the public interest, safety, and welfare.
18    (s) In order to provide for the expeditious and timely
19implementation of the provisions of Sections 5-5b.1 and 5A-2 of
20the Illinois Public Aid Code, emergency rules to implement any
21provision of Section 5-5b.1 or Section 5A-2 of the Illinois
22Public Aid Code may be adopted in accordance with this
23subsection (s) by the Department of Healthcare and Family
24Services. The rulemaking authority granted in this subsection
25(s) shall apply only to those rules adopted prior to July 1,
262015. Notwithstanding any other provision of this Section, any

 

 

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1emergency rule adopted under this subsection (s) shall only
2apply to payments made for State fiscal year 2015. The adoption
3of emergency rules authorized by this subsection (s) is deemed
4to be necessary for the public interest, safety, and welfare.
5    (t) In order to provide for the expeditious and timely
6implementation of the provisions of Article II of Public Act
799-6, emergency rules to implement the changes made by Article
8II of Public Act 99-6 to the Emergency Telephone System Act may
9be adopted in accordance with this subsection (t) by the
10Department of State Police. The rulemaking authority granted in
11this subsection (t) shall apply only to those rules adopted
12prior to July 1, 2016. The 24-month limitation on the adoption
13of emergency rules does not apply to rules adopted under this
14subsection (t). The adoption of emergency rules authorized by
15this subsection (t) is deemed to be necessary for the public
16interest, safety, and welfare.
17    (u) In order to provide for the expeditious and timely
18implementation of the provisions of the Burn Victims Relief
19Act, emergency rules to implement any provision of the Act may
20be adopted in accordance with this subsection (u) by the
21Department of Insurance. The rulemaking authority granted in
22this subsection (u) shall apply only to those rules adopted
23prior to December 31, 2015. The adoption of emergency rules
24authorized by this subsection (u) is deemed to be necessary for
25the public interest, safety, and welfare.
26    (v) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of Public Act 99-516,
2emergency rules to implement Public Act 99-516 may be adopted
3in accordance with this subsection (v) by the Department of
4Healthcare and Family Services. The 24-month limitation on the
5adoption of emergency rules does not apply to rules adopted
6under this subsection (v). The adoption of emergency rules
7authorized by this subsection (v) is deemed to be necessary for
8the public interest, safety, and welfare.
9    (w) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 99-796,
11emergency rules to implement the changes made by Public Act
1299-796 may be adopted in accordance with this subsection (w) by
13the Adjutant General. The adoption of emergency rules
14authorized by this subsection (w) is deemed to be necessary for
15the public interest, safety, and welfare.
16    (x) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 99-906,
18emergency rules to implement subsection (i) of Section 16-115D,
19subsection (g) of Section 16-128A, and subsection (a) of
20Section 16-128B of the Public Utilities Act may be adopted in
21accordance with this subsection (x) by the Illinois Commerce
22Commission. The rulemaking authority granted in this
23subsection (x) shall apply only to those rules adopted within
24180 days after June 1, 2017 (the effective date of Public Act
2599-906). The adoption of emergency rules authorized by this
26subsection (x) is deemed to be necessary for the public

 

 

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1interest, safety, and welfare.
2    (y) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 100-23,
4emergency rules to implement the changes made by Public Act
5100-23 to Section 4.02 of the Illinois Act on the Aging,
6Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
7Section 55-30 of the Alcoholism and Other Drug Abuse and
8Dependency Act, and Sections 74 and 75 of the Mental Health and
9Developmental Disabilities Administrative Act may be adopted
10in accordance with this subsection (y) by the respective
11Department. The adoption of emergency rules authorized by this
12subsection (y) is deemed to be necessary for the public
13interest, safety, and welfare.
14    (z) In order to provide for the expeditious and timely
15implementation of the provisions of Public Act 100-554,
16emergency rules to implement the changes made by Public Act
17100-554 to Section 4.7 of the Lobbyist Registration Act may be
18adopted in accordance with this subsection (z) by the Secretary
19of State. The adoption of emergency rules authorized by this
20subsection (z) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (aa) In order to provide for the expeditious and timely
23initial implementation of the changes made to Articles 5, 5A,
2412, and 14 of the Illinois Public Aid Code under the provisions
25of Public Act 100-581, the Department of Healthcare and Family
26Services may adopt emergency rules in accordance with this

 

 

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1subsection (aa). The 24-month limitation on the adoption of
2emergency rules does not apply to rules to initially implement
3the changes made to Articles 5, 5A, 12, and 14 of the Illinois
4Public Aid Code adopted under this subsection (aa). The
5adoption of emergency rules authorized by this subsection (aa)
6is deemed to be necessary for the public interest, safety, and
7welfare.
8    (bb) In order to provide for the expeditious and timely
9implementation of the provisions of Public Act 100-587,
10emergency rules to implement the changes made by Public Act
11100-587 to Section 4.02 of the Illinois Act on the Aging,
12Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
13subsection (b) of Section 55-30 of the Alcoholism and Other
14Drug Abuse and Dependency Act, Section 5-104 of the Specialized
15Mental Health Rehabilitation Act of 2013, and Section 75 and
16subsection (b) of Section 74 of the Mental Health and
17Developmental Disabilities Administrative Act may be adopted
18in accordance with this subsection (bb) by the respective
19Department. The adoption of emergency rules authorized by this
20subsection (bb) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (cc) In order to provide for the expeditious and timely
23implementation of the provisions of Public Act 100-587,
24emergency rules may be adopted in accordance with this
25subsection (cc) to implement the changes made by Public Act
26100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

 

 

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1Pension Code by the Board created under Article 14 of the Code;
2Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
3the Board created under Article 15 of the Code; and Sections
416-190.5 and 16-190.6 of the Illinois Pension Code by the Board
5created under Article 16 of the Code. The adoption of emergency
6rules authorized by this subsection (cc) is deemed to be
7necessary for the public interest, safety, and welfare.
8    (dd) In order to provide for the expeditious and timely
9implementation of the provisions of Public Act 100-864,
10emergency rules to implement the changes made by Public Act
11100-864 to Section 3.35 of the Newborn Metabolic Screening Act
12may be adopted in accordance with this subsection (dd) by the
13Secretary of State. The adoption of emergency rules authorized
14by this subsection (dd) is deemed to be necessary for the
15public interest, safety, and welfare.
16    (ee) In order to provide for the expeditious and timely
17implementation of the provisions of this amendatory Act of the
18100th General Assembly, emergency rules implementing the
19Illinois Underground Natural Gas Storage Safety Act may be
20adopted in accordance with this subsection by the Department of
21Natural Resources. The adoption of emergency rules authorized
22by this subsection is deemed to be necessary for the public
23interest, safety, and welfare.
24    (ff) In order to provide for the expeditious and timely
25implementation of the provisions of this amendatory Act of the
26101st General Assembly, emergency rules may be adopted by the

 

 

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1Department of Labor in accordance with this subsection (ff) to
2implement the changes made by this amendatory Act of the 101st
3General Assembly to the Minimum Wage Law. The adoption of
4emergency rules authorized by this subsection (ff) is deemed to
5be necessary for the public interest, safety, and welfare.
6    (gg) In order to provide for the expeditious and timely
7implementation of the Cannabis Regulation and Tax Act and this
8amendatory Act of the 101st General Assembly, the Department of
9Revenue, the Department of Public Health, the Department of
10Agriculture, the Department of State Police, and the Department
11of Financial and Professional Regulation may adopt emergency
12rules in accordance with this subsection (gg). The rulemaking
13authority granted in this subsection (gg) shall apply only to
14rules adopted before December 31, 2021. Notwithstanding the
15provisions of subsection (c), emergency rules adopted under
16this subsection (gg) shall be effective for 180 days. The
17adoption of emergency rules authorized by this subsection (gg)
18is deemed to be necessary for the public interest, safety, and
19welfare.
20(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
21100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
226-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
23100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.
242-19-19.)
 
25    Section 900-8. The Freedom of Information Act is amended by

 

 

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1changing Section 7.5 as follows:
 
2    (5 ILCS 140/7.5)
3    Sec. 7.5. Statutory exemptions. To the extent provided for
4by the statutes referenced below, the following shall be exempt
5from inspection and copying:
6        (a) All information determined to be confidential
7    under Section 4002 of the Technology Advancement and
8    Development Act.
9        (b) Library circulation and order records identifying
10    library users with specific materials under the Library
11    Records Confidentiality Act.
12        (c) Applications, related documents, and medical
13    records received by the Experimental Organ Transplantation
14    Procedures Board and any and all documents or other records
15    prepared by the Experimental Organ Transplantation
16    Procedures Board or its staff relating to applications it
17    has received.
18        (d) Information and records held by the Department of
19    Public Health and its authorized representatives relating
20    to known or suspected cases of sexually transmissible
21    disease or any information the disclosure of which is
22    restricted under the Illinois Sexually Transmissible
23    Disease Control Act.
24        (e) Information the disclosure of which is exempted
25    under Section 30 of the Radon Industry Licensing Act.

 

 

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1        (f) Firm performance evaluations under Section 55 of
2    the Architectural, Engineering, and Land Surveying
3    Qualifications Based Selection Act.
4        (g) Information the disclosure of which is restricted
5    and exempted under Section 50 of the Illinois Prepaid
6    Tuition Act.
7        (h) Information the disclosure of which is exempted
8    under the State Officials and Employees Ethics Act, and
9    records of any lawfully created State or local inspector
10    general's office that would be exempt if created or
11    obtained by an Executive Inspector General's office under
12    that Act.
13        (i) Information contained in a local emergency energy
14    plan submitted to a municipality in accordance with a local
15    emergency energy plan ordinance that is adopted under
16    Section 11-21.5-5 of the Illinois Municipal Code.
17        (j) Information and data concerning the distribution
18    of surcharge moneys collected and remitted by carriers
19    under the Emergency Telephone System Act.
20        (k) Law enforcement officer identification information
21    or driver identification information compiled by a law
22    enforcement agency or the Department of Transportation
23    under Section 11-212 of the Illinois Vehicle Code.
24        (l) Records and information provided to a residential
25    health care facility resident sexual assault and death
26    review team or the Executive Council under the Abuse

 

 

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1    Prevention Review Team Act.
2        (m) Information provided to the predatory lending
3    database created pursuant to Article 3 of the Residential
4    Real Property Disclosure Act, except to the extent
5    authorized under that Article.
6        (n) Defense budgets and petitions for certification of
7    compensation and expenses for court appointed trial
8    counsel as provided under Sections 10 and 15 of the Capital
9    Crimes Litigation Act. This subsection (n) shall apply
10    until the conclusion of the trial of the case, even if the
11    prosecution chooses not to pursue the death penalty prior
12    to trial or sentencing.
13        (o) Information that is prohibited from being
14    disclosed under Section 4 of the Illinois Health and
15    Hazardous Substances Registry Act.
16        (p) Security portions of system safety program plans,
17    investigation reports, surveys, schedules, lists, data, or
18    information compiled, collected, or prepared by or for the
19    Regional Transportation Authority under Section 2.11 of
20    the Regional Transportation Authority Act or the St. Clair
21    County Transit District under the Bi-State Transit Safety
22    Act.
23        (q) Information prohibited from being disclosed by the
24    Personnel Record Records Review Act.
25        (r) Information prohibited from being disclosed by the
26    Illinois School Student Records Act.

 

 

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1        (s) Information the disclosure of which is restricted
2    under Section 5-108 of the Public Utilities Act.
3        (t) All identified or deidentified health information
4    in the form of health data or medical records contained in,
5    stored in, submitted to, transferred by, or released from
6    the Illinois Health Information Exchange, and identified
7    or deidentified health information in the form of health
8    data and medical records of the Illinois Health Information
9    Exchange in the possession of the Illinois Health
10    Information Exchange Authority due to its administration
11    of the Illinois Health Information Exchange. The terms
12    "identified" and "deidentified" shall be given the same
13    meaning as in the Health Insurance Portability and
14    Accountability Act of 1996, Public Law 104-191, or any
15    subsequent amendments thereto, and any regulations
16    promulgated thereunder.
17        (u) Records and information provided to an independent
18    team of experts under the Developmental Disability and
19    Mental Health Safety Act (also known as Brian's Law).
20        (v) Names and information of people who have applied
21    for or received Firearm Owner's Identification Cards under
22    the Firearm Owners Identification Card Act or applied for
23    or received a concealed carry license under the Firearm
24    Concealed Carry Act, unless otherwise authorized by the
25    Firearm Concealed Carry Act; and databases under the
26    Firearm Concealed Carry Act, records of the Concealed Carry

 

 

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1    Licensing Review Board under the Firearm Concealed Carry
2    Act, and law enforcement agency objections under the
3    Firearm Concealed Carry Act.
4        (w) Personally identifiable information which is
5    exempted from disclosure under subsection (g) of Section
6    19.1 of the Toll Highway Act.
7        (x) Information which is exempted from disclosure
8    under Section 5-1014.3 of the Counties Code or Section
9    8-11-21 of the Illinois Municipal Code.
10        (y) Confidential information under the Adult
11    Protective Services Act and its predecessor enabling
12    statute, the Elder Abuse and Neglect Act, including
13    information about the identity and administrative finding
14    against any caregiver of a verified and substantiated
15    decision of abuse, neglect, or financial exploitation of an
16    eligible adult maintained in the Registry established
17    under Section 7.5 of the Adult Protective Services Act.
18        (z) Records and information provided to a fatality
19    review team or the Illinois Fatality Review Team Advisory
20    Council under Section 15 of the Adult Protective Services
21    Act.
22        (aa) Information which is exempted from disclosure
23    under Section 2.37 of the Wildlife Code.
24        (bb) Information which is or was prohibited from
25    disclosure by the Juvenile Court Act of 1987.
26        (cc) Recordings made under the Law Enforcement

 

 

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1    Officer-Worn Body Camera Act, except to the extent
2    authorized under that Act.
3        (dd) Information that is prohibited from being
4    disclosed under Section 45 of the Condominium and Common
5    Interest Community Ombudsperson Act.
6        (ee) Information that is exempted from disclosure
7    under Section 30.1 of the Pharmacy Practice Act.
8        (ff) Information that is exempted from disclosure
9    under the Revised Uniform Unclaimed Property Act.
10        (gg) Information that is prohibited from being
11    disclosed under Section 7-603.5 of the Illinois Vehicle
12    Code.
13        (hh) Records that are exempt from disclosure under
14    Section 1A-16.7 of the Election Code.
15        (ii) Information which is exempted from disclosure
16    under Section 2505-800 of the Department of Revenue Law of
17    the Civil Administrative Code of Illinois.
18        (jj) Information and reports that are required to be
19    submitted to the Department of Labor by registering day and
20    temporary labor service agencies but are exempt from
21    disclosure under subsection (a-1) of Section 45 of the Day
22    and Temporary Labor Services Act.
23        (kk) Information prohibited from disclosure under the
24    Seizure and Forfeiture Reporting Act.
25        (ll) Information the disclosure of which is restricted
26    and exempted under Section 5-30.8 of the Illinois Public

 

 

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1    Aid Code.
2        (mm) (ll) Records that are exempt from disclosure under
3    Section 4.2 of the Crime Victims Compensation Act.
4        (nn) (ll) Information that is exempt from disclosure
5    under Section 70 of the Higher Education Student Assistance
6    Act.
7        (oo) Information that is exempt from disclosure under
8    the Cannabis Regulation and Tax Act.
9(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,
10eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;
1199-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
12100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
138-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
14eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
15100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised
1610-12-18.)
 
17    Section 900-10. The Department of Revenue Law of the Civil
18Administrative Code of Illinois is amended by changing Section
192505-210 as follows:
 
20    (20 ILCS 2505/2505-210)  (was 20 ILCS 2505/39c-1)
21    Sec. 2505-210. Electronic funds transfer.
22    (a) The Department may provide means by which persons
23having a tax liability under any Act administered by the
24Department may use electronic funds transfer to pay the tax

 

 

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1liability.
2    (b) Mandatory payment by electronic funds transfer. Except
3as otherwise provided in a tax Act administered by the
4Department Beginning on October 1, 2002, and through September
530, 2010, a taxpayer who has an annual tax liability of
6$200,000 or more shall make all payments of that tax to the
7Department by electronic funds transfer. Beginning October 1,
82010, a taxpayer (other than an individual taxpayer) who has an
9annual tax liability of $20,000 or more and an individual
10taxpayer who has an annual tax liability of $200,000 or more
11shall make all payments of that tax to the Department by
12electronic funds transfer. Before August 1 of each year,
13beginning in 2002, the Department shall notify all taxpayers
14required to make payments by electronic funds transfer. All
15taxpayers required to make payments by electronic funds
16transfer shall make those payments for a minimum of one year
17beginning on October 1. For purposes of this subsection (b),
18the term "annual tax liability" means, except as provided in
19subsections (c) and (d) of this Section, the sum of the
20taxpayer's liabilities under a tax Act administered by the
21Department for the immediately preceding calendar year.
22    (c) For purposes of subsection (b), the term "annual tax
23liability" means, for a taxpayer that incurs a tax liability
24under the Retailers' Occupation Tax Act, Service Occupation Tax
25Act, Use Tax Act, Service Use Tax Act, or any other State or
26local occupation or use tax law that is administered by the

 

 

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1Department, the sum of the taxpayer's liabilities under the
2Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
3Tax Act, Service Use Tax Act, and all other State and local
4occupation and use tax laws administered by the Department for
5the immediately preceding calendar year.
6    (d) For purposes of subsection (b), the term "annual tax
7liability" means, for a taxpayer that incurs an Illinois income
8tax liability, the greater of:
9        (1) the amount of the taxpayer's tax liability under
10    Article 7 of the Illinois Income Tax Act for the
11    immediately preceding calendar year; or
12        (2) the taxpayer's estimated tax payment obligation
13    under Article 8 of the Illinois Income Tax Act for the
14    immediately preceding calendar year.
15    (e) The Department shall adopt such rules as are necessary
16to effectuate a program of electronic funds transfer and the
17requirements of this Section.
18(Source: P.A. 100-1171, eff. 1-4-19.)
 
19    Section 900-12. The Criminal Identification Act is amended
20by changing Section 5.2 as follows:
 
21    (20 ILCS 2630/5.2)
22    Sec. 5.2. Expungement, sealing, and immediate sealing.
23    (a) General Provisions.
24        (1) Definitions. In this Act, words and phrases have

 

 

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1    the meanings set forth in this subsection, except when a
2    particular context clearly requires a different meaning.
3            (A) The following terms shall have the meanings
4        ascribed to them in the Unified Code of Corrections,
5        730 ILCS 5/5-1-2 through 5/5-1-22:
6                (i) Business Offense (730 ILCS 5/5-1-2),
7                (ii) Charge (730 ILCS 5/5-1-3),
8                (iii) Court (730 ILCS 5/5-1-6),
9                (iv) Defendant (730 ILCS 5/5-1-7),
10                (v) Felony (730 ILCS 5/5-1-9),
11                (vi) Imprisonment (730 ILCS 5/5-1-10),
12                (vii) Judgment (730 ILCS 5/5-1-12),
13                (viii) Misdemeanor (730 ILCS 5/5-1-14),
14                (ix) Offense (730 ILCS 5/5-1-15),
15                (x) Parole (730 ILCS 5/5-1-16),
16                (xi) Petty Offense (730 ILCS 5/5-1-17),
17                (xii) Probation (730 ILCS 5/5-1-18),
18                (xiii) Sentence (730 ILCS 5/5-1-19),
19                (xiv) Supervision (730 ILCS 5/5-1-21), and
20                (xv) Victim (730 ILCS 5/5-1-22).
21            (B) As used in this Section, "charge not initiated
22        by arrest" means a charge (as defined by 730 ILCS
23        5/5-1-3) brought against a defendant where the
24        defendant is not arrested prior to or as a direct
25        result of the charge.
26            (C) "Conviction" means a judgment of conviction or

 

 

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1        sentence entered upon a plea of guilty or upon a
2        verdict or finding of guilty of an offense, rendered by
3        a legally constituted jury or by a court of competent
4        jurisdiction authorized to try the case without a jury.
5        An order of supervision successfully completed by the
6        petitioner is not a conviction. An order of qualified
7        probation (as defined in subsection (a)(1)(J))
8        successfully completed by the petitioner is not a
9        conviction. An order of supervision or an order of
10        qualified probation that is terminated
11        unsatisfactorily is a conviction, unless the
12        unsatisfactory termination is reversed, vacated, or
13        modified and the judgment of conviction, if any, is
14        reversed or vacated.
15            (D) "Criminal offense" means a petty offense,
16        business offense, misdemeanor, felony, or municipal
17        ordinance violation (as defined in subsection
18        (a)(1)(H)). As used in this Section, a minor traffic
19        offense (as defined in subsection (a)(1)(G)) shall not
20        be considered a criminal offense.
21            (E) "Expunge" means to physically destroy the
22        records or return them to the petitioner and to
23        obliterate the petitioner's name from any official
24        index or public record, or both. Nothing in this Act
25        shall require the physical destruction of the circuit
26        court file, but such records relating to arrests or

 

 

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1        charges, or both, ordered expunged shall be impounded
2        as required by subsections (d)(9)(A)(ii) and
3        (d)(9)(B)(ii).
4            (F) As used in this Section, "last sentence" means
5        the sentence, order of supervision, or order of
6        qualified probation (as defined by subsection
7        (a)(1)(J)), for a criminal offense (as defined by
8        subsection (a)(1)(D)) that terminates last in time in
9        any jurisdiction, regardless of whether the petitioner
10        has included the criminal offense for which the
11        sentence or order of supervision or qualified
12        probation was imposed in his or her petition. If
13        multiple sentences, orders of supervision, or orders
14        of qualified probation terminate on the same day and
15        are last in time, they shall be collectively considered
16        the "last sentence" regardless of whether they were
17        ordered to run concurrently.
18            (G) "Minor traffic offense" means a petty offense,
19        business offense, or Class C misdemeanor under the
20        Illinois Vehicle Code or a similar provision of a
21        municipal or local ordinance.
22            (G-5) "Minor Cannabis Offense" means a violation
23        of Section 4 or 5 of the Cannabis Control Act
24        concerning not more than 30 grams of any substance
25        containing cannabis, provided the violation did not
26        include a penalty enhancement under Section 7 of the

 

 

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1        Cannabis Control Act and is not associated with an
2        arrest, conviction or other disposition for a violent
3        crime as defined in subsection (c) of Section 3 of the
4        Rights of Crime Victims and Witnesses Act.
5            (H) "Municipal ordinance violation" means an
6        offense defined by a municipal or local ordinance that
7        is criminal in nature and with which the petitioner was
8        charged or for which the petitioner was arrested and
9        released without charging.
10            (I) "Petitioner" means an adult or a minor
11        prosecuted as an adult who has applied for relief under
12        this Section.
13            (J) "Qualified probation" means an order of
14        probation under Section 10 of the Cannabis Control Act,
15        Section 410 of the Illinois Controlled Substances Act,
16        Section 70 of the Methamphetamine Control and
17        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
18        of the Unified Code of Corrections, Section
19        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
20        those provisions existed before their deletion by
21        Public Act 89-313), Section 10-102 of the Illinois
22        Alcoholism and Other Drug Dependency Act, Section
23        40-10 of the Substance Use Disorder Act, or Section 10
24        of the Steroid Control Act. For the purpose of this
25        Section, "successful completion" of an order of
26        qualified probation under Section 10-102 of the

 

 

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1        Illinois Alcoholism and Other Drug Dependency Act and
2        Section 40-10 of the Substance Use Disorder Act means
3        that the probation was terminated satisfactorily and
4        the judgment of conviction was vacated.
5            (K) "Seal" means to physically and electronically
6        maintain the records, unless the records would
7        otherwise be destroyed due to age, but to make the
8        records unavailable without a court order, subject to
9        the exceptions in Sections 12 and 13 of this Act. The
10        petitioner's name shall also be obliterated from the
11        official index required to be kept by the circuit court
12        clerk under Section 16 of the Clerks of Courts Act, but
13        any index issued by the circuit court clerk before the
14        entry of the order to seal shall not be affected.
15            (L) "Sexual offense committed against a minor"
16        includes but is not limited to the offenses of indecent
17        solicitation of a child or criminal sexual abuse when
18        the victim of such offense is under 18 years of age.
19            (M) "Terminate" as it relates to a sentence or
20        order of supervision or qualified probation includes
21        either satisfactory or unsatisfactory termination of
22        the sentence, unless otherwise specified in this
23        Section. A sentence is terminated notwithstanding any
24        outstanding financial legal obligation.
25        (2) Minor Traffic Offenses. Orders of supervision or
26    convictions for minor traffic offenses shall not affect a

 

 

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1    petitioner's eligibility to expunge or seal records
2    pursuant to this Section.
3        (2.5) Commencing 180 days after July 29, 2016 (the
4    effective date of Public Act 99-697), the law enforcement
5    agency issuing the citation shall automatically expunge,
6    on or before January 1 and July 1 of each year, the law
7    enforcement records of a person found to have committed a
8    civil law violation of subsection (a) of Section 4 of the
9    Cannabis Control Act or subsection (c) of Section 3.5 of
10    the Drug Paraphernalia Control Act in the law enforcement
11    agency's possession or control and which contains the final
12    satisfactory disposition which pertain to the person
13    issued a citation for that offense. The law enforcement
14    agency shall provide by rule the process for access,
15    review, and to confirm the automatic expungement by the law
16    enforcement agency issuing the citation. Commencing 180
17    days after July 29, 2016 (the effective date of Public Act
18    99-697), the clerk of the circuit court shall expunge, upon
19    order of the court, or in the absence of a court order on
20    or before January 1 and July 1 of each year, the court
21    records of a person found in the circuit court to have
22    committed a civil law violation of subsection (a) of
23    Section 4 of the Cannabis Control Act or subsection (c) of
24    Section 3.5 of the Drug Paraphernalia Control Act in the
25    clerk's possession or control and which contains the final
26    satisfactory disposition which pertain to the person

 

 

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1    issued a citation for any of those offenses.
2        (3) Exclusions. Except as otherwise provided in
3    subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
4    of this Section, the court shall not order:
5            (A) the sealing or expungement of the records of
6        arrests or charges not initiated by arrest that result
7        in an order of supervision for or conviction of: (i)
8        any sexual offense committed against a minor; (ii)
9        Section 11-501 of the Illinois Vehicle Code or a
10        similar provision of a local ordinance; or (iii)
11        Section 11-503 of the Illinois Vehicle Code or a
12        similar provision of a local ordinance, unless the
13        arrest or charge is for a misdemeanor violation of
14        subsection (a) of Section 11-503 or a similar provision
15        of a local ordinance, that occurred prior to the
16        offender reaching the age of 25 years and the offender
17        has no other conviction for violating Section 11-501 or
18        11-503 of the Illinois Vehicle Code or a similar
19        provision of a local ordinance.
20            (B) the sealing or expungement of records of minor
21        traffic offenses (as defined in subsection (a)(1)(G)),
22        unless the petitioner was arrested and released
23        without charging.
24            (C) the sealing of the records of arrests or
25        charges not initiated by arrest which result in an
26        order of supervision or a conviction for the following

 

 

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1        offenses:
2                (i) offenses included in Article 11 of the
3            Criminal Code of 1961 or the Criminal Code of 2012
4            or a similar provision of a local ordinance, except
5            Section 11-14 and a misdemeanor violation of
6            Section 11-30 of the Criminal Code of 1961 or the
7            Criminal Code of 2012, or a similar provision of a
8            local ordinance;
9                (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
10            26-5, or 48-1 of the Criminal Code of 1961 or the
11            Criminal Code of 2012, or a similar provision of a
12            local ordinance;
13                (iii) Sections 12-3.1 or 12-3.2 of the
14            Criminal Code of 1961 or the Criminal Code of 2012,
15            or Section 125 of the Stalking No Contact Order
16            Act, or Section 219 of the Civil No Contact Order
17            Act, or a similar provision of a local ordinance;
18                (iv) Class A misdemeanors or felony offenses
19            under the Humane Care for Animals Act; or
20                (v) any offense or attempted offense that
21            would subject a person to registration under the
22            Sex Offender Registration Act.
23            (D) (blank).
24    (b) Expungement.
25        (1) A petitioner may petition the circuit court to
26    expunge the records of his or her arrests and charges not

 

 

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1    initiated by arrest when each arrest or charge not
2    initiated by arrest sought to be expunged resulted in: (i)
3    acquittal, dismissal, or the petitioner's release without
4    charging, unless excluded by subsection (a)(3)(B); (ii) a
5    conviction which was vacated or reversed, unless excluded
6    by subsection (a)(3)(B); (iii) an order of supervision and
7    such supervision was successfully completed by the
8    petitioner, unless excluded by subsection (a)(3)(A) or
9    (a)(3)(B); or (iv) an order of qualified probation (as
10    defined in subsection (a)(1)(J)) and such probation was
11    successfully completed by the petitioner.
12        (1.5) When a petitioner seeks to have a record of
13    arrest expunged under this Section, and the offender has
14    been convicted of a criminal offense, the State's Attorney
15    may object to the expungement on the grounds that the
16    records contain specific relevant information aside from
17    the mere fact of the arrest.
18        (2) Time frame for filing a petition to expunge.
19            (A) When the arrest or charge not initiated by
20        arrest sought to be expunged resulted in an acquittal,
21        dismissal, the petitioner's release without charging,
22        or the reversal or vacation of a conviction, there is
23        no waiting period to petition for the expungement of
24        such records.
25            (B) When the arrest or charge not initiated by
26        arrest sought to be expunged resulted in an order of

 

 

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1        supervision, successfully completed by the petitioner,
2        the following time frames will apply:
3                (i) Those arrests or charges that resulted in
4            orders of supervision under Section 3-707, 3-708,
5            3-710, or 5-401.3 of the Illinois Vehicle Code or a
6            similar provision of a local ordinance, or under
7            Section 11-1.50, 12-3.2, or 12-15 of the Criminal
8            Code of 1961 or the Criminal Code of 2012, or a
9            similar provision of a local ordinance, shall not
10            be eligible for expungement until 5 years have
11            passed following the satisfactory termination of
12            the supervision.
13                (i-5) Those arrests or charges that resulted
14            in orders of supervision for a misdemeanor
15            violation of subsection (a) of Section 11-503 of
16            the Illinois Vehicle Code or a similar provision of
17            a local ordinance, that occurred prior to the
18            offender reaching the age of 25 years and the
19            offender has no other conviction for violating
20            Section 11-501 or 11-503 of the Illinois Vehicle
21            Code or a similar provision of a local ordinance
22            shall not be eligible for expungement until the
23            petitioner has reached the age of 25 years.
24                (ii) Those arrests or charges that resulted in
25            orders of supervision for any other offenses shall
26            not be eligible for expungement until 2 years have

 

 

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1            passed following the satisfactory termination of
2            the supervision.
3            (C) When the arrest or charge not initiated by
4        arrest sought to be expunged resulted in an order of
5        qualified probation, successfully completed by the
6        petitioner, such records shall not be eligible for
7        expungement until 5 years have passed following the
8        satisfactory termination of the probation.
9        (3) Those records maintained by the Department for
10    persons arrested prior to their 17th birthday shall be
11    expunged as provided in Section 5-915 of the Juvenile Court
12    Act of 1987.
13        (4) Whenever a person has been arrested for or
14    convicted of any offense, in the name of a person whose
15    identity he or she has stolen or otherwise come into
16    possession of, the aggrieved person from whom the identity
17    was stolen or otherwise obtained without authorization,
18    upon learning of the person having been arrested using his
19    or her identity, may, upon verified petition to the chief
20    judge of the circuit wherein the arrest was made, have a
21    court order entered nunc pro tunc by the Chief Judge to
22    correct the arrest record, conviction record, if any, and
23    all official records of the arresting authority, the
24    Department, other criminal justice agencies, the
25    prosecutor, and the trial court concerning such arrest, if
26    any, by removing his or her name from all such records in

 

 

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1    connection with the arrest and conviction, if any, and by
2    inserting in the records the name of the offender, if known
3    or ascertainable, in lieu of the aggrieved's name. The
4    records of the circuit court clerk shall be sealed until
5    further order of the court upon good cause shown and the
6    name of the aggrieved person obliterated on the official
7    index required to be kept by the circuit court clerk under
8    Section 16 of the Clerks of Courts Act, but the order shall
9    not affect any index issued by the circuit court clerk
10    before the entry of the order. Nothing in this Section
11    shall limit the Department of State Police or other
12    criminal justice agencies or prosecutors from listing
13    under an offender's name the false names he or she has
14    used.
15        (5) Whenever a person has been convicted of criminal
16    sexual assault, aggravated criminal sexual assault,
17    predatory criminal sexual assault of a child, criminal
18    sexual abuse, or aggravated criminal sexual abuse, the
19    victim of that offense may request that the State's
20    Attorney of the county in which the conviction occurred
21    file a verified petition with the presiding trial judge at
22    the petitioner's trial to have a court order entered to
23    seal the records of the circuit court clerk in connection
24    with the proceedings of the trial court concerning that
25    offense. However, the records of the arresting authority
26    and the Department of State Police concerning the offense

 

 

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1    shall not be sealed. The court, upon good cause shown,
2    shall make the records of the circuit court clerk in
3    connection with the proceedings of the trial court
4    concerning the offense available for public inspection.
5        (6) If a conviction has been set aside on direct review
6    or on collateral attack and the court determines by clear
7    and convincing evidence that the petitioner was factually
8    innocent of the charge, the court that finds the petitioner
9    factually innocent of the charge shall enter an expungement
10    order for the conviction for which the petitioner has been
11    determined to be innocent as provided in subsection (b) of
12    Section 5-5-4 of the Unified Code of Corrections.
13        (7) Nothing in this Section shall prevent the
14    Department of State Police from maintaining all records of
15    any person who is admitted to probation upon terms and
16    conditions and who fulfills those terms and conditions
17    pursuant to Section 10 of the Cannabis Control Act, Section
18    410 of the Illinois Controlled Substances Act, Section 70
19    of the Methamphetamine Control and Community Protection
20    Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
21    Corrections, Section 12-4.3 or subdivision (b)(1) of
22    Section 12-3.05 of the Criminal Code of 1961 or the
23    Criminal Code of 2012, Section 10-102 of the Illinois
24    Alcoholism and Other Drug Dependency Act, Section 40-10 of
25    the Substance Use Disorder Act, or Section 10 of the
26    Steroid Control Act.

 

 

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1        (8) If the petitioner has been granted a certificate of
2    innocence under Section 2-702 of the Code of Civil
3    Procedure, the court that grants the certificate of
4    innocence shall also enter an order expunging the
5    conviction for which the petitioner has been determined to
6    be innocent as provided in subsection (h) of Section 2-702
7    of the Code of Civil Procedure.
8    (c) Sealing.
9        (1) Applicability. Notwithstanding any other provision
10    of this Act to the contrary, and cumulative with any rights
11    to expungement of criminal records, this subsection
12    authorizes the sealing of criminal records of adults and of
13    minors prosecuted as adults. Subsection (g) of this Section
14    provides for immediate sealing of certain records.
15        (2) Eligible Records. The following records may be
16    sealed:
17            (A) All arrests resulting in release without
18        charging;
19            (B) Arrests or charges not initiated by arrest
20        resulting in acquittal, dismissal, or conviction when
21        the conviction was reversed or vacated, except as
22        excluded by subsection (a)(3)(B);
23            (C) Arrests or charges not initiated by arrest
24        resulting in orders of supervision, including orders
25        of supervision for municipal ordinance violations,
26        successfully completed by the petitioner, unless

 

 

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1        excluded by subsection (a)(3);
2            (D) Arrests or charges not initiated by arrest
3        resulting in convictions, including convictions on
4        municipal ordinance violations, unless excluded by
5        subsection (a)(3);
6            (E) Arrests or charges not initiated by arrest
7        resulting in orders of first offender probation under
8        Section 10 of the Cannabis Control Act, Section 410 of
9        the Illinois Controlled Substances Act, Section 70 of
10        the Methamphetamine Control and Community Protection
11        Act, or Section 5-6-3.3 of the Unified Code of
12        Corrections; and
13            (F) Arrests or charges not initiated by arrest
14        resulting in felony convictions unless otherwise
15        excluded by subsection (a) paragraph (3) of this
16        Section.
17        (3) When Records Are Eligible to Be Sealed. Records
18    identified as eligible under subsection (c)(2) may be
19    sealed as follows:
20            (A) Records identified as eligible under
21        subsection (c)(2)(A) and (c)(2)(B) may be sealed at any
22        time.
23            (B) Except as otherwise provided in subparagraph
24        (E) of this paragraph (3), records identified as
25        eligible under subsection (c)(2)(C) may be sealed 2
26        years after the termination of petitioner's last

 

 

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1        sentence (as defined in subsection (a)(1)(F)).
2            (C) Except as otherwise provided in subparagraph
3        (E) of this paragraph (3), records identified as
4        eligible under subsections (c)(2)(D), (c)(2)(E), and
5        (c)(2)(F) may be sealed 3 years after the termination
6        of the petitioner's last sentence (as defined in
7        subsection (a)(1)(F)). Convictions requiring public
8        registration under the Arsonist Registration Act, the
9        Sex Offender Registration Act, or the Murderer and
10        Violent Offender Against Youth Registration Act may
11        not be sealed until the petitioner is no longer
12        required to register under that relevant Act.
13            (D) Records identified in subsection
14        (a)(3)(A)(iii) may be sealed after the petitioner has
15        reached the age of 25 years.
16            (E) Records identified as eligible under
17        subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or
18        (c)(2)(F) may be sealed upon termination of the
19        petitioner's last sentence if the petitioner earned a
20        high school diploma, associate's degree, career
21        certificate, vocational technical certification, or
22        bachelor's degree, or passed the high school level Test
23        of General Educational Development, during the period
24        of his or her sentence, aftercare release, or mandatory
25        supervised release. This subparagraph shall apply only
26        to a petitioner who has not completed the same

 

 

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1        educational goal prior to the period of his or her
2        sentence, aftercare release, or mandatory supervised
3        release. If a petition for sealing eligible records
4        filed under this subparagraph is denied by the court,
5        the time periods under subparagraph (B) or (C) shall
6        apply to any subsequent petition for sealing filed by
7        the petitioner.
8        (4) Subsequent felony convictions. A person may not
9    have subsequent felony conviction records sealed as
10    provided in this subsection (c) if he or she is convicted
11    of any felony offense after the date of the sealing of
12    prior felony convictions as provided in this subsection
13    (c). The court may, upon conviction for a subsequent felony
14    offense, order the unsealing of prior felony conviction
15    records previously ordered sealed by the court.
16        (5) Notice of eligibility for sealing. Upon entry of a
17    disposition for an eligible record under this subsection
18    (c), the petitioner shall be informed by the court of the
19    right to have the records sealed and the procedures for the
20    sealing of the records.
21    (d) Procedure. The following procedures apply to
22expungement under subsections (b), (e), and (e-6) and sealing
23under subsections (c) and (e-5):
24        (1) Filing the petition. Upon becoming eligible to
25    petition for the expungement or sealing of records under
26    this Section, the petitioner shall file a petition

 

 

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1    requesting the expungement or sealing of records with the
2    clerk of the court where the arrests occurred or the
3    charges were brought, or both. If arrests occurred or
4    charges were brought in multiple jurisdictions, a petition
5    must be filed in each such jurisdiction. The petitioner
6    shall pay the applicable fee, except no fee shall be
7    required if the petitioner has obtained a court order
8    waiving fees under Supreme Court Rule 298 or it is
9    otherwise waived.
10        (1.5) County fee waiver pilot program. In a county of
11    3,000,000 or more inhabitants, no fee shall be required to
12    be paid by a petitioner if the records sought to be
13    expunged or sealed were arrests resulting in release
14    without charging or arrests or charges not initiated by
15    arrest resulting in acquittal, dismissal, or conviction
16    when the conviction was reversed or vacated, unless
17    excluded by subsection (a)(3)(B). The provisions of this
18    paragraph (1.5), other than this sentence, are inoperative
19    on and after January 1, 2019.
20        (2) Contents of petition. The petition shall be
21    verified and shall contain the petitioner's name, date of
22    birth, current address and, for each arrest or charge not
23    initiated by arrest sought to be sealed or expunged, the
24    case number, the date of arrest (if any), the identity of
25    the arresting authority, and such other information as the
26    court may require. During the pendency of the proceeding,

 

 

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1    the petitioner shall promptly notify the circuit court
2    clerk of any change of his or her address. If the
3    petitioner has received a certificate of eligibility for
4    sealing from the Prisoner Review Board under paragraph (10)
5    of subsection (a) of Section 3-3-2 of the Unified Code of
6    Corrections, the certificate shall be attached to the
7    petition.
8        (3) Drug test. The petitioner must attach to the
9    petition proof that the petitioner has passed a test taken
10    within 30 days before the filing of the petition showing
11    the absence within his or her body of all illegal
12    substances as defined by the Illinois Controlled
13    Substances Act, the Methamphetamine Control and Community
14    Protection Act, and the Cannabis Control Act if he or she
15    is petitioning to:
16            (A) seal felony records under clause (c)(2)(E);
17            (B) seal felony records for a violation of the
18        Illinois Controlled Substances Act, the
19        Methamphetamine Control and Community Protection Act,
20        or the Cannabis Control Act under clause (c)(2)(F);
21            (C) seal felony records under subsection (e-5); or
22            (D) expunge felony records of a qualified
23        probation under clause (b)(1)(iv).
24        (4) Service of petition. The circuit court clerk shall
25    promptly serve a copy of the petition and documentation to
26    support the petition under subsection (e-5) or (e-6) on the

 

 

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1    State's Attorney or prosecutor charged with the duty of
2    prosecuting the offense, the Department of State Police,
3    the arresting agency and the chief legal officer of the
4    unit of local government effecting the arrest.
5        (5) Objections.
6            (A) Any party entitled to notice of the petition
7        may file an objection to the petition. All objections
8        shall be in writing, shall be filed with the circuit
9        court clerk, and shall state with specificity the basis
10        of the objection. Whenever a person who has been
11        convicted of an offense is granted a pardon by the
12        Governor which specifically authorizes expungement, an
13        objection to the petition may not be filed.
14            (B) Objections to a petition to expunge or seal
15        must be filed within 60 days of the date of service of
16        the petition.
17        (6) Entry of order.
18            (A) The Chief Judge of the circuit wherein the
19        charge was brought, any judge of that circuit
20        designated by the Chief Judge, or in counties of less
21        than 3,000,000 inhabitants, the presiding trial judge
22        at the petitioner's trial, if any, shall rule on the
23        petition to expunge or seal as set forth in this
24        subsection (d)(6).
25            (B) Unless the State's Attorney or prosecutor, the
26        Department of State Police, the arresting agency, or

 

 

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1        the chief legal officer files an objection to the
2        petition to expunge or seal within 60 days from the
3        date of service of the petition, the court shall enter
4        an order granting or denying the petition.
5            (C) Notwithstanding any other provision of law,
6        the court shall not deny a petition for sealing under
7        this Section because the petitioner has not satisfied
8        an outstanding legal financial obligation established,
9        imposed, or originated by a court, law enforcement
10        agency, or a municipal, State, county, or other unit of
11        local government, including, but not limited to, any
12        cost, assessment, fine, or fee. An outstanding legal
13        financial obligation does not include any court
14        ordered restitution to a victim under Section 5-5-6 of
15        the Unified Code of Corrections, unless the
16        restitution has been converted to a civil judgment.
17        Nothing in this subparagraph (C) waives, rescinds, or
18        abrogates a legal financial obligation or otherwise
19        eliminates or affects the right of the holder of any
20        financial obligation to pursue collection under
21        applicable federal, State, or local law.
22        (7) Hearings. If an objection is filed, the court shall
23    set a date for a hearing and notify the petitioner and all
24    parties entitled to notice of the petition of the hearing
25    date at least 30 days prior to the hearing. Prior to the
26    hearing, the State's Attorney shall consult with the

 

 

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1    Department as to the appropriateness of the relief sought
2    in the petition to expunge or seal. At the hearing, the
3    court shall hear evidence on whether the petition should or
4    should not be granted, and shall grant or deny the petition
5    to expunge or seal the records based on the evidence
6    presented at the hearing. The court may consider the
7    following:
8            (A) the strength of the evidence supporting the
9        defendant's conviction;
10            (B) the reasons for retention of the conviction
11        records by the State;
12            (C) the petitioner's age, criminal record history,
13        and employment history;
14            (D) the period of time between the petitioner's
15        arrest on the charge resulting in the conviction and
16        the filing of the petition under this Section; and
17            (E) the specific adverse consequences the
18        petitioner may be subject to if the petition is denied.
19        (8) Service of order. After entering an order to
20    expunge or seal records, the court must provide copies of
21    the order to the Department, in a form and manner
22    prescribed by the Department, to the petitioner, to the
23    State's Attorney or prosecutor charged with the duty of
24    prosecuting the offense, to the arresting agency, to the
25    chief legal officer of the unit of local government
26    effecting the arrest, and to such other criminal justice

 

 

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1    agencies as may be ordered by the court.
2        (9) Implementation of order.
3            (A) Upon entry of an order to expunge records
4        pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:
5                (i) the records shall be expunged (as defined
6            in subsection (a)(1)(E)) by the arresting agency,
7            the Department, and any other agency as ordered by
8            the court, within 60 days of the date of service of
9            the order, unless a motion to vacate, modify, or
10            reconsider the order is filed pursuant to
11            paragraph (12) of subsection (d) of this Section;
12                (ii) the records of the circuit court clerk
13            shall be impounded until further order of the court
14            upon good cause shown and the name of the
15            petitioner obliterated on the official index
16            required to be kept by the circuit court clerk
17            under Section 16 of the Clerks of Courts Act, but
18            the order shall not affect any index issued by the
19            circuit court clerk before the entry of the order;
20            and
21                (iii) in response to an inquiry for expunged
22            records, the court, the Department, or the agency
23            receiving such inquiry, shall reply as it does in
24            response to inquiries when no records ever
25            existed.
26            (B) Upon entry of an order to expunge records

 

 

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1        pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:
2                (i) the records shall be expunged (as defined
3            in subsection (a)(1)(E)) by the arresting agency
4            and any other agency as ordered by the court,
5            within 60 days of the date of service of the order,
6            unless a motion to vacate, modify, or reconsider
7            the order is filed pursuant to paragraph (12) of
8            subsection (d) of this Section;
9                (ii) the records of the circuit court clerk
10            shall be impounded until further order of the court
11            upon good cause shown and the name of the
12            petitioner obliterated on the official index
13            required to be kept by the circuit court clerk
14            under Section 16 of the Clerks of Courts Act, but
15            the order shall not affect any index issued by the
16            circuit court clerk before the entry of the order;
17                (iii) the records shall be impounded by the
18            Department within 60 days of the date of service of
19            the order as ordered by the court, unless a motion
20            to vacate, modify, or reconsider the order is filed
21            pursuant to paragraph (12) of subsection (d) of
22            this Section;
23                (iv) records impounded by the Department may
24            be disseminated by the Department only as required
25            by law or to the arresting authority, the State's
26            Attorney, and the court upon a later arrest for the

 

 

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1            same or a similar offense or for the purpose of
2            sentencing for any subsequent felony, and to the
3            Department of Corrections upon conviction for any
4            offense; and
5                (v) in response to an inquiry for such records
6            from anyone not authorized by law to access such
7            records, the court, the Department, or the agency
8            receiving such inquiry shall reply as it does in
9            response to inquiries when no records ever
10            existed.
11            (B-5) Upon entry of an order to expunge records
12        under subsection (e-6):
13                (i) the records shall be expunged (as defined
14            in subsection (a)(1)(E)) by the arresting agency
15            and any other agency as ordered by the court,
16            within 60 days of the date of service of the order,
17            unless a motion to vacate, modify, or reconsider
18            the order is filed under paragraph (12) of
19            subsection (d) of this Section;
20                (ii) the records of the circuit court clerk
21            shall be impounded until further order of the court
22            upon good cause shown and the name of the
23            petitioner obliterated on the official index
24            required to be kept by the circuit court clerk
25            under Section 16 of the Clerks of Courts Act, but
26            the order shall not affect any index issued by the

 

 

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1            circuit court clerk before the entry of the order;
2                (iii) the records shall be impounded by the
3            Department within 60 days of the date of service of
4            the order as ordered by the court, unless a motion
5            to vacate, modify, or reconsider the order is filed
6            under paragraph (12) of subsection (d) of this
7            Section;
8                (iv) records impounded by the Department may
9            be disseminated by the Department only as required
10            by law or to the arresting authority, the State's
11            Attorney, and the court upon a later arrest for the
12            same or a similar offense or for the purpose of
13            sentencing for any subsequent felony, and to the
14            Department of Corrections upon conviction for any
15            offense; and
16                (v) in response to an inquiry for these records
17            from anyone not authorized by law to access the
18            records, the court, the Department, or the agency
19            receiving the inquiry shall reply as it does in
20            response to inquiries when no records ever
21            existed.
22            (C) Upon entry of an order to seal records under
23        subsection (c), the arresting agency, any other agency
24        as ordered by the court, the Department, and the court
25        shall seal the records (as defined in subsection
26        (a)(1)(K)). In response to an inquiry for such records,

 

 

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1        from anyone not authorized by law to access such
2        records, the court, the Department, or the agency
3        receiving such inquiry shall reply as it does in
4        response to inquiries when no records ever existed.
5            (D) The Department shall send written notice to the
6        petitioner of its compliance with each order to expunge
7        or seal records within 60 days of the date of service
8        of that order or, if a motion to vacate, modify, or
9        reconsider is filed, within 60 days of service of the
10        order resolving the motion, if that order requires the
11        Department to expunge or seal records. In the event of
12        an appeal from the circuit court order, the Department
13        shall send written notice to the petitioner of its
14        compliance with an Appellate Court or Supreme Court
15        judgment to expunge or seal records within 60 days of
16        the issuance of the court's mandate. The notice is not
17        required while any motion to vacate, modify, or
18        reconsider, or any appeal or petition for
19        discretionary appellate review, is pending.
20            (E) Upon motion, the court may order that a sealed
21        judgment or other court record necessary to
22        demonstrate the amount of any legal financial
23        obligation due and owing be made available for the
24        limited purpose of collecting any legal financial
25        obligations owed by the petitioner that were
26        established, imposed, or originated in the criminal

 

 

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1        proceeding for which those records have been sealed.
2        The records made available under this subparagraph (E)
3        shall not be entered into the official index required
4        to be kept by the circuit court clerk under Section 16
5        of the Clerks of Courts Act and shall be immediately
6        re-impounded upon the collection of the outstanding
7        financial obligations.
8            (F) Notwithstanding any other provision of this
9        Section, a circuit court clerk may access a sealed
10        record for the limited purpose of collecting payment
11        for any legal financial obligations that were
12        established, imposed, or originated in the criminal
13        proceedings for which those records have been sealed.
14        (10) Fees. The Department may charge the petitioner a
15    fee equivalent to the cost of processing any order to
16    expunge or seal records. Notwithstanding any provision of
17    the Clerks of Courts Act to the contrary, the circuit court
18    clerk may charge a fee equivalent to the cost associated
19    with the sealing or expungement of records by the circuit
20    court clerk. From the total filing fee collected for the
21    petition to seal or expunge, the circuit court clerk shall
22    deposit $10 into the Circuit Court Clerk Operation and
23    Administrative Fund, to be used to offset the costs
24    incurred by the circuit court clerk in performing the
25    additional duties required to serve the petition to seal or
26    expunge on all parties. The circuit court clerk shall

 

 

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1    collect and forward the Department of State Police portion
2    of the fee to the Department and it shall be deposited in
3    the State Police Services Fund. If the record brought under
4    an expungement petition was previously sealed under this
5    Section, the fee for the expungement petition for that same
6    record shall be waived.
7        (11) Final Order. No court order issued under the
8    expungement or sealing provisions of this Section shall
9    become final for purposes of appeal until 30 days after
10    service of the order on the petitioner and all parties
11    entitled to notice of the petition.
12        (12) Motion to Vacate, Modify, or Reconsider. Under
13    Section 2-1203 of the Code of Civil Procedure, the
14    petitioner or any party entitled to notice may file a
15    motion to vacate, modify, or reconsider the order granting
16    or denying the petition to expunge or seal within 60 days
17    of service of the order. If filed more than 60 days after
18    service of the order, a petition to vacate, modify, or
19    reconsider shall comply with subsection (c) of Section
20    2-1401 of the Code of Civil Procedure. Upon filing of a
21    motion to vacate, modify, or reconsider, notice of the
22    motion shall be served upon the petitioner and all parties
23    entitled to notice of the petition.
24        (13) Effect of Order. An order granting a petition
25    under the expungement or sealing provisions of this Section
26    shall not be considered void because it fails to comply

 

 

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1    with the provisions of this Section or because of any error
2    asserted in a motion to vacate, modify, or reconsider. The
3    circuit court retains jurisdiction to determine whether
4    the order is voidable and to vacate, modify, or reconsider
5    its terms based on a motion filed under paragraph (12) of
6    this subsection (d).
7        (14) Compliance with Order Granting Petition to Seal
8    Records. Unless a court has entered a stay of an order
9    granting a petition to seal, all parties entitled to notice
10    of the petition must fully comply with the terms of the
11    order within 60 days of service of the order even if a
12    party is seeking relief from the order through a motion
13    filed under paragraph (12) of this subsection (d) or is
14    appealing the order.
15        (15) Compliance with Order Granting Petition to
16    Expunge Records. While a party is seeking relief from the
17    order granting the petition to expunge through a motion
18    filed under paragraph (12) of this subsection (d) or is
19    appealing the order, and unless a court has entered a stay
20    of that order, the parties entitled to notice of the
21    petition must seal, but need not expunge, the records until
22    there is a final order on the motion for relief or, in the
23    case of an appeal, the issuance of that court's mandate.
24        (16) The changes to this subsection (d) made by Public
25    Act 98-163 apply to all petitions pending on August 5, 2013
26    (the effective date of Public Act 98-163) and to all orders

 

 

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1    ruling on a petition to expunge or seal on or after August
2    5, 2013 (the effective date of Public Act 98-163).
3    (e) Whenever a person who has been convicted of an offense
4is granted a pardon by the Governor which specifically
5authorizes expungement, he or she may, upon verified petition
6to the Chief Judge of the circuit where the person had been
7convicted, any judge of the circuit designated by the Chief
8Judge, or in counties of less than 3,000,000 inhabitants, the
9presiding trial judge at the defendant's trial, have a court
10order entered expunging the record of arrest from the official
11records of the arresting authority and order that the records
12of the circuit court clerk and the Department be sealed until
13further order of the court upon good cause shown or as
14otherwise provided herein, and the name of the defendant
15obliterated from the official index requested to be kept by the
16circuit court clerk under Section 16 of the Clerks of Courts
17Act in connection with the arrest and conviction for the
18offense for which he or she had been pardoned but the order
19shall not affect any index issued by the circuit court clerk
20before the entry of the order. All records sealed by the
21Department may be disseminated by the Department only to the
22arresting authority, the State's Attorney, and the court upon a
23later arrest for the same or similar offense or for the purpose
24of sentencing for any subsequent felony. Upon conviction for
25any subsequent offense, the Department of Corrections shall
26have access to all sealed records of the Department pertaining

 

 

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1to that individual. Upon entry of the order of expungement, the
2circuit court clerk shall promptly mail a copy of the order to
3the person who was pardoned.
4    (e-5) Whenever a person who has been convicted of an
5offense is granted a certificate of eligibility for sealing by
6the Prisoner Review Board which specifically authorizes
7sealing, he or she may, upon verified petition to the Chief
8Judge of the circuit where the person had been convicted, any
9judge of the circuit designated by the Chief Judge, or in
10counties of less than 3,000,000 inhabitants, the presiding
11trial judge at the petitioner's trial, have a court order
12entered sealing the record of arrest from the official records
13of the arresting authority and order that the records of the
14circuit court clerk and the Department be sealed until further
15order of the court upon good cause shown or as otherwise
16provided herein, and the name of the petitioner obliterated
17from the official index requested to be kept by the circuit
18court clerk under Section 16 of the Clerks of Courts Act in
19connection with the arrest and conviction for the offense for
20which he or she had been granted the certificate but the order
21shall not affect any index issued by the circuit court clerk
22before the entry of the order. All records sealed by the
23Department may be disseminated by the Department only as
24required by this Act or to the arresting authority, a law
25enforcement agency, the State's Attorney, and the court upon a
26later arrest for the same or similar offense or for the purpose

 

 

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1of sentencing for any subsequent felony. Upon conviction for
2any subsequent offense, the Department of Corrections shall
3have access to all sealed records of the Department pertaining
4to that individual. Upon entry of the order of sealing, the
5circuit court clerk shall promptly mail a copy of the order to
6the person who was granted the certificate of eligibility for
7sealing.
8    (e-6) Whenever a person who has been convicted of an
9offense is granted a certificate of eligibility for expungement
10by the Prisoner Review Board which specifically authorizes
11expungement, he or she may, upon verified petition to the Chief
12Judge of the circuit where the person had been convicted, any
13judge of the circuit designated by the Chief Judge, or in
14counties of less than 3,000,000 inhabitants, the presiding
15trial judge at the petitioner's trial, have a court order
16entered expunging the record of arrest from the official
17records of the arresting authority and order that the records
18of the circuit court clerk and the Department be sealed until
19further order of the court upon good cause shown or as
20otherwise provided herein, and the name of the petitioner
21obliterated from the official index requested to be kept by the
22circuit court clerk under Section 16 of the Clerks of Courts
23Act in connection with the arrest and conviction for the
24offense for which he or she had been granted the certificate
25but the order shall not affect any index issued by the circuit
26court clerk before the entry of the order. All records sealed

 

 

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1by the Department may be disseminated by the Department only as
2required by this Act or to the arresting authority, a law
3enforcement agency, the State's Attorney, and the court upon a
4later arrest for the same or similar offense or for the purpose
5of sentencing for any subsequent felony. Upon conviction for
6any subsequent offense, the Department of Corrections shall
7have access to all expunged records of the Department
8pertaining to that individual. Upon entry of the order of
9expungement, the circuit court clerk shall promptly mail a copy
10of the order to the person who was granted the certificate of
11eligibility for expungement.
12    (f) Subject to available funding, the Illinois Department
13of Corrections shall conduct a study of the impact of sealing,
14especially on employment and recidivism rates, utilizing a
15random sample of those who apply for the sealing of their
16criminal records under Public Act 93-211. At the request of the
17Illinois Department of Corrections, records of the Illinois
18Department of Employment Security shall be utilized as
19appropriate to assist in the study. The study shall not
20disclose any data in a manner that would allow the
21identification of any particular individual or employing unit.
22The study shall be made available to the General Assembly no
23later than September 1, 2010.
24    (g) Immediate Sealing.
25        (1) Applicability. Notwithstanding any other provision
26    of this Act to the contrary, and cumulative with any rights

 

 

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1    to expungement or sealing of criminal records, this
2    subsection authorizes the immediate sealing of criminal
3    records of adults and of minors prosecuted as adults.
4        (2) Eligible Records. Arrests or charges not initiated
5    by arrest resulting in acquittal or dismissal with
6    prejudice, except as excluded by subsection (a)(3)(B),
7    that occur on or after January 1, 2018 (the effective date
8    of Public Act 100-282), may be sealed immediately if the
9    petition is filed with the circuit court clerk on the same
10    day and during the same hearing in which the case is
11    disposed.
12        (3) When Records are Eligible to be Immediately Sealed.
13    Eligible records under paragraph (2) of this subsection (g)
14    may be sealed immediately after entry of the final
15    disposition of a case, notwithstanding the disposition of
16    other charges in the same case.
17        (4) Notice of Eligibility for Immediate Sealing. Upon
18    entry of a disposition for an eligible record under this
19    subsection (g), the defendant shall be informed by the
20    court of his or her right to have eligible records
21    immediately sealed and the procedure for the immediate
22    sealing of these records.
23        (5) Procedure. The following procedures apply to
24    immediate sealing under this subsection (g).
25            (A) Filing the Petition. Upon entry of the final
26        disposition of the case, the defendant's attorney may

 

 

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1        immediately petition the court, on behalf of the
2        defendant, for immediate sealing of eligible records
3        under paragraph (2) of this subsection (g) that are
4        entered on or after January 1, 2018 (the effective date
5        of Public Act 100-282). The immediate sealing petition
6        may be filed with the circuit court clerk during the
7        hearing in which the final disposition of the case is
8        entered. If the defendant's attorney does not file the
9        petition for immediate sealing during the hearing, the
10        defendant may file a petition for sealing at any time
11        as authorized under subsection (c)(3)(A).
12            (B) Contents of Petition. The immediate sealing
13        petition shall be verified and shall contain the
14        petitioner's name, date of birth, current address, and
15        for each eligible record, the case number, the date of
16        arrest if applicable, the identity of the arresting
17        authority if applicable, and other information as the
18        court may require.
19            (C) Drug Test. The petitioner shall not be required
20        to attach proof that he or she has passed a drug test.
21            (D) Service of Petition. A copy of the petition
22        shall be served on the State's Attorney in open court.
23        The petitioner shall not be required to serve a copy of
24        the petition on any other agency.
25            (E) Entry of Order. The presiding trial judge shall
26        enter an order granting or denying the petition for

 

 

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1        immediate sealing during the hearing in which it is
2        filed. Petitions for immediate sealing shall be ruled
3        on in the same hearing in which the final disposition
4        of the case is entered.
5            (F) Hearings. The court shall hear the petition for
6        immediate sealing on the same day and during the same
7        hearing in which the disposition is rendered.
8            (G) Service of Order. An order to immediately seal
9        eligible records shall be served in conformance with
10        subsection (d)(8).
11            (H) Implementation of Order. An order to
12        immediately seal records shall be implemented in
13        conformance with subsections (d)(9)(C) and (d)(9)(D).
14            (I) Fees. The fee imposed by the circuit court
15        clerk and the Department of State Police shall comply
16        with paragraph (1) of subsection (d) of this Section.
17            (J) Final Order. No court order issued under this
18        subsection (g) shall become final for purposes of
19        appeal until 30 days after service of the order on the
20        petitioner and all parties entitled to service of the
21        order in conformance with subsection (d)(8).
22            (K) Motion to Vacate, Modify, or Reconsider. Under
23        Section 2-1203 of the Code of Civil Procedure, the
24        petitioner, State's Attorney, or the Department of
25        State Police may file a motion to vacate, modify, or
26        reconsider the order denying the petition to

 

 

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1        immediately seal within 60 days of service of the
2        order. If filed more than 60 days after service of the
3        order, a petition to vacate, modify, or reconsider
4        shall comply with subsection (c) of Section 2-1401 of
5        the Code of Civil Procedure.
6            (L) Effect of Order. An order granting an immediate
7        sealing petition shall not be considered void because
8        it fails to comply with the provisions of this Section
9        or because of an error asserted in a motion to vacate,
10        modify, or reconsider. The circuit court retains
11        jurisdiction to determine whether the order is
12        voidable, and to vacate, modify, or reconsider its
13        terms based on a motion filed under subparagraph (L) of
14        this subsection (g).
15            (M) Compliance with Order Granting Petition to
16        Seal Records. Unless a court has entered a stay of an
17        order granting a petition to immediately seal, all
18        parties entitled to service of the order must fully
19        comply with the terms of the order within 60 days of
20        service of the order.
21    (h) Sealing; trafficking victims.
22        (1) A trafficking victim as defined by paragraph (10)
23    of subsection (a) of Section 10-9 of the Criminal Code of
24    2012 shall be eligible to petition for immediate sealing of
25    his or her criminal record upon the completion of his or
26    her last sentence if his or her participation in the

 

 

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1    underlying offense was a direct result of human trafficking
2    under Section 10-9 of the Criminal Code of 2012 or a severe
3    form of trafficking under the federal Trafficking Victims
4    Protection Act.
5        (2) A petitioner under this subsection (h), in addition
6    to the requirements provided under paragraph (4) of
7    subsection (d) of this Section, shall include in his or her
8    petition a clear and concise statement that: (A) he or she
9    was a victim of human trafficking at the time of the
10    offense; and (B) that his or her participation in the
11    offense was a direct result of human trafficking under
12    Section 10-9 of the Criminal Code of 2012 or a severe form
13    of trafficking under the federal Trafficking Victims
14    Protection Act.
15        (3) If an objection is filed alleging that the
16    petitioner is not entitled to immediate sealing under this
17    subsection (h), the court shall conduct a hearing under
18    paragraph (7) of subsection (d) of this Section and the
19    court shall determine whether the petitioner is entitled to
20    immediate sealing under this subsection (h). A petitioner
21    is eligible for immediate relief under this subsection (h)
22    if he or she shows, by a preponderance of the evidence,
23    that: (A) he or she was a victim of human trafficking at
24    the time of the offense; and (B) that his or her
25    participation in the offense was a direct result of human
26    trafficking under Section 10-9 of the Criminal Code of 2012

 

 

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1    or a severe form of trafficking under the federal
2    Trafficking Victims Protection Act.
3    (i) Minor Cannabis Offenses under the Cannabis Control Act.
4        (1) Expungement of Arrest Records of Minor Cannabis
5    Offenses.
6            (A) The Department of State Police and all law
7        enforcement agencies within the State shall
8        automatically expunge all criminal history records of
9        an arrest, charge not initiated by arrest, order of
10        supervision, or order of qualified probation for a
11        Minor Cannabis Offense committed prior to the
12        effective date of this amendatory Act of the 101st
13        General Assembly if:
14                (i) One year or more has elapsed since the date
15            of the arrest or law enforcement interaction
16            documented in the records; and
17                (ii) No criminal charges were filed relating
18            to the arrest or law enforcement interaction or
19            criminal charges were filed and subsequently
20            dismissed or vacated or the arrestee was
21            acquitted.
22            (B) If the law enforcement agency is unable to
23        verify satisfaction of condition (ii) in paragraph
24        (A), records that satisfy condition (i) in paragraph
25        (A) shall be automatically expunged.
26            (C) Records shall be expunged pursuant to the

 

 

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1        procedures set forth in subdivision (d)(9)(A) under
2        the following timelines:
3                (i) Records created prior to the effective
4            date of this amendatory Act of the 101st General
5            Assembly, but on or after January 1, 2013, shall be
6            automatically expunged prior to January 1, 2021;
7                (ii) Records created prior to January 1, 2013,
8            but on or after January 1, 2000, shall be
9            automatically expunged prior to January 1, 2023;
10                (iii) Records created prior to January 1, 2000
11            shall be automatically expunged prior to January
12            1, 2025.
13            (D) Nothing in this Section shall be construed to
14        restrict or modify an individual's right to have that
15        individual's records expunged except as otherwise may
16        be provided in this Act, or diminish or abrogate any
17        rights or remedies otherwise available to the
18        individual.
19        (2) Pardons Authorizing Expungement of Minor Cannabis
20    Offenses.
21            (A) Upon the effective date of this amendatory Act
22        of the 101st General Assembly, the Department of State
23        Police shall review all criminal history record
24        information and identify all records that meet all of
25        the following criteria:
26                (i) one or more convictions for a Minor

 

 

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1            Cannabis Offense;
2                (ii) the conviction identified in paragraph
3            (2)(A)(i) did not include a penalty enhancement
4            under Section 7 of the Cannabis Control Act; and
5                (iii) The conviction identified in paragraph
6            (2)(A)(i) is not associated with an arrest,
7            conviction or other disposition for a violent
8            crime as defined in subsection (c) of Section 3 of
9            the Rights of Crime Victims and Witnesses Act.
10            (B) Within 180 days after the effective date of
11        this amendatory Act of the 101st General Assembly, the
12        Department of State Police shall notify the Prisoner
13        Review Board of all such records that meet the criteria
14        established in paragraph (2)(A).
15                (i) The Prisoner Review Board shall notify the
16            State's Attorney of the county of conviction of
17            each record identified by State Police in
18            paragraph (2)(A) that is classified as a Class 4
19            felony. The State's Attorney may provide a written
20            objection to the Prisoner Review Board on the sole
21            basis that the record identified does not meet the
22            criteria established in paragraph (2)(A). Such an
23            objection must be filed within 60 days or by such
24            later date set by Prisoner Review Board in the
25            notice after the State's Attorney received notice
26            from the Prisoner Review Board.

 

 

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1                (ii) In response to a written objection from a
2            State's Attorney, the Prisoner Review Board is
3            authorized to conduct a non-public hearing to
4            evaluate the information provided in the
5            objection.
6                (iii) The Prisoner Review Board shall make a
7            confidential and privileged recommendation to the
8            Governor as to whether to grant a pardon
9            authorizing expungement for each of the records
10            identified by the Department of State Police as
11            described in paragraph (2)(A).
12            (C) If an individual has been granted a pardon
13        authorizing expungement as described in this Section,
14        the Prisoner Review Board, through the Attorney
15        General, shall file a petition for expungement with the
16        Chief Judge of the circuit or any judge of the circuit
17        designated by the Chief Judge where the individual had
18        been convicted. Such petition may include more than one
19        individual. Whenever an individual who has been
20        convicted of an offense is granted a pardon by the
21        Governor that specifically authorizes expungement, an
22        objection to the petition may not be filed. Petitions
23        to expunge under this subsection (i) may include more
24        than one individual. Within 90 days of the filing of
25        such a petition, the court shall enter an order
26        expunging the records of arrest from the official

 

 

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1        records of the arresting authority and order that the
2        records of the circuit court clerk and the Department
3        of State Police be expunged and the name of the
4        defendant obliterated from the official index
5        requested to be kept by the circuit court clerk under
6        Section 16 of the Clerks of Courts Act in connection
7        with the arrest and conviction for the offense for
8        which the individual had received a pardon but the
9        order shall not affect any index issued by the circuit
10        court clerk before the entry of the order. Upon entry
11        of the order of expungement, the circuit court clerk
12        shall promptly provide a copy of the order to the
13        individual who was pardoned to the individual's last
14        known address or otherwise make available to the
15        individual upon request.
16            (D) Nothing in this Section is intended to diminish
17        or abrogate any rights or remedies otherwise available
18        to the individual.
19        (3) Any individual may file a motion to vacate and
20    expunge a conviction for a misdemeanor or Class 4 felony
21    violation of Section 4 or Section 5 of the Cannabis Control
22    Act. Motions to vacate and expunge under this subsection
23    (i) may be filed with the circuit court, Chief Judge of a
24    judicial circuit or any judge of the circuit designated by
25    the Chief Judge. When considering such a motion to vacate
26    and expunge, a court shall consider the following: the

 

 

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1    reasons to retain the records provided by law enforcement,
2    the petitioner's age, the petitioner's age at the time of
3    offense, the time since the conviction, and the specific
4    adverse consequences if denied. An individual may file such
5    a petition after the completion of any sentence or
6    condition imposed by the conviction. Within 60 days of the
7    filing of such motion, a State's Attorney may file an
8    objection to such a petition along with supporting
9    evidence. If a motion to vacate and expunge is granted, the
10    records shall be expunged in accordance with subparagraph
11    (d)(9)(A) of this Section. An agency providing civil legal
12    aid, as defined by Section 15 of the Public Interest
13    Attorney Assistance Act, assisting individuals seeking to
14    file a motion to vacate and expunge under this subsection
15    may file motions to vacate and expunge with the Chief Judge
16    of a judicial circuit or any judge of the circuit
17    designated by the Chief Judge, and the motion may include
18    more than one individual.
19        (4) Any State's Attorney may file a motion to vacate
20    and expunge a conviction for a misdemeanor or Class 4
21    felony violation of Section 4 or Section 5 of the Cannabis
22    Control Act. Motions to vacate and expunge under this
23    subsection (i) may be filed with the circuit court, Chief
24    Judge of a judicial circuit or any judge of the circuit
25    designated by the Chief Judge, and may include more than
26    one individual. When considering such a motion to vacate

 

 

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1    and expunge, a court shall consider the following: the
2    reasons to retain the records provided by law enforcement,
3    the individual's age, the individual's age at the time of
4    offense, the time since the conviction, and the specific
5    adverse consequences if denied. If the State's Attorney
6    files a motion to vacate and expunge records for Minor
7    Cannabis Offenses pursuant to this Section, the State's
8    Attorney shall notify the Prisoner Review Board within 30
9    days of such filing. If a motion to vacate and expunge is
10    granted, the records shall be expunged in accordance with
11    subparagraph (d)(9)(A) of this Section.
12        (5) In the public interest, the State's Attorney of a
13    county has standing to file motions to vacate and expunge
14    pursuant to this Section in the circuit court with
15    jurisdiction over the underlying conviction.
16        (6) If a person is arrested for a Minor Cannabis
17    Offense as defined in this Section before the effective
18    date of this amendatory Act of the 101st General Assembly
19    and the person's case is still pending but a sentence has
20    not been imposed, the person may petition the court in
21    which the charges are pending for an order to summarily
22    dismiss those charges against him or her, and expunge all
23    official records of his or her arrest, plea, trial,
24    conviction, incarceration, supervision, or expungement. If
25    the court determines, upon review, that: (A) the person was
26    arrested before the effective date of this amendatory Act

 

 

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1    of the 101st General Assembly for an offense that has been
2    made eligible for expungement; (B) the case is pending at
3    the time; and (C) the person has not been sentenced of the
4    minor cannabis violation eligible for expungement under
5    this subsection, the court shall consider the following:
6    the reasons to retain the records provided by law
7    enforcement, the petitioner's age, the petitioner's age at
8    the time of offense, the time since the conviction, and the
9    specific adverse consequences if denied. If a motion to
10    dismiss and expunge is granted, the records shall be
11    expunged in accordance with subparagraph (d)(9)(A) of this
12    Section.
13        (7) A person imprisoned solely as a result of one or
14    more convictions for Minor Cannabis Offenses under this
15    subsection (i) shall be released from incarceration upon
16    the issuance of an order under this subsection.
17        (8) The Department of State Police shall allow a person
18    to use the access and review process, established in the
19    Department of State Police, for verifying that his or her
20    records relating to Minor Cannabis Offenses of the Cannabis
21    Control Act eligible under this Section have been expunged.
22        (9)No conviction vacated pursuant to this Section
23    shall serve as the basis for damages for time unjustly
24    served as provided in the Court of Claims Act.
25        (10) Effect of Expungement. A person's right to expunge
26    an expungeable offense shall not be limited under this

 

 

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1    Section. The effect of an order of expungement shall be to
2    restore the person to the status he or she occupied before
3    the arrest, charge, or conviction.
4        (11) Information. The Department of State Police shall
5    post general information on its website about the
6    expungement process described in this subsection (i).
7(Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,
8eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;
999-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.
101-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,
11eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18;
12100-863, eff. 8-14-18; revised 8-30-18.)
 
13    Section 900-15. The State Finance Act is amended by adding
14Sections 5.891, 5.892, 5.893, 5.894, and 6z-107 as follows:
 
15    (30 ILCS 105/5.891 new)
16    Sec. 5.891. The Cannabis Regulation Fund.
 
17    (30 ILCS 105/5.892 new)
18    Sec. 5.892. The Cannabis Business Development Fund.
 
19    (30 ILCS 105/5.893 new)
20    Sec. 5.893. Local Cannabis Consumer Excise Tax Trust Fund.
 
21    (30 ILCS 105/5.894 new)

 

 

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1    Sec. 5.894. Cannabis Expungement Fund.
 
2    (30 ILCS 105/6z-107 new)
3    Sec. 6z-107. The Cannabis Regulation Fund.
4    (a) There is created the Cannabis Regulation Fund in the
5State treasury, subject to appropriations unless otherwise
6provided in this Section. All moneys collected under the
7Cannabis Regulation and Tax Act shall be deposited into the
8Cannabis Regulation Fund, consisting of taxes, license fees,
9other fees, and any other amounts required to be deposited or
10transferred into the Fund.
11    (b) Whenever the Department of Revenue determines that a
12refund should be made under the Cannabis Regulation and Tax Act
13to a claimant, the Department of Revenue shall submit a voucher
14for payment to the State Comptroller, who shall cause the order
15to be drawn for the amount specified and to the person named in
16the notification from the Department of Revenue. This
17subsection (b) shall constitute an irrevocable and continuing
18appropriation of all amounts necessary for the payment of
19refunds out of the Fund as authorized under this subsection
20(b).
21    (c) On or before the 25th day of each calendar month, the
22Department of Revenue shall prepare and certify to the State
23Comptroller the transfer and allocations of stated sums of
24money from the Cannabis Regulation Fund to other named funds in
25the State treasury. The amount subject to transfer shall be the

 

 

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1amount of the taxes, license fees, other fees, and any other
2amounts paid into the Fund during the second preceding calendar
3month, minus the refunds made under subsection (b) during the
4second preceding calendar month by the Department. The
5transfers shall be certified as follows:
6        (1) The Department of Revenue shall first determine the
7    allocations which shall remain in the Cannabis Regulation
8    Fund, subject to appropriations, to pay for the direct and
9    indirect costs associated with the implementation,
10    administration, and enforcement of the Cannabis Regulation
11    and Tax Act by the Department of Revenue, the Department of
12    State Police, the Department of Financial and Professional
13    Regulation, the Department of Agriculture, the Department
14    of Public Health, the Department of Commerce and Economic
15    Opportunity, and the Illinois Criminal Justice Information
16    Authority.
17        (2) After the allocations have been made as provided in
18    paragraph (1) of this subsection (c), of the remainder of
19    the amount subject to transfer for the month as determined
20    in this subsection (c), the Department shall certify the
21    transfer into the Cannabis Expungement Fund 1/12 of the
22    fiscal year amount appropriated from the Cannabis
23    Expungement Fund for payment of costs incurred by State
24    courts, the Attorney General, State's Attorneys, civil
25    legal aid, as defined by Section 15 of the Public Interest
26    Attorney Assistance Act, and the Department of State Police

 

 

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1    to facilitate petitions for expungement of Minor Cannabis
2    Offenses pursuant to this amendatory Act of the 101st
3    General Assembly, as adjusted by any supplemental
4    appropriation, plus cumulative deficiencies in such
5    transfers for prior months.
6        (3) After the allocations have been made as provided in
7    paragraphs (1) and (2) of this subsection (c), the
8    Department of Revenue shall certify to the State
9    Comptroller and the State Treasurer shall transfer the
10    amounts that the Department of Revenue determines shall be
11    transferred into the following named funds according to the
12    following:
13            (A) 2% shall be transferred to the Drug Treatment
14        Fund to be used by the Department of Human Services
15        for: (i) developing and administering a scientifically
16        and medically accurate public education campaign
17        educating youth and adults about the health and safety
18        risks of alcohol, tobacco, illegal drug use (including
19        prescription drugs), and cannabis, including use by
20        pregnant women; and (ii) data collection and analysis
21        of the public health impacts of legalizing the
22        recreational use of cannabis. Expenditures for these
23        purposes shall be subject to appropriations.
24            (B) 8% shall be transferred to the Local Government
25        Distributive Fund and allocated as provided in Section
26        2 of the State Revenue Sharing Act. The moneys shall be

 

 

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1        used to fund crime prevention programs, training, and
2        interdiction efforts, including detection,
3        enforcement, and prevention efforts, relating to the
4        illegal cannabis market and driving under the
5        influence of cannabis.
6            (C) 25% shall be transferred to the Criminal
7        Justice Information Projects Fund to be used for the
8        purposes of the Restore, Reinvest, and Renew Program to
9        address economic development, violence prevention
10        services, re-entry services, youth development, and
11        civil legal aid, as defined by Section 15 of the Public
12        Interest Attorney Assistance Act. The Restore,
13        Reinvest, and Renew Program shall address these issues
14        through targeted investments and intervention programs
15        and promotion of an employment infrastructure and
16        capacity building related to the social determinants
17        of health in impacted community areas. Expenditures
18        for these purposes shall be subject to appropriations.
19            (D) 20% shall be transferred to the Department of
20        Human Services Community Services Fund, to be used to
21        address substance abuse and prevention and mental
22        health concerns, including treatment, education, and
23        prevention to address the negative impacts of
24        substance abuse and mental health issues, including
25        concentrated poverty, violence, and the historical
26        overuse of criminal justice responses in certain

 

 

HB1438 Enrolled- 417 -LRB101 04919 JRG 49928 b

1        communities, on the individual, family, and community,
2        including federal, State, and local governments,
3        health care institutions and providers, and
4        correctional facilities. Expenditures for these
5        purposes shall be subject to appropriations.
6            (E) 10% shall be transferred to the Budget
7        Stabilization Fund.
8            (F) 35%, or any remaining balance, shall be
9        transferred to the General Revenue Fund.
10    As soon as may be practical, but no later than 10 days
11after receipt, by the State Comptroller of the transfer
12certification provided for in this subsection (c) to be given
13to the State Comptroller by the Department of Revenue, the
14State Comptroller shall direct and the State Treasurer shall
15transfer the respective amounts in accordance with the
16directions contained in such certification.
17    (d) On July 1, 2019 the Department of Revenue shall certify
18to the State Comptroller and the State Treasurer shall transfer
19$5,000,000 from the Compassionate Use of Medical Cannabis Fund
20to the Cannabis Regulation Fund.
21    (e) Notwithstanding any other law to the contrary and
22except as otherwise provided in this Section, this Fund is not
23subject to sweeps, administrative charge-backs, or any other
24fiscal or budgetary maneuver that would in any way transfer any
25amounts from this Fund into any other fund of the State.
26    (f) The Cannabis Regulation Fund shall retain a balance of

 

 

HB1438 Enrolled- 418 -LRB101 04919 JRG 49928 b

1$1,000,000 for the purposes of administrative costs.
2    (g) In Fiscal Year 2024 the allocations in subsection (c)
3of this Section shall be reviewed and adjusted if the General
4Assembly finds there is a greater need for funding for a
5specific purpose in the State as it relates to this amendatory
6Act of the 101st General Assembly.
 
7    Section 900-15.5. The Illinois Procurement Code is amended
8by changing Section 1-10 as follows:
 
9    (30 ILCS 500/1-10)
10    Sec. 1-10. Application.
11    (a) This Code applies only to procurements for which
12bidders, offerors, potential contractors, or contractors were
13first solicited on or after July 1, 1998. This Code shall not
14be construed to affect or impair any contract, or any provision
15of a contract, entered into based on a solicitation prior to
16the implementation date of this Code as described in Article
1799, including but not limited to any covenant entered into with
18respect to any revenue bonds or similar instruments. All
19procurements for which contracts are solicited between the
20effective date of Articles 50 and 99 and July 1, 1998 shall be
21substantially in accordance with this Code and its intent.
22    (b) This Code shall apply regardless of the source of the
23funds with which the contracts are paid, including federal
24assistance moneys. This Code shall not apply to:

 

 

HB1438 Enrolled- 419 -LRB101 04919 JRG 49928 b

1        (1) Contracts between the State and its political
2    subdivisions or other governments, or between State
3    governmental bodies, except as specifically provided in
4    this Code.
5        (2) Grants, except for the filing requirements of
6    Section 20-80.
7        (3) Purchase of care, except as provided in Section
8    5-30.6 of the Illinois Public Aid Code and this Section.
9        (4) Hiring of an individual as employee and not as an
10    independent contractor, whether pursuant to an employment
11    code or policy or by contract directly with that
12    individual.
13        (5) Collective bargaining contracts.
14        (6) Purchase of real estate, except that notice of this
15    type of contract with a value of more than $25,000 must be
16    published in the Procurement Bulletin within 10 calendar
17    days after the deed is recorded in the county of
18    jurisdiction. The notice shall identify the real estate
19    purchased, the names of all parties to the contract, the
20    value of the contract, and the effective date of the
21    contract.
22        (7) Contracts necessary to prepare for anticipated
23    litigation, enforcement actions, or investigations,
24    provided that the chief legal counsel to the Governor shall
25    give his or her prior approval when the procuring agency is
26    one subject to the jurisdiction of the Governor, and

 

 

HB1438 Enrolled- 420 -LRB101 04919 JRG 49928 b

1    provided that the chief legal counsel of any other
2    procuring entity subject to this Code shall give his or her
3    prior approval when the procuring entity is not one subject
4    to the jurisdiction of the Governor.
5        (8) (Blank).
6        (9) Procurement expenditures by the Illinois
7    Conservation Foundation when only private funds are used.
8        (10) (Blank).
9        (11) Public-private agreements entered into according
10    to the procurement requirements of Section 20 of the
11    Public-Private Partnerships for Transportation Act and
12    design-build agreements entered into according to the
13    procurement requirements of Section 25 of the
14    Public-Private Partnerships for Transportation Act.
15        (12) Contracts for legal, financial, and other
16    professional and artistic services entered into on or
17    before December 31, 2018 by the Illinois Finance Authority
18    in which the State of Illinois is not obligated. Such
19    contracts shall be awarded through a competitive process
20    authorized by the Board of the Illinois Finance Authority
21    and are subject to Sections 5-30, 20-160, 50-13, 50-20,
22    50-35, and 50-37 of this Code, as well as the final
23    approval by the Board of the Illinois Finance Authority of
24    the terms of the contract.
25        (13) Contracts for services, commodities, and
26    equipment to support the delivery of timely forensic

 

 

HB1438 Enrolled- 421 -LRB101 04919 JRG 49928 b

1    science services in consultation with and subject to the
2    approval of the Chief Procurement Officer as provided in
3    subsection (d) of Section 5-4-3a of the Unified Code of
4    Corrections, except for the requirements of Sections
5    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
6    Code; however, the Chief Procurement Officer may, in
7    writing with justification, waive any certification
8    required under Article 50 of this Code. For any contracts
9    for services which are currently provided by members of a
10    collective bargaining agreement, the applicable terms of
11    the collective bargaining agreement concerning
12    subcontracting shall be followed.
13        On and after January 1, 2019, this paragraph (13),
14    except for this sentence, is inoperative.
15        (14) Contracts for participation expenditures required
16    by a domestic or international trade show or exhibition of
17    an exhibitor, member, or sponsor.
18        (15) Contracts with a railroad or utility that requires
19    the State to reimburse the railroad or utilities for the
20    relocation of utilities for construction or other public
21    purpose. Contracts included within this paragraph (15)
22    shall include, but not be limited to, those associated
23    with: relocations, crossings, installations, and
24    maintenance. For the purposes of this paragraph (15),
25    "railroad" means any form of non-highway ground
26    transportation that runs on rails or electromagnetic

 

 

HB1438 Enrolled- 422 -LRB101 04919 JRG 49928 b

1    guideways and "utility" means: (1) public utilities as
2    defined in Section 3-105 of the Public Utilities Act, (2)
3    telecommunications carriers as defined in Section 13-202
4    of the Public Utilities Act, (3) electric cooperatives as
5    defined in Section 3.4 of the Electric Supplier Act, (4)
6    telephone or telecommunications cooperatives as defined in
7    Section 13-212 of the Public Utilities Act, (5) rural water
8    or waste water systems with 10,000 connections or less, (6)
9    a holder as defined in Section 21-201 of the Public
10    Utilities Act, and (7) municipalities owning or operating
11    utility systems consisting of public utilities as that term
12    is defined in Section 11-117-2 of the Illinois Municipal
13    Code.
14        (16) Procurement expenditures necessary for the
15    Department of Public Health to provide the delivery of
16    timely newborn screening services in accordance with the
17    Newborn Metabolic Screening Act.
18        (17) (16) Procurement expenditures necessary for the
19    Department of Agriculture, the Department of Financial and
20    Professional Regulation, the Department of Human Services,
21    and the Department of Public Health to implement the
22    Compassionate Use of Medical Cannabis Pilot Program and
23    Opioid Alternative Pilot Program requirements and ensure
24    access to medical cannabis for patients with debilitating
25    medical conditions in accordance with the Compassionate
26    Use of Medical Cannabis Pilot Program Act.

 

 

HB1438 Enrolled- 423 -LRB101 04919 JRG 49928 b

1        (18) This Code does not apply to any procurements
2    necessary for the Department of Agriculture, the
3    Department of Financial and Professional Regulation, the
4    Department of Human Services, the Department of Commerce
5    and Economic Opportunity, and the Department of Public
6    Health to implement the Cannabis Regulation and Tax Act if
7    the applicable agency has made a good faith determination
8    that it is necessary and appropriate for the expenditure to
9    fall within this exemption and if the process is conducted
10    in a manner substantially in accordance with the
11    requirements of Sections 20-160, 25-60, 30-22, 50-5,
12    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
13    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
14    Section 50-35, compliance applies only to contracts or
15    subcontracts over $100,000. Notice of each contract
16    entered into under this paragraph (18) that is related to
17    the procurement of goods and services identified in
18    paragraph (1) through (9) of this subsection shall be
19    published in the Procurement Bulletin within 14 calendar
20    days after contract execution. The Chief Procurement
21    Officer shall prescribe the form and content of the notice.
22    Each agency shall provide the Chief Procurement Officer, on
23    a monthly basis, in the form and content prescribed by the
24    Chief Procurement Officer, a report of contracts that are
25    related to the procurement of goods and services identified
26    in this subsection. At a minimum, this report shall include

 

 

HB1438 Enrolled- 424 -LRB101 04919 JRG 49928 b

1    the name of the contractor, a description of the supply or
2    service provided, the total amount of the contract, the
3    term of the contract, and the exception to this Code
4    utilized. A copy of any or all of these contracts shall be
5    made available to the Chief Procurement Officer
6    immediately upon request. The Chief Procurement Officer
7    shall submit a report to the Governor and General Assembly
8    no later than November 1 of each year that includes, at a
9    minimum, an annual summary of the monthly information
10    reported to the Chief Procurement Officer. This exemption
11    becomes inoperative 5 years after the effective date of
12    this amendatory Act of the 101st General Assembly.
13    Notwithstanding any other provision of law, for contracts
14entered into on or after October 1, 2017 under an exemption
15provided in any paragraph of this subsection (b), except
16paragraph (1), (2), or (5), each State agency shall post to the
17appropriate procurement bulletin the name of the contractor, a
18description of the supply or service provided, the total amount
19of the contract, the term of the contract, and the exception to
20the Code utilized. The chief procurement officer shall submit a
21report to the Governor and General Assembly no later than
22November 1 of each year that shall include, at a minimum, an
23annual summary of the monthly information reported to the chief
24procurement officer.
25    (c) This Code does not apply to the electric power
26procurement process provided for under Section 1-75 of the

 

 

HB1438 Enrolled- 425 -LRB101 04919 JRG 49928 b

1Illinois Power Agency Act and Section 16-111.5 of the Public
2Utilities Act.
3    (d) Except for Section 20-160 and Article 50 of this Code,
4and as expressly required by Section 9.1 of the Illinois
5Lottery Law, the provisions of this Code do not apply to the
6procurement process provided for under Section 9.1 of the
7Illinois Lottery Law.
8    (e) This Code does not apply to the process used by the
9Capital Development Board to retain a person or entity to
10assist the Capital Development Board with its duties related to
11the determination of costs of a clean coal SNG brownfield
12facility, as defined by Section 1-10 of the Illinois Power
13Agency Act, as required in subsection (h-3) of Section 9-220 of
14the Public Utilities Act, including calculating the range of
15capital costs, the range of operating and maintenance costs, or
16the sequestration costs or monitoring the construction of clean
17coal SNG brownfield facility for the full duration of
18construction.
19    (f) (Blank).
20    (g) (Blank).
21    (h) This Code does not apply to the process to procure or
22contracts entered into in accordance with Sections 11-5.2 and
2311-5.3 of the Illinois Public Aid Code.
24    (i) Each chief procurement officer may access records
25necessary to review whether a contract, purchase, or other
26expenditure is or is not subject to the provisions of this

 

 

HB1438 Enrolled- 426 -LRB101 04919 JRG 49928 b

1Code, unless such records would be subject to attorney-client
2privilege.
3    (j) This Code does not apply to the process used by the
4Capital Development Board to retain an artist or work or works
5of art as required in Section 14 of the Capital Development
6Board Act.
7    (k) This Code does not apply to the process to procure
8contracts, or contracts entered into, by the State Board of
9Elections or the State Electoral Board for hearing officers
10appointed pursuant to the Election Code.
11    (l) This Code does not apply to the processes used by the
12Illinois Student Assistance Commission to procure supplies and
13services paid for from the private funds of the Illinois
14Prepaid Tuition Fund. As used in this subsection (l), "private
15funds" means funds derived from deposits paid into the Illinois
16Prepaid Tuition Trust Fund and the earnings thereon.
17(Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17;
18100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff.
198-28-18; revised 10-18-18.)
 
20    Section 900-16. The Use Tax Act is amended by changing
21Section 9 as follows:
 
22    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
23    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
24and trailers that are required to be registered with an agency

 

 

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1of this State, each retailer required or authorized to collect
2the tax imposed by this Act shall pay to the Department the
3amount of such tax (except as otherwise provided) at the time
4when he is required to file his return for the period during
5which such tax was collected, less a discount of 2.1% prior to
6January 1, 1990, and 1.75% on and after January 1, 1990, or $5
7per calendar year, whichever is greater, which is allowed to
8reimburse the retailer for expenses incurred in collecting the
9tax, keeping records, preparing and filing returns, remitting
10the tax and supplying data to the Department on request. In the
11case of retailers who report and pay the tax on a transaction
12by transaction basis, as provided in this Section, such
13discount shall be taken with each such tax remittance instead
14of when such retailer files his periodic return. The discount
15allowed under this Section is allowed only for returns that are
16filed in the manner required by this Act. The Department may
17disallow the discount for retailers whose certificate of
18registration is revoked at the time the return is filed, but
19only if the Department's decision to revoke the certificate of
20registration has become final. A retailer need not remit that
21part of any tax collected by him to the extent that he is
22required to remit and does remit the tax imposed by the
23Retailers' Occupation Tax Act, with respect to the sale of the
24same property.
25    Where such tangible personal property is sold under a
26conditional sales contract, or under any other form of sale

 

 

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1wherein the payment of the principal sum, or a part thereof, is
2extended beyond the close of the period for which the return is
3filed, the retailer, in collecting the tax (except as to motor
4vehicles, watercraft, aircraft, and trailers that are required
5to be registered with an agency of this State), may collect for
6each tax return period, only the tax applicable to that part of
7the selling price actually received during such tax return
8period.
9    Except as provided in this Section, on or before the
10twentieth day of each calendar month, such retailer shall file
11a return for the preceding calendar month. Such return shall be
12filed on forms prescribed by the Department and shall furnish
13such information as the Department may reasonably require. On
14and after January 1, 2018, except for returns for motor
15vehicles, watercraft, aircraft, and trailers that are required
16to be registered with an agency of this State, with respect to
17retailers whose annual gross receipts average $20,000 or more,
18all returns required to be filed pursuant to this Act shall be
19filed electronically. Retailers who demonstrate that they do
20not have access to the Internet or demonstrate hardship in
21filing electronically may petition the Department to waive the
22electronic filing requirement.
23    The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

 

 

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1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4        1. The name of the seller;
5        2. The address of the principal place of business from
6    which he engages in the business of selling tangible
7    personal property at retail in this State;
8        3. The total amount of taxable receipts received by him
9    during the preceding calendar month from sales of tangible
10    personal property by him during such preceding calendar
11    month, including receipts from charge and time sales, but
12    less all deductions allowed by law;
13        4. The amount of credit provided in Section 2d of this
14    Act;
15        5. The amount of tax due;
16        5-5. The signature of the taxpayer; and
17        6. Such other reasonable information as the Department
18    may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    Notwithstanding any other provision of this Act to the
24contrary, retailers subject to tax on cannabis shall file all
25cannabis tax returns and shall make all cannabis tax payments
26by electronic means in the manner and form required by the

 

 

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1Department.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

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1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Before October 1, 2000, if the taxpayer's average monthly
17tax liability to the Department under this Act, the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act, the Service
19Use Tax Act was $10,000 or more during the preceding 4 complete
20calendar quarters, he shall file a return with the Department
21each month by the 20th day of the month next following the
22month during which such tax liability is incurred and shall
23make payments to the Department on or before the 7th, 15th,
2422nd and last day of the month during which such liability is
25incurred. On and after October 1, 2000, if the taxpayer's
26average monthly tax liability to the Department under this Act,

 

 

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1the Retailers' Occupation Tax Act, the Service Occupation Tax
2Act, and the Service Use Tax Act was $20,000 or more during the
3preceding 4 complete calendar quarters, he shall file a return
4with the Department each month by the 20th day of the month
5next following the month during which such tax liability is
6incurred and shall make payment to the Department on or before
7the 7th, 15th, 22nd and last day of the month during which such
8liability is incurred. If the month during which such tax
9liability is incurred began prior to January 1, 1985, each
10payment shall be in an amount equal to 1/4 of the taxpayer's
11actual liability for the month or an amount set by the
12Department not to exceed 1/4 of the average monthly liability
13of the taxpayer to the Department for the preceding 4 complete
14calendar quarters (excluding the month of highest liability and
15the month of lowest liability in such 4 quarter period). If the
16month during which such tax liability is incurred begins on or
17after January 1, 1985, and prior to January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 27.5% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1987, and prior to January 1, 1988, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year. If
26the month during which such tax liability is incurred begins on

 

 

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1or after January 1, 1988, and prior to January 1, 1989, or
2begins on or after January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during which
6such tax liability is incurred begins on or after January 1,
71989, and prior to January 1, 1996, each payment shall be in an
8amount equal to 22.5% of the taxpayer's actual liability for
9the month or 25% of the taxpayer's liability for the same
10calendar month of the preceding year or 100% of the taxpayer's
11actual liability for the quarter monthly reporting period. The
12amount of such quarter monthly payments shall be credited
13against the final tax liability of the taxpayer's return for
14that month. Before October 1, 2000, once applicable, the
15requirement of the making of quarter monthly payments to the
16Department shall continue until such taxpayer's average
17monthly liability to the Department during the preceding 4
18complete calendar quarters (excluding the month of highest
19liability and the month of lowest liability) is less than
20$9,000, or until such taxpayer's average monthly liability to
21the Department as computed for each calendar quarter of the 4
22preceding complete calendar quarter period is less than
23$10,000. However, if a taxpayer can show the Department that a
24substantial change in the taxpayer's business has occurred
25which causes the taxpayer to anticipate that his average
26monthly tax liability for the reasonably foreseeable future

 

 

HB1438 Enrolled- 434 -LRB101 04919 JRG 49928 b

1will fall below the $10,000 threshold stated above, then such
2taxpayer may petition the Department for change in such
3taxpayer's reporting status. On and after October 1, 2000, once
4applicable, the requirement of the making of quarter monthly
5payments to the Department shall continue until such taxpayer's
6average monthly liability to the Department during the
7preceding 4 complete calendar quarters (excluding the month of
8highest liability and the month of lowest liability) is less
9than $19,000 or until such taxpayer's average monthly liability
10to the Department as computed for each calendar quarter of the
114 preceding complete calendar quarter period is less than
12$20,000. However, if a taxpayer can show the Department that a
13substantial change in the taxpayer's business has occurred
14which causes the taxpayer to anticipate that his average
15monthly tax liability for the reasonably foreseeable future
16will fall below the $20,000 threshold stated above, then such
17taxpayer may petition the Department for a change in such
18taxpayer's reporting status. The Department shall change such
19taxpayer's reporting status unless it finds that such change is
20seasonal in nature and not likely to be long term. If any such
21quarter monthly payment is not paid at the time or in the
22amount required by this Section, then the taxpayer shall be
23liable for penalties and interest on the difference between the
24minimum amount due and the amount of such quarter monthly
25payment actually and timely paid, except insofar as the
26taxpayer has previously made payments for that month to the

 

 

HB1438 Enrolled- 435 -LRB101 04919 JRG 49928 b

1Department in excess of the minimum payments previously due as
2provided in this Section. The Department shall make reasonable
3rules and regulations to govern the quarter monthly payment
4amount and quarter monthly payment dates for taxpayers who file
5on other than a calendar monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

HB1438 Enrolled- 436 -LRB101 04919 JRG 49928 b

1the Department. If the Department subsequently determines that
2all or any part of the credit taken was not actually due to the
3taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
4be reduced by 2.1% or 1.75% of the difference between the
5credit taken and that actually due, and the taxpayer shall be
6liable for penalties and interest on such difference.
7    If the retailer is otherwise required to file a monthly
8return and if the retailer's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February, and March of a given
12year being due by April 20 of such year; with the return for
13April, May and June of a given year being due by July 20 of such
14year; with the return for July, August and September of a given
15year being due by October 20 of such year, and with the return
16for October, November and December of a given year being due by
17January 20 of the following year.
18    If the retailer is otherwise required to file a monthly or
19quarterly return and if the retailer's average monthly tax
20liability to the Department does not exceed $50, the Department
21may authorize his returns to be filed on an annual basis, with
22the return for a given year being due by January 20 of the
23following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as monthly
26returns.

 

 

HB1438 Enrolled- 437 -LRB101 04919 JRG 49928 b

1    Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, except as otherwise provided in this
11Section, every retailer selling this kind of tangible personal
12property shall file, with the Department, upon a form to be
13prescribed and supplied by the Department, a separate return
14for each such item of tangible personal property which the
15retailer sells, except that if, in the same transaction, (i) a
16retailer of aircraft, watercraft, motor vehicles or trailers
17transfers more than one aircraft, watercraft, motor vehicle or
18trailer to another aircraft, watercraft, motor vehicle or
19trailer retailer for the purpose of resale or (ii) a retailer
20of aircraft, watercraft, motor vehicles, or trailers transfers
21more than one aircraft, watercraft, motor vehicle, or trailer
22to a purchaser for use as a qualifying rolling stock as
23provided in Section 3-55 of this Act, then that seller may
24report the transfer of all the aircraft, watercraft, motor
25vehicles or trailers involved in that transaction to the
26Department on the same uniform invoice-transaction reporting

 

 

HB1438 Enrolled- 438 -LRB101 04919 JRG 49928 b

1return form. For purposes of this Section, "watercraft" means a
2Class 2, Class 3, or Class 4 watercraft as defined in Section
33-2 of the Boat Registration and Safety Act, a personal
4watercraft, or any boat equipped with an inboard motor.
5    In addition, with respect to motor vehicles, watercraft,
6aircraft, and trailers that are required to be registered with
7an agency of this State, every person who is engaged in the
8business of leasing or renting such items and who, in
9connection with such business, sells any such item to a
10retailer for the purpose of resale is, notwithstanding any
11other provision of this Section to the contrary, authorized to
12meet the return-filing requirement of this Act by reporting the
13transfer of all the aircraft, watercraft, motor vehicles, or
14trailers transferred for resale during a month to the
15Department on the same uniform invoice-transaction reporting
16return form on or before the 20th of the month following the
17month in which the transfer takes place. Notwithstanding any
18other provision of this Act to the contrary, all returns filed
19under this paragraph must be filed by electronic means in the
20manner and form as required by the Department.
21    The transaction reporting return in the case of motor
22vehicles or trailers that are required to be registered with an
23agency of this State, shall be the same document as the Uniform
24Invoice referred to in Section 5-402 of the Illinois Vehicle
25Code and must show the name and address of the seller; the name
26and address of the purchaser; the amount of the selling price

 

 

HB1438 Enrolled- 439 -LRB101 04919 JRG 49928 b

1including the amount allowed by the retailer for traded-in
2property, if any; the amount allowed by the retailer for the
3traded-in tangible personal property, if any, to the extent to
4which Section 2 of this Act allows an exemption for the value
5of traded-in property; the balance payable after deducting such
6trade-in allowance from the total selling price; the amount of
7tax due from the retailer with respect to such transaction; the
8amount of tax collected from the purchaser by the retailer on
9such transaction (or satisfactory evidence that such tax is not
10due in that particular instance, if that is claimed to be the
11fact); the place and date of the sale; a sufficient
12identification of the property sold; such other information as
13is required in Section 5-402 of the Illinois Vehicle Code, and
14such other information as the Department may reasonably
15require.
16    The transaction reporting return in the case of watercraft
17and aircraft must show the name and address of the seller; the
18name and address of the purchaser; the amount of the selling
19price including the amount allowed by the retailer for
20traded-in property, if any; the amount allowed by the retailer
21for the traded-in tangible personal property, if any, to the
22extent to which Section 2 of this Act allows an exemption for
23the value of traded-in property; the balance payable after
24deducting such trade-in allowance from the total selling price;
25the amount of tax due from the retailer with respect to such
26transaction; the amount of tax collected from the purchaser by

 

 

HB1438 Enrolled- 440 -LRB101 04919 JRG 49928 b

1the retailer on such transaction (or satisfactory evidence that
2such tax is not due in that particular instance, if that is
3claimed to be the fact); the place and date of the sale, a
4sufficient identification of the property sold, and such other
5information as the Department may reasonably require.
6    Such transaction reporting return shall be filed not later
7than 20 days after the date of delivery of the item that is
8being sold, but may be filed by the retailer at any time sooner
9than that if he chooses to do so. The transaction reporting
10return and tax remittance or proof of exemption from the tax
11that is imposed by this Act may be transmitted to the
12Department by way of the State agency with which, or State
13officer with whom, the tangible personal property must be
14titled or registered (if titling or registration is required)
15if the Department and such agency or State officer determine
16that this procedure will expedite the processing of
17applications for title or registration.
18    With each such transaction reporting return, the retailer
19shall remit the proper amount of tax due (or shall submit
20satisfactory evidence that the sale is not taxable if that is
21the case), to the Department or its agents, whereupon the
22Department shall issue, in the purchaser's name, a tax receipt
23(or a certificate of exemption if the Department is satisfied
24that the particular sale is tax exempt) which such purchaser
25may submit to the agency with which, or State officer with
26whom, he must title or register the tangible personal property

 

 

HB1438 Enrolled- 441 -LRB101 04919 JRG 49928 b

1that is involved (if titling or registration is required) in
2support of such purchaser's application for an Illinois
3certificate or other evidence of title or registration to such
4tangible personal property.
5    No retailer's failure or refusal to remit tax under this
6Act precludes a user, who has paid the proper tax to the
7retailer, from obtaining his certificate of title or other
8evidence of title or registration (if titling or registration
9is required) upon satisfying the Department that such user has
10paid the proper tax (if tax is due) to the retailer. The
11Department shall adopt appropriate rules to carry out the
12mandate of this paragraph.
13    If the user who would otherwise pay tax to the retailer
14wants the transaction reporting return filed and the payment of
15tax or proof of exemption made to the Department before the
16retailer is willing to take these actions and such user has not
17paid the tax to the retailer, such user may certify to the fact
18of such delay by the retailer, and may (upon the Department
19being satisfied of the truth of such certification) transmit
20the information required by the transaction reporting return
21and the remittance for tax or proof of exemption directly to
22the Department and obtain his tax receipt or exemption
23determination, in which event the transaction reporting return
24and tax remittance (if a tax payment was required) shall be
25credited by the Department to the proper retailer's account
26with the Department, but without the 2.1% or 1.75% discount

 

 

HB1438 Enrolled- 442 -LRB101 04919 JRG 49928 b

1provided for in this Section being allowed. When the user pays
2the tax directly to the Department, he shall pay the tax in the
3same amount and in the same form in which it would be remitted
4if the tax had been remitted to the Department by the retailer.
5    Where a retailer collects the tax with respect to the
6selling price of tangible personal property which he sells and
7the purchaser thereafter returns such tangible personal
8property and the retailer refunds the selling price thereof to
9the purchaser, such retailer shall also refund, to the
10purchaser, the tax so collected from the purchaser. When filing
11his return for the period in which he refunds such tax to the
12purchaser, the retailer may deduct the amount of the tax so
13refunded by him to the purchaser from any other use tax which
14such retailer may be required to pay or remit to the
15Department, as shown by such return, if the amount of the tax
16to be deducted was previously remitted to the Department by
17such retailer. If the retailer has not previously remitted the
18amount of such tax to the Department, he is entitled to no
19deduction under this Act upon refunding such tax to the
20purchaser.
21    Any retailer filing a return under this Section shall also
22include (for the purpose of paying tax thereon) the total tax
23covered by such return upon the selling price of tangible
24personal property purchased by him at retail from a retailer,
25but as to which the tax imposed by this Act was not collected
26from the retailer filing such return, and such retailer shall

 

 

HB1438 Enrolled- 443 -LRB101 04919 JRG 49928 b

1remit the amount of such tax to the Department when filing such
2return.
3    If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable retailers, who are required to file
6returns hereunder and also under the Retailers' Occupation Tax
7Act, to furnish all the return information required by both
8Acts on the one form.
9    Where the retailer has more than one business registered
10with the Department under separate registration under this Act,
11such retailer may not file each return that is due as a single
12return covering all such registered businesses, but shall file
13separate returns for each such registered business.
14    Beginning January 1, 1990, each month the Department shall
15pay into the State and Local Sales Tax Reform Fund, a special
16fund in the State Treasury which is hereby created, the net
17revenue realized for the preceding month from the 1% tax
18imposed under this Act.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund 4% of the
21net revenue realized for the preceding month from the 6.25%
22general rate on the selling price of tangible personal property
23which is purchased outside Illinois at retail from a retailer
24and which is titled or registered by an agency of this State's
25government.
26    Beginning January 1, 1990, each month the Department shall

 

 

HB1438 Enrolled- 444 -LRB101 04919 JRG 49928 b

1pay into the State and Local Sales Tax Reform Fund, a special
2fund in the State Treasury, 20% of the net revenue realized for
3the preceding month from the 6.25% general rate on the selling
4price of tangible personal property, other than tangible
5personal property which is purchased outside Illinois at retail
6from a retailer and which is titled or registered by an agency
7of this State's government.
8    Beginning August 1, 2000, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 100% of the
10net revenue realized for the preceding month from the 1.25%
11rate on the selling price of motor fuel and gasohol. Beginning
12September 1, 2010, each month the Department shall pay into the
13State and Local Sales Tax Reform Fund 100% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of sales tax holiday items.
16    Beginning January 1, 1990, each month the Department shall
17pay into the Local Government Tax Fund 16% of the net revenue
18realized for the preceding month from the 6.25% general rate on
19the selling price of tangible personal property which is
20purchased outside Illinois at retail from a retailer and which
21is titled or registered by an agency of this State's
22government.
23    Beginning October 1, 2009, each month the Department shall
24pay into the Capital Projects Fund an amount that is equal to
25an amount estimated by the Department to represent 80% of the
26net revenue realized for the preceding month from the sale of

 

 

HB1438 Enrolled- 445 -LRB101 04919 JRG 49928 b

1candy, grooming and hygiene products, and soft drinks that had
2been taxed at a rate of 1% prior to September 1, 2009 but that
3are now taxed at 6.25%.
4    Beginning July 1, 2011, each month the Department shall pay
5into the Clean Air Act Permit Fund 80% of the net revenue
6realized for the preceding month from the 6.25% general rate on
7the selling price of sorbents used in Illinois in the process
8of sorbent injection as used to comply with the Environmental
9Protection Act or the federal Clean Air Act, but the total
10payment into the Clean Air Act Permit Fund under this Act and
11the Retailers' Occupation Tax Act shall not exceed $2,000,000
12in any fiscal year.
13    Beginning July 1, 2013, each month the Department shall pay
14into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Service Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Service Use Tax Act, the Service Occupation Tax Act, and
22the Retailers' Occupation Tax Act shall not exceed $18,000,000
23in any State fiscal year. As used in this paragraph, the
24"average monthly deficit" shall be equal to the difference
25between the average monthly claims for payment by the fund and
26the average monthly revenues deposited into the fund, excluding

 

 

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1payments made pursuant to this paragraph.
2    Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under this Act, the Service Use Tax
4Act, the Service Occupation Tax Act, and the Retailers'
5Occupation Tax Act, each month the Department shall deposit
6$500,000 into the State Crime Laboratory Fund.
7    Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

 

 

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1business day of any month the sum of (1) the Tax Act Amount
2required to be deposited into the Build Illinois Bond Account
3in the Build Illinois Fund during such month and (2) the amount
4transferred during such month to the Build Illinois Fund from
5the State and Local Sales Tax Reform Fund shall have been less
6than 1/12 of the Annual Specified Amount, an amount equal to
7the difference shall be immediately paid into the Build
8Illinois Fund from other moneys received by the Department
9pursuant to the Tax Acts; and, further provided, that in no
10event shall the payments required under the preceding proviso
11result in aggregate payments into the Build Illinois Fund
12pursuant to this clause (b) for any fiscal year in excess of
13the greater of (i) the Tax Act Amount or (ii) the Annual
14Specified Amount for such fiscal year; and, further provided,
15that the amounts payable into the Build Illinois Fund under
16this clause (b) shall be payable only until such time as the
17aggregate amount on deposit under each trust indenture securing
18Bonds issued and outstanding pursuant to the Build Illinois
19Bond Act is sufficient, taking into account any future
20investment income, to fully provide, in accordance with such
21indenture, for the defeasance of or the payment of the
22principal of, premium, if any, and interest on the Bonds
23secured by such indenture and on any Bonds expected to be
24issued thereafter and all fees and costs payable with respect
25thereto, all as certified by the Director of the Bureau of the
26Budget (now Governor's Office of Management and Budget). If on

 

 

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1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois Fund;
11provided, however, that any amounts paid to the Build Illinois
12Fund in any fiscal year pursuant to this sentence shall be
13deemed to constitute payments pursuant to clause (b) of the
14preceding sentence and shall reduce the amount otherwise
15payable for such fiscal year pursuant to clause (b) of the
16preceding sentence. The moneys received by the Department
17pursuant to this Act and required to be deposited into the
18Build Illinois Fund are subject to the pledge, claim and charge
19set forth in Section 12 of the Build Illinois Bond Act.
20    Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

 

 

HB1438 Enrolled- 449 -LRB101 04919 JRG 49928 b

1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993         $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

 

 

HB1438 Enrolled- 450 -LRB101 04919 JRG 49928 b

12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021246,000,000
102022260,000,000
112023275,000,000
122024 275,000,000
132025 275,000,000
142026 279,000,000
152027 292,000,000
162028 307,000,000
172029 322,000,000
182030 338,000,000
192031 350,000,000
202032 350,000,000
21and
22each fiscal year
23thereafter that bonds
24are outstanding under
25Section 13.2 of the
26Metropolitan Pier and

 

 

HB1438 Enrolled- 451 -LRB101 04919 JRG 49928 b

1Exposition Authority Act,
2but not after fiscal year 2060.
3    Beginning July 20, 1993 and in each month of each fiscal
4year thereafter, one-eighth of the amount requested in the
5certificate of the Chairman of the Metropolitan Pier and
6Exposition Authority for that fiscal year, less the amount
7deposited into the McCormick Place Expansion Project Fund by
8the State Treasurer in the respective month under subsection
9(g) of Section 13 of the Metropolitan Pier and Exposition
10Authority Act, plus cumulative deficiencies in the deposits
11required under this Section for previous months and years,
12shall be deposited into the McCormick Place Expansion Project
13Fund, until the full amount requested for the fiscal year, but
14not in excess of the amount specified above as "Total Deposit",
15has been deposited.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning July 1, 1993 and ending on September 30,
202013, the Department shall each month pay into the Illinois Tax
21Increment Fund 0.27% of 80% of the net revenue realized for the
22preceding month from the 6.25% general rate on the selling
23price of tangible personal property.
24    Subject to payment of amounts into the Build Illinois Fund
25and the McCormick Place Expansion Project Fund pursuant to the
26preceding paragraphs or in any amendments thereto hereafter

 

 

HB1438 Enrolled- 452 -LRB101 04919 JRG 49928 b

1enacted, beginning with the receipt of the first report of
2taxes paid by an eligible business and continuing for a 25-year
3period, the Department shall each month pay into the Energy
4Infrastructure Fund 80% of the net revenue realized from the
56.25% general rate on the selling price of Illinois-mined coal
6that was sold to an eligible business. For purposes of this
7paragraph, the term "eligible business" means a new electric
8generating facility certified pursuant to Section 605-332 of
9the Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11    Subject to payment of amounts into the Build Illinois Fund,
12the McCormick Place Expansion Project Fund, the Illinois Tax
13Increment Fund, and the Energy Infrastructure Fund pursuant to
14the preceding paragraphs or in any amendments to this Section
15hereafter enacted, beginning on the first day of the first
16calendar month to occur on or after August 26, 2014 (the
17effective date of Public Act 98-1098), each month, from the
18collections made under Section 9 of the Use Tax Act, Section 9
19of the Service Use Tax Act, Section 9 of the Service Occupation
20Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
21the Department shall pay into the Tax Compliance and
22Administration Fund, to be used, subject to appropriation, to
23fund additional auditors and compliance personnel at the
24Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25the cash receipts collected during the preceding fiscal year by
26the Audit Bureau of the Department under the Use Tax Act, the

 

 

HB1438 Enrolled- 453 -LRB101 04919 JRG 49928 b

1Service Use Tax Act, the Service Occupation Tax Act, the
2Retailers' Occupation Tax Act, and associated local occupation
3and use taxes administered by the Department.
4    Subject to payments of amounts into the Build Illinois
5Fund, the McCormick Place Expansion Project Fund, the Illinois
6Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
7Compliance and Administration Fund as provided in this Section,
8beginning on July 1, 2018 the Department shall pay each month
9into the Downstate Public Transportation Fund the moneys
10required to be so paid under Section 2-3 of the Downstate
11Public Transportation Act.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, 75% thereof shall be paid into the State
14Treasury and 25% shall be reserved in a special account and
15used only for the transfer to the Common School Fund as part of
16the monthly transfer from the General Revenue Fund in
17accordance with Section 8a of the State Finance Act.
18    As soon as possible after the first day of each month, upon
19certification of the Department of Revenue, the Comptroller
20shall order transferred and the Treasurer shall transfer from
21the General Revenue Fund to the Motor Fuel Tax Fund an amount
22equal to 1.7% of 80% of the net revenue realized under this Act
23for the second preceding month. Beginning April 1, 2000, this
24transfer is no longer required and shall not be made.
25    Net revenue realized for a month shall be the revenue
26collected by the State pursuant to this Act, less the amount

 

 

HB1438 Enrolled- 454 -LRB101 04919 JRG 49928 b

1paid out during that month as refunds to taxpayers for
2overpayment of liability.
3    For greater simplicity of administration, manufacturers,
4importers and wholesalers whose products are sold at retail in
5Illinois by numerous retailers, and who wish to do so, may
6assume the responsibility for accounting and paying to the
7Department all tax accruing under this Act with respect to such
8sales, if the retailers who are affected do not make written
9objection to the Department to this arrangement.
10(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1199-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
127-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
13    Section 900-17. The Service Use Tax Act is amended by
14changing Section 9 as follows:
 
15    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
16    Sec. 9. Each serviceman required or authorized to collect
17the tax herein imposed shall pay to the Department the amount
18of such tax (except as otherwise provided) at the time when he
19is required to file his return for the period during which such
20tax was collected, less a discount of 2.1% prior to January 1,
211990 and 1.75% on and after January 1, 1990, or $5 per calendar
22year, whichever is greater, which is allowed to reimburse the
23serviceman for expenses incurred in collecting the tax, keeping
24records, preparing and filing returns, remitting the tax and

 

 

HB1438 Enrolled- 455 -LRB101 04919 JRG 49928 b

1supplying data to the Department on request. The discount
2allowed under this Section is allowed only for returns that are
3filed in the manner required by this Act. The Department may
4disallow the discount for servicemen whose certificate of
5registration is revoked at the time the return is filed, but
6only if the Department's decision to revoke the certificate of
7registration has become final. A serviceman need not remit that
8part of any tax collected by him to the extent that he is
9required to pay and does pay the tax imposed by the Service
10Occupation Tax Act with respect to his sale of service
11involving the incidental transfer by him of the same property.
12    Except as provided hereinafter in this Section, on or
13before the twentieth day of each calendar month, such
14serviceman shall file a return for the preceding calendar month
15in accordance with reasonable Rules and Regulations to be
16promulgated by the Department. Such return shall be filed on a
17form prescribed by the Department and shall contain such
18information as the Department may reasonably require. On and
19after January 1, 2018, with respect to servicemen whose annual
20gross receipts average $20,000 or more, all returns required to
21be filed pursuant to this Act shall be filed electronically.
22Servicemen who demonstrate that they do not have access to the
23Internet or demonstrate hardship in filing electronically may
24petition the Department to waive the electronic filing
25requirement.
26    The Department may require returns to be filed on a

 

 

HB1438 Enrolled- 456 -LRB101 04919 JRG 49928 b

1quarterly basis. If so required, a return for each calendar
2quarter shall be filed on or before the twentieth day of the
3calendar month following the end of such calendar quarter. The
4taxpayer shall also file a return with the Department for each
5of the first two months of each calendar quarter, on or before
6the twentieth day of the following calendar month, stating:
7        1. The name of the seller;
8        2. The address of the principal place of business from
9    which he engages in business as a serviceman in this State;
10        3. The total amount of taxable receipts received by him
11    during the preceding calendar month, including receipts
12    from charge and time sales, but less all deductions allowed
13    by law;
14        4. The amount of credit provided in Section 2d of this
15    Act;
16        5. The amount of tax due;
17        5-5. The signature of the taxpayer; and
18        6. Such other reasonable information as the Department
19    may require.
20    If a taxpayer fails to sign a return within 30 days after
21the proper notice and demand for signature by the Department,
22the return shall be considered valid and any amount shown to be
23due on the return shall be deemed assessed.
24    Notwithstanding any other provision of this Act to the
25contrary, servicemen subject to tax on cannabis shall file all
26cannabis tax returns and shall make all cannabis tax payments

 

 

HB1438 Enrolled- 457 -LRB101 04919 JRG 49928 b

1by electronic means in the manner and form required by the
2Department.
3    Beginning October 1, 1993, a taxpayer who has an average
4monthly tax liability of $150,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1994, a taxpayer who has
7an average monthly tax liability of $100,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1995, a taxpayer who has
10an average monthly tax liability of $50,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 2000, a taxpayer who has
13an annual tax liability of $200,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. The term "annual tax liability" shall be the
16sum of the taxpayer's liabilities under this Act, and under all
17other State and local occupation and use tax laws administered
18by the Department, for the immediately preceding calendar year.
19The term "average monthly tax liability" means the sum of the
20taxpayer's liabilities under this Act, and under all other
21State and local occupation and use tax laws administered by the
22Department, for the immediately preceding calendar year
23divided by 12. Beginning on October 1, 2002, a taxpayer who has
24a tax liability in the amount set forth in subsection (b) of
25Section 2505-210 of the Department of Revenue Law shall make
26all payments required by rules of the Department by electronic

 

 

HB1438 Enrolled- 458 -LRB101 04919 JRG 49928 b

1funds transfer.
2    Before August 1 of each year beginning in 1993, the
3Department shall notify all taxpayers required to make payments
4by electronic funds transfer. All taxpayers required to make
5payments by electronic funds transfer shall make those payments
6for a minimum of one year beginning on October 1.
7    Any taxpayer not required to make payments by electronic
8funds transfer may make payments by electronic funds transfer
9with the permission of the Department.
10    All taxpayers required to make payment by electronic funds
11transfer and any taxpayers authorized to voluntarily make
12payments by electronic funds transfer shall make those payments
13in the manner authorized by the Department.
14    The Department shall adopt such rules as are necessary to
15effectuate a program of electronic funds transfer and the
16requirements of this Section.
17    If the serviceman is otherwise required to file a monthly
18return and if the serviceman's average monthly tax liability to
19the Department does not exceed $200, the Department may
20authorize his returns to be filed on a quarter annual basis,
21with the return for January, February and March of a given year
22being due by April 20 of such year; with the return for April,
23May and June of a given year being due by July 20 of such year;
24with the return for July, August and September of a given year
25being due by October 20 of such year, and with the return for
26October, November and December of a given year being due by

 

 

HB1438 Enrolled- 459 -LRB101 04919 JRG 49928 b

1January 20 of the following year.
2    If the serviceman is otherwise required to file a monthly
3or quarterly return and if the serviceman's average monthly tax
4liability to the Department does not exceed $50, the Department
5may authorize his returns to be filed on an annual basis, with
6the return for a given year being due by January 20 of the
7following year.
8    Such quarter annual and annual returns, as to form and
9substance, shall be subject to the same requirements as monthly
10returns.
11    Notwithstanding any other provision in this Act concerning
12the time within which a serviceman may file his return, in the
13case of any serviceman who ceases to engage in a kind of
14business which makes him responsible for filing returns under
15this Act, such serviceman shall file a final return under this
16Act with the Department not more than 1 month after
17discontinuing such business.
18    Where a serviceman collects the tax with respect to the
19selling price of property which he sells and the purchaser
20thereafter returns such property and the serviceman refunds the
21selling price thereof to the purchaser, such serviceman shall
22also refund, to the purchaser, the tax so collected from the
23purchaser. When filing his return for the period in which he
24refunds such tax to the purchaser, the serviceman may deduct
25the amount of the tax so refunded by him to the purchaser from
26any other Service Use Tax, Service Occupation Tax, retailers'

 

 

HB1438 Enrolled- 460 -LRB101 04919 JRG 49928 b

1occupation tax or use tax which such serviceman may be required
2to pay or remit to the Department, as shown by such return,
3provided that the amount of the tax to be deducted shall
4previously have been remitted to the Department by such
5serviceman. If the serviceman shall not previously have
6remitted the amount of such tax to the Department, he shall be
7entitled to no deduction hereunder upon refunding such tax to
8the purchaser.
9    Any serviceman filing a return hereunder shall also include
10the total tax upon the selling price of tangible personal
11property purchased for use by him as an incident to a sale of
12service, and such serviceman shall remit the amount of such tax
13to the Department when filing such return.
14    If experience indicates such action to be practicable, the
15Department may prescribe and furnish a combination or joint
16return which will enable servicemen, who are required to file
17returns hereunder and also under the Service Occupation Tax
18Act, to furnish all the return information required by both
19Acts on the one form.
20    Where the serviceman has more than one business registered
21with the Department under separate registration hereunder,
22such serviceman shall not file each return that is due as a
23single return covering all such registered businesses, but
24shall file separate returns for each such registered business.
25    Beginning January 1, 1990, each month the Department shall
26pay into the State and Local Tax Reform Fund, a special fund in

 

 

HB1438 Enrolled- 461 -LRB101 04919 JRG 49928 b

1the State Treasury, the net revenue realized for the preceding
2month from the 1% tax imposed under this Act.
3    Beginning January 1, 1990, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund 20% of the
5net revenue realized for the preceding month from the 6.25%
6general rate on transfers of tangible personal property, other
7than tangible personal property which is purchased outside
8Illinois at retail from a retailer and which is titled or
9registered by an agency of this State's government.
10    Beginning August 1, 2000, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 100% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21    Beginning July 1, 2013, each month the Department shall pay
22into the Underground Storage Tank Fund from the proceeds
23collected under this Act, the Use Tax Act, the Service
24Occupation Tax Act, and the Retailers' Occupation Tax Act an
25amount equal to the average monthly deficit in the Underground
26Storage Tank Fund during the prior year, as certified annually

 

 

HB1438 Enrolled- 462 -LRB101 04919 JRG 49928 b

1by the Illinois Environmental Protection Agency, but the total
2payment into the Underground Storage Tank Fund under this Act,
3the Use Tax Act, the Service Occupation Tax Act, and the
4Retailers' Occupation Tax Act shall not exceed $18,000,000 in
5any State fiscal year. As used in this paragraph, the "average
6monthly deficit" shall be equal to the difference between the
7average monthly claims for payment by the fund and the average
8monthly revenues deposited into the fund, excluding payments
9made pursuant to this paragraph.
10    Beginning July 1, 2015, of the remainder of the moneys
11received by the Department under the Use Tax Act, this Act, the
12Service Occupation Tax Act, and the Retailers' Occupation Tax
13Act, each month the Department shall deposit $500,000 into the
14State Crime Laboratory Fund.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, (a) 1.75% thereof shall be paid into the
17Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18and after July 1, 1989, 3.8% thereof shall be paid into the
19Build Illinois Fund; provided, however, that if in any fiscal
20year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21may be, of the moneys received by the Department and required
22to be paid into the Build Illinois Fund pursuant to Section 3
23of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25Service Occupation Tax Act, such Acts being hereinafter called
26the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

 

 

HB1438 Enrolled- 463 -LRB101 04919 JRG 49928 b

1may be, of moneys being hereinafter called the "Tax Act
2Amount", and (2) the amount transferred to the Build Illinois
3Fund from the State and Local Sales Tax Reform Fund shall be
4less than the Annual Specified Amount (as defined in Section 3
5of the Retailers' Occupation Tax Act), an amount equal to the
6difference shall be immediately paid into the Build Illinois
7Fund from other moneys received by the Department pursuant to
8the Tax Acts; and further provided, that if on the last
9business day of any month the sum of (1) the Tax Act Amount
10required to be deposited into the Build Illinois Bond Account
11in the Build Illinois Fund during such month and (2) the amount
12transferred during such month to the Build Illinois Fund from
13the State and Local Sales Tax Reform Fund shall have been less
14than 1/12 of the Annual Specified Amount, an amount equal to
15the difference shall be immediately paid into the Build
16Illinois Fund from other moneys received by the Department
17pursuant to the Tax Acts; and, further provided, that in no
18event shall the payments required under the preceding proviso
19result in aggregate payments into the Build Illinois Fund
20pursuant to this clause (b) for any fiscal year in excess of
21the greater of (i) the Tax Act Amount or (ii) the Annual
22Specified Amount for such fiscal year; and, further provided,
23that the amounts payable into the Build Illinois Fund under
24this clause (b) shall be payable only until such time as the
25aggregate amount on deposit under each trust indenture securing
26Bonds issued and outstanding pursuant to the Build Illinois

 

 

HB1438 Enrolled- 464 -LRB101 04919 JRG 49928 b

1Bond Act is sufficient, taking into account any future
2investment income, to fully provide, in accordance with such
3indenture, for the defeasance of or the payment of the
4principal of, premium, if any, and interest on the Bonds
5secured by such indenture and on any Bonds expected to be
6issued thereafter and all fees and costs payable with respect
7thereto, all as certified by the Director of the Bureau of the
8Budget (now Governor's Office of Management and Budget). If on
9the last business day of any month in which Bonds are
10outstanding pursuant to the Build Illinois Bond Act, the
11aggregate of the moneys deposited in the Build Illinois Bond
12Account in the Build Illinois Fund in such month shall be less
13than the amount required to be transferred in such month from
14the Build Illinois Bond Account to the Build Illinois Bond
15Retirement and Interest Fund pursuant to Section 13 of the
16Build Illinois Bond Act, an amount equal to such deficiency
17shall be immediately paid from other moneys received by the
18Department pursuant to the Tax Acts to the Build Illinois Fund;
19provided, however, that any amounts paid to the Build Illinois
20Fund in any fiscal year pursuant to this sentence shall be
21deemed to constitute payments pursuant to clause (b) of the
22preceding sentence and shall reduce the amount otherwise
23payable for such fiscal year pursuant to clause (b) of the
24preceding sentence. The moneys received by the Department
25pursuant to this Act and required to be deposited into the
26Build Illinois Fund are subject to the pledge, claim and charge

 

 

HB1438 Enrolled- 465 -LRB101 04919 JRG 49928 b

1set forth in Section 12 of the Build Illinois Bond Act.
2    Subject to payment of amounts into the Build Illinois Fund
3as provided in the preceding paragraph or in any amendment
4thereto hereafter enacted, the following specified monthly
5installment of the amount requested in the certificate of the
6Chairman of the Metropolitan Pier and Exposition Authority
7provided under Section 8.25f of the State Finance Act, but not
8in excess of the sums designated as "Total Deposit", shall be
9deposited in the aggregate from collections under Section 9 of
10the Use Tax Act, Section 9 of the Service Use Tax Act, Section
119 of the Service Occupation Tax Act, and Section 3 of the
12Retailers' Occupation Tax Act into the McCormick Place
13Expansion Project Fund in the specified fiscal years.
14Fiscal YearTotal Deposit
151993         $0
161994 53,000,000
171995 58,000,000
181996 61,000,000
191997 64,000,000
201998 68,000,000
211999 71,000,000
222000 75,000,000
232001 80,000,000
242002 93,000,000
252003 99,000,000

 

 

HB1438 Enrolled- 466 -LRB101 04919 JRG 49928 b

12004103,000,000
22005108,000,000
32006113,000,000
42007119,000,000
52008126,000,000
62009132,000,000
72010139,000,000
82011146,000,000
92012153,000,000
102013161,000,000
112014170,000,000
122015179,000,000
132016189,000,000
142017199,000,000
152018210,000,000
162019221,000,000
172020233,000,000
182021246,000,000
192022260,000,000
202023275,000,000
212024 275,000,000
222025 275,000,000
232026 279,000,000
242027 292,000,000
252028 307,000,000
262029 322,000,000

 

 

HB1438 Enrolled- 467 -LRB101 04919 JRG 49928 b

12030 338,000,000
22031 350,000,000
32032 350,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12    Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total Deposit",
24has been deposited.
25    Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

 

 

HB1438 Enrolled- 468 -LRB101 04919 JRG 49928 b

1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning July 1, 1993 and ending on September 30,
32013, the Department shall each month pay into the Illinois Tax
4Increment Fund 0.27% of 80% of the net revenue realized for the
5preceding month from the 6.25% general rate on the selling
6price of tangible personal property.
7    Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning with the receipt of the first report of
11taxes paid by an eligible business and continuing for a 25-year
12period, the Department shall each month pay into the Energy
13Infrastructure Fund 80% of the net revenue realized from the
146.25% general rate on the selling price of Illinois-mined coal
15that was sold to an eligible business. For purposes of this
16paragraph, the term "eligible business" means a new electric
17generating facility certified pursuant to Section 605-332 of
18the Department of Commerce and Economic Opportunity Law of the
19Civil Administrative Code of Illinois.
20    Subject to payment of amounts into the Build Illinois Fund,
21the McCormick Place Expansion Project Fund, the Illinois Tax
22Increment Fund, and the Energy Infrastructure Fund pursuant to
23the preceding paragraphs or in any amendments to this Section
24hereafter enacted, beginning on the first day of the first
25calendar month to occur on or after August 26, 2014 (the
26effective date of Public Act 98-1098), each month, from the

 

 

HB1438 Enrolled- 469 -LRB101 04919 JRG 49928 b

1collections made under Section 9 of the Use Tax Act, Section 9
2of the Service Use Tax Act, Section 9 of the Service Occupation
3Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
4the Department shall pay into the Tax Compliance and
5Administration Fund, to be used, subject to appropriation, to
6fund additional auditors and compliance personnel at the
7Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8the cash receipts collected during the preceding fiscal year by
9the Audit Bureau of the Department under the Use Tax Act, the
10Service Use Tax Act, the Service Occupation Tax Act, the
11Retailers' Occupation Tax Act, and associated local occupation
12and use taxes administered by the Department.
13    Subject to payments of amounts into the Build Illinois
14Fund, the McCormick Place Expansion Project Fund, the Illinois
15Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
16Compliance and Administration Fund as provided in this Section,
17beginning on July 1, 2018 the Department shall pay each month
18into the Downstate Public Transportation Fund the moneys
19required to be so paid under Section 2-3 of the Downstate
20Public Transportation Act.
21    Of the remainder of the moneys received by the Department
22pursuant to this Act, 75% thereof shall be paid into the
23General Revenue Fund of the State Treasury and 25% shall be
24reserved in a special account and used only for the transfer to
25the Common School Fund as part of the monthly transfer from the
26General Revenue Fund in accordance with Section 8a of the State

 

 

HB1438 Enrolled- 470 -LRB101 04919 JRG 49928 b

1Finance Act.
2    As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9    Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
14100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
158-14-18; 100-1171, eff. 1-4-19.)
 
16    Section 900-18. The Service Occupation Tax Act is amended
17by changing Section 9 as follows:
 
18    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
19    Sec. 9. Each serviceman required or authorized to collect
20the tax herein imposed shall pay to the Department the amount
21of such tax at the time when he is required to file his return
22for the period during which such tax was collectible, less a
23discount of 2.1% prior to January 1, 1990, and 1.75% on and
24after January 1, 1990, or $5 per calendar year, whichever is

 

 

HB1438 Enrolled- 471 -LRB101 04919 JRG 49928 b

1greater, which is allowed to reimburse the serviceman for
2expenses incurred in collecting the tax, keeping records,
3preparing and filing returns, remitting the tax and supplying
4data to the Department on request. The discount allowed under
5this Section is allowed only for returns that are filed in the
6manner required by this Act. The Department may disallow the
7discount for servicemen whose certificate of registration is
8revoked at the time the return is filed, but only if the
9Department's decision to revoke the certificate of
10registration has become final.
11    Where such tangible personal property is sold under a
12conditional sales contract, or under any other form of sale
13wherein the payment of the principal sum, or a part thereof, is
14extended beyond the close of the period for which the return is
15filed, the serviceman, in collecting the tax may collect, for
16each tax return period, only the tax applicable to the part of
17the selling price actually received during such tax return
18period.
19    Except as provided hereinafter in this Section, on or
20before the twentieth day of each calendar month, such
21serviceman shall file a return for the preceding calendar month
22in accordance with reasonable rules and regulations to be
23promulgated by the Department of Revenue. Such return shall be
24filed on a form prescribed by the Department and shall contain
25such information as the Department may reasonably require. On
26and after January 1, 2018, with respect to servicemen whose

 

 

HB1438 Enrolled- 472 -LRB101 04919 JRG 49928 b

1annual gross receipts average $20,000 or more, all returns
2required to be filed pursuant to this Act shall be filed
3electronically. Servicemen who demonstrate that they do not
4have access to the Internet or demonstrate hardship in filing
5electronically may petition the Department to waive the
6electronic filing requirement.
7    The Department may require returns to be filed on a
8quarterly basis. If so required, a return for each calendar
9quarter shall be filed on or before the twentieth day of the
10calendar month following the end of such calendar quarter. The
11taxpayer shall also file a return with the Department for each
12of the first two months of each calendar quarter, on or before
13the twentieth day of the following calendar month, stating:
14        1. The name of the seller;
15        2. The address of the principal place of business from
16    which he engages in business as a serviceman in this State;
17        3. The total amount of taxable receipts received by him
18    during the preceding calendar month, including receipts
19    from charge and time sales, but less all deductions allowed
20    by law;
21        4. The amount of credit provided in Section 2d of this
22    Act;
23        5. The amount of tax due;
24        5-5. The signature of the taxpayer; and
25        6. Such other reasonable information as the Department
26    may require.

 

 

HB1438 Enrolled- 473 -LRB101 04919 JRG 49928 b

1    If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department,
3the return shall be considered valid and any amount shown to be
4due on the return shall be deemed assessed.
5    Notwithstanding any other provision of this Act to the
6contrary, servicemen subject to tax on cannabis shall file all
7cannabis tax returns and shall make all cannabis tax payments
8by electronic means in the manner and form required by the
9Department.
10    Prior to October 1, 2003, and on and after September 1,
112004 a serviceman may accept a Manufacturer's Purchase Credit
12certification from a purchaser in satisfaction of Service Use
13Tax as provided in Section 3-70 of the Service Use Tax Act if
14the purchaser provides the appropriate documentation as
15required by Section 3-70 of the Service Use Tax Act. A
16Manufacturer's Purchase Credit certification, accepted prior
17to October 1, 2003 or on or after September 1, 2004 by a
18serviceman as provided in Section 3-70 of the Service Use Tax
19Act, may be used by that serviceman to satisfy Service
20Occupation Tax liability in the amount claimed in the
21certification, not to exceed 6.25% of the receipts subject to
22tax from a qualifying purchase. A Manufacturer's Purchase
23Credit reported on any original or amended return filed under
24this Act after October 20, 2003 for reporting periods prior to
25September 1, 2004 shall be disallowed. Manufacturer's Purchase
26Credit reported on annual returns due on or after January 1,

 

 

HB1438 Enrolled- 474 -LRB101 04919 JRG 49928 b

12005 will be disallowed for periods prior to September 1, 2004.
2No Manufacturer's Purchase Credit may be used after September
330, 2003 through August 31, 2004 to satisfy any tax liability
4imposed under this Act, including any audit liability.
5    If the serviceman's average monthly tax liability to the
6Department does not exceed $200, the Department may authorize
7his returns to be filed on a quarter annual basis, with the
8return for January, February and March of a given year being
9due by April 20 of such year; with the return for April, May
10and June of a given year being due by July 20 of such year; with
11the return for July, August and September of a given year being
12due by October 20 of such year, and with the return for
13October, November and December of a given year being due by
14January 20 of the following year.
15    If the serviceman's average monthly tax liability to the
16Department does not exceed $50, the Department may authorize
17his returns to be filed on an annual basis, with the return for
18a given year being due by January 20 of the following year.
19    Such quarter annual and annual returns, as to form and
20substance, shall be subject to the same requirements as monthly
21returns.
22    Notwithstanding any other provision in this Act concerning
23the time within which a serviceman may file his return, in the
24case of any serviceman who ceases to engage in a kind of
25business which makes him responsible for filing returns under
26this Act, such serviceman shall file a final return under this

 

 

HB1438 Enrolled- 475 -LRB101 04919 JRG 49928 b

1Act with the Department not more than 1 month after
2discontinuing such business.
3    Beginning October 1, 1993, a taxpayer who has an average
4monthly tax liability of $150,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1994, a taxpayer who has
7an average monthly tax liability of $100,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1995, a taxpayer who has
10an average monthly tax liability of $50,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 2000, a taxpayer who has
13an annual tax liability of $200,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. The term "annual tax liability" shall be the
16sum of the taxpayer's liabilities under this Act, and under all
17other State and local occupation and use tax laws administered
18by the Department, for the immediately preceding calendar year.
19The term "average monthly tax liability" means the sum of the
20taxpayer's liabilities under this Act, and under all other
21State and local occupation and use tax laws administered by the
22Department, for the immediately preceding calendar year
23divided by 12. Beginning on October 1, 2002, a taxpayer who has
24a tax liability in the amount set forth in subsection (b) of
25Section 2505-210 of the Department of Revenue Law shall make
26all payments required by rules of the Department by electronic

 

 

HB1438 Enrolled- 476 -LRB101 04919 JRG 49928 b

1funds transfer.
2    Before August 1 of each year beginning in 1993, the
3Department shall notify all taxpayers required to make payments
4by electronic funds transfer. All taxpayers required to make
5payments by electronic funds transfer shall make those payments
6for a minimum of one year beginning on October 1.
7    Any taxpayer not required to make payments by electronic
8funds transfer may make payments by electronic funds transfer
9with the permission of the Department.
10    All taxpayers required to make payment by electronic funds
11transfer and any taxpayers authorized to voluntarily make
12payments by electronic funds transfer shall make those payments
13in the manner authorized by the Department.
14    The Department shall adopt such rules as are necessary to
15effectuate a program of electronic funds transfer and the
16requirements of this Section.
17    Where a serviceman collects the tax with respect to the
18selling price of tangible personal property which he sells and
19the purchaser thereafter returns such tangible personal
20property and the serviceman refunds the selling price thereof
21to the purchaser, such serviceman shall also refund, to the
22purchaser, the tax so collected from the purchaser. When filing
23his return for the period in which he refunds such tax to the
24purchaser, the serviceman may deduct the amount of the tax so
25refunded by him to the purchaser from any other Service
26Occupation Tax, Service Use Tax, Retailers' Occupation Tax or

 

 

HB1438 Enrolled- 477 -LRB101 04919 JRG 49928 b

1Use Tax which such serviceman may be required to pay or remit
2to the Department, as shown by such return, provided that the
3amount of the tax to be deducted shall previously have been
4remitted to the Department by such serviceman. If the
5serviceman shall not previously have remitted the amount of
6such tax to the Department, he shall be entitled to no
7deduction hereunder upon refunding such tax to the purchaser.
8    If experience indicates such action to be practicable, the
9Department may prescribe and furnish a combination or joint
10return which will enable servicemen, who are required to file
11returns hereunder and also under the Retailers' Occupation Tax
12Act, the Use Tax Act or the Service Use Tax Act, to furnish all
13the return information required by all said Acts on the one
14form.
15    Where the serviceman has more than one business registered
16with the Department under separate registrations hereunder,
17such serviceman shall file separate returns for each registered
18business.
19    Beginning January 1, 1990, each month the Department shall
20pay into the Local Government Tax Fund the revenue realized for
21the preceding month from the 1% tax imposed under this Act.
22    Beginning January 1, 1990, each month the Department shall
23pay into the County and Mass Transit District Fund 4% of the
24revenue realized for the preceding month from the 6.25% general
25rate.
26    Beginning August 1, 2000, each month the Department shall

 

 

HB1438 Enrolled- 478 -LRB101 04919 JRG 49928 b

1pay into the County and Mass Transit District Fund 20% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund 16% of the revenue
6realized for the preceding month from the 6.25% general rate on
7transfers of tangible personal property.
8    Beginning August 1, 2000, each month the Department shall
9pay into the Local Government Tax Fund 80% of the net revenue
10realized for the preceding month from the 1.25% rate on the
11selling price of motor fuel and gasohol.
12    Beginning October 1, 2009, each month the Department shall
13pay into the Capital Projects Fund an amount that is equal to
14an amount estimated by the Department to represent 80% of the
15net revenue realized for the preceding month from the sale of
16candy, grooming and hygiene products, and soft drinks that had
17been taxed at a rate of 1% prior to September 1, 2009 but that
18are now taxed at 6.25%.
19    Beginning July 1, 2013, each month the Department shall pay
20into the Underground Storage Tank Fund from the proceeds
21collected under this Act, the Use Tax Act, the Service Use Tax
22Act, and the Retailers' Occupation Tax Act an amount equal to
23the average monthly deficit in the Underground Storage Tank
24Fund during the prior year, as certified annually by the
25Illinois Environmental Protection Agency, but the total
26payment into the Underground Storage Tank Fund under this Act,

 

 

HB1438 Enrolled- 479 -LRB101 04919 JRG 49928 b

1the Use Tax Act, the Service Use Tax Act, and the Retailers'
2Occupation Tax Act shall not exceed $18,000,000 in any State
3fiscal year. As used in this paragraph, the "average monthly
4deficit" shall be equal to the difference between the average
5monthly claims for payment by the fund and the average monthly
6revenues deposited into the fund, excluding payments made
7pursuant to this paragraph.
8    Beginning July 1, 2015, of the remainder of the moneys
9received by the Department under the Use Tax Act, the Service
10Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
11each month the Department shall deposit $500,000 into the State
12Crime Laboratory Fund.
13    Of the remainder of the moneys received by the Department
14pursuant to this Act, (a) 1.75% thereof shall be paid into the
15Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16and after July 1, 1989, 3.8% thereof shall be paid into the
17Build Illinois Fund; provided, however, that if in any fiscal
18year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19may be, of the moneys received by the Department and required
20to be paid into the Build Illinois Fund pursuant to Section 3
21of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23Service Occupation Tax Act, such Acts being hereinafter called
24the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25may be, of moneys being hereinafter called the "Tax Act
26Amount", and (2) the amount transferred to the Build Illinois

 

 

HB1438 Enrolled- 480 -LRB101 04919 JRG 49928 b

1Fund from the State and Local Sales Tax Reform Fund shall be
2less than the Annual Specified Amount (as defined in Section 3
3of the Retailers' Occupation Tax Act), an amount equal to the
4difference shall be immediately paid into the Build Illinois
5Fund from other moneys received by the Department pursuant to
6the Tax Acts; and further provided, that if on the last
7business day of any month the sum of (1) the Tax Act Amount
8required to be deposited into the Build Illinois Account in the
9Build Illinois Fund during such month and (2) the amount
10transferred during such month to the Build Illinois Fund from
11the State and Local Sales Tax Reform Fund shall have been less
12than 1/12 of the Annual Specified Amount, an amount equal to
13the difference shall be immediately paid into the Build
14Illinois Fund from other moneys received by the Department
15pursuant to the Tax Acts; and, further provided, that in no
16event shall the payments required under the preceding proviso
17result in aggregate payments into the Build Illinois Fund
18pursuant to this clause (b) for any fiscal year in excess of
19the greater of (i) the Tax Act Amount or (ii) the Annual
20Specified Amount for such fiscal year; and, further provided,
21that the amounts payable into the Build Illinois Fund under
22this clause (b) shall be payable only until such time as the
23aggregate amount on deposit under each trust indenture securing
24Bonds issued and outstanding pursuant to the Build Illinois
25Bond Act is sufficient, taking into account any future
26investment income, to fully provide, in accordance with such

 

 

HB1438 Enrolled- 481 -LRB101 04919 JRG 49928 b

1indenture, for the defeasance of or the payment of the
2principal of, premium, if any, and interest on the Bonds
3secured by such indenture and on any Bonds expected to be
4issued thereafter and all fees and costs payable with respect
5thereto, all as certified by the Director of the Bureau of the
6Budget (now Governor's Office of Management and Budget). If on
7the last business day of any month in which Bonds are
8outstanding pursuant to the Build Illinois Bond Act, the
9aggregate of the moneys deposited in the Build Illinois Bond
10Account in the Build Illinois Fund in such month shall be less
11than the amount required to be transferred in such month from
12the Build Illinois Bond Account to the Build Illinois Bond
13Retirement and Interest Fund pursuant to Section 13 of the
14Build Illinois Bond Act, an amount equal to such deficiency
15shall be immediately paid from other moneys received by the
16Department pursuant to the Tax Acts to the Build Illinois Fund;
17provided, however, that any amounts paid to the Build Illinois
18Fund in any fiscal year pursuant to this sentence shall be
19deemed to constitute payments pursuant to clause (b) of the
20preceding sentence and shall reduce the amount otherwise
21payable for such fiscal year pursuant to clause (b) of the
22preceding sentence. The moneys received by the Department
23pursuant to this Act and required to be deposited into the
24Build Illinois Fund are subject to the pledge, claim and charge
25set forth in Section 12 of the Build Illinois Bond Act.
26    Subject to payment of amounts into the Build Illinois Fund

 

 

HB1438 Enrolled- 482 -LRB101 04919 JRG 49928 b

1as provided in the preceding paragraph or in any amendment
2thereto hereafter enacted, the following specified monthly
3installment of the amount requested in the certificate of the
4Chairman of the Metropolitan Pier and Exposition Authority
5provided under Section 8.25f of the State Finance Act, but not
6in excess of the sums designated as "Total Deposit", shall be
7deposited in the aggregate from collections under Section 9 of
8the Use Tax Act, Section 9 of the Service Use Tax Act, Section
99 of the Service Occupation Tax Act, and Section 3 of the
10Retailers' Occupation Tax Act into the McCormick Place
11Expansion Project Fund in the specified fiscal years.
12Fiscal YearTotal Deposit
131993         $0
141994 53,000,000
151995 58,000,000
161996 61,000,000
171997 64,000,000
181998 68,000,000
191999 71,000,000
202000 75,000,000
212001 80,000,000
222002 93,000,000
232003 99,000,000
242004103,000,000
252005108,000,000

 

 

HB1438 Enrolled- 483 -LRB101 04919 JRG 49928 b

12006113,000,000
22007119,000,000
32008126,000,000
42009132,000,000
52010139,000,000
62011146,000,000
72012153,000,000
82013161,000,000
92014170,000,000
102015179,000,000
112016189,000,000
122017199,000,000
132018210,000,000
142019221,000,000
152020233,000,000
162021246,000,000
172022260,000,000
182023275,000,000
192024 275,000,000
202025 275,000,000
212026 279,000,000
222027 292,000,000
232028 307,000,000
242029 322,000,000
252030 338,000,000
262031 350,000,000

 

 

HB1438 Enrolled- 484 -LRB101 04919 JRG 49928 b

12032 350,000,000
2and
3each fiscal year
4thereafter that bonds
5are outstanding under
6Section 13.2 of the
7Metropolitan Pier and
8Exposition Authority Act,
9but not after fiscal year 2060.
10    Beginning July 20, 1993 and in each month of each fiscal
11year thereafter, one-eighth of the amount requested in the
12certificate of the Chairman of the Metropolitan Pier and
13Exposition Authority for that fiscal year, less the amount
14deposited into the McCormick Place Expansion Project Fund by
15the State Treasurer in the respective month under subsection
16(g) of Section 13 of the Metropolitan Pier and Exposition
17Authority Act, plus cumulative deficiencies in the deposits
18required under this Section for previous months and years,
19shall be deposited into the McCormick Place Expansion Project
20Fund, until the full amount requested for the fiscal year, but
21not in excess of the amount specified above as "Total Deposit",
22has been deposited.
23    Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning July 1, 1993 and ending on September 30,

 

 

HB1438 Enrolled- 485 -LRB101 04919 JRG 49928 b

12013, the Department shall each month pay into the Illinois Tax
2Increment Fund 0.27% of 80% of the net revenue realized for the
3preceding month from the 6.25% general rate on the selling
4price of tangible personal property.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning with the receipt of the first report of
9taxes paid by an eligible business and continuing for a 25-year
10period, the Department shall each month pay into the Energy
11Infrastructure Fund 80% of the net revenue realized from the
126.25% general rate on the selling price of Illinois-mined coal
13that was sold to an eligible business. For purposes of this
14paragraph, the term "eligible business" means a new electric
15generating facility certified pursuant to Section 605-332 of
16the Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18    Subject to payment of amounts into the Build Illinois Fund,
19the McCormick Place Expansion Project Fund, the Illinois Tax
20Increment Fund, and the Energy Infrastructure Fund pursuant to
21the preceding paragraphs or in any amendments to this Section
22hereafter enacted, beginning on the first day of the first
23calendar month to occur on or after August 26, 2014 (the
24effective date of Public Act 98-1098), each month, from the
25collections made under Section 9 of the Use Tax Act, Section 9
26of the Service Use Tax Act, Section 9 of the Service Occupation

 

 

HB1438 Enrolled- 486 -LRB101 04919 JRG 49928 b

1Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
2the Department shall pay into the Tax Compliance and
3Administration Fund, to be used, subject to appropriation, to
4fund additional auditors and compliance personnel at the
5Department of Revenue, an amount equal to 1/12 of 5% of 80% of
6the cash receipts collected during the preceding fiscal year by
7the Audit Bureau of the Department under the Use Tax Act, the
8Service Use Tax Act, the Service Occupation Tax Act, the
9Retailers' Occupation Tax Act, and associated local occupation
10and use taxes administered by the Department.
11    Subject to payments of amounts into the Build Illinois
12Fund, the McCormick Place Expansion Project Fund, the Illinois
13Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
14Compliance and Administration Fund as provided in this Section,
15beginning on July 1, 2018 the Department shall pay each month
16into the Downstate Public Transportation Fund the moneys
17required to be so paid under Section 2-3 of the Downstate
18Public Transportation Act.
19    Of the remainder of the moneys received by the Department
20pursuant to this Act, 75% shall be paid into the General
21Revenue Fund of the State Treasury and 25% shall be reserved in
22a special account and used only for the transfer to the Common
23School Fund as part of the monthly transfer from the General
24Revenue Fund in accordance with Section 8a of the State Finance
25Act.
26    The Department may, upon separate written notice to a

 

 

HB1438 Enrolled- 487 -LRB101 04919 JRG 49928 b

1taxpayer, require the taxpayer to prepare and file with the
2Department on a form prescribed by the Department within not
3less than 60 days after receipt of the notice an annual
4information return for the tax year specified in the notice.
5Such annual return to the Department shall include a statement
6of gross receipts as shown by the taxpayer's last Federal
7income tax return. If the total receipts of the business as
8reported in the Federal income tax return do not agree with the
9gross receipts reported to the Department of Revenue for the
10same period, the taxpayer shall attach to his annual return a
11schedule showing a reconciliation of the 2 amounts and the
12reasons for the difference. The taxpayer's annual return to the
13Department shall also disclose the cost of goods sold by the
14taxpayer during the year covered by such return, opening and
15closing inventories of such goods for such year, cost of goods
16used from stock or taken from stock and given away by the
17taxpayer during such year, pay roll information of the
18taxpayer's business during such year and any additional
19reasonable information which the Department deems would be
20helpful in determining the accuracy of the monthly, quarterly
21or annual returns filed by such taxpayer as hereinbefore
22provided for in this Section.
23    If the annual information return required by this Section
24is not filed when and as required, the taxpayer shall be liable
25as follows:
26        (i) Until January 1, 1994, the taxpayer shall be liable

 

 

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1    for a penalty equal to 1/6 of 1% of the tax due from such
2    taxpayer under this Act during the period to be covered by
3    the annual return for each month or fraction of a month
4    until such return is filed as required, the penalty to be
5    assessed and collected in the same manner as any other
6    penalty provided for in this Act.
7        (ii) On and after January 1, 1994, the taxpayer shall
8    be liable for a penalty as described in Section 3-4 of the
9    Uniform Penalty and Interest Act.
10    The chief executive officer, proprietor, owner or highest
11ranking manager shall sign the annual return to certify the
12accuracy of the information contained therein. Any person who
13willfully signs the annual return containing false or
14inaccurate information shall be guilty of perjury and punished
15accordingly. The annual return form prescribed by the
16Department shall include a warning that the person signing the
17return may be liable for perjury.
18    The foregoing portion of this Section concerning the filing
19of an annual information return shall not apply to a serviceman
20who is not required to file an income tax return with the
21United States Government.
22    As soon as possible after the first day of each month, upon
23certification of the Department of Revenue, the Comptroller
24shall order transferred and the Treasurer shall transfer from
25the General Revenue Fund to the Motor Fuel Tax Fund an amount
26equal to 1.7% of 80% of the net revenue realized under this Act

 

 

HB1438 Enrolled- 489 -LRB101 04919 JRG 49928 b

1for the second preceding month. Beginning April 1, 2000, this
2transfer is no longer required and shall not be made.
3    Net revenue realized for a month shall be the revenue
4collected by the State pursuant to this Act, less the amount
5paid out during that month as refunds to taxpayers for
6overpayment of liability.
7    For greater simplicity of administration, it shall be
8permissible for manufacturers, importers and wholesalers whose
9products are sold by numerous servicemen in Illinois, and who
10wish to do so, to assume the responsibility for accounting and
11paying to the Department all tax accruing under this Act with
12respect to such sales, if the servicemen who are affected do
13not make written objection to the Department to this
14arrangement.
15(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
16100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
178-14-18; 100-1171, eff. 1-4-19.)
 
18    Section 900-19. The Retailers' Occupation Tax Act is
19amended by changing Section 3 as follows:
 
20    (35 ILCS 120/3)  (from Ch. 120, par. 442)
21    Sec. 3. Except as provided in this Section, on or before
22the twentieth day of each calendar month, every person engaged
23in the business of selling tangible personal property at retail
24in this State during the preceding calendar month shall file a

 

 

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1return with the Department, stating:
2        1. The name of the seller;
3        2. His residence address and the address of his
4    principal place of business and the address of the
5    principal place of business (if that is a different
6    address) from which he engages in the business of selling
7    tangible personal property at retail in this State;
8        3. Total amount of receipts received by him during the
9    preceding calendar month or quarter, as the case may be,
10    from sales of tangible personal property, and from services
11    furnished, by him during such preceding calendar month or
12    quarter;
13        4. Total amount received by him during the preceding
14    calendar month or quarter on charge and time sales of
15    tangible personal property, and from services furnished,
16    by him prior to the month or quarter for which the return
17    is filed;
18        5. Deductions allowed by law;
19        6. Gross receipts which were received by him during the
20    preceding calendar month or quarter and upon the basis of
21    which the tax is imposed;
22        7. The amount of credit provided in Section 2d of this
23    Act;
24        8. The amount of tax due;
25        9. The signature of the taxpayer; and
26        10. Such other reasonable information as the

 

 

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1    Department may require.
2    On and after January 1, 2018, except for returns for motor
3vehicles, watercraft, aircraft, and trailers that are required
4to be registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. Retailers who demonstrate that they do
8not have access to the Internet or demonstrate hardship in
9filing electronically may petition the Department to waive the
10electronic filing requirement.
11    If a taxpayer fails to sign a return within 30 days after
12the proper notice and demand for signature by the Department,
13the return shall be considered valid and any amount shown to be
14due on the return shall be deemed assessed.
15    Each return shall be accompanied by the statement of
16prepaid tax issued pursuant to Section 2e for which credit is
17claimed.
18    Prior to October 1, 2003, and on and after September 1,
192004 a retailer may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Use Tax as
21provided in Section 3-85 of the Use Tax Act if the purchaser
22provides the appropriate documentation as required by Section
233-85 of the Use Tax Act. A Manufacturer's Purchase Credit
24certification, accepted by a retailer prior to October 1, 2003
25and on and after September 1, 2004 as provided in Section 3-85
26of the Use Tax Act, may be used by that retailer to satisfy

 

 

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1Retailers' Occupation Tax liability in the amount claimed in
2the certification, not to exceed 6.25% of the receipts subject
3to tax from a qualifying purchase. A Manufacturer's Purchase
4Credit reported on any original or amended return filed under
5this Act after October 20, 2003 for reporting periods prior to
6September 1, 2004 shall be disallowed. Manufacturer's
7Purchaser Credit reported on annual returns due on or after
8January 1, 2005 will be disallowed for periods prior to
9September 1, 2004. No Manufacturer's Purchase Credit may be
10used after September 30, 2003 through August 31, 2004 to
11satisfy any tax liability imposed under this Act, including any
12audit liability.
13    The Department may require returns to be filed on a
14quarterly basis. If so required, a return for each calendar
15quarter shall be filed on or before the twentieth day of the
16calendar month following the end of such calendar quarter. The
17taxpayer shall also file a return with the Department for each
18of the first two months of each calendar quarter, on or before
19the twentieth day of the following calendar month, stating:
20        1. The name of the seller;
21        2. The address of the principal place of business from
22    which he engages in the business of selling tangible
23    personal property at retail in this State;
24        3. The total amount of taxable receipts received by him
25    during the preceding calendar month from sales of tangible
26    personal property by him during such preceding calendar

 

 

HB1438 Enrolled- 493 -LRB101 04919 JRG 49928 b

1    month, including receipts from charge and time sales, but
2    less all deductions allowed by law;
3        4. The amount of credit provided in Section 2d of this
4    Act;
5        5. The amount of tax due; and
6        6. Such other reasonable information as the Department
7    may require.
8    Beginning on October 1, 2003, any person who is not a
9licensed distributor, importing distributor, or manufacturer,
10as defined in the Liquor Control Act of 1934, but is engaged in
11the business of selling, at retail, alcoholic liquor shall file
12a statement with the Department of Revenue, in a format and at
13a time prescribed by the Department, showing the total amount
14paid for alcoholic liquor purchased during the preceding month
15and such other information as is reasonably required by the
16Department. The Department may adopt rules to require that this
17statement be filed in an electronic or telephonic format. Such
18rules may provide for exceptions from the filing requirements
19of this paragraph. For the purposes of this paragraph, the term
20"alcoholic liquor" shall have the meaning prescribed in the
21Liquor Control Act of 1934.
22    Beginning on October 1, 2003, every distributor, importing
23distributor, and manufacturer of alcoholic liquor as defined in
24the Liquor Control Act of 1934, shall file a statement with the
25Department of Revenue, no later than the 10th day of the month
26for the preceding month during which transactions occurred, by

 

 

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1electronic means, showing the total amount of gross receipts
2from the sale of alcoholic liquor sold or distributed during
3the preceding month to purchasers; identifying the purchaser to
4whom it was sold or distributed; the purchaser's tax
5registration number; and such other information reasonably
6required by the Department. A distributor, importing
7distributor, or manufacturer of alcoholic liquor must
8personally deliver, mail, or provide by electronic means to
9each retailer listed on the monthly statement a report
10containing a cumulative total of that distributor's, importing
11distributor's, or manufacturer's total sales of alcoholic
12liquor to that retailer no later than the 10th day of the month
13for the preceding month during which the transaction occurred.
14The distributor, importing distributor, or manufacturer shall
15notify the retailer as to the method by which the distributor,
16importing distributor, or manufacturer will provide the sales
17information. If the retailer is unable to receive the sales
18information by electronic means, the distributor, importing
19distributor, or manufacturer shall furnish the sales
20information by personal delivery or by mail. For purposes of
21this paragraph, the term "electronic means" includes, but is
22not limited to, the use of a secure Internet website, e-mail,
23or facsimile.
24    If a total amount of less than $1 is payable, refundable or
25creditable, such amount shall be disregarded if it is less than
2650 cents and shall be increased to $1 if it is 50 cents or more.

 

 

HB1438 Enrolled- 495 -LRB101 04919 JRG 49928 b

1    Notwithstanding any other provision of this Act to the
2contrary, retailers subject to tax on cannabis shall file all
3cannabis tax returns and shall make all cannabis tax payments
4by electronic means in the manner and form required by the
5Department.
6    Beginning October 1, 1993, a taxpayer who has an average
7monthly tax liability of $150,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1994, a taxpayer who has
10an average monthly tax liability of $100,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1995, a taxpayer who has
13an average monthly tax liability of $50,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 2000, a taxpayer who has
16an annual tax liability of $200,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. The term "annual tax liability" shall be the
19sum of the taxpayer's liabilities under this Act, and under all
20other State and local occupation and use tax laws administered
21by the Department, for the immediately preceding calendar year.
22The term "average monthly tax liability" shall be the sum of
23the taxpayer's liabilities under this Act, and under all other
24State and local occupation and use tax laws administered by the
25Department, for the immediately preceding calendar year
26divided by 12. Beginning on October 1, 2002, a taxpayer who has

 

 

HB1438 Enrolled- 496 -LRB101 04919 JRG 49928 b

1a tax liability in the amount set forth in subsection (b) of
2Section 2505-210 of the Department of Revenue Law shall make
3all payments required by rules of the Department by electronic
4funds transfer.
5    Before August 1 of each year beginning in 1993, the
6Department shall notify all taxpayers required to make payments
7by electronic funds transfer. All taxpayers required to make
8payments by electronic funds transfer shall make those payments
9for a minimum of one year beginning on October 1.
10    Any taxpayer not required to make payments by electronic
11funds transfer may make payments by electronic funds transfer
12with the permission of the Department.
13    All taxpayers required to make payment by electronic funds
14transfer and any taxpayers authorized to voluntarily make
15payments by electronic funds transfer shall make those payments
16in the manner authorized by the Department.
17    The Department shall adopt such rules as are necessary to
18effectuate a program of electronic funds transfer and the
19requirements of this Section.
20    Any amount which is required to be shown or reported on any
21return or other document under this Act shall, if such amount
22is not a whole-dollar amount, be increased to the nearest
23whole-dollar amount in any case where the fractional part of a
24dollar is 50 cents or more, and decreased to the nearest
25whole-dollar amount where the fractional part of a dollar is
26less than 50 cents.

 

 

HB1438 Enrolled- 497 -LRB101 04919 JRG 49928 b

1    If the retailer is otherwise required to file a monthly
2return and if the retailer's average monthly tax liability to
3the Department does not exceed $200, the Department may
4authorize his returns to be filed on a quarter annual basis,
5with the return for January, February and March of a given year
6being due by April 20 of such year; with the return for April,
7May and June of a given year being due by July 20 of such year;
8with the return for July, August and September of a given year
9being due by October 20 of such year, and with the return for
10October, November and December of a given year being due by
11January 20 of the following year.
12    If the retailer is otherwise required to file a monthly or
13quarterly return and if the retailer's average monthly tax
14liability with the Department does not exceed $50, the
15Department may authorize his returns to be filed on an annual
16basis, with the return for a given year being due by January 20
17of the following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as monthly
20returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which a retailer may file his return, in the
23case of any retailer who ceases to engage in a kind of business
24which makes him responsible for filing returns under this Act,
25such retailer shall file a final return under this Act with the
26Department not more than one month after discontinuing such

 

 

HB1438 Enrolled- 498 -LRB101 04919 JRG 49928 b

1business.
2    Where the same person has more than one business registered
3with the Department under separate registrations under this
4Act, such person may not file each return that is due as a
5single return covering all such registered businesses, but
6shall file separate returns for each such registered business.
7    In addition, with respect to motor vehicles, watercraft,
8aircraft, and trailers that are required to be registered with
9an agency of this State, except as otherwise provided in this
10Section, every retailer selling this kind of tangible personal
11property shall file, with the Department, upon a form to be
12prescribed and supplied by the Department, a separate return
13for each such item of tangible personal property which the
14retailer sells, except that if, in the same transaction, (i) a
15retailer of aircraft, watercraft, motor vehicles or trailers
16transfers more than one aircraft, watercraft, motor vehicle or
17trailer to another aircraft, watercraft, motor vehicle
18retailer or trailer retailer for the purpose of resale or (ii)
19a retailer of aircraft, watercraft, motor vehicles, or trailers
20transfers more than one aircraft, watercraft, motor vehicle, or
21trailer to a purchaser for use as a qualifying rolling stock as
22provided in Section 2-5 of this Act, then that seller may
23report the transfer of all aircraft, watercraft, motor vehicles
24or trailers involved in that transaction to the Department on
25the same uniform invoice-transaction reporting return form.
26For purposes of this Section, "watercraft" means a Class 2,

 

 

HB1438 Enrolled- 499 -LRB101 04919 JRG 49928 b

1Class 3, or Class 4 watercraft as defined in Section 3-2 of the
2Boat Registration and Safety Act, a personal watercraft, or any
3boat equipped with an inboard motor.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, every person who is engaged in the
7business of leasing or renting such items and who, in
8connection with such business, sells any such item to a
9retailer for the purpose of resale is, notwithstanding any
10other provision of this Section to the contrary, authorized to
11meet the return-filing requirement of this Act by reporting the
12transfer of all the aircraft, watercraft, motor vehicles, or
13trailers transferred for resale during a month to the
14Department on the same uniform invoice-transaction reporting
15return form on or before the 20th of the month following the
16month in which the transfer takes place. Notwithstanding any
17other provision of this Act to the contrary, all returns filed
18under this paragraph must be filed by electronic means in the
19manner and form as required by the Department.
20    Any retailer who sells only motor vehicles, watercraft,
21aircraft, or trailers that are required to be registered with
22an agency of this State, so that all retailers' occupation tax
23liability is required to be reported, and is reported, on such
24transaction reporting returns and who is not otherwise required
25to file monthly or quarterly returns, need not file monthly or
26quarterly returns. However, those retailers shall be required

 

 

HB1438 Enrolled- 500 -LRB101 04919 JRG 49928 b

1to file returns on an annual basis.
2    The transaction reporting return, in the case of motor
3vehicles or trailers that are required to be registered with an
4agency of this State, shall be the same document as the Uniform
5Invoice referred to in Section 5-402 of the Illinois Vehicle
6Code and must show the name and address of the seller; the name
7and address of the purchaser; the amount of the selling price
8including the amount allowed by the retailer for traded-in
9property, if any; the amount allowed by the retailer for the
10traded-in tangible personal property, if any, to the extent to
11which Section 1 of this Act allows an exemption for the value
12of traded-in property; the balance payable after deducting such
13trade-in allowance from the total selling price; the amount of
14tax due from the retailer with respect to such transaction; the
15amount of tax collected from the purchaser by the retailer on
16such transaction (or satisfactory evidence that such tax is not
17due in that particular instance, if that is claimed to be the
18fact); the place and date of the sale; a sufficient
19identification of the property sold; such other information as
20is required in Section 5-402 of the Illinois Vehicle Code, and
21such other information as the Department may reasonably
22require.
23    The transaction reporting return in the case of watercraft
24or aircraft must show the name and address of the seller; the
25name and address of the purchaser; the amount of the selling
26price including the amount allowed by the retailer for

 

 

HB1438 Enrolled- 501 -LRB101 04919 JRG 49928 b

1traded-in property, if any; the amount allowed by the retailer
2for the traded-in tangible personal property, if any, to the
3extent to which Section 1 of this Act allows an exemption for
4the value of traded-in property; the balance payable after
5deducting such trade-in allowance from the total selling price;
6the amount of tax due from the retailer with respect to such
7transaction; the amount of tax collected from the purchaser by
8the retailer on such transaction (or satisfactory evidence that
9such tax is not due in that particular instance, if that is
10claimed to be the fact); the place and date of the sale, a
11sufficient identification of the property sold, and such other
12information as the Department may reasonably require.
13    Such transaction reporting return shall be filed not later
14than 20 days after the day of delivery of the item that is
15being sold, but may be filed by the retailer at any time sooner
16than that if he chooses to do so. The transaction reporting
17return and tax remittance or proof of exemption from the
18Illinois use tax may be transmitted to the Department by way of
19the State agency with which, or State officer with whom the
20tangible personal property must be titled or registered (if
21titling or registration is required) if the Department and such
22agency or State officer determine that this procedure will
23expedite the processing of applications for title or
24registration.
25    With each such transaction reporting return, the retailer
26shall remit the proper amount of tax due (or shall submit

 

 

HB1438 Enrolled- 502 -LRB101 04919 JRG 49928 b

1satisfactory evidence that the sale is not taxable if that is
2the case), to the Department or its agents, whereupon the
3Department shall issue, in the purchaser's name, a use tax
4receipt (or a certificate of exemption if the Department is
5satisfied that the particular sale is tax exempt) which such
6purchaser may submit to the agency with which, or State officer
7with whom, he must title or register the tangible personal
8property that is involved (if titling or registration is
9required) in support of such purchaser's application for an
10Illinois certificate or other evidence of title or registration
11to such tangible personal property.
12    No retailer's failure or refusal to remit tax under this
13Act precludes a user, who has paid the proper tax to the
14retailer, from obtaining his certificate of title or other
15evidence of title or registration (if titling or registration
16is required) upon satisfying the Department that such user has
17paid the proper tax (if tax is due) to the retailer. The
18Department shall adopt appropriate rules to carry out the
19mandate of this paragraph.
20    If the user who would otherwise pay tax to the retailer
21wants the transaction reporting return filed and the payment of
22the tax or proof of exemption made to the Department before the
23retailer is willing to take these actions and such user has not
24paid the tax to the retailer, such user may certify to the fact
25of such delay by the retailer and may (upon the Department
26being satisfied of the truth of such certification) transmit

 

 

HB1438 Enrolled- 503 -LRB101 04919 JRG 49928 b

1the information required by the transaction reporting return
2and the remittance for tax or proof of exemption directly to
3the Department and obtain his tax receipt or exemption
4determination, in which event the transaction reporting return
5and tax remittance (if a tax payment was required) shall be
6credited by the Department to the proper retailer's account
7with the Department, but without the 2.1% or 1.75% discount
8provided for in this Section being allowed. When the user pays
9the tax directly to the Department, he shall pay the tax in the
10same amount and in the same form in which it would be remitted
11if the tax had been remitted to the Department by the retailer.
12    Refunds made by the seller during the preceding return
13period to purchasers, on account of tangible personal property
14returned to the seller, shall be allowed as a deduction under
15subdivision 5 of his monthly or quarterly return, as the case
16may be, in case the seller had theretofore included the
17receipts from the sale of such tangible personal property in a
18return filed by him and had paid the tax imposed by this Act
19with respect to such receipts.
20    Where the seller is a corporation, the return filed on
21behalf of such corporation shall be signed by the president,
22vice-president, secretary or treasurer or by the properly
23accredited agent of such corporation.
24    Where the seller is a limited liability company, the return
25filed on behalf of the limited liability company shall be
26signed by a manager, member, or properly accredited agent of

 

 

HB1438 Enrolled- 504 -LRB101 04919 JRG 49928 b

1the limited liability company.
2    Except as provided in this Section, the retailer filing the
3return under this Section shall, at the time of filing such
4return, pay to the Department the amount of tax imposed by this
5Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6on and after January 1, 1990, or $5 per calendar year,
7whichever is greater, which is allowed to reimburse the
8retailer for the expenses incurred in keeping records,
9preparing and filing returns, remitting the tax and supplying
10data to the Department on request. Any prepayment made pursuant
11to Section 2d of this Act shall be included in the amount on
12which such 2.1% or 1.75% discount is computed. In the case of
13retailers who report and pay the tax on a transaction by
14transaction basis, as provided in this Section, such discount
15shall be taken with each such tax remittance instead of when
16such retailer files his periodic return. The discount allowed
17under this Section is allowed only for returns that are filed
18in the manner required by this Act. The Department may disallow
19the discount for retailers whose certificate of registration is
20revoked at the time the return is filed, but only if the
21Department's decision to revoke the certificate of
22registration has become final.
23    Before October 1, 2000, if the taxpayer's average monthly
24tax liability to the Department under this Act, the Use Tax
25Act, the Service Occupation Tax Act, and the Service Use Tax
26Act, excluding any liability for prepaid sales tax to be

 

 

HB1438 Enrolled- 505 -LRB101 04919 JRG 49928 b

1remitted in accordance with Section 2d of this Act, was $10,000
2or more during the preceding 4 complete calendar quarters, he
3shall file a return with the Department each month by the 20th
4day of the month next following the month during which such tax
5liability is incurred and shall make payments to the Department
6on or before the 7th, 15th, 22nd and last day of the month
7during which such liability is incurred. On and after October
81, 2000, if the taxpayer's average monthly tax liability to the
9Department under this Act, the Use Tax Act, the Service
10Occupation Tax Act, and the Service Use Tax Act, excluding any
11liability for prepaid sales tax to be remitted in accordance
12with Section 2d of this Act, was $20,000 or more during the
13preceding 4 complete calendar quarters, he shall file a return
14with the Department each month by the 20th day of the month
15next following the month during which such tax liability is
16incurred and shall make payment to the Department on or before
17the 7th, 15th, 22nd and last day of the month during which such
18liability is incurred. If the month during which such tax
19liability is incurred began prior to January 1, 1985, each
20payment shall be in an amount equal to 1/4 of the taxpayer's
21actual liability for the month or an amount set by the
22Department not to exceed 1/4 of the average monthly liability
23of the taxpayer to the Department for the preceding 4 complete
24calendar quarters (excluding the month of highest liability and
25the month of lowest liability in such 4 quarter period). If the
26month during which such tax liability is incurred begins on or

 

 

HB1438 Enrolled- 506 -LRB101 04919 JRG 49928 b

1after January 1, 1985 and prior to January 1, 1987, each
2payment shall be in an amount equal to 22.5% of the taxpayer's
3actual liability for the month or 27.5% of the taxpayer's
4liability for the same calendar month of the preceding year. If
5the month during which such tax liability is incurred begins on
6or after January 1, 1987 and prior to January 1, 1988, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 26.25% of the taxpayer's
9liability for the same calendar month of the preceding year. If
10the month during which such tax liability is incurred begins on
11or after January 1, 1988, and prior to January 1, 1989, or
12begins on or after January 1, 1996, each payment shall be in an
13amount equal to 22.5% of the taxpayer's actual liability for
14the month or 25% of the taxpayer's liability for the same
15calendar month of the preceding year. If the month during which
16such tax liability is incurred begins on or after January 1,
171989, and prior to January 1, 1996, each payment shall be in an
18amount equal to 22.5% of the taxpayer's actual liability for
19the month or 25% of the taxpayer's liability for the same
20calendar month of the preceding year or 100% of the taxpayer's
21actual liability for the quarter monthly reporting period. The
22amount of such quarter monthly payments shall be credited
23against the final tax liability of the taxpayer's return for
24that month. Before October 1, 2000, once applicable, the
25requirement of the making of quarter monthly payments to the
26Department by taxpayers having an average monthly tax liability

 

 

HB1438 Enrolled- 507 -LRB101 04919 JRG 49928 b

1of $10,000 or more as determined in the manner provided above
2shall continue until such taxpayer's average monthly liability
3to the Department during the preceding 4 complete calendar
4quarters (excluding the month of highest liability and the
5month of lowest liability) is less than $9,000, or until such
6taxpayer's average monthly liability to the Department as
7computed for each calendar quarter of the 4 preceding complete
8calendar quarter period is less than $10,000. However, if a
9taxpayer can show the Department that a substantial change in
10the taxpayer's business has occurred which causes the taxpayer
11to anticipate that his average monthly tax liability for the
12reasonably foreseeable future will fall below the $10,000
13threshold stated above, then such taxpayer may petition the
14Department for a change in such taxpayer's reporting status. On
15and after October 1, 2000, once applicable, the requirement of
16the making of quarter monthly payments to the Department by
17taxpayers having an average monthly tax liability of $20,000 or
18more as determined in the manner provided above shall continue
19until such taxpayer's average monthly liability to the
20Department during the preceding 4 complete calendar quarters
21(excluding the month of highest liability and the month of
22lowest liability) is less than $19,000 or until such taxpayer's
23average monthly liability to the Department as computed for
24each calendar quarter of the 4 preceding complete calendar
25quarter period is less than $20,000. However, if a taxpayer can
26show the Department that a substantial change in the taxpayer's

 

 

HB1438 Enrolled- 508 -LRB101 04919 JRG 49928 b

1business has occurred which causes the taxpayer to anticipate
2that his average monthly tax liability for the reasonably
3foreseeable future will fall below the $20,000 threshold stated
4above, then such taxpayer may petition the Department for a
5change in such taxpayer's reporting status. The Department
6shall change such taxpayer's reporting status unless it finds
7that such change is seasonal in nature and not likely to be
8long term. If any such quarter monthly payment is not paid at
9the time or in the amount required by this Section, then the
10taxpayer shall be liable for penalties and interest on the
11difference between the minimum amount due as a payment and the
12amount of such quarter monthly payment actually and timely
13paid, except insofar as the taxpayer has previously made
14payments for that month to the Department in excess of the
15minimum payments previously due as provided in this Section.
16The Department shall make reasonable rules and regulations to
17govern the quarter monthly payment amount and quarter monthly
18payment dates for taxpayers who file on other than a calendar
19monthly basis.
20    The provisions of this paragraph apply before October 1,
212001. Without regard to whether a taxpayer is required to make
22quarter monthly payments as specified above, any taxpayer who
23is required by Section 2d of this Act to collect and remit
24prepaid taxes and has collected prepaid taxes which average in
25excess of $25,000 per month during the preceding 2 complete
26calendar quarters, shall file a return with the Department as

 

 

HB1438 Enrolled- 509 -LRB101 04919 JRG 49928 b

1required by Section 2f and shall make payments to the
2Department on or before the 7th, 15th, 22nd and last day of the
3month during which such liability is incurred. If the month
4during which such tax liability is incurred began prior to
5September 1, 1985 (the effective date of Public Act 84-221),
6each payment shall be in an amount not less than 22.5% of the
7taxpayer's actual liability under Section 2d. If the month
8during which such tax liability is incurred begins on or after
9January 1, 1986, each payment shall be in an amount equal to
1022.5% of the taxpayer's actual liability for the month or 27.5%
11of the taxpayer's liability for the same calendar month of the
12preceding calendar year. If the month during which such tax
13liability is incurred begins on or after January 1, 1987, each
14payment shall be in an amount equal to 22.5% of the taxpayer's
15actual liability for the month or 26.25% of the taxpayer's
16liability for the same calendar month of the preceding year.
17The amount of such quarter monthly payments shall be credited
18against the final tax liability of the taxpayer's return for
19that month filed under this Section or Section 2f, as the case
20may be. Once applicable, the requirement of the making of
21quarter monthly payments to the Department pursuant to this
22paragraph shall continue until such taxpayer's average monthly
23prepaid tax collections during the preceding 2 complete
24calendar quarters is $25,000 or less. If any such quarter
25monthly payment is not paid at the time or in the amount
26required, the taxpayer shall be liable for penalties and

 

 

HB1438 Enrolled- 510 -LRB101 04919 JRG 49928 b

1interest on such difference, except insofar as the taxpayer has
2previously made payments for that month in excess of the
3minimum payments previously due.
4    The provisions of this paragraph apply on and after October
51, 2001. Without regard to whether a taxpayer is required to
6make quarter monthly payments as specified above, any taxpayer
7who is required by Section 2d of this Act to collect and remit
8prepaid taxes and has collected prepaid taxes that average in
9excess of $20,000 per month during the preceding 4 complete
10calendar quarters shall file a return with the Department as
11required by Section 2f and shall make payments to the
12Department on or before the 7th, 15th, 22nd and last day of the
13month during which the liability is incurred. Each payment
14shall be in an amount equal to 22.5% of the taxpayer's actual
15liability for the month or 25% of the taxpayer's liability for
16the same calendar month of the preceding year. The amount of
17the quarter monthly payments shall be credited against the
18final tax liability of the taxpayer's return for that month
19filed under this Section or Section 2f, as the case may be.
20Once applicable, the requirement of the making of quarter
21monthly payments to the Department pursuant to this paragraph
22shall continue until the taxpayer's average monthly prepaid tax
23collections during the preceding 4 complete calendar quarters
24(excluding the month of highest liability and the month of
25lowest liability) is less than $19,000 or until such taxpayer's
26average monthly liability to the Department as computed for

 

 

HB1438 Enrolled- 511 -LRB101 04919 JRG 49928 b

1each calendar quarter of the 4 preceding complete calendar
2quarters is less than $20,000. If any such quarter monthly
3payment is not paid at the time or in the amount required, the
4taxpayer shall be liable for penalties and interest on such
5difference, except insofar as the taxpayer has previously made
6payments for that month in excess of the minimum payments
7previously due.
8    If any payment provided for in this Section exceeds the
9taxpayer's liabilities under this Act, the Use Tax Act, the
10Service Occupation Tax Act and the Service Use Tax Act, as
11shown on an original monthly return, the Department shall, if
12requested by the taxpayer, issue to the taxpayer a credit
13memorandum no later than 30 days after the date of payment. The
14credit evidenced by such credit memorandum may be assigned by
15the taxpayer to a similar taxpayer under this Act, the Use Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department. If no such request is made, the
19taxpayer may credit such excess payment against tax liability
20subsequently to be remitted to the Department under this Act,
21the Use Tax Act, the Service Occupation Tax Act or the Service
22Use Tax Act, in accordance with reasonable rules and
23regulations prescribed by the Department. If the Department
24subsequently determined that all or any part of the credit
25taken was not actually due to the taxpayer, the taxpayer's 2.1%
26and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%

 

 

HB1438 Enrolled- 512 -LRB101 04919 JRG 49928 b

1of the difference between the credit taken and that actually
2due, and that taxpayer shall be liable for penalties and
3interest on such difference.
4    If a retailer of motor fuel is entitled to a credit under
5Section 2d of this Act which exceeds the taxpayer's liability
6to the Department under this Act for the month which the
7taxpayer is filing a return, the Department shall issue the
8taxpayer a credit memorandum for the excess.
9    Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund, a special fund in the
11State treasury which is hereby created, the net revenue
12realized for the preceding month from the 1% tax imposed under
13this Act.
14    Beginning January 1, 1990, each month the Department shall
15pay into the County and Mass Transit District Fund, a special
16fund in the State treasury which is hereby created, 4% of the
17net revenue realized for the preceding month from the 6.25%
18general rate.
19    Beginning August 1, 2000, each month the Department shall
20pay into the County and Mass Transit District Fund 20% of the
21net revenue realized for the preceding month from the 1.25%
22rate on the selling price of motor fuel and gasohol. Beginning
23September 1, 2010, each month the Department shall pay into the
24County and Mass Transit District Fund 20% of the net revenue
25realized for the preceding month from the 1.25% rate on the
26selling price of sales tax holiday items.

 

 

HB1438 Enrolled- 513 -LRB101 04919 JRG 49928 b

1    Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund 16% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of tangible personal property.
5    Beginning August 1, 2000, each month the Department shall
6pay into the Local Government Tax Fund 80% of the net revenue
7realized for the preceding month from the 1.25% rate on the
8selling price of motor fuel and gasohol. Beginning September 1,
92010, each month the Department shall pay into the Local
10Government Tax Fund 80% of the net revenue realized for the
11preceding month from the 1.25% rate on the selling price of
12sales tax holiday items.
13    Beginning October 1, 2009, each month the Department shall
14pay into the Capital Projects Fund an amount that is equal to
15an amount estimated by the Department to represent 80% of the
16net revenue realized for the preceding month from the sale of
17candy, grooming and hygiene products, and soft drinks that had
18been taxed at a rate of 1% prior to September 1, 2009 but that
19are now taxed at 6.25%.
20    Beginning July 1, 2011, each month the Department shall pay
21into the Clean Air Act Permit Fund 80% of the net revenue
22realized for the preceding month from the 6.25% general rate on
23the selling price of sorbents used in Illinois in the process
24of sorbent injection as used to comply with the Environmental
25Protection Act or the federal Clean Air Act, but the total
26payment into the Clean Air Act Permit Fund under this Act and

 

 

HB1438 Enrolled- 514 -LRB101 04919 JRG 49928 b

1the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
2    Beginning July 1, 2013, each month the Department shall pay
3into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Use Tax Act, the Service Use Tax
5Act, and the Service Occupation Tax Act an amount equal to the
6average monthly deficit in the Underground Storage Tank Fund
7during the prior year, as certified annually by the Illinois
8Environmental Protection Agency, but the total payment into the
9Underground Storage Tank Fund under this Act, the Use Tax Act,
10the Service Use Tax Act, and the Service Occupation Tax Act
11shall not exceed $18,000,000 in any State fiscal year. As used
12in this paragraph, the "average monthly deficit" shall be equal
13to the difference between the average monthly claims for
14payment by the fund and the average monthly revenues deposited
15into the fund, excluding payments made pursuant to this
16paragraph.
17    Beginning July 1, 2015, of the remainder of the moneys
18received by the Department under the Use Tax Act, the Service
19Use Tax Act, the Service Occupation Tax Act, and this Act, each
20month the Department shall deposit $500,000 into the State
21Crime Laboratory Fund.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

 

 

HB1438 Enrolled- 515 -LRB101 04919 JRG 49928 b

1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to this Act,
4Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
5Act, and Section 9 of the Service Occupation Tax Act, such Acts
6being hereinafter called the "Tax Acts" and such aggregate of
72.2% or 3.8%, as the case may be, of moneys being hereinafter
8called the "Tax Act Amount", and (2) the amount transferred to
9the Build Illinois Fund from the State and Local Sales Tax
10Reform Fund shall be less than the Annual Specified Amount (as
11hereinafter defined), an amount equal to the difference shall
12be immediately paid into the Build Illinois Fund from other
13moneys received by the Department pursuant to the Tax Acts; the
14"Annual Specified Amount" means the amounts specified below for
15fiscal years 1986 through 1993:
16Fiscal YearAnnual Specified Amount
171986$54,800,000
181987$76,650,000
191988$80,480,000
201989$88,510,000
211990$115,330,000
221991$145,470,000
231992$182,730,000
241993$206,520,000;
25and means the Certified Annual Debt Service Requirement (as
26defined in Section 13 of the Build Illinois Bond Act) or the

 

 

HB1438 Enrolled- 516 -LRB101 04919 JRG 49928 b

1Tax Act Amount, whichever is greater, for fiscal year 1994 and
2each fiscal year thereafter; and further provided, that if on
3the last business day of any month the sum of (1) the Tax Act
4Amount required to be deposited into the Build Illinois Bond
5Account in the Build Illinois Fund during such month and (2)
6the amount transferred to the Build Illinois Fund from the
7State and Local Sales Tax Reform Fund shall have been less than
81/12 of the Annual Specified Amount, an amount equal to the
9difference shall be immediately paid into the Build Illinois
10Fund from other moneys received by the Department pursuant to
11the Tax Acts; and, further provided, that in no event shall the
12payments required under the preceding proviso result in
13aggregate payments into the Build Illinois Fund pursuant to
14this clause (b) for any fiscal year in excess of the greater of
15(i) the Tax Act Amount or (ii) the Annual Specified Amount for
16such fiscal year. The amounts payable into the Build Illinois
17Fund under clause (b) of the first sentence in this paragraph
18shall be payable only until such time as the aggregate amount
19on deposit under each trust indenture securing Bonds issued and
20outstanding pursuant to the Build Illinois Bond Act is
21sufficient, taking into account any future investment income,
22to fully provide, in accordance with such indenture, for the
23defeasance of or the payment of the principal of, premium, if
24any, and interest on the Bonds secured by such indenture and on
25any Bonds expected to be issued thereafter and all fees and
26costs payable with respect thereto, all as certified by the

 

 

HB1438 Enrolled- 517 -LRB101 04919 JRG 49928 b

1Director of the Bureau of the Budget (now Governor's Office of
2Management and Budget). If on the last business day of any
3month in which Bonds are outstanding pursuant to the Build
4Illinois Bond Act, the aggregate of moneys deposited in the
5Build Illinois Bond Account in the Build Illinois Fund in such
6month shall be less than the amount required to be transferred
7in such month from the Build Illinois Bond Account to the Build
8Illinois Bond Retirement and Interest Fund pursuant to Section
913 of the Build Illinois Bond Act, an amount equal to such
10deficiency shall be immediately paid from other moneys received
11by the Department pursuant to the Tax Acts to the Build
12Illinois Fund; provided, however, that any amounts paid to the
13Build Illinois Fund in any fiscal year pursuant to this
14sentence shall be deemed to constitute payments pursuant to
15clause (b) of the first sentence of this paragraph and shall
16reduce the amount otherwise payable for such fiscal year
17pursuant to that clause (b). The moneys received by the
18Department pursuant to this Act and required to be deposited
19into the Build Illinois Fund are subject to the pledge, claim
20and charge set forth in Section 12 of the Build Illinois Bond
21Act.
22    Subject to payment of amounts into the Build Illinois Fund
23as provided in the preceding paragraph or in any amendment
24thereto hereafter enacted, the following specified monthly
25installment of the amount requested in the certificate of the
26Chairman of the Metropolitan Pier and Exposition Authority

 

 

HB1438 Enrolled- 518 -LRB101 04919 JRG 49928 b

1provided under Section 8.25f of the State Finance Act, but not
2in excess of sums designated as "Total Deposit", shall be
3deposited in the aggregate from collections under Section 9 of
4the Use Tax Act, Section 9 of the Service Use Tax Act, Section
59 of the Service Occupation Tax Act, and Section 3 of the
6Retailers' Occupation Tax Act into the McCormick Place
7Expansion Project Fund in the specified fiscal years.
8Fiscal YearTotal Deposit
91993         $0
101994 53,000,000
111995 58,000,000
121996 61,000,000
131997 64,000,000
141998 68,000,000
151999 71,000,000
162000 75,000,000
172001 80,000,000
182002 93,000,000
192003 99,000,000
202004103,000,000
212005108,000,000
222006113,000,000
232007119,000,000
242008126,000,000
252009132,000,000

 

 

HB1438 Enrolled- 519 -LRB101 04919 JRG 49928 b

12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021246,000,000
132022260,000,000
142023275,000,000
152024 275,000,000
162025 275,000,000
172026 279,000,000
182027 292,000,000
192028 307,000,000
202029 322,000,000
212030 338,000,000
222031 350,000,000
232032 350,000,000
24and
25each fiscal year
26thereafter that bonds

 

 

HB1438 Enrolled- 520 -LRB101 04919 JRG 49928 b

1are outstanding under
2Section 13.2 of the
3Metropolitan Pier and
4Exposition Authority Act,
5but not after fiscal year 2060.
6    Beginning July 20, 1993 and in each month of each fiscal
7year thereafter, one-eighth of the amount requested in the
8certificate of the Chairman of the Metropolitan Pier and
9Exposition Authority for that fiscal year, less the amount
10deposited into the McCormick Place Expansion Project Fund by
11the State Treasurer in the respective month under subsection
12(g) of Section 13 of the Metropolitan Pier and Exposition
13Authority Act, plus cumulative deficiencies in the deposits
14required under this Section for previous months and years,
15shall be deposited into the McCormick Place Expansion Project
16Fund, until the full amount requested for the fiscal year, but
17not in excess of the amount specified above as "Total Deposit",
18has been deposited.
19    Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois Tax
24Increment Fund 0.27% of 80% of the net revenue realized for the
25preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

 

 

HB1438 Enrolled- 521 -LRB101 04919 JRG 49928 b

1    Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a 25-year
6period, the Department shall each month pay into the Energy
7Infrastructure Fund 80% of the net revenue realized from the
86.25% general rate on the selling price of Illinois-mined coal
9that was sold to an eligible business. For purposes of this
10paragraph, the term "eligible business" means a new electric
11generating facility certified pursuant to Section 605-332 of
12the Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14    Subject to payment of amounts into the Build Illinois Fund,
15the McCormick Place Expansion Project Fund, the Illinois Tax
16Increment Fund, and the Energy Infrastructure Fund pursuant to
17the preceding paragraphs or in any amendments to this Section
18hereafter enacted, beginning on the first day of the first
19calendar month to occur on or after August 26, 2014 (the
20effective date of Public Act 98-1098), each month, from the
21collections made under Section 9 of the Use Tax Act, Section 9
22of the Service Use Tax Act, Section 9 of the Service Occupation
23Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
24the Department shall pay into the Tax Compliance and
25Administration Fund, to be used, subject to appropriation, to
26fund additional auditors and compliance personnel at the

 

 

HB1438 Enrolled- 522 -LRB101 04919 JRG 49928 b

1Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2the cash receipts collected during the preceding fiscal year by
3the Audit Bureau of the Department under the Use Tax Act, the
4Service Use Tax Act, the Service Occupation Tax Act, the
5Retailers' Occupation Tax Act, and associated local occupation
6and use taxes administered by the Department.
7    Subject to payments of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
10Compliance and Administration Fund as provided in this Section,
11beginning on July 1, 2018 the Department shall pay each month
12into the Downstate Public Transportation Fund the moneys
13required to be so paid under Section 2-3 of the Downstate
14Public Transportation Act.
15    Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the State
17Treasury and 25% shall be reserved in a special account and
18used only for the transfer to the Common School Fund as part of
19the monthly transfer from the General Revenue Fund in
20accordance with Section 8a of the State Finance Act.
21    The Department may, upon separate written notice to a
22taxpayer, require the taxpayer to prepare and file with the
23Department on a form prescribed by the Department within not
24less than 60 days after receipt of the notice an annual
25information return for the tax year specified in the notice.
26Such annual return to the Department shall include a statement

 

 

HB1438 Enrolled- 523 -LRB101 04919 JRG 49928 b

1of gross receipts as shown by the retailer's last Federal
2income tax return. If the total receipts of the business as
3reported in the Federal income tax return do not agree with the
4gross receipts reported to the Department of Revenue for the
5same period, the retailer shall attach to his annual return a
6schedule showing a reconciliation of the 2 amounts and the
7reasons for the difference. The retailer's annual return to the
8Department shall also disclose the cost of goods sold by the
9retailer during the year covered by such return, opening and
10closing inventories of such goods for such year, costs of goods
11used from stock or taken from stock and given away by the
12retailer during such year, payroll information of the
13retailer's business during such year and any additional
14reasonable information which the Department deems would be
15helpful in determining the accuracy of the monthly, quarterly
16or annual returns filed by such retailer as provided for in
17this Section.
18    If the annual information return required by this Section
19is not filed when and as required, the taxpayer shall be liable
20as follows:
21        (i) Until January 1, 1994, the taxpayer shall be liable
22    for a penalty equal to 1/6 of 1% of the tax due from such
23    taxpayer under this Act during the period to be covered by
24    the annual return for each month or fraction of a month
25    until such return is filed as required, the penalty to be
26    assessed and collected in the same manner as any other

 

 

HB1438 Enrolled- 524 -LRB101 04919 JRG 49928 b

1    penalty provided for in this Act.
2        (ii) On and after January 1, 1994, the taxpayer shall
3    be liable for a penalty as described in Section 3-4 of the
4    Uniform Penalty and Interest Act.
5    The chief executive officer, proprietor, owner or highest
6ranking manager shall sign the annual return to certify the
7accuracy of the information contained therein. Any person who
8willfully signs the annual return containing false or
9inaccurate information shall be guilty of perjury and punished
10accordingly. The annual return form prescribed by the
11Department shall include a warning that the person signing the
12return may be liable for perjury.
13    The provisions of this Section concerning the filing of an
14annual information return do not apply to a retailer who is not
15required to file an income tax return with the United States
16Government.
17    As soon as possible after the first day of each month, upon
18certification of the Department of Revenue, the Comptroller
19shall order transferred and the Treasurer shall transfer from
20the General Revenue Fund to the Motor Fuel Tax Fund an amount
21equal to 1.7% of 80% of the net revenue realized under this Act
22for the second preceding month. Beginning April 1, 2000, this
23transfer is no longer required and shall not be made.
24    Net revenue realized for a month shall be the revenue
25collected by the State pursuant to this Act, less the amount
26paid out during that month as refunds to taxpayers for

 

 

HB1438 Enrolled- 525 -LRB101 04919 JRG 49928 b

1overpayment of liability.
2    For greater simplicity of administration, manufacturers,
3importers and wholesalers whose products are sold at retail in
4Illinois by numerous retailers, and who wish to do so, may
5assume the responsibility for accounting and paying to the
6Department all tax accruing under this Act with respect to such
7sales, if the retailers who are affected do not make written
8objection to the Department to this arrangement.
9    Any person who promotes, organizes, provides retail
10selling space for concessionaires or other types of sellers at
11the Illinois State Fair, DuQuoin State Fair, county fairs,
12local fairs, art shows, flea markets and similar exhibitions or
13events, including any transient merchant as defined by Section
142 of the Transient Merchant Act of 1987, is required to file a
15report with the Department providing the name of the merchant's
16business, the name of the person or persons engaged in
17merchant's business, the permanent address and Illinois
18Retailers Occupation Tax Registration Number of the merchant,
19the dates and location of the event and other reasonable
20information that the Department may require. The report must be
21filed not later than the 20th day of the month next following
22the month during which the event with retail sales was held.
23Any person who fails to file a report required by this Section
24commits a business offense and is subject to a fine not to
25exceed $250.
26    Any person engaged in the business of selling tangible

 

 

HB1438 Enrolled- 526 -LRB101 04919 JRG 49928 b

1personal property at retail as a concessionaire or other type
2of seller at the Illinois State Fair, county fairs, art shows,
3flea markets and similar exhibitions or events, or any
4transient merchants, as defined by Section 2 of the Transient
5Merchant Act of 1987, may be required to make a daily report of
6the amount of such sales to the Department and to make a daily
7payment of the full amount of tax due. The Department shall
8impose this requirement when it finds that there is a
9significant risk of loss of revenue to the State at such an
10exhibition or event. Such a finding shall be based on evidence
11that a substantial number of concessionaires or other sellers
12who are not residents of Illinois will be engaging in the
13business of selling tangible personal property at retail at the
14exhibition or event, or other evidence of a significant risk of
15loss of revenue to the State. The Department shall notify
16concessionaires and other sellers affected by the imposition of
17this requirement. In the absence of notification by the
18Department, the concessionaires and other sellers shall file
19their returns as otherwise required in this Section.
20(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2199-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
227-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
23    (35 ILCS 520/Act rep.)
24    Section 900-20. The Cannabis and Controlled Substances Tax
25Act is repealed.
 

 

 

HB1438 Enrolled- 527 -LRB101 04919 JRG 49928 b

1    Section 900-22. The Illinois Police Training Act is amended
2by changing Sections 9 and 10.12 as follows:
 
3    (50 ILCS 705/9)  (from Ch. 85, par. 509)
4    (Text of Section before amendment by P.A. 100-987)
5    Sec. 9. A special fund is hereby established in the State
6Treasury to be known as the Traffic and Criminal Conviction
7Surcharge Fund and shall be financed as provided in Section 9.1
8of this Act and Section 5-9-1 of the Unified Code of
9Corrections, unless the fines, costs, or additional amounts
10imposed are subject to disbursement by the circuit clerk under
11Section 27.5 of the Clerks of Courts Act. Moneys in this Fund
12shall be expended as follows:
13        (1) a portion of the total amount deposited in the Fund
14    may be used, as appropriated by the General Assembly, for
15    the ordinary and contingent expenses of the Illinois Law
16    Enforcement Training Standards Board;
17        (2) a portion of the total amount deposited in the Fund
18    shall be appropriated for the reimbursement of local
19    governmental agencies participating in training programs
20    certified by the Board, in an amount equaling 1/2 of the
21    total sum paid by such agencies during the State's previous
22    fiscal year for mandated training for probationary police
23    officers or probationary county corrections officers and
24    for optional advanced and specialized law enforcement or

 

 

HB1438 Enrolled- 528 -LRB101 04919 JRG 49928 b

1    county corrections training; these reimbursements may
2    include the costs for tuition at training schools, the
3    salaries of trainees while in schools, and the necessary
4    travel and room and board expenses for each trainee; if the
5    appropriations under this paragraph (2) are not sufficient
6    to fully reimburse the participating local governmental
7    agencies, the available funds shall be apportioned among
8    such agencies, with priority first given to repayment of
9    the costs of mandatory training given to law enforcement
10    officer or county corrections officer recruits, then to
11    repayment of costs of advanced or specialized training for
12    permanent police officers or permanent county corrections
13    officers;
14        (3) a portion of the total amount deposited in the Fund
15    may be used to fund the Intergovernmental Law Enforcement
16    Officer's In-Service Training Act, veto overridden October
17    29, 1981, as now or hereafter amended, at a rate and method
18    to be determined by the board;
19        (4) a portion of the Fund also may be used by the
20    Illinois Department of State Police for expenses incurred
21    in the training of employees from any State, county or
22    municipal agency whose function includes enforcement of
23    criminal or traffic law;
24        (5) a portion of the Fund may be used by the Board to
25    fund grant-in-aid programs and services for the training of
26    employees from any county or municipal agency whose

 

 

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1    functions include corrections or the enforcement of
2    criminal or traffic law;
3        (6) for fiscal years 2013 through 2017 only, a portion
4    of the Fund also may be used by the Department of State
5    Police to finance any of its lawful purposes or functions;
6    and
7        (7) a portion of the Fund may be used by the Board,
8    subject to appropriation, to administer grants to local law
9    enforcement agencies for the purpose of purchasing
10    bulletproof vests under the Law Enforcement Officer
11    Bulletproof Vest Act; and .
12        (8) a portion of the Fund may be used by the Board to
13    create a law enforcement grant program available for units
14    of local government to fund crime prevention programs,
15    training, and interdiction efforts, including enforcement
16    and prevention efforts, relating to the illegal cannabis
17    market and driving under the influence of cannabis.
18    All payments from the Traffic and Criminal Conviction
19Surcharge Fund shall be made each year from moneys appropriated
20for the purposes specified in this Section. No more than 50% of
21any appropriation under this Act shall be spent in any city
22having a population of more than 500,000. The State Comptroller
23and the State Treasurer shall from time to time, at the
24direction of the Governor, transfer from the Traffic and
25Criminal Conviction Surcharge Fund to the General Revenue Fund
26in the State Treasury such amounts as the Governor determines

 

 

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1are in excess of the amounts required to meet the obligations
2of the Traffic and Criminal Conviction Surcharge Fund.
3(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
498-743, eff. 1-1-15; 99-78, eff. 7-20-15; 99-523, eff.
56-30-16.)
 
6    (Text of Section after amendment by P.A. 100-987)
7    Sec. 9. A special fund is hereby established in the State
8Treasury to be known as the Traffic and Criminal Conviction
9Surcharge Fund. Moneys in this Fund shall be expended as
10follows:
11        (1) a portion of the total amount deposited in the Fund
12    may be used, as appropriated by the General Assembly, for
13    the ordinary and contingent expenses of the Illinois Law
14    Enforcement Training Standards Board;
15        (2) a portion of the total amount deposited in the Fund
16    shall be appropriated for the reimbursement of local
17    governmental agencies participating in training programs
18    certified by the Board, in an amount equaling 1/2 of the
19    total sum paid by such agencies during the State's previous
20    fiscal year for mandated training for probationary police
21    officers or probationary county corrections officers and
22    for optional advanced and specialized law enforcement or
23    county corrections training; these reimbursements may
24    include the costs for tuition at training schools, the
25    salaries of trainees while in schools, and the necessary

 

 

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1    travel and room and board expenses for each trainee; if the
2    appropriations under this paragraph (2) are not sufficient
3    to fully reimburse the participating local governmental
4    agencies, the available funds shall be apportioned among
5    such agencies, with priority first given to repayment of
6    the costs of mandatory training given to law enforcement
7    officer or county corrections officer recruits, then to
8    repayment of costs of advanced or specialized training for
9    permanent police officers or permanent county corrections
10    officers;
11        (3) a portion of the total amount deposited in the Fund
12    may be used to fund the Intergovernmental Law Enforcement
13    Officer's In-Service Training Act, veto overridden October
14    29, 1981, as now or hereafter amended, at a rate and method
15    to be determined by the board;
16        (4) a portion of the Fund also may be used by the
17    Illinois Department of State Police for expenses incurred
18    in the training of employees from any State, county or
19    municipal agency whose function includes enforcement of
20    criminal or traffic law;
21        (5) a portion of the Fund may be used by the Board to
22    fund grant-in-aid programs and services for the training of
23    employees from any county or municipal agency whose
24    functions include corrections or the enforcement of
25    criminal or traffic law;
26        (6) for fiscal years 2013 through 2017 only, a portion

 

 

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1    of the Fund also may be used by the Department of State
2    Police to finance any of its lawful purposes or functions;
3    and
4        (7) a portion of the Fund may be used by the Board,
5    subject to appropriation, to administer grants to local law
6    enforcement agencies for the purpose of purchasing
7    bulletproof vests under the Law Enforcement Officer
8    Bulletproof Vest Act; and .
9        (8) a portion of the Fund may be used by the Board to
10    create a law enforcement grant program available for units
11    of local government to fund crime prevention programs,
12    training, and interdiction efforts, including enforcement
13    and prevention efforts, relating to the illegal cannabis
14    market and driving under the influence of cannabis.
15    All payments from the Traffic and Criminal Conviction
16Surcharge Fund shall be made each year from moneys appropriated
17for the purposes specified in this Section. No more than 50% of
18any appropriation under this Act shall be spent in any city
19having a population of more than 500,000. The State Comptroller
20and the State Treasurer shall from time to time, at the
21direction of the Governor, transfer from the Traffic and
22Criminal Conviction Surcharge Fund to the General Revenue Fund
23in the State Treasury such amounts as the Governor determines
24are in excess of the amounts required to meet the obligations
25of the Traffic and Criminal Conviction Surcharge Fund.
26(Source: P.A. 99-78, eff. 7-20-15; 99-523, eff. 6-30-16;

 

 

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1100-987, eff. 7-1-19.)
 
2    (50 ILCS 705/10.12)
3    Sec. 10.12. Police dog training standards. All Beginning
4July 1, 2012, all police dogs used by State and local law
5enforcement agencies for drug enforcement purposes pursuant to
6the Cannabis Control Act (720 ILCS 550/), the Illinois
7Controlled Substances Act (720 ILCS 570/), or and the
8Methamphetamine Control and Community Protection Act (720 ILCS
9646/) shall be trained by programs that meet the minimum
10certification requirements set by the Board.
11(Source: P.A. 97-469, eff. 7-1-12.)
 
12    Section 900-25. The Counties Code is amended by adding
13Section 5-1006.8 and changing Section 5-1009 as follows:
 
14    (55 ILCS 5/5-1006.8 new)
15    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
16Law.
17    (a) This Section may be referred to as the County Cannabis
18Retailers' Occupation Tax Law. On and after January 1, 2020,
19the corporate authorities of any county may, by ordinance,
20impose a tax upon all persons engaged in the business of
21selling cannabis, other than cannabis purchased under the
22Compassionate Use of Medical Cannabis Pilot Program Act, at
23retail in the county on the gross receipts from these sales

 

 

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1made in the course of that business. If imposed, the tax shall
2be imposed only in 0.25% increments. The tax rate may not
3exceed: (i) 3.75% of the gross receipts of sales made in
4unincorporated areas of the county and (ii) 0.75% of the gross
5receipts of sales made in a municipality located in a non-home
6rule county; and (iii) 3% of gross sales receipts made in a
7municipality located in a home rule county. The tax imposed
8under this Section and all civil penalties that may be assessed
9as an incident of the tax shall be collected and enforced by
10the Department of Revenue. The Department of Revenue shall have
11full power to administer and enforce this Section; to collect
12all taxes and penalties due hereunder; to dispose of taxes and
13penalties so collected in the manner hereinafter provided; and
14to determine all rights to credit memoranda arising on account
15of the erroneous payment of tax or penalty under this Section.
16In the administration of and compliance with this Section, the
17Department of Revenue and persons who are subject to this
18Section shall have the same rights, remedies, privileges,
19immunities, powers and duties, and be subject to the same
20conditions, restrictions, limitations, penalties, and
21definitions of terms, and employ the same modes of procedure,
22as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
231n, 2 through 2-65 (in respect to all provisions therein other
24than the State rate of tax), 2c, 3 (except as to the
25disposition of taxes and penalties collected), 4, 5, 5a, 5b,
265c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 8,

 

 

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18, 9, 10, 11, 12, and 13 of the Retailers' Occupation Tax Act
2and Section 3-7 of the Uniform Penalty and Interest Act as
3fully as if those provisions were set forth in this Section.
4    (b) Persons subject to any tax imposed under the authority
5granted in this Section may reimburse themselves for their
6seller's tax liability hereunder by separately stating that tax
7as an additional charge, which charge may be stated in
8combination, in a single amount, with any State tax that
9sellers are required to collect.
10    (c) Whenever the Department of Revenue determines that a
11refund should be made under this Section to a claimant instead
12of issuing a credit memorandum, the Department of Revenue shall
13notify the State Comptroller, who shall cause the order to be
14drawn for the amount specified and to the person named in the
15notification from the Department of Revenue.
16    (d) The Department of Revenue shall immediately pay over to
17the State Treasurer, ex officio, as trustee, all taxes and
18penalties collected hereunder for deposit into the Local
19Cannabis Consumer Excise Tax Trust Fund.
20    (e) On or before the 25th day of each calendar month, the
21Department of Revenue shall prepare and certify to the
22Comptroller the amount of money to be disbursed from the Local
23Cannabis Consumer Excise Tax Trust Fund to counties from which
24retailers have paid taxes or penalties under this Section
25during the second preceding calendar month. The amount to be
26paid to each county shall be the amount (not including credit

 

 

HB1438 Enrolled- 536 -LRB101 04919 JRG 49928 b

1memoranda) collected under this Section from sales made in the
2county during the second preceding calendar month, plus an
3amount the Department of Revenue determines is necessary to
4offset any amounts that were erroneously paid to a different
5taxing body, and not including an amount equal to the amount of
6refunds made during the second preceding calendar month by the
7Department on behalf of such county, and not including any
8amount that the Department determines is necessary to offset
9any amounts that were payable to a different taxing body but
10were erroneously paid to the county, less 1.5% of the
11remainder, which the Department shall transfer into the Tax
12Compliance and Administration Fund. The Department, at the time
13of each monthly disbursement to the counties, shall prepare and
14certify the State Comptroller the amount to be transferred into
15the Tax Compliance and Administration Fund under this Section.
16Within 10 days after receipt by the Comptroller of the
17disbursement certification to the counties and the Tax
18Compliance and Administration Fund provided for in this Section
19to be given to the Comptroller by the Department, the
20Comptroller shall cause the orders to be drawn for the
21respective amounts in accordance with the directions contained
22in the certification.
23    (f) An ordinance or resolution imposing or discontinuing a
24tax under this Section or effecting a change in the rate
25thereof shall be adopted and a certified copy thereof filed
26with the Department on or before the first day of June,

 

 

HB1438 Enrolled- 537 -LRB101 04919 JRG 49928 b

1whereupon the Department shall proceed to administer and
2enforce this Section as of the first day of September next
3following the adoption and filing.
 
4    (55 ILCS 5/5-1009)  (from Ch. 34, par. 5-1009)
5    Sec. 5-1009. Limitation on home rule powers. Except as
6provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007 and
75-1008, on and after September 1, 1990, no home rule county has
8the authority to impose, pursuant to its home rule authority, a
9retailer's occupation tax, service occupation tax, use tax,
10sales tax or other tax on the use, sale or purchase of tangible
11personal property based on the gross receipts from such sales
12or the selling or purchase price of said tangible personal
13property. Notwithstanding the foregoing, this Section does not
14preempt any home rule imposed tax such as the following: (1) a
15tax on alcoholic beverages, whether based on gross receipts,
16volume sold or any other measurement; (2) a tax based on the
17number of units of cigarettes or tobacco products; (3) a tax,
18however measured, based on the use of a hotel or motel room or
19similar facility; (4) a tax, however measured, on the sale or
20transfer of real property; (5) a tax, however measured, on
21lease receipts; (6) a tax on food prepared for immediate
22consumption and on alcoholic beverages sold by a business which
23provides for on premise consumption of said food or alcoholic
24beverages; or (7) other taxes not based on the selling or
25purchase price or gross receipts from the use, sale or purchase

 

 

HB1438 Enrolled- 538 -LRB101 04919 JRG 49928 b

1of tangible personal property. This Section does not preempt a
2home rule county from imposing a tax, however measured, on the
3use, for consideration, of a parking lot, garage, or other
4parking facility. This Section is a limitation, pursuant to
5subsection (g) of Section 6 of Article VII of the Illinois
6Constitution, on the power of home rule units to tax.
7(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
8    Section 900-30. The Illinois Municipal Code is amended by
9changing Section 8-11-6a and adding Section 8-11-22 as follows:
 
10    (65 ILCS 5/8-11-6a)  (from Ch. 24, par. 8-11-6a)
11    Sec. 8-11-6a. Home rule municipalities; preemption of
12certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
138-11-6, 8-11-6b, 8-11-6c, 8-11-22, and 11-74.3-6 on and after
14September 1, 1990, no home rule municipality has the authority
15to impose, pursuant to its home rule authority, a retailer's
16occupation tax, service occupation tax, use tax, sales tax or
17other tax on the use, sale or purchase of tangible personal
18property based on the gross receipts from such sales or the
19selling or purchase price of said tangible personal property.
20Notwithstanding the foregoing, this Section does not preempt
21any home rule imposed tax such as the following: (1) a tax on
22alcoholic beverages, whether based on gross receipts, volume
23sold or any other measurement; (2) a tax based on the number of
24units of cigarettes or tobacco products (provided, however,

 

 

HB1438 Enrolled- 539 -LRB101 04919 JRG 49928 b

1that a home rule municipality that has not imposed a tax based
2on the number of units of cigarettes or tobacco products before
3July 1, 1993, shall not impose such a tax after that date); (3)
4a tax, however measured, based on the use of a hotel or motel
5room or similar facility; (4) a tax, however measured, on the
6sale or transfer of real property; (5) a tax, however measured,
7on lease receipts; (6) a tax on food prepared for immediate
8consumption and on alcoholic beverages sold by a business which
9provides for on premise consumption of said food or alcoholic
10beverages; or (7) other taxes not based on the selling or
11purchase price or gross receipts from the use, sale or purchase
12of tangible personal property. This Section does not preempt a
13home rule municipality with a population of more than 2,000,000
14from imposing a tax, however measured, on the use, for
15consideration, of a parking lot, garage, or other parking
16facility. This Section is not intended to affect any existing
17tax on food and beverages prepared for immediate consumption on
18the premises where the sale occurs, or any existing tax on
19alcoholic beverages, or any existing tax imposed on the charge
20for renting a hotel or motel room, which was in effect January
2115, 1988, or any extension of the effective date of such an
22existing tax by ordinance of the municipality imposing the tax,
23which extension is hereby authorized, in any non-home rule
24municipality in which the imposition of such a tax has been
25upheld by judicial determination, nor is this Section intended
26to preempt the authority granted by Public Act 85-1006. This

 

 

HB1438 Enrolled- 540 -LRB101 04919 JRG 49928 b

1Section is a limitation, pursuant to subsection (g) of Section
26 of Article VII of the Illinois Constitution, on the power of
3home rule units to tax.
4(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
5    (65 ILCS 5/8-11-22 new)
6    Sec. 8-11-22. Municipal Cannabis Retailers' Occupation Tax
7Law.
8    (a) This Section may be referred to as the Municipal
9Cannabis Retailers' Occupation Tax Law. On and after January 1,
102020, the corporate authorities of any municipality may, by
11ordinance, impose a tax upon all persons engaged in the
12business of selling cannabis, other than cannabis purchased
13under the Compassionate Use of Medical Cannabis Pilot Program
14Act, at retail in the municipality on the gross receipts from
15these sales made in the course of that business. If imposed,
16the tax may not exceed 3% of the gross receipts from these
17sales and shall only be imposed in 1/4% increments. The tax
18imposed under this Section and all civil penalties that may be
19assessed as an incident of the tax shall be collected and
20enforced by the Department of Revenue. The Department of
21Revenue shall have full power to administer and enforce this
22Section; to collect all taxes and penalties due hereunder; to
23dispose of taxes and penalties so collected in the manner
24hereinafter provided; and to determine all rights to credit
25memoranda arising on account of the erroneous payment of tax or

 

 

HB1438 Enrolled- 541 -LRB101 04919 JRG 49928 b

1penalty under this Section. In the administration of and
2compliance with this Section, the Department and persons who
3are subject to this Section shall have the same rights,
4remedies, privileges, immunities, powers and duties, and be
5subject to the same conditions, restrictions, limitations,
6penalties and definitions of terms, and employ the same modes
7of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
81i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
9provisions therein other than the State rate of tax), 2c, 3
10(except as to the disposition of taxes and penalties
11collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
125l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
13Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14Penalty and Interest Act, as fully as if those provisions were
15set forth herein.
16    (b) Persons subject to any tax imposed under the authority
17granted in this Section may reimburse themselves for their
18seller's tax liability hereunder by separately stating that tax
19as an additional charge, which charge may be stated in
20combination, in a single amount, with any State tax that
21sellers are required to collect.
22    (c) Whenever the Department of Revenue determines that a
23refund should be made under this Section to a claimant instead
24of issuing a credit memorandum, the Department of Revenue shall
25notify the State Comptroller, who shall cause the order to be
26drawn for the amount specified and to the person named in the

 

 

HB1438 Enrolled- 542 -LRB101 04919 JRG 49928 b

1notification from the Department of Revenue.
2    (d) The Department of Revenue shall immediately pay over to
3the State Treasurer, ex officio, as trustee, all taxes and
4penalties collected hereunder for deposit into the Cannabis
5Regulation Fund.
6    (e) On or before the 25th day of each calendar month, the
7Department of Revenue shall prepare and certify to the
8Comptroller the amount of money to be disbursed from the Local
9Cannabis Consumer Excise Tax Trust Fund to municipalities from
10which retailers have paid taxes or penalties under this Section
11during the second preceding calendar month. The amount to be
12paid to each municipality shall be the amount (not including
13credit memoranda) collected under this Section from sales made
14in the municipality during the second preceding calendar month,
15plus an amount the Department of Revenue determines is
16necessary to offset any amounts that were erroneously paid to a
17different taxing body, and not including an amount equal to the
18amount of refunds made during the second preceding calendar
19month by the Department on behalf of such municipality, and not
20including any amount that the Department determines is
21necessary to offset any amounts that were payable to a
22different taxing body but were erroneously paid to the
23municipality, less 1.5% of the remainder, which the Department
24shall transfer into the Tax Compliance and Administration Fund.
25The Department, at the time of each monthly disbursement to the
26municipalities, shall prepare and certify to the State

 

 

HB1438 Enrolled- 543 -LRB101 04919 JRG 49928 b

1Comptroller the amount to be transferred into the Tax
2Compliance and Administration Fund under this Section. Within
310 days after receipt by the Comptroller of the disbursement
4certification to the municipalities and the Tax Compliance and
5Administration Fund provided for in this Section to be given to
6the Comptroller by the Department, the Comptroller shall cause
7the orders to be drawn for the respective amounts in accordance
8with the directions contained in the certification.
9    (f) An ordinance or resolution imposing or discontinuing a
10tax under this Section or effecting a change in the rate
11thereof shall be adopted and a certified copy thereof filed
12with the Department on or before the first day of June,
13whereupon the Department shall proceed to administer and
14enforce this Section as of the first day of September next
15following the adoption and filing.
 
16    Section 900-32. The Illinois Banking Act is amended by
17changing Section 48 as follows:
 
18    (205 ILCS 5/48)
19    Sec. 48. Secretary's powers; duties. The Secretary shall
20have the powers and authority, and is charged with the duties
21and responsibilities designated in this Act, and a State bank
22shall not be subject to any other visitorial power other than
23as authorized by this Act, except those vested in the courts,
24or upon prior consultation with the Secretary, a foreign bank

 

 

HB1438 Enrolled- 544 -LRB101 04919 JRG 49928 b

1regulator with an appropriate supervisory interest in the
2parent or affiliate of a state bank. In the performance of the
3Secretary's duties:
4        (1) The Commissioner shall call for statements from all
5    State banks as provided in Section 47 at least one time
6    during each calendar quarter.
7        (2) (a) The Commissioner, as often as the Commissioner
8    shall deem necessary or proper, and no less frequently than
9    18 months following the preceding examination, shall
10    appoint a suitable person or persons to make an examination
11    of the affairs of every State bank, except that for every
12    eligible State bank, as defined by regulation, the
13    Commissioner in lieu of the examination may accept on an
14    alternating basis the examination made by the eligible
15    State bank's appropriate federal banking agency pursuant
16    to Section 111 of the Federal Deposit Insurance Corporation
17    Improvement Act of 1991, provided the appropriate federal
18    banking agency has made such an examination. A person so
19    appointed shall not be a stockholder or officer or employee
20    of any bank which that person may be directed to examine,
21    and shall have powers to make a thorough examination into
22    all the affairs of the bank and in so doing to examine any
23    of the officers or agents or employees thereof on oath and
24    shall make a full and detailed report of the condition of
25    the bank to the Commissioner. In making the examination the
26    examiners shall include an examination of the affairs of

 

 

HB1438 Enrolled- 545 -LRB101 04919 JRG 49928 b

1    all the affiliates of the bank, as defined in subsection
2    (b) of Section 35.2 of this Act, or subsidiaries of the
3    bank as shall be necessary to disclose fully the conditions
4    of the subsidiaries or affiliates, the relations between
5    the bank and the subsidiaries or affiliates and the effect
6    of those relations upon the affairs of the bank, and in
7    connection therewith shall have power to examine any of the
8    officers, directors, agents, or employees of the
9    subsidiaries or affiliates on oath. After May 31, 1997, the
10    Commissioner may enter into cooperative agreements with
11    state regulatory authorities of other states to provide for
12    examination of State bank branches in those states, and the
13    Commissioner may accept reports of examinations of State
14    bank branches from those state regulatory authorities.
15    These cooperative agreements may set forth the manner in
16    which the other state regulatory authorities may be
17    compensated for examinations prepared for and submitted to
18    the Commissioner.
19        (b) After May 31, 1997, the Commissioner is authorized
20    to examine, as often as the Commissioner shall deem
21    necessary or proper, branches of out-of-state banks. The
22    Commissioner may establish and may assess fees to be paid
23    to the Commissioner for examinations under this subsection
24    (b). The fees shall be borne by the out-of-state bank,
25    unless the fees are borne by the state regulatory authority
26    that chartered the out-of-state bank, as determined by a

 

 

HB1438 Enrolled- 546 -LRB101 04919 JRG 49928 b

1    cooperative agreement between the Commissioner and the
2    state regulatory authority that chartered the out-of-state
3    bank.
4        (2.1) Pursuant to paragraph (a) of subsection (6) of
5    this Section, the Secretary shall adopt rules that ensure
6    consistency and due process in the examination process. The
7    Secretary may also establish guidelines that (i) define the
8    scope of the examination process and (ii) clarify
9    examination items to be resolved. The rules, formal
10    guidance, interpretive letters, or opinions furnished to
11    State banks by the Secretary may be relied upon by the
12    State banks.
13        (2.5) Whenever any State bank, any subsidiary or
14    affiliate of a State bank, or after May 31, 1997, any
15    branch of an out-of-state bank causes to be performed, by
16    contract or otherwise, any bank services for itself,
17    whether on or off its premises:
18            (a) that performance shall be subject to
19        examination by the Commissioner to the same extent as
20        if services were being performed by the bank or, after
21        May 31, 1997, branch of the out-of-state bank itself on
22        its own premises; and
23            (b) the bank or, after May 31, 1997, branch of the
24        out-of-state bank shall notify the Commissioner of the
25        existence of a service relationship. The notification
26        shall be submitted with the first statement of

 

 

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1        condition (as required by Section 47 of this Act) due
2        after the making of the service contract or the
3        performance of the service, whichever occurs first.
4        The Commissioner shall be notified of each subsequent
5        contract in the same manner.
6        For purposes of this subsection (2.5), the term "bank
7    services" means services such as sorting and posting of
8    checks and deposits, computation and posting of interest
9    and other credits and charges, preparation and mailing of
10    checks, statements, notices, and similar items, or any
11    other clerical, bookkeeping, accounting, statistical, or
12    similar functions performed for a State bank, including but
13    not limited to electronic data processing related to those
14    bank services.
15        (3) The expense of administering this Act, including
16    the expense of the examinations of State banks as provided
17    in this Act, shall to the extent of the amounts resulting
18    from the fees provided for in paragraphs (a), (a-2), and
19    (b) of this subsection (3) be assessed against and borne by
20    the State banks:
21            (a) Each bank shall pay to the Secretary a Call
22        Report Fee which shall be paid in quarterly
23        installments equal to one-fourth of the sum of the
24        annual fixed fee of $800, plus a variable fee based on
25        the assets shown on the quarterly statement of
26        condition delivered to the Secretary in accordance

 

 

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1        with Section 47 for the preceding quarter according to
2        the following schedule: 16¢ per $1,000 of the first
3        $5,000,000 of total assets, 15¢ per $1,000 of the next
4        $20,000,000 of total assets, 13¢ per $1,000 of the next
5        $75,000,000 of total assets, 9¢ per $1,000 of the next
6        $400,000,000 of total assets, 7¢ per $1,000 of the next
7        $500,000,000 of total assets, and 5¢ per $1,000 of all
8        assets in excess of $1,000,000,000, of the State bank.
9        The Call Report Fee shall be calculated by the
10        Secretary and billed to the banks for remittance at the
11        time of the quarterly statements of condition provided
12        for in Section 47. The Secretary may require payment of
13        the fees provided in this Section by an electronic
14        transfer of funds or an automatic debit of an account
15        of each of the State banks. In case more than one
16        examination of any bank is deemed by the Secretary to
17        be necessary in any examination frequency cycle
18        specified in subsection 2(a) of this Section, and is
19        performed at his direction, the Secretary may assess a
20        reasonable additional fee to recover the cost of the
21        additional examination. In lieu of the method and
22        amounts set forth in this paragraph (a) for the
23        calculation of the Call Report Fee, the Secretary may
24        specify by rule that the Call Report Fees provided by
25        this Section may be assessed semiannually or some other
26        period and may provide in the rule the formula to be

 

 

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1        used for calculating and assessing the periodic Call
2        Report Fees to be paid by State banks.
3            (a-1) If in the opinion of the Commissioner an
4        emergency exists or appears likely, the Commissioner
5        may assign an examiner or examiners to monitor the
6        affairs of a State bank with whatever frequency he
7        deems appropriate, including but not limited to a daily
8        basis. The reasonable and necessary expenses of the
9        Commissioner during the period of the monitoring shall
10        be borne by the subject bank. The Commissioner shall
11        furnish the State bank a statement of time and expenses
12        if requested to do so within 30 days of the conclusion
13        of the monitoring period.
14            (a-2) On and after January 1, 1990, the reasonable
15        and necessary expenses of the Commissioner during
16        examination of the performance of electronic data
17        processing services under subsection (2.5) shall be
18        borne by the banks for which the services are provided.
19        An amount, based upon a fee structure prescribed by the
20        Commissioner, shall be paid by the banks or, after May
21        31, 1997, branches of out-of-state banks receiving the
22        electronic data processing services along with the
23        Call Report Fee assessed under paragraph (a) of this
24        subsection (3).
25            (a-3) After May 31, 1997, the reasonable and
26        necessary expenses of the Commissioner during

 

 

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1        examination of the performance of electronic data
2        processing services under subsection (2.5) at or on
3        behalf of branches of out-of-state banks shall be borne
4        by the out-of-state banks, unless those expenses are
5        borne by the state regulatory authorities that
6        chartered the out-of-state banks, as determined by
7        cooperative agreements between the Commissioner and
8        the state regulatory authorities that chartered the
9        out-of-state banks.
10            (b) "Fiscal year" for purposes of this Section 48
11        is defined as a period beginning July 1 of any year and
12        ending June 30 of the next year. The Commissioner shall
13        receive for each fiscal year, commencing with the
14        fiscal year ending June 30, 1987, a contingent fee
15        equal to the lesser of the aggregate of the fees paid
16        by all State banks under paragraph (a) of subsection
17        (3) for that year, or the amount, if any, whereby the
18        aggregate of the administration expenses, as defined
19        in paragraph (c), for that fiscal year exceeds the sum
20        of the aggregate of the fees payable by all State banks
21        for that year under paragraph (a) of subsection (3),
22        plus any amounts transferred into the Bank and Trust
23        Company Fund from the State Pensions Fund for that
24        year, plus all other amounts collected by the
25        Commissioner for that year under any other provision of
26        this Act, plus the aggregate of all fees collected for

 

 

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1        that year by the Commissioner under the Corporate
2        Fiduciary Act, excluding the receivership fees
3        provided for in Section 5-10 of the Corporate Fiduciary
4        Act, and the Foreign Banking Office Act. The aggregate
5        amount of the contingent fee thus arrived at for any
6        fiscal year shall be apportioned amongst, assessed
7        upon, and paid by the State banks and foreign banking
8        corporations, respectively, in the same proportion
9        that the fee of each under paragraph (a) of subsection
10        (3), respectively, for that year bears to the aggregate
11        for that year of the fees collected under paragraph (a)
12        of subsection (3). The aggregate amount of the
13        contingent fee, and the portion thereof to be assessed
14        upon each State bank and foreign banking corporation,
15        respectively, shall be determined by the Commissioner
16        and shall be paid by each, respectively, within 120
17        days of the close of the period for which the
18        contingent fee is computed and is payable, and the
19        Commissioner shall give 20 days' advance notice of the
20        amount of the contingent fee payable by the State bank
21        and of the date fixed by the Commissioner for payment
22        of the fee.
23            (c) The "administration expenses" for any fiscal
24        year shall mean the ordinary and contingent expenses
25        for that year incident to making the examinations
26        provided for by, and for otherwise administering, this

 

 

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1        Act, the Corporate Fiduciary Act, excluding the
2        expenses paid from the Corporate Fiduciary
3        Receivership account in the Bank and Trust Company
4        Fund, the Foreign Banking Office Act, the Electronic
5        Fund Transfer Act, and the Illinois Bank Examiners'
6        Education Foundation Act, including all salaries and
7        other compensation paid for personal services rendered
8        for the State by officers or employees of the State,
9        including the Commissioner and the Deputy
10        Commissioners, communication equipment and services,
11        office furnishings, surety bond premiums, and travel
12        expenses of those officers and employees, employees,
13        expenditures or charges for the acquisition,
14        enlargement or improvement of, or for the use of, any
15        office space, building, or structure, or expenditures
16        for the maintenance thereof or for furnishing heat,
17        light, or power with respect thereto, all to the extent
18        that those expenditures are directly incidental to
19        such examinations or administration. The Commissioner
20        shall not be required by paragraphs (c) or (d-1) of
21        this subsection (3) to maintain in any fiscal year's
22        budget appropriated reserves for accrued vacation and
23        accrued sick leave that is required to be paid to
24        employees of the Commissioner upon termination of
25        their service with the Commissioner in an amount that
26        is more than is reasonably anticipated to be necessary

 

 

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1        for any anticipated turnover in employees, whether due
2        to normal attrition or due to layoffs, terminations, or
3        resignations.
4            (d) The aggregate of all fees collected by the
5        Secretary under this Act, the Corporate Fiduciary Act,
6        or the Foreign Banking Office Act on and after July 1,
7        1979, shall be paid promptly after receipt of the same,
8        accompanied by a detailed statement thereof, into the
9        State treasury and shall be set apart in a special fund
10        to be known as the "Bank and Trust Company Fund",
11        except as provided in paragraph (c) of subsection (11)
12        of this Section. All earnings received from
13        investments of funds in the Bank and Trust Company Fund
14        shall be deposited in the Bank and Trust Company Fund
15        and may be used for the same purposes as fees deposited
16        in that Fund. The amount from time to time deposited
17        into the Bank and Trust Company Fund shall be used: (i)
18        to offset the ordinary administrative expenses of the
19        Secretary as defined in this Section or (ii) as a
20        credit against fees under paragraph (d-1) of this
21        subsection (3). Nothing in this amendatory Act of 1979
22        shall prevent continuing the practice of paying
23        expenses involving salaries, retirement, social
24        security, and State-paid insurance premiums of State
25        officers by appropriations from the General Revenue
26        Fund. However, the General Revenue Fund shall be

 

 

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1        reimbursed for those payments made on and after July 1,
2        1979, by an annual transfer of funds from the Bank and
3        Trust Company Fund. Moneys in the Bank and Trust
4        Company Fund may be transferred to the Professions
5        Indirect Cost Fund, as authorized under Section
6        2105-300 of the Department of Professional Regulation
7        Law of the Civil Administrative Code of Illinois.
8            Notwithstanding provisions in the State Finance
9        Act, as now or hereafter amended, or any other law to
10        the contrary, the sum of $18,788,847 shall be
11        transferred from the Bank and Trust Company Fund to the
12        Financial Institutions Settlement of 2008 Fund on the
13        effective date of this amendatory Act of the 95th
14        General Assembly, or as soon thereafter as practical.
15            Notwithstanding provisions in the State Finance
16        Act, as now or hereafter amended, or any other law to
17        the contrary, the Governor may, during any fiscal year
18        through January 10, 2011, from time to time direct the
19        State Treasurer and Comptroller to transfer a
20        specified sum not exceeding 10% of the revenues to be
21        deposited into the Bank and Trust Company Fund during
22        that fiscal year from that Fund to the General Revenue
23        Fund in order to help defray the State's operating
24        costs for the fiscal year. Notwithstanding provisions
25        in the State Finance Act, as now or hereafter amended,
26        or any other law to the contrary, the total sum

 

 

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1        transferred during any fiscal year through January 10,
2        2011, from the Bank and Trust Company Fund to the
3        General Revenue Fund pursuant to this provision shall
4        not exceed during any fiscal year 10% of the revenues
5        to be deposited into the Bank and Trust Company Fund
6        during that fiscal year. The State Treasurer and
7        Comptroller shall transfer the amounts designated
8        under this Section as soon as may be practicable after
9        receiving the direction to transfer from the Governor.
10            (d-1) Adequate funds shall be available in the Bank
11        and Trust Company Fund to permit the timely payment of
12        administration expenses. In each fiscal year the total
13        administration expenses shall be deducted from the
14        total fees collected by the Commissioner and the
15        remainder transferred into the Cash Flow Reserve
16        Account, unless the balance of the Cash Flow Reserve
17        Account prior to the transfer equals or exceeds
18        one-fourth of the total initial appropriations from
19        the Bank and Trust Company Fund for the subsequent
20        year, in which case the remainder shall be credited to
21        State banks and foreign banking corporations and
22        applied against their fees for the subsequent year. The
23        amount credited to each State bank and foreign banking
24        corporation shall be in the same proportion as the Call
25        Report Fees paid by each for the year bear to the total
26        Call Report Fees collected for the year. If, after a

 

 

HB1438 Enrolled- 556 -LRB101 04919 JRG 49928 b

1        transfer to the Cash Flow Reserve Account is made or if
2        no remainder is available for transfer, the balance of
3        the Cash Flow Reserve Account is less than one-fourth
4        of the total initial appropriations for the subsequent
5        year and the amount transferred is less than 5% of the
6        total Call Report Fees for the year, additional amounts
7        needed to make the transfer equal to 5% of the total
8        Call Report Fees for the year shall be apportioned
9        amongst, assessed upon, and paid by the State banks and
10        foreign banking corporations in the same proportion
11        that the Call Report Fees of each, respectively, for
12        the year bear to the total Call Report Fees collected
13        for the year. The additional amounts assessed shall be
14        transferred into the Cash Flow Reserve Account. For
15        purposes of this paragraph (d-1), the calculation of
16        the fees collected by the Commissioner shall exclude
17        the receivership fees provided for in Section 5-10 of
18        the Corporate Fiduciary Act.
19            (e) The Commissioner may upon request certify to
20        any public record in his keeping and shall have
21        authority to levy a reasonable charge for issuing
22        certifications of any public record in his keeping.
23            (f) In addition to fees authorized elsewhere in
24        this Act, the Commissioner may, in connection with a
25        review, approval, or provision of a service, levy a
26        reasonable charge to recover the cost of the review,

 

 

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1        approval, or service.
2        (4) Nothing contained in this Act shall be construed to
3    limit the obligation relative to examinations and reports
4    of any State bank, deposits in which are to any extent
5    insured by the United States or any agency thereof, nor to
6    limit in any way the powers of the Commissioner with
7    reference to examinations and reports of that bank.
8        (5) The nature and condition of the assets in or
9    investment of any bonus, pension, or profit sharing plan
10    for officers or employees of every State bank or, after May
11    31, 1997, branch of an out-of-state bank shall be deemed to
12    be included in the affairs of that State bank or branch of
13    an out-of-state bank subject to examination by the
14    Commissioner under the provisions of subsection (2) of this
15    Section, and if the Commissioner shall find from an
16    examination that the condition of or operation of the
17    investments or assets of the plan is unlawful, fraudulent,
18    or unsafe, or that any trustee has abused his trust, the
19    Commissioner shall, if the situation so found by the
20    Commissioner shall not be corrected to his satisfaction
21    within 60 days after the Commissioner has given notice to
22    the board of directors of the State bank or out-of-state
23    bank of his findings, report the facts to the Attorney
24    General who shall thereupon institute proceedings against
25    the State bank or out-of-state bank, the board of directors
26    thereof, or the trustees under such plan as the nature of

 

 

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1    the case may require.
2        (6) The Commissioner shall have the power:
3            (a) To promulgate reasonable rules for the purpose
4        of administering the provisions of this Act.
5            (a-5) To impose conditions on any approval issued
6        by the Commissioner if he determines that the
7        conditions are necessary or appropriate. These
8        conditions shall be imposed in writing and shall
9        continue in effect for the period prescribed by the
10        Commissioner.
11            (b) To issue orders against any person, if the
12        Commissioner has reasonable cause to believe that an
13        unsafe or unsound banking practice has occurred, is
14        occurring, or is about to occur, if any person has
15        violated, is violating, or is about to violate any law,
16        rule, or written agreement with the Commissioner, or
17        for the purpose of administering the provisions of this
18        Act and any rule promulgated in accordance with this
19        Act.
20            (b-1) To enter into agreements with a bank
21        establishing a program to correct the condition of the
22        bank or its practices.
23            (c) To appoint hearing officers to execute any of
24        the powers granted to the Commissioner under this
25        Section for the purpose of administering this Act and
26        any rule promulgated in accordance with this Act and

 

 

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1        otherwise to authorize, in writing, an officer or
2        employee of the Office of Banks and Real Estate to
3        exercise his powers under this Act.
4            (d) To subpoena witnesses, to compel their
5        attendance, to administer an oath, to examine any
6        person under oath, and to require the production of any
7        relevant books, papers, accounts, and documents in the
8        course of and pursuant to any investigation being
9        conducted, or any action being taken, by the
10        Commissioner in respect of any matter relating to the
11        duties imposed upon, or the powers vested in, the
12        Commissioner under the provisions of this Act or any
13        rule promulgated in accordance with this Act.
14            (e) To conduct hearings.
15        (7) Whenever, in the opinion of the Secretary, any
16    director, officer, employee, or agent of a State bank or
17    any subsidiary or bank holding company of the bank or,
18    after May 31, 1997, of any branch of an out-of-state bank
19    or any subsidiary or bank holding company of the bank shall
20    have violated any law, rule, or order relating to that bank
21    or any subsidiary or bank holding company of the bank,
22    shall have obstructed or impeded any examination or
23    investigation by the Secretary, shall have engaged in an
24    unsafe or unsound practice in conducting the business of
25    that bank or any subsidiary or bank holding company of the
26    bank, or shall have violated any law or engaged or

 

 

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1    participated in any unsafe or unsound practice in
2    connection with any financial institution or other
3    business entity such that the character and fitness of the
4    director, officer, employee, or agent does not assure
5    reasonable promise of safe and sound operation of the State
6    bank, the Secretary may issue an order of removal. If, in
7    the opinion of the Secretary, any former director, officer,
8    employee, or agent of a State bank or any subsidiary or
9    bank holding company of the bank, prior to the termination
10    of his or her service with that bank or any subsidiary or
11    bank holding company of the bank, violated any law, rule,
12    or order relating to that State bank or any subsidiary or
13    bank holding company of the bank, obstructed or impeded any
14    examination or investigation by the Secretary, engaged in
15    an unsafe or unsound practice in conducting the business of
16    that bank or any subsidiary or bank holding company of the
17    bank, or violated any law or engaged or participated in any
18    unsafe or unsound practice in connection with any financial
19    institution or other business entity such that the
20    character and fitness of the director, officer, employee,
21    or agent would not have assured reasonable promise of safe
22    and sound operation of the State bank, the Secretary may
23    issue an order prohibiting that person from further service
24    with a bank or any subsidiary or bank holding company of
25    the bank as a director, officer, employee, or agent. An
26    order issued pursuant to this subsection shall be served

 

 

HB1438 Enrolled- 561 -LRB101 04919 JRG 49928 b

1    upon the director, officer, employee, or agent. A copy of
2    the order shall be sent to each director of the bank
3    affected by registered mail. A copy of the order shall also
4    be served upon the bank of which he is a director, officer,
5    employee, or agent, whereupon he shall cease to be a
6    director, officer, employee, or agent of that bank. The
7    Secretary may institute a civil action against the
8    director, officer, or agent of the State bank or, after May
9    31, 1997, of the branch of the out-of-state bank against
10    whom any order provided for by this subsection (7) of this
11    Section 48 has been issued, and against the State bank or,
12    after May 31, 1997, out-of-state bank, to enforce
13    compliance with or to enjoin any violation of the terms of
14    the order. Any person who has been the subject of an order
15    of removal or an order of prohibition issued by the
16    Secretary under this subsection or Section 5-6 of the
17    Corporate Fiduciary Act may not thereafter serve as
18    director, officer, employee, or agent of any State bank or
19    of any branch of any out-of-state bank, or of any corporate
20    fiduciary, as defined in Section 1-5.05 of the Corporate
21    Fiduciary Act, or of any other entity that is subject to
22    licensure or regulation by the Division of Banking unless
23    the Secretary has granted prior approval in writing.
24        For purposes of this paragraph (7), "bank holding
25    company" has the meaning prescribed in Section 2 of the
26    Illinois Bank Holding Company Act of 1957.

 

 

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1        (7.5) Notwithstanding the provisions of this Section,
2    the Secretary shall not:
3            (1) issue an order against a State bank or any
4        subsidiary organized under this Act for unsafe or
5        unsound banking practices solely because the entity
6        provides or has provided financial services to a
7        cannabis-related legitimate business;
8            (2) prohibit, penalize, or otherwise discourage a
9        State bank or any subsidiary from providing financial
10        services to a cannabis-related legitimate business
11        solely because the entity provides or has provided
12        financial services to a cannabis-related legitimate
13        business;
14            (3) recommend, incentivize, or encourage a State
15        bank or any subsidiary not to offer financial services
16        to an account holder or to downgrade or cancel the
17        financial services offered to an account holder solely
18        because:
19                (A) the account holder is a manufacturer or
20            producer, or is the owner, operator, or employee of
21            a cannabis-related legitimate business;
22                (B) the account holder later becomes an owner
23            or operator of a cannabis-related legitimate
24            business; or
25                (C) the State bank or any subsidiary was not
26            aware that the account holder is the owner or

 

 

HB1438 Enrolled- 563 -LRB101 04919 JRG 49928 b

1            operator of a cannabis-related legitimate
2            business; and
3            (4) take any adverse or corrective supervisory
4        action on a loan made to an owner or operator of:
5                (A) a cannabis-related legitimate business
6            solely because the owner or operator owns or
7            operates a cannabis-related legitimate business;
8            or
9                (B) real estate or equipment that is leased to
10            a cannabis-related legitimate business solely
11            because the owner or operator of the real estate or
12            equipment leased the equipment or real estate to a
13            cannabis-related legitimate business.
14        (8) The Commissioner may impose civil penalties of up
15    to $100,000 against any person for each violation of any
16    provision of this Act, any rule promulgated in accordance
17    with this Act, any order of the Commissioner, or any other
18    action which in the Commissioner's discretion is an unsafe
19    or unsound banking practice.
20        (9) The Commissioner may impose civil penalties of up
21    to $100 against any person for the first failure to comply
22    with reporting requirements set forth in the report of
23    examination of the bank and up to $200 for the second and
24    subsequent failures to comply with those reporting
25    requirements.
26        (10) All final administrative decisions of the

 

 

HB1438 Enrolled- 564 -LRB101 04919 JRG 49928 b

1    Commissioner hereunder shall be subject to judicial review
2    pursuant to the provisions of the Administrative Review
3    Law. For matters involving administrative review, venue
4    shall be in either Sangamon County or Cook County.
5        (11) The endowment fund for the Illinois Bank
6    Examiners' Education Foundation shall be administered as
7    follows:
8            (a) (Blank).
9            (b) The Foundation is empowered to receive
10        voluntary contributions, gifts, grants, bequests, and
11        donations on behalf of the Illinois Bank Examiners'
12        Education Foundation from national banks and other
13        persons for the purpose of funding the endowment of the
14        Illinois Bank Examiners' Education Foundation.
15            (c) The aggregate of all special educational fees
16        collected by the Secretary and property received by the
17        Secretary on behalf of the Illinois Bank Examiners'
18        Education Foundation under this subsection (11) on or
19        after June 30, 1986, shall be either (i) promptly paid
20        after receipt of the same, accompanied by a detailed
21        statement thereof, into the State Treasury and shall be
22        set apart in a special fund to be known as "The
23        Illinois Bank Examiners' Education Fund" to be
24        invested by either the Treasurer of the State of
25        Illinois in the Public Treasurers' Investment Pool or
26        in any other investment he is authorized to make or by

 

 

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1        the Illinois State Board of Investment as the State
2        Banking Board of Illinois may direct or (ii) deposited
3        into an account maintained in a commercial bank or
4        corporate fiduciary in the name of the Illinois Bank
5        Examiners' Education Foundation pursuant to the order
6        and direction of the Board of Trustees of the Illinois
7        Bank Examiners' Education Foundation.
8        (12) (Blank).
9        (13) The Secretary may borrow funds from the General
10    Revenue Fund on behalf of the Bank and Trust Company Fund
11    if the Director of Banking certifies to the Governor that
12    there is an economic emergency affecting banking that
13    requires a borrowing to provide additional funds to the
14    Bank and Trust Company Fund. The borrowed funds shall be
15    paid back within 3 years and shall not exceed the total
16    funding appropriated to the Agency in the previous year.
17        (14) In addition to the fees authorized in this Act,
18    the Secretary may assess reasonable receivership fees
19    against any State bank that does not maintain insurance
20    with the Federal Deposit Insurance Corporation. All fees
21    collected under this subsection (14) shall be paid into the
22    Non-insured Institutions Receivership account in the Bank
23    and Trust Company Fund, as established by the Secretary.
24    The fees assessed under this subsection (14) shall provide
25    for the expenses that arise from the administration of the
26    receivership of any such institution required to pay into

 

 

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1    the Non-insured Institutions Receivership account, whether
2    pursuant to this Act, the Corporate Fiduciary Act, the
3    Foreign Banking Office Act, or any other Act that requires
4    payments into the Non-insured Institutions Receivership
5    account. The Secretary may establish by rule a reasonable
6    manner of assessing fees under this subsection (14).
7(Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)
 
8    Section 900-33. The Illinois Credit Union Act is amended by
9changing Section 8 as follows:
 
10    (205 ILCS 305/8)  (from Ch. 17, par. 4409)
11    Sec. 8. Secretary's powers and duties. Credit unions are
12regulated by the Department. The Secretary in executing the
13powers and discharging the duties vested by law in the
14Department has the following powers and duties:
15        (1) To exercise the rights, powers and duties set forth
16    in this Act or any related Act. The Director shall oversee
17    the functions of the Division and report to the Secretary,
18    with respect to the Director's exercise of any of the
19    rights, powers, and duties vested by law in the Secretary
20    under this Act. All references in this Act to the Secretary
21    shall be deemed to include the Director, as a person
22    authorized by the Secretary or this Act to assume
23    responsibility for the oversight of the functions of the
24    Department relating to the regulatory supervision of

 

 

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1    credit unions under this Act.
2        (2) To prescribe rules and regulations for the
3    administration of this Act. The provisions of the Illinois
4    Administrative Procedure Act are hereby expressly adopted
5    and incorporated herein as though a part of this Act, and
6    shall apply to all administrative rules and procedures of
7    the Department under this Act.
8        (3) To direct and supervise all the administrative and
9    technical activities of the Department including the
10    employment of a Credit Union Supervisor who shall have
11    knowledge in the theory and practice of, or experience in,
12    the operations or supervision of financial institutions,
13    preferably credit unions, and such other persons as are
14    necessary to carry out his functions. The Secretary shall
15    ensure that all examiners appointed or assigned to examine
16    the affairs of State-chartered credit unions possess the
17    necessary training and continuing education to effectively
18    execute their jobs.
19        (4) To issue cease and desist orders when in the
20    opinion of the Secretary, a credit union is engaged or has
21    engaged, or the Secretary has reasonable cause to believe
22    the credit union is about to engage, in an unsafe or
23    unsound practice, or is violating or has violated or the
24    Secretary has reasonable cause to believe is about to
25    violate a law, rule or regulation or any condition imposed
26    in writing by the Department.

 

 

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1        (5) To suspend from office and to prohibit from further
2    participation in any manner in the conduct of the affairs
3    of his credit union any director, officer or committee
4    member who has committed any violation of a law, rule,
5    regulation or of a cease and desist order or who has
6    engaged or participated in any unsafe or unsound practice
7    in connection with the credit union or who has committed or
8    engaged in any act, omission, or practice which constitutes
9    a breach of his fiduciary duty as such director, officer or
10    committee member, when the Secretary has determined that
11    such action or actions have resulted or will result in
12    substantial financial loss or other damage that seriously
13    prejudices the interests of the members.
14        (6) To assess a civil penalty against a credit union
15    provided that:
16            (A) the Secretary reasonably determines, based on
17        objective facts and an accurate assessment of
18        applicable legal standards, that the credit union has:
19                (i) committed a violation of this Act, any rule
20            adopted in accordance with this Act, or any order
21            of the Secretary issued pursuant to his or her
22            authority under this Act; or
23                (ii) engaged or participated in any unsafe or
24            unsound practice;
25            (B) before a civil penalty is assessed under this
26        item (6), the Secretary must make the further

 

 

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1        reasonable determination, based on objective facts and
2        an accurate assessment of applicable legal standards,
3        that the credit union's action constituting a
4        violation under subparagraph (i) of paragraph (A) of
5        item (6) or an unsafe and unsound practice under
6        subparagraph (ii) of paragraph (A) of item (6):
7                (i) directly resulted in a substantial and
8            material financial loss or created a reasonable
9            probability that a substantial and material
10            financial loss will directly result; or
11                (ii) constituted willful misconduct or a
12            material breach of fiduciary duty of any director,
13            officer, or committee member of the credit union;
14            Material financial loss, as referenced in this
15        paragraph (B), shall be assessed in light of
16        surrounding circumstances and the relative size and
17        nature of the financial loss or probable financial
18        loss. Certain benchmarks shall be used in determining
19        whether financial loss is material, such as a
20        percentage of total assets or total gross income for
21        the immediately preceding 12-month period. Absent
22        compelling and extraordinary circumstances, no civil
23        penalty shall be assessed, unless the financial loss or
24        probable financial loss is equal to or greater than
25        either 1% of the credit union's total assets for the
26        immediately preceding 12-month period, or 1% of the

 

 

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1        credit union's total gross income for the immediately
2        preceding 12-month period, whichever is less;
3            (C) before a civil penalty is assessed under this
4        item (6), the credit union must be expressly advised in
5        writing of the:
6                (i) specific violation that could subject it
7            to a penalty under this item (6); and
8                (ii) the specific remedial action to be taken
9            within a specific and reasonable time frame to
10            avoid imposition of the penalty;
11            (D) Civil penalties assessed under this item (6)
12        shall be remedial, not punitive, and reasonably
13        tailored to ensure future compliance by the credit
14        union with the provisions of this Act and any rules
15        adopted pursuant to this Act;
16            (E) a credit union's failure to take timely
17        remedial action with respect to the specific violation
18        may result in the issuance of an order assessing a
19        civil penalty up to the following maximum amount, based
20        upon the total assets of the credit union:
21                (i) Credit unions with assets of less than $10
22            million................................................$1,000
23                (ii) Credit unions with assets of at least $10
24            million and less than $50 million......................$2,500
25                (iii) Credit unions with assets of at least $50
26            million and less than $100 million.....................$5,000

 

 

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1                (iv) Credit unions with assets of at least $100
2            million and less than $500 million....................$10,000
3                (v) Credit unions with assets of at least $500
4            million and less than $1 billion......................$25,000
5                (vi) Credit unions with assets of $1 billion
6            and greater.....................................$50,000; and
7            (F) an order assessing a civil penalty under this
8        item (6) shall take effect upon service of the order,
9        unless the credit union makes a written request for a
10        hearing under 38 IL. Adm. Code 190.20 of the
11        Department's rules for credit unions within 90 days
12        after issuance of the order; in that event, the order
13        shall be stayed until a final administrative order is
14        entered.
15        This item (6) shall not apply to violations separately
16    addressed in rules as authorized under item (7) of this
17    Section.
18        (7) Except for the fees established in this Act, to
19    prescribe, by rule and regulation, fees and penalties for
20    preparing, approving, and filing reports and other
21    documents; furnishing transcripts; holding hearings;
22    investigating applications for permission to organize,
23    merge, or convert; failure to maintain accurate books and
24    records to enable the Department to conduct an examination;
25    and taking supervisory actions.
26        (8) To destroy, in his discretion, any or all books and

 

 

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1    records of any credit union in his possession or under his
2    control after the expiration of three years from the date
3    of cancellation of the charter of such credit unions.
4        (9) To make investigations and to conduct research and
5    studies and to publish some of the problems of persons in
6    obtaining credit at reasonable rates of interest and of the
7    methods and benefits of cooperative saving and lending for
8    such persons.
9        (10) To authorize, foster or establish experimental,
10    developmental, demonstration or pilot projects by public
11    or private organizations including credit unions which:
12            (a) promote more effective operation of credit
13        unions so as to provide members an opportunity to use
14        and control their own money to improve their economic
15        and social conditions; or
16            (b) are in the best interests of credit unions,
17        their members and the people of the State of Illinois.
18        (11) To cooperate in studies, training or other
19    administrative activities with, but not limited to, the
20    NCUA, other state credit union regulatory agencies and
21    industry trade associations in order to promote more
22    effective and efficient supervision of Illinois chartered
23    credit unions.
24        (12) Notwithstanding the provisions of this Section,
25    the Secretary shall not:
26            (1) issue an order against a credit union organized

 

 

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1        under this Act for unsafe or unsound banking practices
2        solely because the entity provides or has provided
3        financial services to a cannabis-related legitimate
4        business;
5            (2) prohibit, penalize, or otherwise discourage a
6        credit union from providing financial services to a
7        cannabis-related legitimate business solely because
8        the entity provides or has provided financial services
9        to a cannabis-related legitimate business;
10            (3) recommend, incentivize, or encourage a credit
11        union not to offer financial services to an account
12        holder or to downgrade or cancel the financial services
13        offered to an account holder solely because:
14                (A) the account holder is a manufacturer or
15            producer, or is the owner, operator, or employee of
16            a cannabis-related legitimate business;
17                (B) the account holder later becomes an owner
18            or operator of a cannabis-related legitimate
19            business; or
20                (C) the credit union was not aware that the
21            account holder is the owner or operator of a
22            cannabis-related legitimate business; and
23            (4) take any adverse or corrective supervisory
24        action on a loan made to an owner or operator of:
25                (A) a cannabis-related legitimate business
26            solely because the owner or operator owns or

 

 

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1            operates a cannabis-related legitimate business;
2            or
3                (B) real estate or equipment that is leased to
4            a cannabis-related legitimate business solely
5            because the owner or operator of the real estate or
6            equipment leased the equipment or real estate to a
7            cannabis-related legitimate business.
8(Source: P.A. 97-133, eff. 1-1-12; 98-400, eff. 8-16-13.)
 
9    Section 900-35. The Compassionate Use of Medical Cannabis
10Pilot Program Act is amended by changing Section 210 as
11follows:
 
12    (410 ILCS 130/210)
13    (Section scheduled to be repealed on July 1, 2020)
14    Sec. 210. Returns.
15    (a) This subsection (a) applies to returns due on or before
16the effective date of this amendatory Act of the 101st General
17Assembly. On or before the twentieth day of each calendar
18month, every person subject to the tax imposed under this Law
19during the preceding calendar month shall file a return with
20the Department, stating:
21        (1) The name of the taxpayer;
22        (2) The number of ounces of medical cannabis sold to a
23    dispensary organization or a registered qualifying patient
24    during the preceding calendar month;

 

 

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1        (3) The amount of tax due;
2        (4) The signature of the taxpayer; and
3        (5) Such other reasonable information as the
4    Department may require.
5    If a taxpayer fails to sign a return within 30 days after
6the proper notice and demand for signature by the Department,
7the return shall be considered valid and any amount shown to be
8due on the return shall be deemed assessed.
9    The taxpayer shall remit the amount of the tax due to the
10Department at the time the taxpayer files his or her return.
11    (b) Beginning on the effective date of this amendatory Act
12of the 101st General Assembly, Section 65-20 of the Cannabis
13Regulation and Tax Act shall apply to returns filed and taxes
14paid under this Act to the same extent as if those provisions
15were set forth in full in this Section.
16(Source: P.A. 98-122, eff. 1-1-14.)
 
17    Section 900-38. The Illinois Vehicle Code is amended by
18changing Sections 2-118.2, 11-501.2, 11-501.9, and 11-502.1
19and by adding Sections 11-501.10 and 11-502.15 as follows:
 
20    (625 ILCS 5/2-118.2)
21    Sec. 2-118.2. Opportunity for hearing; medical
22cannabis-related suspension under Section 11-501.9.
23    (a) A suspension of driving privileges under Section
2411-501.9 of this Code shall not become effective until the

 

 

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1person is notified in writing of the impending suspension and
2informed that he or she may request a hearing in the circuit
3court of venue under subsection (b) of this Section and the
4suspension shall become effective as provided in Section
511-501.9.
6    (b) Within 90 days after the notice of suspension served
7under Section 11-501.9, the person may make a written request
8for a judicial hearing in the circuit court of venue. The
9request to the circuit court shall state the grounds upon which
10the person seeks to have the suspension rescinded. Within 30
11days after receipt of the written request or the first
12appearance date on the Uniform Traffic Ticket issued for a
13violation of Section 11-501 of this Code, or a similar
14provision of a local ordinance, the hearing shall be conducted
15by the circuit court having jurisdiction. This judicial
16hearing, request, or process shall not stay or delay the
17suspension. The hearing shall proceed in the court in the same
18manner as in other civil proceedings.
19    The hearing may be conducted upon a review of the law
20enforcement officer's own official reports; provided however,
21that the person may subpoena the officer. Failure of the
22officer to answer the subpoena shall be considered grounds for
23a continuance if in the court's discretion the continuance is
24appropriate.
25    The scope of the hearing shall be limited to the issues of:
26        (1) Whether the person was issued a registry

 

 

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1    identification card under the Compassionate Use of Medical
2    Cannabis Pilot Program Act; and
3        (1) (2) Whether the officer had reasonable suspicion to
4    believe that the person was driving or in actual physical
5    control of a motor vehicle upon a highway while impaired by
6    the use of cannabis; and
7        (2) (3) Whether the person, after being advised by the
8    officer that the privilege to operate a motor vehicle would
9    be suspended if the person refused to submit to and
10    complete the field sobriety tests, did refuse to submit to
11    or complete the field sobriety tests authorized under
12    Section 11-501.9; and
13        (3) (4) Whether the person after being advised by the
14    officer that the privilege to operate a motor vehicle would
15    be suspended if the person submitted to field sobriety
16    tests that disclosed the person was impaired by the use of
17    cannabis, did submit to field sobriety tests that disclosed
18    that the person was impaired by the use of cannabis.
19    Upon the conclusion of the judicial hearing, the circuit
20court shall sustain or rescind the suspension and immediately
21notify the Secretary of State. Reports received by the
22Secretary of State under this Section shall be privileged
23information and for use only by the courts, police officers,
24and Secretary of State.
25(Source: P.A. 98-1172, eff. 1-12-15.)
 

 

 

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1    (625 ILCS 5/11-501.2)  (from Ch. 95 1/2, par. 11-501.2)
2    Sec. 11-501.2. Chemical and other tests.
3    (a) Upon the trial of any civil or criminal action or
4proceeding arising out of an arrest for an offense as defined
5in Section 11-501 or a similar local ordinance or proceedings
6pursuant to Section 2-118.1, evidence of the concentration of
7alcohol, other drug or drugs, or intoxicating compound or
8compounds, or any combination thereof in a person's blood or
9breath at the time alleged, as determined by analysis of the
10person's blood, urine, breath, or other bodily substance, shall
11be admissible. Where such test is made the following provisions
12shall apply:
13        1. Chemical analyses of the person's blood, urine,
14    breath, or other bodily substance to be considered valid
15    under the provisions of this Section shall have been
16    performed according to standards promulgated by the
17    Department of State Police by a licensed physician,
18    registered nurse, trained phlebotomist, licensed
19    paramedic, or other individual possessing a valid permit
20    issued by that Department for this purpose. The Director of
21    State Police is authorized to approve satisfactory
22    techniques or methods, to ascertain the qualifications and
23    competence of individuals to conduct such analyses, to
24    issue permits which shall be subject to termination or
25    revocation at the discretion of that Department and to
26    certify the accuracy of breath testing equipment. The

 

 

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1    Department of State Police shall prescribe regulations as
2    necessary to implement this Section.
3        2. When a person in this State shall submit to a blood
4    test at the request of a law enforcement officer under the
5    provisions of Section 11-501.1, only a physician
6    authorized to practice medicine, a licensed physician
7    assistant, a licensed advanced practice registered nurse,
8    a registered nurse, trained phlebotomist, or licensed
9    paramedic, or other qualified person approved by the
10    Department of State Police may withdraw blood for the
11    purpose of determining the alcohol, drug, or alcohol and
12    drug content therein. This limitation shall not apply to
13    the taking of breath, other bodily substance, or urine
14    specimens.
15        When a blood test of a person who has been taken to an
16    adjoining state for medical treatment is requested by an
17    Illinois law enforcement officer, the blood may be
18    withdrawn only by a physician authorized to practice
19    medicine in the adjoining state, a licensed physician
20    assistant, a licensed advanced practice registered nurse,
21    a registered nurse, a trained phlebotomist acting under the
22    direction of the physician, or licensed paramedic. The law
23    enforcement officer requesting the test shall take custody
24    of the blood sample, and the blood sample shall be analyzed
25    by a laboratory certified by the Department of State Police
26    for that purpose.

 

 

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1        3. The person tested may have a physician, or a
2    qualified technician, chemist, registered nurse, or other
3    qualified person of their own choosing administer a
4    chemical test or tests in addition to any administered at
5    the direction of a law enforcement officer. The failure or
6    inability to obtain an additional test by a person shall
7    not preclude the admission of evidence relating to the test
8    or tests taken at the direction of a law enforcement
9    officer.
10        4. Upon the request of the person who shall submit to a
11    chemical test or tests at the request of a law enforcement
12    officer, full information concerning the test or tests
13    shall be made available to the person or such person's
14    attorney.
15        5. Alcohol concentration shall mean either grams of
16    alcohol per 100 milliliters of blood or grams of alcohol
17    per 210 liters of breath.
18        6. Tetrahydrocannabinol concentration means either 5
19    nanograms or more of delta-9-tetrahydrocannabinol per
20    milliliter of whole blood or 10 nanograms or more of
21    delta-9-tetrahydrocannabinol per milliliter of other
22    bodily substance.
23    (a-5) Law enforcement officials may use validated roadside
24chemical tests or standardized field sobriety tests approved by
25the National Highway Traffic Safety Administration when
26conducting investigations of a violation of Section 11-501 or

 

 

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1similar local ordinance by drivers suspected of driving under
2the influence of cannabis. The General Assembly finds that (i)
3validated roadside chemical tests are effective means to
4determine if a person is under the influence of cannabis and
5(ii) standardized field sobriety tests approved by the National
6Highway Traffic Safety Administration are divided attention
7tasks that are intended to determine if a person is under the
8influence of cannabis. The purpose of these tests is to
9determine the effect of the use of cannabis on a person's
10capacity to think and act with ordinary care and therefore
11operate a motor vehicle safely. Therefore, the results of these
12validated roadside chemical tests and standardized field
13sobriety tests, appropriately administered, shall be
14admissible in the trial of any civil or criminal action or
15proceeding arising out of an arrest for a cannabis-related
16offense as defined in Section 11-501 or a similar local
17ordinance or proceedings under Section 2-118.1 or 2-118.2.
18Where a test is made the following provisions shall apply:
19        1. The person tested may have a physician, or a
20    qualified technician, chemist, registered nurse, or other
21    qualified person of their own choosing administer a
22    chemical test or tests in addition to the standardized
23    field sobriety test or tests administered at the direction
24    of a law enforcement officer. The failure or inability to
25    obtain an additional test by a person does not preclude the
26    admission of evidence relating to the test or tests taken

 

 

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1    at the direction of a law enforcement officer.
2        2. Upon the request of the person who shall submit to
3    validated roadside chemical tests or a standardized field
4    sobriety test or tests at the request of a law enforcement
5    officer, full information concerning the test or tests
6    shall be made available to the person or the person's
7    attorney.
8        3. At the trial of any civil or criminal action or
9    proceeding arising out of an arrest for an offense as
10    defined in Section 11-501 or a similar local ordinance or
11    proceedings under Section 2-118.1 or 2-118.2 in which the
12    results of these validated roadside chemical tests or
13    standardized field sobriety tests are admitted, the person
14    cardholder may present and the trier of fact may consider
15    evidence that the person card holder lacked the physical
16    capacity to perform the validated roadside chemical tests
17    or standardized field sobriety tests.
18    (b) Upon the trial of any civil or criminal action or
19proceeding arising out of acts alleged to have been committed
20by any person while driving or in actual physical control of a
21vehicle while under the influence of alcohol, the concentration
22of alcohol in the person's blood or breath at the time alleged
23as shown by analysis of the person's blood, urine, breath, or
24other bodily substance shall give rise to the following
25presumptions:
26        1. If there was at that time an alcohol concentration

 

 

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1    of 0.05 or less, it shall be presumed that the person was
2    not under the influence of alcohol.
3        2. If there was at that time an alcohol concentration
4    in excess of 0.05 but less than 0.08, such facts shall not
5    give rise to any presumption that the person was or was not
6    under the influence of alcohol, but such fact may be
7    considered with other competent evidence in determining
8    whether the person was under the influence of alcohol.
9        3. If there was at that time an alcohol concentration
10    of 0.08 or more, it shall be presumed that the person was
11    under the influence of alcohol.
12        4. The foregoing provisions of this Section shall not
13    be construed as limiting the introduction of any other
14    relevant evidence bearing upon the question whether the
15    person was under the influence of alcohol.
16    (b-5) Upon the trial of any civil or criminal action or
17proceeding arising out of acts alleged to have been committed
18by any person while driving or in actual physical control of a
19vehicle while under the influence of alcohol, other drug or
20drugs, intoxicating compound or compounds or any combination
21thereof, the concentration of cannabis in the person's whole
22blood or other bodily substance at the time alleged as shown by
23analysis of the person's blood or other bodily substance shall
24give rise to the following presumptions:
25        1. If there was a tetrahydrocannabinol concentration
26    of 5 nanograms or more in whole blood or 10 nanograms or

 

 

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1    more in an other bodily substance as defined in this
2    Section, it shall be presumed that the person was under the
3    influence of cannabis.
4        2. If there was at that time a tetrahydrocannabinol
5    concentration of less than 5 nanograms in whole blood or
6    less than 10 nanograms in an other bodily substance, such
7    facts shall not give rise to any presumption that the
8    person was or was not under the influence of cannabis, but
9    such fact may be considered with other competent evidence
10    in determining whether the person was under the influence
11    of cannabis.
12    (c) 1. If a person under arrest refuses to submit to a
13chemical test under the provisions of Section 11-501.1,
14evidence of refusal shall be admissible in any civil or
15criminal action or proceeding arising out of acts alleged to
16have been committed while the person under the influence of
17alcohol, other drug or drugs, or intoxicating compound or
18compounds, or any combination thereof was driving or in actual
19physical control of a motor vehicle.
20    2. Notwithstanding any ability to refuse under this Code to
21submit to these tests or any ability to revoke the implied
22consent to these tests, if a law enforcement officer has
23probable cause to believe that a motor vehicle driven by or in
24actual physical control of a person under the influence of
25alcohol, other drug or drugs, or intoxicating compound or
26compounds, or any combination thereof has caused the death or

 

 

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1personal injury to another, the law enforcement officer shall
2request, and that person shall submit, upon the request of a
3law enforcement officer, to a chemical test or tests of his or
4her blood, breath, other bodily substance, or urine for the
5purpose of determining the alcohol content thereof or the
6presence of any other drug or combination of both.
7    This provision does not affect the applicability of or
8imposition of driver's license sanctions under Section
911-501.1 of this Code.
10    3. For purposes of this Section, a personal injury includes
11any Type A injury as indicated on the traffic accident report
12completed by a law enforcement officer that requires immediate
13professional attention in either a doctor's office or a medical
14facility. A Type A injury includes severe bleeding wounds,
15distorted extremities, and injuries that require the injured
16party to be carried from the scene.
17    (d) If a person refuses validated roadside chemical tests
18or standardized field sobriety tests under Section 11-501.9 of
19this Code, evidence of refusal shall be admissible in any civil
20or criminal action or proceeding arising out of acts committed
21while the person was driving or in actual physical control of a
22vehicle and alleged to have been impaired by the use of
23cannabis.
24    (e) Department of State Police compliance with the changes
25in this amendatory Act of the 99th General Assembly concerning
26testing of other bodily substances and tetrahydrocannabinol

 

 

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1concentration by Department of State Police laboratories is
2subject to appropriation and until the Department of State
3Police adopt standards and completion validation. Any
4laboratories that test for the presence of cannabis or other
5drugs under this Article, the Snowmobile Registration and
6Safety Act, or the Boat Registration and Safety Act must comply
7with ISO/IEC 17025:2005.
8(Source: P.A. 99-697, eff. 7-29-16; 100-513, eff. 1-1-18.)
 
9    (625 ILCS 5/11-501.9)
10    Sec. 11-501.9. Suspension of driver's license; failure or
11refusal of validated roadside chemical tests medical cannabis
12card holder; failure or refusal of field sobriety tests;
13implied consent.
14    (a) A person who has been issued a registry identification
15card under the Compassionate Use of Medical Cannabis Pilot
16Program Act who drives or is in actual physical control of a
17motor vehicle upon the public highways of this State shall be
18deemed to have given consent to (i) validated roadside chemical
19tests or (ii) standardized field sobriety tests approved by the
20National Highway Traffic Safety Administration, under
21subsection (a-5) of Section 11-501.2 of this Code, if detained
22by a law enforcement officer who has a reasonable suspicion
23that the person is driving or is in actual physical control of
24a motor vehicle while impaired by the use of cannabis. The law
25enforcement officer must have an independent, cannabis-related

 

 

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1factual basis giving reasonable suspicion that the person is
2driving or in actual physical control of a motor vehicle while
3impaired by the use of cannabis for conducting validated
4roadside chemical tests or standardized field sobriety tests,
5which shall be included with the results of the validated
6roadside chemical tests and field sobriety tests in any report
7made by the law enforcement officer who requests the test. The
8person's possession of a registry identification card issued
9under the Compassionate Use of Medical Cannabis Pilot Program
10Act alone is not a sufficient basis for reasonable suspicion.
11    For purposes of this Section, a law enforcement officer of
12this State who is investigating a person for an offense under
13Section 11-501 of this Code may travel into an adjoining state
14where the person has been transported for medical care to
15complete an investigation and to request that the person submit
16to field sobriety tests under this Section.
17    (b) A person who is unconscious, or otherwise in a
18condition rendering the person incapable of refusal, shall be
19deemed to have withdrawn the consent provided by subsection (a)
20of this Section.
21    (c) A person requested to submit to validated roadside
22chemical tests or field sobriety tests, as provided in this
23Section, shall be warned by the law enforcement officer
24requesting the field sobriety tests that a refusal to submit to
25the validated roadside chemical tests or field sobriety tests
26will result in the suspension of the person's privilege to

 

 

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1operate a motor vehicle, as provided in subsection (f) of this
2Section. The person shall also be warned by the law enforcement
3officer that if the person submits to validated roadside
4chemical tests or field sobriety tests as provided in this
5Section which disclose the person is impaired by the use of
6cannabis, a suspension of the person's privilege to operate a
7motor vehicle, as provided in subsection (f) of this Section,
8will be imposed.
9    (d) The results of validated roadside chemical tests or
10field sobriety tests administered under this Section shall be
11admissible in a civil or criminal action or proceeding arising
12from an arrest for an offense as defined in Section 11-501 of
13this Code or a similar provision of a local ordinance. These
14test results shall be admissible only in actions or proceedings
15directly related to the incident upon which the test request
16was made.
17    (e) If the person refuses validated roadside chemical tests
18or field sobriety tests or submits to validated roadside
19chemical tests or field sobriety tests that disclose the person
20is impaired by the use of cannabis, the law enforcement officer
21shall immediately submit a sworn report to the circuit court of
22venue and the Secretary of State certifying that testing was
23requested under this Section and that the person refused to
24submit to validated roadside chemical tests or field sobriety
25tests or submitted to validated roadside chemical tests or
26field sobriety tests that disclosed the person was impaired by

 

 

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1the use of cannabis. The sworn report must include the law
2enforcement officer's factual basis for reasonable suspicion
3that the person was impaired by the use of cannabis.
4    (f) Upon receipt of the sworn report of a law enforcement
5officer submitted under subsection (e) of this Section, the
6Secretary of State shall enter the suspension to the driving
7record as follows:
8        (1) for refusal or failure to complete validated
9    roadside chemical tests or field sobriety tests, a 12 month
10    suspension shall be entered; or
11        (2) for submitting to validated roadside chemical
12    tests or field sobriety tests that disclosed the driver was
13    impaired by the use of cannabis, a 6 month suspension shall
14    be entered.
15    The Secretary of State shall confirm the suspension by
16mailing a notice of the effective date of the suspension to the
17person and the court of venue. However, should the sworn report
18be defective for insufficient information or be completed in
19error, the confirmation of the suspension shall not be mailed
20to the person or entered to the record; instead, the sworn
21report shall be forwarded to the court of venue with a copy
22returned to the issuing agency identifying the defect.
23    (g) The law enforcement officer submitting the sworn report
24under subsection (e) of this Section shall serve immediate
25notice of the suspension on the person and the suspension shall
26be effective as provided in subsection (h) of this Section. If

 

 

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1immediate notice of the suspension cannot be given, the
2arresting officer or arresting agency shall give notice by
3deposit in the United States mail of the notice in an envelope
4with postage prepaid and addressed to the person at his or her
5address as shown on the Uniform Traffic Ticket and the
6suspension shall begin as provided in subsection (h) of this
7Section. The officer shall confiscate any Illinois driver's
8license or permit on the person at the time of arrest. If the
9person has a valid driver's license or permit, the officer
10shall issue the person a receipt, in a form prescribed by the
11Secretary of State, that will allow the person to drive during
12the period provided for in subsection (h) of this Section. The
13officer shall immediately forward the driver's license or
14permit to the circuit court of venue along with the sworn
15report under subsection (e) of this Section.
16    (h) The suspension under subsection (f) of this Section
17shall take effect on the 46th day following the date the notice
18of the suspension was given to the person.
19    (i) When a driving privilege has been suspended under this
20Section and the person is subsequently convicted of violating
21Section 11-501 of this Code, or a similar provision of a local
22ordinance, for the same incident, any period served on
23suspension under this Section shall be credited toward the
24minimum period of revocation of driving privileges imposed
25under Section 6-205 of this Code.
26(Source: P.A. 98-1172, eff. 1-12-15.)
 

 

 

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1    (625 ILCS 5/11-501.10 new)
2    Sec. 11-501.10. DUI Cannabis Task Force.
3    (a) The DUI Cannabis Task Force is hereby created to study
4the issue of driving under the influence of cannabis. The Task
5Force shall consist of the following members:
6        (1) The Director of State Police, or his or her
7    designee, who shall serve as chair;
8        (2) The Secretary of State, or his or her designee;
9        (3) The President of the Illinois State's Attorneys
10    Association, or his or her designee;
11        (4) The President of the Illinois Association of
12    Criminal Defense Lawyers, or his or her designee;
13        (5) One member appointed by the Speaker of the House of
14    Representatives;
15        (6) One member appointed by the Minority Leader of the
16    House of Representatives;
17        (7) One member appointed by the President of the
18    Senate;
19        (8) One member appointed by the Minority Leader of the
20    Senate;
21        (9) One member of an organization dedicated to end
22    drunk driving and drugged driving;
23        (10) The president of a statewide bar association,
24    appointed by the Governor; and
25        (11) One member of a statewide organization

 

 

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1    representing civil and constitutional rights, appointed by
2    the Governor.
3    (b) The members of the Task Force shall serve without
4compensation.
5    (c) The Task Force shall examine best practices in the area
6of driving under the influence of cannabis enforcement,
7including examining emerging technology in roadside testing.
8    (d) The Task Force shall meet no fewer than 3 times and
9shall present its report and recommendations on improvements to
10enforcement of driving under the influence of cannabis, in
11electronic format, to the Governor and the General Assembly no
12later than July 1, 2020.
13    (e) The Department of State Police shall provide
14administrative support to the Task Force as needed. The
15Sentencing Policy Advisory Council shall provide data on
16driving under the influence of cannabis offenses and other data
17to the Task Force as needed.
18    (f) This Section is repealed on July 1, 2021.
 
19    (625 ILCS 5/11-502.1)
20    Sec. 11-502.1. Possession of medical cannabis in a motor
21vehicle.
22    (a) No driver, who is a medical cannabis cardholder, may
23use medical cannabis within the passenger area of any motor
24vehicle upon a highway in this State.
25    (b) No driver, who is a medical cannabis cardholder, a

 

 

HB1438 Enrolled- 593 -LRB101 04919 JRG 49928 b

1medical cannabis designated caregiver, medical cannabis
2cultivation center agent, or dispensing organization agent may
3possess medical cannabis within any area of any motor vehicle
4upon a highway in this State except in a sealed, odor-proof,
5and child-resistant tamper-evident medical cannabis container.
6    (c) No passenger, who is a medical cannabis card holder, a
7medical cannabis designated caregiver, or medical cannabis
8dispensing organization agent may possess medical cannabis
9within any passenger area of any motor vehicle upon a highway
10in this State except in a sealed, odor-proof, and
11child-resistant tamper-evident medical cannabis container.
12    (d) Any person who violates subsections (a) through (c) of
13this Section:
14        (1) commits a Class A misdemeanor;
15        (2) shall be subject to revocation of his or her
16    medical cannabis card for a period of 2 years from the end
17    of the sentence imposed;
18        (4) shall be subject to revocation of his or her status
19    as a medical cannabis caregiver, medical cannabis
20    cultivation center agent, or medical cannabis dispensing
21    organization agent for a period of 2 years from the end of
22    the sentence imposed.
23(Source: P.A. 98-122, eff. 1-1-14.)
 
24    (625 ILCS 5/11-502.15 new)
25    Sec. 11-502.15. Possession of adult use cannabis in a motor

 

 

HB1438 Enrolled- 594 -LRB101 04919 JRG 49928 b

1vehicle.
2    (a) No driver may use cannabis within the passenger area of
3any motor vehicle upon a highway in this State.
4    (b) No driver may possess cannabis within any area of any
5motor vehicle upon a highway in this State except in a sealed,
6odor-proof, child-resistant cannabis container.
7    (c) No passenger may possess cannabis within any passenger
8area of any motor vehicle upon a highway in this State except
9in a sealed, odor-proof, child-resistant cannabis container.
10    (d) Any person who knowingly violates subsection (a), (b),
11or (c) of this Section commits a Class A misdemeanor.
 
12    Section 900-39. The Juvenile Court Act of 1987 is amended
13by changing Section 5-401 as follows:
 
14    (705 ILCS 405/5-401)
15    Sec. 5-401. Arrest and taking into custody of a minor.
16    (1) A law enforcement officer may, without a warrant,
17        (a) arrest a minor whom the officer with probable cause
18    believes to be a delinquent minor; or
19        (b) take into custody a minor who has been adjudged a
20    ward of the court and has escaped from any commitment
21    ordered by the court under this Act; or
22        (c) take into custody a minor whom the officer
23    reasonably believes has violated the conditions of
24    probation or supervision ordered by the court.

 

 

HB1438 Enrolled- 595 -LRB101 04919 JRG 49928 b

1    (2) Whenever a petition has been filed under Section 5-520
2and the court finds that the conduct and behavior of the minor
3may endanger the health, person, welfare, or property of the
4minor or others or that the circumstances of his or her home
5environment may endanger his or her health, person, welfare or
6property, a warrant may be issued immediately to take the minor
7into custody.
8    (3) Except for minors accused of violation of an order of
9the court, any minor accused of any act under federal or State
10law, or a municipal or county ordinance that would not be
11illegal if committed by an adult, cannot be placed in a jail,
12municipal lockup, detention center, or secure correctional
13facility. Juveniles accused with underage consumption and
14underage possession of alcohol or cannabis cannot be placed in
15a jail, municipal lockup, detention center, or correctional
16facility.
17(Source: P.A. 90-590, eff. 1-1-99.)
 
18    Section 900-40. The Cannabis Control Act is amended by
19changing Sections 4, 5, 5.1, 5.3, and 8 as follows:
 
20    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
21    Sec. 4. Except as otherwise provided in the Cannabis
22Regulation and Tax Act, it It is unlawful for any person
23knowingly to possess cannabis.
24Any person who violates this Section section with respect to:

 

 

HB1438 Enrolled- 596 -LRB101 04919 JRG 49928 b

1        (a) not more than 10 grams of any substance containing
2    cannabis is guilty of a civil law violation punishable by a
3    minimum fine of $100 and a maximum fine of $200. The
4    proceeds of the fine shall be payable to the clerk of the
5    circuit court. Within 30 days after the deposit of the
6    fine, the clerk shall distribute the proceeds of the fine
7    as follows:
8            (1) $10 of the fine to the circuit clerk and $10 of
9        the fine to the law enforcement agency that issued the
10        citation; the proceeds of each $10 fine distributed to
11        the circuit clerk and each $10 fine distributed to the
12        law enforcement agency that issued the citation for the
13        violation shall be used to defer the cost of automatic
14        expungements under paragraph (2.5) of subsection (a)
15        of Section 5.2 of the Criminal Identification Act;
16            (2) $15 to the county to fund drug addiction
17        services;
18            (3) $10 to the Office of the State's Attorneys
19        Appellate Prosecutor for use in training programs;
20            (4) $10 to the State's Attorney; and
21            (5) any remainder of the fine to the law
22        enforcement agency that issued the citation for the
23        violation.
24        With respect to funds designated for the Department of
25    State Police, the moneys shall be remitted by the circuit
26    court clerk to the Department of State Police within one

 

 

HB1438 Enrolled- 597 -LRB101 04919 JRG 49928 b

1    month after receipt for deposit into the State Police
2    Operations Assistance Fund. With respect to funds
3    designated for the Department of Natural Resources, the
4    Department of Natural Resources shall deposit the moneys
5    into the Conservation Police Operations Assistance Fund;
6        (b) more than 10 grams but not more than 30 grams of
7    any substance containing cannabis is guilty of a Class B
8    misdemeanor;
9        (c) more than 30 grams but not more than 100 grams of
10    any substance containing cannabis is guilty of a Class A
11    misdemeanor; provided, that if any offense under this
12    subsection (c) is a subsequent offense, the offender shall
13    be guilty of a Class 4 felony;
14        (d) more than 100 grams but not more than 500 grams of
15    any substance containing cannabis is guilty of a Class 4
16    felony; provided that if any offense under this subsection
17    (d) is a subsequent offense, the offender shall be guilty
18    of a Class 3 felony;
19        (e) more than 500 grams but not more than 2,000 grams
20    of any substance containing cannabis is guilty of a Class 3
21    felony;
22        (f) more than 2,000 grams but not more than 5,000 grams
23    of any substance containing cannabis is guilty of a Class 2
24    felony;
25        (g) more than 5,000 grams of any substance containing
26    cannabis is guilty of a Class 1 felony.

 

 

HB1438 Enrolled- 598 -LRB101 04919 JRG 49928 b

1(Source: P.A. 99-697, eff. 7-29-16.)
 
2    (720 ILCS 550/5)  (from Ch. 56 1/2, par. 705)
3    Sec. 5. Except as otherwise provided in the Cannabis
4Regulation and Tax Act, it It is unlawful for any person
5knowingly to manufacture, deliver, or possess with intent to
6deliver, or manufacture, cannabis. Any person who violates this
7Section section with respect to:
8    (a) not more than 2.5 grams of any substance containing
9cannabis is guilty of a Class B misdemeanor;
10    (b) more than 2.5 grams but not more than 10 grams of any
11substance containing cannabis is guilty of a Class A
12misdemeanor;
13    (c) more than 10 grams but not more than 30 grams of any
14substance containing cannabis is guilty of a Class 4 felony;
15    (d) more than 30 grams but not more than 500 grams of any
16substance containing cannabis is guilty of a Class 3 felony for
17which a fine not to exceed $50,000 may be imposed;
18    (e) more than 500 grams but not more than 2,000 grams of
19any substance containing cannabis is guilty of a Class 2 felony
20for which a fine not to exceed $100,000 may be imposed;
21    (f) more than 2,000 grams but not more than 5,000 grams of
22any substance containing cannabis is guilty of a Class 1 felony
23for which a fine not to exceed $150,000 may be imposed;
24    (g) more than 5,000 grams of any substance containing
25cannabis is guilty of a Class X felony for which a fine not to

 

 

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1exceed $200,000 may be imposed.
2(Source: P.A. 90-397, eff. 8-15-97.)
 
3    (720 ILCS 550/5.1)  (from Ch. 56 1/2, par. 705.1)
4    Sec. 5.1. Cannabis Trafficking.
5    (a) Except for purposes authorized by this Act or the
6Cannabis Regulation and Tax Act, any person who knowingly
7brings or causes to be brought into this State for the purpose
8of manufacture or delivery or with the intent to manufacture or
9deliver 2,500 grams or more of cannabis in this State or any
10other state or country is guilty of cannabis trafficking.
11    (b) A person convicted of cannabis trafficking shall be
12sentenced to a term of imprisonment not less than twice the
13minimum term and fined an amount as authorized by subsection
14(f) or (g) of Section 5 of this Act, based upon the amount of
15cannabis brought or caused to be brought into this State, and
16not more than twice the maximum term of imprisonment and fined
17twice the amount as authorized by subsection (f) or (g) of
18Section 5 of this Act, based upon the amount of cannabis
19brought or caused to be brought into this State.
20(Source: P.A. 90-397, eff. 8-15-97.)
 
21    (720 ILCS 550/5.3)
22    Sec. 5.3. Unlawful use of cannabis-based product
23manufacturing equipment.
24    (a) A person commits unlawful use of cannabis-based product

 

 

HB1438 Enrolled- 600 -LRB101 04919 JRG 49928 b

1manufacturing equipment when he or she knowingly engages in the
2possession, procurement, transportation, storage, or delivery
3of any equipment used in the manufacturing of any
4cannabis-based product using volatile or explosive gas,
5including, but not limited to, canisters of butane gas, with
6the intent to manufacture, compound, covert, produce, derive,
7process, or prepare either directly or indirectly any
8cannabis-based product.
9    (b) This Section does not apply to a cultivation center or
10cultivation center agent that prepares medical cannabis or
11cannabis-infused products in compliance with the Compassionate
12Use of Medical Cannabis Pilot Program Act and Department of
13Public Health and Department of Agriculture rules.
14    (c) Sentence. A person who violates this Section is guilty
15of a Class 2 felony.
16    (d) This Section does not apply to craft growers,
17cultivation centers, and infuser organizations licensed under
18the Cannabis Regulation and Tax Act.
19    (e) This Section does not apply to manufacturers of
20cannabis-based product manufacturing equipment or transporting
21organizations with documentation identifying the seller and
22purchaser of the equipment if the seller or purchaser is a
23craft grower, cultivation center, or infuser organization
24licensed under the Cannabis Regulation and Tax Act.
25(Source: P.A. 99-697, eff. 7-29-16.)
 

 

 

HB1438 Enrolled- 601 -LRB101 04919 JRG 49928 b

1    (720 ILCS 550/8)  (from Ch. 56 1/2, par. 708)
2    Sec. 8. Except as otherwise provided in the Cannabis
3Regulation and Tax Act, it It is unlawful for any person
4knowingly to produce the Cannabis cannabis sativa plant or to
5possess such plants unless production or possession has been
6authorized pursuant to the provisions of Section 11 or 15.2 of
7the Act. Any person who violates this Section with respect to
8production or possession of:
9    (a) Not more than 5 plants is guilty of a civil violation
10punishable by a minimum fine of $100 and a maximum fine of
11$200. The proceeds of the fine are payable to the clerk of the
12circuit court. Within 30 days after the deposit of the fine,
13the clerk shall distribute the proceeds of the fine as follows:
14        (1) $10 of the fine to the circuit clerk and $10 of the
15    fine to the law enforcement agency that issued the
16    citation; the proceeds of each $10 fine distributed to the
17    circuit clerk and each $10 fine distributed to the law
18    enforcement agency that issued the citation for the
19    violation shall be used to defer the cost of automatic
20    expungements under paragraph (2.5) of subsection (a) of
21    Section 5.2 of the Criminal Identification Act;
22        (2) $15 to the county to fund drug addiction services;
23        (3) $10 to the Office of the State's Attorneys
24    Appellate Prosecutor for use in training programs;
25        (4) $10 to the State's Attorney; and
26        (5) any remainder of the fine to the law enforcement

 

 

HB1438 Enrolled- 602 -LRB101 04919 JRG 49928 b

1    agency that issued the citation for the violation.
2    With respect to funds designated for the Department of
3State Police, the moneys shall be remitted by the circuit court
4clerk to the Department of State Police within one month after
5receipt for deposit into the State Police Operations Assistance
6Fund. With respect to funds designated for the Department of
7Natural Resources, the Department of Natural Resources shall
8deposit the moneys into the Conservation Police Operations
9Assistance Fund. Class A misdemeanor.
10    (b) More than 5, but not more than 20 plants, is guilty of
11a Class 4 felony.
12    (c) More than 20, but not more than 50 plants, is guilty of
13a Class 3 felony.
14    (d) More than 50, but not more than 200 plants, is guilty
15of a Class 2 felony for which a fine not to exceed $100,000 may
16be imposed and for which liability for the cost of conducting
17the investigation and eradicating such plants may be assessed.
18Compensation for expenses incurred in the enforcement of this
19provision shall be transmitted to and deposited in the
20treasurer's office at the level of government represented by
21the Illinois law enforcement agency whose officers or employees
22conducted the investigation or caused the arrest or arrests
23leading to the prosecution, to be subsequently made available
24to that law enforcement agency as expendable receipts for use
25in the enforcement of laws regulating controlled substances and
26cannabis. If such seizure was made by a combination of law

 

 

HB1438 Enrolled- 603 -LRB101 04919 JRG 49928 b

1enforcement personnel representing different levels of
2government, the court levying the assessment shall determine
3the allocation of such assessment. The proceeds of assessment
4awarded to the State treasury shall be deposited in a special
5fund known as the Drug Traffic Prevention Fund.
6    (e) More than 200 plants is guilty of a Class 1 felony for
7which a fine not to exceed $100,000 may be imposed and for
8which liability for the cost of conducting the investigation
9and eradicating such plants may be assessed. Compensation for
10expenses incurred in the enforcement of this provision shall be
11transmitted to and deposited in the treasurer's office at the
12level of government represented by the Illinois law enforcement
13agency whose officers or employees conducted the investigation
14or caused the arrest or arrests leading to the prosecution, to
15be subsequently made available to that law enforcement agency
16as expendable receipts for use in the enforcement of laws
17regulating controlled substances and cannabis. If such seizure
18was made by a combination of law enforcement personnel
19representing different levels of government, the court levying
20the assessment shall determine the allocation of such
21assessment. The proceeds of assessment awarded to the State
22treasury shall be deposited in a special fund known as the Drug
23Traffic Prevention Fund.
24(Source: P.A. 98-1072, eff. 1-1-15.)
 
25    Section 900-42. The Code of Civil Procedure is amended by

 

 

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1changing Section 2-1401 as follows:
 
2    (735 ILCS 5/2-1401)  (from Ch. 110, par. 2-1401)
3    Sec. 2-1401. Relief from judgments.
4    (a) Relief from final orders and judgments, after 30 days
5from the entry thereof, may be had upon petition as provided in
6this Section. Writs of error coram nobis and coram vobis, bills
7of review and bills in the nature of bills of review are
8abolished. All relief heretofore obtainable and the grounds for
9such relief heretofore available, whether by any of the
10foregoing remedies or otherwise, shall be available in every
11case, by proceedings hereunder, regardless of the nature of the
12order or judgment from which relief is sought or of the
13proceedings in which it was entered. Except as provided in the
14Illinois Parentage Act of 2015, there shall be no distinction
15between actions and other proceedings, statutory or otherwise,
16as to availability of relief, grounds for relief or the relief
17obtainable.
18    (b) The petition must be filed in the same proceeding in
19which the order or judgment was entered but is not a
20continuation thereof. The petition must be supported by
21affidavit or other appropriate showing as to matters not of
22record. A petition to reopen a foreclosure proceeding must
23include as parties to the petition, but is not limited to, all
24parties in the original action in addition to the current
25record title holders of the property, current occupants, and

 

 

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1any individual or entity that had a recorded interest in the
2property before the filing of the petition. All parties to the
3petition shall be notified as provided by rule.
4    (b-5) A movant may present a meritorious claim under this
5Section if the allegations in the petition establish each of
6the following by a preponderance of the evidence:
7        (1) the movant was convicted of a forcible felony;
8        (2) the movant's participation in the offense was
9    related to him or her previously having been a victim of
10    domestic violence as perpetrated by an intimate partner;
11        (3) no evidence of domestic violence against the movant
12    was presented at the movant's sentencing hearing;
13        (4) the movant was unaware of the mitigating nature of
14    the evidence of the domestic violence at the time of
15    sentencing and could not have learned of its significance
16    sooner through diligence; and
17        (5) the new evidence of domestic violence against the
18    movant is material and noncumulative to other evidence
19    offered at the sentencing hearing, and is of such a
20    conclusive character that it would likely change the
21    sentence imposed by the original trial court.
22    Nothing in this subsection (b-5) shall prevent a movant
23from applying for any other relief under this Section or any
24other law otherwise available to him or her.
25    As used in this subsection (b-5):
26        "Domestic violence" means abuse as defined in Section

 

 

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1    103 of the Illinois Domestic Violence Act of 1986.
2        "Forcible felony" has the meaning ascribed to the term
3    in Section 2-8 of the Criminal Code of 2012.
4        "Intimate partner" means a spouse or former spouse,
5    persons who have or allegedly have had a child in common,
6    or persons who have or have had a dating or engagement
7    relationship.
8    (c) Except as provided in Section 20b of the Adoption Act
9and Section 2-32 of the Juvenile Court Act of 1987 or in a
10petition based upon Section 116-3 of the Code of Criminal
11Procedure of 1963, or in a motion to vacate and expunge
12convictions under the Cannabis Control Act as provided by
13subsection (i) of Section 5.2 of the Criminal Identification
14Act, the petition must be filed not later than 2 years after
15the entry of the order or judgment. Time during which the
16person seeking relief is under legal disability or duress or
17the ground for relief is fraudulently concealed shall be
18excluded in computing the period of 2 years.
19    (d) The filing of a petition under this Section does not
20affect the order or judgment, or suspend its operation.
21    (e) Unless lack of jurisdiction affirmatively appears from
22the record proper, the vacation or modification of an order or
23judgment pursuant to the provisions of this Section does not
24affect the right, title or interest in or to any real or
25personal property of any person, not a party to the original
26action, acquired for value after the entry of the order or

 

 

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1judgment but before the filing of the petition, nor affect any
2right of any person not a party to the original action under
3any certificate of sale issued before the filing of the
4petition, pursuant to a sale based on the order or judgment.
5When a petition is filed pursuant to this Section to reopen a
6foreclosure proceeding, notwithstanding the provisions of
7Section 15-1701 of this Code, the purchaser or successor
8purchaser of real property subject to a foreclosure sale who
9was not a party to the mortgage foreclosure proceedings is
10entitled to remain in possession of the property until the
11foreclosure action is defeated or the previously foreclosed
12defendant redeems from the foreclosure sale if the purchaser
13has been in possession of the property for more than 6 months.
14    (f) Nothing contained in this Section affects any existing
15right to relief from a void order or judgment, or to employ any
16existing method to procure that relief.
17(Source: P.A. 99-85, eff. 1-1-16; 99-384, eff. 1-1-16; 99-642,
18eff. 7-28-16; 100-1048, eff. 8-23-18.)
 
19    Section 900-45. The Condominium Property Act is amended by
20adding Section 33 as follows:
 
21    (765 ILCS 605/33 new)
22    Sec. 33. Limitations on the use of smoking cannabis. The
23condominium instruments of an association may prohibit or limit
24the smoking of cannabis, as the term "smoking" is defined in

 

 

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1the Cannabis Regulation and Tax Act, within a unit owner's
2unit. The condominium instruments and rules and regulations
3shall not otherwise restrict the consumption of cannabis by any
4other method within a unit owner's unit, or the limited common
5elements, but may restrict any form of consumption on the
6common elements.
 
7    Section 900-50. The Right to Privacy in the Workplace Act
8is amended by changing Section 5 as follows:
 
9    (820 ILCS 55/5)  (from Ch. 48, par. 2855)
10    Sec. 5. Discrimination for use of lawful products
11prohibited.
12    (a) Except as otherwise specifically provided by law,
13including Section 10-50 of the Cannabis Regulation and Tax Act,
14and except as provided in subsections (b) and (c) of this
15Section, it shall be unlawful for an employer to refuse to hire
16or to discharge any individual, or otherwise disadvantage any
17individual, with respect to compensation, terms, conditions or
18privileges of employment because the individual uses lawful
19products off the premises of the employer during nonworking and
20non-call hours. As used in this Section, "lawful products"
21means products that are legal under state law. For purposes of
22this Section, an employee is deemed on-call when the employee
23is scheduled with at least 24 hours' notice by his or her
24employer to be on standby or otherwise responsible for

 

 

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1performing tasks related to his or her employment either at the
2employer's premises or other previously designated location by
3his or her employer or supervisor to perform a work-related
4task. hours.
5    (b) This Section does not apply to any employer that is a
6non-profit organization that, as one of its primary purposes or
7objectives, discourages the use of one or more lawful products
8by the general public. This Section does not apply to the use
9of those lawful products which impairs an employee's ability to
10perform the employee's assigned duties.
11    (c) It is not a violation of this Section for an employer
12to offer, impose or have in effect a health, disability or life
13insurance policy that makes distinctions between employees for
14the type of coverage or the price of coverage based upon the
15employees' use of lawful products provided that:
16        (1) differential premium rates charged employees
17    reflect a differential cost to the employer; and
18        (2) employers provide employees with a statement
19    delineating the differential rates used by insurance
20    carriers.
21(Source: P.A. 87-807.)
 
22
ARTICLE 999.
23
MISCELLANEOUS PROVISIONS

 
24    Section 999-95. No acceleration or delay. Where this Act

 

 

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1makes changes in a statute that is represented in this Act by
2text that is not yet or no longer in effect (for example, a
3Section represented by multiple versions), the use of that text
4does not accelerate or delay the taking effect of (i) the
5changes made by this Act or (ii) provisions derived from any
6other Public Act.
 
7    Section 999-99. Effective date. This Act takes effect upon
8becoming law.