Sen. Heather A. Steans

Filed: 5/28/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1438

2    AMENDMENT NO. ______. Amend House Bill 1438 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1alcohol.
2    (b) In the interest of the health and public safety of the
3residents of Illinois, the General Assembly further finds and
4declares that cannabis should be regulated in a manner similar
5to alcohol so that:
6        (1) persons will have to show proof of age before
7    purchasing cannabis;
8        (2) selling, distributing, or transferring cannabis to
9    minors and other persons under 21 years of age shall remain
10    illegal;
11        (3) driving under the influence of cannabis shall
12    remain illegal;
13        (4) legitimate, taxpaying business people, and not
14    criminal actors, will conduct sales of cannabis;
15        (5) cannabis sold in this State will be tested,
16    labeled, and subject to additional regulation to ensure
17    that purchasers are informed and protected; and
18        (6) purchasers will be informed of any known health
19    risks associated with the use of cannabis, as concluded by
20    evidence-based, peer reviewed research.
21    (c) The General Assembly further finds and declares that it
22is necessary to ensure consistency and fairness in the
23application of this Act throughout the State and that,
24therefore, the matters addressed by this Act are, except as
25specified in this Act, matters of statewide concern.
26    (d) The General Assembly further finds and declares that

 

 

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1this Act shall not diminish the State's duties and commitment
2to seriously ill patients registered under the Compassionate
3Use of Medical Cannabis Pilot Program Act, nor alter the
4protections granted to them.
5    (e) The General Assembly supports and encourages labor
6neutrality in the cannabis industry and further finds and
7declares that employee workplace safety shall not be diminished
8and employer workplace policies shall be interpreted broadly to
9protect employee safety.
 
10    Section 1-10. Definitions. In this Act:
11    "Adult Use Cultivation Center License" means a license
12issued by the Department of Agriculture that permits a person
13to act as a cultivation center under this Act and any
14administrative rule made in furtherance of this Act.
15    "Adult Use Dispensing Organization License" means a
16license issued by the Department of Financial and Professional
17Regulation that permits a person to act as a dispensing
18organization under this Act and any administrative rule made in
19furtherance of this Act.
20    "Advertise" means to engage in promotional activities
21including, but not limited to: newspaper, radio, Internet and
22electronic media, and television advertising; the distribution
23of fliers and circulars; and the display of window and interior
24signs.
25    "BLS Region" means a region in Illinois used by the United

 

 

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1States Bureau of Labor Statistics to gather and categorize
2certain employment and wage data. The 17 such regions in
3Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
4Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
5Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
6Rockford, St. Louis, Springfield, Northwest Illinois
7nonmetropolitan area, West Central Illinois nonmetropolitan
8area, East Central Illinois nonmetropolitan area, and South
9Illinois nonmetropolitan area.
10    "Cannabis" means marijuana, hashish, and other substances
11that are identified as including any parts of the plant
12Cannabis sativa and including derivatives or subspecies, such
13as indica, of all strains of cannabis, whether growing or not;
14the seeds thereof, the resin extracted from any part of the
15plant; and any compound, manufacture, salt, derivative,
16mixture, or preparation of the plant, its seeds, or resin,
17including tetrahydrocannabinol (THC) and all other naturally
18produced cannabinol derivatives, whether produced directly or
19indirectly by extraction; however, "cannabis" does not include
20the mature stalks of the plant, fiber produced from the stalks,
21oil or cake made from the seeds of the plant, any other
22compound, manufacture, salt, derivative, mixture, or
23preparation of the mature stalks (except the resin extracted
24from it), fiber, oil or cake, or the sterilized seed of the
25plant that is incapable of germination. "Cannabis" does not
26include industrial hemp as defined and authorized under the

 

 

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

 

 

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1    "Cannabis plant monitoring system" or "plant monitoring
2system" means a system that includes, but is not limited to,
3testing and data collection established and maintained by the
4cultivation center, craft grower, or processing organization
5and that is available to the Department of Revenue, the
6Department of Agriculture, the Department of Financial and
7Professional Regulation, and the Department of State Police for
8the purposes of documenting each cannabis plant and monitoring
9plant development throughout the life cycle of a cannabis plant
10cultivated for the intended use by a customer from seed
11planting to final packaging.
12    "Cannabis testing facility" means an entity registered by
13the Department of Agriculture to test cannabis for potency and
14contaminants.
15    "Clone" means a plant section from a female cannabis plant
16not yet rootbound, growing in a water solution or other
17propagation matrix, that is capable of developing into a new
18plant.
19    "Community College Cannabis Vocational Training Pilot
20Program faculty participant" means a person who is 21 years of
21age or older, licensed by the Department of Agriculture, and is
22employed or contracted by an Illinois community college to
23provide student instruction using cannabis plants at an
24Illinois Community College.
25    "Community College Cannabis Vocational Training Pilot
26Program faculty participant Agent Identification Card" means a

 

 

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1document issued by the Department of Agriculture that
2identifies a person as Community College Cannabis Vocational
3Training Pilot Program faculty participant.
4    "Conditional Adult Use Dispensing Organization License"
5means a license awarded to top-scoring applicants for an Adult
6Use Dispensing Organization License that reserves the right to
7an adult use dispensing organization license if the applicant
8meets certain conditions described in this Act, but does not
9entitle the recipient to begin purchasing or selling cannabis
10or cannabis-infused products.
11    "Conditional Adult Use Cultivation Center License" means a
12license awarded to top-scoring applicants for an Adult Use
13Cultivation Center License that reserves the right to an Adult
14Use Cultivation Center License if the applicant meets certain
15conditions as determined by the Department of Agriculture by
16rule, but does not entitle the recipient to begin growing,
17processing, or selling cannabis or cannabis-infused products.
18    "Craft grower" means a facility operated by an organization
19or business that is licensed by the Department of Agriculture
20to cultivate, dry, cure, and package cannabis and perform other
21necessary activities to make cannabis available for sale at a
22dispensing organization or use at a processing organization. A
23craft grower may contain up to 5,000 square feet of canopy
24space on its premises for plants in the flowering state. The
25Department of Agriculture may authorize an increase or decrease
26of flowering stage cultivation space in increments of 3,000

 

 

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1square feet by rule based on market need, craft grower
2capacity, and the licensee's history of compliance or
3noncompliance, with a maximum space of 14,000 square feet for
4cultivating plants in the flowering stage, which must be
5cultivated in all stages of growth in an enclosed and secure
6area. A craft grower may share premises with a processing
7organization or a dispensing organization, or both, provided
8each licensee stores currency and cannabis or cannabis-infused
9products in a separate secured vault to which the other
10licensee does not have access or all licensees sharing a vault
11share more than 50% of the same ownership.
12    "Craft grower agent" means a principal officer, board
13member, employee, or other agent of a craft grower who is 21
14years of age or older.
15    "Craft Grower Agent Identification Card" means a document
16issued by the Department of Agriculture that identifies a
17person as a craft grower agent.
18    "Cultivation center" means a facility operated by an
19organization or business that is licensed by the Department of
20Agriculture to cultivate, process, transport (unless otherwise
21limited by this Act), and perform other necessary activities to
22provide cannabis and cannabis-infused products to cannabis
23business establishments.
24    "Cultivation center agent" means a principal officer,
25board member, employee, or other agent of a cultivation center
26who is 21 years of age or older.

 

 

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1    "Cultivation Center Agent Identification Card" means a
2document issued by the Department of Agriculture that
3identifies a person as a cultivation center agent.
4    "Currency" means currency and coin of the United States.
5    "Dispensary" means a facility operated by a dispensing
6organization at which activities licensed by this Act may
7occur.
8    "Dispensing organization" means a facility operated by an
9organization or business that is licensed by the Department of
10Financial and Professional Regulation to acquire cannabis from
11a cultivation center, craft grower, processing organization,
12or another dispensary for the purpose of selling or dispensing
13cannabis, cannabis-infused products, cannabis seeds,
14paraphernalia, or related supplies under this Act to purchasers
15or to qualified registered medical cannabis patients and
16caregivers. As used in this Act, dispensary organization shall
17include a registered medical cannabis organization as defined
18in the Compassionate Use of Medical Cannabis Pilot Program Act
19or its successor Act that has obtained an Early Approval Adult
20Use Dispensing Organization License.
21    "Dispensing organization agent" means a principal officer,
22employee, or agent of a dispensing organization who is 21 years
23of age or older.
24    "Dispensing organization agent identification card" means
25a document issued by the Department of Financial and
26Professional Regulation that identifies a person as a

 

 

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

 

 

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

 

 

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

 

 

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1for cannabis products. This includes mature plants as follows:
2        (1) if greater than 2 stigmas are visible at each
3    internode of the plant; or
4        (2) if the cannabis plant is in an area that has been
5    intentionally deprived of light for a period of time
6    intended to produce flower buds and induce maturation, from
7    the moment the light deprivation began through the
8    remainder of the marijuana plant growth cycle.
9    "Individual" means a natural person.
10    "Infuser organization" or "infuser" means a facility
11operated by an organization or business that is licensed by the
12Department of Agriculture to directly incorporate cannabis or
13cannabis concentrate into a product formulation to produce a
14cannabis-infused product.
15    "Kief" means the resinous crystal-like trichomes that are
16found on cannabis and that are accumulated, resulting in a
17higher concentration of cannabinoids, untreated by heat or
18pressure, or extracted using a solvent.
19    "Labor peace agreement" means an agreement between a
20cannabis business establishment and any labor organization
21recognized under the National Labor Relations Act, referred to
22in this Act as a bona fide labor organization, that prohibits
23labor organizations and members from engaging in picketing,
24work stoppages, boycotts, and any other economic interference
25with the cannabis business establishment. This agreement means
26that the cannabis business establishment has agreed not to

 

 

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1disrupt efforts by the bona fide labor organization to
2communicate with, and attempt to organize and represent, the
3cannabis business establishment's employees. The agreement
4shall provide a bona fide labor organization access at
5reasonable times to areas in which the cannabis business
6establishment's employees work, for the purpose of meeting with
7employees to discuss their right to representation, employment
8rights under State law, and terms and conditions of employment.
9This type of agreement shall not mandate a particular method of
10election or certification of the bona fide labor organization.
11    "Limited access area" means a building, room, or other area
12under the control of a cannabis dispensing organization
13licensed under this Act and upon the licensed premises with
14access limited to purchasers, dispensing organization owners
15and other dispensing organization agents, or service
16professionals conducting business with the dispensing
17organization.
18    "Member of an impacted family" means an individual who has
19a parent, legal guardian, child, spouse, or dependent, or was a
20dependent of an individual who, prior to the effective date of
21this Act, was arrested for, convicted of, or adjudicated
22delinquent for any offense that is eligible for expungement
23under this Act.
24    "Mother plant" means a cannabis plant that is cultivated or
25maintained for the purpose of generating clones, and that will
26not be used to produce plant material for sale to an infuser or

 

 

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1dispensing organization.
2    "Ordinary public view" means within the sight line with
3normal visual range of a person, unassisted by visual aids,
4from a public street or sidewalk adjacent to real property, or
5from within an adjacent property.
6    "Ownership and control" means ownership of at least 51% of
7the business, including corporate stock if a corporation, and
8control over the management and day-to-day operations of the
9business and an interest in the capital, assets, and profits
10and losses of the business proportionate to percentage of
11ownership.
12    "Person" means a natural individual, firm, partnership,
13association, joint stock company, joint venture, public or
14private corporation, limited liability company, or a receiver,
15executor, trustee, guardian, or other representative appointed
16by order of any court.
17    "Possession limit" means the amount of cannabis under
18Section 10-10 that may be possessed at any one time by a person
1921 years of age or older or who is a registered qualifying
20medical cannabis patient or caregiver under the Compassionate
21Use of Medical Cannabis Pilot Program Act.
22    "Principal officer" includes a cannabis business
23establishment applicant or licensed cannabis business
24establishment's board member, owner with more than 1% interest
25of the total cannabis business establishment or more than 5%
26interest of the total cannabis business establishment of a

 

 

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

 

 

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1acquires cannabis for a valuable consideration. "Purchaser"
2does not include a cardholder under the Compassionate Use of
3Medical Cannabis Pilot Program Act.
4    "Qualified Social Equity Applicant" means a Social Equity
5Applicant who has been awarded a conditional license under this
6Act to operate a cannabis business establishment.
7    "Resided" means an individual's primary residence was
8located within the relevant geographic area as established by 2
9of the following:
10        (1) a signed lease agreement that includes the
11    applicant's name;
12        (2) a property deed that includes the applicant's name;
13        (3) school records;
14        (4) a voter registration card;
15        (5) an Illinois driver's license, an Illinois
16    Identification Card, or an Illinois Person with a
17    Disability Identification Card;
18        (6) a paycheck stub;
19        (7) a utility bill; or
20        (8) any other proof of residency or other information
21    necessary to establish residence as provided by rule.
22    "Smoking" means the inhalation of smoke caused by the
23combustion of cannabis.
24    "Social Equity Applicant" means an applicant that is an
25Illinois resident that meets one of the following criteria:
26        (1) an applicant with at least 51% ownership and

 

 

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1    control by one or more individuals who have resided for at
2    least 5 of the preceding 10 years in a Disproportionately
3    Impacted Area;
4        (2) an applicant with at least 51% ownership and
5    control by one or more individuals who:
6            (i) have been arrested for, convicted of, or
7        adjudicated delinquent for any offense that is
8        eligible for expungement under this Act; or
9            (ii) is a member of an impacted family;
10        (3) for applicants with a minimum of 10 full-time
11    employees, an applicant with at least 51% of current
12    employees who:
13            (i) currently reside in a Disproportionately
14        Impacted Area; or
15            (ii) have been arrested for, convicted of, or
16        adjudicated delinquent for any offense that is
17        eligible for expungement under this Act or member of an
18        impacted family.
19    Nothing in this Act shall be construed to preempt or limit
20the duties of any employer under the Job Opportunities for
21Qualified Applicants Act. Nothing in this Act shall permit an
22employer to require an employee to disclose sealed or expunged
23offenses, unless otherwise required by law.
24    "Tincture" means a cannabis-infused solution, typically
25comprised of alcohol, glycerin, or vegetable oils, derived
26either directly from the cannabis plant or from a processed

 

 

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1cannabis extract. A tincture is not an alcoholic liquor as
2defined in the Liquor Control Act of 1934. A tincture shall
3include a calibrated dropper or other similar device capable of
4accurately measuring servings.
5    "Transporting organization" or "transporter" means an
6organization or business that is licensed by the Department of
7Agriculture to transport cannabis on behalf of a cannabis
8business establishment or a community college licensed under
9the Community College Cannabis Vocational Training Pilot
10Program.
11    "Transporting organization agent" means a principal
12officer, board member, employee, or agent of a transporting
13organization.
14    "Transporting organization agent identification card"
15means a document issued by the Department of Agriculture that
16identifies a person as a transporting organization agent.
17    "Unit of local government" means any county, city, village,
18or incorporated town.
19    "Vegetative stage" means the stage of cultivation in which
20a cannabis plant is propagated to produce additional cannabis
21plants or reach a sufficient size for production. This includes
22seedlings, clones, mothers, and other immature cannabis plants
23as follows:
24        (1) if the cannabis plant is in an area that has not
25    been intentionally deprived of light for a period of time
26    intended to produce flower buds and induce maturation, it

 

 

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1    has no more than 2 stigmas visible at each internode of the
2    cannabis plant; or
3        (2) any cannabis plant that is cultivated solely for
4    the purpose of propagating clones and is never used to
5    produce cannabis.
 
6
ARTICLE 5.
7
AUTHORITY

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

 

 

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1infuser organizations, transporting organizations, and their
2principal officers, Agents-in-Charge, and agents for
3violations of this Act and any rules adopted under this Act.
 
4    Section 5-15. Department of Financial and Professional
5Regulation. The Department of Financial and Professional
6Regulation shall enforce the provisions of this Act relating to
7the oversight and registration of dispensing organizations and
8agents, including the issuance of identification cards for
9dispensing organization agents. The Department of Financial
10and Professional Regulation may suspend or revoke the license
11of, or impose other penalties upon, dispensing organizations
12for violations of this Act and any rules adopted under this
13Act.
 
14    Section 5-20. Background checks.
15    (a) Through the Department of State Police, the licensing
16or issuing Department shall conduct a criminal history record
17check of the prospective principal officers, board members, and
18agents of a cannabis business establishment applying for a
19license or identification card under this Act.
20    Each cannabis business establishment prospective principal
21officer, board member, or agent shall submit his or her
22fingerprints to the Department of State Police in the form and
23manner prescribed by the Department of State Police.
24    Such fingerprints shall be transmitted through a live scan

 

 

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1fingerprint vendor licensed by the Department of Financial and
2Professional Regulation. These fingerprints shall be checked
3against the fingerprint records now and hereafter filed in the
4Department of State Police and Federal Bureau of Investigation
5criminal history records databases. The Department of State
6Police shall charge a fee for conducting the criminal history
7record check, which shall be deposited into the State Police
8Services Fund and shall not exceed the actual cost of the State
9and national criminal history record check. The Department of
10State Police shall furnish, pursuant to positive
11identification, all Illinois conviction information and shall
12forward the national criminal history record information to:
13        (i) the Department of Agriculture, with respect to a
14    cultivation center, craft grower, infuser organization, or
15    transporting organization; or
16        (ii) the Department of Financial and Professional
17    Regulation, with respect to a dispensing organization.
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    (c) All applications for licensure under this Act by
23applicants with criminal convictions shall be subject to
24Sections 2105-131, 2105-135, and 2105-205 of the Department of
25Professional Regulation Law of the Civil Administrative Code of
26Illinois.
 

 

 

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

 

 

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1        (1) The Director of Public Health, or his or her
2    designee, who shall serve as the Chairperson.
3        (2) The Secretary of Human Services, or his or her
4    designee, who shall serve as the Co-Chairperson.
5        (3) A representative of the poison control center.
6        (4) A pharmacologist.
7        (5) A pulmonologist.
8        (6) An emergency room physician.
9        (7) An emergency medical technician, paramedic, or
10    other first responder.
11        (8) A nurse practicing in a school-based setting.
12        (9) A psychologist.
13        (10) A neonatologist.
14        (11) An obstetrician-gynecologist.
15        (12) A drug epidemiologist.
16        (13) A medical toxicologist.
17        (14) An addiction psychiatrist.
18        (15) A pediatrician.
19        (16) A representative of a statewide professional
20    public health organization.
21        (17) A representative of a statewide hospital/health
22    system association.
23        (18) An individual registered as a patient in the
24    Compassionate Use of Medical Cannabis Pilot Program.
25        (19) An individual registered as a caregiver in the
26    Compassionate Use of Medical Cannabis Pilot Program.

 

 

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1        (20) A representative of an organization focusing on
2    cannabis-related policy.
3        (21) A representative of an organization focusing on
4    the civil liberties of individuals who reside in Illinois.
5        (22) A representative of the criminal defense or civil
6    aid community of attorneys serving Disproportionately
7    Impacted Areas.
8        (23) A representative of licensed cannabis business
9    establishments.
10        (24) A Social Equity Applicant.
11    (c) The Committee shall provide a report by September 30,
122021, and every year thereafter, to the General Assembly. The
13Department of Public Health shall make the report available on
14its website.
 
15    Section 5-30. Department of Human Services. The Department
16of Human Services shall identify evidence-based programs for
17preventive mental health, the prevention or treatment of
18alcohol abuse, tobacco use, illegal drug use (including
19prescription drugs), and cannabis use by pregnant women, and
20make policy recommendations, as appropriate, to the Adult Use
21Cannabis Health Advisory Committee. The Department of Human
22Services shall develop and disseminate educational materials
23for purchasers based on recommendations received from the
24Department of Public Health and the Adult Use Cannabis Health
25Advisory Committee.
 

 

 

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1    Section 5-45. Illinois Cannabis Regulation Oversight
2Officer.
3    (a) The position of Illinois Cannabis Regulation Oversight
4Officer is created within the Department of Financial and
5Professional Regulation under the Secretary of Financial and
6Professional Regulation. The Illinois Cannabis Regulation
7Oversight Officer shall be appointed by the Governor with the
8advice and consent of the Senate. The term of office of the
9Officer shall expire on the third Monday of January in
10odd-numbered years provided that he or she shall hold office
11until a successor is appointed and qualified. In case of
12vacancy in office during the recess of the Senate, the Governor
13shall make a temporary appointment until the next meeting of
14the Senate, when the Governor shall nominate some person to
15fill the office, and any person so nominated who is confirmed
16by the Senate shall hold office during the remainder of the
17term and until his or her successor is appointed and qualified.
18    (b) The Illinois Cannabis Regulation Oversight Officer
19may:
20        (1) maintain a staff;
21        (2) make recommendations for policy, statute, and rule
22    changes;
23        (3) collect data both in Illinois and outside Illinois
24    regarding the regulation of cannabis;
25        (4) compile or assist in the compilation of any reports

 

 

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1    required by this Act;
2        (5) ensure the coordination of efforts between various
3    State agencies involved in regulating and taxing the sale
4    of cannabis in Illinois; and
5        (6) encourage, promote, suggest, and report best
6    practices for ensuring diversity in the cannabis industry
7    in Illinois.
8    (c) The Illinois Cannabis Regulation Oversight Officer
9shall not:
10        (1) participate in the issuance of any business
11    licensing or the making of awards; or
12        (2) participate in any adjudicative decision-making
13    process involving licensing or licensee discipline.
14    (d) Any funding required for the Illinois Cannabis
15Regulation Oversight Officer, its staff, or its activities
16shall be drawn from the Cannabis Regulation Fund.
17    (e) The Illinois Cannabis Regulation Oversight Officer
18shall commission and publish a disparity and availability study
19by March 1, 2021 that: (1) evaluates whether there exists
20discrimination in the State's cannabis industry; and (2) if so,
21evaluates the impact of such discrimination on the State and
22includes recommendations to the Department of Financial and
23Professional Regulation and the Department of Agriculture for
24reducing or eliminating any identified barriers to entry in the
25cannabis market. The Illinois Cannabis Regulation Oversight
26Officer shall forward a copy of its findings and

 

 

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1recommendations to the Department of Financial and
2Professional Regulation, the Department of Agriculture, the
3Department of Commerce and Economic Opportunity, the General
4Assembly, and the Governor.
5    (f) The Illinois Cannabis Regulation Oversight Officer may
6compile, collect, or otherwise gather data necessary for the
7administration of this Act and to carry out the Officer's duty
8relating to the recommendation of policy changes. The Illinois
9Cannabis Regulation Oversight Officer may direct the
10Department of Agriculture, Department of Financial and
11Professional Regulation, Department of Public Health,
12Department of Human Services, and Department of Commerce and
13Economic Opportunity to assist in the compilation, collection,
14and data gathering authorized pursuant to this subsection. The
15Illinois Cannabis Regulation Oversight Officer shall compile
16all of the data into a single report and submit the report to
17the Governor and the General Assembly and publish the report on
18its website.
 
19
ARTICLE 7.
20
SOCIAL EQUITY IN THE CANNABIS INDUSTRY

 
21    Section 7-1. Findings.
22    The General Assembly finds that the medical cannabis
23industry, established in 2014 through the Compassionate Use of
24Medical Cannabis Pilot Program Act, has shown that additional

 

 

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1efforts are needed to reduce barriers to ownership. Through
2that program, 55 licenses for dispensing organizations and 20
3licenses for cultivation centers have been issued. Those
4licenses are held by only a small number of businesses, the
5ownership of which does not sufficiently meet the General
6Assembly's interest in business ownership that reflects the
7population of the State of Illinois and that demonstrates the
8need to reduce barriers to entry for individuals and
9communities most adversely impacted by the enforcement of
10cannabis-related laws.
11    (b) In the interest of establishing a legal cannabis
12industry that is equitable and accessible to those most
13adversely impacted by the enforcement of drug-related laws in
14this State, including cannabis-related laws, the General
15Assembly finds and declares that a social equity program should
16be established.
17    (c) The General Assembly also finds and declares that
18individuals who have been arrested or incarcerated due to drug
19laws suffer long-lasting negative consequences, including
20impacts to employment, business ownership, housing, health,
21and long-term financial well-being.
22    (d) The General Assembly also finds and declares that
23family members, especially children, and communities of those
24who have been arrested or incarcerated due to drug laws, suffer
25from emotional, psychological, and financial harms as a result
26of such arrests or incarcerations.

 

 

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1    (e) Furthermore, the General Assembly finds and declares
2that certain communities have disproportionately suffered the
3harms of enforcement of cannabis-related laws. Those
4communities face greater difficulties accessing traditional
5banking systems and capital for establishing businesses.
6    (f) The General Assembly also finds that individuals who
7have resided in areas of high poverty suffer negative
8consequences, including barriers to entry in employment,
9business ownership, housing, health, and long-term financial
10well-being.
11    (g) The General Assembly also finds and declares that
12promotion of business ownership by individuals who have resided
13in areas of high poverty and high enforcement of
14cannabis-related laws furthers an equitable cannabis industry.
15    (h) Therefore, in the interest of remedying the harms
16resulting from the disproportionate enforcement of
17cannabis-related laws, the General Assembly finds and declares
18that a social equity program should offer, among other things,
19financial assistance and license application benefits to
20individuals most directly and adversely impacted by the
21enforcement of cannabis-related laws who are interested in
22starting cannabis business establishments.
 
23    Section 7-10. Cannabis Business Development Fund.
24    (a) There is created in the State treasury a special fund,
25which shall be held separate and apart from all other State

 

 

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1moneys, to be known as the Cannabis Business Development Fund.
2The Cannabis Business Development Fund shall be exclusively
3used for the following purposes:
4        (1) to provide low-interest rate loans to Social Equity
5    Applicants to pay for ordinary and necessary expenses to
6    start and operate a cannabis business establishment
7    permitted by this Act;
8        (2) to provide grants to Qualified Social Equity
9    Applicants to pay for ordinary and necessary expenses to
10    start and operate a cannabis business establishment
11    permitted by this Act;
12        (3) to compensate the Department of Commerce and
13    Economic Opportunity for any costs related to the provision
14    of low-interest loans and grants to Qualified Social Equity
15    Applicants;
16        (4) to pay for outreach that may be provided or
17    targeted to attract and support Social Equity Applicants;
18        (5) (blank);
19        (6) to conduct any study or research concerning the
20    participation of minorities, women, veterans, or people
21    with disabilities in the cannabis industry, including,
22    without limitation, barriers to such individuals entering
23    the industry as equity owners of cannabis business
24    establishments;
25        (7) (blank); and
26        (8) to assist with job training and technical

 

 

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1    assistance for residents in Disproportionately Impacted
2    Areas.
3    (b) All moneys collected under Sections 15-15 and 15-20 for
4Early Approval Adult Use Dispensing Organization Licenses
5issued before January 1, 2021 and remunerations made as a
6result of transfers of permits awarded to Qualified Social
7Equity Applicants shall be deposited into the Cannabis Business
8Development Fund.
9    (c) As soon as practical after July 1, 2019, the
10Comptroller shall order and the Treasurer shall transfer
11$12,000,000 from the Compassionate Use of Medical Cannabis Fund
12to the Cannabis Business Development Fund.
13    (d) Notwithstanding any other law to the contrary, the
14Cannabis Business Development Fund is not subject to sweeps,
15administrative charge-backs, or any other fiscal or budgetary
16maneuver that would in any way transfer any amounts from the
17Cannabis Business Development Fund into any other fund of the
18State.
 
19    Section 7-15. Loans and grants to Social Equity Applicants.
20    (a) The Department of Commerce and Economic Opportunity
21shall establish grant and loan programs, subject to
22appropriations from the Cannabis Business Development Fund,
23for the purposes of providing financial assistance, loans,
24grants, and technical assistance to Social Equity Applicants.
25    (b) The Department of Commerce and Economic Opportunity has

 

 

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1the power to:
2        (1) provide Cannabis Social Equity loans and grants
3    from appropriations from the Cannabis Business Development
4    Fund to assist Social Equity Applicants in gaining entry
5    to, and successfully operating in, the State's regulated
6    cannabis marketplace;
7        (2) enter into agreements that set forth terms and
8    conditions of the financial assistance, accept funds or
9    grants, and engage in cooperation with private entities and
10    agencies of State or local government to carry out the
11    purposes of this Section;
12        (3) fix, determine, charge, and collect any premiums,
13    fees, charges, costs and expenses, including application
14    fees, commitment fees, program fees, financing charges, or
15    publication fees in connection with its activities under
16    this Section;
17        (4) coordinate assistance under these loan programs
18    with activities of the Illinois Department of Financial and
19    Professional Regulation, the Illinois Department of
20    Agriculture, and other agencies as needed to maximize the
21    effectiveness and efficiency of this Act;
22        (5) provide staff, administration, and related support
23    required to administer this Section;
24        (6) take whatever actions are necessary or appropriate
25    to protect the State's interest in the event of bankruptcy,
26    default, foreclosure, or noncompliance with the terms and

 

 

10100HB1438sam002- 34 -LRB101 04919 RLC 61359 a

1    conditions of financial assistance provided under this
2    Section, including the ability to recapture funds if the
3    recipient is found to be noncompliant with the terms and
4    conditions of the financial assistance agreement;
5        (7) establish application, notification, contract, and
6    other forms, procedures, or rules deemed necessary and
7    appropriate; and
8        (8) utilize vendors or contract work to carry out the
9    purposes of this Act.
10    (c) Loans made under this Section:
11        (1) shall only be made if, in the Department's
12    judgment, the project furthers the goals set forth in this
13    Act; and
14        (2) shall be in such principal amount and form and
15    contain such terms and provisions with respect to security,
16    insurance, reporting, delinquency charges, default
17    remedies, and other matters as the Department shall
18    determine appropriate to protect the public interest and to
19    be consistent with the purposes of this Section. The terms
20    and provisions may be less than required for similar loans
21    not covered by this Section.
22    (d) Grants made under this Section shall be awarded on a
23competitive and annual basis under the Grant Accountability and
24Transparency Act. Grants made under this Section shall further
25and promote the goals of this Act, including promotion of
26Social Equity Applicants, job training and workforce

 

 

10100HB1438sam002- 35 -LRB101 04919 RLC 61359 a

1development, and technical assistance to Social Equity
2Applicants.
3    (e) Beginning January 1, 2021 and each year thereafter, the
4Department shall annually report to the Governor and the
5General Assembly on the outcomes and effectiveness of this
6Section that shall include the following:
7        (1) the number of persons or businesses receiving
8    financial assistance under this Section;
9        (2) the amount in financial assistance awarded in the
10    aggregate, in addition to the amount of loans made that are
11    outstanding and the amount of grants awarded;
12        (3) the location of the project engaged in by the
13    person or business; and
14        (4) if applicable, the number of new jobs and other
15    forms of economic output created as a result of the
16    financial assistance.
17    (f) The Department of Commerce and Economic Opportunity
18shall include engagement with individuals with limited English
19proficiency as part of its outreach provided or targeted to
20attract and support Social Equity Applicants.
 
21    Section 7-20. Fee waivers.
22    (a) For Social Equity Applicants, the Department of
23Financial and Professional Regulation and the Department of
24Agriculture shall waive 50% of any nonrefundable license
25application fees, any nonrefundable fees associated with

 

 

10100HB1438sam002- 36 -LRB101 04919 RLC 61359 a

1purchasing a license to operate a cannabis business
2establishment, and any surety bond or other financial
3requirements, provided a Social Equity Applicant meets the
4following qualifications at the time the payment is due:
5        (1) the applicant, including all individuals and
6    entities with 10% or greater ownership and all parent
7    companies, subsidiaries, and affiliates, has less than a
8    total of $750,000 of income in the previous calendar year;
9    and
10        (2) the applicant, including all individuals and
11    entities with 10% or greater ownership and all parent
12    companies, subsidiaries, and affiliates, has no more than 2
13    other licenses for cannabis business establishments in the
14    State of Illinois.
15    (b) The Department of Financial and Professional
16Regulation and the Department of Agriculture may require Social
17Equity Applicants to attest that they meet the requirements for
18a fee waiver as provided in subsection (a) and to provide
19evidence of annual total income in the previous calendar year.
20    (c) If the Department of Financial and Professional
21Regulation or the Department of Agriculture determines that an
22applicant who applied as a Social Equity Applicant is not
23eligible for such status, the applicant shall be provided an
24additional 10 days to provide alternative evidence that he or
25she qualifies as a Social Equity Applicant. Alternatively, the
26applicant may pay the remainder of the waived fee and be

 

 

10100HB1438sam002- 37 -LRB101 04919 RLC 61359 a

1considered as a non-Social Equity Applicant. If the applicant
2cannot do either, then the Departments may keep the initial
3application fee and the application shall not be graded.
 
4    Section 7-25. Transfer of license awarded to Social Equity
5Applicant.
6    (a) In the event a Social Equity Applicant seeks to
7transfer, sell, or grant a cannabis business establishment
8license within 5 years after it was issued to a person or
9entity that does not qualify as a Social Equity Applicant, the
10transfer agreement shall require the new license holder to pay
11the Cannabis Business Development Fund an amount equal to:
12        (1) any fees that were waived by any State agency based
13    on the applicant's status as a Social Equity Applicant, if
14    applicable;
15        (2) any outstanding amount owed by the Qualified Social
16    Equity Applicant for a loan through the Cannabis Business
17    Development Fund, if applicable; and
18        (3) the full amount of any grants that the Qualified
19    Social Equity Applicant received from the Department of
20    Commerce and Economic Opportunity, if applicable.
21    (b) Transfers of cannabis business establishment licenses
22awarded to a Social Equity Applicant are subject to all other
23provisions of this Act, the Compassionate Use of Medical
24Cannabis Pilot Program Act, and rules regarding transfers.
 

 

 

10100HB1438sam002- 38 -LRB101 04919 RLC 61359 a

1    Section 7-30. Reporting. By January 1, 2021, and on January
21 of every year thereafter, or upon request by the Illinois
3Cannabis Regulation Oversight Officer, each cannabis business
4establishment licensed under this Act shall report to the
5Illinois Cannabis Regulation Oversight Officer, on a form to be
6provided by the Illinois Cannabis Regulation Oversight
7Officer, information that will allow it to assess the extent of
8diversity in the medical and adult use cannabis industry and
9methods for reducing or eliminating any identified barriers to
10entry, including access to capital. The information to be
11collected shall be designed to identify the following:
12        (1) the number and percentage of licenses provided to
13    Social Equity Applicants and to businesses owned by
14    minorities, women, veterans, and people with disabilities;
15        (2) the total number and percentage of employees in the
16    cannabis industry who meet the criteria in (3)(i) or
17    (3)(ii) in the definition of Social Equity Applicant or who
18    are minorities, women, veterans, or people with
19    disabilities;
20        (3) the total number and percentage of contractors and
21    subcontractors in the cannabis industry that meet the
22    definition of a Social Equity Applicant or who are owned by
23    minorities, women, veterans, or people with disabilities,
24    if known to the cannabis business establishment; and
25        (4) recommendations on reducing or eliminating any
26    identified barriers to entry, including access to capital,

 

 

10100HB1438sam002- 39 -LRB101 04919 RLC 61359 a

1    in the cannabis industry.
 
2
ARTICLE 10.
3
PERSONAL USE OF CANNABIS

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

 

 

10100HB1438sam002- 40 -LRB101 04919 RLC 61359 a

1transporting an amount of cannabis purchased or produced in
2accordance with this Act that does not exceed the possession
3limit under subsection (a) of Section 10-10 shall not be a
4basis for seizure or forfeiture of assets under State law.
5    (b) Cultivating cannabis for personal use is subject to the
6following limitations:
7        (1) An Illinois resident 21 years of age or older who
8    is a registered qualifying patient under the Compassionate
9    Use of Medical Cannabis Pilot Program Act may cultivate
10    cannabis plants, with a limit of 5 plants that are more
11    than 5 inches tall, per household without a cultivation
12    center or craft grower license. In this Section, "resident"
13    means a person who has been domiciled in the State of
14    Illinois for a period of 30 days before cultivation.
15        (2) Cannabis cultivation must take place in an
16    enclosed, locked space.
17        (3) Adult registered qualifying patients may purchase
18    cannabis seeds from a dispensary for the purpose of home
19    cultivation. Seeds may not be given or sold to any other
20    person.
21        (4) Cannabis plants shall not be stored or placed in a
22    location where they are subject to ordinary public view, as
23    defined in this Act. A registered qualifying patient who
24    cultivates cannabis under this Section shall take
25    reasonable precautions to ensure the plants are secure from
26    unauthorized access, including unauthorized access by a

 

 

10100HB1438sam002- 41 -LRB101 04919 RLC 61359 a

1    person under 21 years of age.
2        (5) Cannabis cultivation may occur only on residential
3    property lawfully in possession of the cultivator or with
4    the consent of the person in lawful possession of the
5    property. An owner or lessor of residential property may
6    prohibit the cultivation of cannabis by a lessee.
7        (6) (Blank).
8        (7) A dwelling, residence, apartment, condominium
9    unit, enclosed, locked space, or piece of property not
10    divided into multiple dwelling units shall not contain more
11    than 5 plants at any one time.
12        (8) Cannabis plants may only be tended by registered
13    qualifying patients who reside at the residence, or their
14    authorized agent attending to the residence for brief
15    periods, such as when the qualifying patient is temporarily
16    away from the residence.
17        (9) A registered qualifying patient who cultivates
18    more than the allowable number of cannabis plants, or who
19    sells or gives away cannabis plants, cannabis, or
20    cannabis-infused products produced under this Section, is
21    liable for penalties as provided by law, including the
22    Cannabis Control Act, in addition to loss of home
23    cultivation privileges as established by rule.
 
24    Section 10-10. Possession limit.
25    (a) Except if otherwise authorized by this Act, for a

 

 

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1person who is 21 years of age or older and a resident of this
2State, the possession limit is as follows:
3        (1) 30 grams of cannabis flower;
4        (2) no more than 500 milligrams of THC contained in
5    cannabis-infused product;
6        (3) 5 grams of cannabis concentrate; and
7        (4) for registered qualifying patients, any cannabis
8    produced by cannabis plants grown under subsection (b) of
9    Section 10-5, provided any amount of cannabis produced in
10    excess of 30 grams of raw cannabis or its equivalent must
11    remain secured within the residence or residential
12    property in which it was grown.
13    (b) For a person who is 21 years of age or older and who is
14not a resident of this State, the possession limit is:
15        (1) 15 grams of cannabis flower;
16        (2) 2.5 grams of cannabis concentrate; and
17        (3) 250 milligrams of THC contained in a
18    cannabis-infused product.
19    (c) The possession limits found in subsections (a) and (b)
20of this Section are to be considered cumulative.
21    (d) No person shall knowingly obtain, seek to obtain, or
22possess an amount of cannabis from a dispensing organization or
23craft grower that would cause him or her to exceed the
24possession limit under this Section, including cannabis that is
25cultivated by a person under this Act or obtained under the
26Compassionate Use of Medical Cannabis Pilot Program Act.
 

 

 

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1    Section 10-15. Persons under 21 years of age.
2    (a) Nothing in this Act is intended to permit the transfer
3of cannabis, with or without remuneration, to a person under 21
4years of age, or to allow a person under 21 years of age to
5purchase, possess, use, process, transport, grow, or consume
6cannabis except where authorized by the Compassionate Use of
7Medical Cannabis Pilot Program Act or by the Community College
8Cannabis Vocational Pilot Program.
9    (b) Notwithstanding any other provisions of law
10authorizing the possession of medical cannabis, nothing in this
11Act authorizes a person who is under 21 years of age to possess
12cannabis. A person under 21 years of age with cannabis in his
13or her possession is guilty of a civil law violation as
14outlined in paragraph (a) of Section 4 of the Cannabis Control
15Act.
16    (c) If the person under the age of 21 was in a motor
17vehicle at the time of the offense, the Secretary of State may
18suspend or revoke the driving privileges of any person for a
19violation of this Section under Section 6-206 of the Illinois
20Vehicle Code and the rules adopted under it.
21    (d) It is unlawful for any parent or guardian to knowingly
22permit his or her residence, any other private property under
23his or her control, or any vehicle, conveyance, or watercraft
24under his or her control to be used by an invitee of the
25parent's child or the guardian's ward, if the invitee is under

 

 

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1the age of 21, in a manner that constitutes a violation of this
2Section. A parent or guardian is deemed to have knowingly
3permitted his or her residence, any other private property
4under his or her control, or any vehicle, conveyance, or
5watercraft under his or her control to be used in violation of
6this Section if he or she knowingly authorizes or permits
7consumption of cannabis by underage invitees. Any person who
8violates this subsection (d) is guilty of a Class A misdemeanor
9and the person's sentence shall include, but shall not be
10limited to, a fine of not less than $500. If a violation of
11this subsection (d) directly or indirectly results in great
12bodily harm or death to any person, the person violating this
13subsection is guilty of a Class 4 felony. In this subsection
14(d), where the residence or other property has an owner and a
15tenant or lessee, the trier of fact may infer that the
16residence or other property is occupied only by the tenant or
17lessee.
 
18    Section 10-20. Identification; false identification;
19penalty.
20    (a) To protect personal privacy, the Department of
21Financial and Professional Regulation shall not require a
22purchaser to provide a dispensing organization with personal
23information other than government-issued identification to
24determine the purchaser's age, and a dispensing organization
25shall not obtain and record personal information about a

 

 

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1purchaser without the purchaser's consent. A dispensing
2organization shall use an electronic reader or electronic
3scanning device to scan a purchaser's government-issued
4identification, if applicable, to determine the purchaser's
5age and the validity of the identification. Any identifying or
6personal information of a purchaser obtained or received in
7accordance with this Section shall not be retained, used,
8shared or disclosed for any purpose except as authorized by
9this Act.
10    (b) A person who is under 21 years of age may not present
11or offer to a cannabis business establishment or the cannabis
12business establishment's principal or employee any written or
13oral evidence of age that is false, fraudulent, or not actually
14the person's own, for the purpose of:
15        (1) purchasing, attempting to purchase, or otherwise
16    obtaining or attempting to obtain cannabis or any cannabis
17    product; or
18        (2) gaining access to a cannabis business
19    establishment.
20    (c) A violation of this Section is a Class A misdemeanor
21consistent with Section 6-20 of the Liquor Control Act of 1934.
22    (d) The Secretary of State may suspend or revoke the
23driving privileges of any person for a violation of this
24Section under Section 6-206 of the Illinois Vehicle Code and
25the rules adopted under it.
26    (e) No agent or employee of the licensee shall be

 

 

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1disciplined or discharged for selling or furnishing cannabis or
2cannabis products to a person under 21 years of age if the
3agent or employee demanded and was shown, before furnishing
4cannabis or cannabis products to a person under 21 years of
5age, adequate written evidence of age and identity of the
6person. This subsection (e) does not apply if the agent or
7employee accepted the written evidence knowing it to be false
8or fraudulent. Adequate written evidence of age and identity of
9the person is a document issued by a federal, State, county, or
10municipal government, or subdivision or agency thereof,
11including, but not limited to, a motor vehicle operator's
12license, a registration certificate issued under the Military
13Selective Service Act, or an identification card issued to a
14member of the Armed Forces. Proof that the licensee or his or
15her employee or agent was shown and reasonably relied upon such
16written evidence in any transaction forbidden by this Section
17is an affirmative defense in any criminal prosecution therefor
18or to any proceedings for the suspension or revocation of any
19license based thereon.
 
20    Section 10-25. Immunities and presumptions related to the
21use of cannabis by purchasers.
22    (a) A purchaser who is 21 years of age or older is not
23subject to arrest, prosecution, denial of any right or
24privilege, or other punishment including, but not limited to,
25any civil penalty or disciplinary action taken by an

 

 

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1occupational or professional licensing board, based solely on
2the use of cannabis if (1) the purchaser possesses an amount of
3cannabis that does not exceed the possession limit under
4Section 10-10 and, if the purchaser is licensed, certified, or
5registered to practice any trade or profession under any Act
6and (2) the use of cannabis does not impair that person when he
7or she is engaged in the practice of the profession for which
8he or she is licensed, certified, or registered.
9    (b) A purchaser 21 years of age or older is not subject to
10arrest, prosecution, denial of any right or privilege, or other
11punishment, including, but not limited to, any civil penalty or
12disciplinary action taken by an occupational or professional
13licensing board, based solely for (i) selling cannabis
14paraphernalia if employed and licensed as a dispensing agent by
15a dispensing organization or (ii) being in the presence or
16vicinity of the use of cannabis as allowed under this Act.
17    (c) Mere possession of, or application for, an agent
18identification card or license does not constitute probable
19cause or reasonable suspicion to believe that a crime has been
20committed, nor shall it be used as the sole basis to support
21the search of the person, property, or home of the person
22possessing or applying for the agent identification card. The
23possession of, or application for, an agent identification card
24does not preclude the existence of probable cause if probable
25cause exists based on other grounds.
26    (d) No person employed by the State of Illinois shall be

 

 

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1subject to criminal or civil penalties for taking any action in
2good faith in reliance on this Act when acting within the scope
3of his or her employment. Representation and indemnification
4shall be provided to State employees as set forth in Section 2
5of the State Employee Indemnification Act.
6    (e) No law enforcement or correctional agency, nor any
7person employed by a law enforcement or correctional agency,
8shall be subject to criminal or civil liability, except for
9willful and wanton misconduct, as a result of taking any action
10within the scope of the official duties of the agency or person
11to prohibit or prevent the possession or use of cannabis by a
12person incarcerated at a correctional facility, jail, or
13municipal lockup facility, on parole or mandatory supervised
14release, or otherwise under the lawful jurisdiction of the
15agency or person.
16    (f) For purposes of receiving medical care, including organ
17transplants, a person's use of cannabis under this Act does not
18constitute the use of an illicit substance or otherwise
19disqualify a person from medical care.
 
20    Section 10-30. Discrimination prohibited.
21    (a) Neither the presence of cannabinoid components or
22metabolites in a person's bodily fluids nor possession of
23cannabis-related paraphernalia, nor conduct related to the use
24of cannabis or the participation in cannabis-related
25activities lawful under this Act by a custodial or noncustodial

 

 

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1parent, grandparent, legal guardian, foster parent, or other
2person charged with the well-being of a child, shall form the
3sole or primary basis or supporting basis for any action or
4proceeding by a child welfare agency or in a family or juvenile
5court, any adverse finding, adverse evidence, or restriction of
6any right or privilege in a proceeding related to adoption of a
7child, acting as a foster parent of a child, or a person's
8fitness to adopt a child or act as a foster parent of a child,
9or serve as the basis of any adverse finding, adverse evidence,
10or restriction of any right of privilege in a proceeding
11related to guardianship, conservatorship, trusteeship, the
12execution of a will, or the management of an estate, unless the
13person's actions in relation to cannabis created an
14unreasonable danger to the safety of the minor or otherwise
15show the person to not be competent as established by clear and
16convincing evidence. This subsection applies only to conduct
17protected under this Act.
18    (b) No landlord may be penalized or denied any benefit
19under State law for leasing to a person who uses cannabis under
20this Act.
21    (c) Nothing in this Act may be construed to require any
22person or establishment in lawful possession of property to
23allow a guest, client, lessee, customer, or visitor to use
24cannabis on or in that property.
 
25    Section 10-35. Limitations and penalties.

 

 

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1    (a) This Act does not permit any person to engage in, and
2does not prevent the imposition of any civil, criminal, or
3other penalties for engaging in, any of the following conduct:
4        (1) undertaking any task under the influence of
5    cannabis when doing so would constitute negligence,
6    professional malpractice, or professional misconduct;
7        (2) possessing cannabis:
8            (A) in a school bus, unless permitted for a
9        qualifying patient or caregiver pursuant to the
10        Compassionate Use of Medical Cannabis Pilot Program
11        Act;
12            (B) on the grounds of any preschool or primary or
13        secondary school, unless permitted for a qualifying
14        patient or caregiver pursuant to the Compassionate Use
15        of Medical Cannabis Pilot Program Act;
16            (C) in any correctional facility;
17            (D) in a vehicle not open to the public unless the
18        cannabis is in a reasonably secured, sealed container
19        and reasonably inaccessible while the vehicle is
20        moving; or
21            (E) in a private residence that is used at any time
22        to provide licensed child care or other similar social
23        service care on the premises;
24        (3) using cannabis:
25            (A) in a school bus, unless permitted for a
26        qualifying patient or caregiver pursuant to the

 

 

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1        Compassionate Use of Medical Cannabis Pilot Program
2        Act;
3            (B) on the grounds of any preschool or primary or
4        secondary school, unless permitted for a qualifying
5        patient or caregiver pursuant to the Compassionate Use
6        of Medical Cannabis Pilot Program Act;
7            (C) in any correctional facility;
8            (D) in any motor vehicle;
9            (E) in a private residence that is used at any time
10        to provide licensed child care or other similar social
11        service care on the premises;
12            (F) in any public place; or
13            (G) knowingly in close physical proximity to
14        anyone under 21 years of age who is not a registered
15        medical cannabis patient under the Compassionate Use
16        of Medical Cannabis Pilot Program Act;
17        (4) smoking cannabis in any place where smoking is
18    prohibited under the Smoke Free Illinois Act;
19        (5) operating, navigating, or being in actual physical
20    control of any motor vehicle, aircraft, or motorboat while
21    using or under the influence of cannabis in violation of
22    Section 11-501 or 11-502.1 of the Illinois Vehicle Code;
23        (6) facilitating the use of cannabis by any person who
24    is not allowed to use cannabis under this Act or the
25    Compassionate Use of Medical Cannabis Pilot Program Act;
26        (7) transferring cannabis to any person contrary to

 

 

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1    this Act or the Compassionate Use of Medical Cannabis Pilot
2    Program Act;
3        (8) the use of cannabis by a law enforcement officer,
4    corrections officer, probation officer, or firefighter
5    while on duty; or
6        (9) the use of cannabis by a person who has a school
7    bus permit or a Commercial Driver's License while on duty.
8    As used in this Section, "public place" means any place
9where a person could reasonably be expected to be observed by
10others. "Public place" includes all parts of buildings owned in
11whole or in part, or leased, by the State or a unit of local
12government. "Public place" does not include a private residence
13unless the private residence is used to provide licensed child
14care, foster care, or other similar social service care on the
15premises.
16    (b) Nothing in this Act shall be construed to prevent the
17arrest or prosecution of a person for reckless driving or
18driving under the influence of cannabis if probable cause
19exists.
20    (c) Nothing in this Act shall prevent a private business
21from restricting or prohibiting the use of cannabis on its
22property, including areas where motor vehicles are parked.
23    (d) Nothing in this Act shall require an individual or
24business entity to violate the provisions of federal law,
25including colleges or universities that must abide by the
26Drug-Free Schools and Communities Act Amendments of 1989, that

 

 

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1require campuses to be drug free.
 
2    Section 10-40. Restore, Reinvest, and Renew Program.
3    (a) The General Assembly finds that in order to address the
4disparities described below, aggressive approaches and
5targeted resources to support local design and control of
6community-based responses to these outcomes are required. To
7carry out this intent, the Restore, Reinvest, and Renew (R3)
8Program is created for the following purposes:
9        (1) to directly address the impact of economic
10    disinvestment, violence, and the historical overuse of
11    criminal justice responses to community and individual
12    needs by providing resources to support local design and
13    control of community-based responses to these impacts;
14        (2) to substantially reduce both the total amount of
15    gun violence and concentrated poverty in this State;
16        (3) to protect communities from gun violence through
17    targeted investments and intervention programs, including
18    economic growth and improving family violence prevention,
19    community trauma treatment rates, gun injury victim
20    services, and public health prevention activities;
21        (4) to promote employment infrastructure and capacity
22    building related to the social determinants of health in
23    the eligible community areas.
24    (b) In this Section, "Authority" means the Illinois
25Criminal Justice Information Authority in coordination with

 

 

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1the Justice, Equity, and Opportunity Initiative of the
2Lieutenant Governor's Office.
3    (c) Eligibility of R3 Areas. Within 180 days after the
4effective date of this Act, the Authority shall identify as
5eligible, areas in this State by way of historically recognized
6geographic boundaries, to be designated by the Restore,
7Reinvest, and Renew Program Board as R3 Areas and therefore
8eligible to apply for R3 funding. Local groups within R3 Areas
9will be eligible to apply for State funding through the
10Restore, Reinvest, and Renew Program Board. Qualifications for
11designation as an R3 Area are as follows:
12        (1) Based on an analysis of data, communities in this
13    State that are high need, underserved, disproportionately
14    impacted by historical economic disinvestment, and ravaged
15    by violence as indicated by the highest rates of gun
16    injury, unemployment, child poverty rates, and commitments
17    to and returns from the Illinois Department of Corrections.
18        (2) The Authority shall send to the Legislative Audit
19    Commission and make publicly available its analysis and
20    identification of eligible R3 Areas and shall recalculate
21    he eligibility data every 4 years. On an annual basis, the
22    Authority shall analyze data and indicate if data covering
23    any R3 Area or portion of an Area has, for 4 consecutive
24    years, substantially deviated from the average of
25    statewide data on which the original calculation was made
26    to determine the Areas, including disinvestment, violence,

 

 

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1    gun injury, unemployment, child poverty rates, or
2    commitments to or returns from the Illinois Department of
3    Corrections.
4    (d) The Restore, Reinvest, and Renew Program Board shall
5encourage collaborative partnerships within each R3 Area to
6minimize multiple partnerships per Area.
7    (e) The Restore, Reinvest, and Renew Program Board is
8created and shall reflect the diversity of the State of
9Illinois, including geographic, racial, and ethnic diversity.
10Using the data provided by the Authority, the Restore,
11Reinvest, and Renew Program Board shall be responsible for
12designating the R3 Area boundaries and for the selection and
13oversight of R3 Area grantees. The Restore, Reinvest, and Renew
14Program Board ex officio members shall, within 4 months after
15the effective date of this Act, convene the Board to appoint a
16full Restore, Reinvest, and Renew Program Board and oversee,
17provide guidance to, and develop an administrative structure
18for the R3 Program.
19            (1) The ex officio members are:
20                (A) The Lieutenant Governor, or his or her
21            designee, who shall serve as chair.
22                (B) The Attorney General, or his or her
23            designee.
24                (C) The Director of Commerce and Economic
25            Opportunity, or his or her designee.
26                (D) The Director of Public Health, or his or

 

 

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1            her designee.
2                (E) The Director of Corrections, or his or her
3            designee.
4                (F) The Executive Director of the Illinois
5            Criminal Justice Information Authority, or his or
6            her designee.
7                (G) The Director of Employment Security, or
8            his or her designee.
9                (H) The Secretary of Human Services, or his or
10            her designee.
11                (I) A member of the Senate, designated by the
12            President of the Senate.
13                (J) A member of the House of Representatives,
14            designated by the Speaker of the House of
15            Representatives.
16                (K) A member of the Senate, designated by the
17            Minority Leader of the Senate.
18                (L) A member of the House of Representatives,
19            designated by the Minority Leader of the House of
20            Representatives.
21        (2) Within 90 days after the R3 Areas have been
22    designated by the Restore, Reinvest, and Renew Program
23    Board, the following members shall be appointed to the
24    Board by the R3 board chair:
25            (A) public officials of municipal geographic
26        jurisdictions in the State that include an R3 Area, or

 

 

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1        their designees;
2            (B) 4 community-based providers or community
3        development organization representatives who provide
4        services to treat violence and address the social
5        determinants of health, or promote community
6        investment, including, but not limited to, services
7        such as job placement and training, educational
8        services, workforce development programming, and
9        wealth building. The community-based organization
10        representatives shall work primarily in jurisdictions
11        that include an R3 Area and no more than 2
12        representatives shall work primarily in Cook County.
13        At least one of the community-based providers shall
14        have expertise in providing services to an immigrant
15        population;
16            (C) Two experts in the field of violence reduction;
17            (D) One male who has previously been incarcerated
18        and is over the age of 24 at time of appointment;
19            (E) One female who has previously been
20        incarcerated and is over the age of 24 at time of
21        appointment;
22            (F) Two individuals who have previously been
23        incarcerated and are between the ages of 17 and 24 at
24        time of appointment.
25        As used in this paragraph (2), "an individual who has
26    been previously incarcerated" means a person who has been

 

 

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1    convicted of or pled guilty to one or more felonies, who
2    was sentenced to a term of imprisonment, and who has
3    completed his or her sentence. Board members shall serve
4    without compensation and may be reimbursed for reasonable
5    expenses incurred in the performance of their duties from
6    funds appropriated for that purpose. Once all its members
7    have been appointed as outlined in items (A) through (F) of
8    this paragraph (2), the Board may exercise any power,
9    perform any function, take any action, or do anything in
10    furtherance of its purposes and goals upon the appointment
11    of a quorum of its members. The Board terms of the non-ex
12    officio and General Assembly Board members shall end 4
13    years from the date of appointment.
14    (f) Within 12 months after the effective date of this Act,
15the Board shall:
16        (1) develop a process to solicit applications from
17    eligible R3 Areas;
18        (2) develop a standard template for both planning and
19    implementation activities to be submitted by R3 Areas to
20    the State;
21        (3) identify resources sufficient to support the full
22    administration and evaluation of the R3 Program, including
23    building and sustaining core program capacity at the
24    community and State levels;
25        (4) review R3 Area grant applications and proposed
26    agreements and approve the distribution of resources;

 

 

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1        (5) develop a performance measurement system that
2    focuses on positive outcomes;
3        (6) develop a process to support ongoing monitoring and
4    evaluation of R3 programs; and
5        (7) deliver an annual report to the General Assembly
6    and to the Governor to be posted on the Governor's Office
7    and General Assembly websites and provide to the public an
8    annual report on its progress.
9    (g) R3 Area grants.
10        (1) Grant funds shall be awarded by the Illinois
11    Criminal Justice Information Authority, in coordination
12    with the R3 board, based on the likelihood that the plan
13    will achieve the outcomes outlined in subsection (a) and
14    consistent with the requirements of the Grant
15    Accountability and Transparency Act. The R3 Program shall
16    also facilitate the provision of training and technical
17    assistance for capacity building within and among R3 Areas.
18        (2) R3 Program Board grants shall be used to address
19    economic development, violence prevention services,
20    re-entry services, youth development, and civil legal aid.
21        (3) The Restore, Reinvest, and Renew Program Board and
22    the R3 Area grantees shall, within a period of no more than
23    120 days from the completion of planning activities
24    described in this Section, finalize an agreement on the
25    plan for implementation. Implementation activities may:
26            (A) have a basis in evidence or best practice

 

 

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1        research or have evaluations demonstrating the
2        capacity to address the purpose of the program in
3        subsection (a);
4            (B) collect data from the inception of planning
5        activities through implementation, with data
6        collection technical assistance when needed, including
7        cost data and data related to identified meaningful
8        short-term, mid-term, and long-term goals and metrics;
9            (C) report data to the Restore, Reinvest, and Renew
10        Program Board biannually; and
11            (D) report information as requested by the R3
12        Program Board.
 
13    Section 10-50. Employment; employer liability.
14    (a) Nothing in this Act shall prohibit an employer from
15adopting reasonable zero tolerance or drug free workplace
16policies, or employment policies concerning drug testing,
17smoking, consumption, storage, or use of cannabis in the
18workplace or while on call provided that the policy is applied
19in a nondiscriminatory manner.
20    (b) Nothing in this Act shall require an employer to permit
21an employee to be under the influence of or use cannabis in the
22employer's workplace or while performing the employee's job
23duties or while on call.
24    (c) Nothing in this Act shall limit or prevent an employer
25from disciplining an employee or terminating employment of an

 

 

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

 

 

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

 

 

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1employer's premises, including any building, real property,
2and parking area under the control of the employer or area used
3by an employee while in performance of the employee's job
4duties, and vehicles, whether leased, rented, or owned.
5"Workplace" may be further defined by the employer's written
6employment policy, provided that the policy is consistent with
7this Section.
8    (i) For purposes of this Section, an employee is deemed "on
9call" when such employee is scheduled with at least 24 hours'
10notice by his or her employer to be on standby or otherwise
11responsible for performing tasks related to his or her
12employment either at the employer's premises or other
13previously designated location by his or her employer or
14supervisor to perform a work-related task.
 
15
ARTICLE 15.
16
LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS

 
17    Section 15-5. Authority.
18    (a) In this Article, "Department" means the Department of
19Financial and Professional Regulation.
20    (b) It is the duty of the Department to administer and
21enforce the provisions of this Act relating to the licensure
22and oversight of dispensing organizations and dispensing
23organization agents unless otherwise provided in this Act.
24    (c) No person shall operate a dispensing organization for

 

 

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1the purpose of serving purchasers of cannabis or cannabis
2products without a license issued under this Article by the
3Department. No person shall be an officer, director, manager,
4or employee of a dispensing organization without having been
5issued a dispensing organization agent card by the Department.
6    (d) Subject to the provisions of this Act, the Department
7may exercise the following powers and duties:
8        (1) Prescribe forms to be issued for the administration
9    and enforcement of this Article.
10        (2) Examine, inspect, and investigate the premises,
11    operations, and records of dispensing organization
12    applicants and licensees.
13        (3) Conduct investigations of possible violations of
14    this Act pertaining to dispensing organizations and
15    dispensing organization agents.
16        (4) Conduct hearings on proceedings to refuse to issue
17    or renew licenses or to revoke, suspend, place on
18    probation, reprimand, or otherwise discipline a license
19    under this Article or take other nondisciplinary action.
20        (5) Adopt rules required for the administration of this
21    Article.
 
22    Section 15-10. Medical cannabis dispensing organization
23exemption. This Article does not apply to medical cannabis
24dispensing organizations registered under the Compassionate
25Use of Medical Cannabis Pilot Program Act, except where

 

 

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

 

 

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1    Medical Cannabis Pilot Program Act except as provided in
2    this Act;
3        (4) The legal name of the dispensing organization;
4        (5) The physical address of the dispensing
5    organization;
6        (6) The name, address, social security number, and date
7    of birth of each principal officer and board member of the
8    dispensing organization, each of whom must be at least 21
9    years of age;
10        (7) A nonrefundable Cannabis Business Development Fee
11    equal to 3% of the dispensing organization's total sales
12    between June 1, 2018 to June 1, 2019, or $100,000,
13    whichever is less, to be deposited into the Cannabis
14    Business Development Fund; and
15        (8) Identification of one of the following Social
16    Equity Inclusion Plans to be completed by March 31, 2021:
17            (A) Make a contribution of 3% of total sales from
18        June 1, 2018 to June 1, 2019, or $100,000, whichever is
19        less, to the Cannabis Business Development Fund. This
20        is in addition to the fee required by item (7) of this
21        subsection (b);
22            (B) Make a grant of 3% of total sales from June 1,
23        2018 to June 1, 2019, or $100,000, whichever is less,
24        to a cannabis industry training or education program at
25        an Illinois community college as defined in the Public
26        Community College Act;

 

 

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

 

 

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1        subsection; or
2            (E) Participate in a sponsorship program for at
3        least 2 years approved by the Department of Commerce
4        and Economic Opportunity in which an Early Approval
5        Adult Use Dispensing Organization License holder
6        agrees to provide an interest-free loan of at least
7        $200,000 to a Social Equity Applicant. The sponsor
8        shall not take an ownership stake in any cannabis
9        business establishment receiving sponsorship services
10        to comply with this subsection.
11    (c) The license fee required by paragraph (1) of subsection
12(b) of this Section shall be in addition to any license fee
13required for the renewal of a registered medical cannabis
14dispensing organization license.
15    (d) Applicants must submit all required information,
16including the requirements in subsection (b) of this Section,
17to the Department. Failure by an applicant to submit all
18required information may result in the application being
19disqualified.
20    (e) If the Department receives an application that fails to
21provide the required elements contained in subsection (b), the
22Department shall issue a deficiency notice to the applicant.
23The applicant shall have 10 calendar days from the date of the
24deficiency notice to submit complete information. Applications
25that are still incomplete after this opportunity to cure may be
26disqualified.

 

 

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1    (f) If an applicant meets all the requirements of
2subsection (b) of this Section, the Department shall issue the
3Early Approval Adult Use Dispensing Organization License
4within 14 days of receiving a completed application unless:
5        (1) The licensee or a principal officer is delinquent
6    in filing any required tax returns or paying any amounts
7    owed to the State of Illinois;
8        (2) The Secretary of Financial and Professional
9    Regulation determines there is reason, based on documented
10    compliance violations, the licensee is not entitled to an
11    Early Approval Adult Use Dispensing Organization License;
12    or
13        (3) Any principal officer fails to register and remain
14    in compliance with this Act or the Compassionate Use of
15    Medical Cannabis Pilot Program Act.
16    (g) A registered medical cannabis dispensing organization
17that obtains an Early Approval Adult Use Dispensing
18Organization License may begin selling cannabis,
19cannabis-infused products, paraphernalia, and related items to
20purchasers under the rules of this Act no sooner than January
211, 2020.
22    (h) A dispensing organization holding a medical cannabis
23dispensing organization license issued under the Compassionate
24Use of Medical Cannabis Pilot Program Act must maintain an
25adequate supply of cannabis and cannabis-infused products for
26purchase by qualifying patients, caregivers, provisional

 

 

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1patients, and Opioid Alternative Pilot Program participants.
2For the purposes of this subsection, "adequate supply" means a
3monthly inventory level that is comparable in type and quantity
4to those medical cannabis products provided to patients and
5caregivers on an average monthly basis for the 6 months before
6the effective date of this Act.
7    (i) If there is a shortage of cannabis or cannabis-infused
8products, a dispensing organization holding both a dispensing
9organization license under the Compassionate Use of Medical
10Cannabis Pilot Program Act and this Act shall prioritize
11serving qualifying patients, caregivers, provisional patients,
12and Opioid Alternative Pilot Program participants before
13serving purchasers.
14    (j) Notwithstanding any law or rule to the contrary, a
15person that holds a medical cannabis dispensing organization
16license issued under the Compassionate Use of Medical Cannabis
17Pilot Program Act and an Early Approval Adult Use Dispensing
18Organization License may permit purchasers into a limited
19access area as that term is defined in administrative rules
20made under the authority in the Compassionate Use of Medical
21Cannabis Pilot Program Act.
22    (k) An Early Approval Adult Use Dispensing Organization
23License is valid until March 31, 2021. A dispensing
24organization that obtains an Early Approval Adult Use
25Dispensing Organization License shall receive written or
26electronic notice 90 days before the expiration of the license

 

 

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1that the license will expire, and inform the license holder
2that it may renew its Early Approval Adult Use Dispensing
3Organization License. The Department shall renew the Early
4Approval Adult Use Dispensing Organization License within 60
5days of the renewal application being deemed complete if:
6        (1) the dispensing organization submits an application
7    and the required nonrefundable renewal fee of $30,000, to
8    be deposited into the Cannabis Regulation Fund;
9        (2) the Department has not suspended or revoked the
10    Early Approval Adult Use Dispensing Organization License
11    or a medical cannabis dispensing organization license on
12    the same premises for violations of this Act, the
13    Compassionate Use of Medical Cannabis Pilot Program Act, or
14    rules adopted pursuant to those Acts; and
15        (3) the dispensing organization has completed a Social
16    Equity Inclusion Plan as required by paragraph (8) of
17    subsection (b) of this Section.
18    (l) The Early Approval Adult Use Dispensing Organization
19License renewed pursuant to subsection (k) of this Section
20shall expire March 31, 2022. The Early Approval Adult Use
21Dispensing Organization Licensee shall receive written or
22electronic notice 90 days before the expiration of the license
23that the license will expire, and inform the license holder
24that it may apply for an Adult Use Dispensing Organization
25License. The Department shall grant an Adult Use Dispensing
26Organization License within 60 days of an application being

 

 

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1deemed complete if the applicant has met all of the criteria in
2Section 15-36.
3    (m) If a dispensary fails to submit an application for an
4Adult Use Dispensing Organization License before the
5expiration of the Early Approval Adult Use Dispensing
6Organization License pursuant to subsection (k) of this
7Section, the dispensing organization shall cease serving
8purchasers and cease all operations until it receives an Adult
9Use Dispensing Organization License.
10    (n) A dispensing organization agent who holds a valid
11dispensing organization agent identification card issued under
12the Compassionate Use of Medical Cannabis Pilot Program Act and
13is an officer, director, manager, or employee of the dispensing
14organization licensed under this Section may engage in all
15activities authorized by this Article to be performed by a
16dispensing organization agent.
17    (o) All fees collected pursuant to this Section shall be
18deposited into the Cannabis Regulation Fund, unless otherwise
19specified.
 
20    Section 15-20. Early Approval Adult Use Dispensing
21Organization License; secondary site.
22    (a) If the Department suspends or revokes the Early
23Approval Adult Use Dispensing Organization License of a
24dispensing organization that also holds a medical cannabis
25dispensing organization license issued under the Compassionate

 

 

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1Use of Medical Cannabis Pilot Program Act, the Department may
2consider the suspension or revocation as grounds to take
3disciplinary action against the medical cannabis dispensing
4organization license.
5    (a-5) If, within 360 days of the effective date of this
6Act, a dispensing organization is unable to find a location
7within the BLS Regions prescribed in subsection (a) of this
8Section in which to operate an Early Approval Adult Use
9Dispensing Organization at a secondary site because no
10jurisdiction within the prescribed area allows the operation of
11an Adult Use Cannabis Dispensing Organization, the Department
12of Financial and Professional Regulation may waive the
13geographic restrictions of subsection (a) of this Section and
14specify another BLS Region into which the dispensary may be
15placed.
16    (b) Any medical cannabis dispensing organization holding a
17valid registration under the Compassionate Use of Medical
18Cannabis Pilot Program Act as of the effective date of this Act
19may, within 60 days of the effective date of this Act, apply to
20the Department for an Early Approval Adult Use Dispensing
21Organization License to operate a dispensing organization to
22serve purchasers at a secondary site not within 1,500 feet of
23another medical cannabis dispensing organization or adult use
24dispensing organization. The Early Approval Adult Use
25Dispensing Organization secondary site shall be within any BLS
26region that shares territory with the dispensing organization

 

 

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1district to which the medical cannabis dispensing organization
2is assigned under the administrative rules for dispensing
3organizations under the Compassionate Use of Medical Cannabis
4Pilot Program Act.
5    (c) A medical cannabis dispensing organization seeking
6issuance of an Early Approval Adult Use Dispensing Organization
7License at a secondary site to serve purchasers at a secondary
8site as prescribed in subsection (b) of this Section shall
9submit an application on forms provided by the Department. The
10application must meet or include the following qualifications:
11        (1) a payment of a nonrefundable application fee of
12    $30,000;
13        (2) proof of registration as a medical cannabis
14    dispensing organization that is in good standing;
15        (3) submission of the application by the same person or
16    entity that holds the medical cannabis dispensing
17    organization registration;
18        (4) the legal name of the medical cannabis dispensing
19    organization;
20        (5) the physical address of the medical cannabis
21    dispensing organization and the proposed physical address
22    of the secondary site;
23        (6) a copy of the current local zoning ordinance
24    Sections relevant to dispensary operations and
25    documentation of the approval, the conditional approval or
26    the status of a request for zoning approval from the local

 

 

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1    zoning office that the proposed dispensary location is in
2    compliance with the local zoning rules;
3        (7) a plot plan of the dispensary drawn to scale. The
4    applicant shall submit general specifications of the
5    building exterior and interior layout;
6        (8) a statement that the dispensing organization
7    agrees to respond to the Department's supplemental
8    requests for information;
9        (9) for the building or land to be used as the proposed
10    dispensary:
11            (A) if the property is not owned by the applicant,
12        a written statement from the property owner and
13        landlord, if any, certifying consent that the
14        applicant may operate a dispensary on the premises; or
15            (B) if the property is owned by the applicant,
16        confirmation of ownership;
17        (10) a copy of the proposed operating bylaws;
18        (11) a copy of the proposed business plan that complies
19    with the requirements in this Act, including, at a minimum,
20    the following:
21            (A) a description of services to be offered; and
22            (B) a description of the process of dispensing
23        cannabis;
24        (12) a copy of the proposed security plan that complies
25    with the requirements in this Article, including:
26            (A) a description of the delivery process by which

 

 

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1        cannabis will be received from a transporting
2        organization, including receipt of manifests and
3        protocols that will be used to avoid diversion, theft,
4        or loss at the dispensary acceptance point; and
5            (B) the process or controls that will be
6        implemented to monitor the dispensary, secure the
7        premises, agents, patients, and currency, and prevent
8        the diversion, theft, or loss of cannabis; and
9            (C) the process to ensure that access to the
10        restricted access areas is restricted to, registered
11        agents, service professionals, transporting
12        organization agents, Department inspectors, and
13        security personnel;
14        (13) a proposed inventory control plan that complies
15    with this Section;
16        (14) the name, address, social security number, and
17    date of birth of each principal officer and board member of
18    the dispensing organization; each of those individuals
19    shall be at least 21 years of age;
20        (15) a nonrefundable Cannabis Business Development Fee
21    equal to $200,000, to be deposited into the Cannabis
22    Business Development Fund; and
23        (16) a commitment to completing one of the following
24    Social Equity Inclusion Plans in subsection (d).
25    (d) Before receiving an Early Approval Adult Use Dispensing
26Organization License at a secondary site, a dispensing

 

 

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1organization shall indicate the Social Equity Inclusion Plan
2that the applicant plans to achieve before the expiration of
3the Early Approval Adult Use Dispensing Organization License
4from the list below:
5        (1) make a contribution of 3% of total sales from June
6    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
7    the Cannabis Business Development Fund. This is in addition
8    to the fee required by paragraph (16) of subsection (c) of
9    this Section;
10        (2) make a grant of 3% of total sales from June 1, 2018
11    to June 1, 2019, or $100,000, whichever is less, to a
12    cannabis industry training or education program at an
13    Illinois community college as defined in the Public
14    Community College Act;
15        (3) make a donation of $100,000 or more to a program
16    that provides job training services to persons recently
17    incarcerated or that operates in a Disproportionately
18    Impacted Area;
19        (4) participate as a host in a cannabis business
20    establishment incubator program approved by the Department
21    of Commerce and Economic Opportunity, and in which an Early
22    Approval Adult Use Dispensing Organization License at a
23    secondary site holder agrees to provide a loan of at least
24    $100,000 and mentorship to incubate a licensee that
25    qualifies as a Social Equity Applicant for at least a year.
26    In this paragraph (4), "incubate" means providing direct

 

 

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

 

 

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1    (e) The license fee required by paragraph (1) of subsection
2(c) of this Section is in addition to any license fee required
3for the renewal of a registered medical cannabis dispensing
4organization license.
5    (f) Applicants must submit all required information,
6including the requirements in subsection (c) of this Section,
7to the Department. Failure by an applicant to submit all
8required information may result in the application being
9disqualified.
10    (g) If the Department receives an application that fails to
11provide the required elements contained in subsection (c), the
12Department shall issue a deficiency notice to the applicant.
13The applicant shall have 10 calendar days from the date of the
14deficiency notice to submit complete information. Applications
15that are still incomplete after this opportunity to cure may be
16disqualified.
17    (h) Once all required information and documents have been
18submitted, the Department will review the application. The
19Department may request revisions and retains final approval
20over dispensary features. Once the application is complete and
21meets the Department's approval, the Department shall
22conditionally approve the license. Final approval is
23contingent on the build-out and Department inspection.
24    (i) Upon submission of the Early Approval Adult Use
25Dispensing Organization at a secondary site application, the
26applicant shall request an inspection and the Department may

 

 

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1inspect the Early Approval Adult Use Dispensing Organization's
2secondary site to confirm compliance with the application and
3this Act.
4    (j) The Department shall only issue an Early Approval Adult
5Use Dispensing Organization License at a secondary site after
6the completion of a successful inspection.
7    (k) If an applicant passes the inspection under this
8Section, the Department shall issue the Early Approval Adult
9Use Dispensing Organization License at a secondary site within
1010 business days unless:
11        (1) The licensee; principal officer, board member, or
12    person having a financial or voting interest of 5% or
13    greater in the licensee; or agent is delinquent in filing
14    any required tax returns or paying any amounts owed to the
15    State of Illinois; or
16        (2) The Secretary of Financial and Professional
17    Regulation determines there is reason, based on documented
18    compliance violations, the licensee is not entitled to an
19    Early Approval Adult Use Dispensing Organization License
20    at its secondary site.
21    (l) Once the Department has issued a license, the
22dispensing organization shall notify the Department of the
23proposed opening date.
24    (m) A registered medical cannabis dispensing organization
25that obtains an Early Approval Adult Use Dispensing
26Organization License at a secondary site may begin selling

 

 

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1cannabis, cannabis-infused products, paraphernalia, and
2related items to purchasers under the rules of this Act no
3sooner than January 1, 2020.
4    (n) If there is a shortage of cannabis or cannabis-infused
5products, a dispensing organization holding both a dispensing
6organization license under the Compassionate Use of Medical
7Cannabis Pilot Program Act and this Article shall prioritize
8serving qualifying patients and caregivers before serving
9purchasers.
10    (o) An Early Approval Adult Use Dispensing Organization
11License at a secondary site is valid until March 31, 2021. A
12dispensing organization that obtains an Early Approval Adult
13Use Dispensing Organization License at a secondary site shall
14receive written or electronic notice 90 days before the
15expiration of the license that the license will expire, and
16inform the license holder that it may renew its Early Approval
17Adult Use Dispensing Organization License at a secondary site.
18The Department shall renew an Early Approval Adult Use
19Dispensing Organization License at a secondary site within 60
20days of submission of the renewal application being deemed
21complete if:
22        (1) the dispensing organization submits an application
23    and the required nonrefundable renewal fee of $30,000, to
24    be deposited into the Cannabis Regulation Fund;
25        (2) the Department has not suspended or revoked the
26    Early Approval Adult Use Dispensing Organization License

 

 

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1    or a medical cannabis dispensing organization license held
2    by the same person or entity for violating this Act or
3    rules adopted under this Act or the Compassionate Use of
4    Medical Cannabis Pilot Program Act or rules adopted under
5    that Act; and
6        (3) the dispensing organization has completed a Social
7    Equity Inclusion Plan as required by paragraph (16) of
8    subsection (c) of this Section.     
9    (p) The Early Approval Adult Use Dispensing Organization
10Licensee at a secondary site renewed pursuant to subsection (o)
11shall receive written or electronic notice 90 days before the
12expiration of the license that the license will expire, and
13inform the license holder that it may apply for an Adult Use
14Dispensing Organization License. The Department shall grant an
15Adult Use Dispensing Organization License within 60 days of an
16application being deemed complete if the applicant has meet all
17of the criteria in Section 15-36.
18    (q) If a dispensing organization fails to submit an
19application for renewal of an Early Approval Adult Use
20Dispensing Organization License or for an Adult Use Dispensing
21Organization License before the expiration dates provided in
22subsections (o) and (p) of this Section, the dispensing
23organization shall cease serving purchasers until it receives a
24renewal or an Adult Use Dispensing Organization License.
25    (r) A dispensing organization agent who holds a valid
26dispensing organization agent identification card issued under

 

 

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1the Compassionate Use of Medical Cannabis Pilot Program Act and
2is an officer, director, manager, or employee of the dispensing
3organization licensed under this Section may engage in all
4activities authorized by this Article to be performed by a
5dispensing organization agent.
6    (s) If the Department suspends or revokes the Early
7Approval Adult Use Dispensing Organization License of a
8dispensing organization that also holds a medical cannabis
9dispensing organization license issued under the Compassionate
10Use of Medical Cannabis Pilot Program Act, the Department may
11consider the suspension or revocation as grounds to take
12disciplinary action against the medical cannabis dispensing
13organization.
14    (t) All fees or fines collected from an Early Approval
15Adult Use Dispensary Organization License at a secondary site
16holder as a result of a disciplinary action in the enforcement
17of this Act shall be deposited into the Cannabis Regulation
18Fund and be appropriated to the Department for the ordinary and
19contingent expenses of the Department in the administration and
20enforcement of this Section.
 
21    Section 15-25. Awarding of Conditional Adult Use
22Dispensing Organization Licenses prior to January 1, 2021.
23    (a) The Department shall issue up to 75 Conditional Adult
24Use Dispensing Organization Licenses before May 1, 2020.
25    (b) The Department shall make the application for a

 

 

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1Conditional Adult Use Dispensing Organization License
2available no later than October 1, 2019 and shall accept
3applications no later than January 1, 2020.
4    (c) To ensure the geographic dispersion of Conditional
5Adult Use Dispensing Organization License holders, the
6following number of licenses shall be awarded in each BLS
7Region as determined by each region's percentage of the State's
8population:
9        (1) Bloomington: 1
10        (2) Cape Girardeau: 1
11        (3) Carbondale-Marion: 1
12        (4) Champaign-Urbana: 1
13        (5) Chicago-Naperville-Elgin: 47
14        (6) Danville: 1
15        (7) Davenport-Moline-Rock Island: 1
16        (8) Decatur: 1
17        (9) Kankakee: 1
18        (10) Peoria: 3
19        (11) Rockford: 2
20        (12) St. Louis: 4
21        (13) Springfield: 1
22        (14) Northwest Illinois nonmetropolitan: 3
23        (15) West Central Illinois nonmetropolitan: 3
24        (16) East Central Illinois nonmetropolitan: 2
25        (17) South Illinois nonmetropolitan: 2
26    (d) An applicant seeking issuance of a Conditional Adult

 

 

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1Use Dispensing Organization License shall submit an
2application on forms provided by the Department. An applicant
3must meet the following requirements:
4        (1) Payment of a nonrefundable application fee of
5    $5,000 for each license for which the applicant is
6    applying, which shall be deposited into the Cannabis
7    Regulation Fund;
8        (2) Certification that the applicant will comply with
9    the requirements contained in this Act;
10        (3) The legal name of the proposed dispensing
11    organization;
12        (4) A statement that the dispensing organization
13    agrees to respond to the Department's supplemental
14    requests for information;
15        (5) From each principal officer, a statement
16    indicating whether that person:
17            (A) has previously held or currently holds an
18        ownership interest in a cannabis business
19        establishment in Illinois; or
20            (B) has held an ownership interest in a dispensing
21        organization or its equivalent in another state or
22        territory of the United States that had the dispensing
23        organization registration or license suspended,
24        revoked, placed on probationary status, or subjected
25        to other disciplinary action;
26        (6) Disclosure of whether any principal officer has

 

 

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1    ever filed for bankruptcy or defaulted on spousal support
2    or child support obligation;
3        (7) A resume for each principal officer, including
4    whether that person has an academic degree, certification,
5    or relevant experience with a cannabis business
6    establishment or in a related industry;
7        (8) A description of the training and education that
8    will be provided to dispensing organization agents;
9        (9) A copy of the proposed operating bylaws;
10        (10) A copy of the proposed business plan that complies
11    with the requirements in this Act, including, at a minimum,
12    the following:
13            (A) A description of services to be offered; and
14            (B) A description of the process of dispensing
15        cannabis;
16        (11) A copy of the proposed security plan that complies
17    with the requirements in this Article, including:
18            (A) The process or controls that will be
19        implemented to monitor the dispensary, secure the
20        premises, agents, and currency, and prevent the
21        diversion, theft, or loss of cannabis; and
22            (B) The process to ensure that access to the
23        restricted access areas is restricted to, registered
24        agents, service professionals, transporting
25        organization agents, Department inspectors, and
26        security personnel;

 

 

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1        (12) A proposed inventory control plan that complies
2    with this Section;
3        (13) A proposed floor plan, a square footage estimate,
4    and a description of proposed security devices, including,
5    without limitation, cameras, motion detectors, servers,
6    video storage capabilities, and alarm service providers;
7        (14) The name, address, social security number, and
8    date of birth of each principal officer and board member of
9    the dispensing organization; each of those individuals
10    shall be at least 21 years of age;
11        (15) Evidence of the applicant's status as a Social
12    Equity Applicant, if applicable, and whether a Social
13    Equity Applicant plans to apply for a loan or grant issued
14    by the Department of Commerce and Economic Opportunity;
15        (16) The address, telephone number, and email address
16    of the applicant's principal place of business, if
17    applicable. A post office box is not permitted;
18        (17) Written summaries of any information regarding
19    instances in which a business or not-for-profit that a
20    prospective board member previously managed or served on
21    were fined or censured, or any instances in which a
22    business or not-for-profit that a prospective board member
23    previously managed or served on had its registration
24    suspended or revoked in any administrative or judicial
25    proceeding;
26        (18) A plan for community engagement;

 

 

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1        (19) Procedures to ensure accurate recordkeeping and
2    security measures that are in accordance with this Article
3    and Department rules;
4        (20) The estimated volume of cannabis it plans to store
5    at the dispensary;
6        (21) A description of the features that will provide
7    accessibility to purchasers as required by the Americans
8    with Disabilities Act;
9        (22) A detailed description of air treatment systems
10    that will be installed to reduce odors;
11        (23) A reasonable assurance that the issuance of a
12    license will not have a detrimental impact on the community
13    in which the applicant wishes to locate;
14        (24) The dated signature of each principal officer;
15        (25) A description of the enclosed, locked facility
16    where cannabis will be stored by the dispensing
17    organization;
18        (26) Signed statements from each dispensing
19    organization agent stating that he or she will not divert
20    cannabis;
21        (27) The number of licenses it is applying for in each
22    BLS Region;
23        (28) A diversity plan that includes a narrative of at
24    least 2,500 words that establishes a goal of diversity in
25    ownership, management, employment, and contracting to
26    ensure that diverse participants and groups are afforded

 

 

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1    equality of opportunity;
2        (29) A contract with a private security contractor that
3    is licensed under Section 10-5 of the Private Detective,
4    Private Alarm, Private Security, Fingerprint Vendor, and
5    Locksmith Act of 2004 in order for the dispensary to have
6    adequate security at its facility; and
7        (30) Other information deemed necessary by the
8    Illinois Cannabis Regulation Oversight Officer to conduct
9    the disparity and availability study referenced in
10    subsection (e) of Section 5-45.
11    (e) An applicant who receives a Conditional Adult Use
12Dispensing Organization License under this Section has 180 days
13from the date of award to identify a physical location for the
14dispensing organization retail storefront. Before a
15conditional licensee receives an authorization to build out the
16dispensing organization from the Department, the Department
17shall inspect the physical space selected by the conditional
18licensee. The Department shall verify the site is suitable for
19public access, the layout promotes the safe dispensing of
20cannabis, the location is sufficient in size, power allocation,
21lighting, parking, handicapped accessible parking spaces,
22accessible entry and exits as required by the Americans with
23Disabilities Act, product handling, and storage. The applicant
24shall also provide a statement of reasonable assurance that the
25issuance of a license will not have a detrimental impact on the
26community. The applicant shall also provide evidence that the

 

 

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1location is not within 1,500 feet of an existing dispensing
2organization. If an applicant is unable to find a suitable
3physical address in the opinion of the Department within 180
4days of the issuance of the Conditional Adult Use Dispensing
5Organization License, the Department may extend the period for
6finding a physical address another 180 days if the Conditional
7Adult Use Dispensing Organization License holder demonstrates
8concrete attempts to secure a location and a hardship. If the
9Department denies the extension or the Conditional Adult Use
10Dispensing Organization License holder is unable to find a
11location or become operational within 360 days of being awarded
12a conditional license, the Department shall rescind the
13conditional license and award it to the next highest scoring
14applicant in the BLS Region for which the license was assigned,
15provided the applicant receiving the license: (i) confirms a
16continued interest in operating a dispensing organization;
17(ii) can provide evidence that the applicant continues to meet
18the financial requirements provided in subsection (c) of this
19Section; and (iii) has not otherwise become ineligible to be
20awarded a dispensing organization license. If the new awardee
21is unable to accept the Conditional Adult Use Dispensing
22Organization License, the Department shall award the
23Conditional Adult Use Dispensing Organization License to the
24next highest scoring applicant in the same manner. The new
25awardee shall be subject to the same required deadlines as
26provided in this subsection.

 

 

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1    (e-5) If, within 180 days of being awarded a Conditional
2Adult Use Dispensing Organization license, a dispensing
3organization is unable to find a location within the BLS Region
4in which it was awarded a Conditional Adult Use Dispensing
5Organization license because no jurisdiction within the BLS
6Region allows for the operation of an Adult Use Dispensing
7Organization, the Department of Financial and Professional
8Regulation may authorize the Conditional Adult Use Dispensing
9Organization License holder to transfer its license to a BLS
10Region specified by the Department.
11    (f) A dispensing organization that is awarded a Conditional
12Adult Use Dispensing Organization License pursuant to the
13criteria in Section 15-30 shall not purchase, possess, sell, or
14dispense cannabis or cannabis-infused products until the
15person has received an Adult Use Dispensing Organization
16License issued by the Department pursuant to Section 15-36 of
17this Act. The Department shall not issue an Adult Use
18Dispensing Organization License until:
19        (1) the Department has inspected the dispensary site
20    and proposed operations and verified that they are in
21    compliance with this Act and local zoning laws; and
22        (2) the Conditional Adult Use Dispensing Organization
23    License holder has paid a registration fee of $60,000, or a
24    prorated amount accounting for the difference of time
25    between when the Adult Use Dispensing Organization License
26    is issued and March 31 of the next even-numbered year.

 

 

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1    (g) The Department shall conduct a background check of the
2prospective organization agents in order to carry out this
3Article. The Department of State Police shall charge the
4applicant a fee 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.
7Each person applying as a dispensing organization agent shall
8submit a full set of fingerprints to the Department of State
9Police for the purpose of obtaining a State and federal
10criminal records check. These fingerprints shall be checked
11against the fingerprint records now and hereafter, to the
12extent allowed by law, filed in the Department of State Police
13and Federal Bureau of Identification criminal history records
14databases. The Department of State Police shall furnish,
15following positive identification, all Illinois conviction
16information to the Department.
 
17    Section 15-30. Selection criteria for conditional licenses
18awarded under Section 15-25.
19    (a) Applicants for a Conditional Adult Use Dispensing
20Organization License must submit all required information,
21including the information required in Section 15-25, to the
22Department. Failure by an applicant to submit all required
23information may result in the application being disqualified.
24    (b) If the Department receives an application that fails to
25provide the required elements contained in this Section, the

 

 

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1Department shall issue a deficiency notice to the applicant.
2The applicant shall have 10 calendar days from the date of the
3deficiency notice to resubmit the incomplete information.
4Applications that are still incomplete after this opportunity
5to cure will not be scored and will be disqualified.
6    (c) The Department will award up to 250 points to complete
7applications based on the sufficiency of the applicant's
8responses to required information. Applicants will be awarded
9points based on a determination that the application
10satisfactorily includes the following elements:
11        (1) Suitability of Employee Training Plan (15 points).
12            The plan includes an employee training plan that
13        demonstrates that employees will understand the rules
14        and laws to be followed by dispensary employees, have
15        knowledge of any security measures and operating
16        procedures of the dispensary, and are able to advise
17        purchasers on how to safely consume cannabis and use
18        individual products offered by the dispensary.
19        (2) Security and Recordkeeping (65 points).
20            (A) The security plan accounts for the prevention
21        of the theft or diversion of cannabis. The security
22        plan demonstrates safety procedures for dispensary
23        agents and purchasers, and safe delivery and storage of
24        cannabis and currency. It demonstrates compliance with
25        all security requirements in this Act and rules.
26            (B) A plan for recordkeeping, tracking, and

 

 

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1        monitoring inventory, quality control, and other
2        policies and procedures that will promote standard
3        recordkeeping and discourage unlawful activity. This
4        plan includes the applicant's strategy to communicate
5        with the Department and the Department of State Police
6        on the destruction and disposal of cannabis. The plan
7        must also demonstrate compliance with this Act and
8        rules.
9            (C) The security plan shall also detail which
10        private security contractor licensed under Section
11        10-5 of the Private Detective, Private Alarm, Private
12        Security, Fingerprint Vendor, and Locksmith Act of
13        2004 the dispensary will contract with in order to
14        provide adequate security at its facility.
15        (3) Applicant's Business Plan, Financials, Operating
16    and Floor Plan (65 points).
17            (A) The business plan shall describe, at a minimum,
18        how the dispensing organization will be managed on a
19        long-term basis. This shall include a description of
20        the dispensing organization's point-of-sale system,
21        purchases and denials of sale, confidentiality, and
22        products and services to be offered. It will
23        demonstrate compliance with this Act and rules.
24            (B) The operating plan shall include, at a minimum,
25        best practices for day-to-day dispensary operation and
26        staffing. The operating plan may also include

 

 

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1        information about employment practices, including
2        information about the percentage of full-time
3        employees who will be provided a living wage.
4            (C) The proposed floor plan is suitable for public
5        access, the layout promotes safe dispensing of
6        cannabis, is compliant with the Americans with
7        Disabilities Act and the Environmental Barriers Act,
8        and facilitates safe product handling and storage.
9        (4) Knowledge and Experience (30 points).
10            (A) The applicant's principal officers must
11        demonstrate experience and qualifications in business
12        management or experience with the cannabis industry.
13        This includes ensuring optimal safety and accuracy in
14        the dispensing and sale of cannabis.
15            (B) The applicant's principal officers must
16        demonstrate knowledge of various cannabis product
17        strains or varieties and describe the types and
18        quantities of products planned to be sold. This
19        includes confirmation of whether the dispensing
20        organization plans to sell cannabis paraphernalia or
21        edibles.
22            (C) Knowledge and experience may be demonstrated
23        through experience in other comparable industries that
24        reflect on applicant's ability to operate a cannabis
25        business establishment.
26        (5) Status as a Social Equity Applicant (50 points).

 

 

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1            The applicant meets the qualifications for a
2        Social Equity Applicant as set forth in this Act.
3        (6) Labor and employment practices (5 points): The
4    applicant may describe plans to provide a safe, healthy,
5    and economically beneficial working environment for its
6    agents, including, but not limited to, codes of conduct,
7    health care benefits, educational benefits, retirement
8    benefits, living wage standards, and entering a labor peace
9    agreement with employees.
10        (7) Environmental Plan (5 points): The applicant may
11    demonstrate an environmental plan of action to minimize the
12    carbon footprint, environmental impact, and resource needs
13    for the dispensary, which may include, without limitation,
14    recycling cannabis product packaging.
15        (8) Illinois owner (5 points): The applicant is 51% or
16    more owned and controlled by an Illinois resident, who can
17    prove residency in each of the past 5 years with tax
18    records.
19        (9) Status as veteran (5 points): The applicant is 51%
20    or more controlled and owned by an individual or
21    individuals who meet the qualifications of a veteran as
22    defined by Section 45-57 of the Illinois Procurement Code.
23        (10) A diversity plan (5 points): that includes a
24    narrative of not more than 2,500 words that establishes a
25    goal of diversity in ownership, management, employment,
26    and contracting to ensure that diverse participants and

 

 

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1    groups are afforded equality of opportunity.
2    (d) The Department may also award up to 2 bonus points for
3a plan to engage with the community. The applicant may
4demonstrate a desire to engage with its community by
5participating in one or more of, but not limited to, the
6following actions: (i) establishment of an incubator program
7designed to increase participation in the cannabis industry by
8persons who would qualify as Social Equity Applicants; (ii)
9providing financial assistance to substance abuse treatment
10centers; (iii) educating children and teens about the potential
11harms of cannabis use; or (iv) other measures demonstrating a
12commitment to the applicant's community. Bonus points will only
13be awarded if the Department receives applications that receive
14an equal score for a particular region.
15    (e) The Department may verify information contained in each
16application and accompanying documentation to assess the
17applicant's veracity and fitness to operate a dispensing
18organization.
19    (f) The Department may, in its discretion, refuse to issue
20an authorization to any applicant:
21        (1) Who is unqualified to perform the duties required
22    of the applicant;
23        (2) Who fails to disclose or states falsely any
24    information called for in the application;
25        (3) Who has been found guilty of a violation of this
26    Act, or whose medical cannabis dispensing organization,

 

 

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1    medical cannabis cultivation organization, or Early
2    Approval Adult Use Dispensing Organization License, or
3    Early Approval Adult Use Dispensing Organization License
4    at a secondary site, or Early Approval Cultivation Center
5    License was suspended, restricted, revoked, or denied for
6    just cause, or the applicant's cannabis business
7    establishment license was suspended, restricted, revoked,
8    or denied in any other state; or
9        (4) Who has engaged in a pattern or practice of unfair
10    or illegal practices, methods, or activities in the conduct
11    of owning a cannabis business establishment or other
12    business.
13    (g) The Department shall deny the license if any principal
14officer, board member, or person having a financial or voting
15interest of 5% or greater in the licensee is delinquent in
16filing any required tax returns or paying any amounts owed to
17the State of Illinois.
18    (h) The Department shall verify an applicant's compliance
19with the requirements of this Article and rules before issuing
20a dispensing organization license.
21    (i) Should the applicant be awarded a license, the
22information and plans provided in the application, including
23any plans submitted for bonus points, shall become a condition
24of the Conditional Adult Use Dispensing Organization Licenses,
25except as otherwise provided by this Act or rule. Dispensing
26organizations have a duty to disclose any material changes to

 

 

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1the application. The Department shall review all material
2changes disclosed by the dispensing organization, and may
3re-evaluate its prior decision regarding the awarding of a
4license, including, but not limited to, suspending or revoking
5a license. Failure to comply with the conditions or
6requirements in the application may subject the dispensing
7organization to discipline, up to and including suspension or
8revocation of its authorization or license by the Department.
9    (j) If an applicant has not begun operating as a dispensing
10organization within one year of the issuance of the Conditional
11Adult Use Dispensing Organization License, the Department may
12revoke the Conditional Adult Use Dispensing Organization
13License and award it to the next highest scoring applicant in
14the BLS Region if a suitable applicant indicates a continued
15interest in the license or begin a new selection process to
16award a Conditional Adult Use Dispensing Organization License.
17    (k) The Department shall deny an application if granting
18that application would result in a single person or entity
19having a direct or indirect financial interest in more than 10
20Early Approval Adult Use Dispensing Organization Licenses,
21Conditional Adult Use Dispensing Organization Licenses, or
22Adult Use Dispensing Organization Licenses. Any entity that is
23awarded a license that results in a single person or entity
24having a direct or indirect financial interest in more than 10
25licenses shall forfeit the most recently issued license and
26suffer a penalty to be determined by the Department, unless the

 

 

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1entity declines the license at the time it is awarded.
 
2    Section 15-35. Conditional Adult Use Dispensing
3Organization License after January 1, 2021.
4    (a) In addition to any of the licenses issued in Sections
515-15, Section 15-20, or Section 15-25 of this Act, by December
621, 2021, the Department shall issue up to 110 Conditional
7Adult Use Dispensing Organization Licenses, pursuant to the
8application process adopted under this Section. Prior to
9issuing such licenses, the Department may adopt rules through
10emergency rulemaking in accordance with subsection (gg) of
11Section 5-45 of the Illinois Administrative Procedure Act. The
12General Assembly finds that the adoption of rules to regulate
13cannabis use is deemed an emergency and necessary for the
14public interest, safety, and welfare. Such rules may:
15        (1) Modify or change the BLS Regions as they apply to
16    this Article or modify or raise the number of Adult
17    Conditional Use Dispensing Organization Licenses assigned
18    to each region based on the following factors:
19            (A) Purchaser wait times;
20            (B) Travel time to the nearest dispensary for
21        potential purchasers;
22            (C) Percentage of cannabis sales occurring in
23        Illinois not in the regulated market using data from
24        the Substance Abuse and Mental Health Services
25        Administration, National Survey on Drug Use and

 

 

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1        Health, Illinois Behavioral Risk Factor Surveillance
2        System, and tourism data from the Illinois Office of
3        Tourism to ascertain total cannabis consumption in
4        Illinois compared to the amount of sales in licensed
5        dispensing organizations;
6            (D) Whether there is an adequate supply of cannabis
7        and cannabis-infused products to serve registered
8        medical cannabis patients;
9            (E) Population increases or shifts;
10            (F) Density of dispensing organizations in a
11        region;
12            (G) The Department's capacity to appropriately
13        regulate additional licenses;
14            (H) The findings and recommendations from the
15        disparity and availability study commissioned by the
16        Illinois Cannabis Regulation Oversight Officer in
17        subsection (e) of Section 5-45 to reduce or eliminate
18        any identified barriers to entry in the cannabis
19        industry; and
20            (I) Any other criteria the Department deems
21        relevant.
22        (2) Modify or change the licensing application process
23    to reduce or eliminate the barriers identified in the
24    disparity and availability study commissioned by the
25    Illinois Cannabis Regulation Oversight Officer and make
26    modifications to remedy evidence of discrimination.

 

 

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1    (b) After January 1, 2022, the Department may by rule
2modify or raise the number of Adult Use Dispensing Organization
3Licenses assigned to each region, and modify or change the
4licensing application process to reduce or eliminate barriers
5based on the criteria in subsection (a). At no time shall the
6Department issue more than 500 Adult Use Dispensary
7Organization Licenses.
 
8    Section 15-36. Adult Use Dispensing Organization License.
9    (a) A person is only eligible to receive an Adult Use
10Dispensing Organization if the person has been awarded a
11Conditional Adult Use Dispensing Organization License pursuant
12to this Act or has renewed its license pursuant to subsection
13(k) of Section 15-15 or subsection (p) of Section 15-20.
14    (b) The Department shall not issue an Adult Use Dispensing
15Organization License until:
16        (1) the Department has inspected the dispensary site
17    and proposed operations and verified that they are in
18    compliance with this Act and local zoning laws;
19        (2) the Conditional Adult Use Dispensing Organization
20    License holder has paid a registration fee of $60,000 or a
21    prorated amount accounting for the difference of time
22    between when the Adult Use Dispensing Organization License
23    is issued and March 31 of the next even-numbered year; and
24        (3) the Conditional Adult Use Dispensing Organization
25    License holder has met all the requirements in the Act and

 

 

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1    rules.
2    (c) No person or entity shall hold any legal, equitable,
3ownership, or beneficial interest, directly or indirectly, of
4more than 10 dispensing organizations licensed under this
5Article. Further, no person or entity that is:
6        (1) employed by, is an agent of, or participates in the
7    management of a dispensing organization or registered
8    medical cannabis dispensing organization;
9        (2) a principal officer of a dispensing organization or
10    registered medical cannabis dispensing organization; or
11        (3) an entity controlled by or affiliated with a
12    principal officer of a dispensing organization or
13    registered medical cannabis dispensing organization;
14shall hold any legal, equitable, ownership, or beneficial
15interest, directly or indirectly, in a dispensing organization
16that would result in such person or entity owning or
17participating in the management of more than 10 dispensing
18organizations. For the purpose of this subsection,
19participating in management may include, without limitation,
20controlling decisions regarding staffing, pricing, purchasing,
21marketing, store design, hiring, and website design.
22    (d) The Department shall deny an application if granting
23that application would result in a person or entity obtaining
24direct or indirect financial interest in more than 10 Early
25Approval Adult Use Dispensing Organization Licenses,
26Conditional Adult Use Dispensing Organization Licenses, Adult

 

 

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1Use Dispensing Organization Licenses, or any combination
2thereof. If a person or entity is awarded a Conditional Adult
3Use Dispensing Organization License that would cause the person
4or entity to be in violation of this subsection, he, she, or it
5shall choose which license application it wants to abandon and
6such licenses shall become available to the next qualified
7applicant in the region in which the abandoned license was
8awarded.
 
9    Section 15-40. Dispensing organization agent
10identification card; agent training.
11    (a) The Department shall:
12        (1) Verify the information contained in an application
13    or renewal for a dispensing organization agent
14    identification card submitted under this Article, and
15    approve or deny an application or renewal, within 30 days
16    of receiving a completed application or renewal
17    application and all supporting documentation required by
18    rule;
19        (2) Issue a dispensing organization agent
20    identification card to a qualifying agent within 15
21    business days of approving the application or renewal;
22        (3) Enter the registry identification number of the
23    dispensing organization where the agent works;
24        (4) Within one year from the effective date of this
25    Act, allow for an electronic application process and

 

 

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1    provide a confirmation by electronic or other methods that
2    an application has been submitted; and
3        (5) Collect a $100 nonrefundable fee from the applicant
4    to be deposited into the Cannabis Regulation Fund.
5    (b) A dispensing agent must keep his or her identification
6card visible at all times when on the property of the
7dispensing organization.
8    (c) The dispensing organization agent identification cards
9shall contain the following:
10        (1) The name of the cardholder;
11        (2) The date of issuance and expiration date of the
12    dispensing organization agent identification cards;
13        (3) A random 10-digit alphanumeric identification
14    number containing at least 4 numbers and at least 4 letters
15    that is unique to the cardholder; and
16        (4) A photograph of the cardholder.
17    (d) The dispensing organization agent identification cards
18shall be immediately returned to the dispensing organization
19upon termination of employment.
20    (e) The Department shall not issue an agent identification
21card if the applicant is delinquent in filing any required tax
22returns or paying any amounts owed to the State of Illinois.
23    (f) Any card lost by a dispensing organization agent shall
24be reported to the Department of State Police and the
25Department immediately upon discovery of the loss.
26    (g) An applicant shall be denied a dispensing organization

 

 

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1agent identification card if he or she fails to complete the
2training provided for in this Section.
3    (h) A dispensing organization agent shall only be required
4to hold one card for the same employer regardless of what type
5of dispensing organization license the employer holds.
6    (i) Cannabis retail sales training requirements.
7        (1) Within 90 days of September 1, 2019, or 90 days of
8    employment, whichever is later, all owners, managers,
9    employees, and agents involved in the handling or sale of
10    cannabis or cannabis-infused product employed by an adult
11    use dispensing organization or medical cannabis dispensing
12    organization as defined in Section 10 of the Compassionate
13    Use of Medical Cannabis Pilot Program Act shall attend and
14    successfully complete a Responsible Vendor Program.
15        (2) Each owner, manager, employee, and agent of an
16    adult use dispensing organization or medical cannabis
17    dispensing organization shall successfully complete the
18    program annually.
19        (3) Responsible Vendor Program Training modules shall
20    include at least 2 hours of instruction time approved by
21    the Department including:
22            (i) Health and safety concerns of cannabis use,
23        including the responsible use of cannabis, its
24        physical effects, onset of physiological effects,
25        recognizing signs of impairment, and appropriate
26        responses in the event of overconsumption.

 

 

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1            (ii) Training on laws and regulations on driving
2        while under the influence.
3            (iii) Sales to minors prohibition. Training shall
4        cover all relevant Illinois laws and rules.
5            (iv) Quantity limitations on sales to purchasers.
6        Training shall cover all relevant Illinois laws and
7        rules.
8            (v) Acceptable forms of identification. Training
9        shall include:
10                (I) How to check identification; and
11                (II) Common mistakes made in verification;
12            (vi) Safe storage of cannabis;
13            (vii) Compliance with all inventory tracking
14        system regulations;
15            (viii) Waste handling, management, and disposal;
16            (ix) Health and safety standards;
17            (x) Maintenance of records;
18            (xi) Security and surveillance requirements;
19            (xii) Permitting inspections by State and local
20        licensing and enforcement authorities;
21            (xiii) Privacy issues;
22            (xiv) Packaging and labeling requirement for sales
23        to purchasers; and
24            (xv) Other areas as determined by rule.
25    (k) Upon the successful completion of the Responsible
26Vendor Program, the provider shall deliver proof of completion

 

 

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1either through mail or electronic communication to the
2dispensing organization, which shall retain a copy of the
3certificate.
4    (l) The license of a dispensing organization or medical
5cannabis dispensing organization whose owners, managers,
6employees, or agents fail to comply with this Section may be
7suspended or revoked under Section 15-145 or may face other
8disciplinary action.
9    (m) The regulation of dispensing organization and medical
10cannabis dispensing employer and employee training is an
11exclusive function of the State, and regulation by a unit of
12local government, including a home rule unit, is prohibited.
13This subsection (m) is a denial and limitation of home rule
14powers and functions under subsection (h) of Section 6 of
15Article VII of the Illinois Constitution.
16    (n) Persons seeking Department approval to offer the
17training required by paragraph (3) of subsection (i) may apply
18for such approval between August 1 and August 15 of each
19odd-numbered year in a manner prescribed by the Department.
20    (o) Persons seeking Department approval to offer the
21training required by paragraph (3) of subsection (i) shall
22submit a non-refundable application fee of $2,000 to be
23deposited into the Cannabis Regulation Fund or a fee as may be
24set by rule. Any changes made to the training module shall be
25approved by the Department.
26    (p) The Department shall not unreasonably deny approval of

 

 

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

 

 

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1paying any amounts owed to the State of Illinois.
2    (d) Renewal fees are:
3        (1) For a dispensing organization, $60,000, to be
4    deposited into the Cannabis Regulation Fund.
5        (2) For an agent identification card, $100, to be
6    deposited into the Cannabis Regulation Fund.
7    (e) If a dispensing organization fails to renew its license
8before expiration, the dispensing organization shall cease
9operations until the license is renewed.
10    (f) If a dispensing organization agent fails to renew his
11or her registration before its expiration, he or she shall
12cease to perform duties authorized by this Article at a
13dispensing organization until his or her registration is
14renewed.
15    (g) Any dispensing organization that continues to operate
16or dispensing agent that continues to perform duties authorized
17by this Article at a dispensing organization that fails to
18renew its license is subject to penalty as provided in this
19Article, or any rules that may be adopted pursuant to this
20Article.
21    (h) The Department shall not renew a license if the
22applicant is delinquent in filing any required tax returns or
23paying any amounts owed to the State of Illinois. The
24Department shall not renew a dispensing agent identification
25card if the applicant is delinquent in filing any required tax
26returns or paying any amounts owed to the State of Illinois.
 

 

 

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1    Section 15-50. Disclosure of ownership and control.
2    (a) Each dispensing organization applicant and licensee
3shall file and maintain a Table of Organization, Ownership and
4Control with the Department. The Table of Organization,
5Ownership and Control shall contain the information required by
6this Section in sufficient detail to identify all owners,
7directors, and principal officers, and the title of each
8principal officer or business entity that, through direct or
9indirect means, manages, owns, or controls the applicant or
10licensee.
11    (b) The Table of Organization, Ownership and Control shall
12identify the following information:
13        (1) The management structure, ownership, and control
14    of the applicant or license holder including the name of
15    each principal officer or business entity, the office or
16    position held, and the percentage ownership interest, if
17    any. If the business entity has a parent company, the name
18    of each owner, board member, and officer of the parent
19    company and his or her percentage ownership interest in the
20    parent company and the dispensing organization.
21        (2) If the applicant or licensee is a business entity
22    with publicly traded stock, the identification of
23    ownership shall be provided as required in subsection (c).
24    (c) If a business entity identified in subsection (b) is a
25publicly traded company, the following information shall be

 

 

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1provided in the Table of Organization, Ownership and Control:
2        (1) The name and percentage of ownership interest of
3    each individual or business entity with ownership of more
4    than 5% of the voting shares of the entity, to the extent
5    such information is known or contained in 13D or 13G
6    Securities and Exchange Commission filings.
7        (2) To the extent known, the names and percentage of
8    interest of ownership of persons who are relatives of one
9    another and who together exercise control over or own more
10    than 10% of the voting shares of the entity.
11    (d) A dispensing organization with a parent company or
12companies, or partially owned or controlled by another entity
13must disclose to the Department the relationship and all
14owners, board members, officers, or individuals with control or
15management of those entities. A dispensing organization shall
16not shield its ownership or control from the Department.
17    (e) All principal officers must submit a complete online
18application with the Department within 14 days of the
19dispensing organization being licensed by the Department or
20within 14 days of Department notice of approval as a new
21principal officer.
22    (f) A principal officer may not allow his or her
23registration to expire.
24    (g) A dispensing organization separating with a principal
25officer must do so under this Act. The principal officer must
26communicate the separation to the Department within 5 business

 

 

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1days.
2    (h) A principal officer not in compliance with the
3requirements of this Act shall be removed from his or her
4position with the dispensing organization or shall otherwise
5terminate his or her affiliation. Failure to do so may subject
6the dispensing organization to discipline, suspension, or
7revocation of its license by the Department.
8    (i) It is the responsibility of the dispensing organization
9and its principal officers to promptly notify the Department of
10any change of the principal place of business address, hours of
11operation, change in ownership or control, or a change of the
12dispensing organization's primary or secondary contact
13information. Any changes must be made to the Department in
14writing.
 
15    Section 15-55. Financial responsibility. Evidence of
16financial responsibility is a requirement for the issuance,
17maintenance, or reactivation of a license under this Article.
18Evidence of financial responsibility shall be used to guarantee
19that the dispensing organization timely and successfully
20completes dispensary construction, operates in a manner that
21provides an uninterrupted supply of cannabis, faithfully pays
22registration renewal fees, keeps accurate books and records,
23makes regularly required reports, complies with State tax
24requirements, and conducts the dispensing organization in
25conformity with this Act and rules. Evidence of financial

 

 

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

 

 

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1    defaults to the Department in the event of circumstances
2    outlined in this Act and rules. Bond terms shall include:
3            (A) The business name and registration number on
4        the bond must correspond exactly with the business name
5        and registration number in the Department's records.
6            (B) The bond must be written on a form approved by
7        the Department.
8            (C) A copy of the bond must be received by the
9        Department within 90 days after the effective date.
10            (D) The bond shall not be canceled by a surety on
11        less than 30 days' notice in writing to the Department.
12        If a bond is canceled and the registrant fails to file
13        a new bond with the Department in the required amount
14        on or before the effective date of cancellation, the
15        registrant's registration may be revoked. The total
16        and aggregate liability of the surety on the bond is
17        limited to the amount specified in the bond.
 
18    Section 15-60. Changes to a dispensing organization.
19    (a) A license shall be issued to the specific dispensing
20organization identified on the application and for the specific
21location proposed. The license is valid only as designated on
22the license and for the location for which it is issued.
23    (b) A dispensing organization may only add principal
24officers after being approved by the Department.
25    (c) A dispensing organization shall provide written notice

 

 

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1of the removal of a principal officer within 5 business days
2after removal. The notice shall include the written agreement
3of the principal officer being removed, unless otherwise
4approved by the Department, and allocation of ownership shares
5after removal in an updated ownership chart.
6    (d) A dispensing organization shall provide a written
7request to the Department for the addition of principal
8officers. A dispensing organization shall submit proposed
9principal officer applications on forms approved by the
10Department.
11    (e) All proposed new principal officers shall be subject to
12the requirements of this Act, this Article, and any rules that
13may be adopted pursuant to this Act.
14    (f) The Department may prohibit the addition of a principal
15officer to a dispensing organization for failure to comply with
16this Act, this Article, and any rules that may be adopted
17pursuant to this Act.
18    (g) A dispensing organization may not assign a license.
19    (h) A dispensing organization may not transfer a license
20without prior Department approval. Such approval may be
21withheld if the person to whom the license is being transferred
22does not commit to the same or a similar community engagement
23plan provided as part of the dispensing organization's
24application under paragraph (18) of subsection (d) of Section
2515-25, and such transferee's license shall be conditional upon
26that commitment.

 

 

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

 

 

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

 

 

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1organizations shall ensure the written policies and procedures
2provide for the following:
3        (1) Mandatory and voluntary recalls of cannabis
4    products. The policies shall be adequate to deal with
5    recalls due to any action initiated at the request of the
6    Department and any voluntary action by the dispensing
7    organization to remove defective or potentially defective
8    cannabis from the market or any action undertaken to
9    promote public health and safety, including:
10            (i) A mechanism reasonably calculated to contact
11        purchasers who have, or likely have, obtained the
12        product from the dispensary, including information on
13        the policy for return of the recalled product;
14            (ii) A mechanism to identify and contact the adult
15        use cultivation center, craft grower, or infuser that
16        manufactured the cannabis;
17            (iii) Policies for communicating with the
18        Department, the Department of Agriculture, and the
19        Department of Public Health within 24 hours of
20        discovering defective or potentially defective
21        cannabis; and
22            (iv) Policies for destruction of any recalled
23        cannabis product;
24        (2) Responses to local, State, or national
25    emergencies, including natural disasters, that affect the
26    security or operation of a dispensary;

 

 

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1        (3) Segregation and destruction of outdated, damaged,
2    deteriorated, misbranded, or adulterated cannabis. This
3    procedure shall provide for written documentation of the
4    cannabis disposition;
5        (4) Ensure the oldest stock of a cannabis product is
6    distributed first. The procedure may permit deviation from
7    this requirement, if such deviation is temporary and
8    appropriate;
9        (5) Training of dispensing organization agents in the
10    provisions of this Act and rules, to effectively operate
11    the point-of-sale system and the State's verification
12    system, proper inventory handling and tracking, specific
13    uses of cannabis or cannabis-infused products, instruction
14    regarding regulatory inspection preparedness and law
15    enforcement interaction, awareness of the legal
16    requirements for maintaining status as an agent, and other
17    topics as specified by the dispensing organization or the
18    Department. The dispensing organization shall maintain
19    evidence of all training provided to each agent in its
20    files that is subject to inspection and audit by the
21    Department. The dispensing organization shall ensure
22    agents receive a minimum of 8 hours of training subject to
23    the requirements in subsection (i) of Section 15-40
24    annually, unless otherwise approved by the Department;
25        (6) Maintenance of business records consistent with
26    industry standards, including bylaws, consents, manual or

 

 

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1    computerized records of assets and liabilities, audits,
2    monetary transactions, journals, ledgers, and supporting
3    documents, including agreements, checks, invoices,
4    receipts, and vouchers. Records shall be maintained in a
5    manner consistent with this Act and shall be retained for 5
6    years;
7        (7) Inventory control, including:
8            (i) Tracking purchases and denials of sale;
9            (ii) Disposal of unusable or damaged cannabis as
10        required by this Act and rules; and
11        (8) Purchaser education and support, including:
12            (i) Whether possession of cannabis is illegal
13        under federal law;
14            (ii) Current educational information issued by the
15        Department of Public Health about the health risks
16        associated with the use or abuse of cannabis;
17            (iii) Information about possible side effects;
18            (iv) Prohibition on smoking cannabis in public
19        places; and
20            (v) Offering any other appropriate purchaser
21        education or support materials.
22    (c) A dispensing organization shall maintain copies of the
23policies and procedures on the dispensary premises and provide
24copies to the Department upon request. The dispensing
25organization shall review the dispensing organization policies
26and procedures at least once every 12 months from the issue

 

 

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

 

 

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1        (2) Any dispensing organization that sells edible
2    cannabis-infused products must display a placard that
3    states the following:
4            (A) "Edible cannabis-infused products were
5        produced in a kitchen that may also process common food
6        allergens."; and
7            (B) "The effects of cannabis products can vary from
8        person to person, and it can take as long as two hours
9        to feel the effects of some cannabis-infused products.
10        Carefully review the portion size information and
11        warnings contained on the product packaging before
12        consuming.".
13        (3) All of the required signage in this subsection (h)
14    shall be no smaller than 24 inches tall by 36 inches wide,
15    with typed letters no smaller than 2 inches. The signage
16    shall be clearly visible and readable by customers. The
17    signage shall be placed in the area where cannabis and
18    cannabis-infused products are sold and may be translated
19    into additional languages as needed. The Department may
20    require a dispensary to display the required signage in a
21    different language, other than English, if the Secretary
22    deems it necessary.
23    (i) A dispensing organization shall prominently post
24notices inside the dispensing organization that state
25activities that are strictly prohibited and punishable by law,
26including, but not limited to:

 

 

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1        (1) No minors permitted on the premises unless the
2    minor is a minor qualifying patient under the Compassionate
3    Use of Medical Cannabis Pilot Program Act;
4        (2) Distribution to persons under the age of 21 is
5    prohibited;
6        (3) Transportation of cannabis or cannabis products
7    across state lines is prohibited.
 
8    Section 15-70. Operational requirements; prohibitions.
9    (a) A dispensing organization shall operate in accordance
10with the representations made in its application and license
11materials. It shall be in compliance with this Act and rules.
12    (b) A dispensing organization must include the legal name
13of the dispensary on the packaging of any cannabis product it
14sells.
15    (c) All cannabis, cannabis-infused products, and cannabis
16seeds must be obtained from an Illinois registered adult use
17cultivation center, craft grower, infuser, or another
18dispensary.
19    (d) Dispensing organizations are prohibited from selling
20any product containing alcohol except tinctures, which must be
21limited to containers that are no larger than 100 milliliters.
22    (e) A dispensing organization shall inspect and count
23product received by the adult use cultivation center before
24dispensing it.
25    (f) A dispensing organization may only accept cannabis

 

 

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1deliveries into a restricted access area. Deliveries may not be
2accepted through the public or limited access areas unless
3otherwise approved by the Department.
4    (g) A dispensing organization shall maintain compliance
5with State and local building, fire, and zoning requirements or
6regulations.
7    (h) A dispensing organization shall submit a list to the
8Department of the names of all service professionals that will
9work at the dispensary. The list shall include a description of
10the type of business or service provided. Changes to the
11service professional list shall be promptly provided. No
12service professional shall work in the dispensary until the
13name is provided to the Department on the service professional
14list.
15    (i) A dispensing organization's license allows for a
16dispensary to be operated only at a single location.
17    (j) A dispensary may operate between 6 a.m. and 10 p.m.
18local time.
19    (k) A dispensing organization must keep all lighting
20outside and inside the dispensary in good working order and
21wattage sufficient for security cameras.
22    (l) A dispensing organization shall ensure that any
23building or equipment used by a dispensing organization for the
24storage or sale of cannabis is maintained in a clean and
25sanitary condition.
26    (m) The dispensary shall be free from infestation by

 

 

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

 

 

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1    the same entity if the licensees share at least one
2    principal officer. The Department may request that a
3    dispensary diversify its products as needed or otherwise
4    discipline a dispensing organization for violating this
5    requirement;
6        (6) Refuse to conduct business with an adult use
7    cultivation center, craft grower, transporting
8    organization, or infuser that has the ability to properly
9    deliver the product and is permitted by the Department of
10    Agriculture, on the same terms as other adult use
11    cultivation centers, craft growers, infusers, or
12    transporters with whom it is dealing;
13        (7) Operate drive-through windows;
14        (8) Allow for the dispensing of cannabis or
15    cannabis-infused products in vending machines;
16        (9) Transport cannabis to residences or other
17    locations where purchasers may be for delivery;
18        (10) Enter into agreements to allow persons who are not
19    dispensing organization agents to deliver cannabis or to
20    transport cannabis to purchasers.
21        (11) Operate a dispensary if its video surveillance
22    equipment is inoperative;
23        (12) Operate a dispensary if the point-of-sale
24    equipment is inoperative;
25        (13) Operate a dispensary if the State's cannabis
26    electronic verification system is inoperative;

 

 

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1        (14) Have fewer than 2 people working at the dispensary
2    at any time while the dispensary is open;
3        (15) Be located within 1,500 feet of the property line
4    of a pre-existing dispensing organization;
5        (16) Sell clones or any other live plant material;
6        (17) Sell cannabis, cannabis concentrate, or
7    cannabis-infused products in combination or bundled with
8    each other or any other items for one price, and each item
9    of cannabis, concentrate, or cannabis-infused product must
10    be separately identified by quantity and price on the
11    receipt;
12        (18) Violate any other requirements or prohibitions
13    set by Department rules.
14    (o) It is unlawful for any person having an Early Approval
15Adult Use Cannabis Dispensing Organization License, a
16Conditional Adult Use Cannabis Dispensing Organization, an
17Adult Use Dispensing Organization License, or a medical
18cannabis dispensing organization license issued under the
19Compassionate Use of Medical Cannabis Pilot Program or any
20officer, associate, member, representative, or agent of such
21licensee to accept, receive, or borrow money or anything else
22of value or accept or receive credit (other than merchandising
23credit in the ordinary course of business for a period not to
24exceed 30 days) directly or indirectly from any adult use
25cultivation center, craft grower, infuser, or transporting
26organization. This includes anything received or borrowed or

 

 

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1from any stockholders, officers, agents, or persons connected
2with an adult use cultivation center, craft grower, infuser, or
3transporting organization. This also excludes any received or
4borrowed in exchange for preferential placement by the
5dispensing organization, including preferential placement on
6the dispensing organization's shelves, display cases, or
7website.
8    (p) It is unlawful for any person having an Early Approval
9Adult Use Cannabis Dispensing Organization License, a
10Conditional Adult Use Cannabis Dispensing Organization, an
11Adult Use Dispensing Organization License, or a medical
12cannabis dispensing organization license issued under the
13Compassionate Use of Medical Cannabis Pilot Program to enter
14into any contract with any person licensed to cultivate,
15process, or transport cannabis whereby such dispensary
16organization agrees not to sell any cannabis cultivated,
17processed, transported, manufactured, or distributed by any
18other cultivator, transporter, or infuser, and any provision in
19any contract violative of this Section shall render the whole
20of such contract void and no action shall be brought thereon in
21any court.
 
22    Section 15-75. Inventory control system.
23    (a) A dispensing organization agent-in-charge shall have
24primary oversight of the dispensing organization's cannabis
25inventory verification system, and its point-of-sale system.

 

 

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1The inventory point-of-sale system shall be real-time,
2web-based, and accessible by the Department at any time. The
3point-of-sale system shall track, at a minimum the date of
4sale, amount, price, and currency.
5    (b) A dispensing organization shall establish an account
6with the State's verification system that documents:
7        (1) Each sales transaction at the time of sale and each
8    day's beginning inventory, acquisitions, sales, disposal,
9    and ending inventory.
10        (2) Acquisition of cannabis and cannabis-infused
11    products from a licensed adult use cultivation center,
12    craft grower, infuser, or transporter, including:
13            (i) A description of the products, including the
14        quantity, strain, variety, and batch number of each
15        product received;
16            (ii) The name and registry identification number
17        of the licensed adult use cultivation center, craft
18        grower, or infuser providing the cannabis and
19        cannabis-infused products;
20            (iii) The name and registry identification number
21        of the licensed adult use cultivation center, craft
22        grower, infuser, or transportation agent delivering
23        the cannabis;
24            (iv) The name and registry identification number
25        of the dispensing organization agent receiving the
26        cannabis; and

 

 

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1            (v) The date of acquisition.
2        (3) The disposal of cannabis, including:
3            (i) A description of the products, including the
4        quantity, strain, variety, batch number, and reason
5        for the cannabis being disposed;
6            (ii) The method of disposal; and
7            (iii) The date and time of disposal.
8    (c) Upon cannabis delivery, a dispensing organization
9shall confirm the product's name, strain name, weight, and
10identification number on the manifest matches the information
11on the cannabis product label and package. The product name
12listed and the weight listed in the State's verification system
13shall match the product packaging.
14    (d) The agent-in-charge shall conduct daily inventory
15reconciliation documenting and balancing cannabis inventory by
16confirming the State's verification system matches the
17dispensing organization's point-of-sale system and the amount
18of physical product at the dispensary.
19        (1) A dispensing organization must receive Department
20    approval before completing an inventory adjustment. It
21    shall provide a detailed reason for the adjustment.
22    Inventory adjustment documentation shall be kept at the
23    dispensary for 2 years from the date performed.
24        (2) If the dispensing organization identifies an
25    imbalance in the amount of cannabis after the daily
26    inventory reconciliation due to mistake, the dispensing

 

 

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

 

 

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1    include any other information the Department deems
2    necessary in order to effectively administer this Act and
3    all rules, orders, and final decisions promulgated under
4    this Act. Statements required by this Section shall be
5    filed with the Department within 60 days after the end of
6    the calendar year. The compilation report shall include a
7    letter authored by a licensed certified public accountant
8    that it has been reviewed and is accurate based on the
9    information provided. The dispensing organization,
10    financial statement, and accompanying documents are not
11    required to be audited unless specifically requested by the
12    Department.
13    (e) A dispensing organization shall:
14        (1) Maintain the documentation required in this
15    Section in a secure locked location at the dispensing
16    organization for 5 years from the date on the document;
17        (2) Provide any documentation required to be
18    maintained in this Section to the Department for review
19    upon request; and
20        (3) If maintaining a bank account, retain for a period
21    of 5 years a record of each deposit or withdrawal from the
22    account.
23    (f) If a dispensing organization chooses to have a return
24policy for cannabis and cannabis products, the dispensing
25organization shall seek prior approval from the Department.
 

 

 

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1    Section 15-80. Storage requirements.
2    (a) Authorized on-premises storage. A dispensing
3organization must store inventory on its premises. All
4inventory stored on the premises must be secured in a
5restricted access area and tracked consistently with the
6inventory tracking rules.
7    (b) A dispensary shall be of suitable size and construction
8to facilitate cleaning, maintenance, and proper operations.
9    (c) A dispensary shall maintain adequate lighting,
10ventilation, temperature, humidity control, and equipment.
11    (d) Containers storing cannabis that have been tampered
12with, damaged, or opened shall be labeled with the date opened
13and quarantined from other cannabis products in the vault until
14they are disposed.
15    (e) Cannabis that was tampered with, expired, or damaged
16shall not be stored at the premises for more than 7 calendar
17days.
18    (f) Cannabis samples shall be in a sealed container.
19Samples shall be maintained in the restricted access area.
20    (g) The dispensary storage areas shall be maintained in
21accordance with the security requirements in this Act and
22rules.
23    (h) Cannabis must be stored at appropriate temperatures and
24under appropriate conditions to help ensure that its packaging,
25strength, quality, and purity are not adversely affected.
 

 

 

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1    Section 15-85. Dispensing cannabis.
2    (a) Before a dispensing organization agent dispenses
3cannabis to a purchaser, the agent shall:
4        (1) Verify the age of the purchaser by checking a
5    government-issued identification card by use of an
6    electronic reader or electronic scanning device to scan a
7    purchaser's government-issued identification, if
8    applicable, to determine the purchaser's age and the
9    validity of the identification;
10        (2) Verify the validity of the government-issued
11    identification card;
12        (3) Offer any appropriate purchaser education or
13    support materials;
14        (4) Enter the following information into the State's
15    cannabis electronic verification system:
16            (i) The dispensing organization agent's
17        identification number;
18            (ii) The dispensing organization's identification
19        number;
20            (iii) The amount, type (including strain, if
21        applicable) of cannabis or cannabis-infused product
22        dispensed;
23            (iv) The date and time the cannabis was dispensed.
24    (b) A dispensing organization shall refuse to sell cannabis
25or cannabis-infused products to any person unless the person
26produces a valid identification showing that the person is 21

 

 

10100HB1438sam002- 136 -LRB101 04919 RLC 61359 a

1years of age or older. A medical cannabis dispensing
2organization may sell cannabis or cannabis-infused products to
3a person who is under 21 years of age if the sale complies with
4the provisions of the Compassionate Use of Medical Cannabis
5Pilot Program Act and rules.
6    (c) For the purposes of this Section, valid identification
7must:
8        (1) Be valid and unexpired;
9        (2) Contain a photograph and the date of birth of the
10    person.
 
11    Section 15-90. Destruction and disposal of cannabis.
12    (a) Cannabis and cannabis-infused products must be
13destroyed by rendering them unusable using methods approved by
14the Department that comply with this Act and rules.
15    (b) Cannabis waste rendered unusable must be promptly
16disposed according to this Act and rules. Disposal of the
17cannabis waste rendered unusable may be delivered to a
18permitted solid waste facility for final disposition.
19Acceptable permitted solid waste facilities include, but are
20not limited to:
21        (1) Compostable mixed waste: Compost, anaerobic
22    digester, or other facility with approval of the
23    jurisdictional health department.
24        (2) Noncompostable mixed waste: Landfill, incinerator,
25    or other facility with approval of the jurisdictional

 

 

10100HB1438sam002- 137 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 138 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 139 -LRB101 04919 RLC 61359 a

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

 

 

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1the Department.
2    (i) The Department may deny an application or renewal or
3discipline or revoke an agent-in-charge identification card
4for any of the following reasons:
5        (1) Submission of misleading, incorrect, false, or
6    fraudulent information in the application or renewal
7    application;
8        (2) Violation of the requirements of this Act or rules;
9        (3) Fraudulent use of the agent-in-charge
10    identification card;
11        (4) Selling, distributing, transferring in any manner,
12    or giving cannabis to any unauthorized person;
13        (5) Theft of cannabis, currency, or any other items
14    from a dispensary.
15        (6) Tampering with, falsifying, altering, modifying,
16    or duplicating an agent-in-charge identification card;
17        (7) Tampering with, falsifying, altering, or modifying
18    the surveillance video footage, point-of-sale system, or
19    the State's verification system;
20        (8) Failure to notify the Department immediately upon
21    discovery that the agent-in-charge identification card has
22    been lost, stolen, or destroyed;
23        (9) Failure to notify the Department within 5 business
24    days after a change in the information provided in the
25    application for an agent-in-charge identification card;
26        (10) Conviction of a felony offense in accordance with

 

 

10100HB1438sam002- 141 -LRB101 04919 RLC 61359 a

1    Sections 2105-131, 2105-135, and 2105-205 of the
2    Department of Professional Regulation Law of the Civil
3    Administrative Code of Illinois or any incident listed in
4    this Act or rules following the issuance of an
5    agent-in-charge identification card;
6        (11) Dispensing to purchasers in amounts above the
7    limits provided in this Act; or
8        (12) Delinquency in filing any required tax returns or
9    paying any amounts owed to the State of Illinois
 
10    Section 15-100. Security.
11    (a) A dispensing organization shall implement security
12measures to deter and prevent entry into and theft of cannabis
13or currency.
14    (b) A dispensing organization shall submit any changes to
15the floor plan or security plan to the Department for
16pre-approval. All cannabis shall be maintained and stored in a
17restricted access area during construction.
18    (c) The dispensing organization shall implement security
19measures to protect the premises, purchasers, and dispensing
20organization agents including, but not limited to the
21following:
22        (1) Establish a locked door or barrier between the
23    facility's entrance and the limited access area;
24        (2) Prevent individuals from remaining on the premises
25    if they are not engaging in activity permitted by this Act

 

 

10100HB1438sam002- 142 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 143 -LRB101 04919 RLC 61359 a

1    the locks, or stored or placed in a location accessible to
2    persons other than specifically authorized personnel;
3        (12) Prohibit accessibility of security measures,
4    including combination numbers, passwords, or electronic or
5    biometric security systems to persons other than
6    specifically authorized dispensing organization agents;
7        (13) Ensure that the dispensary interior and exterior
8    premises are sufficiently lit to facilitate surveillance;
9        (14) Ensure that trees, bushes, and other foliage
10    outside of the dispensary premises do not allow for a
11    person or persons to conceal themselves from sight;
12        (15) Develop emergency policies and procedures for
13    securing all product and currency following any instance of
14    diversion, theft, or loss of cannabis, and conduct an
15    assessment to determine whether additional safeguards are
16    necessary; and
17        (16) Develop sufficient additional safeguards in
18    response to any special security concerns, or as required
19    by the Department.
20    (d) The Department may request or approve alternative
21security provisions that it determines are an adequate
22substitute for a security requirement specified in this
23Article. Any additional protections may be considered by the
24Department in evaluating overall security measures.
25    (e) A dispensary organization may share premises with a
26craft grower or an infuser organization, or both, provided each

 

 

10100HB1438sam002- 144 -LRB101 04919 RLC 61359 a

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

 

 

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

 

 

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

 

 

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1shall incorporate continuous electronic video monitoring
2including the following:
3        (1) All monitors must be 19 inches or greater;
4        (2) Unobstructed video surveillance of all enclosed
5    dispensary areas, unless prohibited by law, including all
6    points of entry and exit that shall be appropriate for the
7    normal lighting conditions of the area under surveillance.
8    The cameras shall be directed so all areas are captured,
9    including, but not limited to, safes, vaults, sales areas,
10    and areas where cannabis is stored, handled, dispensed, or
11    destroyed. Cameras shall be angled to allow for facial
12    recognition, the capture of clear and certain
13    identification of any person entering or exiting the
14    dispensary area and in lighting sufficient during all times
15    of night or day;
16        (3) Unobstructed video surveillance of outside areas,
17    the storefront, and the parking lot, that shall be
18    appropriate for the normal lighting conditions of the area
19    under surveillance. Cameras shall be angled so as to allow
20    for the capture of facial recognition, clear and certain
21    identification of any person entering or exiting the
22    dispensary and the immediate surrounding area, and license
23    plates of vehicles in the parking lot;
24        (4) 24-hour recordings from all video cameras
25    available for immediate viewing by the Department upon
26    request. Recordings shall not be destroyed or altered and

 

 

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1    shall be retained for at least 90 days. Recordings shall be
2    retained as long as necessary if the dispensing
3    organization is aware of the loss or theft of cannabis or a
4    pending criminal, civil, or administrative investigation
5    or legal proceeding for which the recording may contain
6    relevant information;
7        (5) The ability to immediately produce a clear, color
8    still photo from the surveillance video, either live or
9    recorded;
10        (6) A date and time stamp embedded on all video
11    surveillance recordings. The date and time shall be
12    synchronized and set correctly and shall not significantly
13    obscure the picture;
14        (7) The ability to remain operational during a power
15    outage and ensure all access doors are not solely
16    controlled by an electronic access panel to ensure that
17    locks are not released during a power outage;
18        (8) All video surveillance equipment shall allow for
19    the exporting of still images in an industry standard image
20    format, including .jpg, .bmp, and .gif. Exported video
21    shall have the ability to be archived in a proprietary
22    format that ensures authentication of the video and
23    guarantees that no alteration of the recorded image has
24    taken place. Exported video shall also have the ability to
25    be saved in an industry standard file format that can be
26    played on a standard computer operating system. All

 

 

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

 

 

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

 

 

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1    (a) If a dispensing organization decides not to renew its
2license or decides to close its business, it shall promptly
3notify the Department not less than 3 months before the
4effective date of the closing date or as otherwise authorized
5by the Department.
6    (b) The dispensing organization shall work with the
7Department to develop a closure plan that addresses, at a
8minimum, the transfer of business records, transfer of cannabis
9products, and anything else the Department finds necessary.
 
10    Section 15-125. Fees. After January 1, 2022, the Department
11may by rule modify any fee established under this Article.
 
12    Section 15-135. Investigations.
13    (a) Dispensing organizations are subject to random and
14unannounced dispensary inspections and cannabis testing by the
15Department, the Department of State Police, and local law
16enforcement.
17    (b) The Department and its authorized representatives may
18enter any place, including a vehicle, in which cannabis is
19held, stored, dispensed, sold, produced, delivered,
20transported, manufactured, or disposed of and inspect, in a
21reasonable manner, the place and all pertinent equipment,
22containers and labeling, and all things including records,
23files, financial data, sales data, shipping data, pricing data,
24personnel data, research, papers, processes, controls, and

 

 

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1facility, and inventory any stock of cannabis and obtain
2samples of any cannabis or cannabis-infused product, any labels
3or containers for cannabis, or paraphernalia.
4    (c) The Department may conduct an investigation of an
5applicant, application, dispensing organization, principal
6officer, dispensary agent, third party vendor, or any other
7party associated with a dispensing organization for an alleged
8violation of this Act or rules or to determine qualifications
9to be granted a registration by the Department.
10    (d) The Department may require an applicant or holder of
11any license issued pursuant to this Article to produce
12documents, records, or any other material pertinent to the
13investigation of an application or alleged violations of this
14Act or rules. Failure to provide the required material may be
15grounds for denial or discipline.
16    (e) Every person charged with preparation, obtaining, or
17keeping records, logs, reports, or other documents in
18connection with this Act and rules and every person in charge,
19or having custody, of those documents shall, upon request by
20the Department, make the documents immediately available for
21inspection and copying by the Department, the Department's
22authorized representative, or others authorized by law to
23review the documents.
 
24    Section 15-140. Citations. The Department may issue
25nondisciplinary citations for minor violations. Any such

 

 

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1citation issued by the Department may be accompanied by a fee.
2The fee shall not exceed $20,000 per violation. The citation
3shall be issued to the licensee and shall contain the
4licensee's name and address, the licensee's license number, a
5brief factual statement, the Sections of the law allegedly
6violated, and the fee, if any, imposed. The citation must
7clearly state that the licensee may choose, in lieu of
8accepting the citation, to request a hearing. If the licensee
9does not dispute the matter in the citation with the Department
10within 30 days after the citation is served, then the citation
11shall become final and not subject to appeal. The penalty shall
12be a fee or other conditions as established by rule.
 
13    Section 15-145. Grounds for discipline.
14    (a) The Department may deny issuance, refuse to renew or
15restore, or may reprimand, place on probation, suspend, revoke,
16or take other disciplinary or nondisciplinary action against
17any license or agent identification card or may impose a fine
18for any of the following:
19        (1) Material misstatement in furnishing information to
20    the Department;
21        (2) Violations of this Act or rules;
22        (3) Obtaining an authorization or license by fraud or
23    misrepresentation;
24        (4) A pattern of conduct that demonstrates
25    incompetence or that the applicant has engaged in conduct

 

 

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1    or actions that would constitute grounds for discipline
2    under the Act;
3        (5) Aiding or assisting another person in violating any
4    provision of this Act or rules;
5        (6) Failing to respond to a written request for
6    information by the Department within 30 days;
7        (7) Engaging in unprofessional, dishonorable, or
8    unethical conduct of a character likely to deceive,
9    defraud, or harm the public;
10        (8) Adverse action by another United States
11    jurisdiction or foreign nation;
12        (9) A finding by the Department that the licensee,
13    after having his or her license placed on suspended or
14    probationary status, has violated the terms of the
15    suspension or probation;
16        (10) Conviction, entry of a plea of guilty, nolo
17    contendere, or the equivalent in a State or federal court
18    of a principal officer or agent-in-charge of a felony
19    offense in accordance with Sections 2105-131, 2105-135,
20    and 2105-205 of the Department of Professional Regulation
21    Law of the Civil Administrative Code of Illinois;
22        (11) Excessive use or addiction to alcohol, narcotics,
23    stimulants, or any other chemical agent or drug;
24        (12) A finding by the Department of a discrepancy in a
25    Department audit of cannabis;
26        (13) A finding by the Department of a discrepancy in a

 

 

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1    Department audit of capital or funds;
2        (14) A finding by the Department of acceptance of
3    cannabis from a source other than an Adult Use Cultivation
4    Center, craft grower, infuser, or transporting
5    organization licensed by the Department of Agriculture, or
6    a dispensing organization licensed by the Department;
7        (15) An inability to operate using reasonable
8    judgment, skill, or safety due to physical or mental
9    illness or other impairment or disability, including,
10    without limitation, deterioration through the aging
11    process or loss of motor skills or mental incompetence;
12        (16) Failing to report to the Department within the
13    time frames established, or if not identified, 14 days, of
14    any adverse action taken against the dispensing
15    organization or an agent by a licensing jurisdiction in any
16    state or any territory of the United States or any foreign
17    jurisdiction, any governmental agency, any law enforcement
18    agency or any court defined in this Section;
19        (17) Any violation of the dispensing organization's
20    policies and procedures submitted to the Department
21    annually as a condition for licensure;
22        (18) Failure to inform the Department of any change of
23    address within 10 business days;
24        (19) Disclosing customer names, personal information,
25    or protected health information in violation of any State
26    or federal law;

 

 

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1        (20) Operating a dispensary before obtaining a license
2    from the Department;
3        (21) Performing duties authorized by this Act prior to
4    receiving a license to perform such duties;
5        (22) Dispensing cannabis when prohibited by this Act or
6    rules;
7        (23) Any fact or condition that, if it had existed at
8    the time of the original application for the license, would
9    have warranted the denial of the license;
10        (24) Permitting a person without a valid agent
11    identification card to perform licensed activities under
12    this Act;
13        (25) Failure to assign an agent-in-charge as required
14    by this Article;
15        (26) Failure to provide the training required by
16    paragraph (3) of subsection (i) of Section 15-40 within the
17    provided timeframe
18        (27) Personnel insufficient in number or unqualified
19    in training or experience to properly operate the
20    dispensary business;
21        (28) Any pattern of activity that causes a harmful
22    impact on the community; and
23        (29) Failing to prevent diversion, theft, or loss of
24    cannabis.
25    (b) All fines and fees imposed under this Section shall be
26paid within 60 days after the effective date of the order

 

 

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1imposing the fine or as otherwise specified in the order.
2    (c) A circuit court order establishing that an
3agent-in-charge or principal officer holding an agent
4identification card is subject to involuntary admission as that
5term is defined in Section 1-119 or 1-119.1 of the Mental
6Health and Developmental Disabilities Code shall operate as a
7suspension of that card.
 
8    Section 15-150. Temporary suspension.
9    (a) The Secretary of Financial and Professional Regulation
10may temporarily suspend a dispensing organization license or an
11agent registration without a hearing if the Secretary finds
12that public safety or welfare requires emergency action. The
13Secretary shall cause the temporary suspension by issuing a
14suspension notice in connection with the institution of
15proceedings for a hearing.
16    (b) If the Secretary temporarily suspends a license or
17agent registration without a hearing, the licensee or agent is
18entitled to a hearing within 45 days after the suspension
19notice has been issued. The hearing shall be limited to the
20issues cited in the suspension notice, unless all parties agree
21otherwise.
22    (c) If the Department does not hold a hearing with 45 days
23after the date the suspension notice was issued, then the
24suspended license or registration shall be automatically
25reinstated and the suspension vacated.

 

 

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1    (d) The suspended licensee or agent may seek a continuance
2of the hearing date, during which time the suspension remains
3in effect and the license or registration shall not be
4automatically reinstated.
5    (e) Subsequently discovered causes of action by the
6Department after the issuance of the suspension notice may be
7filed as a separate notice of violation. The Department is not
8precluded from filing a separate action against the suspended
9licensee or agent.
 
10    Section 15-155. Consent to administrative supervision
11order. In appropriate cases, the Department may resolve a
12complaint against a licensee or agent through the issuance of a
13consent order for administrative supervision. A license or
14agent subject to a consent order shall be considered by the
15Department to hold a license or registration in good standing.
 
16    Section 15-160. Notice; hearing.
17    (a) The Department shall, before disciplining an applicant
18or licensee, at least 30 days before the date set for the
19hearing: (i) notify the accused in writing of the charges made
20and the time and place for the hearing on the charges; (ii)
21direct him or her to file a written answer to the charges under
22oath within 20 days after service; and (iii) inform the
23applicant or licensee that failure to answer will result in a
24default being entered against the applicant or licensee.

 

 

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1    (b) At the time and place fixed in the notice, the hearing
2officer appointed by the Secretary shall proceed to hear the
3charges, and the parties or their counsel shall be accorded
4ample opportunity to present any pertinent statements,
5testimony, evidence, and arguments. The hearing officer may
6continue the hearing from time to time. In case the person,
7after receiving the notice, fails to file an answer, his or her
8license may, in the discretion of the Secretary, having first
9received the recommendation of the hearing officer, be
10suspended, revoked, or placed on probationary status, or be
11subject to whatever disciplinary action the Secretary
12considers proper, including a fine, without hearing, if that
13act or acts charged constitute sufficient grounds for that
14action under this Act.
15    (c) The written notice and any notice in the subsequent
16proceeding may be served by regular mail or email to the
17licensee's or applicant's address of record.
 
18    Section 15-165. Subpoenas; oaths. The Department shall
19have the power to subpoena and bring before it any person and
20to take testimony either orally or by deposition, or both, with
21the same fees and mileage and in the same manner as prescribed
22by law in judicial proceedings in civil cases in courts in this
23State. The Secretary or the hearing officer shall each have the
24power to administer oaths to witnesses at any hearings that the
25Department is authorized to conduct.
 

 

 

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1    Section 15-170. Hearing; motion for rehearing.
2    (a) The hearing officer shall hear evidence in support of
3the formal charges and evidence produced by the licensee. At
4the conclusion of the hearing, the hearing officer shall
5present to the Secretary a written report of his or her
6findings of fact, conclusions of law, and recommendations.
7    (b) At the conclusion of the hearing, a copy of the hearing
8officer's report shall be served upon the applicant or licensee
9by the Department, either personally or as provided in this Act
10for the service of a notice of hearing. Within 20 calendar days
11after service, the applicant or licensee may present to the
12Department a motion in writing for rehearing, which shall
13specify the particular grounds for rehearing. The Department
14may respond to the motion for rehearing within 20 calendar days
15after its service on the Department. If no motion for rehearing
16is filed, then, upon the expiration of the time specified for
17filing such motion or upon denial of a motion for rehearing,
18the Secretary may enter an order in accordance with the
19recommendation of the hearing officer. If the applicant or
20licensee orders from the reporting service and pays for a
21transcript of the record within the time for filing a motion
22for rehearing, the 20-day period within which a motion may be
23filed shall commence upon the delivery of the transcript to the
24applicant or licensee.
25    (c) If the Secretary disagrees in any regard with the

 

 

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1report of the hearing officer, the Secretary may issue an order
2contrary to the report.
3    (d) Whenever the Secretary is not satisfied that
4substantial justice has been done, the Secretary may order a
5rehearing by the same or another hearing officer.
6    (e) At any point in any investigation or disciplinary
7proceeding under in this Article, both parties may agree to a
8negotiated consent order. The consent order shall be final upon
9signature of the Secretary.
 
10    Section 15-175. Review under the Administrative Review
11Law.
12    (a) All final administrative decisions of the Department
13hereunder shall be subject to judicial review under the
14provisions of the Administrative Review Law, and all amendment
15and modifications thereof. The term "administrative decision"
16is defined as in Section 3-101 of the Code of Civil Procedure.
17    (b) Proceedings for judicial review shall be commenced in
18the circuit court of the county in which the party applying for
19review resides, but if the party is not a resident of Illinois,
20the venue shall be in Sangamon County.
21    (c) The Department shall not be required to certify any
22record to the court, file any answer in court, or otherwise
23appear in any court in a judicial review proceeding, unless and
24until the Department has received from the plaintiff payment of
25the costs of furnishing and certifying the record, which costs

 

 

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1shall be determined by the Department. Failure on the part of
2the plaintiff to file a receipt in court shall be grounds for
3dismissal of the action.
 
4
ARTICLE 20.
5
ADULT USE CULTIVATION CENTERS

 
6    Section 20-1. Definition. In this Article, "Department"
7means the Department of Agriculture.
 
8    Section 20-5. Issuance of licenses. On or after July 1,
92021, the Department of Agriculture by rule may:
10        (1) Modify or change the number of cultivation center
11    licenses available, which shall at no time exceed 30
12    cultivation center licenses. In determining whether to
13    exercise the authority granted by this subsection, the
14    Department of Agriculture must consider the following
15    factors:
16            (A) The 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

 

 

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

 

 

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

 

 

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1    entity that holds the medical cannabis cultivation center
2    registration;
3        (4) Certification that the applicant will comply with
4    the requirements of Section 20-30;
5        (5) The legal name of the cultivation center;
6        (6) The physical address of the cultivation center;
7        (7) The name, address, social security number, and date
8    of birth of each principal officer and board member of the
9    cultivation center; each of those individuals shall be at
10    least 21 years of age;
11        (8) A nonrefundable Cannabis Business Development Fee
12    equal to 5% of the cultivation center's total sales between
13    June 1, 2018 to June 1, 2019 or $750,000, whichever is
14    less, but at not less than $250,000, to be deposited into
15    the Cannabis Business Development Fund; and
16        (9) A commitment to completing one of the following
17    Social Equity Inclusion Plans provided for in this
18    subsection (b) before the expiration of the Early Approval
19    Adult Use Cultivation Center License:
20            (A) A contribution of 5% of the cultivation
21        center's total sales from June 1, 2018 to June 1, 2019,
22        or $100,000, whichever is less, to one of the
23        following:
24                (i) the Cannabis Business Development Fund.
25            This is in addition to the fee required by item (8)
26            of this subsection (b);

 

 

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

 

 

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

 

 

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1shall expire March 31, 2022. The Early Approval Adult Use
2Cultivation Center Licensee shall receive written or
3electronic notice 90 days before the expiration of the license
4that the license will expire, and inform the license holder
5that it may apply for an Adult Use Cultivation Center License.
6The Department of Agriculture shall grant an Adult Use
7Dispensing Organization License within 60 days of an
8application being deemed complete if the applicant meets all of
9the criteria in Section 20-21.
10    (d) The license fee required by paragraph (1) of subsection
11(c) of this Section shall be in addition to any license fee
12required for the renewal of a registered medical cannabis
13cultivation center license that expires during the effective
14period of the Early Approval Adult Use Cultivation Center
15License.
16    (e) Applicants must submit all required information,
17including the requirements in subsection (b) of this Section,
18to the Department of Agriculture. Failure by an applicant to
19submit all required information may result in the application
20being disqualified.
21    (f) If the Department of Agriculture receives an
22application with missing information, the Department may issue
23a deficiency notice to the applicant. The applicant shall have
2410 calendar days from the date of the deficiency notice to
25submit complete information. Applications that are still
26incomplete after this opportunity to cure may be disqualified.

 

 

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1    (g) If an applicant meets all the requirements of
2subsection (b) of this Section, the Department of Agriculture
3shall issue the Early Approval Adult Use Cultivation Center
4License within 14 days of receiving the application unless:
5        (1) The licensee; principal officer, board member, or
6    person having a financial or voting interest of 5% or
7    greater in the licensee; or agent is delinquent in filing
8    any required tax returns or paying any amounts owed to the
9    State of Illinois;
10        (2) The Director of Agriculture determines there is
11    reason, based on an inordinate number of documented
12    compliance violations, the licensee is not entitled to an
13    Early Approval Adult Use Cultivation Center License; or
14        (3) The licensee fails to commit to the Social Equity
15    Inclusion Plan.
16    (h) A cultivation center may begin producing cannabis and
17cannabis-infused products once the Early Approval Adult Use
18Cultivation Center License is approved. A cultivation center
19that obtains an Early Approval Adult Use Cultivation Center
20License may begin selling cannabis and cannabis-infused
21products on December 1, 2019.
22    (i) An Early Approval Adult Use Cultivation Center License
23holder must continue to produce and provide an adequate supply
24of cannabis and cannabis-infused products for purchase by
25qualifying patients and caregivers. For the purposes of this
26subsection, "adequate supply" means a monthly production level

 

 

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

 

 

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1of Medical Cannabis Pilot Program Act, the Department of
2Agriculture may suspend or revoke the medical cannabis
3cultivation center license concurrently with the Early
4Approval Adult Use Cultivation Center License.
5    (n) All fees or fines collected from an Early Approval
6Adult Use Cultivation Center License holder as a result of a
7disciplinary action in the enforcement of this Act shall be
8deposited into the Cannabis Regulation Fund.
 
9    Section 20-15. Conditional Adult Use Cultivation Center
10application.
11    (a) If the Department of Agriculture makes available
12additional cultivation center licenses pursuant to Section
1320-5, applicants for a Conditional Adult Use Cultivation Center
14License shall electronically submit the following in such form
15as the Department of Agriculture may direct:
16        (1) the nonrefundable application fee set by rule by
17    the Department of Agriculture, to be deposited into the
18    Cannabis Regulation Fund;
19        (2) the legal name of the cultivation center;
20        (3) the proposed physical address of the cultivation
21    center;
22        (4) the name, address, social security number, and date
23    of birth of each principal officer and board member of the
24    cultivation center; each principal officer and board
25    member shall be at least 21 years of age;

 

 

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

 

 

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1        (9) proposed employment practices, in which the
2    applicant must demonstrate a plan of action to inform,
3    hire, and educate minorities, women, veterans, and persons
4    with disabilities, engage in fair labor practices, and
5    provide worker protections;
6        (10) whether an applicant can demonstrate experience
7    in or business practices that promote economic empowerment
8    in Disproportionately Impacted Areas;
9        (11) experience with the cultivation of agricultural
10    or horticultural products, operating an agriculturally
11    related business, or operating a horticultural business;
12        (12) a description of the enclosed, locked facility
13    where cannabis will be grown, harvested, manufactured,
14    processed, packaged, or otherwise prepared for
15    distribution to a dispensing organization;
16        (13) a survey of the enclosed, locked facility,
17    including the space used for cultivation;
18        (14) cultivation, processing, inventory, and packaging
19    plans;
20        (15) a description of the applicant's experience with
21    agricultural cultivation techniques and industry
22    standards;
23        (16) a list of any academic degrees, certifications, or
24    relevant experience of all prospective principal officers,
25    board members, and agents of the related business;
26        (17) the identity of every person having a financial or

 

 

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1    voting interest of 5% or greater in the cultivation center
2    operation with respect to which the license is sought,
3    whether a trust, corporation, partnership, limited
4    liability company, or sole proprietorship, including the
5    name and address of each person;
6        (18) a plan describing how the cultivation center will
7    address each of the following:
8            (i) energy needs, including estimates of monthly
9        electricity and gas usage, to what extent it will
10        procure energy from a local utility or from on-site
11        generation, and if it has or will adopt a sustainable
12        energy use and energy conservation policy;
13            (ii) water needs, including estimated water draw
14        and if it has or will adopt a sustainable water use and
15        water conservation policy; and
16            (iii) waste management, including if it has or will
17        adopt a waste reduction policy;
18        (19) a diversity plan that includes a narrative of not
19    more than 2,500 words that establishes a goal of diversity
20    in ownership, management, employment, and contracting to
21    ensure that diverse participants and groups are afforded
22    equality of opportunity;
23        (20) any other information required by rule;
24        (21) a recycling plan:
25            (A) Purchaser packaging, including cartridges,
26        shall be accepted by the applicant and recycled.

 

 

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

 

 

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

 

 

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1            than 6,000 square feet of canopy, the licensee
2            commits that all HVAC units will be
3            high-efficiency ductless split HVAC units, or
4            other more energy efficient equipment.
5                (ii) For cannabis grow operations with 6,000
6            square feet of canopy or more, the licensee commits
7            that all HVAC units will be variable refrigerant
8            flow HVAC units, or other more energy efficient
9            equipment.
10            (D) Water application.
11                (i) The cannabis cultivation facility commits
12            to use automated watering systems, including, but
13            not limited to, drip irrigation and flood tables,
14            to irrigate cannabis crop.
15                (ii) The cannabis cultivation facility commits
16            to measure runoff from watering events and report
17            this volume in its water usage plan, and that on
18            average, watering events shall have no more than
19            20% of runoff of water.
20            (E) Filtration. The cultivator commits that HVAC
21        condensate, dehumidification water, excess runoff, and
22        other wastewater produced by the cannabis cultivation
23        facility shall be captured and filtered to the best of
24        the facility's ability to achieve the quality needed to
25        be reused in subsequent watering rounds.
26            (F) Reporting energy use and efficiency as

 

 

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

 

 

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1organization, and quality of the applicant's responses to
2required information. Applicants shall be awarded points based
3on the following categories:
4        (1) Suitability of the proposed facility;
5        (2) Suitability of employee training plan;
6        (3) Security and recordkeeping;
7        (4) Cultivation plan;
8        (5) Product safety and labeling plan;
9        (6) Business plan;
10        (7) The applicant's status as a Social Equity
11    Applicant, which shall constitute no less than 20% of total
12    available points;
13        (8) Labor and employment practices, which shall
14    constitute no less than 2% of total available points;
15        (9) Environmental plan as described in paragraphs
16    (18), (21), (22), and (23) of subsection (a) of Section
17    20-15;
18        (10) The applicant is 51% or more owned and controlled
19    by an individual or individuals who have been an Illinois
20    resident for the past 5 years as proved by tax records;
21        (11) The applicant is 51% or more controlled and owned
22    by an individual or individuals who meet the qualifications
23    of a veteran as defined by Section 45-57 of the Illinois
24    Procurement Code;
25        (12) a diversity plan that includes a narrative of not
26    more than 2,500 words that establishes a goal of diversity

 

 

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1    in ownership, management, employment, and contracting to
2    ensure that diverse participants and groups are afforded
3    equality of opportunity; and
4        (13) Any other criteria the Department of Agriculture
5    may set by rule for points.
6    (b) The Department may also award bonus points for the
7applicant's plan to engage with the community. Bonus points
8will only be awarded if the Department receives applications
9that receive an equal score for a particular region.
10    (c) Should the applicant be awarded a cultivation center
11license, the information and plans that an applicant provided
12in its application, including any plans submitted for the
13acquiring of bonus points, becomes a mandatory condition of the
14permit. Any variation from or failure to perform such plans may
15result in discipline, including the revocation or nonrenewal of
16a license.
17    (d) Should the applicant be awarded a cultivation center
18license, it shall pay a fee of $100,000 prior to receiving the
19license, to be deposited into the Cannabis Regulation Fund. The
20Department of Agriculture may by rule adjust the fee in this
21Section after January 1, 2021.
 
22    Section 20-21. Adult Use Cultivation Center License.
23    (a) A person or entity is only eligible to receive an Adult
24Use Cultivation Center License if the person or entity has
25first been awarded a Conditional Adult Use Cultivation Center

 

 

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

 

 

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1    or board members causes a violation of Section 20-30;
2        (4) one or more of the principal officers or board
3    members is under 21 years of age;
4        (5) the person has submitted an application for a
5    permit under this Act that contains false information; or
6        (6) the licensee, principal officer, board member, or
7    person having a financial or voting interest of 5% or
8    greater in the licensee, or the agent is delinquent in
9    filing any required tax returns or paying any amounts owed
10    to the State of Illinois.
 
11    Section 20-30. Cultivation center requirements;
12prohibitions.
13    (a) The operating documents of a cultivation center shall
14include procedures for the oversight of the cultivation center
15a cannabis plant monitoring system including a physical
16inventory recorded weekly, accurate recordkeeping, and a
17staffing plan.
18    (b) A cultivation center shall implement a security plan
19reviewed by the Department of State Police that includes, but
20is not limited to: facility access controls, perimeter
21intrusion detection systems, personnel identification systems,
2224-hour surveillance system to monitor the interior and
23exterior of the cultivation center facility and accessibility
24to authorized law enforcement, the Department of Public Health
25where processing takes place, and the Department of Agriculture

 

 

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1in real time.
2    (c) All cultivation of cannabis by a cultivation center
3must take place in an enclosed, locked facility at the physical
4address provided to the Department of Agriculture during the
5licensing process. The cultivation center location shall only
6be accessed by the agents working for the cultivation center,
7the Department of Agriculture staff performing inspections,
8the Department of Public Health staff performing inspections,
9local and State law enforcement or other emergency personnel,
10contractors working on jobs unrelated to cannabis, such as
11installing or maintaining security devices or performing
12electrical wiring, transporting organization agents as
13provided in this Act, individuals in a mentoring or educational
14program approved by the State, or other individuals as provided
15by rule.
16    (d) A cultivation center may not sell or distribute any
17cannabis or cannabis-infused products to any person other than
18a dispensing organization, craft grower, infusing
19organization, transporter, or as otherwise authorized by rule.
20    (e) A cultivation center may not either directly or
21indirectly discriminate in price between different dispensing
22organizations, craft growers, or infuser organizations that
23are purchasing a like grade, strain, brand, and quality of
24cannabis or cannabis-infused product. Nothing in this
25subsection (e) prevents a cultivation centers from pricing
26cannabis differently based on differences in the cost of

 

 

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

 

 

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

 

 

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

 

 

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1    Section 20-35. Cultivation center agent identification
2card.
3    (a) The Department of Agriculture shall:
4        (1) establish by rule the information required in an
5    initial application or renewal application for an agent
6    identification card submitted under this Act and the
7    nonrefundable fee to accompany the initial application or
8    renewal application;
9        (2) verify the information contained in an initial
10    application or renewal application for an agent
11    identification card submitted under this Act, and approve
12    or deny an application within 30 days of receiving a
13    completed initial application or renewal application and
14    all supporting documentation required by rule;
15        (3) issue an agent identification card to a qualifying
16    agent within 15 business days of approving the initial
17    application or renewal application;
18        (4) enter the license number of the cultivation center
19    where the agent works; and
20        (5) allow for an electronic initial application and
21    renewal application process, and provide a confirmation by
22    electronic or other methods that an application has been
23    submitted. The Department of Agriculture may by rule
24    require prospective agents to file their applications by
25    electronic means and provide notices to the agents by
26    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 the cultivation
3center at which the agent is employed.
4    (c) The agent identification cards shall contain the
5following:
6        (1) the name of the cardholder;
7        (2) the date of issuance and expiration date of the
8    identification card;
9        (3) a random 10-digit alphanumeric identification
10    number containing at least 4 numbers and at least 4 letters
11    that is unique to the holder;
12        (4) a photograph of the cardholder; and
13        (5) the legal name of the cultivation center employing
14    the agent.
15    (d) An agent identification card shall be immediately
16returned to the cultivation center of the agent upon
17termination of his or her employment.
18    (e) Any agent identification card lost by a cultivation
19center agent shall be reported to the Department of State
20Police and the Department of Agriculture immediately upon
21discovery of the loss.
22    (f) The Department of Agriculture shall not issue an agent
23identification card if the applicant is delinquent in filing
24any required tax returns or paying any amounts owed to the
25State of Illinois.
 

 

 

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1    Section 20-40. Cultivation center background checks.
2    (a) Through the Department of State Police, the Department
3of Agriculture shall conduct a background check of the
4prospective principal officers, board members, and agents of a
5cultivation center applying for a license or identification
6card under this Act. The Department of State Police shall
7charge a fee set by rule for conducting the criminal history
8record check, which shall be deposited into the State Police
9Services Fund and shall not exceed the actual cost of the
10record check. In order to carry out this provision, each
11cultivation center prospective principal officer, board
12member, or agent shall submit a full set of fingerprints to the
13Department of State Police for the purpose of obtaining a State
14and federal criminal records check. These fingerprints shall be
15checked against the fingerprint records now and hereafter, to
16the extent allowed by law, filed in the Department of State
17Police and Federal Bureau of Investigation criminal history
18records databases. The Department of State Police shall
19furnish, following positive identification, all conviction
20information to the Department of Agriculture.
21    (b) When applying for the initial license or identification
22card, the background checks for all prospective principal
23officers, board members, and agents shall be completed before
24submitting the application to the licensing or issuing agency.
 
25    Section 20-45. Renewal of cultivation center licenses and

 

 

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1agent identification cards.
2    (a) Licenses and identification cards issued under this Act
3shall be renewed annually. A cultivation center shall receive
4written or electronic notice 90 days before the expiration of
5its current license that the license will expire. The
6Department of Agriculture shall grant a renewal within 45 days
7of submission of a renewal application if:
8        (1) the cultivation center submits a renewal
9    application and the required nonrefundable renewal fee of
10    $100,000, or another amount as the Department of
11    Agriculture may set by rule after January 1, 2021, to be
12    deposited into the Cannabis Regulation Fund.
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;
17        (3) the cultivation center has continued to operate in
18    accordance with all plans submitted as part of its
19    application and approved by the Department of Agriculture
20    or any amendments thereto that have been approved by the
21    Department of Agriculture;
22        (4) the cultivation center has submitted an agent,
23    employee, contracting, and subcontracting diversity report
24    as required by the Department; and
25        (5) the cultivation center has submitted an
26    environmental impact report.

 

 

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1    (b) If a cultivation center fails to renew its license
2before expiration, it shall cease operations until its license
3is renewed.
4    (c) If a cultivation center agent fails to renew his or her
5identification card before its expiration, he or she shall
6cease to work as an agent of the cultivation center until his
7or her identification card is renewed.
8    (d) Any cultivation center that continues to operate, or
9any cultivation center agent who continues to work as an agent,
10after the applicable license or identification card has expired
11without renewal is subject to the penalties provided under
12Section 45-5.
 
13    Section 20-50. Cultivator taxes; returns.
14    (a) A tax is imposed upon the privilege of cultivating and
15processing adult use cannabis at the rate of 7% of the gross
16receipts from the sale of cannabis by a cultivator to a
17dispensing organization. The sale of any adult use product that
18contains any amount of cannabis or any derivative thereof is
19subject to the tax under this Section on the full selling price
20of the product. The proceeds from this tax shall be deposited
21into the Cannabis Regulation Fund. This tax shall be paid by
22the cultivator who makes the first sale and is not the
23responsibility of a dispensing organization, qualifying
24patient, or purchaser.
25    (b)In the administration of and compliance with this

 

 

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1Section, the Department of Revenue and persons who are subject
2to this Section: (i) have the same rights, remedies,
3privileges, immunities, powers, and duties, (ii) are subject to
4the same conditions, restrictions, limitations, penalties, and
5definitions of terms, and (iii) shall employ the same modes of
6procedure as are set forth in the Cannabis Cultivation
7Privilege Tax Law and the Uniform Penalty and Interest Act as
8if those provisions were set forth in this Section.
9    (c)The tax imposed under this Act shall be in addition to
10all other occupation or privilege taxes imposed by the State of
11Illinois or by any municipal corporation or political
12subdivision thereof.
 
13
ARTICLE 25.
14
COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM

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

 

 

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

 

 

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1    (c) The Board may issue rules pertaining to the provisions
2in this Act.
3    (d) Notwithstanding any other provision of this Act,
4students shall be at least 18 years old in order to enroll in a
5licensee's Career in Cannabis Certificate's prescribed course
6of study.
 
7    Section 25-10. Issuance of Community College Cannabis
8Vocational Pilot Program licenses.
9    (a) The Department shall issue rules regulating the
10selection criteria for applicants by January 1, 2020. The
11Department shall make the application for a Program license
12available no later than February 1, 2020, and shall require
13that applicants submit the completed application no later than
14July 1, 2020.
15    (b) The Department shall by rule develop a system to score
16Program licenses to administratively rank applications based
17on the clarity, organization, and quality of the applicant's
18responses to required information. Applicants shall be awarded
19points that are based on or that meet the following categories:
20        (1) Geographic diversity of the applicants;
21        (2) Experience and credentials of the applicant's
22    faculty;
23        (3) At least 5 Program license awardees must have a
24    student population that is more than 50% low-income in each
25    of the past 4 years;

 

 

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

 

 

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1produced pursuant to this Article to a laboratory registered
2under this Act. All other cannabis produced by the licensee
3that was not shipped to a registered laboratory shall be
4destroyed within 5 weeks of being harvested.
5    (f) Licensees shall subscribe to the Department of
6Agriculture's cannabis plant monitoring system.
7    (g) Licensees shall maintain a weekly inventory system.
8    (h) No student participating in the cannabis curriculum
9necessary to obtain a Certificate may be in the licensee's
10facility unless a faculty agent-in-charge is also physically
11present in the facility.
12    (i) Licensees shall conduct post-certificate follow up
13surveys and record participating students' job placements
14within the cannabis business industry within a year of the
15student's completion.
16    (j) The Illinois Community College Board shall report
17annually to the Department on the race, ethnicity, and gender
18of all students participating in the cannabis curriculum
19necessary to obtain a Certificate, and of those students who
20obtain a Certificate.
 
21    Section 25-20. Faculty.
22    (a) All faculty members shall be required to maintain
23registration as an agent-in-charge and have a valid agent
24identification card prior to teaching or participating in the
25licensee's cannabis curriculum that involves instruction

 

 

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1offered in the enclosed, locked facility or facilities.
2    (b) All faculty receiving an agent-in-charge or agent
3identification card must successfully pass a background check
4required by Section 5-20 prior to participating in a licensee's
5cannabis curriculum that involves instruction offered in the
6enclosed, locked facility.
 
7    Section 25-25. Enforcement.
8    (a) The Department has the authority to suspend or revoke
9any faculty agent-in-charge or agent identification card for
10any violation found under this Article.
11    (b) The Department has the authority to suspend or revoke
12any Program license for any violation found under this Article.
13    (c) The Board shall revoke the authority to offer the
14Certificate of any community college that has had its license
15revoked by the Department.
 
16    Section 25-30. Inspection rights.
17    (a) A licensee's enclosed, locked facilities are subject to
18random inspections by the Department and the Department of
19State Police.
20    (b) Nothing in this Section shall be construed to give the
21Department or the Department of State Police a right of
22inspection or access to any location on the licensee's premises
23beyond the facilities licensed under this Article.
 

 

 

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

 

 

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1    (b) An agent must keep his or her identification card
2visible at all times when in the enclosed, locked facility, or
3facilities for which he or she is an agent.
4    (c) The agent identification cards shall contain the
5following:
6        (1) the name of the cardholder;
7        (2) the date of issuance and expiration date of the
8    identification card;
9        (3) a random 10-digit alphanumeric identification
10    number containing at least 4 numbers and at least 4 letters
11    that is unique to the holder;
12        (4) a photograph of the cardholder; and
13        (5) the legal name of the community college employing
14    the agent.
15    (d) An agent identification card shall be immediately
16returned to the community college of the agent upon termination
17of his or her employment.
18    (e) Any agent identification card lost shall be reported to
19the Department of State Police and the Department of
20Agriculture immediately upon discovery of the loss.
 
21    Section 25-40. Study. By December 31, 2025, the Illinois
22Cannabis Regulation Oversight Officer, in coordination with
23the Board, must issue a report to the Governor and the General
24Assembly which includes, but is not limited to, the following:
25        (1) Number of security incidents or infractions at each

 

 

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1    licensee and any action taken or not taken;
2        (2) Statistics, based on race, ethnicity, gender, and
3    participating community college of:
4            (A) students enrolled in career in cannabis
5        classes;
6            (B) successful completion rates by community
7        college students for the Certificate;
8            (C) postgraduate job placement of students who
9        obtained a Certificate, including both cannabis
10        business establishment jobs and non-cannabis business
11        establishment jobs; and
12        (3) Any other relevant information.
 
13    Section 25-45. Repeal. This Article is repealed on July 1,
142026.
 
15
ARTICLE 30.
16
CRAFT GROWERS

 
17    Section 30-3. Definition. In this Article, "Department"
18means the Department of Agriculture.
 
19    Section 30-5. Issuance of licenses.
20    (a) The Department of Agriculture shall issue up to 40
21craft grower licenses by July 1, 2020. Any person or entity
22awarded a license pursuant to this subsection shall only hold

 

 

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1one craft grower license and may not sell that license until
2after December 21, 2021.
3    (b) By December 21, 2021, the Department of Agriculture
4shall issue up to 60 additional craft grower licenses. Any
5person or entity awarded a license pursuant to this subsection
6shall not hold more than 2 craft grower licenses. The person or
7entity awarded a license pursuant to this subsection or
8subsection (a) of this Section may sell its craft grower
9license subject to the restrictions of this Act or as
10determined by administrative rule. Prior to issuing such
11licenses, the Department may adopt rules through emergency
12rulemaking in accordance with subsection (gg) of Section 5-45
13of the Illinois Administrative Procedure Act, to modify or
14raise the number of craft grower licenses assigned to each
15region and modify or change the licensing application process
16to reduce or eliminate barriers. The General Assembly finds
17that the adoption of rules to regulate cannabis use is deemed
18an emergency and necessary for the public interest, safety, and
19welfare. In determining whether to exercise the authority
20granted by this subsection, the Department of Agriculture must
21consider the following factors:
22        (1) The percentage of cannabis sales occurring in
23    Illinois not in the regulated market using data from the
24    Substance Abuse and Mental Health Services Administration,
25    National Survey on Drug Use and Health, Illinois Behavioral
26    Risk Factor Surveillance System, and tourism data from the

 

 

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1    Illinois Office of Tourism to ascertain total cannabis
2    consumption in Illinois compared to the amount of sales in
3    licensed dispensing organizations;
4        (2) Whether there is an adequate supply of cannabis and
5    cannabis-infused products to serve registered medical
6    cannabis patients;
7        (3) Whether there is an adequate supply of cannabis and
8    cannabis-infused products to serve purchasers;
9        (4) Whether there is an oversupply of cannabis in
10    Illinois leading to trafficking of cannabis to states where
11    the sale of cannabis is not permitted by law;
12        (5) Population increases or shifts;
13        (6) The density of craft growers in any area of the
14    State;
15        (7) Perceived security risks of increasing the number
16    or location of craft growers;
17        (8) The past safety record of craft growers;
18        (9) The Department of Agriculture's capacity to
19    appropriately regulate additional licensees;
20        (10) The findings and recommendations from the
21    disparity and availability study commissioned by the
22    Illinois Cannabis Regulation Oversight Officer to reduce
23    or eliminate any identified barriers to entry in the
24    cannabis industry; and
25        (11) Any other criteria the Department of Agriculture
26    deems relevant.

 

 

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1    (c) After January 1, 2022, the Department of Agriculture
2may by rule modify or raise the number of craft grower licenses
3assigned to each region, and modify or change the licensing
4application process to reduce or eliminate barriers based on
5the criteria in subsection (b). At no time may the number of
6craft grower licenses exceed 150. Any person or entity awarded
7a license pursuant to this subsection shall not hold more than
83 craft grower licenses. A person or entity awarded a license
9pursuant to this subsection or subsection (a) or subsection (b)
10of this Section may sell its craft grower license or licenses
11subject to the restrictions of this Act or as determined by
12administrative rule.
 
13    Section 30-10. Application.
14    (a) When applying for a license, the applicant shall
15electronically submit the following in such form as the
16Department of Agriculture may direct:
17        (1) the nonrefundable application fee of $5,000 to be
18    deposited into the Cannabis Regulation Fund, or another
19    amount as the Department of Agriculture may set by rule
20    after January 1, 2021;
21        (2) the legal name of the craft grower;
22        (3) the proposed physical address of the craft grower;
23        (4) the name, address, social security number, and date
24    of birth of each principal officer and board member of the
25    craft grower; each principal officer and board member shall

 

 

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1    be at least 21 years of age;
2        (5) the details of any administrative or judicial
3    proceeding in which any of the principal officers or board
4    members of the craft grower (i) pled guilty, were
5    convicted, fined, or had a registration or license
6    suspended or revoked or (ii) managed or served on the board
7    of a business or non-profit organization that pled guilty,
8    was convicted, fined, or had a registration or license
9    suspended or revoked;
10        (6) proposed operating bylaws that include procedures
11    for the oversight of the craft grower, including the
12    development and implementation of a plant monitoring
13    system, accurate recordkeeping, staffing plan, and
14    security plan approved by the Department of State Police
15    that are in accordance with the rules issued by the
16    Department of Agriculture under this Act; a physical
17    inventory shall be performed of all plants and on a weekly
18    basis by the craft grower;
19        (7) verification from the Department of State Police
20    that all background checks of the prospective principal
21    officers, board members, and agents of the cannabis
22    business establishment have been conducted;
23        (8) a copy of the current local zoning ordinance or
24    permit and verification that the proposed craft grower is
25    in compliance with the local zoning rules and distance
26    limitations established by the local jurisdiction;

 

 

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1        (9) proposed employment practices, in which the
2    applicant must demonstrate a plan of action to inform,
3    hire, and educate minorities, women, veterans, and persons
4    with disabilities, engage in fair labor practices, and
5    provide worker protections;
6        (10) whether an applicant can demonstrate experience
7    in or business practices that promote economic empowerment
8    in Disproportionately Impacted Areas;
9        (11) experience with the cultivation of agricultural
10    or horticultural products, operating an agriculturally
11    related business, or operating a horticultural business;
12        (12) a description of the enclosed, locked facility
13    where cannabis will be grown, harvested, manufactured,
14    packaged, or otherwise prepared for distribution to a
15    dispensing organization or other cannabis business
16    establishment;
17        (13) a survey of the enclosed, locked facility,
18    including the space used for cultivation;
19        (14) cultivation, processing, inventory, and packaging
20    plans;
21        (15) a description of the applicant's experience with
22    agricultural cultivation techniques and industry
23    standards;
24        (16) a list of any academic degrees, certifications, or
25    relevant experience of all prospective principal officers,
26    board members, and agents of the related business;

 

 

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1        (17) the identity of every person having a financial or
2    voting interest of 5% or greater in the craft grower
3    operation, whether a trust, corporation, partnership,
4    limited liability company, or sole proprietorship,
5    including the name and address of each person;
6        (18) a plan describing how the craft grower will
7    address each of the following:
8            (i) energy needs, including estimates of monthly
9        electricity and gas usage, to what extent it will
10        procure energy from a local utility or from on-site
11        generation, and if it has or will adopt a sustainable
12        energy use and energy conservation policy;
13            (ii) water needs, including estimated water draw
14        and if it has or will adopt a sustainable water use and
15        water conservation policy; and
16            (iii) waste management, including if it has or will
17        adopt a waste reduction policy;
18        (19) a recycling plan:
19            (A) Purchaser packaging, including cartridges,
20        shall be accepted by the applicant and recycled.
21            (B) Any recyclable waste generated by the craft
22        grower facility shall be recycled per applicable State
23        and local laws, ordinances, and rules.
24            (C) Any cannabis waste, liquid waste, or hazardous
25        waste shall be disposed of in accordance with 8 Ill.
26        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
3        plant waste with compostable mixed waste to be disposed
4        of in accordance with 8 Ill Adm. Code 1000.460(g)(1).
5        (20) a commitment to comply with local waste
6    provisions: a craft grower facility must remain in
7    compliance with applicable State and federal environmental
8    requirements, including, but not limited to:
9            (A) storing, securing, and managing all
10        recyclables and waste, including organic waste
11        composed of or containing finished cannabis and
12        cannabis products, in accordance with applicable State
13        and local laws, ordinances, and rules; and
14            (B) Disposing liquid waste containing cannabis or
15        byproducts of cannabis processing in compliance with
16        all applicable State and federal requirements,
17        including, but not limited to, the cannabis
18        cultivation facility's permits under Title X of the
19        Environmental Protection Act.
20        (21) a commitment to a technology standard for resource
21    efficiency of the craft grower facility.
22            (A) A craft grower facility commits to use
23        resources efficiently, including energy and water. For
24        the following, a cannabis cultivation facility commits
25        to meet or exceed the technology standard identified in
26        paragraphs (i), (ii), (iii), and (iv), which may be

 

 

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

 

 

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1            that all HVAC units will be variable refrigerant
2            flow HVAC units, or other more energy efficient
3            equipment.
4            (D) Water application.
5                (i) The craft grower facility commits to use
6            automated watering systems, including, but not
7            limited to, drip irrigation and flood tables, to
8            irrigate cannabis crop.
9                (ii) The craft grower facility commits to
10            measure runoff from watering events and report
11            this volume in its water usage plan, and that on
12            average, watering events shall have no more than
13            20% of runoff of water.
14            (E) Filtration. The craft grower commits that HVAC
15        condensate, dehumidification water, excess runoff, and
16        other wastewater produced by the craft grower facility
17        shall be captured and filtered to the best of the
18        facility's ability to achieve the quality needed to be
19        reused in subsequent watering rounds.
20            (F) Reporting energy use and efficiency as
21        required by rule; and
22        (22) any other information required by rule.
23    (b) Applicants must submit all required information,
24including the information required in Section 30-15, 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    Section 30-15. Scoring applications.
10    (a) The Department of Agriculture shall by rule develop a
11system to score craft grower applications to administratively
12rank applications based on the clarity, organization, and
13quality of the applicant's responses to required information.
14Applicants shall be awarded points based on the following
15categories:
16        (1) Suitability of the proposed facility;
17        (2) Suitability of the employee training plan;
18        (3) Security and recordkeeping;
19        (4) Cultivation plan;
20        (5) Product safety and labeling plan;
21        (6) Business plan;
22        (7) The applicant's status as a Social Equity
23    Applicant, which shall constitute no less than 20% of total
24    available points;
25        (8) Labor and employment practices, which shall

 

 

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1    constitute no less than 2% of total available points;
2        (9) Environmental plan as described in paragraphs
3    (18), (19), (20), and (21) of subsection (a) of Section
4    30-10;
5        (10) The applicant is 51% or more owned and controlled
6    by an individual or individuals who have been an Illinois
7    resident for the past 5 years as proved by tax records;
8        (11) The applicant is 51% or more controlled and owned
9    by an individual or individuals who meet the qualifications
10    of a veteran as defined in Section 45-57 of the Illinois
11    Procurement Code;
12        (12) A diversity plan that includes a narrative of not
13    more than 2,500 words that establishes a goal of diversity
14    in ownership, management, employment, and contracting to
15    ensure that diverse participants and groups are afforded
16    equality of opportunity; and
17        (13) Any other criteria the Department of Agriculture
18    may set by rule for points.
19    (b) The Department may also award up to 2 bonus points for
20the applicant's plan to engage with the community. The
21applicant may demonstrate a desire to engage with its community
22by participating in one or more of, but not limited to, the
23following actions: (i) establishment of an incubator program
24designed to increase participation in the cannabis industry by
25persons who would qualify as Social Equity Applicants; (ii)
26providing financial assistance to substance abuse treatment

 

 

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1centers; (iii) educating children and teens about the potential
2harms of cannabis use; or (iv) other measures demonstrating a
3commitment to the applicant's community. Bonus points will only
4be awarded if the Department receives applications that receive
5an equal score for a particular region.
6    (c) Should the applicant be awarded a craft grower license,
7the information and plans that an applicant provided in its
8application, including any plans submitted for the acquiring of
9bonus points, shall be a mandatory condition of the license.
10Any variation from or failure to perform such plans may result
11in discipline, including the revocation or nonrenewal of a
12license.
13    (d) Should the applicant be awarded a craft grower license,
14the applicant shall pay a prorated fee of $40,000 prior to
15receiving the license, to be deposited into the Cannabis
16Regulation Fund. The Department of Agriculture may by rule
17adjust the fee in this Section after January 1, 2021.
 
18    Section 30-20. Issuance of license to certain persons
19prohibited.
20    (a) No craft grower license issued by the Department of
21Agriculture shall be issued to a person who is licensed by any
22licensing authority as a cultivation center, or to any
23partnership, corporation, limited liability company, or trust
24or any subsidiary, affiliate, or any other form of business
25enterprise having more than 10% legal, equitable, or beneficial

 

 

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1interest, directly or indirectly, in a person licensed in this
2State as a cultivation center, or to any principal officer,
3agent, employee, or human being with any form of ownership or
4control over a cultivation center except for a person who owns
5no more than 5% of the outstanding shares of a cultivation
6center whose shares are publicly traded on an exchange within
7the meaning of the Securities Exchange Act of 1934.
8    (b) A person who is licensed in this State as a craft
9grower, or any partnership, corporation, limited liability
10company, or trust or any subsidiary, affiliate, or agent
11thereof, or any other form of business enterprise licensed in
12this State as a craft grower shall not have more than 10%
13legal, equitable, or beneficial interest, directly or
14indirectly, in a person licensed as a cultivation center, nor
15shall any partnership, corporation, limited liability company,
16or trust or any subsidiary, affiliate, or any other form of
17business enterprise having any legal, equitable, or beneficial
18interest, directly or indirectly, in a person licensed in this
19State as a craft grower or a craft grower agent be a principal
20officer, agent, employee, or human being with any form of
21ownership or control over a cultivation center except for a
22person who owns no more than 5% of the outstanding shares of a
23cultivation center whose shares are publicly traded on an
24exchange within the meaning of the Securities Exchange Act of
251934.
 

 

 

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1    Section 30-25. Denial of application. An application for a
2craft grower license must be denied if any of the following
3conditions are met:
4        (1) the applicant failed to submit the materials
5    required by this Article;
6        (2) the applicant would not be in compliance with local
7    zoning rules;
8        (3) one or more of the prospective principal officers
9    or board members causes a violation of Section 30-20 of
10    this Article;
11        (4) one or more of the principal officers or board
12    members is under 21 years of age;
13        (5) the person has submitted an application for a
14    license under this Act that contains false information; or
15        (6) the licensee; principal officer, board member, or
16    person having a financial or voting interest of 5% or
17    greater in the licensee; or agent is delinquent in filing
18    any required tax returns or paying any amounts owed to the
19    State of Illinois.
 
20    Section 30-30. Craft grower requirements; prohibitions.
21    (a) The operating documents of a craft grower shall include
22procedures for the oversight of the craft grower, a cannabis
23plant monitoring system including a physical inventory
24recorded weekly, accurate recordkeeping, and a staffing plan.
25    (b) A craft grower shall implement a security plan reviewed

 

 

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1by the Department of State Police that includes, but is not
2limited to: facility access controls, perimeter intrusion
3detection systems, personnel identification systems, and a
424-hour surveillance system to monitor the interior and
5exterior of the craft grower facility and that is accessible to
6authorized law enforcement and the Department of Agriculture in
7real time.
8    (c) All cultivation of cannabis by a craft grower must take
9place in an enclosed, locked facility at the physical address
10provided to the Department of Agriculture during the licensing
11process. The craft grower location shall only be accessed by
12the agents working for the craft grower, the Department of
13Agriculture staff performing inspections, the Department of
14Public Health staff performing inspections, State and local law
15enforcement or other emergency personnel, contractors working
16on jobs unrelated to cannabis, such as installing or
17maintaining security devices or performing electrical wiring,
18transporting organization agents as provided in this Act, or
19participants in the incubator program, individuals in a
20mentoring or educational program approved by the State, or
21other individuals as provided by rule. However, if a craft
22grower shares a premises with an infuser or dispensing
23organization, agents from those other licensees may access the
24craft grower portion of the premises if that is the location of
25common bathrooms, lunchrooms, locker rooms, or other areas of
26the building where work or cultivation of cannabis is not

 

 

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1performed. At no time may an infuser or dispensing organization
2agent perform work at a craft grower without being a registered
3agent of the craft grower.
4    (d) A craft grower may not sell or distribute any cannabis
5to any person other than a cultivation center, a craft grower,
6an infuser organization, a dispensing organization, or as
7otherwise authorized by rule.
8    (e) A craft grower may not be located in an area zoned for
9residential use.
10    (f) A craft grower may not either directly or indirectly
11discriminate in price between different cannabis business
12establishments that are purchasing a like grade, strain, brand,
13and quality of cannabis or cannabis-infused product. Nothing in
14this subsection (f) prevents a craft grower from pricing
15cannabis differently based on differences in the cost of
16manufacturing or processing, the quantities sold, such as
17volume discounts, or the way the products are delivered.
18    (g) All cannabis harvested by a craft grower and intended
19for distribution to a dispensing organization must be entered
20into a data collection system, packaged and labeled under
21Section 55-21, and, if distribution is to a dispensing
22organization that does not share a premises with the dispensing
23organization receiving the cannabis, placed into a cannabis
24container for transport. All cannabis harvested by a craft
25grower and intended for distribution to a cultivation center,
26to an infuser organization, or to a craft grower with which it

 

 

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

 

 

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1        (iii) If the craft grower is located in a county with a
2    population of fewer the 700,000, the cannabis business
3    establishment receiving the cannabis is within 15 miles of
4    the craft grower.
5    (l) A craft grower may enter into a contract with a
6transporting organization to transport cannabis to a
7cultivation center, a craft grower, an infuser organization, a
8dispensing organization, or a laboratory.
9    (m) No person or entity shall hold any legal, equitable,
10ownership, or beneficial interest, directly or indirectly, of
11more than 3 craft grower licenses. Further, no person or entity
12that is employed by, an agent of, or has a contract to receive
13payment from or participate in the management of a craft
14grower, is a principal officer of a craft grower, or entity
15controlled by or affiliated with a principal officer of a craft
16grower shall hold any legal, equitable, ownership, or
17beneficial interest, directly or indirectly, in a craft grower
18license that would result in the person or entity owning or
19controlling in combination with any craft grower, principal
20officer of a craft grower, or entity controlled or affiliated
21with a principal officer of a craft grower by which he, she, or
22it is employed, is an agent of, or participates in the
23management of more than 3 craft grower licenses.
24    (n) It is unlawful for any person having a craft grower
25license or any officer, associate, member, representative, or
26agent of the licensee to offer or deliver money, or anything

 

 

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

 

 

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1    (p) A graft grower may process cannabis, cannabis
2concentrates, and cannabis-infused products.
3    (q) A craft grower must comply with any other requirements
4or prohibitions set by administrative rule of the Department of
5Agriculture.
 
6    Section 30-35. Craft grower agent identification card.
7    (a) The Department of Agriculture shall:
8        (1) establish by rule the information required in an
9    initial application or renewal application for an agent
10    identification card submitted under this Act and the
11    nonrefundable fee to accompany the initial application or
12    renewal application;
13        (2) verify the information contained in an initial
14    application or renewal application for an agent
15    identification card submitted under this Act and approve or
16    deny an application within 30 days of receiving a completed
17    initial application or renewal application and all
18    supporting documentation required by rule;
19        (3) issue an agent identification card to a qualifying
20    agent within 15 business days of approving the initial
21    application or renewal application;
22        (4) enter the license number of the craft grower where
23    the agent works; and
24        (5) allow for an electronic initial application and
25    renewal application process, and provide a confirmation by

 

 

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

 

 

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1loss.
 
2    Section 30-40. Craft grower background checks.
3    (a) Through the Department of State Police, the Department
4of Agriculture shall conduct a background check of the
5prospective principal officers, board members, and agents of a
6craft grower applying for a license or identification card
7under this Act. The Department of State Police shall charge a
8fee set by rule for conducting the criminal history record
9check, which shall be deposited into the State Police Services
10Fund and shall not exceed the actual cost of the record check.
11In order to carry out this Section, each craft grower
12organization's prospective principal officer, board member, or
13agent shall submit a full set of fingerprints to the Department
14of State Police for the purpose of obtaining a State and
15federal criminal records check. These fingerprints shall be
16checked against the fingerprint records now and hereafter, to
17the extent allowed by law, filed in the Department of State
18Police and Federal Bureau of Investigation criminal history
19records databases. The Department of State Police shall
20furnish, following positive identification, all conviction
21information to the Department of Agriculture.
22    (b) When applying for the initial license or identification
23card, the background checks for all prospective principal
24officers, board members, and agents shall be completed before
25submitting the application to the licensing or issuing agency.
 

 

 

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1    Section 30-45. Renewal of craft grower licenses and agent
2identification cards.
3    (a) Licenses and identification cards issued under this Act
4shall be renewed annually. A craft grower shall receive written
5or electronic notice 90 days before the expiration of its
6current license that the license will expire. The Department of
7Agriculture shall grant a renewal within 45 days of submission
8of a renewal application if:
9        (1) the craft grower submits a renewal application and
10    the required nonrefundable renewal fee of $40,000, or
11    another amount as the Department of Agriculture may set by
12    rule after January 1, 2021;
13        (2) the Department of Agriculture has not suspended the
14    license of the craft grower or suspended or revoked the
15    license for violating this Act or rules adopted under this
16    Act;
17        (3) the craft grower has continued to operate in
18    accordance with all plans submitted as part of its
19    application and approved by the Department of Agriculture
20    or any amendments thereto that have been approved by the
21    Department of Agriculture;
22        (4) the craft grower has submitted an agent, employee,
23    contracting, and subcontracting diversity report as
24    required by the Department; and
25        (5) the craft grower has submitted an environmental

 

 

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1    impact report.
2    (b) If a craft grower fails to renew its license before
3expiration, it shall cease operations until its license is
4renewed.
5    (c) If a craft grower agent fails to renew his or her
6identification card before its expiration, he or she shall
7cease to work as an agent of the craft grower organization
8until his or her identification card is renewed.
9    (d) Any craft grower that continues to operate, or any
10craft grower agent who continues to work as an agent, after the
11applicable license or identification card has expired without
12renewal is subject to the penalties provided under Section
1345-5.
14    (e) All fees or fines collected from the renewal of a craft
15grower license shall be deposited into the Cannabis Regulation
16Fund.
 
17    Section 30-50. Craft grower taxes; returns.
18    (a) A tax is imposed upon the privilege of cultivating and
19processing adult use cannabis at the rate of 7% of the gross
20receipts from the sale of cannabis by a craft grower to a
21dispensing organization. The sale of any adult use product that
22contains any amount of cannabis or any derivative thereof is
23subject to the tax under this Section on the full selling price
24of the product. The proceeds from this tax shall be deposited
25into the Cannabis Regulation Fund. This tax shall be paid by

 

 

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1the craft grower who makes the first sale and is not the
2responsibility of a dispensing organization, qualifying
3patient, or purchaser.
4    (b)In the administration of and compliance with this
5Section, the Department of Revenue and persons who are subject
6to this Section: (i) have the same rights, remedies,
7privileges, immunities, powers, and duties, (ii) are subject to
8the same conditions, restrictions, limitations, penalties, and
9definitions of terms, and (iii) shall employ the same modes of
10procedure as are set forth in the Cannabis Cultivation
11Privilege Tax Law and the Uniform Penalty and Interest Act as
12if those provisions were set forth in this Section.
13    (c)The tax imposed under this Act shall be in addition to
14all other occupation or privilege taxes imposed by the State of
15Illinois or by any municipal corporation or political
16subdivision thereof.
 
17
ARTICLE 35.
18
INFUSER ORGANIZATIONS

 
19    Section 35-3. Definitions. In this Article:
20    "Department" means the Department of Agriculture.
 
21    Section 35-5. Issuance of licenses.
22    (a) The Department of Agriculture shall issue up to 40
23infuser licenses through a process provided for in this Article

 

 

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

 

 

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1    National Survey on Drug Use and Health, Illinois Behavioral
2    Risk Factor Surveillance System, and tourism data from the
3    Illinois Office of Tourism to ascertain total cannabis
4    consumption in Illinois compared to the amount of sales in
5    licensed dispensing organizations;
6        (2) whether there is an adequate supply of cannabis and
7    cannabis-infused products to serve registered medical
8    cannabis patients;
9        (3) whether there is an adequate supply of cannabis and
10    cannabis-infused products to sere purchasers:
11        (4) whether there is an oversupply of cannabis in
12    Illinois leading to trafficking of cannabis to any other
13    state;
14        (5) population increases or shifts;
15        (6) changes to federal law;
16        (7) perceived security risks of increasing the number
17    or location of infuser organizations;
18        (8) the past security records of infuser
19    organizations;
20        (9) the Department of Agriculture's capacity to
21    appropriately regulate additional licenses;
22        (10) the findings and recommendations from the
23    disparity and availability study commissioned by the
24    Illinois Cannabis Regulation Oversight Officer to reduce
25    or eliminate any identified barriers to entry in the
26    cannabis industry; and

 

 

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1        (11) any other criteria the Department of Agriculture
2    deems relevant.
3    (d) After January 1, 2022, the Department of Agriculture
4may by rule modify or raise the number of infuser licenses, and
5modify or change the licensing application process to reduce or
6eliminate barriers based on the criteria in subsection (c).
 
7    Section 35-10. Application.
8    (a) When applying for a license, the applicant shall
9electronically submit the following in such form as the
10Department of Agriculture may direct:
11        (1) the nonrefundable application fee of $5,000 or,
12    after January 1, 2021, another amount as set by rule by the
13    Department of Agriculture, to be deposited into the
14    Cannabis Regulation Fund;
15        (2) the legal name of the infuser;
16        (3) the proposed physical address of the infuser;
17        (4) the name, address, social security number, and date
18    of birth of each principal officer and board member of the
19    infuser; each principal officer and board member shall be
20    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 infuser (i) pled guilty, were convicted,
24    fined, or had a registration or license suspended or
25    revoked, or (ii) managed or served on the board of a

 

 

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

 

 

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

 

 

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1        energy use and energy conservation policy;
2            (ii) water needs, including estimated water draw,
3        and if it has or will adopt a sustainable water use and
4        water conservation policy; and
5            (iii) waste management, including if it has or will
6        adopt a waste reduction policy;
7        (18) a recycling plan:
8            (A) a commitment that any recyclable waste
9        generated by the infuser shall be recycled per
10        applicable State and local laws, ordinances, and
11        rules; and
12            (B) a commitment to comply with local waste
13        provisions. An infuser commits to remain in compliance
14        with applicable State and federal environmental
15        requirements, including, but not limited to, storing,
16        securing, and managing all recyclables and waste,
17        including organic waste composed of or containing
18        finished cannabis and cannabis products, in accordance
19        with applicable State and local laws, ordinances, and
20        rules; and
21        (19) any other information required by rule.
22    (b) Applicants must submit all required information,
23including the information required in Section 35-15, to the
24Department of Agriculture. Failure by an applicant to submit
25all required information may result in the application being
26disqualified.

 

 

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1    (c) If the Department of Agriculture receives an
2application with missing information, the Department of
3Agriculture may issue a deficiency notice to the applicant. The
4applicant shall have 10 calendar days from the date of the
5deficiency notice to resubmit the incomplete information.
6Applications that are still incomplete after this opportunity
7to cure will not be scored and will be disqualified.
 
8    Section 35-15. Issuing licenses.
9    (a) The Department of Agriculture shall by rule develop a
10system to score infuser applications to administratively rank
11applications based on the clarity, organization, and quality of
12the applicant's responses to required information. Applicants
13shall be awarded points based on the following categories:
14        (1) Suitability of the proposed facility;
15        (2) Suitability of the employee training plan;
16        (3) Security and recordkeeping plan;
17        (4) Infusing plan;
18        (5) Product safety and labeling plan;
19        (6) Business plan;
20        (7) The applicant's status as a Social Equity
21    Applicant, which shall constitute no less than 20% of total
22    available points;
23        (8) Labor and employment practices, which shall
24    constitute no less than 2% of total available points;
25        (9) Environmental plan as described in paragraphs (17)

 

 

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1    and (18) of subsection (a) of Section 35-10;
2        (10) The applicant is 51% or more owned and controlled
3    by an individual or individuals who have been an Illinois
4    resident for the past 5 years as proved by tax records;
5        (11) The applicant is 51% or more controlled and owned
6    by an individual or individuals who meet the qualifications
7    of a veteran as defined by Section 45-57 of the Illinois
8    Procurement Code; and
9        (12) A diversity plan that includes a narrative of not
10    more than 2,500 words that establishes a goal of diversity
11    in ownership, management, employment, and contracting to
12    ensure that diverse participants and groups are afforded
13    equality of opportunity; and
14        (13) Any other criteria the Department of Agriculture
15    may set by rule for points.
16    (b) The Department may also award up to 2 bonus points for
17the applicant's plan to engage with the community. The
18applicant may demonstrate a desire to engage with its community
19by participating in one or more of, but not limited to, the
20following actions: (i) establishment of an incubator program
21designed to increase participation in the cannabis industry by
22persons who would qualify as Social Equity Applicants; (ii)
23providing financial assistance to substance abuse treatment
24centers; (iii) educating children and teens about the potential
25harms of cannabis use; or (iv) other measures demonstrating a
26commitment to the applicant's community. Bonus points will only

 

 

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

 

 

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1        (5) the person has submitted an application for a
2    license under this Act or this Article that contains false
3    information; or
4        (6) if the licensee; principal officer, board member,
5    or 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.
 
9    Section 35-25. Infuser organization requirements;
10prohibitions.
11    (a) The operating documents of an infuser shall include
12procedures for the oversight of the infuser, an inventory
13monitoring system including a physical inventory recorded
14weekly, accurate recordkeeping, and a staffing plan.
15    (b) An infuser shall implement a security plan reviewed by
16the Department of State Police that includes, but is not
17limited to: facility access controls, perimeter intrusion
18detection systems, personnel identification systems, and a
1924-hour surveillance system to monitor the interior and
20exterior of the infuser facility and that is accessible to
21authorized law enforcement, the Department of Public Health,
22and the Department of Agriculture in real time.
23    (c) All processing of cannabis by an infuser must take
24place in an enclosed, locked facility at the physical address
25provided to the Department of Agriculture during the licensing

 

 

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1process. The infuser location shall only be accessed by the
2agents working for the infuser, the Department of Agriculture
3staff performing inspections, the Department of Public Health
4staff performing inspections, State and local law enforcement
5or other emergency personnel, contractors working on jobs
6unrelated to cannabis, such as installing or maintaining
7security devices or performing electrical wiring, transporting
8organization agents as provided in this Act, participants in
9the incubator program, individuals in a mentoring or
10educational program approved by the State, local safety or
11health inspectors, or other individuals as provided by rule.
12However, if an infuser shares a premises with a craft grower or
13dispensing organization, agents from these other licensees may
14access the infuser portion of the premises if that is the
15location of common bathrooms, lunchrooms, locker rooms, or
16other areas of the building where processing of cannabis is not
17performed. At no time may a craft grower or dispensing
18organization agent perform work at an infuser without being a
19registered agent of the infuser.
20    (d) An infuser may not sell or distribute any cannabis to
21any person other than a dispensing organization, or as
22otherwise authorized by rule.
23    (e) An infuser may not either directly or indirectly
24discriminate in price between different cannabis business
25establishments that are purchasing a like grade, strain, brand,
26and quality of cannabis or cannabis-infused product. Nothing in

 

 

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1this subsection (e) prevents an infuser from pricing cannabis
2differently based on differences in the cost of manufacturing
3or processing, the quantities sold, such volume discounts, or
4the way the products are delivered.
5    (f) All cannabis infused by an infuser and intended for
6distribution to a dispensing organization must be entered into
7a data collection system, packaged and labeled under Section
855-21, and, if distribution is to a dispensing organization
9that does not share a premises with the infuser, placed into a
10cannabis container for transport. All cannabis produced by an
11infuser and intended for distribution to a cultivation center,
12infuser organization, or craft grower with which it does not
13share a premises, must be packaged in a labeled cannabis
14container and entered into a data collection system before
15transport.
16    (g) Infusers are subject to random inspections by the
17Department of Agriculture, the Department of Public Health, the
18Department of State Police, and local law enforcement.
19    (h) An infuser agent shall notify local law enforcement,
20the Department of State Police, and the Department of
21Agriculture within 24 hours of the discovery of any loss or
22theft. Notification shall be made by phone, in person, or by
23written or electronic communication.
24    (i) An infuser organization may not be located in an area
25zoned for residential use.
26    (j) An infuser or infuser agent shall not transport

 

 

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1cannabis or cannabis-infused products to any other cannabis
2business establishment without a transport organization
3license unless:
4        (i) If the infuser is located in a county with a
5    population of 3,000,000 or more, the cannabis business
6    establishment receiving the cannabis or cannabis-infused
7    product is within 2,000 feet of the property line of the
8    infuser;
9        (ii) If the infuser is located in a county with a
10    population of more than 700,000 but fewer than 3,000,000,
11    the cannabis business establishment receiving the cannabis
12    or cannabis-infused product is within 2 miles of the
13    infuser; or
14        (iii) If the infuser is located in a county with a
15    population of fewer than 700,000, the cannabis business
16    establishment receiving the cannabis or cannabis-infused
17    product is within 15 miles of the infuser.
18    (k) An infuser may enter into a contract with a
19transporting organization to transport cannabis to a
20dispensing organization or a laboratory.
21    (l) An infuser organization may share premises with a craft
22grower or a dispensing organization, or both, provided each
23licensee stores currency and cannabis or cannabis-infused
24products in a separate secured vault to which the other
25licensee does not have access or all licensees sharing a vault
26share more than 50% of the same ownership.

 

 

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1    (m) It is unlawful for any person or entity having an
2infuser organization license or any officer, associate,
3member, representative or agent of such licensee to offer or
4deliver money, or anything else of value, directly or
5indirectly to any person having an Early Approval Adult Use
6Dispensing Organization License, a Conditional Adult Use
7Dispensing Organization License, an Adult Use Dispensing
8Organization License, or a medical cannabis dispensing
9organization license issued under the Compassionate Use of
10Medical Cannabis Pilot Program Act, or to any person connected
11with or in any way representing, or to any member of the family
12of, such person holding an Early Approval Adult Use Dispensing
13Organization License, a Conditional Adult Use Dispensing
14Organization License, an Adult Use Dispensing Organization
15License, or a medical cannabis dispensing organization license
16issued under the Compassionate Use of Medical Cannabis Pilot
17Program Act, or to any stockholders in any corporation engaged
18the retail sales of cannabis, or to any officer, manager,
19agent, or representative of the Early Approval Adult Use
20Dispensing Organization License, a Conditional Adult Use
21Dispensing Organization License, an Adult Use Dispensing
22Organization License, or a medical cannabis dispensing
23organization license issued under the Compassionate Use of
24Medical Cannabis Pilot Program Act to obtain preferential
25placement within the dispensing organization, including,
26without limitation, on shelves and in display cases where

 

 

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1purchasers can view products, or on the dispensing
2organization's website.
3    (n) At no time shall an infuser organization or an infuser
4agent perform the extraction of cannabis concentrate from
5cannabis flower.
 
6    Section 35-30. Infuser agent identification card.
7    (a) The Department of Agriculture shall:
8        (1) establish by rule the information required in an
9    initial application or renewal application for an agent
10    identification card submitted under this Act and the
11    nonrefundable fee to accompany the initial application or
12    renewal application;
13        (2) verify the information contained in an initial
14    application or renewal application for an agent
15    identification card submitted under this Act, and approve
16    or deny an application within 30 days of receiving a
17    completed initial application or renewal application and
18    all supporting documentation required by rule;
19        (3) issue an agent identification card to a qualifying
20    agent within 15 business days of approving the initial
21    application or renewal application;
22        (4) enter the license number of the infuser where the
23    agent works; and
24        (5) allow for an electronic initial application and
25    renewal application process, and provide a confirmation by

 

 

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

 

 

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1loss.
 
2    Section 35-31. Ensuring an adequate supply of raw materials
3to serve infusers.
4    (a) As used in this Section, "raw materials" includes, but
5is not limited to, CO2 hash oil, "crude", "distillate", or any
6other cannabis concentrate extracted from cannabis flower by
7use of a solvent or a mechanical process.
8    (b) The Department of Agriculture may by rule design a
9method for assessing whether licensed infusers have access to
10an adequate supply of reasonably affordable raw materials,
11which may include but not be limited to: (i) a survey of
12infusers; (ii) a market study on the sales trends of
13cannabis-infused products manufactured by infusers; and (iii)
14the costs cultivation centers and craft growers assume for the
15raw materials they use in any cannabis-infused products they
16manufacture.
17    (c) The Department of Agriculture shall perform an
18assessment of whether infusers have access to an adequate
19supply of reasonably affordable raw materials that shall start
20no sooner than January 1, 2022 and shall conclude no later than
21April 1, 2022. The Department of Agriculture may rely on data
22from the Illinois Cannabis Regulation Oversight Officer as part
23of this assessment.
24    (d) The Department of Agriculture shall perform an
25assessment of whether infusers have access to an adequate

 

 

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1supply of reasonably affordable raw materials that shall start
2no sooner than January 1, 2023 and shall conclude no later than
3April 1, 2023. The Department of Agriculture may rely on data
4from the Cannabis Regulation Oversight Officer as part of this
5assessment.
6    (e) The Department of Agriculture may by rule adopt
7measures to ensure infusers have access to an adequate supply
8of reasonably affordable raw materials necessary for the
9manufacture of cannabis-infused products. Such measures may
10include, but not be limited to (i) requiring cultivation
11centers and craft growers to set aside a minimum amount of raw
12materials for the wholesale market or (ii) enabling infusers to
13apply for a processor license to extract raw materials from
14cannabis flower.
15    (f) If the Department of Agriculture determines processor
16licenses may be available to infusing organizations based upon
17findings made pursuant to subsection (e), infuser
18organizations may submit to the Department of Agriculture on
19forms provided by the Department of Agriculture the following
20information as part of an application to receive a processor
21license:
22        (1) experience with the extraction, processing, or
23    infusing of oils similar to those derived from cannabis, or
24    other business practices to be performed by the infuser;
25        (2) a description of the applicant's experience with
26    manufacturing equipment and chemicals to be used in

 

 

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1    processing;
2        (3) expertise in relevant scientific fields;
3        (4) a commitment that any cannabis waste, liquid waste,
4    or hazardous waste shall be disposed of in accordance with
5    8 Ill. Adm. Code 1000.460, except, to the greatest extent
6    feasible, all cannabis plant waste will be rendered
7    unusable by grinding and incorporating the cannabis plant
8    waste with compostable mixed waste to be disposed of in
9    accordance with Ill. Adm. Code 1000.460(g)(1); and
10        (5) any other information the Department of
11    Agriculture deems relevant.
12    (g) The Department of Agriculture may only issue an
13infusing organization a processor license if, based on the
14information pursuant to subsection (f) and any other criteria
15set by the Department of Agriculture, which may include but not
16be limited an inspection of the site where processing would
17occur, the Department of Agriculture is reasonably certain the
18infusing organization will process cannabis in a safe and
19compliant manner.
 
20    Section 35-35. Infuser organization background checks.
21    (a) Through the Department of State Police, the Department
22of Agriculture shall conduct a background check of the
23prospective principal officers, board members, and agents of an
24infuser applying for a license or identification card under
25this Act. The Department of State Police shall charge a fee set

 

 

10100HB1438sam002- 245 -LRB101 04919 RLC 61359 a

1by rule for conducting the criminal history record check, which
2shall be deposited into the State Police Services Fund and
3shall not exceed the actual cost of the record check. In order
4to carry out this provision, each infuser organization's
5prospective principal officer, board member, or agent shall
6submit a full set of fingerprints to the Department of State
7Police for the purpose of obtaining a State and federal
8criminal records check. These fingerprints shall be checked
9against the fingerprint records now and hereafter, to the
10extent allowed by law, filed in the Department of State Police
11and Federal Bureau of Investigation criminal history records
12databases. The Department of State Police shall furnish,
13following positive identification, all conviction information
14to the Department of Agriculture.
15    (b) When applying for the initial license or identification
16card, the background checks for all prospective principal
17officers, board members, and agents shall be completed before
18submitting the application to the licensing or issuing agency.
 
19    Section 35-40. Renewal of infuser organization licenses
20and agent identification cards.
21    (a) Licenses and identification cards issued under this Act
22shall be renewed annually. An infuser organization shall
23receive written or electronic notice 90 days before the
24expiration of its current license that the license will expire.
25The Department of Agriculture shall grant a renewal within 45

 

 

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

 

 

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1    (d) Any infuser organization that continues to operate, or
2any infuser organization agent who continues to work as an
3agent, after the applicable license or identification card has
4expired without renewal is subject to the penalties provided
5under Section 35-25.
6    (e) The Department shall not renew a license or an agent
7identification card if the applicant is delinquent in filing
8any required tax returns or paying any amounts owed to the
9State of Illinois.
 
10
ARTICLE 40.
11
TRANSPORTING ORGANIZATIONS

 
12    Section 40-1. Definition. In this Article, "Department"
13means the Department of Agriculture.
 
14    Section 40-5. Issuance of licenses.
15    (a) The Department shall issue transporting licenses
16through a process provided for in this Article no later than
17July 1, 2020.
18    (b) The Department shall make the application for
19transporting organization licenses available on January 7,
202020 and shall receive such applications no later than March
2115, 2020. Thereafter, the Department of Agriculture shall make
22available such applications on every January 7 thereafter or if
23that date falls on a weekend or holiday, the business day

 

 

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1immediately succeeding the weekend or holiday and shall receive
2such applications no later than March 15 or the succeeding
3business day thereafter.
 
4    Section 40-10. Application.
5    (a) When applying for a transporting organization license,
6the applicant shall electronically submit the following in such
7form as the Department of Agriculture may direct:
8        (1) the nonrefundable application fee of $5,000 or,
9    after January 1, 2021, another amount as set by rule by the
10    Department of Agriculture, to be deposited into the
11    Cannabis Regulation Fund;
12        (2) the legal name of the transporting organization;
13        (3) the proposed physical address of the transporting
14    organization, if one is proposed;
15        (4) the name, address, social security number, and date
16    of birth of each principal officer and board member of the
17    transporting organization; each principal officer and
18    board member shall be at least 21 years of age;
19        (5) the details of any administrative or judicial
20    proceeding in which any of the principal officers or board
21    members of the transporting organization (i) pled guilty,
22    were convicted, fined, or had a registration or license
23    suspended or revoked, or (ii) managed or served on the
24    board of a business or non-profit organization that pled
25    guilty, was convicted, fined, or had a registration or

 

 

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

 

 

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1    in or business practices that promote economic empowerment
2    in Disproportionately Impacted Areas;
3        (11) the number and type of equipment the transporting
4    organization will use to transport cannabis and
5    cannabis-infused products;
6        (12) loading, transporting, and unloading plans;
7        (13) a description of the applicant's experience in the
8    distribution or security business;
9        (14) the identity of every person having a financial or
10    voting interest of 5% or more in the transporting
11    organization with respect to which the license is sought,
12    whether a trust, corporation, partnership, limited
13    liability company, or sole proprietorship, including the
14    name and address of each person; and
15        (15) any other information required by rule.
16    (b) Applicants must submit all required information,
17including the information required in Section 40-35 to the
18Department. Failure by an applicant to submit all required
19information may result in the application being disqualified.
20    (c) If the Department receives an application with missing
21information, the Department of Agriculture may issue a
22deficiency notice to the applicant. The applicant shall have 10
23calendar days from the date of the deficiency notice to
24resubmit the incomplete information. Applications that are
25still incomplete after this opportunity to cure will not be
26scored and will be disqualified.
 

 

 

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1    Section 40-15. Issuing licenses.
2    (a) The Department of Agriculture shall by rule develop a
3system to score transporter applications to administratively
4rank applications based on the clarity, organization, and
5quality of the applicant's responses to required information.
6Applicants shall be awarded points based on the following
7categories:
8        (1) Suitability of employee training plan;
9        (2) Security and recordkeeping plan;
10        (3) Business plan;
11        (4) The applicant's status as a Social Equity
12    Applicant, which shall constitute no less than 20% of total
13    available points;
14        (5) Labor and employment practices, which shall
15    constitute no less than 2% of total available points;
16        (6) Environmental plan that demonstrates an
17    environmental plan of action to minimize the carbon
18    footprint, environmental impact, and resource needs for
19    the transporter, which may include, without limitation,
20    recycling cannabis product packaging;
21        (7) the applicant is 51% or more owned and controlled
22    by an individual or individuals who have been an Illinois
23    resident for the past 5 years as proved by tax records;
24        (8) The applicant is 51% or more controlled and owned
25    by an individual or individuals who meet the qualifications

 

 

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1    of a veteran as defined by Section 45-57 of the Illinois
2    Procurement Code;
3        (9) a diversity plan that includes a narrative of not
4    more than 2,500 words that establishes a goal of diversity
5    in ownership, management, employment, and contracting to
6    ensure that diverse participants and groups are afforded
7    equality of opportunity; and
8        (10) Any other criteria the Department of Agriculture
9    may set by rule for points.
10    (b) The Department may also award up to 2 bonus points for
11the applicant's plan to engage with the community. The
12applicant may demonstrate a desire to engage with its community
13by participating in one or more of, but not limited to, the
14following actions: (i) establishment of an incubator program
15designed to increase participation in the cannabis industry by
16persons who would qualify as Social Equity Applicants; (ii)
17providing financial assistance to substance abuse treatment
18centers; (iii) educating children and teens about the potential
19harms of cannabis use; or (iv) other measures demonstrating a
20commitment to the applicant's community. Bonus points will only
21be awarded if the Department receives applications that receive
22an equal score for a particular region.
23    (c) Applicants for transportation organization licenses
24that score at least 85% of available points according to the
25system developed by rule and meet all other requirements for a
26transporter license shall be issued a license by the Department

 

 

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1of Agriculture within 60 days of receiving the application.
2Applicants that were registered as medical cannabis
3cultivation centers prior to January 1, 2020 and who meet all
4other requirements for a transporter license shall be issued a
5license by the Department of Agriculture within 60 days of
6receiving the application.
7    (d) Should the applicant be awarded a transportation
8organization license, the information and plans that an
9applicant provided in its application, including any plans
10submitted for the acquiring of bonus points, shall be a
11mandatory condition of the permit. Any variation from or
12failure to perform such plans may result in discipline,
13including the revocation or nonrenewal of a license.
14    (e) Should the applicant be awarded a transporting
15organization license, the applicant shall pay a prorated fee of
16$10,000 prior to receiving the license, to be deposited into
17the Cannabis Regulation Fund. The Department of Agriculture may
18by rule adjust the fee in this Section after January 1, 2021.
 
19    Section 40-20. Denial of application. An application for a
20transportation organization license shall be denied if any of
21the following conditions are met:
22        (1) the applicant failed to submit the materials
23    required by this Article;
24        (2) the applicant would not be in compliance with local
25    zoning rules or permit requirements;

 

 

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

 

 

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

 

 

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1    Organization License, or a medical cannabis dispensing
2    organization license issued under the Compassionate Use of
3    Medical Cannabis Pilot Program Act;
4        (3) a person connected with or in any way representing,
5    or a member of the family of, a person holding an Early
6    Applicant Adult Use Dispensing Organization License, an
7    Adult Use Dispensing Organization License, or a medical
8    cannabis dispensing organization license issued under the
9    Compassionate Use of Medical Cannabis Pilot Program Act; or
10        (4) a stockholder, officer, manager, agent, or
11    representative of a corporation engaged in the retail sale
12    of cannabis, an Early Applicant Adult Use Dispensing
13    Organization License, an Adult Use Dispensing Organization
14    License, or a medical cannabis dispensing organization
15    license issued under the Compassionate Use of Medical
16    Cannabis Pilot Program Act.
17    (j) A transportation organization agent must keep his or
18her identification card visible at all times when on the
19property of a cannabis business establishment and during the
20transportation of cannabis when acting under his or her duties
21as a transportation organization agent. During these times, the
22transporter organization agent must also provide the
23identification card upon request of any law enforcement officer
24engaged in his or her official duties.
25    (k) A copy of the transporting organization's registration
26and a manifest for the delivery shall be present in any vehicle

 

 

10100HB1438sam002- 257 -LRB101 04919 RLC 61359 a

1transporting cannabis.
2    (l) Cannabis shall be transported so it is not visible or
3recognizable from outside the vehicle.
4    (m) A vehicle transporting cannabis must not bear any
5markings to indicate the vehicle contains cannabis or bear the
6name or logo of the cannabis business establishment.
7    (n) Cannabis must be transported in an enclosed, locked
8storage compartment that is secured or affixed to the vehicle.
9    (o) The Department of Agriculture may, by rule, impose any
10other requirements or prohibitions on the transportation of
11cannabis.
 
12    Section 40-30. Transporting agent identification card.
13    (a) The Department of Agriculture shall:
14        (1) establish by rule the information required in an
15    initial application or renewal application for an agent
16    identification card submitted under this Act and the
17    nonrefundable fee to accompany the initial application or
18    renewal application;
19        (2) verify the information contained in an initial
20    application or renewal application for an agent
21    identification card submitted under this Act and approve or
22    deny an application within 30 days of receiving a completed
23    initial application or renewal application and all
24    supporting documentation required by rule;
25        (3) issue an agent identification card to a qualifying

 

 

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

 

 

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

 

 

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1criminal records check. These fingerprints shall be checked
2against the fingerprint records now and hereafter, to the
3extent allowed by law, filed in the Department of State Police
4and Federal Bureau of Investigation criminal history records
5databases. The Department of State Police shall furnish,
6following positive identification, all conviction information
7to the Department of Agriculture.
8    (b) When applying for the initial license or identification
9card, the background checks for all prospective principal
10officers, board members, and agents shall be completed before
11submitting the application to the Department of Agriculture.
 
12    Section 40-40. Renewal of transporting organization
13licenses and agent identification cards.
14    (a) Licenses and identification cards issued under this Act
15shall be renewed annually. A transporting organization shall
16receive written or electronic notice 90 days before the
17expiration of its current license that the license will expire.
18The Department of Agriculture shall grant a renewal within 45
19days of submission of a renewal application if:
20        (1) the transporting organization submits a renewal
21    application and the required nonrefundable renewal fee of
22    $10,000, or after January 1, 2021, another amount set by
23    rule by the Department of Agriculture, to be deposited into
24    the Cannabis Regulation Fund;
25        (2) the Department of Agriculture has not suspended or

 

 

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

 

 

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1
ARTICLE 45.
2
ENFORCEMENT AND IMMUNITIES

 
3    Section 45-5. License suspension; revocation; other
4penalties.
5    (a) Notwithstanding any other criminal penalties related
6to the unlawful possession of cannabis, the Department of
7Financial and Professional Regulation and the Department of
8Agriculture may revoke, suspend, place on probation,
9reprimand, issue cease and desist orders, refuse to issue or
10renew a license, or take any other disciplinary or
11nondisciplinary action as each department may deem proper with
12regard to a cannabis business establishment or cannabis
13business establishment agent, including fines not to exceed:
14        (1) $50,000 for each violation of this Act or rules
15    adopted under this Act by a cultivation center or
16    cultivation center agent;
17        (2) $10,000 for each violation of this Act or rules
18    adopted under this Act by a dispensing organization or
19    dispensing organization agent;
20        (3) $15,000 for each violation of this Act or rules
21    adopted under this Act by a craft grower or craft grower
22    agent;
23        (4) $10,000 for each violation of this Act or rules
24    adopted under this Act by an infuser organization or

 

 

10100HB1438sam002- 263 -LRB101 04919 RLC 61359 a

1    infuser organization agent; and
2        (5) $10,000 for each violation of this Act or rules
3    adopted under this Act by a transporting organization or
4    transporting organization agent.
5    (b) The Department of Financial and Professional
6Regulation and the Department of Agriculture, as the case may
7be, shall consider licensee cooperation in any agency or other
8investigation in its determination of penalties imposed under
9this Section.
10    (c) The procedures for disciplining a cannabis business
11establishment or cannabis business establishment agent and for
12administrative hearings shall be determined by rule, and shall
13provide for the review of final decisions under the
14Administrative Review Law.
15    (d) The Attorney General may also enforce a violation of
16Section 55-20, Section 55-21, and Section 15-155 as an unlawful
17practice under the Consumer Fraud and Deceptive Business
18Practices Act.
 
19    Section 45-10. Immunities and presumptions related to the
20handling of cannabis by cannabis business establishments and
21their agents.
22    (a) A cultivation center, craft grower, infuser
23organization, or transporting organization is not subject to:
24(i) prosecution; (ii) search or inspection, except by the
25Department of Agriculture, the Department of Public Health, or

 

 

10100HB1438sam002- 264 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 265 -LRB101 04919 RLC 61359 a

1products, cannabis paraphernalia, or related supplies, and
2educational materials under this Act.
3    (d) A licensed dispensing organization agent is not subject
4to: (i) prosecution; (ii) search; or (iii) penalty in any
5manner, or denial of any right or privilege, including, but not
6limited to, civil penalty or disciplinary action by a business
7licensing board or entity, for working for a dispensing
8organization under this Act and rules adopted under this Act.
9    (e) Any cannabis, cannabis-infused product, cannabis
10paraphernalia, legal property, or interest in legal property
11that is possessed, owned, or used in connection with the use of
12cannabis as allowed under this Act, or acts incidental to that
13use, may not be seized or forfeited. This Act does not prevent
14the seizure or forfeiture of cannabis exceeding the amounts
15allowed under this Act, nor does it prevent seizure or
16forfeiture if the basis for the action is unrelated to the
17cannabis that is possessed, manufactured, transferred, or used
18under this Act.
19    (f) Nothing in this Act shall preclude local or State law
20enforcement agencies from searching a cultivation center,
21craft grower, infuser organization, transporting organization,
22or dispensing organization if there is probable cause to
23believe that the criminal laws of this State have been violated
24and the search is conducted in conformity with the Illinois
25Constitution, the Constitution of the United States, and
26applicable law.

 

 

10100HB1438sam002- 266 -LRB101 04919 RLC 61359 a

1    (g) Nothing in this Act shall preclude the Attorney General
2or other authorized government agency from investigating or
3bringing a civil action against a cannabis business
4establishment, or an agent thereof, for a violation of State
5law, including, but not limited to, civil rights violations and
6violations of the Consumer Fraud and Deceptive Business
7Practices Act.
 
8    Section 45-15. State standards and requirements. Any
9standards, requirements, and rules regarding the health and
10safety, environmental protection, testing, security, food
11safety, and worker protections established by the State shall
12be the minimum standards for all licensees under this Act
13statewide, where applicable. Knowing violations of any State or
14local law, ordinance, or rule conferring worker protections or
15legal rights on the employees of a licensee may be grounds for
16disciplinary action under this Act, in addition to penalties
17established elsewhere.
 
18    Section 45-20. Violation of tax Acts; refusal, revocation,
19or suspension of license or agent identification card.
20    (a) In addition to other grounds specified in this Act, the
21Department of Agriculture and Department of Financial and
22Professional Regulation, upon notification by the Department
23of Revenue, shall refuse the issuance or renewal of a license
24or agent identification card, or suspend or revoke the license

 

 

10100HB1438sam002- 267 -LRB101 04919 RLC 61359 a

1or agent identification card, of any person, for any of the
2following violations of any tax Act administered by the
3Department of Revenue:
4        (1) Failure to file a tax return.
5        (2) The filing of a fraudulent return.
6        (3) Failure to pay all or part of any tax or penalty
7    finally determined to be due.
8        (4) Failure to keep books and records.
9        (5) Failure to secure and display a certificate or
10    sub-certificate of registration, if required.
11        (6) Willful violation of any rule or regulation of the
12    Department relating to the administration and enforcement
13    of tax liability.
14    (b) After all violations of any of items (1) through (6) of
15subsection (a) have been corrected or resolved, the Department
16shall, upon request of the applicant or, if not requested, may
17notify the entities listed in subsection (a) that the
18violations have been corrected or resolved. Upon receiving
19notice from the Department that a violation of any of items (1)
20through (6) of subsection (a) have been corrected or otherwise
21resolved to the Department of Revenue's satisfaction, the
22Department of Agriculture and the Department of Financial and
23Professional Regulation may issue or renew the license or agent
24identification card, or vacate an order of suspension or
25revocation.
 

 

 

10100HB1438sam002- 268 -LRB101 04919 RLC 61359 a

1
ARTICLE 50.
2
LABORATORY TESTING

 
3    Section 50-5. Laboratory testing.
4    (a) Notwithstanding any other provision of law, the
5following acts, when performed by a cannabis testing facility
6with a current, valid registration, or a person 21 years of age
7or older who is acting in his or her capacity as an owner,
8employee, or agent of a cannabis testing facility, are not
9unlawful and shall not be an offense under Illinois law or be a
10basis for seizure or forfeiture of assets under Illinois law:
11        (1) possessing, repackaging, transporting, storing, or
12    displaying cannabis or cannabis-infused products;
13        (2) receiving or transporting cannabis or
14    cannabis-infused products from a cannabis business
15    establishment, a community college licensed under the
16    Community College Cannabis Vocational Training Pilot
17    Program, or a person 21 years of age or older; and
18        (3) returning or transporting cannabis or
19    cannabis-infused products to a cannabis business
20    establishment, a community college licensed under the
21    Community College Cannabis Vocational Training Pilot
22    Program, or a person 21 years of age or older.
23    (b)(1) No laboratory shall handle, test, or analyze
24cannabis unless approved by the Department of Agriculture in
25accordance with this Section.

 

 

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

 

 

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1accreditation and every annual report thereafter.
2    (c) Immediately before manufacturing or natural processing
3of any cannabis or cannabis-infused product or packaging
4cannabis for sale to a dispensary, each batch shall be made
5available by the cultivation center, craft grower, or infuser
6for an employee of an approved laboratory to select a random
7sample, which shall be tested by the approved laboratory for:
8        (1) microbiological contaminants;
9        (2) mycotoxins;
10        (3) pesticide active ingredients;
11        (4) residual solvent; and
12        (5) an active ingredient analysis.
13    (d) The Department of Agriculture may select a random
14sample that shall, for the purposes of conducting an active
15ingredient analysis, be tested by the Department of Agriculture
16for verification of label information.
17    (e) A laboratory shall immediately return or dispose of any
18cannabis upon the completion of any testing, use, or research.
19If cannabis is disposed of, it shall be done in compliance with
20Department of Agriculture rule.
21    (f) If a sample of cannabis does not pass the
22microbiological, mycotoxin, pesticide chemical residue, or
23solvent residue test, based on the standards established by the
24Department of Agriculture, the following shall apply:
25        (1) If the sample failed the pesticide chemical residue
26    test, the entire batch from which the sample was taken

 

 

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1    shall, if applicable, be recalled as provided by rule.
2        (2) If the sample failed any other test, the batch may
3    be used to make a CO2-based or solvent based extract. After
4    processing, the CO2-based or solvent based extract must
5    still pass all required tests.
6    (g) The Department of Agriculture shall establish
7standards for microbial, mycotoxin, pesticide residue, solvent
8residue, or other standards for the presence of possible
9contaminants, in addition to labeling requirements for
10contents and potency.
11    (h) The laboratory shall file with the Department of
12Agriculture an electronic copy of each laboratory test result
13for any batch that does not pass the microbiological,
14mycotoxin, or pesticide chemical residue test, at the same time
15that it transmits those results to the cultivation center. In
16addition, the laboratory shall maintain the laboratory test
17results for at least 5 years and make them available at the
18Department of Agriculture's request.
19    (i) A cultivation center, craft grower, and infuser shall
20provide to a dispensing organization the laboratory test
21results for each batch of cannabis product purchased by the
22dispensing organization, if sampled. Each dispensary
23organization must have those laboratory results available upon
24request to purchasers.
25    (j) The Department of Agriculture may adopt rules related
26to testing in furtherance of this Act.
 

 

 

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1
ARTICLE 55.
2
GENERAL PROVISIONS

 
3    Section 55-5. Preparation of cannabis-infused products.
4    (a) The Department of Agriculture may regulate the
5production of cannabis-infused products by a cultivation
6center, a craft grower, an infuser organization, or a
7dispensing organization and establish rules related to
8refrigeration, hot-holding, and handling of cannabis-infused
9products. All cannabis-infused products shall meet the
10packaging and labeling requirements contained in Section
1155-21.
12    (b) Cannabis-infused products for sale or distribution at a
13dispensing organization must be prepared by an approved agent
14of a cultivation center or infuser organization.
15    (c) A cultivation center or infuser organization that
16prepares cannabis-infused products for sale or distribution by
17a dispensing organization shall be under the operational
18supervision of a Department of Public Health certified food
19service sanitation manager.
20    (d) Dispensing organizations may not manufacture, process,
21or produce cannabis-infused products.
22    (e) The Department of Public Health shall adopt and enforce
23rules for the manufacture and processing of cannabis-infused
24products, and for that purpose it may at all times enter every

 

 

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1building, room, basement, enclosure, or premises occupied or
2used, or suspected of being occupied or used, for the
3production, preparation, manufacture for sale, storage, sale,
4processing, distribution, or transportation of
5cannabis-infused products, and to inspect the premises
6together with all utensils, fixtures, furniture, and machinery
7used for the preparation of these products.
8    (f) The Department of Agriculture shall by rule establish a
9maximum level of THC that may be contained in each serving of
10cannabis-infused product, and within the product package.
11    (g) If a local public health agency has a reasonable belief
12that a cannabis-infused product poses a public health hazard,
13it may refer the cultivation center, craft grower, or infuser
14that manufactured or processed the cannabis-infused product to
15the Department of Public Health. If the Department of Public
16Health finds that a cannabis-infused product poses a health
17hazard, it may bring an action for immediate injunctive relief
18to require that action be taken as the court may deem necessary
19to meet the hazard of the cultivation facility or seek other
20relief as provided by rule.
 
21    Section 55-10. Maintenance of inventory. All dispensing
22organizations authorized to serve both registered qualifying
23patients and caregivers and purchasers are required to report
24which cannabis and cannabis-infused products are purchased for
25sale under the Compassionate Use of Medical Cannabis Pilot

 

 

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1Program Act, and which cannabis and cannabis-infused products
2are purchased under this Act. Nothing in this Section prohibits
3a registered qualifying patient under the Compassionate Use of
4Medical Cannabis Pilot Program Act from purchasing cannabis as
5a purchaser under this Act.
 
6    Section 55-15. Destruction of cannabis.
7    (a) All cannabis byproduct, scrap, and harvested cannabis
8not intended for distribution to a dispensing organization must
9be destroyed and disposed of under rules adopted by the
10Department of Agriculture under this Act. Documentation of
11destruction and disposal shall be retained at the cultivation
12center, craft grower, infuser organization, transporter, or
13testing facility as applicable for a period of not less than 5
14years.
15    (b) A cultivation center, craft grower, or infuser
16organization shall, before destruction, notify the Department
17of Agriculture and the Department of State Police. A dispensing
18organization shall, before destruction, notify the Department
19of Financial and Professional Regulation and the Department of
20State Police. The Department of Agriculture may by rule require
21that an employee of the Department of Agriculture or the
22Department of Financial and Professional Regulation be present
23during the destruction of any cannabis byproduct, scrap, and
24harvested cannabis, as applicable.
25    (c) The cultivation center, craft grower, infuser

 

 

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1organization, or dispensing organization shall keep a record of
2the date of destruction and how much was destroyed.
3    (d) A dispensing organization shall destroy all cannabis,
4including cannabis-infused products, not sold to purchasers.
5Documentation of destruction and disposal shall be retained at
6the dispensing organization for a period of not less than 5
7years.
 
8    Section 55-20. Advertising and promotions.
9    (a) No cannabis business establishment nor any other person
10or entity shall engage in advertising that contains any
11statement or illustration that:
12        (1) is false or misleading;
13        (2) promotes overconsumption of cannabis or cannabis
14    products;
15        (3) depicts the actual consumption of cannabis or
16    cannabis products;
17        (4) depicts a person under 21 years of age consuming
18    cannabis;
19        (5) makes any health, medicinal, or therapeutic claims
20    about cannabis or cannabis-infused products;
21        (6) includes the image of a cannabis leaf or bud; or
22        (7) includes any image designed or likely to appeal to
23    minors, including cartoons, toys, animals, or children, or
24    any other likeness to images, characters, or phrases that
25    is designed in any manner to be appealing to or encourage

 

 

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1    consumption of persons under 21 years of age.
2    (b) No cannabis business establishment nor any other person
3or entity shall place or maintain, or cause to be placed or
4maintained, an advertisement of cannabis or a cannabis-infused
5product in any form or through any medium:
6        (1) within 1,000 feet of the perimeter of school
7    grounds, a playground, a recreation center or facility, a
8    child care center, a public park or public library, or a
9    game arcade to which admission is not restricted to persons
10    21 years of age or older;
11        (2) on or in a public transit vehicle or public transit
12    shelter;
13        (3) on or in publicly owned or publicly operated
14    property; or
15        (4) that contains information that:
16            (A) is false or misleading;
17            (B) promotes excessive consumption;
18            (C) depicts a person under 21 years of age
19        consuming cannabis;
20            (D) includes the image of a cannabis leaf; or
21            (E) includes any image designed or likely to appeal
22        to minors, including cartoons, toys, animals, or
23        children, or any other likeness to images, characters,
24        or phrases that are popularly used to advertise to
25        children, or any imitation of candy packaging or
26        labeling, or that promotes consumption of cannabis.

 

 

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1    (c) Subsections (a) and (b) do not apply to an educational
2message.
3    (d) Sales promotions. No cannabis business establishment
4nor any other person or entity may encourage the sale of
5cannabis or cannabis products by giving away cannabis or
6cannabis products, by conducting games or competitions related
7to the consumption of cannabis or cannabis products, or by
8providing promotional materials or activities of a manner or
9type that would be appealing to children.
 
10    Section 55-21. Cannabis product packaging and labeling.
11    (a) Each cannabis product produced for sale shall be
12registered with the Department of Agriculture on forms provided
13by the Department of Agriculture. Each product registration
14shall include a label and the required registration fee at the
15rate established by the Department of Agriculture for a
16comparable medical cannabis product, or as established by rule.
17The registration fee is for the name of the product offered for
18sale and one fee shall be sufficient for all package sizes.
19    (b) All harvested cannabis intended for distribution to a
20cannabis enterprise must be packaged in a sealed, labeled
21container.
22    (c) Any product containing cannabis shall be packaged in a
23sealed, odor-proof, and child-resistant cannabis container
24consistent with current standards, including the Consumer
25Product Safety Commission standards referenced by the Poison

 

 

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1Prevention Act.
2    (d) All cannabis-infused products shall be individually
3wrapped or packaged at the original point of preparation. The
4packaging of the cannabis-infused product shall conform to the
5labeling requirements of the Illinois Food, Drug and Cosmetic
6Act, in addition to the other requirements set forth in this
7Section.
8    (e) Each cannabis product shall be labeled before sale and
9each label shall be securely affixed to the package and shall
10state in legible English and any languages required by the
11Department of Agriculture:
12        (1) The name and post office box of the registered
13    cultivation center or craft grower where the item was
14    manufactured;
15        (2) The common or usual name of the item and the
16    registered name of the cannabis product that was registered
17    with the Department of Agriculture under subsection (a);
18        (3) A unique serial number that will match the product
19    with a cultivation center or craft grower batch and lot
20    number to facilitate any warnings or recalls the Department
21    of Agriculture, cultivation center, or craft grower deems
22    appropriate;
23        (4) The date of final testing and packaging, if
24    sampled, and the identification of the independent testing
25    laboratory;
26        (5) The date of harvest and "use by" date;

 

 

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1        (6) The quantity (in ounces or grams) of cannabis
2    contained in the product;
3        (7) A pass/fail rating based on the laboratory's
4    microbiological, mycotoxins, and pesticide and solvent
5    residue analyses, if sampled.
6        (8) Content list.
7            (A) A list of the following, including the minimum
8        and maximum percentage content by weight for
9        subdivisions (d)(8)(A)(i) through (iv):
10                (i) delta-9-tetrahydrocannabinol (THC);
11                (ii) tetrahydrocannabinolic acid (THCA);
12                (iii) cannabidiol (CBD);
13                (iv) cannabidiolic acid (CBDA); and
14                (v) all other ingredients of the item,
15            including any colors, artificial flavors, and
16            preservatives, listed in descending order by
17            predominance of weight shown with common or usual
18            names.
19            (B) The acceptable tolerances for the minimum
20        percentage printed on the label for any of subdivisions
21        (d)(8)(A)(i) through (iv) shall not be below 85% or
22        above 115% of the labeled amount;
23    (f) Packaging must not contain information that:
24        (1) is false or misleading;
25        (2) promotes excessive consumption;
26        (3) depicts a person under 21 years of age consuming

 

 

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1    cannabis;
2        (4) includes the image of a cannabis leaf;
3        (5) includes any image designed or likely to appeal to
4    minors, including cartoons, toys, animals, or children, or
5    any other likeness to images, characters, or phrases that
6    are popularly used to advertise to children, or any
7    packaging or labeling that bears reasonable resemblance to
8    any product available for consumption as a commercially
9    available candy, or that promotes consumption of cannabis;
10        (6) contains any seal, flag, crest, coat of arms, or
11    other insignia likely to mislead the purchaser to believe
12    that the product has been endorsed, made, or used by the
13    State of Illinois or any of its representatives except
14    where authorized by this Act.
15    (g) Cannabis products produced by concentrating or
16extracting ingredients from the cannabis plant shall contain
17the following information, where applicable:
18        (1) If solvents were used to create the concentrate or
19    extract, a statement that discloses the type of extraction
20    method, including any solvents or gases used to create the
21    concentrate or extract; and
22        (2) Any other chemicals or compounds used to produce or
23    were added to the concentrate or extract.
24    (h) All cannabis products must contain warning statements
25established for purchasers, of a size that is legible and
26readily visible to a consumer inspecting a package, which may

 

 

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

 

 

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

 

 

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1that packaging and labeling requirements, including product
2warnings, are enforced at all times for products provided to
3purchasers. Product registration requirements and container
4requirements may be modified by rule by the Department of
5Agriculture.
6    (o) Labeling, including warning labels, may be modified by
7rule by the Department of Agriculture.
 
8    Section 55-25. Local ordinances. Unless otherwise provided
9under this Act or otherwise in accordance with State law:
10        (1) A unit of local government, including a home rule
11    unit or any non-home rule county within the unincorporated
12    territory of the county, may enact reasonable zoning
13    ordinances or resolutions, not in conflict with this Act or
14    rules adopted pursuant to this Act, regulating cannabis
15    business establishments. No unit of local government,
16    including a home rule unit or any non-home rule county
17    within the unincorporated territory of the county, may
18    prohibit home cultivation or unreasonably prohibit use of
19    cannabis authorized by this Act.
20        (2) A unit of local government, including a home rule
21    unit or any non-home rule county within the unincorporated
22    territory of the county, may enact ordinances or rules not
23    in conflict with this Act or with rules adopted pursuant to
24    this Act governing the time, place, manner, and number of
25    cannabis business establishment operations, including

 

 

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1    minimum distance limitations between cannabis business
2    establishments and locations it deems sensitive, including
3    colleges and universities, through the use of conditional
4    use permits. A unit of local government, including a home
5    rule unit, may establish civil penalties for violation of
6    an ordinance or rules governing the time, place, and manner
7    of operation of a cannabis business establishment or a
8    conditional use permit in the jurisdiction of the unit of
9    local government. No unit of local government, including a
10    home rule unit or non-home rule county within an
11    unincorporated territory of the county, may unreasonably
12    restrict the time, place, manner, and number of cannabis
13    business establishment operations authorized by this Act.
14        (3) A unit of local government, including a home rule
15    unit, or any non-home rule county within the unincorporated
16    territory of the county may regulate the on-premises
17    consumption of cannabis at or in a cannabis business
18    establishment within its jurisdiction in a manner
19    consistent with this Act. A cannabis business
20    establishment or other entity authorized or permitted by a
21    unit of local government to allow on-site consumption shall
22    not be deemed a public place within the meaning of the
23    Smoke Free Illinois Act.
24        (4) A unit of local government, including a home rule
25    unit or any non-home rule county within the unincorporated
26    territory of the county, may not regulate the activities

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Section 55-30. Confidentiality.
2    (a) Information provided by the cannabis business
3establishment licensees or applicants to the Department of
4Agriculture, the Department of Public Health, the Department of
5Financial and Professional Regulation, the Department of
6Commerce and Economic Opportunity, or other agency shall be
7limited to information necessary for the purposes of
8administering this Act. The information is subject to the
9provisions and limitations contained in the Freedom of
10Information Act and may be disclosed in accordance with Section
1155-65.
12    (b) The following information received and records kept by
13the Department of Agriculture, the Department of Public Health,
14the Department of State Police, and the Department of Financial
15and Professional Regulation for purposes of administering this
16Article are subject to all applicable federal privacy laws, are
17confidential and exempt from disclosure under the Freedom of
18Information Act, except as provided in this Act, and not
19subject to disclosure to any individual or public or private
20entity, except to the Department of Financial and Professional
21Regulation, the Department of Agriculture, the Department of
22Public Health, and the Department of State Police as necessary
23to perform official duties under this Article. The following
24information received and kept by the Department of Financial
25and Professional Regulation or the Department of Agriculture,

 

 

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

 

 

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1shall not be disclosed, except as otherwise provided in the
2Act. A formal complaint against a licensee by the Department or
3any disciplinary order issued by the Department against a
4licensee or applicant shall be a public record, except as
5otherwise prohibited by law, as required by law, or as
6necessary to enforce the provisions of this Act. Complaints
7from consumers or members of the general public received
8regarding a specific, named licensee or complaints regarding
9conduct by unlicensed entities shall be subject to disclosure
10under the Freedom of Information Act
11    (e) The Department of Agriculture, the Department of State
12Police, and the Department of Financial and Professional
13Regulation shall not share or disclose any existing or
14non-existing Illinois or national criminal history record
15information to any person or entity not expressly authorized by
16this Act. As used in this Section, "any existing or
17non-existing Illinois or national criminal history record
18information" means any Illinois or national criminal history
19record information, including but not limited to the lack of or
20non-existence of these records.
21    (f) Each Department responsible for licensure under this
22Act shall publish on the Department's website a list of the
23ownership information of cannabis business establishment
24licensees under the Department's jurisdiction. The list shall
25include, but is not limited to: the name of the person or
26entity holding each cannabis business establishment license;

 

 

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1and the address at which the entity is operating under this
2Act. This list shall be published and updated monthly.
 
3    Section 55-35. Administrative rulemaking.
4    (a) No later than 180 days after the effective date of this
5Act, the Department of Agriculture, the Department of State
6Police, the Department of Financial and Professional
7Regulation, the Department of Revenue, the Department of
8Commerce and Economic Opportunity, and the Treasurer's Office
9shall adopt permanent rules in accordance with their
10responsibilities under this Act. The Department of
11Agriculture, the Department of State Police, the Department of
12Financial and Professional Regulation, the Department of
13Revenue, and the Department of Commerce and Economic
14Opportunity may adopt rules necessary to regulate personal
15cannabis use through the use of emergency rulemaking in
16accordance with subsection (gg) of Section 5-45 of the Illinois
17Administrative Procedure Act. The General Assembly finds that
18the adoption of rules to regulate cannabis use is deemed an
19emergency and necessary for the public interest, safety, and
20welfare.
21    (b) The Department of Agriculture rules may address, but
22are not limited to, the following matters related to
23cultivation centers, craft growers, infuser organizations, and
24transporting organizations with the goal of protecting against
25diversion and theft, without imposing an undue burden on the

 

 

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

 

 

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

 

 

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

 

 

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1    directed at children, adolescents, parents, and pregnant
2    or breastfeeding women, to inform them of the potential
3    health risks associated with intentional or unintentional
4    cannabis use.
 
5    Section 55-40. Enforcement.
6    (a) If the Department of Agriculture, Department of State
7Police, Department of Financial and Professional Regulation,
8Department of Commerce and Economic Opportunity, or Department
9of Revenue fails to adopt rules to implement this Act within
10the times provided in this Act, any citizen may commence a
11mandamus action in the circuit court to compel the agencies to
12perform the actions mandated under Section 55-35.
13    (b) If the Department of Agriculture or the Department of
14Financial and Professional Regulation fails to issue a valid
15agent identification card in response to a valid initial
16application or renewal application submitted under this Act or
17fails to issue a verbal or written notice of denial of the
18application within 30 days of its submission, the agent
19identification card is deemed granted and a copy of the agent
20identification initial application or renewal application
21shall be deemed a valid agent identification card.
22    (c) Authorized employees of State or local law enforcement
23agencies shall immediately notify the Department of
24Agriculture and the Department of Financial and Professional
25Regulation when any person in possession of an agent

 

 

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1identification card has been convicted of or pled guilty to
2violating this Act.
 
3    Section 55-45. Administrative hearings.
4    (a) Administrative hearings related to the duties and
5responsibilities assigned to the Department of Public Health
6shall be conducted under the Department of Public Health's
7rules governing administrative hearings.
8    (b) Administrative hearings related to the duties and
9responsibilities assigned to the Department of Financial and
10Professional Regulation and dispensing organization agents
11shall be conducted under the Department of Financial and
12Professional Regulation's rules governing administrative
13hearings.
14    (c) Administrative hearings related to the duties and
15responsibilities assigned to the Department of Agriculture,
16cultivation centers, or cultivation center agents shall be
17conducted under the Department of Agriculture's rules
18governing administrative hearings.
 
19    Section 55-50. Petition for rehearing. Within 20 days after
20the service of any order or decision of the Department of
21Public Health, the Department of Agriculture, the Department of
22Financial and Professional Regulation, or the Department of
23State Police upon any party to the proceeding, the party may
24apply for a rehearing in respect to any matters determined by

 

 

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1them under this Act, except for decisions made under the
2Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser
3Excise Tax Law, the County Cannabis Retailers' Occupation Tax
4Law, and the Municipal Cannabis Retailers' Occupation Tax Law,
5which shall be governed by the provisions of those Laws. If a
6rehearing is granted, an agency shall hold the rehearing and
7render a decision within 30 days from the filing of the
8application for rehearing with the agency. The time for holding
9such rehearing and rendering a decision may be extended for a
10period not to exceed 30 days, for good cause shown, and by
11notice in writing to all parties of interest. If an agency
12fails to act on the application for rehearing within 30 days,
13or the date the time for rendering a decision was extended for
14good cause shown, the order or decision of the agency is final.
15No action for the judicial review of any order or decision of
16an agency shall be allowed unless the party commencing such
17action has first filed an application for a rehearing and the
18agency has acted or failed to act upon the application. Only
19one rehearing may be granted by an agency on application of any
20one party.
 
21    Section 55-55. Review of administrative decisions. All
22final administrative decisions of the Department of Public
23Health, the Department of Agriculture, the Department of
24Financial and Professional Regulation, and the Department of
25State Police are subject to judicial review under the

 

 

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1Administrative Review Law and the rules adopted under that Law.
2The term "administrative decision" is defined as in Section
33-101 of the Code of Civil Procedure.
 
4    Section 55-60. Suspension or revocation of a license.
5    (a) The Department of Financial and Professional
6Regulation or the Department of Agriculture may suspend or
7revoke a license for a violation of this Act or a rule adopted
8in accordance with this Act by the Department of Agriculture
9and the Department of Financial and Professional Regulation.
10    (b) The Department of Agriculture and the Department of
11Financial and Professional Regulation may suspend or revoke an
12agent identification card for a violation of this Act or a rule
13adopted in accordance with this Act.
 
14    Section 55-65. Financial institutions.
15    (a) A financial institution that provides financial
16services customarily provided by financial institutions to a
17cannabis business establishment authorized under this Act or
18the Compassionate Use of Medical Cannabis Pilot Program Act, or
19to a person that is affiliated with such cannabis business
20establishment, is exempt from any criminal law of this State as
21it relates to cannabis-related conduct authorized under State
22law.
23    (b) Upon request of a financial institution, a cannabis
24business establishment or proposed cannabis business

 

 

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1establishment may provide to the financial institution the
2following information:
3        (1) Whether a cannabis business establishment with
4    which the financial institution is doing or is considering
5    doing business holds a license under this Act or the
6    Compassionate Use of Medical Cannabis Pilot Program Act;
7        (2) The name of any other business or individual
8    affiliate with the cannabis business establishment;
9        (3) A copy of the application, and any supporting
10    documentation submitted with the application, for a
11    license or a permit submitted on behalf of the proposed
12    cannabis business establishment;
13        (4) If applicable, data relating to sales and the
14    volume of product sold by the cannabis business
15    establishment;
16        (5) Any past or pending violation by the person of this
17    Act, the Compassionate Use of Medical Cannabis Pilot
18    Program Act, or the rules adopted under these Acts where
19    applicable; and
20        (6) Any penalty imposed upon the person for violating
21    this Act, the Compassionate Use of Medical Cannabis Pilot
22    Program Act, or the rules adopted under these Acts.
23    (c) (Blank).
24    (d) (Blank).
25    (e) Information received by a financial institution under
26this Section is confidential. Except as otherwise required or

 

 

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1permitted by this Act, State law or rule, or federal law or
2regulation, a financial institution may not make the
3information available to any person other than:
4        (1) the customer to whom the information applies;
5        (2) a trustee, conservator, guardian, personal
6    representative, or agent of the customer to whom the
7    information applies; a federal or State regulator when
8    requested in connection with an examination of the
9    financial institution or if otherwise necessary for
10    complying with federal or State law;
11        (3) a federal or State regulator when requested in
12    connection with an examination of the financial
13    institution or if otherwise necessary for complying with
14    federal or State law; and
15        (4) a third party performing services for the financial
16    institution, provided the third party is performing such
17    services under a written agreement that expressly or by
18    operation of law prohibits the third party's sharing and
19    use of such confidential information for any purpose other
20    than as provided in its agreement to provide services to
21    the financial institution.
 
22    Section 55-75. Contracts enforceable. It is the public
23policy of this State that contracts related to the operation of
24a lawful cannabis business establishment under this Act are
25enforceable. It is the public policy of this State that no

 

 

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

 

 

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

 

 

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1    are Social Equity Applicants or minority persons, women, or
2    persons with disabilities as those terms are defined in the
3    Business Enterprise for Minorities, Women, and Persons
4    with Disabilities Act;
5        (3) The total amount of revenue received from
6    cultivation centers, craft growers, infusers, and
7    transporters, separated by license types and source of
8    revenue;
9        (4) The total amount of revenue received from craft
10    growers and infusers that share a premises or majority
11    ownership with a dispensing organization;
12        (5) The total amount of revenue received from craft
13    growers that share a premises or majority ownership with an
14    infuser, but do not share a premises or ownership with a
15    dispensary;
16        (6) The total amount of revenue received from infusers
17    that share a premises or majority ownership with a craft
18    grower, but do not share a premises or ownership with a
19    dispensary;
20        (7) The total amount of revenue received from craft
21    growers that share a premises or majority ownership with a
22    dispensing organization, but do not share a premises or
23    ownership with an infuser;
24        (8) The total amount of revenue received from infusers
25    that share a premises or majority ownership with a
26    dispensing organization, but do not share a premises or

 

 

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

 

 

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1contain, at a minimum:
2        (1) Self-reported youth cannabis use, as published in
3    the most recent Illinois Youth Survey available;
4        (2) Self-reported adult cannabis use, as published in
5    the most recent Behavioral Risk Factor Surveillance Survey
6    available;
7        (3) Hospital room admissions and hospital utilization
8    rates caused by cannabis consumption, including the
9    presence or detection of other drugs;
10        (4) Overdoses of cannabis and poison control data,
11    including the presence of other drugs that may have
12    contributed;
13        (5) Incidents of impaired driving caused by the
14    consumption of cannabis or cannabis products, including
15    the presence of other drugs or alcohol that may have
16    contributed to the impaired driving;
17        (6) Prevalence of infants born testing positive for
18    cannabis or delta-9-tetrahydrocannabinol, including
19    demographic and racial information on which infants are
20    tested;
21        (7) Public perceptions of use and risk of harm;
22        (8) Revenue collected from cannabis taxation and how
23    that revenue was used;
24        (9) Cannabis retail licenses granted and locations;
25        (10) Cannabis-related arrests; and
26        (11) The number of individuals completing required bud

 

 

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1    tender training.
2    (e) Each agency or committee submitting reports under this
3Section may consult with one another in the preparation of each
4report.
 
5    Section 55-85. Medical cannabis.
6    (a) Nothing in this Act shall be construed to limit any
7privileges or rights of a medical cannabis patient including
8minor patients, primary caregiver, medical cannabis
9cultivation center, or medical cannabis dispensing
10organization under the Compassionate Use of Medical Cannabis
11Pilot Program Act, and where there is conflict between this Act
12and the Compassionate Use of Medical Cannabis Pilot Program Act
13as they relate to medical cannabis patients, the Compassionate
14Use of Medical Cannabis Pilot Program Act shall prevail.
15    (b) Dispensary locations that obtain an Early Approval
16Adult Use Dispensary Organization License or an Adult Use
17Dispensary Organization License in accordance with this Act at
18the same location as a medical cannabis dispensing organization
19registered under the Compassionate Use of Medical Cannabis
20Pilot Program Act shall maintain an inventory of medical
21cannabis and medical cannabis products on a monthly basis that
22is substantially similar in variety and quantity to the
23products offered at the dispensary during the 6-month period
24immediately before the effective date of this Act.
25    (c) Beginning June 30, 2020, the Department of Agriculture

 

 

10100HB1438sam002- 308 -LRB101 04919 RLC 61359 a

1shall make a quarterly determination whether inventory
2requirements established for dispensaries in subsection (b)
3should be adjusted due to changing patient need.
 
4    Section 55-90. Home rule preemption. Except as otherwise
5provided in this Act, the regulation and licensing of the
6activities described in this Act are exclusive powers and
7functions of the State. Except as otherwise provided in this
8Act, a unit of local government, including a home rule unit,
9may not regulate or license the activities described in this
10Act. This Section is a denial and limitation of home rule
11powers and functions under subsection (h) of Section 6 of
12Article VII of the Illinois Constitution.
 
13    Section 55-95. Conflict of interest. A person is ineligible
14to apply for, hold, or own financial or voting interest in any
15cannabis business license under this Act if, within a 2-year
16period from the effective date of this Act, the person or his
17or her spouse or immediately family member was a member of the
18General Assembly or a State employee at an agency that
19regulates cannabis business establishment license holders who
20participated personally and substantially in the award of
21licenses under this Act. A person who violates this Section
22shall be guilty under subsection (b) of Section 50-5 of the
23State Officials and Employees Ethics Act.
 

 

 

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1
ARTICLE 60.
2
CANNABIS CULTIVATION PRIVILEGE TAX

 
3    Section 60-1. Short title. This Article may be referred to
4as the Cannabis Cultivation Privilege Tax Law.
 
5    Section 60-5. Definitions. In this Article:
6    "Cannabis" has the meaning given to that term in Article 1
7of this Act, except that it does not include cannabis that is
8subject to tax under the Compassionate Use of Medical Cannabis
9Pilot Program Act.
10    "Craft grower" has the meaning given to that term in
11Article 1 of this Act.
12    "Cultivation center" has the meaning given to that term in
13Article 1 of this Act.
14    "Cultivator" or "taxpayer" means a cultivation center or
15craft grower who is subject to tax under this Article.
16    "Department" means the Department of Revenue.
17    "Director" means the Director of Revenue.
18    "Dispensing organization" or "dispensary" has the meaning
19given to that term in Article 1 of this Act.
20    "Gross receipts" from the sales of cannabis by a cultivator
21means the total selling price or the amount of such sales, as
22defined in this Article. In the case of charges and time sales,
23the amount thereof shall be included only when payments are
24received by the cultivator.

 

 

10100HB1438sam002- 310 -LRB101 04919 RLC 61359 a

1    "Person" means a natural individual, firm, partnership,
2association, joint stock company, joint adventure, public or
3private corporation, limited liability company, or a receiver,
4executor, trustee, guardian, or other representative appointed
5by order of any court.
6    "Infuser" means "infuser organization" or "infuser" as
7defined in Article 1 of this Act.
8    "Selling price" or "amount of sale" means the consideration
9for a sale valued in money whether received in money or
10otherwise, including cash, credits, property, and services,
11and shall be determined without any deduction on account of the
12cost of the property sold, the cost of materials used, labor or
13service cost, or any other expense whatsoever, but does not
14include separately stated charges identified on the invoice by
15cultivators to reimburse themselves for their tax liability
16under this Article.
 
17    Section 60-10. Tax imposed.
18    (a) Beginning September 1, 2019, a tax is imposed upon the
19privilege of cultivating cannabis at the rate of 7% of the
20gross receipts from the first sale of cannabis by a cultivator.
21The sale of any product that contains any amount of cannabis or
22any derivative thereof is subject to the tax under this Section
23on the full selling price of the product. The Department may
24determine the selling price of the cannabis when the seller and
25purchaser are affiliated persons, when the sale and purchase of

 

 

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

 

 

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

 

 

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1    the preceding calendar month on charge and time sales of
2    cannabis subject to tax imposed under this Article by the
3    taxpayer before the month for which the return is filed;
4        (5) deductions allowed by law;
5        (6) gross receipts that were received by the taxpayer
6    during the preceding calendar month and upon the basis of
7    which the tax is imposed;
8        (7) the amount of tax due;
9        (8) the signature of the taxpayer; and
10        (9) any other information as the Department may
11    reasonably require.
12    All returns required to be filed and payments required to
13be made under this Article shall be by electronic means.
14Taxpayers who demonstrate hardship in paying electronically
15may petition the Department to waive the electronic payment
16requirement. The Department may require a separate return for
17the tax under this Article or combine the return for the tax
18under this Article with the return for the tax under the
19Compassionate Use of Medical Cannabis Pilot Program Act. If the
20return for the tax under this Article is combined with the
21return for tax under the Compassionate Use of Medical Cannabis
22Pilot Program Act, then the vendor's discount allowed under
23this Section and any cap on that discount shall apply to the
24combined return. The taxpayer making the return provided for in
25this Section shall also pay to the Department, in accordance
26with this Section, the amount of tax imposed by this Article,

 

 

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1less a discount of 1.75%, but not to exceed $1,000 per return
2period, which is allowed to reimburse the taxpayer for the
3expenses incurred in keeping records, collecting tax,
4preparing and filing returns, remitting the tax, and supplying
5data to the Department upon request. No discount may be claimed
6by a taxpayer on returns not timely filed and for taxes not
7timely remitted. No discount may be claimed by a taxpayer for
8any return that is not filed electronically. No discount may be
9claimed by a taxpayer for any payment that is not made
10electronically, unless a waiver has been granted under this
11Section. Any amount that is required to be shown or reported on
12any return or other document under this Article shall, if the
13amount is not a whole-dollar amount, be increased to the
14nearest whole-dollar amount if the fractional part of a dollar
15is $0.50 or more and decreased to the nearest whole-dollar
16amount if the fractional part of a dollar is less than $0.50.
17If a total amount of less than $1 is payable, refundable, or
18creditable, the amount shall be disregarded if it is less than
19$0.50 and shall be increased to $1 if it is $0.50 or more.
20Notwithstanding any other provision of this Article concerning
21the time within which a taxpayer may file a return, any such
22taxpayer who ceases to engage in the kind of business that
23makes the person responsible for filing returns under this
24Article shall file a final return under this Article with the
25Department within one month after discontinuing such business.
26    Each taxpayer under this Article shall make estimated

 

 

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1payments to the Department on or before the 7th, 15th, 22nd,
2and last day of the month during which tax liability to the
3Department is incurred. The payments shall be in an amount not
4less than the lower of either 22.5% of the taxpayer's actual
5tax liability for the month or 25% of the taxpayer's actual tax
6liability for the same calendar month of the preceding year.
7The amount of the quarter-monthly payments shall be credited
8against the final tax liability of the taxpayer's return for
9that month. If any quarter-monthly payment is not paid at the
10time or in the amount required by this Section, then the
11taxpayer shall be liable for penalties and interest on the
12difference between the minimum amount due as a payment and the
13amount of the quarter-monthly payment actually and timely paid,
14except insofar as the taxpayer has previously made payments for
15that month to the Department in excess of the minimum payments
16previously due as provided in this Section.
17    If any payment provided for in this Section exceeds the
18taxpayer's liabilities under this Article, as shown on an
19original monthly return, the Department shall, if requested by
20the taxpayer, issue to the taxpayer a credit memorandum no
21later than 30 days after the date of payment. The credit
22evidenced by the credit memorandum may be assigned by the
23taxpayer to a similar taxpayer under this Act, in accordance
24with reasonable rules to be prescribed by the Department. If no
25such request is made, the taxpayer may credit the excess
26payment against tax liability subsequently to be remitted to

 

 

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1the Department under this Act, in accordance with reasonable
2rules prescribed by the Department. If the Department
3subsequently determines that all or any part of the credit
4taken was not actually due to the taxpayer, the taxpayer's
5discount shall be reduced, if necessary, to reflect the
6difference between the credit taken and that actually due, and
7that taxpayer shall be liable for penalties and interest on the
8difference.
9    If a taxpayer fails to sign a return within 30 days after
10the proper notice and demand for signature by the Department is
11received by the taxpayer, the return shall be considered valid
12and any amount shown to be due on the return shall be deemed
13assessed.
 
14    Section 60-25. Infuser information returns. If it is deemed
15necessary for the administration of this Article, the
16Department may adopt rules that require infusers to file
17information returns regarding the sale of cannabis by infusers
18to dispensaries. The Department may require infusers to file
19all information returns by electronic means.
 
20    Section 60-30. Deposit of proceeds. All moneys received by
21the Department under this Article shall be deposited into the
22Cannabis Regulation Fund.
 
23    Section 60-35. Department administration and enforcement.

 

 

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1The Department shall have full power to administer and enforce
2this Article, to collect all taxes, penalties, and interest due
3hereunder, to dispose of taxes, penalties and interest so
4collected in the manner hereinafter provided, and to determine
5all rights to credit memoranda, arising on account of the
6erroneous payment of tax, penalty, or interest hereunder. In
7the administration of, and compliance with, this Article, the
8Department and persons who are subject to this Article shall
9have the same rights, remedies, privileges, immunities,
10powers, and duties, and be subject to the same conditions,
11restrictions, limitations, penalties, and definitions of
12terms, and employ the same modes of procedure, as are
13prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,
145d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,
1512, and 13 of the Retailers' Occupation Tax Act and all of the
16provisions of the Uniform Penalty and Interest Act, which are
17not inconsistent with this Article, as fully as if those
18provisions were set forth herein. For purposes of this Section,
19references in the Retailers' Occupation Tax Act to a "sale of
20tangible personal property at retail" mean the "sale of
21cannabis by a cultivator".
 
22    Section 60-40. Invoices. Every sales invoice for cannabis
23issued by a cultivator to a cannabis business establishment
24shall contain the cultivator's certificate of registration
25number assigned under this Article, date, invoice number,

 

 

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1purchaser's name and address, selling price, amount of
2cannabis, concentrate, or cannabis-infused product, and any
3other reasonable information as the Department may provide by
4rule is necessary for the administration of this Article.
5Cultivators shall retain the invoices for inspection by the
6Department.
 
7    Section 60-45. Rules. The Department may adopt rules
8related to the enforcement of this Article.
 
9
ARTICLE 65.
10
CANNABIS PURCHASER EXCISE TAX

 
11    Section 65-1. Short title. This Article may be referred to
12as the Cannabis Purchaser Excise Tax Law.
 
13    Section 65-5. Definitions. In this Article:
14    "Adjusted delta-9-tetrahydrocannabinol level" means, for a
15delta-9-tetrahydrocannabinol dominant product, the sum of the
16percentage of delta-9-tetrahydrocannabinol plus .877
17multiplied by the percentage of tetrahydrocannabinolic acid.
18    "Cannabis" has the meaning given to that term in Article 1
19of this Act, except that it does not include cannabis that is
20subject to tax under the Compassionate Use of Medical Cannabis
21Pilot Program Act.
22    "Cannabis-infused product" means beverage food, oils,

 

 

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

 

 

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1not include consideration paid for:
2        (1) any charge for a payment that is not honored by a
3    financial institution;
4        (2) any finance or credit charge, penalty or charge for
5    delayed payment, or discount for prompt payment; and
6        (3) any amounts added to a purchaser's bill because of
7    charges made under the tax imposed by this Article, the
8    Municipal Cannabis Retailers' Occupation Tax Law, the
9    County Cannabis Retailers' Occupation Tax Law, the
10    Retailers' Occupation Tax Act, the Use Tax Act, the Service
11    Occupation Tax Act, the Service Use Tax Act, or any locally
12    imposed occupation or use tax.
13    "Purchaser" means a person who acquires cannabis for a
14valuable consideration.
15    "Taxpayer" means a cannabis retailer who is required to
16collect the tax imposed under this Article.
 
17    Section 65-10. Tax imposed.
18    (a) Beginning January 1, 2020, a tax is imposed upon
19purchasers for the privilege of using cannabis at the following
20rates:
21        (1) Any cannabis, other than a cannabis-infused
22    product, with an adjusted delta-9-tetrahydrocannabinol
23    level at or below 35% shall be taxed at a rate of 10% of the
24    purchase price;
25        (2) Any cannabis, other than a cannabis-infused

 

 

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1    product, with an adjusted delta-9-tetrahydrocannabinol
2    level above 35% shall be taxed at a rate of 25% of the
3    purchase price; and
4        (3) A cannabis-infused product shall be taxed at a rate
5    of 20% of the purchase price.
6    (b) The purchase of any product that contains any amount of
7cannabis or any derivative thereof is subject to the tax under
8subsection (a) of this Section on the full purchase price of
9the product.
10    (c) The tax imposed under this Section is not imposed on
11cannabis that is subject to tax under the Compassionate Use of
12Medical Cannabis Pilot Program Act. The tax imposed by this
13Section is not imposed with respect to any transaction in
14interstate commerce, to the extent the transaction may not,
15under the Constitution and statutes of the United States, be
16made the subject of taxation by this State.
17    (d) The tax imposed under this Article shall be in addition
18to all other occupation, privilege, or excise taxes imposed by
19the State of Illinois or by any municipal corporation or
20political subdivision thereof.
21    (e) The tax imposed under this Article shall not be imposed
22on any purchase by a purchaser if the cannabis retailer is
23prohibited by federal or State Constitution, treaty,
24convention, statute, or court decision from collecting the tax
25from the purchaser.
 

 

 

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

 

 

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

 

 

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1    Section 65-25. Tax collected as debt owed to State. Any
2cannabis retailer required to collect the tax imposed by this
3Article shall be liable to the Department for the tax, whether
4or not the tax has been collected by the cannabis retailer, and
5any such tax shall constitute a debt owed by the cannabis
6retailer to this State. To the extent that a cannabis retailer
7required to collect the tax imposed by this Act has actually
8collected that tax, the tax is held in trust for the benefit of
9the Department.
 
10    Section 65-30. Return and payment of tax by cannabis
11retailer. Each cannabis retailer that is required or authorized
12to collect the tax imposed by this Article shall make a return
13to the Department, by electronic means, on or before the 20th
14day of each month for the preceding calendar month stating the
15following:
16        (1) the cannabis retailer's name;
17        (2) the address of the cannabis retailer's principal
18    place of business and the address of the principal place of
19    business (if that is a different address) from which the
20    cannabis retailer engaged in the business of selling
21    cannabis subject to tax under this Article;
22        (3) the total purchase price received by the cannabis
23    retailer for cannabis subject to tax under this Article;
24        (4) the amount of tax due at each rate;
25        (5) the signature of the cannabis retailer; and

 

 

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

 

 

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1taxpayer for any return that is not filed electronically. No
2discount may be claimed by a taxpayer for any payment that is
3not made electronically, unless a waiver has been granted under
4this Section.
5    Notwithstanding any other provision of this Article
6concerning the time within which a cannabis retailer may file a
7return, any such cannabis retailer who ceases to engage in the
8kind of business that makes the person responsible for filing
9returns under this Article shall file a final return under this
10Article with the Department within one month after
11discontinuing the business.
12    Each cannabis retailer shall make estimated payments to the
13Department on or before the 7th, 15th, 22nd, and last day of
14the month during which tax liability to the Department is
15incurred. The payments shall be in an amount not less than the
16lower of either 22.5% of the cannabis retailer's actual tax
17liability for the month or 25% of the cannabis retailer's
18actual tax liability for the same calendar month of the
19preceding year. The amount of the quarter-monthly payments
20shall be credited against the final tax liability of the
21cannabis retailer's return for that month. If any such
22quarter-monthly payment is not paid at the time or in the
23amount required by this Section, then the cannabis retailer
24shall be liable for penalties and interest on the difference
25between the minimum amount due as a payment and the amount of
26the quarter-monthly payment actually and timely paid, except

 

 

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1insofar as the cannabis retailer has previously made payments
2for that month to the Department in excess of the minimum
3payments previously due as provided in this Section.
4    If any payment provided for in this Section exceeds the
5taxpayer's liabilities under this Article, as shown on an
6original monthly return, the Department shall, if requested by
7the taxpayer, issue to the taxpayer a credit memorandum no
8later than 30 days after the date of payment. The credit
9evidenced by the credit memorandum may be assigned by the
10taxpayer to a similar taxpayer under this Article, in
11accordance with reasonable rules to be prescribed by the
12Department. If no such request is made, the taxpayer may credit
13the excess payment against tax liability subsequently to be
14remitted to the Department under this Article, in accordance
15with reasonable rules prescribed by the Department. If the
16Department subsequently determines that all or any part of the
17credit taken was not actually due to the taxpayer, the
18taxpayer's discount shall be reduced, if necessary, to reflect
19the difference between the credit taken and that actually due,
20and that taxpayer shall be liable for penalties and interest on
21the difference. If a cannabis retailer fails to sign a return
22within 30 days after the proper notice and demand for signature
23by the Department is received by the cannabis retailer, the
24return shall be considered valid and any amount shown to be due
25on the return shall be deemed assessed.
 

 

 

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1    Section 65-35. Deposit of proceeds. All moneys received by
2the Department under this Article shall be paid into the
3Cannabis Regulation Fund.
 
4    Section 65-36. Recordkeeping; books and records.
5    (a) Every retailer of cannabis, whether or not the retailer
6has obtained a certificate of registration under Section 65-20,
7shall keep complete and accurate records of cannabis held,
8purchased, sold, or otherwise disposed of, and shall preserve
9and keep all invoices, bills of lading, sales records, and
10copies of bills of sale, returns, and other pertinent papers
11and documents relating to the purchase, sale, or disposition of
12cannabis. Such records need not be maintained on the licensed
13premises but must be maintained in the State of Illinois.
14However, all original invoices or copies thereof covering
15purchases of cannabis must be retained on the licensed premises
16for a period of 90 days after such purchase, unless the
17Department has granted a waiver in response to a written
18request in cases where records are kept at a central business
19location within the State of Illinois. The Department shall
20adopt rules regarding the eligibility for a waiver, revocation
21of a waiver, and requirements and standards for maintenance and
22accessibility of records located at a central location under a
23waiver provided under this Section.
24    (b) Books, records, papers, and documents that are required
25by this Article to be kept shall, at all times during the usual

 

 

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1business hours of the day, be subject to inspection by the
2Department or its duly authorized agents and employees. The
3books, records, papers, and documents for any period with
4respect to which the Department is authorized to issue a notice
5of tax liability shall be preserved until the expiration of
6that period.
 
7    Section 65-38. Violations and penalties.
8    (a) When the amount due is under $300, any retailer of
9cannabis who fails to file a return, willfully fails or refuses
10to make any payment to the Department of the tax imposed by
11this Article, or files a fraudulent return, or any officer or
12agent of a corporation engaged in the business of selling
13cannabis to purchasers located in this State who signs a
14fraudulent return filed on behalf of the corporation, or any
15accountant or other agent who knowingly enters false
16information on the return of any taxpayer under this Article is
17guilty of a Class 4 felony.
18    (b) When the amount due is $300 or more, any retailer of
19cannabis who files, or causes to be filed, a fraudulent return,
20or any officer or agent of a corporation engaged in the
21business of selling cannabis to purchasers located in this
22State who files or causes to be filed or signs or causes to be
23signed a fraudulent return filed on behalf of the corporation,
24or any accountant or other agent who knowingly enters false
25information on the return of any taxpayer under this Article is

 

 

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1guilty of a Class 3 felony.
2    (c) Any person who violates any provision of Section 65-20,
3fails to keep books and records as required under this Article,
4or willfully violates a rule of the Department for the
5administration and enforcement of this Article is guilty of a
6Class 4 felony. A person commits a separate offense on each day
7that he or she engages in business in violation of Section
865-20 or a rule of the Department for the administration and
9enforcement of this Article. If a person fails to produce the
10books and records for inspection by the Department upon
11request, a prima facie presumption shall arise that the person
12has failed to keep books and records as required under this
13Article. A person who is unable to rebut this presumption is in
14violation of this Article and is subject to the penalties
15provided in this Section.
16    (d) Any person who violates any provision of Sections
1765-20, fails to keep books and records as required under this
18Article, or willfully violates a rule of the Department for the
19administration and enforcement of this Article, is guilty of a
20business offense and may be fined up to $5,000. If a person
21fails to produce books and records for inspection by the
22Department upon request, a prima facie presumption shall arise
23that the person has failed to keep books and records as
24required under this Article. A person who is unable to rebut
25this presumption is in violation of this Article and is subject
26to the penalties provided in this Section. A person commits a

 

 

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1separate offense on each day that he or she engages in business
2in violation of Section 65-20.
3    (e) Any taxpayer or agent of a taxpayer who with the intent
4to defraud purports to make a payment due to the Department by
5issuing or delivering a check or other order upon a real or
6fictitious depository for the payment of money, knowing that it
7will not be paid by the depository, is guilty of a deceptive
8practice in violation of Section 17-1 of the Criminal Code of
92012.
10    (f) Any person who fails to keep books and records or fails
11to produce books and records for inspection, as required by
12Section 65-36, is liable to pay to the Department, for deposit
13in the Tax Compliance and Administration Fund, a penalty of
14$1,000 for the first failure to keep books and records or
15failure to produce books and records for inspection, as
16required by Section 65-36, and $3,000 for each subsequent
17failure to keep books and records or failure to produce books
18and records for inspection, as required by Section 65-36.
19    (g) Any person who knowingly acts as a retailer of cannabis
20in this State without first having obtained a certificate of
21registration to do so in compliance with Section 65-20 of this
22Article shall be guilty of a Class 4 felony.
23    (h) A person commits the offense of tax evasion under this
24Article when he or she knowingly attempts in any manner to
25evade or defeat the tax imposed on him or her or on any other
26person, or the payment thereof, and he or she commits an

 

 

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1affirmative act in furtherance of the evasion. As used in this
2Section, "affirmative act in furtherance of the evasion" means
3an act designed in whole or in part to (i) conceal,
4misrepresent, falsify, or manipulate any material fact or (ii)
5tamper with or destroy documents or materials related to a
6person's tax liability under this Article. Two or more acts of
7sales tax evasion may be charged as a single count in any
8indictment, information, or complaint and the amount of tax
9deficiency may be aggregated for purposes of determining the
10amount of tax that is attempted to be or is evaded and the
11period between the first and last acts may be alleged as the
12date of the offense.
13        (1) When the amount of tax, the assessment or payment
14    of which is attempted to be or is evaded is less than $500,
15    a person is guilty of a Class 4 felony.
16        (2) When the amount of tax, the assessment or payment
17    of which is attempted to be or is evaded is $500 or more
18    but less than $10,000, a person is guilty of a Class 3
19    felony.
20        (3) When the amount of tax, the assessment or payment
21    of which is attempted to be or is evaded is $10,000 or more
22    but less than $100,000, a person is guilty of a Class 2
23    felony.
24        (4) When the amount of tax, the assessment or payment
25    of which is attempted to be or is evaded is $100,000 or
26    more, a person is guilty of a Class 1 felony.

 

 

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1    Any person who knowingly sells, purchases, installs,
2transfers, possesses, uses, or accesses any automated sales
3suppression device, zapper, or phantom-ware in this State is
4guilty of a Class 3 felony.
5    As used in this Section:
6    "Automated sales suppression device" or "zapper" means a
7software program that falsifies the electronic records of an
8electronic cash register or other point-of-sale system,
9including, but not limited to, transaction data and transaction
10reports. The term includes the software program, any device
11that carries the software program, or an Internet link to the
12software program.
13    "Phantom-ware" means a hidden programming option embedded
14in the operating system of an electronic cash register or
15hardwired into an electronic cash register that can be used to
16create a second set of records or that can eliminate or
17manipulate transaction records in an electronic cash register.
18    "Electronic cash register" means a device that keeps a
19register or supporting documents through the use of an
20electronic device or computer system designed to record
21transaction data for the purpose of computing, compiling, or
22processing retail sales transaction data in any manner.
23    "Transaction data" includes: items purchased by a
24purchaser; the price of each item; a taxability determination
25for each item; a segregated tax amount for each taxed item; the
26amount of cash or credit tendered; the net amount returned to

 

 

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1the customer in change; the date and time of the purchase; the
2name, address, and identification number of the vendor; and the
3receipt or invoice number of the transaction.
4    "Transaction report" means a report that documents,
5without limitation, the sales, taxes, or fees collected, media
6totals, and discount voids at an electronic cash register and
7that is printed on a cash register tape at the end of a day or
8shift, or a report that documents every action at an electronic
9cash register and is stored electronically.
10    A prosecution for any act in violation of this Section may
11be commenced at any time within 5 years of the commission of
12that act.
13    (i) The Department may adopt rules to administer the
14penalties under this Section.
15    (j) Any person whose principal place of business is in this
16State and who is charged with a violation under this Section
17shall be tried in the county where his or her principal place
18of business is located unless he or she asserts a right to be
19tried in another venue.
20    (k) Except as otherwise provided in subsection (h), a
21prosecution for a violation described in this Section may be
22commenced within 3 years after the commission of the act
23constituting the violation.
 
24    Section 65-40. Department administration and enforcement.
25The Department shall have full power to administer and enforce

 

 

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1this Article, to collect all taxes and penalties due hereunder,
2to dispose of taxes and penalties so collected in the manner
3hereinafter provided, and to determine all rights to credit
4memoranda, arising on account of the erroneous payment of tax
5or penalty hereunder.
6    In the administration of, and compliance with, this
7Article, the Department and persons who are subject to this
8Article shall have the same rights, remedies, privileges,
9immunities, powers, and duties, and be subject to the same
10conditions, restrictions, limitations, penalties, and
11definitions of terms, and employ the same modes of procedure,
12as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,
1312a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and
14Sections 1, 2-12, 2b, 4 (except that the time limitation
15provisions shall run from the date when the tax is due rather
16than from the date when gross receipts are received), 5 (except
17that the time limitation provisions on the issuance of notices
18of tax liability shall run from the date when the tax is due
19rather than from the date when gross receipts are received and
20except that in the case of a failure to file a return required
21by this Act, no notice of tax liability shall be issued on and
22after each July 1 and January 1 covering tax due with that
23return during any month or period more than 6 years before that
24July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
255h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'
26Occupation Tax Act and all of the provisions of the Uniform

 

 

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1Penalty and Interest Act, which are not inconsistent with this
2Article, as fully as if those provisions were set forth herein.
3References in the incorporated Sections of the Retailers'
4Occupation Tax Act and the Use Tax Act to retailers, to
5sellers, or to persons engaged in the business of selling
6tangible personal property mean cannabis retailers when used in
7this Article. References in the incorporated Sections to sales
8of tangible personal property mean sales of cannabis subject to
9tax under this Article when used in this Article.
 
10    Section 65-41. Arrest; search and seizure without warrant.
11Any duly authorized employee of the Department: (i) may arrest
12without warrant any person committing in his or her presence a
13violation of any of the provisions of this Article; (ii) may
14without a search warrant inspect all cannabis located in any
15place of business; (iii) may seize any cannabis in the
16possession of the retailer in violation of this Act; and (iv)
17may seize any cannabis on which the tax imposed by Article 60
18of this Act has not been paid. The cannabis so seized is
19subject to confiscation and forfeiture as provided in Sections
2065-42 and 65-43.
 
21    Section 65-42. Seizure and forfeiture. After seizing any
22cannabis as provided in Section 65-41, the Department must hold
23a hearing and determine whether the retailer was properly
24registered to sell the cannabis at the time of its seizure by

 

 

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1the Department. The Department shall give not less than 20
2days' notice of the time and place of the hearing to the owner
3of the cannabis, if the owner is known, and also to the person
4in whose possession the cannabis was found, if that person is
5known and if the person in possession is not the owner of the
6cannabis. If neither the owner nor the person in possession of
7the cannabis is known, the Department must cause publication of
8the time and place of the hearing to be made at least once in
9each week for 3 weeks successively in a newspaper of general
10circulation in the county where the hearing is to be held.
11    If, as the result of the hearing, the Department determines
12that the retailer was not properly registered at the time the
13cannabis was seized, the Department must enter an order
14declaring the cannabis confiscated and forfeited to the State,
15to be held by the Department for disposal by it as provided in
16Section 65-43. The Department must give notice of the order to
17the owner of the cannabis, if the owner is known, and also to
18the person in whose possession the cannabis was found, if that
19person is known and if the person in possession is not the
20owner of the cannabis. If neither the owner nor the person in
21possession of the cannabis is known, the Department must cause
22publication of the order to be made at least once in each week
23for 3 weeks successively in a newspaper of general circulation
24in the county where the hearing was held.
 
25    Section 65-43. Search warrant; issuance and return;

 

 

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

 

 

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1manner as required by the law governing cases of attachment.
2Upon the return of the process duly served or upon the posting
3or publishing of notice made, as appropriate, the court or
4jury, if a jury is demanded, shall proceed to determine whether
5the property so seized was held or possessed in violation of
6this Article or a rule of the Department for the administration
7and enforcement of this Article. If a violation is found,
8judgment shall be entered confiscating the property and
9forfeiting it to the State and ordering its delivery to the
10Department. In addition, the court may tax and assess the costs
11of the proceedings.
12    (b) When any cannabis has been declared forfeited to the
13State by the Department, as provided in Section 65-42 and this
14Section, and when all proceedings for the judicial review of
15the Department's decision have terminated, the Department
16shall, to the extent that its decision is sustained on review,
17destroy or maintain and use such cannabis in an undercover
18capacity.
19    (c) The Department may, before any destruction of cannabis,
20permit the true holder of trademark rights in the cannabis to
21inspect such cannabis in order to assist the Department in any
22investigation regarding such cannabis.
 
23    Section 65-45. Cannabis retailers; purchase and possession
24of cannabis. Cannabis retailers shall purchase cannabis for
25resale only from cannabis business establishments as

 

 

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1authorized by this Act.
 
2    Section 65-50. Rulemaking. The Department may adopt rules
3in accordance with the Illinois Administrative Procedure Act
4and prescribe forms relating to the administration and
5enforcement of this Article as it deems appropriate.
 
6
ARTICLE 900.
7
AMENDATORY PROVISIONS

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

 

 

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1court orders adopting settlements negotiated by an agency may
2be adopted under this Section. Subject to applicable
3constitutional or statutory provisions, an emergency rule
4becomes effective immediately upon filing under Section 5-65 or
5at a stated date less than 10 days thereafter. The agency's
6finding and a statement of the specific reasons for the finding
7shall be filed with the rule. The agency shall take reasonable
8and appropriate measures to make emergency rules known to the
9persons who may be affected by them.
10    (c) An emergency rule may be effective for a period of not
11longer than 150 days, but the agency's authority to adopt an
12identical rule under Section 5-40 is not precluded. No
13emergency rule may be adopted more than once in any 24-month
14period, except that this limitation on the number of emergency
15rules that may be adopted in a 24-month period does not apply
16to (i) emergency rules that make additions to and deletions
17from the Drug Manual under Section 5-5.16 of the Illinois
18Public Aid Code or the generic drug formulary under Section
193.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
20emergency rules adopted by the Pollution Control Board before
21July 1, 1997 to implement portions of the Livestock Management
22Facilities Act, (iii) emergency rules adopted by the Illinois
23Department of Public Health under subsections (a) through (i)
24of Section 2 of the Department of Public Health Act when
25necessary to protect the public's health, (iv) emergency rules
26adopted pursuant to subsection (n) of this Section, (v)

 

 

10100HB1438sam002- 342 -LRB101 04919 RLC 61359 a

1emergency rules adopted pursuant to subsection (o) of this
2Section, or (vi) emergency rules adopted pursuant to subsection
3(c-5) of this Section. Two or more emergency rules having
4substantially the same purpose and effect shall be deemed to be
5a single rule for purposes of this Section.
6    (c-5) To facilitate the maintenance of the program of group
7health benefits provided to annuitants, survivors, and retired
8employees under the State Employees Group Insurance Act of
91971, rules to alter the contributions to be paid by the State,
10annuitants, survivors, retired employees, or any combination
11of those entities, for that program of group health benefits,
12shall be adopted as emergency rules. The adoption of those
13rules shall be considered an emergency and necessary for the
14public interest, safety, and welfare.
15    (d) In order to provide for the expeditious and timely
16implementation of the State's fiscal year 1999 budget,
17emergency rules to implement any provision of Public Act 90-587
18or 90-588 or any other budget initiative for fiscal year 1999
19may be adopted in accordance with this Section by the agency
20charged with administering that provision or initiative,
21except that the 24-month limitation on the adoption of
22emergency rules and the provisions of Sections 5-115 and 5-125
23do not apply to rules adopted under this subsection (d). The
24adoption of emergency rules authorized by this subsection (d)
25shall be deemed to be necessary for the public interest,
26safety, and welfare.

 

 

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1    (e) In order to provide for the expeditious and timely
2implementation of the State's fiscal year 2000 budget,
3emergency rules to implement any provision of Public Act 91-24
4or any other budget initiative for fiscal year 2000 may be
5adopted in accordance with this Section by the agency charged
6with administering that provision or initiative, except that
7the 24-month limitation on the adoption of emergency rules and
8the provisions of Sections 5-115 and 5-125 do not apply to
9rules adopted under this subsection (e). The adoption of
10emergency rules authorized by this subsection (e) shall be
11deemed to be necessary for the public interest, safety, and
12welfare.
13    (f) In order to provide for the expeditious and timely
14implementation of the State's fiscal year 2001 budget,
15emergency rules to implement any provision of Public Act 91-712
16or any other budget initiative for fiscal year 2001 may be
17adopted in accordance with this Section by the agency charged
18with administering that provision or initiative, except that
19the 24-month limitation on the adoption of emergency rules and
20the provisions of Sections 5-115 and 5-125 do not apply to
21rules adopted under this subsection (f). The adoption of
22emergency rules authorized by this subsection (f) shall be
23deemed to be necessary for the public interest, safety, and
24welfare.
25    (g) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 2002 budget,

 

 

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1emergency rules to implement any provision of Public Act 92-10
2or any other budget initiative for fiscal year 2002 may be
3adopted in accordance with this Section by the agency charged
4with administering that provision or initiative, except that
5the 24-month limitation on the adoption of emergency rules and
6the provisions of Sections 5-115 and 5-125 do not apply to
7rules adopted under this subsection (g). The adoption of
8emergency rules authorized by this subsection (g) shall be
9deemed to be necessary for the public interest, safety, and
10welfare.
11    (h) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 2003 budget,
13emergency rules to implement any provision of Public Act 92-597
14or any other budget initiative for fiscal year 2003 may be
15adopted in accordance with this Section by the agency charged
16with administering that provision or initiative, except that
17the 24-month limitation on the adoption of emergency rules and
18the provisions of Sections 5-115 and 5-125 do not apply to
19rules adopted under this subsection (h). The adoption of
20emergency rules authorized by this subsection (h) shall be
21deemed to be necessary for the public interest, safety, and
22welfare.
23    (i) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2004 budget,
25emergency rules to implement any provision of Public Act 93-20
26or any other budget initiative for fiscal year 2004 may be

 

 

10100HB1438sam002- 345 -LRB101 04919 RLC 61359 a

1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (i). The adoption of
6emergency rules authorized by this subsection (i) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9    (j) In order to provide for the expeditious and timely
10implementation of the provisions of the State's fiscal year
112005 budget as provided under the Fiscal Year 2005 Budget
12Implementation (Human Services) Act, emergency rules to
13implement any provision of the Fiscal Year 2005 Budget
14Implementation (Human Services) Act may be adopted in
15accordance with this Section by the agency charged with
16administering that provision, except that the 24-month
17limitation on the adoption of emergency rules and the
18provisions of Sections 5-115 and 5-125 do not apply to rules
19adopted under this subsection (j). The Department of Public Aid
20may also adopt rules under this subsection (j) necessary to
21administer the Illinois Public Aid Code and the Children's
22Health Insurance Program Act. The adoption of emergency rules
23authorized by this subsection (j) shall be deemed to be
24necessary for the public interest, safety, and welfare.
25    (k) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

10100HB1438sam002- 346 -LRB101 04919 RLC 61359 a

12006 budget, emergency rules to implement any provision of
2Public Act 94-48 or any other budget initiative for fiscal year
32006 may be adopted in accordance with this Section by the
4agency charged with administering that provision or
5initiative, except that the 24-month limitation on the adoption
6of emergency rules and the provisions of Sections 5-115 and
75-125 do not apply to rules adopted under this subsection (k).
8The Department of Healthcare and Family Services may also adopt
9rules under this subsection (k) necessary to administer the
10Illinois Public Aid Code, the Senior Citizens and Persons with
11Disabilities Property Tax Relief Act, the Senior Citizens and
12Disabled Persons Prescription Drug Discount Program Act (now
13the Illinois Prescription Drug Discount Program Act), and the
14Children's Health Insurance Program Act. The adoption of
15emergency rules authorized by this subsection (k) shall be
16deemed to be necessary for the public interest, safety, and
17welfare.
18    (l) In order to provide for the expeditious and timely
19implementation of the provisions of the State's fiscal year
202007 budget, the Department of Healthcare and Family Services
21may adopt emergency rules during fiscal year 2007, including
22rules effective July 1, 2007, in accordance with this
23subsection to the extent necessary to administer the
24Department's responsibilities with respect to amendments to
25the State plans and Illinois waivers approved by the federal
26Centers for Medicare and Medicaid Services necessitated by the

 

 

10100HB1438sam002- 347 -LRB101 04919 RLC 61359 a

1requirements of Title XIX and Title XXI of the federal Social
2Security Act. The adoption of emergency rules authorized by
3this subsection (l) shall be deemed to be necessary for the
4public interest, safety, and welfare.
5    (m) In order to provide for the expeditious and timely
6implementation of the provisions of the State's fiscal year
72008 budget, the Department of Healthcare and Family Services
8may adopt emergency rules during fiscal year 2008, including
9rules effective July 1, 2008, in accordance with this
10subsection to the extent necessary to administer the
11Department's responsibilities with respect to amendments to
12the State plans and Illinois waivers approved by the federal
13Centers for Medicare and Medicaid Services necessitated by the
14requirements of Title XIX and Title XXI of the federal Social
15Security Act. The adoption of emergency rules authorized by
16this subsection (m) shall be deemed to be necessary for the
17public interest, safety, and welfare.
18    (n) In order to provide for the expeditious and timely
19implementation of the provisions of the State's fiscal year
202010 budget, emergency rules to implement any provision of
21Public Act 96-45 or any other budget initiative authorized by
22the 96th General Assembly for fiscal year 2010 may be adopted
23in accordance with this Section by the agency charged with
24administering that provision or initiative. The adoption of
25emergency rules authorized by this subsection (n) shall be
26deemed to be necessary for the public interest, safety, and

 

 

10100HB1438sam002- 348 -LRB101 04919 RLC 61359 a

1welfare. The rulemaking authority granted in this subsection
2(n) shall apply only to rules promulgated during Fiscal Year
32010.
4    (o) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62011 budget, emergency rules to implement any provision of
7Public Act 96-958 or any other budget initiative authorized by
8the 96th General Assembly for fiscal year 2011 may be adopted
9in accordance with this Section by the agency charged with
10administering that provision or initiative. The adoption of
11emergency rules authorized by this subsection (o) is deemed to
12be necessary for the public interest, safety, and welfare. The
13rulemaking authority granted in this subsection (o) applies
14only to rules promulgated on or after July 1, 2010 (the
15effective date of Public Act 96-958) through June 30, 2011.
16    (p) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 97-689,
18emergency rules to implement any provision of Public Act 97-689
19may be adopted in accordance with this subsection (p) by the
20agency charged with administering that provision or
21initiative. The 150-day limitation of the effective period of
22emergency rules does not apply to rules adopted under this
23subsection (p), and the effective period may continue through
24June 30, 2013. The 24-month limitation on the adoption of
25emergency rules does not apply to rules adopted under this
26subsection (p). The adoption of emergency rules authorized by

 

 

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1this subsection (p) is deemed to be necessary for the public
2interest, safety, and welfare.
3    (q) In order to provide for the expeditious and timely
4implementation of the provisions of Articles 7, 8, 9, 11, and
512 of Public Act 98-104, emergency rules to implement any
6provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
7may be adopted in accordance with this subsection (q) by the
8agency charged with administering that provision or
9initiative. The 24-month limitation on the adoption of
10emergency rules does not apply to rules adopted under this
11subsection (q). The adoption of emergency rules authorized by
12this subsection (q) is deemed to be necessary for the public
13interest, safety, and welfare.
14    (r) In order to provide for the expeditious and timely
15implementation of the provisions of Public Act 98-651,
16emergency rules to implement Public Act 98-651 may be adopted
17in accordance with this subsection (r) by the Department of
18Healthcare and Family Services. The 24-month limitation on the
19adoption of emergency rules does not apply to rules adopted
20under this subsection (r). The adoption of emergency rules
21authorized by this subsection (r) is deemed to be necessary for
22the public interest, safety, and welfare.
23    (s) In order to provide for the expeditious and timely
24implementation of the provisions of Sections 5-5b.1 and 5A-2 of
25the Illinois Public Aid Code, emergency rules to implement any
26provision of Section 5-5b.1 or Section 5A-2 of the Illinois

 

 

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1Public Aid Code may be adopted in accordance with this
2subsection (s) by the Department of Healthcare and Family
3Services. The rulemaking authority granted in this subsection
4(s) shall apply only to those rules adopted prior to July 1,
52015. Notwithstanding any other provision of this Section, any
6emergency rule adopted under this subsection (s) shall only
7apply to payments made for State fiscal year 2015. The adoption
8of emergency rules authorized by this subsection (s) is deemed
9to be necessary for the public interest, safety, and welfare.
10    (t) In order to provide for the expeditious and timely
11implementation of the provisions of Article II of Public Act
1299-6, emergency rules to implement the changes made by Article
13II of Public Act 99-6 to the Emergency Telephone System Act may
14be adopted in accordance with this subsection (t) by the
15Department of State Police. The rulemaking authority granted in
16this subsection (t) shall apply only to those rules adopted
17prior to July 1, 2016. The 24-month limitation on the adoption
18of emergency rules does not apply to rules adopted under this
19subsection (t). The adoption of emergency rules authorized by
20this subsection (t) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (u) In order to provide for the expeditious and timely
23implementation of the provisions of the Burn Victims Relief
24Act, emergency rules to implement any provision of the Act may
25be adopted in accordance with this subsection (u) by the
26Department of Insurance. The rulemaking authority granted in

 

 

10100HB1438sam002- 351 -LRB101 04919 RLC 61359 a

1this subsection (u) shall apply only to those rules adopted
2prior to December 31, 2015. The adoption of emergency rules
3authorized by this subsection (u) is deemed to be necessary for
4the public interest, safety, and welfare.
5    (v) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 99-516,
7emergency rules to implement Public Act 99-516 may be adopted
8in accordance with this subsection (v) by the Department of
9Healthcare and Family Services. The 24-month limitation on the
10adoption of emergency rules does not apply to rules adopted
11under this subsection (v). The adoption of emergency rules
12authorized by this subsection (v) is deemed to be necessary for
13the public interest, safety, and welfare.
14    (w) In order to provide for the expeditious and timely
15implementation of the provisions of Public Act 99-796,
16emergency rules to implement the changes made by Public Act
1799-796 may be adopted in accordance with this subsection (w) by
18the Adjutant General. The adoption of emergency rules
19authorized by this subsection (w) is deemed to be necessary for
20the public interest, safety, and welfare.
21    (x) In order to provide for the expeditious and timely
22implementation of the provisions of Public Act 99-906,
23emergency rules to implement subsection (i) of Section 16-115D,
24subsection (g) of Section 16-128A, and subsection (a) of
25Section 16-128B of the Public Utilities Act may be adopted in
26accordance with this subsection (x) by the Illinois Commerce

 

 

10100HB1438sam002- 352 -LRB101 04919 RLC 61359 a

1Commission. The rulemaking authority granted in this
2subsection (x) shall apply only to those rules adopted within
3180 days after June 1, 2017 (the effective date of Public Act
499-906). The adoption of emergency rules authorized by this
5subsection (x) is deemed to be necessary for the public
6interest, safety, and welfare.
7    (y) In order to provide for the expeditious and timely
8implementation of the provisions of Public Act 100-23,
9emergency rules to implement the changes made by Public Act
10100-23 to Section 4.02 of the Illinois Act on the Aging,
11Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
12Section 55-30 of the Alcoholism and Other Drug Abuse and
13Dependency Act, and Sections 74 and 75 of the Mental Health and
14Developmental Disabilities Administrative Act may be adopted
15in accordance with this subsection (y) by the respective
16Department. The adoption of emergency rules authorized by this
17subsection (y) is deemed to be necessary for the public
18interest, safety, and welfare.
19    (z) In order to provide for the expeditious and timely
20implementation of the provisions of Public Act 100-554,
21emergency rules to implement the changes made by Public Act
22100-554 to Section 4.7 of the Lobbyist Registration Act may be
23adopted in accordance with this subsection (z) by the Secretary
24of State. The adoption of emergency rules authorized by this
25subsection (z) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

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1    (aa) In order to provide for the expeditious and timely
2initial implementation of the changes made to Articles 5, 5A,
312, and 14 of the Illinois Public Aid Code under the provisions
4of Public Act 100-581, the Department of Healthcare and Family
5Services may adopt emergency rules in accordance with this
6subsection (aa). The 24-month limitation on the adoption of
7emergency rules does not apply to rules to initially implement
8the changes made to Articles 5, 5A, 12, and 14 of the Illinois
9Public Aid Code adopted under this subsection (aa). The
10adoption of emergency rules authorized by this subsection (aa)
11is deemed to be necessary for the public interest, safety, and
12welfare.
13    (bb) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 100-587,
15emergency rules to implement the changes made by Public Act
16100-587 to Section 4.02 of the Illinois Act on the Aging,
17Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
18subsection (b) of Section 55-30 of the Alcoholism and Other
19Drug Abuse and Dependency Act, Section 5-104 of the Specialized
20Mental Health Rehabilitation Act of 2013, and Section 75 and
21subsection (b) of Section 74 of the Mental Health and
22Developmental Disabilities Administrative Act may be adopted
23in accordance with this subsection (bb) by the respective
24Department. The adoption of emergency rules authorized by this
25subsection (bb) is deemed to be necessary for the public
26interest, safety, and welfare.

 

 

10100HB1438sam002- 354 -LRB101 04919 RLC 61359 a

1    (cc) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 100-587,
3emergency rules may be adopted in accordance with this
4subsection (cc) to implement the changes made by Public Act
5100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
6Pension Code by the Board created under Article 14 of the Code;
7Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
8the Board created under Article 15 of the Code; and Sections
916-190.5 and 16-190.6 of the Illinois Pension Code by the Board
10created under Article 16 of the Code. The adoption of emergency
11rules authorized by this subsection (cc) is deemed to be
12necessary for the public interest, safety, and welfare.
13    (dd) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 100-864,
15emergency rules to implement the changes made by Public Act
16100-864 to Section 3.35 of the Newborn Metabolic Screening Act
17may be adopted in accordance with this subsection (dd) by the
18Secretary of State. The adoption of emergency rules authorized
19by this subsection (dd) is deemed to be necessary for the
20public interest, safety, and welfare.
21    (ee) In order to provide for the expeditious and timely
22implementation of the provisions of this amendatory Act of the
23100th General Assembly, emergency rules implementing the
24Illinois Underground Natural Gas Storage Safety Act may be
25adopted in accordance with this subsection by the Department of
26Natural Resources. The adoption of emergency rules authorized

 

 

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1by this subsection is deemed to be necessary for the public
2interest, safety, and welfare.
3    (ff) In order to provide for the expeditious and timely
4implementation of the provisions of this amendatory Act of the
5101st General Assembly, emergency rules may be adopted by the
6Department of Labor in accordance with this subsection (ff) to
7implement the changes made by this amendatory Act of the 101st
8General Assembly to the Minimum Wage Law. The adoption of
9emergency rules authorized by this subsection (ff) is deemed to
10be necessary for the public interest, safety, and welfare.
11    (gg) In order to provide for the expeditious and timely
12implementation of the Cannabis Regulation and Tax Act and this
13amendatory Act of the 101st General Assembly, the Department of
14Revenue, the Department of Public Health, the Department of
15Agriculture, the Department of State Police, and the Department
16of Financial and Professional Regulation may adopt emergency
17rules in accordance with this subsection (gg). The rulemaking
18authority granted in this subsection (gg) shall apply only to
19rules adopted before December 31, 2021. Notwithstanding the
20provisions of subsection (c), emergency rules adopted under
21this subsection (gg) shall be effective for 180 days. The
22adoption of emergency rules authorized by this subsection (gg)
23is deemed to be necessary for the public interest, safety, and
24welfare.
25(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
26100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

 

 

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16-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
2100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.
32-19-19.)
 
4    Section 900-8. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
 
6    (5 ILCS 140/7.5)
7    Sec. 7.5. Statutory exemptions. To the extent provided for
8by the statutes referenced below, the following shall be exempt
9from inspection and copying:
10        (a) All information determined to be confidential
11    under Section 4002 of the Technology Advancement and
12    Development Act.
13        (b) Library circulation and order records identifying
14    library users with specific materials under the Library
15    Records Confidentiality Act.
16        (c) Applications, related documents, and medical
17    records received by the Experimental Organ Transplantation
18    Procedures Board and any and all documents or other records
19    prepared by the Experimental Organ Transplantation
20    Procedures Board or its staff relating to applications it
21    has received.
22        (d) Information and records held by the Department of
23    Public Health and its authorized representatives relating
24    to known or suspected cases of sexually transmissible

 

 

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1    disease or any information the disclosure of which is
2    restricted under the Illinois Sexually Transmissible
3    Disease Control Act.
4        (e) Information the disclosure of which is exempted
5    under Section 30 of the Radon Industry Licensing Act.
6        (f) Firm performance evaluations under Section 55 of
7    the Architectural, Engineering, and Land Surveying
8    Qualifications Based Selection Act.
9        (g) Information the disclosure of which is restricted
10    and exempted under Section 50 of the Illinois Prepaid
11    Tuition Act.
12        (h) Information the disclosure of which is exempted
13    under the State Officials and Employees Ethics Act, and
14    records of any lawfully created State or local inspector
15    general's office that would be exempt if created or
16    obtained by an Executive Inspector General's office under
17    that Act.
18        (i) Information contained in a local emergency energy
19    plan submitted to a municipality in accordance with a local
20    emergency energy plan ordinance that is adopted under
21    Section 11-21.5-5 of the Illinois Municipal Code.
22        (j) Information and data concerning the distribution
23    of surcharge moneys collected and remitted by carriers
24    under the Emergency Telephone System Act.
25        (k) Law enforcement officer identification information
26    or driver identification information compiled by a law

 

 

10100HB1438sam002- 358 -LRB101 04919 RLC 61359 a

1    enforcement agency or the Department of Transportation
2    under Section 11-212 of the Illinois Vehicle Code.
3        (l) Records and information provided to a residential
4    health care facility resident sexual assault and death
5    review team or the Executive Council under the Abuse
6    Prevention Review Team Act.
7        (m) Information provided to the predatory lending
8    database created pursuant to Article 3 of the Residential
9    Real Property Disclosure Act, except to the extent
10    authorized under that Article.
11        (n) Defense budgets and petitions for certification of
12    compensation and expenses for court appointed trial
13    counsel as provided under Sections 10 and 15 of the Capital
14    Crimes Litigation Act. This subsection (n) shall apply
15    until the conclusion of the trial of the case, even if the
16    prosecution chooses not to pursue the death penalty prior
17    to trial or sentencing.
18        (o) Information that is prohibited from being
19    disclosed under Section 4 of the Illinois Health and
20    Hazardous Substances Registry Act.
21        (p) Security portions of system safety program plans,
22    investigation reports, surveys, schedules, lists, data, or
23    information compiled, collected, or prepared by or for the
24    Regional Transportation Authority under Section 2.11 of
25    the Regional Transportation Authority Act or the St. Clair
26    County Transit District under the Bi-State Transit Safety

 

 

10100HB1438sam002- 359 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 360 -LRB101 04919 RLC 61359 a

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

 

 

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1        (aa) Information which is exempted from disclosure
2    under Section 2.37 of the Wildlife Code.
3        (bb) Information which is or was prohibited from
4    disclosure by the Juvenile Court Act of 1987.
5        (cc) Recordings made under the Law Enforcement
6    Officer-Worn Body Camera Act, except to the extent
7    authorized under that Act.
8        (dd) Information that is prohibited from being
9    disclosed under Section 45 of the Condominium and Common
10    Interest Community Ombudsperson Act.
11        (ee) Information that is exempted from disclosure
12    under Section 30.1 of the Pharmacy Practice Act.
13        (ff) Information that is exempted from disclosure
14    under the Revised Uniform Unclaimed Property Act.
15        (gg) Information that is prohibited from being
16    disclosed under Section 7-603.5 of the Illinois Vehicle
17    Code.
18        (hh) Records that are exempt from disclosure under
19    Section 1A-16.7 of the Election Code.
20        (ii) Information which is exempted from disclosure
21    under Section 2505-800 of the Department of Revenue Law of
22    the Civil Administrative Code of Illinois.
23        (jj) Information and reports that are required to be
24    submitted to the Department of Labor by registering day and
25    temporary labor service agencies but are exempt from
26    disclosure under subsection (a-1) of Section 45 of the Day

 

 

10100HB1438sam002- 362 -LRB101 04919 RLC 61359 a

1    and Temporary Labor Services Act.
2        (kk) Information prohibited from disclosure under the
3    Seizure and Forfeiture Reporting Act.
4        (ll) Information the disclosure of which is restricted
5    and exempted under Section 5-30.8 of the Illinois Public
6    Aid Code.
7        (mm) (ll) Records that are exempt from disclosure under
8    Section 4.2 of the Crime Victims Compensation Act.
9        (nn) (ll) Information that is exempt from disclosure
10    under Section 70 of the Higher Education Student Assistance
11    Act.
12        (oo) Information that is exempt from disclosure under
13    the Cannabis Regulation and Tax Act.
14(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,
15eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;
1699-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
17100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
188-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
19eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
20100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised
2110-12-18.)
 
22    Section 900-10. The Department of Revenue Law of the Civil
23Administrative Code of Illinois is amended by changing Section
242505-210 as follows:
 

 

 

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1    (20 ILCS 2505/2505-210)  (was 20 ILCS 2505/39c-1)
2    Sec. 2505-210. Electronic funds transfer.
3    (a) The Department may provide means by which persons
4having a tax liability under any Act administered by the
5Department may use electronic funds transfer to pay the tax
6liability.
7    (b) Mandatory payment by electronic funds transfer. Except
8as otherwise provided in a tax Act administered by the
9Department Beginning on October 1, 2002, and through September
1030, 2010, a taxpayer who has an annual tax liability of
11$200,000 or more shall make all payments of that tax to the
12Department by electronic funds transfer. Beginning October 1,
132010, a taxpayer (other than an individual taxpayer) who has an
14annual tax liability of $20,000 or more and an individual
15taxpayer who has an annual tax liability of $200,000 or more
16shall make all payments of that tax to the Department by
17electronic funds transfer. Before August 1 of each year,
18beginning in 2002, the Department shall notify all taxpayers
19required to make payments by electronic funds transfer. All
20taxpayers required to make payments by electronic funds
21transfer shall make those payments for a minimum of one year
22beginning on October 1. For purposes of this subsection (b),
23the term "annual tax liability" means, except as provided in
24subsections (c) and (d) of this Section, the sum of the
25taxpayer's liabilities under a tax Act administered by the
26Department for the immediately preceding calendar year.

 

 

10100HB1438sam002- 364 -LRB101 04919 RLC 61359 a

1    (c) For purposes of subsection (b), the term "annual tax
2liability" means, for a taxpayer that incurs a tax liability
3under the Retailers' Occupation Tax Act, Service Occupation Tax
4Act, Use Tax Act, Service Use Tax Act, or any other State or
5local occupation or use tax law that is administered by the
6Department, the sum of the taxpayer's liabilities under the
7Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
8Tax Act, Service Use Tax Act, and all other State and local
9occupation and use tax laws administered by the Department for
10the immediately preceding calendar year.
11    (d) For purposes of subsection (b), the term "annual tax
12liability" means, for a taxpayer that incurs an Illinois income
13tax liability, the greater of:
14        (1) the amount of the taxpayer's tax liability under
15    Article 7 of the Illinois Income Tax Act for the
16    immediately preceding calendar year; or
17        (2) the taxpayer's estimated tax payment obligation
18    under Article 8 of the Illinois Income Tax Act for the
19    immediately preceding calendar year.
20    (e) The Department shall adopt such rules as are necessary
21to effectuate a program of electronic funds transfer and the
22requirements of this Section.
23(Source: P.A. 100-1171, eff. 1-4-19.)
 
24    Section 900-12. The Criminal Identification Act is amended
25by changing Section 5.2 as follows:
 

 

 

10100HB1438sam002- 365 -LRB101 04919 RLC 61359 a

1    (20 ILCS 2630/5.2)
2    Sec. 5.2. Expungement, sealing, and immediate sealing.
3    (a) General Provisions.
4        (1) Definitions. In this Act, words and phrases have
5    the meanings set forth in this subsection, except when a
6    particular context clearly requires a different meaning.
7            (A) The following terms shall have the meanings
8        ascribed to them in the Unified Code of Corrections,
9        730 ILCS 5/5-1-2 through 5/5-1-22:
10                (i) Business Offense (730 ILCS 5/5-1-2),
11                (ii) Charge (730 ILCS 5/5-1-3),
12                (iii) Court (730 ILCS 5/5-1-6),
13                (iv) Defendant (730 ILCS 5/5-1-7),
14                (v) Felony (730 ILCS 5/5-1-9),
15                (vi) Imprisonment (730 ILCS 5/5-1-10),
16                (vii) Judgment (730 ILCS 5/5-1-12),
17                (viii) Misdemeanor (730 ILCS 5/5-1-14),
18                (ix) Offense (730 ILCS 5/5-1-15),
19                (x) Parole (730 ILCS 5/5-1-16),
20                (xi) Petty Offense (730 ILCS 5/5-1-17),
21                (xii) Probation (730 ILCS 5/5-1-18),
22                (xiii) Sentence (730 ILCS 5/5-1-19),
23                (xiv) Supervision (730 ILCS 5/5-1-21), and
24                (xv) Victim (730 ILCS 5/5-1-22).
25            (B) As used in this Section, "charge not initiated

 

 

10100HB1438sam002- 366 -LRB101 04919 RLC 61359 a

1        by arrest" means a charge (as defined by 730 ILCS
2        5/5-1-3) brought against a defendant where the
3        defendant is not arrested prior to or as a direct
4        result of the charge.
5            (C) "Conviction" means a judgment of conviction or
6        sentence entered upon a plea of guilty or upon a
7        verdict or finding of guilty of an offense, rendered by
8        a legally constituted jury or by a court of competent
9        jurisdiction authorized to try the case without a jury.
10        An order of supervision successfully completed by the
11        petitioner is not a conviction. An order of qualified
12        probation (as defined in subsection (a)(1)(J))
13        successfully completed by the petitioner is not a
14        conviction. An order of supervision or an order of
15        qualified probation that is terminated
16        unsatisfactorily is a conviction, unless the
17        unsatisfactory termination is reversed, vacated, or
18        modified and the judgment of conviction, if any, is
19        reversed or vacated.
20            (D) "Criminal offense" means a petty offense,
21        business offense, misdemeanor, felony, or municipal
22        ordinance violation (as defined in subsection
23        (a)(1)(H)). As used in this Section, a minor traffic
24        offense (as defined in subsection (a)(1)(G)) shall not
25        be considered a criminal offense.
26            (E) "Expunge" means to physically destroy the

 

 

10100HB1438sam002- 367 -LRB101 04919 RLC 61359 a

1        records or return them to the petitioner and to
2        obliterate the petitioner's name from any official
3        index or public record, or both. Nothing in this Act
4        shall require the physical destruction of the circuit
5        court file, but such records relating to arrests or
6        charges, or both, ordered expunged shall be impounded
7        as required by subsections (d)(9)(A)(ii) and
8        (d)(9)(B)(ii).
9            (F) As used in this Section, "last sentence" means
10        the sentence, order of supervision, or order of
11        qualified probation (as defined by subsection
12        (a)(1)(J)), for a criminal offense (as defined by
13        subsection (a)(1)(D)) that terminates last in time in
14        any jurisdiction, regardless of whether the petitioner
15        has included the criminal offense for which the
16        sentence or order of supervision or qualified
17        probation was imposed in his or her petition. If
18        multiple sentences, orders of supervision, or orders
19        of qualified probation terminate on the same day and
20        are last in time, they shall be collectively considered
21        the "last sentence" regardless of whether they were
22        ordered to run concurrently.
23            (G) "Minor traffic offense" means a petty offense,
24        business offense, or Class C misdemeanor under the
25        Illinois Vehicle Code or a similar provision of a
26        municipal or local ordinance.

 

 

10100HB1438sam002- 368 -LRB101 04919 RLC 61359 a

1            (G-5) "Minor Cannabis Offense" means a violation
2        of Section 4 or 5 of the Cannabis Control Act
3        concerning not more than 30 grams of any substance
4        containing cannabis, provided the violation did not
5        include a penalty enhancement under Section 7 of the
6        Cannabis Control Act and is not associated with an
7        arrest, conviction or other disposition for a violent
8        crime as defined in subsection (c) of Section 3 of the
9        Rights of Crime Victims and Witnesses Act.
10            (H) "Municipal ordinance violation" means an
11        offense defined by a municipal or local ordinance that
12        is criminal in nature and with which the petitioner was
13        charged or for which the petitioner was arrested and
14        released without charging.
15            (I) "Petitioner" means an adult or a minor
16        prosecuted as an adult who has applied for relief under
17        this Section.
18            (J) "Qualified probation" means an order of
19        probation under Section 10 of the Cannabis Control Act,
20        Section 410 of the Illinois Controlled Substances Act,
21        Section 70 of the Methamphetamine Control and
22        Community Protection Act, Section 5-6-3.3 or 5-6-3.4
23        of the Unified Code of Corrections, Section
24        12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
25        those provisions existed before their deletion by
26        Public Act 89-313), Section 10-102 of the Illinois

 

 

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1        Alcoholism and Other Drug Dependency Act, Section
2        40-10 of the Substance Use Disorder Act, or Section 10
3        of the Steroid Control Act. For the purpose of this
4        Section, "successful completion" of an order of
5        qualified probation under Section 10-102 of the
6        Illinois Alcoholism and Other Drug Dependency Act and
7        Section 40-10 of the Substance Use Disorder Act means
8        that the probation was terminated satisfactorily and
9        the judgment of conviction was vacated.
10            (K) "Seal" means to physically and electronically
11        maintain the records, unless the records would
12        otherwise be destroyed due to age, but to make the
13        records unavailable without a court order, subject to
14        the exceptions in Sections 12 and 13 of this Act. The
15        petitioner's name shall also be obliterated from the
16        official index required to be kept by the circuit court
17        clerk under Section 16 of the Clerks of Courts Act, but
18        any index issued by the circuit court clerk before the
19        entry of the order to seal shall not be affected.
20            (L) "Sexual offense committed against a minor"
21        includes but is not limited to the offenses of indecent
22        solicitation of a child or criminal sexual abuse when
23        the victim of such offense is under 18 years of age.
24            (M) "Terminate" as it relates to a sentence or
25        order of supervision or qualified probation includes
26        either satisfactory or unsatisfactory termination of

 

 

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1        the sentence, unless otherwise specified in this
2        Section. A sentence is terminated notwithstanding any
3        outstanding financial legal obligation.
4        (2) Minor Traffic Offenses. Orders of supervision or
5    convictions for minor traffic offenses shall not affect a
6    petitioner's eligibility to expunge or seal records
7    pursuant to this Section.
8        (2.5) Commencing 180 days after July 29, 2016 (the
9    effective date of Public Act 99-697), the law enforcement
10    agency issuing the citation shall automatically expunge,
11    on or before January 1 and July 1 of each year, the law
12    enforcement records of a person found to have committed a
13    civil law violation of subsection (a) of Section 4 of the
14    Cannabis Control Act or subsection (c) of Section 3.5 of
15    the Drug Paraphernalia Control Act in the law enforcement
16    agency's possession or control and which contains the final
17    satisfactory disposition which pertain to the person
18    issued a citation for that offense. The law enforcement
19    agency shall provide by rule the process for access,
20    review, and to confirm the automatic expungement by the law
21    enforcement agency issuing the citation. Commencing 180
22    days after July 29, 2016 (the effective date of Public Act
23    99-697), the clerk of the circuit court shall expunge, upon
24    order of the court, or in the absence of a court order on
25    or before January 1 and July 1 of each year, the court
26    records of a person found in the circuit court to have

 

 

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1    committed a civil law violation of subsection (a) of
2    Section 4 of the Cannabis Control Act or subsection (c) of
3    Section 3.5 of the Drug Paraphernalia Control Act in the
4    clerk's possession or control and which contains the final
5    satisfactory disposition which pertain to the person
6    issued a citation for any of those offenses.
7        (3) Exclusions. Except as otherwise provided in
8    subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
9    of this Section, the court shall not order:
10            (A) the sealing or expungement of the records of
11        arrests or charges not initiated by arrest that result
12        in an order of supervision for or conviction of: (i)
13        any sexual offense committed against a minor; (ii)
14        Section 11-501 of the Illinois Vehicle Code or a
15        similar provision of a local ordinance; or (iii)
16        Section 11-503 of the Illinois Vehicle Code or a
17        similar provision of a local ordinance, unless the
18        arrest or charge is for a misdemeanor violation of
19        subsection (a) of Section 11-503 or a similar provision
20        of a local ordinance, that occurred prior to the
21        offender reaching the age of 25 years and the offender
22        has no other conviction for violating Section 11-501 or
23        11-503 of the Illinois Vehicle Code or a similar
24        provision of a local ordinance.
25            (B) the sealing or expungement of records of minor
26        traffic offenses (as defined in subsection (a)(1)(G)),

 

 

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1        unless the petitioner was arrested and released
2        without charging.
3            (C) the sealing of the records of arrests or
4        charges not initiated by arrest which result in an
5        order of supervision or a conviction for the following
6        offenses:
7                (i) offenses included in Article 11 of the
8            Criminal Code of 1961 or the Criminal Code of 2012
9            or a similar provision of a local ordinance, except
10            Section 11-14 and a misdemeanor violation of
11            Section 11-30 of the Criminal Code of 1961 or the
12            Criminal Code of 2012, or a similar provision of a
13            local ordinance;
14                (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
15            26-5, or 48-1 of the Criminal Code of 1961 or the
16            Criminal Code of 2012, or a similar provision of a
17            local ordinance;
18                (iii) Sections 12-3.1 or 12-3.2 of the
19            Criminal Code of 1961 or the Criminal Code of 2012,
20            or Section 125 of the Stalking No Contact Order
21            Act, or Section 219 of the Civil No Contact Order
22            Act, or a similar provision of a local ordinance;
23                (iv) Class A misdemeanors or felony offenses
24            under the Humane Care for Animals Act; or
25                (v) any offense or attempted offense that
26            would subject a person to registration under the

 

 

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1            Sex Offender Registration Act.
2            (D) (blank).
3    (b) Expungement.
4        (1) A petitioner may petition the circuit court to
5    expunge the records of his or her arrests and charges not
6    initiated by arrest when each arrest or charge not
7    initiated by arrest sought to be expunged resulted in: (i)
8    acquittal, dismissal, or the petitioner's release without
9    charging, unless excluded by subsection (a)(3)(B); (ii) a
10    conviction which was vacated or reversed, unless excluded
11    by subsection (a)(3)(B); (iii) an order of supervision and
12    such supervision was successfully completed by the
13    petitioner, unless excluded by subsection (a)(3)(A) or
14    (a)(3)(B); or (iv) an order of qualified probation (as
15    defined in subsection (a)(1)(J)) and such probation was
16    successfully completed by the petitioner.
17        (1.5) When a petitioner seeks to have a record of
18    arrest expunged under this Section, and the offender has
19    been convicted of a criminal offense, the State's Attorney
20    may object to the expungement on the grounds that the
21    records contain specific relevant information aside from
22    the mere fact of the arrest.
23        (2) Time frame for filing a petition to expunge.
24            (A) When the arrest or charge not initiated by
25        arrest sought to be expunged resulted in an acquittal,
26        dismissal, the petitioner's release without charging,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Section 12-3.05 of the Criminal Code of 1961 or the
2    Criminal Code of 2012, Section 10-102 of the Illinois
3    Alcoholism and Other Drug Dependency Act, Section 40-10 of
4    the Substance Use Disorder Act, or Section 10 of the
5    Steroid Control Act.
6        (8) If the petitioner has been granted a certificate of
7    innocence under Section 2-702 of the Code of Civil
8    Procedure, the court that grants the certificate of
9    innocence shall also enter an order expunging the
10    conviction for which the petitioner has been determined to
11    be innocent as provided in subsection (h) of Section 2-702
12    of the Code of Civil Procedure.
13    (c) Sealing.
14        (1) Applicability. Notwithstanding any other provision
15    of this Act to the contrary, and cumulative with any rights
16    to expungement of criminal records, this subsection
17    authorizes the sealing of criminal records of adults and of
18    minors prosecuted as adults. Subsection (g) of this Section
19    provides for immediate sealing of certain records.
20        (2) Eligible Records. The following records may be
21    sealed:
22            (A) All arrests resulting in release without
23        charging;
24            (B) Arrests or charges not initiated by arrest
25        resulting in acquittal, dismissal, or conviction when
26        the conviction was reversed or vacated, except as

 

 

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

 

 

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

 

 

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1        bachelor's degree, or passed the high school level Test
2        of General Educational Development, during the period
3        of his or her sentence, aftercare release, or mandatory
4        supervised release. This subparagraph shall apply only
5        to a petitioner who has not completed the same
6        educational goal prior to the period of his or her
7        sentence, aftercare release, or mandatory supervised
8        release. If a petition for sealing eligible records
9        filed under this subparagraph is denied by the court,
10        the time periods under subparagraph (B) or (C) shall
11        apply to any subsequent petition for sealing filed by
12        the petitioner.
13        (4) Subsequent felony convictions. A person may not
14    have subsequent felony conviction records sealed as
15    provided in this subsection (c) if he or she is convicted
16    of any felony offense after the date of the sealing of
17    prior felony convictions as provided in this subsection
18    (c). The court may, upon conviction for a subsequent felony
19    offense, order the unsealing of prior felony conviction
20    records previously ordered sealed by the court.
21        (5) Notice of eligibility for sealing. Upon entry of a
22    disposition for an eligible record under this subsection
23    (c), the petitioner shall be informed by the court of the
24    right to have the records sealed and the procedures for the
25    sealing of the records.
26    (d) Procedure. The following procedures apply to

 

 

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

 

 

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1    birth, current address and, for each arrest or charge not
2    initiated by arrest sought to be sealed or expunged, the
3    case number, the date of arrest (if any), the identity of
4    the arresting authority, and such other information as the
5    court may require. During the pendency of the proceeding,
6    the petitioner shall promptly notify the circuit court
7    clerk of any change of his or her address. If the
8    petitioner has received a certificate of eligibility for
9    sealing from the Prisoner Review Board under paragraph (10)
10    of subsection (a) of Section 3-3-2 of the Unified Code of
11    Corrections, the certificate shall be attached to the
12    petition.
13        (3) Drug test. The petitioner must attach to the
14    petition proof that the petitioner has passed a test taken
15    within 30 days before the filing of the petition showing
16    the absence within his or her body of all illegal
17    substances as defined by the Illinois Controlled
18    Substances Act, the Methamphetamine Control and Community
19    Protection Act, and the Cannabis Control Act if he or she
20    is petitioning to:
21            (A) seal felony records under clause (c)(2)(E);
22            (B) seal felony records for a violation of the
23        Illinois Controlled Substances Act, the
24        Methamphetamine Control and Community Protection Act,
25        or the Cannabis Control Act under clause (c)(2)(F);
26            (C) seal felony records under subsection (e-5); or

 

 

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

 

 

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

 

 

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1        (7) Hearings. If an objection is filed, the court shall
2    set a date for a hearing and notify the petitioner and all
3    parties entitled to notice of the petition of the hearing
4    date at least 30 days prior to the hearing. Prior to the
5    hearing, the State's Attorney shall consult with the
6    Department as to the appropriateness of the relief sought
7    in the petition to expunge or seal. At the hearing, the
8    court shall hear evidence on whether the petition should or
9    should not be granted, and shall grant or deny the petition
10    to expunge or seal the records based on the evidence
11    presented at the hearing. The court may consider the
12    following:
13            (A) the strength of the evidence supporting the
14        defendant's conviction;
15            (B) the reasons for retention of the conviction
16        records by the State;
17            (C) the petitioner's age, criminal record history,
18        and employment history;
19            (D) the period of time between the petitioner's
20        arrest on the charge resulting in the conviction and
21        the filing of the petition under this Section; and
22            (E) the specific adverse consequences the
23        petitioner may be subject to if the petition is denied.
24        (8) Service of order. After entering an order to
25    expunge or seal records, the court must provide copies of
26    the order to the Department, in a form and manner

 

 

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1    prescribed by the Department, to the petitioner, to the
2    State's Attorney or prosecutor charged with the duty of
3    prosecuting the offense, to the arresting agency, to the
4    chief legal officer of the unit of local government
5    effecting the arrest, and to such other criminal justice
6    agencies as may be ordered by the court.
7        (9) Implementation of order.
8            (A) Upon entry of an order to expunge records
9        pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:
10                (i) the records shall be expunged (as defined
11            in subsection (a)(1)(E)) by the arresting agency,
12            the Department, and any other agency as ordered by
13            the court, within 60 days of the date of service of
14            the order, unless a motion to vacate, modify, or
15            reconsider the order is filed pursuant to
16            paragraph (12) of subsection (d) of this Section;
17                (ii) the records of the circuit court clerk
18            shall be impounded until further order of the court
19            upon good cause shown and the name of the
20            petitioner obliterated on the official index
21            required to be kept by the circuit court clerk
22            under Section 16 of the Clerks of Courts Act, but
23            the order shall not affect any index issued by the
24            circuit court clerk before the entry of the order;
25            and
26                (iii) in response to an inquiry for expunged

 

 

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

 

 

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

 

 

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

 

 

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1            (C) Upon entry of an order to seal records under
2        subsection (c), the arresting agency, any other agency
3        as ordered by the court, the Department, and the court
4        shall seal the records (as defined in subsection
5        (a)(1)(K)). 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 existed.
10            (D) The Department shall send written notice to the
11        petitioner of its compliance with each order to expunge
12        or seal records within 60 days of the date of service
13        of that order or, if a motion to vacate, modify, or
14        reconsider is filed, within 60 days of service of the
15        order resolving the motion, if that order requires the
16        Department to expunge or seal records. In the event of
17        an appeal from the circuit court order, the Department
18        shall send written notice to the petitioner of its
19        compliance with an Appellate Court or Supreme Court
20        judgment to expunge or seal records within 60 days of
21        the issuance of the court's mandate. The notice is not
22        required while any motion to vacate, modify, or
23        reconsider, or any appeal or petition for
24        discretionary appellate review, is pending.
25            (E) Upon motion, the court may order that a sealed
26        judgment or other court record necessary to

 

 

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

 

 

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1    deposit $10 into the Circuit Court Clerk Operation and
2    Administrative Fund, to be used to offset the costs
3    incurred by the circuit court clerk in performing the
4    additional duties required to serve the petition to seal or
5    expunge on all parties. The circuit court clerk shall
6    collect and forward the Department of State Police portion
7    of the fee to the Department and it shall be deposited in
8    the State Police Services Fund. If the record brought under
9    an expungement petition was previously sealed under this
10    Section, the fee for the expungement petition for that same
11    record shall be waived.
12        (11) Final Order. No court order issued under the
13    expungement or sealing provisions of this Section shall
14    become final for purposes of appeal until 30 days after
15    service of the order on the petitioner and all parties
16    entitled to notice of the petition.
17        (12) Motion to Vacate, Modify, or Reconsider. Under
18    Section 2-1203 of the Code of Civil Procedure, the
19    petitioner or any party entitled to notice may file a
20    motion to vacate, modify, or reconsider the order granting
21    or denying the petition to expunge or seal within 60 days
22    of service of the order. If filed more than 60 days after
23    service of the order, a petition to vacate, modify, or
24    reconsider shall comply with subsection (c) of Section
25    2-1401 of the Code of Civil Procedure. Upon filing of a
26    motion to vacate, modify, or reconsider, notice of the

 

 

10100HB1438sam002- 394 -LRB101 04919 RLC 61359 a

1    motion shall be served upon the petitioner and all parties
2    entitled to notice of the petition.
3        (13) Effect of Order. An order granting a petition
4    under the expungement or sealing provisions of this Section
5    shall not be considered void because it fails to comply
6    with the provisions of this Section or because of any error
7    asserted in a motion to vacate, modify, or reconsider. The
8    circuit court retains jurisdiction to determine whether
9    the order is voidable and to vacate, modify, or reconsider
10    its terms based on a motion filed under paragraph (12) of
11    this subsection (d).
12        (14) Compliance with Order Granting Petition to Seal
13    Records. Unless a court has entered a stay of an order
14    granting a petition to seal, all parties entitled to notice
15    of the petition must fully comply with the terms of the
16    order within 60 days of service of the order even if a
17    party is seeking relief from the order through a motion
18    filed under paragraph (12) of this subsection (d) or is
19    appealing the order.
20        (15) Compliance with Order Granting Petition to
21    Expunge Records. While a party is seeking relief from the
22    order granting the petition to expunge through a motion
23    filed under paragraph (12) of this subsection (d) or is
24    appealing the order, and unless a court has entered a stay
25    of that order, the parties entitled to notice of the
26    petition must seal, but need not expunge, the records until

 

 

10100HB1438sam002- 395 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 396 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 397 -LRB101 04919 RLC 61359 a

1before the entry of the order. All records sealed by the
2Department may be disseminated by the Department only as
3required by this Act or to the arresting authority, a law
4enforcement agency, the State's Attorney, and the court upon a
5later arrest for the same or similar offense or for the purpose
6of sentencing for any subsequent felony. Upon conviction for
7any subsequent offense, the Department of Corrections shall
8have access to all sealed records of the Department pertaining
9to that individual. Upon entry of the order of sealing, the
10circuit court clerk shall promptly mail a copy of the order to
11the person who was granted the certificate of eligibility for
12sealing.
13    (e-6) Whenever a person who has been convicted of an
14offense is granted a certificate of eligibility for expungement
15by the Prisoner Review Board which specifically authorizes
16expungement, he or she may, upon verified petition to the Chief
17Judge of the circuit where the person had been convicted, any
18judge of the circuit designated by the Chief Judge, or in
19counties of less than 3,000,000 inhabitants, the presiding
20trial judge at the petitioner's trial, have a court order
21entered expunging the record of arrest from the official
22records of the arresting authority and order that the records
23of the circuit court clerk and the Department be sealed until
24further order of the court upon good cause shown or as
25otherwise provided herein, and the name of the petitioner
26obliterated from the official index requested to be kept by the

 

 

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1circuit court clerk under Section 16 of the Clerks of Courts
2Act in connection with the arrest and conviction for the
3offense for which he or she had been granted the certificate
4but the order shall not affect any index issued by the circuit
5court clerk before the entry of the order. All records sealed
6by the Department may be disseminated by the Department only as
7required by this Act or to the arresting authority, a law
8enforcement agency, the State's Attorney, and the court upon a
9later arrest for the same or similar offense or for the purpose
10of sentencing for any subsequent felony. Upon conviction for
11any subsequent offense, the Department of Corrections shall
12have access to all expunged records of the Department
13pertaining to that individual. Upon entry of the order of
14expungement, the circuit court clerk shall promptly mail a copy
15of the order to the person who was granted the certificate of
16eligibility for expungement.
17    (f) Subject to available funding, the Illinois Department
18of Corrections shall conduct a study of the impact of sealing,
19especially on employment and recidivism rates, utilizing a
20random sample of those who apply for the sealing of their
21criminal records under Public Act 93-211. At the request of the
22Illinois Department of Corrections, records of the Illinois
23Department of Employment Security shall be utilized as
24appropriate to assist in the study. The study shall not
25disclose any data in a manner that would allow the
26identification of any particular individual or employing unit.

 

 

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1The study shall be made available to the General Assembly no
2later than September 1, 2010.
3    (g) Immediate Sealing.
4        (1) Applicability. Notwithstanding any other provision
5    of this Act to the contrary, and cumulative with any rights
6    to expungement or sealing of criminal records, this
7    subsection authorizes the immediate sealing of criminal
8    records of adults and of minors prosecuted as adults.
9        (2) Eligible Records. Arrests or charges not initiated
10    by arrest resulting in acquittal or dismissal with
11    prejudice, except as excluded by subsection (a)(3)(B),
12    that occur on or after January 1, 2018 (the effective date
13    of Public Act 100-282), may be sealed immediately if the
14    petition is filed with the circuit court clerk on the same
15    day and during the same hearing in which the case is
16    disposed.
17        (3) When Records are Eligible to be Immediately Sealed.
18    Eligible records under paragraph (2) of this subsection (g)
19    may be sealed immediately after entry of the final
20    disposition of a case, notwithstanding the disposition of
21    other charges in the same case.
22        (4) Notice of Eligibility for Immediate Sealing. Upon
23    entry of a disposition for an eligible record under this
24    subsection (g), the defendant shall be informed by the
25    court of his or her right to have eligible records
26    immediately sealed and the procedure for the immediate

 

 

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

 

 

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1        shall be served on the State's Attorney in open court.
2        The petitioner shall not be required to serve a copy of
3        the petition on any other agency.
4            (E) Entry of Order. The presiding trial judge shall
5        enter an order granting or denying the petition for
6        immediate sealing during the hearing in which it is
7        filed. Petitions for immediate sealing shall be ruled
8        on in the same hearing in which the final disposition
9        of the case is entered.
10            (F) Hearings. The court shall hear the petition for
11        immediate sealing on the same day and during the same
12        hearing in which the disposition is rendered.
13            (G) Service of Order. An order to immediately seal
14        eligible records shall be served in conformance with
15        subsection (d)(8).
16            (H) Implementation of Order. An order to
17        immediately seal records shall be implemented in
18        conformance with subsections (d)(9)(C) and (d)(9)(D).
19            (I) Fees. The fee imposed by the circuit court
20        clerk and the Department of State Police shall comply
21        with paragraph (1) of subsection (d) of this Section.
22            (J) Final Order. No court order issued under this
23        subsection (g) shall become final for purposes of
24        appeal until 30 days after service of the order on the
25        petitioner and all parties entitled to service of the
26        order in conformance with subsection (d)(8).

 

 

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1            (K) Motion to Vacate, Modify, or Reconsider. Under
2        Section 2-1203 of the Code of Civil Procedure, the
3        petitioner, State's Attorney, or the Department of
4        State Police may file a motion to vacate, modify, or
5        reconsider the order denying the petition to
6        immediately seal within 60 days of service of the
7        order. If filed more than 60 days after service of the
8        order, a petition to vacate, modify, or reconsider
9        shall comply with subsection (c) of Section 2-1401 of
10        the Code of Civil Procedure.
11            (L) Effect of Order. An order granting an immediate
12        sealing petition shall not be considered void because
13        it fails to comply with the provisions of this Section
14        or because of an error asserted in a motion to vacate,
15        modify, or reconsider. The circuit court retains
16        jurisdiction to determine whether the order is
17        voidable, and to vacate, modify, or reconsider its
18        terms based on a motion filed under subparagraph (L) of
19        this subsection (g).
20            (M) Compliance with Order Granting Petition to
21        Seal Records. Unless a court has entered a stay of an
22        order granting a petition to immediately seal, all
23        parties entitled to service of the order must fully
24        comply with the terms of the order within 60 days of
25        service of the order.
26    (h) Sealing; trafficking victims.

 

 

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

 

 

10100HB1438sam002- 404 -LRB101 04919 RLC 61359 a

1    if he or she shows, by a preponderance of the evidence,
2    that: (A) he or she was a victim of human trafficking at
3    the time of the offense; and (B) that his or her
4    participation in the offense was a direct result of human
5    trafficking under Section 10-9 of the Criminal Code of 2012
6    or a severe form of trafficking under the federal
7    Trafficking Victims Protection Act.
8    (i) Minor Cannabis Offenses under the Cannabis Control Act.
9        (1) Expungement of Arrest Records of Minor Cannabis
10    Offenses.
11            (A) The Department of State Police and all law
12        enforcement agencies within the State shall
13        automatically expunge all criminal history records of
14        an arrest, charge not initiated by arrest, order of
15        supervision, or order of qualified probation for a
16        Minor Cannabis Offense committed prior to the
17        effective date of this amendatory Act of the 101st
18        General Assembly if:
19                (i) One year or more has elapsed since the date
20            of the arrest or law enforcement interaction
21            documented in the records; and
22                (ii) No criminal charges were filed relating
23            to the arrest or law enforcement interaction or
24            criminal charges were filed and subsequently
25            dismissed or vacated or the arrestee was
26            acquitted.

 

 

10100HB1438sam002- 405 -LRB101 04919 RLC 61359 a

1            (B) If the law enforcement agency is unable to
2        verify satisfaction of condition (ii) in paragraph
3        (A), records that satisfy condition (i) in paragraph
4        (A) shall be automatically expunged.
5            (C) Records shall be expunged pursuant to the
6        procedures set forth in subdivision (d)(9)(A) under
7        the following timelines:
8                (i) Records created prior to the effective
9            date of this amendatory Act of the 101st General
10            Assembly, but on or after January 1, 2013, shall be
11            automatically expunged prior to January 1, 2021;
12                (ii) Records created prior to January 1, 2013,
13            but on or after January 1, 2000, shall be
14            automatically expunged prior to January 1, 2023;
15                (iii) Records created prior to January 1, 2000
16            shall be automatically expunged prior to January
17            1, 2025.
18            (D) Nothing in this Section shall be construed to
19        restrict or modify an individual's right to have that
20        individual's records expunged except as otherwise may
21        be provided in this Act, or diminish or abrogate any
22        rights or remedies otherwise available to the
23        individual.
24        (2) Pardons Authorizing Expungement of Minor Cannabis
25    Offenses.
26            (A) Upon the effective date of this amendatory Act

 

 

10100HB1438sam002- 406 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 407 -LRB101 04919 RLC 61359 a

1            criteria established in paragraph (2)(A). Such an
2            objection must be filed within 60 days or by such
3            later date set by Prisoner Review Board in the
4            notice after the State's Attorney received notice
5            from the Prisoner Review Board.
6                (ii) In response to a written objection from a
7            State's Attorney, the Prisoner Review Board is
8            authorized to conduct a non-public hearing to
9            evaluate the information provided in the
10            objection.
11                (iii) The Prisoner Review Board shall make a
12            confidential and privileged recommendation to the
13            Governor as to whether to grant a pardon
14            authorizing expungement for each of the records
15            identified by the Department of State Police as
16            described in paragraph (2)(A).
17            (C) If an individual has been granted a pardon
18        authorizing expungement as described in this Section,
19        the Prisoner Review Board, through the Attorney
20        General, shall file a petition for expungement with the
21        Chief Judge of the circuit or any judge of the circuit
22        designated by the Chief Judge where the individual had
23        been convicted. Such petition may include more than one
24        individual. Whenever an individual who has been
25        convicted of an offense is granted a pardon by the
26        Governor that specifically authorizes expungement, an

 

 

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1        objection to the petition may not be filed. Petitions
2        to expunge under this subsection (i) may include more
3        than one individual. Within 90 days of the filing of
4        such a petition, the court shall enter an order
5        expunging the records of arrest from the official
6        records of the arresting authority and order that the
7        records of the circuit court clerk and the Department
8        of State Police be expunged and the name of the
9        defendant obliterated from the official index
10        requested to be kept by the circuit court clerk under
11        Section 16 of the Clerks of Courts Act in connection
12        with the arrest and conviction for the offense for
13        which the individual had received a pardon but the
14        order shall not affect any index issued by the circuit
15        court clerk before the entry of the order. Upon entry
16        of the order of expungement, the circuit court clerk
17        shall promptly provide a copy of the order to the
18        individual who was pardoned to the individual's last
19        known address or otherwise make available to the
20        individual upon request.
21            (D) Nothing in this Section is intended to diminish
22        or abrogate any rights or remedies otherwise available
23        to the individual.
24        (3) Any individual may file a motion to vacate and
25    expunge a conviction for a misdemeanor or Class 4 felony
26    violation of Section 4 or Section 5 of the Cannabis Control

 

 

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

 

 

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1    Control Act. Motions to vacate and expunge under this
2    subsection (i) may be filed with the circuit court, Chief
3    Judge of a judicial circuit or any judge of the circuit
4    designated by the Chief Judge, and may include more than
5    one individual. When considering such a motion to vacate
6    and expunge, a court shall consider the following: the
7    reasons to retain the records provided by law enforcement,
8    the individual's age, the individual's age at the time of
9    offense, the time since the conviction, and the specific
10    adverse consequences if denied. If the State's Attorney
11    files a motion to vacate and expunge records for Minor
12    Cannabis Offenses pursuant to this Section, the State's
13    Attorney shall notify the Prisoner Review Board within 30
14    days of such filing. If a motion to vacate and expunge is
15    granted, the records shall be expunged in accordance with
16    subparagraph (d)(9)(A) of this Section.
17        (5) In the public interest, the State's Attorney of a
18    county has standing to file motions to vacate and expunge
19    pursuant to this Section in the circuit court with
20    jurisdiction over the underlying conviction.
21        (6) If a person is arrested for a Minor Cannabis
22    Offense as defined in this Section before the effective
23    date of this amendatory Act of the 101st General Assembly
24    and the person's case is still pending but a sentence has
25    not been imposed, the person may petition the court in
26    which the charges are pending for an order to summarily

 

 

10100HB1438sam002- 411 -LRB101 04919 RLC 61359 a

1    dismiss those charges against him or her, and expunge all
2    official records of his or her arrest, plea, trial,
3    conviction, incarceration, supervision, or expungement. If
4    the court determines, upon review, that: (A) the person was
5    arrested before the effective date of this amendatory Act
6    of the 101st General Assembly for an offense that has been
7    made eligible for expungement; (B) the case is pending at
8    the time; and (C) the person has not been sentenced of the
9    minor cannabis violation eligible for expungement under
10    this subsection, the court shall consider the following:
11    the reasons to retain the records provided by law
12    enforcement, the petitioner's age, the petitioner's age at
13    the time of offense, the time since the conviction, and the
14    specific adverse consequences if denied. If a motion to
15    dismiss and expunge is granted, the records shall be
16    expunged in accordance with subparagraph (d)(9)(A) of this
17    Section.
18        (7) A person imprisoned solely as a result of one or
19    more convictions for Minor Cannabis Offenses under this
20    subsection (i) shall be released from incarceration upon
21    the issuance of an order under this subsection.
22        (8) The Department of State Police shall allow a person
23    to use the access and review process, established in the
24    Department of State Police, for verifying that his or her
25    records relating to Minor Cannabis Offenses of the Cannabis
26    Control Act eligible under this Section have been expunged.

 

 

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1        (9)No conviction vacated pursuant to this Section
2    shall serve as the basis for damages for time unjustly
3    served as provided in the Court of Claims Act.
4        (10) Effect of Expungement. A person's right to expunge
5    an expungeable offense shall not be limited under this
6    Section. The effect of an order of expungement shall be to
7    restore the person to the status he or she occupied before
8    the arrest, charge, or conviction.
9        (11) Information. The Department of State Police shall
10    post general information on its website about the
11    expungement process described in this subsection (i).
12(Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,
13eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;
1499-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.
151-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,
16eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18;
17100-863, eff. 8-14-18; revised 8-30-18.)
 
18    Section 900-15. The State Finance Act is amended by adding
19Sections 5.891, 5.892, 5.893, 5.894, and 6z-107 as follows:
 
20    (30 ILCS 105/5.891 new)
21    Sec. 5.891. The Cannabis Regulation Fund.
 
22    (30 ILCS 105/5.892 new)
23    Sec. 5.892. The Cannabis Business Development Fund.
 

 

 

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1    (30 ILCS 105/5.893 new)
2    Sec. 5.893. Local Cannabis Consumer Excise Tax Trust Fund.
 
3    (30 ILCS 105/5.894 new)
4    Sec. 5.894. Cannabis Expungement Fund.
 
5    (30 ILCS 105/6z-107 new)
6    Sec. 6z-107. The Cannabis Regulation Fund.
7    (a) There is created the Cannabis Regulation Fund in the
8State treasury, subject to appropriations unless otherwise
9provided in this Section. All moneys collected under the
10Cannabis Regulation and Tax Act shall be deposited into the
11Cannabis Regulation Fund, consisting of taxes, license fees,
12other fees, and any other amounts required to be deposited or
13transferred into the Fund.
14    (b) Whenever the Department of Revenue determines that a
15refund should be made under the Cannabis Regulation and Tax Act
16to a claimant, the Department of Revenue shall submit a voucher
17for payment to the State Comptroller, who shall cause the order
18to be drawn for the amount specified and to the person named in
19the notification from the Department of Revenue. This
20subsection (b) shall constitute an irrevocable and continuing
21appropriation of all amounts necessary for the payment of
22refunds out of the Fund as authorized under this subsection
23(b).

 

 

10100HB1438sam002- 414 -LRB101 04919 RLC 61359 a

1    (c) On or before the 25th day of each calendar month, the
2Department of Revenue shall prepare and certify to the State
3Comptroller the transfer and allocations of stated sums of
4money from the Cannabis Regulation Fund to other named funds in
5the State treasury. The amount subject to transfer shall be the
6amount of the taxes, license fees, other fees, and any other
7amounts paid into the Fund during the second preceding calendar
8month, minus the refunds made under subsection (b) during the
9second preceding calendar month by the Department. The
10transfers shall be certified as follows:
11        (1) The Department of Revenue shall first determine the
12    allocations which shall remain in the Cannabis Regulation
13    Fund, subject to appropriations, to pay for the direct and
14    indirect costs associated with the implementation,
15    administration, and enforcement of the Cannabis Regulation
16    and Tax Act by the Department of Revenue, the Department of
17    State Police, the Department of Financial and Professional
18    Regulation, the Department of Agriculture, the Department
19    of Public Health, the Department of Commerce and Economic
20    Opportunity, and the Illinois Criminal Justice Information
21    Authority.
22        (2) After the allocations have been made as provided in
23    paragraph (1) of this subsection (c), of the remainder of
24    the amount subject to transfer for the month as determined
25    in this subsection (c), the Department shall certify the
26    transfer into the Cannabis Expungement Fund 1/12 of the

 

 

10100HB1438sam002- 415 -LRB101 04919 RLC 61359 a

1    fiscal year amount appropriated from the Cannabis
2    Expungement Fund for payment of costs incurred by State
3    courts, the Attorney General, State's Attorneys, civil
4    legal aid, as defined by Section 15 of the Public Interest
5    Attorney Assistance Act, and the Department of State Police
6    to facilitate petitions for expungement of Minor Cannabis
7    Offenses pursuant to this amendatory Act of the 101st
8    General Assembly, as adjusted by any supplemental
9    appropriation, plus cumulative deficiencies in such
10    transfers for prior months.
11        (3) After the allocations have been made as provided in
12    paragraphs (1) and (2) of this subsection (c), the
13    Department of Revenue shall certify to the State
14    Comptroller and the State Treasurer shall transfer the
15    amounts that the Department of Revenue determines shall be
16    transferred into the following named funds according to the
17    following:
18            (A) 2% shall be transferred to the Drug Treatment
19        Fund to be used by the Department of Human Services
20        for: (i) developing and administering a scientifically
21        and medically accurate public education campaign
22        educating youth and adults about the health and safety
23        risks of alcohol, tobacco, illegal drug use (including
24        prescription drugs), and cannabis, including use by
25        pregnant women; and (ii) data collection and analysis
26        of the public health impacts of legalizing the

 

 

10100HB1438sam002- 416 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 417 -LRB101 04919 RLC 61359 a

1        health concerns, including treatment, education, and
2        prevention to address the negative impacts of
3        substance abuse and mental health issues, including
4        concentrated poverty, violence, and the historical
5        overuse of criminal justice responses in certain
6        communities, on the individual, family, and community,
7        including federal, State, and local governments,
8        health care institutions and providers, and
9        correctional facilities. Expenditures for these
10        purposes shall be subject to appropriations.
11            (E) 10% shall be transferred to the Budget
12        Stabilization Fund.
13            (F) 35%, or any remaining balance, shall be
14        transferred to the General Revenue Fund.
15    As soon as may be practical, but no later than 10 days
16after receipt, by the State Comptroller of the transfer
17certification provided for in this subsection (c) to be given
18to the State Comptroller by the Department of Revenue, the
19State Comptroller shall direct and the State Treasurer shall
20transfer the respective amounts in accordance with the
21directions contained in such certification.
22    (d) On July 1, 2019 the Department of Revenue shall certify
23to the State Comptroller and the State Treasurer shall transfer
24$5,000,000 from the Compassionate Use of Medical Cannabis Fund
25to the Cannabis Regulation Fund.
26    (e) Notwithstanding any other law to the contrary and

 

 

10100HB1438sam002- 418 -LRB101 04919 RLC 61359 a

1except as otherwise provided in this Section, this Fund is not
2subject to sweeps, administrative charge-backs, or any other
3fiscal or budgetary maneuver that would in any way transfer any
4amounts from this Fund into any other fund of the State.
5    (f) The Cannabis Regulation Fund shall retain a balance of
6$1,000,000 for the purposes of administrative costs.
7    (g) In Fiscal Year 2024 the allocations in subsection (c)
8of this Section shall be reviewed and adjusted if the General
9Assembly finds there is a greater need for funding for a
10specific purpose in the State as it relates to this amendatory
11Act of the 101st General Assembly.
 
12    Section 900-15.5. The Illinois Procurement Code is amended
13by changing Section 1-10 as follows:
 
14    (30 ILCS 500/1-10)
15    Sec. 1-10. Application.
16    (a) This Code applies only to procurements for which
17bidders, offerors, potential contractors, or contractors were
18first solicited on or after July 1, 1998. This Code shall not
19be construed to affect or impair any contract, or any provision
20of a contract, entered into based on a solicitation prior to
21the implementation date of this Code as described in Article
2299, including but not limited to any covenant entered into with
23respect to any revenue bonds or similar instruments. All
24procurements for which contracts are solicited between the

 

 

10100HB1438sam002- 419 -LRB101 04919 RLC 61359 a

1effective date of Articles 50 and 99 and July 1, 1998 shall be
2substantially in accordance with this Code and its intent.
3    (b) This Code shall apply regardless of the source of the
4funds with which the contracts are paid, including federal
5assistance moneys. This Code shall not apply to:
6        (1) Contracts between the State and its political
7    subdivisions or other governments, or between State
8    governmental bodies, except as specifically provided in
9    this Code.
10        (2) Grants, except for the filing requirements of
11    Section 20-80.
12        (3) Purchase of care, except as provided in Section
13    5-30.6 of the Illinois Public Aid Code and this Section.
14        (4) Hiring of an individual as employee and not as an
15    independent contractor, whether pursuant to an employment
16    code or policy or by contract directly with that
17    individual.
18        (5) Collective bargaining contracts.
19        (6) Purchase of real estate, except that notice of this
20    type of contract with a value of more than $25,000 must be
21    published in the Procurement Bulletin within 10 calendar
22    days after the deed is recorded in the county of
23    jurisdiction. The notice shall identify the real estate
24    purchased, the names of all parties to the contract, the
25    value of the contract, and the effective date of the
26    contract.

 

 

10100HB1438sam002- 420 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 421 -LRB101 04919 RLC 61359 a

1    50-35, and 50-37 of this Code, as well as the final
2    approval by the Board of the Illinois Finance Authority of
3    the terms of the contract.
4        (13) Contracts for services, commodities, and
5    equipment to support the delivery of timely forensic
6    science services in consultation with and subject to the
7    approval of the Chief Procurement Officer as provided in
8    subsection (d) of Section 5-4-3a of the Unified Code of
9    Corrections, except for the requirements of Sections
10    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
11    Code; however, the Chief Procurement Officer may, in
12    writing with justification, waive any certification
13    required under Article 50 of this Code. For any contracts
14    for services which are currently provided by members of a
15    collective bargaining agreement, the applicable terms of
16    the collective bargaining agreement concerning
17    subcontracting shall be followed.
18        On and after January 1, 2019, this paragraph (13),
19    except for this sentence, is inoperative.
20        (14) Contracts for participation expenditures required
21    by a domestic or international trade show or exhibition of
22    an exhibitor, member, or sponsor.
23        (15) Contracts with a railroad or utility that requires
24    the State to reimburse the railroad or utilities for the
25    relocation of utilities for construction or other public
26    purpose. Contracts included within this paragraph (15)

 

 

10100HB1438sam002- 422 -LRB101 04919 RLC 61359 a

1    shall include, but not be limited to, those associated
2    with: relocations, crossings, installations, and
3    maintenance. For the purposes of this paragraph (15),
4    "railroad" means any form of non-highway ground
5    transportation that runs on rails or electromagnetic
6    guideways and "utility" means: (1) public utilities as
7    defined in Section 3-105 of the Public Utilities Act, (2)
8    telecommunications carriers as defined in Section 13-202
9    of the Public Utilities Act, (3) electric cooperatives as
10    defined in Section 3.4 of the Electric Supplier Act, (4)
11    telephone or telecommunications cooperatives as defined in
12    Section 13-212 of the Public Utilities Act, (5) rural water
13    or waste water systems with 10,000 connections or less, (6)
14    a holder as defined in Section 21-201 of the Public
15    Utilities Act, and (7) municipalities owning or operating
16    utility systems consisting of public utilities as that term
17    is defined in Section 11-117-2 of the Illinois Municipal
18    Code.
19        (16) Procurement expenditures necessary for the
20    Department of Public Health to provide the delivery of
21    timely newborn screening services in accordance with the
22    Newborn Metabolic Screening Act.
23        (17) (16) Procurement expenditures necessary for the
24    Department of Agriculture, the Department of Financial and
25    Professional Regulation, the Department of Human Services,
26    and the Department of Public Health to implement the

 

 

10100HB1438sam002- 423 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 424 -LRB101 04919 RLC 61359 a

1    Each agency shall provide the Chief Procurement Officer, on
2    a monthly basis, in the form and content prescribed by the
3    Chief Procurement Officer, a report of contracts that are
4    related to the procurement of goods and services identified
5    in this subsection. At a minimum, this report shall include
6    the name of the contractor, a description of the supply or
7    service provided, the total amount of the contract, the
8    term of the contract, and the exception to this Code
9    utilized. A copy of any or all of these contracts shall be
10    made available to the Chief Procurement Officer
11    immediately upon request. The Chief Procurement Officer
12    shall submit a report to the Governor and General Assembly
13    no later than November 1 of each year that includes, at a
14    minimum, an annual summary of the monthly information
15    reported to the Chief Procurement Officer. This exemption
16    becomes inoperative 5 years after the effective date of
17    this amendatory Act of the 101st General Assembly.
18    Notwithstanding any other provision of law, for contracts
19entered into on or after October 1, 2017 under an exemption
20provided in any paragraph of this subsection (b), except
21paragraph (1), (2), or (5), each State agency shall post to the
22appropriate procurement bulletin the name of the contractor, a
23description of the supply or service provided, the total amount
24of the contract, the term of the contract, and the exception to
25the Code utilized. The chief procurement officer shall submit a
26report to the Governor and General Assembly no later than

 

 

10100HB1438sam002- 425 -LRB101 04919 RLC 61359 a

1November 1 of each year that shall include, at a minimum, an
2annual summary of the monthly information reported to the chief
3procurement officer.
4    (c) This Code does not apply to the electric power
5procurement process provided for under Section 1-75 of the
6Illinois Power Agency Act and Section 16-111.5 of the Public
7Utilities Act.
8    (d) Except for Section 20-160 and Article 50 of this Code,
9and as expressly required by Section 9.1 of the Illinois
10Lottery Law, the provisions of this Code do not apply to the
11procurement process provided for under Section 9.1 of the
12Illinois Lottery Law.
13    (e) This Code does not apply to the process used by the
14Capital Development Board to retain a person or entity to
15assist the Capital Development Board with its duties related to
16the determination of costs of a clean coal SNG brownfield
17facility, as defined by Section 1-10 of the Illinois Power
18Agency Act, as required in subsection (h-3) of Section 9-220 of
19the Public Utilities Act, including calculating the range of
20capital costs, the range of operating and maintenance costs, or
21the sequestration costs or monitoring the construction of clean
22coal SNG brownfield facility for the full duration of
23construction.
24    (f) (Blank).
25    (g) (Blank).
26    (h) This Code does not apply to the process to procure or

 

 

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1contracts entered into in accordance with Sections 11-5.2 and
211-5.3 of the Illinois Public Aid Code.
3    (i) Each chief procurement officer may access records
4necessary to review whether a contract, purchase, or other
5expenditure is or is not subject to the provisions of this
6Code, unless such records would be subject to attorney-client
7privilege.
8    (j) This Code does not apply to the process used by the
9Capital Development Board to retain an artist or work or works
10of art as required in Section 14 of the Capital Development
11Board Act.
12    (k) This Code does not apply to the process to procure
13contracts, or contracts entered into, by the State Board of
14Elections or the State Electoral Board for hearing officers
15appointed pursuant to the Election Code.
16    (l) This Code does not apply to the processes used by the
17Illinois Student Assistance Commission to procure supplies and
18services paid for from the private funds of the Illinois
19Prepaid Tuition Fund. As used in this subsection (l), "private
20funds" means funds derived from deposits paid into the Illinois
21Prepaid Tuition Trust Fund and the earnings thereon.
22(Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17;
23100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff.
248-28-18; revised 10-18-18.)
 
25    Section 900-16. The Use Tax Act is amended by changing

 

 

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1Section 9 as follows:
 
2    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
3    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
4and trailers that are required to be registered with an agency
5of this State, each retailer required or authorized to collect
6the tax imposed by this Act shall pay to the Department the
7amount of such tax (except as otherwise provided) at the time
8when he is required to file his return for the period during
9which such tax was collected, less a discount of 2.1% prior to
10January 1, 1990, and 1.75% on and after January 1, 1990, or $5
11per calendar year, whichever is greater, which is allowed to
12reimburse the retailer for expenses incurred in collecting the
13tax, keeping records, preparing and filing returns, remitting
14the tax and supplying data to the Department on request. In the
15case of retailers who report and pay the tax on a transaction
16by transaction basis, as provided in this Section, such
17discount shall be taken with each such tax remittance instead
18of when such retailer files his periodic return. The discount
19allowed under this Section is allowed only for returns that are
20filed in the manner required by this Act. The Department may
21disallow the discount for retailers whose certificate of
22registration is revoked at the time the return is filed, but
23only if the Department's decision to revoke the certificate of
24registration has become final. A retailer need not remit that
25part of any tax collected by him to the extent that he is

 

 

10100HB1438sam002- 428 -LRB101 04919 RLC 61359 a

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

 

 

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

 

 

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

 

 

10100HB1438sam002- 431 -LRB101 04919 RLC 61359 a

1divided by 12. Beginning on October 1, 2002, a taxpayer who has
2a tax liability in the amount set forth in subsection (b) of
3Section 2505-210 of the Department of Revenue Law shall make
4all payments required by rules of the Department by electronic
5funds transfer.
6    Before August 1 of each year beginning in 1993, the
7Department shall notify all taxpayers required to make payments
8by electronic funds transfer. All taxpayers required to make
9payments by electronic funds transfer shall make those payments
10for a minimum of one year beginning on October 1.
11    Any taxpayer not required to make payments by electronic
12funds transfer may make payments by electronic funds transfer
13with the permission of the Department.
14    All taxpayers required to make payment by electronic funds
15transfer and any taxpayers authorized to voluntarily make
16payments by electronic funds transfer shall make those payments
17in the manner authorized by the Department.
18    The Department shall adopt such rules as are necessary to
19effectuate a program of electronic funds transfer and the
20requirements of this Section.
21    Before October 1, 2000, if the taxpayer's average monthly
22tax liability to the Department under this Act, the Retailers'
23Occupation Tax Act, the Service Occupation Tax Act, the Service
24Use Tax Act was $10,000 or more during the preceding 4 complete
25calendar quarters, he shall file a return with the Department
26each month by the 20th day of the month next following the

 

 

10100HB1438sam002- 432 -LRB101 04919 RLC 61359 a

1month during which such tax liability is incurred and shall
2make payments to the Department on or before the 7th, 15th,
322nd and last day of the month during which such liability is
4incurred. On and after October 1, 2000, if the taxpayer's
5average monthly tax liability to the Department under this Act,
6the Retailers' Occupation Tax Act, the Service Occupation Tax
7Act, and the Service Use Tax Act was $20,000 or more during the
8preceding 4 complete calendar quarters, he shall file a return
9with the Department each month by the 20th day of the month
10next following the month during which such tax liability is
11incurred and shall make payment to the Department on or before
12the 7th, 15th, 22nd and last day of the month during which such
13liability is incurred. If the month during which such tax
14liability is incurred began prior to January 1, 1985, each
15payment shall be in an amount equal to 1/4 of the taxpayer's
16actual liability for the month or an amount set by the
17Department not to exceed 1/4 of the average monthly liability
18of the taxpayer to the Department for the preceding 4 complete
19calendar quarters (excluding the month of highest liability and
20the month of lowest liability in such 4 quarter period). If the
21month during which such tax liability is incurred begins on or
22after January 1, 1985, and prior to January 1, 1987, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 27.5% 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

 

 

10100HB1438sam002- 433 -LRB101 04919 RLC 61359 a

1or after January 1, 1987, and prior to January 1, 1988, each
2payment shall be in an amount equal to 22.5% of the taxpayer's
3actual liability for the month or 26.25% 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, 1988, and prior to January 1, 1989, or
7begins on or after 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. If the month during which
11such tax liability is incurred begins on or after January 1,
121989, and prior to 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 or 100% of the taxpayer's
16actual liability for the quarter monthly reporting period. The
17amount of such quarter monthly payments shall be credited
18against the final tax liability of the taxpayer's return for
19that month. Before October 1, 2000, once applicable, the
20requirement of the making of quarter monthly payments to the
21Department shall continue until such taxpayer's average
22monthly liability to the Department during the preceding 4
23complete calendar quarters (excluding the month of highest
24liability and the month of lowest liability) is less than
25$9,000, or until such taxpayer's average monthly liability to
26the Department as computed for each calendar quarter of the 4

 

 

10100HB1438sam002- 434 -LRB101 04919 RLC 61359 a

1preceding complete calendar quarter period is less than
2$10,000. However, if a taxpayer can show the Department that a
3substantial change in the taxpayer's business has occurred
4which causes the taxpayer to anticipate that his average
5monthly tax liability for the reasonably foreseeable future
6will fall below the $10,000 threshold stated above, then such
7taxpayer may petition the Department for change in such
8taxpayer's reporting status. On and after October 1, 2000, once
9applicable, the requirement of the making of quarter monthly
10payments to the Department shall continue until such taxpayer's
11average monthly liability to the Department during the
12preceding 4 complete calendar quarters (excluding the month of
13highest liability and the month of lowest liability) is less
14than $19,000 or until such taxpayer's average monthly liability
15to the Department as computed for each calendar quarter of the
164 preceding complete calendar quarter period is less than
17$20,000. However, if a taxpayer can show the Department that a
18substantial change in the taxpayer's business has occurred
19which causes the taxpayer to anticipate that his average
20monthly tax liability for the reasonably foreseeable future
21will fall below the $20,000 threshold stated above, then such
22taxpayer may petition the Department for a change in such
23taxpayer's reporting status. The Department shall change such
24taxpayer's reporting status unless it finds that such change is
25seasonal in nature and not likely to be long term. If any such
26quarter monthly payment is not paid at the time or in the

 

 

10100HB1438sam002- 435 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 436 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 437 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 438 -LRB101 04919 RLC 61359 a

1to a purchaser for use as a qualifying rolling stock as
2provided in Section 3-55 of this Act, then that seller may
3report the transfer of all the aircraft, watercraft, motor
4vehicles or trailers involved in that transaction to the
5Department on the same uniform invoice-transaction reporting
6return form. For purposes of this Section, "watercraft" means a
7Class 2, Class 3, or Class 4 watercraft as defined in Section
83-2 of the Boat Registration and Safety Act, a personal
9watercraft, or any boat equipped with an inboard motor.
10    In addition, with respect to motor vehicles, watercraft,
11aircraft, and trailers that are required to be registered with
12an agency of this State, every person who is engaged in the
13business of leasing or renting such items and who, in
14connection with such business, sells any such item to a
15retailer for the purpose of resale is, notwithstanding any
16other provision of this Section to the contrary, authorized to
17meet the return-filing requirement of this Act by reporting the
18transfer of all the aircraft, watercraft, motor vehicles, or
19trailers transferred for resale during a month to the
20Department on the same uniform invoice-transaction reporting
21return form on or before the 20th of the month following the
22month in which the transfer takes place. Notwithstanding any
23other provision of this Act to the contrary, all returns filed
24under this paragraph must be filed by electronic means in the
25manner and form as required by the Department.
26    The transaction reporting return in the case of motor

 

 

10100HB1438sam002- 439 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 440 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 441 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 442 -LRB101 04919 RLC 61359 a

1the Department and obtain his tax receipt or exemption
2determination, in which event the transaction reporting return
3and tax remittance (if a tax payment was required) shall be
4credited by the Department to the proper retailer's account
5with the Department, but without the 2.1% or 1.75% discount
6provided for in this Section being allowed. When the user pays
7the tax directly to the Department, he shall pay the tax in the
8same amount and in the same form in which it would be remitted
9if the tax had been remitted to the Department by the retailer.
10    Where a retailer collects the tax with respect to the
11selling price of tangible personal property which he sells and
12the purchaser thereafter returns such tangible personal
13property and the retailer refunds the selling price thereof to
14the purchaser, such retailer shall also refund, to the
15purchaser, the tax so collected from the purchaser. When filing
16his return for the period in which he refunds such tax to the
17purchaser, the retailer may deduct the amount of the tax so
18refunded by him to the purchaser from any other use tax which
19such retailer may be required to pay or remit to the
20Department, as shown by such return, if the amount of the tax
21to be deducted was previously remitted to the Department by
22such retailer. If the retailer has not previously remitted the
23amount of such tax to the Department, he is entitled to no
24deduction under this Act upon refunding such tax to the
25purchaser.
26    Any retailer filing a return under this Section shall also

 

 

10100HB1438sam002- 443 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 444 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 445 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 446 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 447 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 448 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 449 -LRB101 04919 RLC 61359 a

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000
262007119,000,000

 

 

10100HB1438sam002- 450 -LRB101 04919 RLC 61359 a

12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021246,000,000
152022260,000,000
162023275,000,000
172024 275,000,000
182025 275,000,000
192026 279,000,000
202027 292,000,000
212028 307,000,000
222029 322,000,000
232030 338,000,000
242031 350,000,000
252032 350,000,000
26and

 

 

10100HB1438sam002- 451 -LRB101 04919 RLC 61359 a

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total Deposit",
20has been deposited.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning July 1, 1993 and ending on September 30,
252013, the Department shall each month pay into the Illinois Tax
26Increment Fund 0.27% of 80% of the net revenue realized for the

 

 

10100HB1438sam002- 452 -LRB101 04919 RLC 61359 a

1preceding month from the 6.25% general rate on the selling
2price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning with the receipt of the first report of
7taxes paid by an eligible business and continuing for a 25-year
8period, the Department shall each month pay into the Energy
9Infrastructure Fund 80% of the net revenue realized from the
106.25% general rate on the selling price of Illinois-mined coal
11that was sold to an eligible business. For purposes of this
12paragraph, the term "eligible business" means a new electric
13generating facility certified pursuant to Section 605-332 of
14the Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    Subject to payment of amounts into the Build Illinois Fund,
17the McCormick Place Expansion Project Fund, the Illinois Tax
18Increment Fund, and the Energy Infrastructure Fund pursuant to
19the preceding paragraphs or in any amendments to this Section
20hereafter enacted, beginning on the first day of the first
21calendar month to occur on or after August 26, 2014 (the
22effective date of Public Act 98-1098), each month, from the
23collections made under Section 9 of the Use Tax Act, Section 9
24of the Service Use Tax Act, Section 9 of the Service Occupation
25Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
26the Department shall pay into the Tax Compliance and

 

 

10100HB1438sam002- 453 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 454 -LRB101 04919 RLC 61359 a

1equal to 1.7% of 80% of the net revenue realized under this Act
2for the second preceding month. Beginning April 1, 2000, this
3transfer is no longer required and shall not be made.
4    Net revenue realized for a month shall be the revenue
5collected by the State pursuant to this Act, less the amount
6paid out during that month as refunds to taxpayers for
7overpayment of liability.
8    For greater simplicity of administration, manufacturers,
9importers and wholesalers whose products are sold at retail in
10Illinois by numerous retailers, and who wish to do so, may
11assume the responsibility for accounting and paying to the
12Department all tax accruing under this Act with respect to such
13sales, if the retailers who are affected do not make written
14objection to the Department to this arrangement.
15(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1699-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
177-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
18    Section 900-17. The Service Use Tax Act is amended by
19changing Section 9 as follows:
 
20    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
21    Sec. 9. Each serviceman required or authorized to collect
22the tax herein imposed shall pay to the Department the amount
23of such tax (except as otherwise provided) at the time when he
24is required to file his return for the period during which such

 

 

10100HB1438sam002- 455 -LRB101 04919 RLC 61359 a

1tax was collected, less a discount of 2.1% prior to January 1,
21990 and 1.75% on and after January 1, 1990, or $5 per calendar
3year, whichever is greater, which is allowed to reimburse the
4serviceman for expenses incurred in collecting the tax, keeping
5records, preparing and filing returns, remitting the tax and
6supplying data to the Department on request. The discount
7allowed under this Section is allowed only for returns that are
8filed in the manner required by this Act. The Department may
9disallow the discount for servicemen whose certificate of
10registration is revoked at the time the return is filed, but
11only if the Department's decision to revoke the certificate of
12registration has become final. A serviceman need not remit that
13part of any tax collected by him to the extent that he is
14required to pay and does pay the tax imposed by the Service
15Occupation Tax Act with respect to his sale of service
16involving the incidental transfer by him of the same property.
17    Except as provided hereinafter in this Section, on or
18before the twentieth day of each calendar month, such
19serviceman shall file a return for the preceding calendar month
20in accordance with reasonable Rules and Regulations to be
21promulgated by the Department. Such return shall be filed on a
22form prescribed by the Department and shall contain such
23information as the Department may reasonably require. On and
24after January 1, 2018, with respect to servicemen whose annual
25gross receipts average $20,000 or more, all returns required to
26be filed pursuant to this Act shall be filed electronically.

 

 

10100HB1438sam002- 456 -LRB101 04919 RLC 61359 a

1Servicemen who demonstrate that they do not have access to the
2Internet or demonstrate hardship in filing electronically may
3petition the Department to waive the electronic filing
4requirement.
5    The Department may require returns to be filed on a
6quarterly basis. If so required, a return for each calendar
7quarter shall be filed on or before the twentieth day of the
8calendar month following the end of such calendar quarter. The
9taxpayer shall also file a return with the Department for each
10of the first two months of each calendar quarter, on or before
11the twentieth day of the following calendar month, stating:
12        1. The name of the seller;
13        2. The address of the principal place of business from
14    which he engages in business as a serviceman in this State;
15        3. The total amount of taxable receipts received by him
16    during the preceding calendar month, including receipts
17    from charge and time sales, but less all deductions allowed
18    by law;
19        4. The amount of credit provided in Section 2d of this
20    Act;
21        5. The amount of tax due;
22        5-5. The signature of the taxpayer; and
23        6. Such other reasonable information as the Department
24    may require.
25    If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

 

 

10100HB1438sam002- 457 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 458 -LRB101 04919 RLC 61359 a

1Department, for the immediately preceding calendar year
2divided by 12. Beginning on October 1, 2002, a taxpayer who has
3a tax liability in the amount set forth in subsection (b) of
4Section 2505-210 of the Department of Revenue Law shall make
5all payments required by rules of the Department by electronic
6funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make payments
9by electronic funds transfer. All taxpayers required to make
10payments by electronic funds transfer shall make those payments
11for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those payments
18in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    If the serviceman is otherwise required to file a monthly
23return and if the serviceman's average monthly tax liability to
24the Department does not exceed $200, the Department may
25authorize his returns to be filed on a quarter annual basis,
26with the return for January, February and March of a given year

 

 

10100HB1438sam002- 459 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 460 -LRB101 04919 RLC 61359 a

1also refund, to the purchaser, the tax so collected from the
2purchaser. When filing his return for the period in which he
3refunds such tax to the purchaser, the serviceman may deduct
4the amount of the tax so refunded by him to the purchaser from
5any other Service Use Tax, Service Occupation Tax, retailers'
6occupation tax or use tax which such serviceman may be required
7to pay or remit to the Department, as shown by such return,
8provided that the amount of the tax to be deducted shall
9previously have been remitted to the Department by such
10serviceman. If the serviceman shall not previously have
11remitted the amount of such tax to the Department, he shall be
12entitled to no deduction hereunder upon refunding such tax to
13the purchaser.
14    Any serviceman filing a return hereunder shall also include
15the total tax upon the selling price of tangible personal
16property purchased for use by him as an incident to a sale of
17service, and such serviceman shall remit the amount of such tax
18to the Department when filing such return.
19    If experience indicates such action to be practicable, the
20Department may prescribe and furnish a combination or joint
21return which will enable servicemen, who are required to file
22returns hereunder and also under the Service Occupation Tax
23Act, to furnish all the return information required by both
24Acts on the one form.
25    Where the serviceman has more than one business registered
26with the Department under separate registration hereunder,

 

 

10100HB1438sam002- 461 -LRB101 04919 RLC 61359 a

1such serviceman shall not file each return that is due as a
2single return covering all such registered businesses, but
3shall file separate returns for each such registered business.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Tax Reform Fund, a special fund in
6the State Treasury, the net revenue realized for the preceding
7month from the 1% tax imposed under this Act.
8    Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 20% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on transfers of tangible personal property, other
12than tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by an agency of this State's government.
15    Beginning August 1, 2000, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund 100% of the
17net revenue realized for the preceding month from the 1.25%
18rate on the selling price of motor fuel and gasohol.
19    Beginning October 1, 2009, each month the Department shall
20pay into the Capital Projects Fund an amount that is equal to
21an amount estimated by the Department to represent 80% of the
22net revenue realized for the preceding month from the sale of
23candy, grooming and hygiene products, and soft drinks that had
24been taxed at a rate of 1% prior to September 1, 2009 but that
25are now taxed at 6.25%.
26    Beginning July 1, 2013, each month the Department shall pay

 

 

10100HB1438sam002- 462 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 463 -LRB101 04919 RLC 61359 a

1to be paid into the Build Illinois Fund pursuant to Section 3
2of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
3Act, Section 9 of the Service Use Tax Act, and Section 9 of the
4Service Occupation Tax Act, such Acts being hereinafter called
5the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
6may be, of moneys being hereinafter called the "Tax Act
7Amount", and (2) the amount transferred to the Build Illinois
8Fund from the State and Local Sales Tax Reform Fund shall be
9less than the Annual Specified Amount (as defined in Section 3
10of the Retailers' Occupation Tax Act), an amount equal to the
11difference shall be immediately paid into the Build Illinois
12Fund from other moneys received by the Department pursuant to
13the Tax Acts; and further provided, that if on the last
14business day of any month the sum of (1) the Tax Act Amount
15required to be deposited into the Build Illinois Bond Account
16in the Build Illinois Fund during such month and (2) the amount
17transferred during such month to the Build Illinois Fund from
18the State and Local Sales Tax Reform Fund shall have been less
19than 1/12 of the Annual Specified Amount, an amount equal to
20the difference shall be immediately paid into the Build
21Illinois Fund from other moneys received by the Department
22pursuant to the Tax Acts; and, further provided, that in no
23event shall the payments required under the preceding proviso
24result in aggregate payments into the Build Illinois Fund
25pursuant to this clause (b) for any fiscal year in excess of
26the greater of (i) the Tax Act Amount or (ii) the Annual

 

 

10100HB1438sam002- 464 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 465 -LRB101 04919 RLC 61359 a

1preceding sentence and shall reduce the amount otherwise
2payable for such fiscal year pursuant to clause (b) of the
3preceding sentence. The moneys received by the Department
4pursuant to this Act and required to be deposited into the
5Build Illinois Fund are subject to the pledge, claim and charge
6set forth in Section 12 of the Build Illinois Bond Act.
7    Subject to payment of amounts into the Build Illinois Fund
8as provided in the preceding paragraph or in any amendment
9thereto hereafter enacted, the following specified monthly
10installment of the amount requested in the certificate of the
11Chairman of the Metropolitan Pier and Exposition Authority
12provided under Section 8.25f of the State Finance Act, but not
13in excess of the sums designated as "Total Deposit", shall be
14deposited in the aggregate from collections under Section 9 of
15the Use Tax Act, Section 9 of the Service Use Tax Act, Section
169 of the Service Occupation Tax Act, and Section 3 of the
17Retailers' Occupation Tax Act into the McCormick Place
18Expansion Project Fund in the specified fiscal years.
19Fiscal YearTotal Deposit
201993         $0
211994 53,000,000
221995 58,000,000
231996 61,000,000
241997 64,000,000
251998 68,000,000

 

 

10100HB1438sam002- 466 -LRB101 04919 RLC 61359 a

11999 71,000,000
22000 75,000,000
32001 80,000,000
42002 93,000,000
52003 99,000,000
62004103,000,000
72005108,000,000
82006113,000,000
92007119,000,000
102008126,000,000
112009132,000,000
122010139,000,000
132011146,000,000
142012153,000,000
152013161,000,000
162014170,000,000
172015179,000,000
182016189,000,000
192017199,000,000
202018210,000,000
212019221,000,000
222020233,000,000
232021246,000,000
242022260,000,000
252023275,000,000
262024 275,000,000

 

 

10100HB1438sam002- 467 -LRB101 04919 RLC 61359 a

12025 275,000,000
22026 279,000,000
32027 292,000,000
42028 307,000,000
52029 322,000,000
62030 338,000,000
72031 350,000,000
82032 350,000,000
9and
10each fiscal year
11thereafter that bonds
12are outstanding under
13Section 13.2 of the
14Metropolitan Pier and
15Exposition Authority Act,
16but not after fiscal year 2060.
17    Beginning July 20, 1993 and in each month of each fiscal
18year thereafter, one-eighth of the amount requested in the
19certificate of the Chairman of the Metropolitan Pier and
20Exposition Authority for that fiscal year, less the amount
21deposited into the McCormick Place Expansion Project Fund by
22the State Treasurer in the respective month under subsection
23(g) of Section 13 of the Metropolitan Pier and Exposition
24Authority Act, plus cumulative deficiencies in the deposits
25required under this Section for previous months and years,
26shall be deposited into the McCormick Place Expansion Project

 

 

10100HB1438sam002- 468 -LRB101 04919 RLC 61359 a

1Fund, until the full amount requested for the fiscal year, but
2not in excess of the amount specified above as "Total Deposit",
3has been deposited.
4    Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning July 1, 1993 and ending on September 30,
82013, the Department shall each month pay into the Illinois Tax
9Increment Fund 0.27% of 80% of the net revenue realized for the
10preceding month from the 6.25% general rate on the selling
11price of tangible personal property.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning with the receipt of the first report of
16taxes paid by an eligible business and continuing for a 25-year
17period, the Department shall each month pay into the Energy
18Infrastructure Fund 80% of the net revenue realized from the
196.25% general rate on the selling price of Illinois-mined coal
20that was sold to an eligible business. For purposes of this
21paragraph, the term "eligible business" means a new electric
22generating facility certified pursuant to Section 605-332 of
23the Department of Commerce and Economic Opportunity Law of the
24Civil Administrative Code of Illinois.
25    Subject to payment of amounts into the Build Illinois Fund,
26the McCormick Place Expansion Project Fund, the Illinois Tax

 

 

10100HB1438sam002- 469 -LRB101 04919 RLC 61359 a

1Increment Fund, and the Energy Infrastructure Fund pursuant to
2the preceding paragraphs or in any amendments to this Section
3hereafter enacted, beginning on the first day of the first
4calendar month to occur on or after August 26, 2014 (the
5effective date of Public Act 98-1098), each month, from the
6collections made under Section 9 of the Use Tax Act, Section 9
7of the Service Use Tax Act, Section 9 of the Service Occupation
8Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
9the Department shall pay into the Tax Compliance and
10Administration Fund, to be used, subject to appropriation, to
11fund additional auditors and compliance personnel at the
12Department of Revenue, an amount equal to 1/12 of 5% of 80% of
13the cash receipts collected during the preceding fiscal year by
14the Audit Bureau of the Department under the Use Tax Act, the
15Service Use Tax Act, the Service Occupation Tax Act, the
16Retailers' Occupation Tax Act, and associated local occupation
17and use taxes administered by the Department.
18    Subject to payments of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
21Compliance and Administration Fund as provided in this Section,
22beginning on July 1, 2018 the Department shall pay each month
23into the Downstate Public Transportation Fund the moneys
24required to be so paid under Section 2-3 of the Downstate
25Public Transportation Act.
26    Of the remainder of the moneys received by the Department

 

 

10100HB1438sam002- 470 -LRB101 04919 RLC 61359 a

1pursuant to this Act, 75% thereof shall be paid into the
2General Revenue Fund of the State Treasury and 25% shall be
3reserved in a special account and used only for the transfer to
4the Common School Fund as part of the monthly transfer from the
5General Revenue Fund in accordance with Section 8a of the State
6Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
19100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
208-14-18; 100-1171, eff. 1-4-19.)
 
21    Section 900-18. The Service Occupation Tax Act is amended
22by changing Section 9 as follows:
 
23    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
24    Sec. 9. Each serviceman required or authorized to collect

 

 

10100HB1438sam002- 471 -LRB101 04919 RLC 61359 a

1the tax herein imposed shall pay to the Department the amount
2of such tax at the time when he is required to file his return
3for the period during which such tax was collectible, less a
4discount of 2.1% prior to January 1, 1990, and 1.75% on and
5after January 1, 1990, or $5 per calendar year, whichever is
6greater, which is allowed to reimburse the serviceman for
7expenses incurred in collecting the tax, keeping records,
8preparing and filing returns, remitting the tax and supplying
9data to the Department on request. The discount allowed under
10this Section is allowed only for returns that are filed in the
11manner required by this Act. The Department may disallow the
12discount for servicemen whose certificate of registration is
13revoked at the time the return is filed, but only if the
14Department's decision to revoke the certificate of
15registration has become final.
16    Where such tangible personal property is sold under a
17conditional sales contract, or under any other form of sale
18wherein the payment of the principal sum, or a part thereof, is
19extended beyond the close of the period for which the return is
20filed, the serviceman, in collecting the tax may collect, for
21each tax return period, only the tax applicable to the part of
22the selling price actually received during such tax return
23period.
24    Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such
26serviceman shall file a return for the preceding calendar month

 

 

10100HB1438sam002- 472 -LRB101 04919 RLC 61359 a

1in accordance with reasonable rules and regulations to be
2promulgated by the Department of Revenue. Such return shall be
3filed on a form prescribed by the Department and shall contain
4such information as the Department may reasonably require. On
5and after January 1, 2018, with respect to servicemen whose
6annual gross receipts average $20,000 or more, all returns
7required to be filed pursuant to this Act shall be filed
8electronically. Servicemen who demonstrate that they do not
9have access to the Internet or demonstrate hardship in filing
10electronically may petition the Department to waive the
11electronic filing requirement.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in business as a serviceman in this State;
22        3. The total amount of taxable receipts received by him
23    during the preceding calendar month, including receipts
24    from charge and time sales, but less all deductions allowed
25    by law;
26        4. The amount of credit provided in Section 2d of this

 

 

10100HB1438sam002- 473 -LRB101 04919 RLC 61359 a

1    Act;
2        5. The amount of tax due;
3        5-5. The signature of the taxpayer; and
4        6. Such other reasonable information as the Department
5    may require.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Notwithstanding any other provision of this Act to the
11contrary, servicemen subject to tax on cannabis shall file all
12cannabis tax returns and shall make all cannabis tax payments
13by electronic means in the manner and form required by the
14Department.
15    Prior to October 1, 2003, and on and after September 1,
162004 a serviceman may accept a Manufacturer's Purchase Credit
17certification from a purchaser in satisfaction of Service Use
18Tax as provided in Section 3-70 of the Service Use Tax Act if
19the purchaser provides the appropriate documentation as
20required by Section 3-70 of the Service Use Tax Act. A
21Manufacturer's Purchase Credit certification, accepted prior
22to October 1, 2003 or on or after September 1, 2004 by a
23serviceman as provided in Section 3-70 of the Service Use Tax
24Act, may be used by that serviceman to satisfy Service
25Occupation Tax liability in the amount claimed in the
26certification, not to exceed 6.25% of the receipts subject to

 

 

10100HB1438sam002- 474 -LRB101 04919 RLC 61359 a

1tax from a qualifying purchase. A Manufacturer's Purchase
2Credit reported on any original or amended return filed under
3this Act after October 20, 2003 for reporting periods prior to
4September 1, 2004 shall be disallowed. Manufacturer's Purchase
5Credit reported on annual returns due on or after January 1,
62005 will be disallowed for periods prior to September 1, 2004.
7No Manufacturer's Purchase Credit may be used after September
830, 2003 through August 31, 2004 to satisfy any tax liability
9imposed under this Act, including any audit liability.
10    If the serviceman's average monthly tax liability to the
11Department does not exceed $200, the Department may authorize
12his returns to be filed on a quarter annual basis, with the
13return for January, February and March of a given year being
14due by April 20 of such year; with the return for April, May
15and June of a given year being due by July 20 of such year; with
16the return for July, August and September of a given year being
17due by October 20 of such year, and with the return for
18October, November and December of a given year being due by
19January 20 of the following year.
20    If the serviceman's average monthly tax liability to the
21Department does not exceed $50, the Department may authorize
22his returns to be filed on an annual basis, with the return for
23a given year being due by January 20 of the following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as monthly
26returns.

 

 

10100HB1438sam002- 475 -LRB101 04919 RLC 61359 a

1    Notwithstanding any other provision in this Act concerning
2the time within which a serviceman may file his return, in the
3case of any serviceman who ceases to engage in a kind of
4business which makes him responsible for filing returns under
5this Act, such serviceman shall file a final return under this
6Act with the Department not more than 1 month after
7discontinuing such business.
8    Beginning October 1, 1993, a taxpayer who has an average
9monthly tax liability of $150,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 1994, a taxpayer who has
12an average monthly tax liability of $100,000 or more shall make
13all payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1995, a taxpayer who has
15an average monthly tax liability of $50,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 2000, a taxpayer who has
18an annual tax liability of $200,000 or more shall make all
19payments required by rules of the Department by electronic
20funds transfer. The term "annual tax liability" shall be the
21sum of the taxpayer's liabilities under this Act, and under all
22other State and local occupation and use tax laws administered
23by the Department, for the immediately preceding calendar year.
24The term "average monthly tax liability" means the sum of the
25taxpayer's liabilities under this Act, and under all other
26State and local occupation and use tax laws administered by the

 

 

10100HB1438sam002- 476 -LRB101 04919 RLC 61359 a

1Department, for the immediately preceding calendar year
2divided by 12. Beginning on October 1, 2002, a taxpayer who has
3a tax liability in the amount set forth in subsection (b) of
4Section 2505-210 of the Department of Revenue Law shall make
5all payments required by rules of the Department by electronic
6funds transfer.
7    Before August 1 of each year beginning in 1993, the
8Department shall notify all taxpayers required to make payments
9by electronic funds transfer. All taxpayers required to make
10payments by electronic funds transfer shall make those payments
11for a minimum of one year beginning on October 1.
12    Any taxpayer not required to make payments by electronic
13funds transfer may make payments by electronic funds transfer
14with the permission of the Department.
15    All taxpayers required to make payment by electronic funds
16transfer and any taxpayers authorized to voluntarily make
17payments by electronic funds transfer shall make those payments
18in the manner authorized by the Department.
19    The Department shall adopt such rules as are necessary to
20effectuate a program of electronic funds transfer and the
21requirements of this Section.
22    Where a serviceman collects the tax with respect to the
23selling price of tangible personal property which he sells and
24the purchaser thereafter returns such tangible personal
25property and the serviceman refunds the selling price thereof
26to the purchaser, such serviceman shall also refund, to the

 

 

10100HB1438sam002- 477 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 478 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 479 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 480 -LRB101 04919 RLC 61359 a

1Act, Section 9 of the Service Use Tax Act, and Section 9 of the
2Service Occupation Tax Act, such Acts being hereinafter called
3the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
4may be, of moneys being hereinafter called the "Tax Act
5Amount", and (2) the amount transferred to the Build Illinois
6Fund from the State and Local Sales Tax Reform Fund shall be
7less than the Annual Specified Amount (as defined in Section 3
8of the Retailers' Occupation Tax Act), 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 if on the last
12business day of any month the sum of (1) the Tax Act Amount
13required to be deposited into the Build Illinois Account in the
14Build Illinois Fund during such month and (2) the amount
15transferred during such month to the Build Illinois Fund from
16the State and Local Sales Tax Reform Fund shall have been less
17than 1/12 of the Annual Specified Amount, an amount equal to
18the difference shall be immediately paid into the Build
19Illinois Fund from other moneys received by the Department
20pursuant to the Tax Acts; and, further provided, that in no
21event shall the payments required under the preceding proviso
22result in aggregate payments into the Build Illinois Fund
23pursuant to this clause (b) for any fiscal year in excess of
24the greater of (i) the Tax Act Amount or (ii) the Annual
25Specified Amount for such fiscal year; and, further provided,
26that the amounts payable into the Build Illinois Fund under

 

 

10100HB1438sam002- 481 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 482 -LRB101 04919 RLC 61359 a

1preceding sentence. The moneys received by the Department
2pursuant to this Act and required to be deposited into the
3Build Illinois Fund are subject to the pledge, claim and charge
4set forth in Section 12 of the Build Illinois Bond Act.
5    Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of the sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
17Fiscal YearTotal Deposit
181993         $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

 

 

10100HB1438sam002- 483 -LRB101 04919 RLC 61359 a

12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021246,000,000
222022260,000,000
232023275,000,000
242024 275,000,000
252025 275,000,000
262026 279,000,000

 

 

10100HB1438sam002- 484 -LRB101 04919 RLC 61359 a

12027 292,000,000
22028 307,000,000
32029 322,000,000
42030 338,000,000
52031 350,000,000
62032 350,000,000
7and
8each fiscal year
9thereafter that bonds
10are outstanding under
11Section 13.2 of the
12Metropolitan Pier and
13Exposition Authority Act,
14but not after fiscal year 2060.
15    Beginning July 20, 1993 and in each month of each fiscal
16year thereafter, one-eighth of the amount requested in the
17certificate of the Chairman of the Metropolitan Pier and
18Exposition Authority for that fiscal year, less the amount
19deposited into the McCormick Place Expansion Project Fund by
20the State Treasurer in the respective month under subsection
21(g) of Section 13 of the Metropolitan Pier and Exposition
22Authority Act, plus cumulative deficiencies in the deposits
23required under this Section for previous months and years,
24shall be deposited into the McCormick Place Expansion Project
25Fund, until the full amount requested for the fiscal year, but
26not in excess of the amount specified above as "Total Deposit",

 

 

10100HB1438sam002- 485 -LRB101 04919 RLC 61359 a

1has been deposited.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993 and ending on September 30,
62013, the Department shall each month pay into the Illinois Tax
7Increment Fund 0.27% of 80% of the net revenue realized for the
8preceding month from the 6.25% general rate on the selling
9price of tangible personal property.
10    Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning with the receipt of the first report of
14taxes paid by an eligible business and continuing for a 25-year
15period, the Department shall each month pay into the Energy
16Infrastructure Fund 80% of the net revenue realized from the
176.25% general rate on the selling price of Illinois-mined coal
18that was sold to an eligible business. For purposes of this
19paragraph, the term "eligible business" means a new electric
20generating facility certified pursuant to Section 605-332 of
21the Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23    Subject to payment of amounts into the Build Illinois Fund,
24the McCormick Place Expansion Project Fund, the Illinois Tax
25Increment Fund, and the Energy Infrastructure Fund pursuant to
26the preceding paragraphs or in any amendments to this Section

 

 

10100HB1438sam002- 486 -LRB101 04919 RLC 61359 a

1hereafter enacted, beginning on the first day of the first
2calendar month to occur on or after August 26, 2014 (the
3effective date of Public Act 98-1098), each month, from the
4collections made under Section 9 of the Use Tax Act, Section 9
5of the Service Use Tax Act, Section 9 of the Service Occupation
6Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
7the Department shall pay into the Tax Compliance and
8Administration Fund, to be used, subject to appropriation, to
9fund additional auditors and compliance personnel at the
10Department of Revenue, an amount equal to 1/12 of 5% of 80% of
11the cash receipts collected during the preceding fiscal year by
12the Audit Bureau of the Department under the Use Tax Act, the
13Service Use Tax Act, the Service Occupation Tax Act, the
14Retailers' Occupation Tax Act, and associated local occupation
15and use taxes administered by the Department.
16    Subject to payments of amounts into the Build Illinois
17Fund, the McCormick Place Expansion Project Fund, the Illinois
18Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
19Compliance and Administration Fund as provided in this Section,
20beginning on July 1, 2018 the Department shall pay each month
21into the Downstate Public Transportation Fund the moneys
22required to be so paid under Section 2-3 of the Downstate
23Public Transportation Act.
24    Of the remainder of the moneys received by the Department
25pursuant to this Act, 75% shall be paid into the General
26Revenue Fund of the State Treasury and 25% shall be reserved in

 

 

10100HB1438sam002- 487 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 488 -LRB101 04919 RLC 61359 a

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

 

 

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1    As soon as possible after the first day of each month, upon
2certification of the Department of Revenue, the Comptroller
3shall order transferred and the Treasurer shall transfer from
4the General Revenue Fund to the Motor Fuel Tax Fund an amount
5equal to 1.7% of 80% of the net revenue realized under this Act
6for the second preceding month. Beginning April 1, 2000, this
7transfer is no longer required and shall not be made.
8    Net revenue realized for a month shall be the revenue
9collected by the State pursuant to this Act, less the amount
10paid out during that month as refunds to taxpayers for
11overpayment of liability.
12    For greater simplicity of administration, it shall be
13permissible for manufacturers, importers and wholesalers whose
14products are sold by numerous servicemen in Illinois, and who
15wish to do so, to assume the responsibility for accounting and
16paying to the Department all tax accruing under this Act with
17respect to such sales, if the servicemen who are affected do
18not make written objection to the Department to this
19arrangement.
20(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
21100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
228-14-18; 100-1171, eff. 1-4-19.)
 
23    Section 900-19. The Retailers' Occupation Tax Act is
24amended by changing Section 3 as follows:
 

 

 

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1    (35 ILCS 120/3)  (from Ch. 120, par. 442)
2    Sec. 3. Except as provided in this Section, on or before
3the twentieth day of each calendar month, every person engaged
4in the business of selling tangible personal property at retail
5in this State during the preceding calendar month shall file a
6return with the Department, stating:
7        1. The name of the seller;
8        2. His residence address and the address of his
9    principal place of business and the address of the
10    principal place of business (if that is a different
11    address) from which he engages in the business of selling
12    tangible personal property at retail in this State;
13        3. Total amount of receipts received by him during the
14    preceding calendar month or quarter, as the case may be,
15    from sales of tangible personal property, and from services
16    furnished, by him during such preceding calendar month or
17    quarter;
18        4. Total amount received by him during the preceding
19    calendar month or quarter on charge and time sales of
20    tangible personal property, and from services furnished,
21    by him prior to the month or quarter for which the return
22    is filed;
23        5. Deductions allowed by law;
24        6. Gross receipts which were received by him during the
25    preceding calendar month or quarter and upon the basis of
26    which the tax is imposed;

 

 

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1        7. The amount of credit provided in Section 2d of this
2    Act;
3        8. The amount of tax due;
4        9. The signature of the taxpayer; and
5        10. Such other reasonable information as the
6    Department may require.
7    On and after January 1, 2018, except for returns for motor
8vehicles, watercraft, aircraft, and trailers that are required
9to be registered with an agency of this State, with respect to
10retailers whose annual gross receipts average $20,000 or more,
11all returns required to be filed pursuant to this Act shall be
12filed electronically. Retailers who demonstrate that they do
13not have access to the Internet or demonstrate hardship in
14filing electronically may petition the Department to waive the
15electronic filing requirement.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Each return shall be accompanied by the statement of
21prepaid tax issued pursuant to Section 2e for which credit is
22claimed.
23    Prior to October 1, 2003, and on and after September 1,
242004 a retailer may accept a Manufacturer's Purchase Credit
25certification from a purchaser in satisfaction of Use Tax as
26provided in Section 3-85 of the Use Tax Act if the purchaser

 

 

10100HB1438sam002- 492 -LRB101 04919 RLC 61359 a

1provides the appropriate documentation as required by Section
23-85 of the Use Tax Act. A Manufacturer's Purchase Credit
3certification, accepted by a retailer prior to October 1, 2003
4and on and after September 1, 2004 as provided in Section 3-85
5of the Use Tax Act, may be used by that retailer to satisfy
6Retailers' Occupation Tax liability in the amount claimed in
7the certification, not to exceed 6.25% of the receipts subject
8to tax from a qualifying purchase. A Manufacturer's Purchase
9Credit reported on any original or amended return filed under
10this Act after October 20, 2003 for reporting periods prior to
11September 1, 2004 shall be disallowed. Manufacturer's
12Purchaser Credit reported on annual returns due on or after
13January 1, 2005 will be disallowed for periods prior to
14September 1, 2004. No Manufacturer's Purchase Credit may be
15used after September 30, 2003 through August 31, 2004 to
16satisfy any tax liability imposed under this Act, including any
17audit liability.
18    The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25        1. The name of the seller;
26        2. The address of the principal place of business from

 

 

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1    which he engages in the business of selling tangible
2    personal property at retail in this State;
3        3. The total amount of taxable receipts received by him
4    during the preceding calendar month from sales of tangible
5    personal property by him during such preceding calendar
6    month, including receipts from charge and time sales, but
7    less all deductions allowed by law;
8        4. The amount of credit provided in Section 2d of this
9    Act;
10        5. The amount of tax due; and
11        6. Such other reasonable information as the Department
12    may require.
13    Beginning on October 1, 2003, any person who is not a
14licensed distributor, importing distributor, or manufacturer,
15as defined in the Liquor Control Act of 1934, but is engaged in
16the business of selling, at retail, alcoholic liquor shall file
17a statement with the Department of Revenue, in a format and at
18a time prescribed by the Department, showing the total amount
19paid for alcoholic liquor purchased during the preceding month
20and such other information as is reasonably required by the
21Department. The Department may adopt rules to require that this
22statement be filed in an electronic or telephonic format. Such
23rules may provide for exceptions from the filing requirements
24of this paragraph. For the purposes of this paragraph, the term
25"alcoholic liquor" shall have the meaning prescribed in the
26Liquor Control Act of 1934.

 

 

10100HB1438sam002- 494 -LRB101 04919 RLC 61359 a

1    Beginning on October 1, 2003, every distributor, importing
2distributor, and manufacturer of alcoholic liquor as defined in
3the Liquor Control Act of 1934, shall file a statement with the
4Department of Revenue, no later than the 10th day of the month
5for the preceding month during which transactions occurred, by
6electronic means, showing the total amount of gross receipts
7from the sale of alcoholic liquor sold or distributed during
8the preceding month to purchasers; identifying the purchaser to
9whom it was sold or distributed; the purchaser's tax
10registration number; and such other information reasonably
11required by the Department. A distributor, importing
12distributor, or manufacturer of alcoholic liquor must
13personally deliver, mail, or provide by electronic means to
14each retailer listed on the monthly statement a report
15containing a cumulative total of that distributor's, importing
16distributor's, or manufacturer's total sales of alcoholic
17liquor to that retailer no later than the 10th day of the month
18for the preceding month during which the transaction occurred.
19The distributor, importing distributor, or manufacturer shall
20notify the retailer as to the method by which the distributor,
21importing distributor, or manufacturer will provide the sales
22information. If the retailer is unable to receive the sales
23information by electronic means, the distributor, importing
24distributor, or manufacturer shall furnish the sales
25information by personal delivery or by mail. For purposes of
26this paragraph, the term "electronic means" includes, but is

 

 

10100HB1438sam002- 495 -LRB101 04919 RLC 61359 a

1not limited to, the use of a secure Internet website, e-mail,
2or facsimile.
3    If a total amount of less than $1 is payable, refundable or
4creditable, such amount shall be disregarded if it is less than
550 cents and shall be increased to $1 if it is 50 cents or more.
6    Notwithstanding any other provision of this Act to the
7contrary, retailers subject to tax on cannabis shall file all
8cannabis tax returns and shall make all cannabis tax payments
9by electronic means in the manner and form required by the
10Department.
11    Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

 

 

10100HB1438sam002- 496 -LRB101 04919 RLC 61359 a

1The term "average monthly tax liability" shall be the sum of
2the taxpayer's liabilities under this Act, and under all other
3State and local occupation and use tax laws administered by the
4Department, for the immediately preceding calendar year
5divided by 12. Beginning on October 1, 2002, a taxpayer who has
6a tax liability in the amount set forth in subsection (b) of
7Section 2505-210 of the Department of Revenue Law shall make
8all payments required by rules of the Department by electronic
9funds transfer.
10    Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make payments
12by electronic funds transfer. All taxpayers required to make
13payments by electronic funds transfer shall make those payments
14for a minimum of one year beginning on October 1.
15    Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18    All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those payments
21in the manner authorized by the Department.
22    The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25    Any amount which is required to be shown or reported on any
26return or other document under this Act shall, if such amount

 

 

10100HB1438sam002- 497 -LRB101 04919 RLC 61359 a

1is not a whole-dollar amount, be increased to the nearest
2whole-dollar amount in any case where the fractional part of a
3dollar is 50 cents or more, and decreased to the nearest
4whole-dollar amount where the fractional part of a dollar is
5less than 50 cents.
6    If the retailer is otherwise required to file a monthly
7return and if the retailer's average monthly tax liability to
8the Department does not exceed $200, the Department may
9authorize his returns to be filed on a quarter annual basis,
10with the return for January, February and March of a given year
11being due by April 20 of such year; with the return for April,
12May and June of a given year being due by July 20 of such year;
13with the return for July, August and September of a given year
14being due by October 20 of such year, and with the return for
15October, November and December of a given year being due by
16January 20 of the following year.
17    If the retailer is otherwise required to file a monthly or
18quarterly return and if the retailer's average monthly tax
19liability with the Department does not exceed $50, the
20Department may authorize his returns to be filed on an annual
21basis, with the return for a given year being due by January 20
22of the following year.
23    Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as monthly
25returns.
26    Notwithstanding any other provision in this Act concerning

 

 

10100HB1438sam002- 498 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 499 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 500 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 501 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 502 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 503 -LRB101 04919 RLC 61359 a

1the tax or proof of exemption made to the Department before the
2retailer is willing to take these actions and such user has not
3paid the tax to the retailer, such user may certify to the fact
4of such delay by the retailer and may (upon the Department
5being satisfied of the truth of such certification) transmit
6the information required by the transaction reporting return
7and the remittance for tax or proof of exemption directly to
8the Department and obtain his tax receipt or exemption
9determination, in which event the transaction reporting return
10and tax remittance (if a tax payment was required) shall be
11credited by the Department to the proper retailer's account
12with the Department, but without the 2.1% or 1.75% discount
13provided for in this Section being allowed. When the user pays
14the tax directly to the Department, he shall pay the tax in the
15same amount and in the same form in which it would be remitted
16if the tax had been remitted to the Department by the retailer.
17    Refunds made by the seller during the preceding return
18period to purchasers, on account of tangible personal property
19returned to the seller, shall be allowed as a deduction under
20subdivision 5 of his monthly or quarterly return, as the case
21may be, in case the seller had theretofore included the
22receipts from the sale of such tangible personal property in a
23return filed by him and had paid the tax imposed by this Act
24with respect to such receipts.
25    Where the seller is a corporation, the return filed on
26behalf of such corporation shall be signed by the president,

 

 

10100HB1438sam002- 504 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 505 -LRB101 04919 RLC 61359 a

1registration has become final.
2    Before October 1, 2000, if the taxpayer's average monthly
3tax liability to the Department under this Act, the Use Tax
4Act, the Service Occupation Tax Act, and the Service Use Tax
5Act, excluding any liability for prepaid sales tax to be
6remitted in accordance with Section 2d of this Act, was $10,000
7or more during the preceding 4 complete calendar quarters, he
8shall file a return with the Department each month by the 20th
9day of the month next following the month during which such tax
10liability is incurred and shall make payments to the Department
11on or before the 7th, 15th, 22nd and last day of the month
12during which such liability is incurred. On and after October
131, 2000, if the taxpayer's average monthly tax liability to the
14Department under this Act, the Use Tax Act, the Service
15Occupation Tax Act, and the Service Use Tax Act, excluding any
16liability for prepaid sales tax to be remitted in accordance
17with Section 2d of this Act, was $20,000 or more during the
18preceding 4 complete calendar quarters, he shall file a return
19with the Department each month by the 20th day of the month
20next following the month during which such tax liability is
21incurred and shall make payment to the Department on or before
22the 7th, 15th, 22nd and last day of the month during which such
23liability is incurred. If the month during which such tax
24liability is incurred began prior to January 1, 1985, each
25payment shall be in an amount equal to 1/4 of the taxpayer's
26actual liability for the month or an amount set by the

 

 

10100HB1438sam002- 506 -LRB101 04919 RLC 61359 a

1Department not to exceed 1/4 of the average monthly liability
2of the taxpayer to the Department for the preceding 4 complete
3calendar quarters (excluding the month of highest liability and
4the month of lowest liability in such 4 quarter period). If the
5month during which such tax liability is incurred begins on or
6after January 1, 1985 and prior to January 1, 1987, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 27.5% 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, 1987 and prior to January 1, 1988, each
12payment shall be in an amount equal to 22.5% of the taxpayer's
13actual liability for the month or 26.25% of the taxpayer's
14liability for the same calendar month of the preceding year. If
15the month during which such tax liability is incurred begins on
16or after January 1, 1988, and prior to January 1, 1989, or
17begins on or after 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. If the month during which
21such tax liability is incurred begins on or after January 1,
221989, and prior to January 1, 1996, each payment shall be in an
23amount equal to 22.5% of the taxpayer's actual liability for
24the month or 25% of the taxpayer's liability for the same
25calendar month of the preceding year or 100% of the taxpayer's
26actual liability for the quarter monthly reporting period. The

 

 

10100HB1438sam002- 507 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 508 -LRB101 04919 RLC 61359 a

1lowest liability) is less than $19,000 or until such taxpayer's
2average monthly liability to the Department as computed for
3each calendar quarter of the 4 preceding complete calendar
4quarter period is less than $20,000. However, if a taxpayer can
5show the Department that a substantial change in the taxpayer's
6business has occurred which causes the taxpayer to anticipate
7that his average monthly tax liability for the reasonably
8foreseeable future will fall below the $20,000 threshold stated
9above, then such taxpayer may petition the Department for a
10change in such taxpayer's reporting status. The Department
11shall change such taxpayer's reporting status unless it finds
12that such change is seasonal in nature and not likely to be
13long term. If any such quarter monthly payment is not paid at
14the time or in the amount required by this Section, then the
15taxpayer shall be liable for penalties and interest on the
16difference between the minimum amount due as a payment and the
17amount of such quarter monthly payment actually and timely
18paid, except insofar as the taxpayer has previously made
19payments for that month to the Department in excess of the
20minimum payments previously due as provided in this Section.
21The Department shall make reasonable rules and regulations to
22govern the quarter monthly payment amount and quarter monthly
23payment dates for taxpayers who file on other than a calendar
24monthly basis.
25    The provisions of this paragraph apply before October 1,
262001. Without regard to whether a taxpayer is required to make

 

 

10100HB1438sam002- 509 -LRB101 04919 RLC 61359 a

1quarter monthly payments as specified above, any taxpayer who
2is required by Section 2d of this Act to collect and remit
3prepaid taxes and has collected prepaid taxes which average in
4excess of $25,000 per month during the preceding 2 complete
5calendar quarters, shall file a return with the Department as
6required by Section 2f and shall make payments to the
7Department on or before the 7th, 15th, 22nd and last day of the
8month during which such liability is incurred. If the month
9during which such tax liability is incurred began prior to
10September 1, 1985 (the effective date of Public Act 84-221),
11each payment shall be in an amount not less than 22.5% of the
12taxpayer's actual liability under Section 2d. If the month
13during which such tax liability is incurred begins on or after
14January 1, 1986, each payment shall be in an amount equal to
1522.5% of the taxpayer's actual liability for the month or 27.5%
16of the taxpayer's liability for the same calendar month of the
17preceding calendar year. If the month during which such tax
18liability is incurred begins on or after January 1, 1987, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 26.25% of the taxpayer's
21liability for the same calendar month of the preceding year.
22The amount of such quarter monthly payments shall be credited
23against the final tax liability of the taxpayer's return for
24that month filed under this Section or Section 2f, as the case
25may be. Once applicable, the requirement of the making of
26quarter monthly payments to the Department pursuant to this

 

 

10100HB1438sam002- 510 -LRB101 04919 RLC 61359 a

1paragraph shall continue until such taxpayer's average monthly
2prepaid tax collections during the preceding 2 complete
3calendar quarters is $25,000 or less. If any such quarter
4monthly payment is not paid at the time or in the amount
5required, the taxpayer shall be liable for penalties and
6interest on such difference, except insofar as the taxpayer has
7previously made payments for that month in excess of the
8minimum payments previously due.
9    The provisions of this paragraph apply on and after October
101, 2001. Without regard to whether a taxpayer is required to
11make quarter monthly payments as specified above, any taxpayer
12who is required by Section 2d of this Act to collect and remit
13prepaid taxes and has collected prepaid taxes that average in
14excess of $20,000 per month during the preceding 4 complete
15calendar quarters shall file a return with the Department as
16required by Section 2f and shall make payments to the
17Department on or before the 7th, 15th, 22nd and last day of the
18month during which the liability is incurred. Each payment
19shall be in an amount equal to 22.5% of the taxpayer's actual
20liability for the month or 25% of the taxpayer's liability for
21the same calendar month of the preceding year. The amount of
22the quarter monthly payments shall be credited against the
23final tax liability of the taxpayer's return for that month
24filed under this Section or Section 2f, as the case may be.
25Once applicable, the requirement of the making of quarter
26monthly payments to the Department pursuant to this paragraph

 

 

10100HB1438sam002- 511 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 512 -LRB101 04919 RLC 61359 a

1Use Tax Act, in accordance with reasonable rules and
2regulations prescribed by the Department. If the Department
3subsequently determined that all or any part of the credit
4taken was not actually due to the taxpayer, the taxpayer's 2.1%
5and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
6of the difference between the credit taken and that actually
7due, and that taxpayer shall be liable for penalties and
8interest on such difference.
9    If a retailer of motor fuel is entitled to a credit under
10Section 2d of this Act which exceeds the taxpayer's liability
11to the Department under this Act for the month which the
12taxpayer is filing a return, the Department shall issue the
13taxpayer a credit memorandum for the excess.
14    Beginning January 1, 1990, each month the Department shall
15pay into the Local Government Tax Fund, a special fund in the
16State treasury which is hereby created, the net revenue
17realized for the preceding month from the 1% tax imposed under
18this Act.
19    Beginning January 1, 1990, each month the Department shall
20pay into the County and Mass Transit District Fund, a special
21fund in the State treasury which is hereby created, 4% of the
22net revenue realized for the preceding month from the 6.25%
23general rate.
24    Beginning August 1, 2000, each month the Department shall
25pay into the County and Mass Transit District Fund 20% of the
26net revenue realized for the preceding month from the 1.25%

 

 

10100HB1438sam002- 513 -LRB101 04919 RLC 61359 a

1rate on the selling price of motor fuel and gasohol. Beginning
2September 1, 2010, each month the Department shall pay into the
3County and Mass Transit District Fund 20% of the net revenue
4realized for the preceding month from the 1.25% rate on the
5selling price of sales tax holiday items.
6    Beginning January 1, 1990, each month the Department shall
7pay into the Local Government Tax Fund 16% of the net revenue
8realized for the preceding month from the 6.25% general rate on
9the selling price of tangible personal property.
10    Beginning August 1, 2000, each month the Department shall
11pay into the Local Government Tax Fund 80% of the net revenue
12realized for the preceding month from the 1.25% rate on the
13selling price of motor fuel and gasohol. Beginning September 1,
142010, each month the Department shall pay into the Local
15Government Tax Fund 80% of the net revenue realized for the
16preceding month from the 1.25% rate on the selling price of
17sales tax holiday items.
18    Beginning October 1, 2009, each month the Department shall
19pay into the Capital Projects Fund an amount that is equal to
20an amount estimated by the Department to represent 80% of the
21net revenue realized for the preceding month from the sale of
22candy, grooming and hygiene products, and soft drinks that had
23been taxed at a rate of 1% prior to September 1, 2009 but that
24are now taxed at 6.25%.
25    Beginning July 1, 2011, each month the Department shall pay
26into the Clean Air Act Permit Fund 80% of the net revenue

 

 

10100HB1438sam002- 514 -LRB101 04919 RLC 61359 a

1realized for the preceding month from the 6.25% general rate on
2the selling price of sorbents used in Illinois in the process
3of sorbent injection as used to comply with the Environmental
4Protection Act or the federal Clean Air Act, but the total
5payment into the Clean Air Act Permit Fund under this Act and
6the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service Use Tax
10Act, and the Service Occupation Tax Act an amount equal to the
11average monthly deficit in the Underground Storage Tank Fund
12during the prior year, as certified annually by the Illinois
13Environmental Protection Agency, but the total payment into the
14Underground Storage Tank Fund under this Act, the Use Tax Act,
15the Service Use Tax Act, and the Service Occupation Tax Act
16shall not exceed $18,000,000 in any State fiscal year. As used
17in this paragraph, the "average monthly deficit" shall be equal
18to the difference between the average monthly claims for
19payment by the fund and the average monthly revenues deposited
20into the fund, excluding payments made pursuant to this
21paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, the Service
24Use Tax Act, the Service Occupation Tax Act, and this Act, each
25month the Department shall deposit $500,000 into the State
26Crime Laboratory Fund.

 

 

10100HB1438sam002- 515 -LRB101 04919 RLC 61359 a

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, (a) 1.75% thereof shall be paid into the
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
4and after July 1, 1989, 3.8% thereof shall be paid into the
5Build Illinois Fund; provided, however, that if in any fiscal
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
7may be, of the moneys received by the Department and required
8to be paid into the Build Illinois Fund pursuant to this Act,
9Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
10Act, and Section 9 of the Service Occupation Tax Act, such Acts
11being hereinafter called the "Tax Acts" and such aggregate of
122.2% or 3.8%, as the case may be, of moneys being hereinafter
13called the "Tax Act Amount", and (2) the amount transferred to
14the Build Illinois Fund from the State and Local Sales Tax
15Reform Fund shall be less than the Annual Specified Amount (as
16hereinafter defined), an amount equal to the difference shall
17be immediately paid into the Build Illinois Fund from other
18moneys received by the Department pursuant to the Tax Acts; the
19"Annual Specified Amount" means the amounts specified below for
20fiscal years 1986 through 1993:
21Fiscal YearAnnual Specified Amount
221986$54,800,000
231987$76,650,000
241988$80,480,000
251989$88,510,000
261990$115,330,000

 

 

10100HB1438sam002- 516 -LRB101 04919 RLC 61359 a

11991$145,470,000
21992$182,730,000
31993$206,520,000;
4and means the Certified Annual Debt Service Requirement (as
5defined in Section 13 of the Build Illinois Bond Act) or the
6Tax Act Amount, whichever is greater, for fiscal year 1994 and
7each fiscal year thereafter; and further provided, that if on
8the last business day of any month the sum of (1) the Tax Act
9Amount required to be deposited into the Build Illinois Bond
10Account in the Build Illinois Fund during such month and (2)
11the amount transferred to the Build Illinois Fund from the
12State and Local Sales Tax Reform Fund shall have been less than
131/12 of the Annual Specified Amount, an amount equal to the
14difference shall be immediately paid into the Build Illinois
15Fund from other moneys received by the Department pursuant to
16the Tax Acts; and, further provided, that in no event shall the
17payments required under the preceding proviso result in
18aggregate payments into the Build Illinois Fund pursuant to
19this clause (b) for any fiscal year in excess of the greater of
20(i) the Tax Act Amount or (ii) the Annual Specified Amount for
21such fiscal year. The amounts payable into the Build Illinois
22Fund under clause (b) of the first sentence in this paragraph
23shall be payable only until such time as the aggregate amount
24on deposit under each trust indenture securing Bonds issued and
25outstanding pursuant to the Build Illinois Bond Act is
26sufficient, taking into account any future investment income,

 

 

10100HB1438sam002- 517 -LRB101 04919 RLC 61359 a

1to fully provide, in accordance with such indenture, for the
2defeasance of or the payment of the principal of, premium, if
3any, and interest on the Bonds secured by such indenture and on
4any Bonds expected to be issued thereafter and all fees and
5costs payable with respect thereto, all as certified by the
6Director of the Bureau of the Budget (now Governor's Office of
7Management and Budget). If on the last business day of any
8month in which Bonds are outstanding pursuant to the Build
9Illinois Bond Act, the aggregate of moneys deposited in the
10Build Illinois Bond Account in the Build Illinois Fund in such
11month shall be less than the amount required to be transferred
12in such month from the Build Illinois Bond Account to the Build
13Illinois Bond Retirement and Interest Fund pursuant to Section
1413 of the Build Illinois Bond Act, an amount equal to such
15deficiency shall be immediately paid from other moneys received
16by the Department pursuant to the Tax Acts to the Build
17Illinois Fund; provided, however, that any amounts paid to the
18Build Illinois Fund in any fiscal year pursuant to this
19sentence shall be deemed to constitute payments pursuant to
20clause (b) of the first sentence of this paragraph and shall
21reduce the amount otherwise payable for such fiscal year
22pursuant to that clause (b). The moneys received by the
23Department pursuant to this Act and required to be deposited
24into the Build Illinois Fund are subject to the pledge, claim
25and charge set forth in Section 12 of the Build Illinois Bond
26Act.

 

 

10100HB1438sam002- 518 -LRB101 04919 RLC 61359 a

1    Subject to payment of amounts into the Build Illinois Fund
2as provided in the preceding paragraph or in any amendment
3thereto hereafter enacted, the following specified monthly
4installment of the amount requested in the certificate of the
5Chairman of the Metropolitan Pier and Exposition Authority
6provided under Section 8.25f of the State Finance Act, but not
7in excess of sums designated as "Total Deposit", shall be
8deposited in the aggregate from collections under Section 9 of
9the Use Tax Act, Section 9 of the Service Use Tax Act, Section
109 of the Service Occupation Tax Act, and Section 3 of the
11Retailers' Occupation Tax Act into the McCormick Place
12Expansion Project Fund in the specified fiscal years.
13Fiscal YearTotal Deposit
141993         $0
151994 53,000,000
161995 58,000,000
171996 61,000,000
181997 64,000,000
191998 68,000,000
201999 71,000,000
212000 75,000,000
222001 80,000,000
232002 93,000,000
242003 99,000,000
252004103,000,000

 

 

10100HB1438sam002- 519 -LRB101 04919 RLC 61359 a

12005108,000,000
22006113,000,000
32007119,000,000
42008126,000,000
52009132,000,000
62010139,000,000
72011146,000,000
82012153,000,000
92013161,000,000
102014170,000,000
112015179,000,000
122016189,000,000
132017199,000,000
142018210,000,000
152019221,000,000
162020233,000,000
172021246,000,000
182022260,000,000
192023275,000,000
202024 275,000,000
212025 275,000,000
222026 279,000,000
232027 292,000,000
242028 307,000,000
252029 322,000,000
262030 338,000,000

 

 

10100HB1438sam002- 520 -LRB101 04919 RLC 61359 a

12031 350,000,000
22032 350,000,000
3and
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11    Beginning July 20, 1993 and in each month of each fiscal
12year thereafter, one-eighth of the amount requested in the
13certificate of the Chairman of the Metropolitan Pier and
14Exposition Authority for that fiscal year, less the amount
15deposited into the McCormick Place Expansion Project Fund by
16the State Treasurer in the respective month under subsection
17(g) of Section 13 of the Metropolitan Pier and Exposition
18Authority Act, plus cumulative deficiencies in the deposits
19required under this Section for previous months and years,
20shall be deposited into the McCormick Place Expansion Project
21Fund, until the full amount requested for the fiscal year, but
22not in excess of the amount specified above as "Total Deposit",
23has been deposited.
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

 

 

10100HB1438sam002- 521 -LRB101 04919 RLC 61359 a

1enacted, beginning July 1, 1993 and ending on September 30,
22013, the Department shall each month pay into the Illinois Tax
3Increment Fund 0.27% of 80% of the net revenue realized for the
4preceding month from the 6.25% general rate on the selling
5price of tangible personal property.
6    Subject to payment of amounts into the Build Illinois Fund
7and the McCormick Place Expansion Project Fund pursuant to the
8preceding paragraphs or in any amendments thereto hereafter
9enacted, beginning with the receipt of the first report of
10taxes paid by an eligible business and continuing for a 25-year
11period, the Department shall each month pay into the Energy
12Infrastructure Fund 80% of the net revenue realized from the
136.25% general rate on the selling price of Illinois-mined coal
14that was sold to an eligible business. For purposes of this
15paragraph, the term "eligible business" means a new electric
16generating facility certified pursuant to Section 605-332 of
17the Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19    Subject to payment of amounts into the Build Illinois Fund,
20the McCormick Place Expansion Project Fund, the Illinois Tax
21Increment Fund, and the Energy Infrastructure Fund pursuant to
22the preceding paragraphs or in any amendments to this Section
23hereafter enacted, beginning on the first day of the first
24calendar month to occur on or after August 26, 2014 (the
25effective date of Public Act 98-1098), each month, from the
26collections made under Section 9 of the Use Tax Act, Section 9

 

 

10100HB1438sam002- 522 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 523 -LRB101 04919 RLC 61359 a

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 retailer'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 retailer shall attach to his annual return a
11schedule showing a reconciliation of the 2 amounts and the
12reasons for the difference. The retailer's annual return to the
13Department shall also disclose the cost of goods sold by the
14retailer during the year covered by such return, opening and
15closing inventories of such goods for such year, costs of goods
16used from stock or taken from stock and given away by the
17retailer during such year, payroll information of the
18retailer'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 retailer as provided for in
22this 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

 

 

10100HB1438sam002- 524 -LRB101 04919 RLC 61359 a

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 provisions of this Section concerning the filing of an
19annual information return do not apply to a retailer who is not
20required to file an income tax return with the United States
21Government.
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

 

 

10100HB1438sam002- 525 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 526 -LRB101 04919 RLC 61359 a

1the month during which the event with retail sales was held.
2Any person who fails to file a report required by this Section
3commits a business offense and is subject to a fine not to
4exceed $250.
5    Any person engaged in the business of selling tangible
6personal property at retail as a concessionaire or other type
7of seller at the Illinois State Fair, county fairs, art shows,
8flea markets and similar exhibitions or events, or any
9transient merchants, as defined by Section 2 of the Transient
10Merchant Act of 1987, may be required to make a daily report of
11the amount of such sales to the Department and to make a daily
12payment of the full amount of tax due. The Department shall
13impose this requirement when it finds that there is a
14significant risk of loss of revenue to the State at such an
15exhibition or event. Such a finding shall be based on evidence
16that a substantial number of concessionaires or other sellers
17who are not residents of Illinois will be engaging in the
18business of selling tangible personal property at retail at the
19exhibition or event, or other evidence of a significant risk of
20loss of revenue to the State. The Department shall notify
21concessionaires and other sellers affected by the imposition of
22this requirement. In the absence of notification by the
23Department, the concessionaires and other sellers shall file
24their returns as otherwise required in this Section.
25(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2699-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.

 

 

10100HB1438sam002- 527 -LRB101 04919 RLC 61359 a

17-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
2    (35 ILCS 520/Act rep.)
3    Section 900-20. The Cannabis and Controlled Substances Tax
4Act is repealed.
 
5    Section 900-22. The Illinois Police Training Act is amended
6by changing Sections 9 and 10.12 as follows:
 
7    (50 ILCS 705/9)  (from Ch. 85, par. 509)
8    (Text of Section before amendment by P.A. 100-987)
9    Sec. 9. A special fund is hereby established in the State
10Treasury to be known as the Traffic and Criminal Conviction
11Surcharge Fund and shall be financed as provided in Section 9.1
12of this Act and Section 5-9-1 of the Unified Code of
13Corrections, unless the fines, costs, or additional amounts
14imposed are subject to disbursement by the circuit clerk under
15Section 27.5 of the Clerks of Courts Act. Moneys in this Fund
16shall be expended as follows:
17        (1) a portion of the total amount deposited in the Fund
18    may be used, as appropriated by the General Assembly, for
19    the ordinary and contingent expenses of the Illinois Law
20    Enforcement Training Standards Board;
21        (2) a portion of the total amount deposited in the Fund
22    shall be appropriated for the reimbursement of local
23    governmental agencies participating in training programs

 

 

10100HB1438sam002- 528 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 529 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 530 -LRB101 04919 RLC 61359 a

1having a population of more than 500,000. The State Comptroller
2and the State Treasurer shall from time to time, at the
3direction of the Governor, transfer from the Traffic and
4Criminal Conviction Surcharge Fund to the General Revenue Fund
5in the State Treasury such amounts as the Governor determines
6are in excess of the amounts required to meet the obligations
7of the Traffic and Criminal Conviction Surcharge Fund.
8(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
998-743, eff. 1-1-15; 99-78, eff. 7-20-15; 99-523, eff.
106-30-16.)
 
11    (Text of Section after amendment by P.A. 100-987)
12    Sec. 9. A special fund is hereby established in the State
13Treasury to be known as the Traffic and Criminal Conviction
14Surcharge Fund. Moneys in this Fund shall be expended as
15follows:
16        (1) a portion of the total amount deposited in the Fund
17    may be used, as appropriated by the General Assembly, for
18    the ordinary and contingent expenses of the Illinois Law
19    Enforcement Training Standards Board;
20        (2) a portion of the total amount deposited in the Fund
21    shall be appropriated for the reimbursement of local
22    governmental agencies participating in training programs
23    certified by the Board, in an amount equaling 1/2 of the
24    total sum paid by such agencies during the State's previous
25    fiscal year for mandated training for probationary police

 

 

10100HB1438sam002- 531 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 532 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 533 -LRB101 04919 RLC 61359 a

1Criminal Conviction Surcharge Fund to the General Revenue Fund
2in the State Treasury such amounts as the Governor determines
3are in excess of the amounts required to meet the obligations
4of the Traffic and Criminal Conviction Surcharge Fund.
5(Source: P.A. 99-78, eff. 7-20-15; 99-523, eff. 6-30-16;
6100-987, eff. 7-1-19.)
 
7    (50 ILCS 705/10.12)
8    Sec. 10.12. Police dog training standards. All Beginning
9July 1, 2012, all police dogs used by State and local law
10enforcement agencies for drug enforcement purposes pursuant to
11the Cannabis Control Act (720 ILCS 550/), the Illinois
12Controlled Substances Act (720 ILCS 570/), or and the
13Methamphetamine Control and Community Protection Act (720 ILCS
14646/) shall be trained by programs that meet the minimum
15certification requirements set by the Board.
16(Source: P.A. 97-469, eff. 7-1-12.)
 
17    Section 900-25. The Counties Code is amended by adding
18Section 5-1006.8 and changing Section 5-1009 as follows:
 
19    (55 ILCS 5/5-1006.8 new)
20    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
21Law.
22    (a) This Section may be referred to as the County Cannabis
23Retailers' Occupation Tax Law. On and after January 1, 2020,

 

 

10100HB1438sam002- 534 -LRB101 04919 RLC 61359 a

1the corporate authorities of any county may, by ordinance,
2impose a tax upon all persons engaged in the business of
3selling cannabis, other than cannabis purchased under the
4Compassionate Use of Medical Cannabis Pilot Program Act, at
5retail in the county on the gross receipts from these sales
6made in the course of that business. If imposed, the tax shall
7be imposed only in 0.25% increments. The tax rate may not
8exceed: (i) 3.75% of the gross receipts of sales made in
9unincorporated areas of the county and (ii) 0.75% of the gross
10receipts of sales made in a municipality located in a non-home
11rule county; and (iii) 3% of gross sales receipts made in a
12municipality located in a home rule county. The tax imposed
13under this Section and all civil penalties that may be assessed
14as an incident of the tax shall be collected and enforced by
15the Department of Revenue. The Department of Revenue shall have
16full power to administer and enforce this Section; to collect
17all taxes and penalties due hereunder; to dispose of taxes and
18penalties so collected in the manner hereinafter provided; and
19to determine all rights to credit memoranda arising on account
20of the erroneous payment of tax or penalty under this Section.
21In the administration of and compliance with this Section, the
22Department of Revenue and persons who are subject to this
23Section shall have the same rights, remedies, privileges,
24immunities, powers and duties, and be subject to the same
25conditions, restrictions, limitations, penalties, and
26definitions of terms, and employ the same modes of procedure,

 

 

10100HB1438sam002- 535 -LRB101 04919 RLC 61359 a

1as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
21n, 2 through 2-65 (in respect to all provisions therein other
3than the State rate of tax), 2c, 3 (except as to the
4disposition of taxes and penalties collected), 4, 5, 5a, 5b,
55c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 8,
68, 9, 10, 11, 12, and 13 of the Retailers' Occupation Tax Act
7and Section 3-7 of the Uniform Penalty and Interest Act as
8fully as if those provisions were set forth in this Section.
9    (b) Persons subject to any tax imposed under the authority
10granted in this Section may reimburse themselves for their
11seller's tax liability hereunder by separately stating that tax
12as an additional charge, which charge may be stated in
13combination, in a single amount, with any State tax that
14sellers are required to collect.
15    (c) Whenever the Department of Revenue determines that a
16refund should be made under this Section to a claimant instead
17of issuing a credit memorandum, the Department of Revenue shall
18notify the State Comptroller, who shall cause the order to be
19drawn for the amount specified and to the person named in the
20notification from the Department of Revenue.
21    (d) The Department of Revenue shall immediately pay over to
22the State Treasurer, ex officio, as trustee, all taxes and
23penalties collected hereunder for deposit into the Local
24Cannabis Consumer Excise Tax Trust Fund.
25    (e) On or before the 25th day of each calendar month, the
26Department of Revenue shall prepare and certify to the

 

 

10100HB1438sam002- 536 -LRB101 04919 RLC 61359 a

1Comptroller the amount of money to be disbursed from the Local
2Cannabis Consumer Excise Tax Trust Fund to counties from which
3retailers have paid taxes or penalties under this Section
4during the second preceding calendar month. The amount to be
5paid to each county shall be the amount (not including credit
6memoranda) collected under this Section from sales made in the
7county during the second preceding calendar month, plus an
8amount the Department of Revenue determines is necessary to
9offset any amounts that were erroneously paid to a different
10taxing body, and not including an amount equal to the amount of
11refunds made during the second preceding calendar month by the
12Department on behalf of such county, and not including any
13amount that the Department determines is necessary to offset
14any amounts that were payable to a different taxing body but
15were erroneously paid to the county, less 1.5% of the
16remainder, which the Department shall transfer into the Tax
17Compliance and Administration Fund. The Department, at the time
18of each monthly disbursement to the counties, shall prepare and
19certify the State Comptroller the amount to be transferred into
20the Tax Compliance and Administration Fund under this Section.
21Within 10 days after receipt by the Comptroller of the
22disbursement certification to the counties and the Tax
23Compliance and Administration Fund provided for in this Section
24to be given to the Comptroller by the Department, the
25Comptroller shall cause the orders to be drawn for the
26respective amounts in accordance with the directions contained

 

 

10100HB1438sam002- 537 -LRB101 04919 RLC 61359 a

1in the certification.
2    (f) An ordinance or resolution imposing or discontinuing a
3tax under this Section or effecting a change in the rate
4thereof shall be adopted and a certified copy thereof filed
5with the Department on or before the first day of June,
6whereupon the Department shall proceed to administer and
7enforce this Section as of the first day of September next
8following the adoption and filing.
 
9    (55 ILCS 5/5-1009)  (from Ch. 34, par. 5-1009)
10    Sec. 5-1009. Limitation on home rule powers. Except as
11provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007 and
125-1008, on and after September 1, 1990, no home rule county has
13the authority to impose, pursuant to its home rule authority, a
14retailer's occupation tax, service occupation tax, use tax,
15sales tax or other tax on the use, sale or purchase of tangible
16personal property based on the gross receipts from such sales
17or the selling or purchase price of said tangible personal
18property. Notwithstanding the foregoing, this Section does not
19preempt any home rule imposed tax such as the following: (1) a
20tax on alcoholic beverages, whether based on gross receipts,
21volume sold or any other measurement; (2) a tax based on the
22number of units of cigarettes or tobacco products; (3) a tax,
23however measured, based on the use of a hotel or motel room or
24similar facility; (4) a tax, however measured, on the sale or
25transfer of real property; (5) a tax, however measured, on

 

 

10100HB1438sam002- 538 -LRB101 04919 RLC 61359 a

1lease receipts; (6) a tax on food prepared for immediate
2consumption and on alcoholic beverages sold by a business which
3provides for on premise consumption of said food or alcoholic
4beverages; or (7) other taxes not based on the selling or
5purchase price or gross receipts from the use, sale or purchase
6of tangible personal property. This Section does not preempt a
7home rule county from imposing a tax, however measured, on the
8use, for consideration, of a parking lot, garage, or other
9parking facility. This Section is a limitation, pursuant to
10subsection (g) of Section 6 of Article VII of the Illinois
11Constitution, on the power of home rule units to tax.
12(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
13    Section 900-30. The Illinois Municipal Code is amended by
14changing Section 8-11-6a and adding Section 8-11-22 as follows:
 
15    (65 ILCS 5/8-11-6a)  (from Ch. 24, par. 8-11-6a)
16    Sec. 8-11-6a. Home rule municipalities; preemption of
17certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
188-11-6, 8-11-6b, 8-11-6c, 8-11-22, and 11-74.3-6 on and after
19September 1, 1990, no home rule municipality has the authority
20to impose, pursuant to its home rule authority, a retailer's
21occupation tax, service occupation tax, use tax, sales tax or
22other tax on the use, sale or purchase of tangible personal
23property based on the gross receipts from such sales or the
24selling or purchase price of said tangible personal property.

 

 

10100HB1438sam002- 539 -LRB101 04919 RLC 61359 a

1Notwithstanding the foregoing, this Section does not preempt
2any home rule imposed tax such as the following: (1) a tax on
3alcoholic beverages, whether based on gross receipts, volume
4sold or any other measurement; (2) a tax based on the number of
5units of cigarettes or tobacco products (provided, however,
6that a home rule municipality that has not imposed a tax based
7on the number of units of cigarettes or tobacco products before
8July 1, 1993, shall not impose such a tax after that date); (3)
9a tax, however measured, based on the use of a hotel or motel
10room or similar facility; (4) a tax, however measured, on the
11sale or transfer of real property; (5) a tax, however measured,
12on lease receipts; (6) a tax on food prepared for immediate
13consumption and on alcoholic beverages sold by a business which
14provides for on premise consumption of said food or alcoholic
15beverages; or (7) other taxes not based on the selling or
16purchase price or gross receipts from the use, sale or purchase
17of tangible personal property. This Section does not preempt a
18home rule municipality with a population of more than 2,000,000
19from imposing a tax, however measured, on the use, for
20consideration, of a parking lot, garage, or other parking
21facility. This Section is not intended to affect any existing
22tax on food and beverages prepared for immediate consumption on
23the premises where the sale occurs, or any existing tax on
24alcoholic beverages, or any existing tax imposed on the charge
25for renting a hotel or motel room, which was in effect January
2615, 1988, or any extension of the effective date of such an

 

 

10100HB1438sam002- 540 -LRB101 04919 RLC 61359 a

1existing tax by ordinance of the municipality imposing the tax,
2which extension is hereby authorized, in any non-home rule
3municipality in which the imposition of such a tax has been
4upheld by judicial determination, nor is this Section intended
5to preempt the authority granted by Public Act 85-1006. This
6Section is a limitation, pursuant to subsection (g) of Section
76 of Article VII of the Illinois Constitution, on the power of
8home rule units to tax.
9(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
10    (65 ILCS 5/8-11-22 new)
11    Sec. 8-11-22. Municipal Cannabis Retailers' Occupation Tax
12Law.
13    (a) This Section may be referred to as the Municipal
14Cannabis Retailers' Occupation Tax Law. On and after January 1,
152020, the corporate authorities of any municipality may, by
16ordinance, impose a tax upon all persons engaged in the
17business of selling cannabis, other than cannabis purchased
18under the Compassionate Use of Medical Cannabis Pilot Program
19Act, at retail in the municipality on the gross receipts from
20these sales made in the course of that business. If imposed,
21the tax may not exceed 3% of the gross receipts from these
22sales and shall only be imposed in 1/4% increments. The tax
23imposed under this Section and all civil penalties that may be
24assessed as an incident of the tax shall be collected and
25enforced by the Department of Revenue. The Department of

 

 

10100HB1438sam002- 541 -LRB101 04919 RLC 61359 a

1Revenue shall have full power to administer and enforce this
2Section; to collect all taxes and penalties due hereunder; to
3dispose of taxes and penalties so collected in the manner
4hereinafter provided; and to determine all rights to credit
5memoranda arising on account of the erroneous payment of tax or
6penalty under this Section. In the administration of and
7compliance with this Section, the Department and persons who
8are subject to this Section shall have the same rights,
9remedies, privileges, immunities, powers and duties, and be
10subject to the same conditions, restrictions, limitations,
11penalties and definitions of terms, and employ the same modes
12of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
131i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
14provisions therein other than the State rate of tax), 2c, 3
15(except as to the disposition of taxes and penalties
16collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
175l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
18Retailers' Occupation Tax Act and Section 3-7 of the Uniform
19Penalty and Interest Act, as fully as if those provisions were
20set forth herein.
21    (b) Persons subject to any tax imposed under the authority
22granted in this Section may reimburse themselves for their
23seller's tax liability hereunder by separately stating that tax
24as an additional charge, which charge may be stated in
25combination, in a single amount, with any State tax that
26sellers are required to collect.

 

 

10100HB1438sam002- 542 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 543 -LRB101 04919 RLC 61359 a

1different taxing body but were erroneously paid to the
2municipality, less 1.5% of the remainder, which the Department
3shall transfer into the Tax Compliance and Administration Fund.
4The Department, at the time of each monthly disbursement to the
5municipalities, shall prepare and certify to the State
6Comptroller the amount to be transferred into the Tax
7Compliance and Administration Fund under this Section. Within
810 days after receipt by the Comptroller of the disbursement
9certification to the municipalities and the Tax Compliance and
10Administration Fund provided for in this Section to be given to
11the Comptroller by the Department, the Comptroller shall cause
12the orders to be drawn for the respective amounts in accordance
13with the directions contained in the certification.
14    (f) An ordinance or resolution imposing or discontinuing a
15tax under this Section or effecting a change in the rate
16thereof shall be adopted and a certified copy thereof filed
17with the Department on or before the first day of June,
18whereupon the Department shall proceed to administer and
19enforce this Section as of the first day of September next
20following the adoption and filing.
 
21    Section 900-32. The Illinois Banking Act is amended by
22changing Section 48 as follows:
 
23    (205 ILCS 5/48)
24    Sec. 48. Secretary's powers; duties. The Secretary shall

 

 

10100HB1438sam002- 544 -LRB101 04919 RLC 61359 a

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

 

 

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

 

 

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

 

 

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1        its own premises; and
2            (b) the bank or, after May 31, 1997, branch of the
3        out-of-state bank shall notify the Commissioner of the
4        existence of a service relationship. The notification
5        shall be submitted with the first statement of
6        condition (as required by Section 47 of this Act) due
7        after the making of the service contract or the
8        performance of the service, whichever occurs first.
9        The Commissioner shall be notified of each subsequent
10        contract in the same manner.
11        For purposes of this subsection (2.5), the term "bank
12    services" means services such as sorting and posting of
13    checks and deposits, computation and posting of interest
14    and other credits and charges, preparation and mailing of
15    checks, statements, notices, and similar items, or any
16    other clerical, bookkeeping, accounting, statistical, or
17    similar functions performed for a State bank, including but
18    not limited to electronic data processing related to those
19    bank services.
20        (3) The expense of administering this Act, including
21    the expense of the examinations of State banks as provided
22    in this Act, shall to the extent of the amounts resulting
23    from the fees provided for in paragraphs (a), (a-2), and
24    (b) of this subsection (3) be assessed against and borne by
25    the State banks:
26            (a) Each bank shall pay to the Secretary a Call

 

 

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1        Report Fee which shall be paid in quarterly
2        installments equal to one-fourth of the sum of the
3        annual fixed fee of $800, plus a variable fee based on
4        the assets shown on the quarterly statement of
5        condition delivered to the Secretary in accordance
6        with Section 47 for the preceding quarter according to
7        the following schedule: 16¢ per $1,000 of the first
8        $5,000,000 of total assets, 15¢ per $1,000 of the next
9        $20,000,000 of total assets, 13¢ per $1,000 of the next
10        $75,000,000 of total assets, 9¢ per $1,000 of the next
11        $400,000,000 of total assets, 7¢ per $1,000 of the next
12        $500,000,000 of total assets, and 5¢ per $1,000 of all
13        assets in excess of $1,000,000,000, of the State bank.
14        The Call Report Fee shall be calculated by the
15        Secretary and billed to the banks for remittance at the
16        time of the quarterly statements of condition provided
17        for in Section 47. The Secretary may require payment of
18        the fees provided in this Section by an electronic
19        transfer of funds or an automatic debit of an account
20        of each of the State banks. In case more than one
21        examination of any bank is deemed by the Secretary to
22        be necessary in any examination frequency cycle
23        specified in subsection 2(a) of this Section, and is
24        performed at his direction, the Secretary may assess a
25        reasonable additional fee to recover the cost of the
26        additional examination. In lieu of the method and

 

 

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

 

 

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1        electronic data processing services along with the
2        Call Report Fee assessed under paragraph (a) of this
3        subsection (3).
4            (a-3) After May 31, 1997, the reasonable and
5        necessary expenses of the Commissioner during
6        examination of the performance of electronic data
7        processing services under subsection (2.5) at or on
8        behalf of branches of out-of-state banks shall be borne
9        by the out-of-state banks, unless those expenses are
10        borne by the state regulatory authorities that
11        chartered the out-of-state banks, as determined by
12        cooperative agreements between the Commissioner and
13        the state regulatory authorities that chartered the
14        out-of-state banks.
15            (b) "Fiscal year" for purposes of this Section 48
16        is defined as a period beginning July 1 of any year and
17        ending June 30 of the next year. The Commissioner shall
18        receive for each fiscal year, commencing with the
19        fiscal year ending June 30, 1987, a contingent fee
20        equal to the lesser of the aggregate of the fees paid
21        by all State banks under paragraph (a) of subsection
22        (3) for that year, or the amount, if any, whereby the
23        aggregate of the administration expenses, as defined
24        in paragraph (c), for that fiscal year exceeds the sum
25        of the aggregate of the fees payable by all State banks
26        for that year under paragraph (a) of subsection (3),

 

 

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

 

 

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

 

 

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1        budget appropriated reserves for accrued vacation and
2        accrued sick leave that is required to be paid to
3        employees of the Commissioner upon termination of
4        their service with the Commissioner in an amount that
5        is more than is reasonably anticipated to be necessary
6        for any anticipated turnover in employees, whether due
7        to normal attrition or due to layoffs, terminations, or
8        resignations.
9            (d) The aggregate of all fees collected by the
10        Secretary under this Act, the Corporate Fiduciary Act,
11        or the Foreign Banking Office Act on and after July 1,
12        1979, shall be paid promptly after receipt of the same,
13        accompanied by a detailed statement thereof, into the
14        State treasury and shall be set apart in a special fund
15        to be known as the "Bank and Trust Company Fund",
16        except as provided in paragraph (c) of subsection (11)
17        of this Section. All earnings received from
18        investments of funds in the Bank and Trust Company Fund
19        shall be deposited in the Bank and Trust Company Fund
20        and may be used for the same purposes as fees deposited
21        in that Fund. The amount from time to time deposited
22        into the Bank and Trust Company Fund shall be used: (i)
23        to offset the ordinary administrative expenses of the
24        Secretary as defined in this Section or (ii) as a
25        credit against fees under paragraph (d-1) of this
26        subsection (3). Nothing in this amendatory Act of 1979

 

 

10100HB1438sam002- 554 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 555 -LRB101 04919 RLC 61359 a

1        that fiscal year from that Fund to the General Revenue
2        Fund in order to help defray the State's operating
3        costs for the fiscal year. Notwithstanding provisions
4        in the State Finance Act, as now or hereafter amended,
5        or any other law to the contrary, the total sum
6        transferred during any fiscal year through January 10,
7        2011, from the Bank and Trust Company Fund to the
8        General Revenue Fund pursuant to this provision shall
9        not exceed during any fiscal year 10% of the revenues
10        to be deposited into the Bank and Trust Company Fund
11        during that fiscal year. The State Treasurer and
12        Comptroller shall transfer the amounts designated
13        under this Section as soon as may be practicable after
14        receiving the direction to transfer from the Governor.
15            (d-1) Adequate funds shall be available in the Bank
16        and Trust Company Fund to permit the timely payment of
17        administration expenses. In each fiscal year the total
18        administration expenses shall be deducted from the
19        total fees collected by the Commissioner and the
20        remainder transferred into the Cash Flow Reserve
21        Account, unless the balance of the Cash Flow Reserve
22        Account prior to the transfer equals or exceeds
23        one-fourth of the total initial appropriations from
24        the Bank and Trust Company Fund for the subsequent
25        year, in which case the remainder shall be credited to
26        State banks and foreign banking corporations and

 

 

10100HB1438sam002- 556 -LRB101 04919 RLC 61359 a

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

 

 

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1        certifications of any public record in his keeping.
2            (f) In addition to fees authorized elsewhere in
3        this Act, the Commissioner may, in connection with a
4        review, approval, or provision of a service, levy a
5        reasonable charge to recover the cost of the review,
6        approval, or service.
7        (4) Nothing contained in this Act shall be construed to
8    limit the obligation relative to examinations and reports
9    of any State bank, deposits in which are to any extent
10    insured by the United States or any agency thereof, nor to
11    limit in any way the powers of the Commissioner with
12    reference to examinations and reports of that bank.
13        (5) The nature and condition of the assets in or
14    investment of any bonus, pension, or profit sharing plan
15    for officers or employees of every State bank or, after May
16    31, 1997, branch of an out-of-state bank shall be deemed to
17    be included in the affairs of that State bank or branch of
18    an out-of-state bank subject to examination by the
19    Commissioner under the provisions of subsection (2) of this
20    Section, and if the Commissioner shall find from an
21    examination that the condition of or operation of the
22    investments or assets of the plan is unlawful, fraudulent,
23    or unsafe, or that any trustee has abused his trust, the
24    Commissioner shall, if the situation so found by the
25    Commissioner shall not be corrected to his satisfaction
26    within 60 days after the Commissioner has given notice to

 

 

10100HB1438sam002- 558 -LRB101 04919 RLC 61359 a

1    the board of directors of the State bank or out-of-state
2    bank of his findings, report the facts to the Attorney
3    General who shall thereupon institute proceedings against
4    the State bank or out-of-state bank, the board of directors
5    thereof, or the trustees under such plan as the nature of
6    the case may require.
7        (6) The Commissioner shall have the power:
8            (a) To promulgate reasonable rules for the purpose
9        of administering the provisions of this Act.
10            (a-5) To impose conditions on any approval issued
11        by the Commissioner if he determines that the
12        conditions are necessary or appropriate. These
13        conditions shall be imposed in writing and shall
14        continue in effect for the period prescribed by the
15        Commissioner.
16            (b) To issue orders against any person, if the
17        Commissioner has reasonable cause to believe that an
18        unsafe or unsound banking practice has occurred, is
19        occurring, or is about to occur, if any person has
20        violated, is violating, or is about to violate any law,
21        rule, or written agreement with the Commissioner, or
22        for the purpose of administering the provisions of this
23        Act and any rule promulgated in accordance with this
24        Act.
25            (b-1) To enter into agreements with a bank
26        establishing a program to correct the condition of the

 

 

10100HB1438sam002- 559 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 560 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 561 -LRB101 04919 RLC 61359 a

1    and sound operation of the State bank, the Secretary may
2    issue an order prohibiting that person from further service
3    with a bank or any subsidiary or bank holding company of
4    the bank as a director, officer, employee, or agent. An
5    order issued pursuant to this subsection shall be served
6    upon the director, officer, employee, or agent. A copy of
7    the order shall be sent to each director of the bank
8    affected by registered mail. A copy of the order shall also
9    be served upon the bank of which he is a director, officer,
10    employee, or agent, whereupon he shall cease to be a
11    director, officer, employee, or agent of that bank. The
12    Secretary may institute a civil action against the
13    director, officer, or agent of the State bank or, after May
14    31, 1997, of the branch of the out-of-state bank against
15    whom any order provided for by this subsection (7) of this
16    Section 48 has been issued, and against the State bank or,
17    after May 31, 1997, out-of-state bank, to enforce
18    compliance with or to enjoin any violation of the terms of
19    the order. Any person who has been the subject of an order
20    of removal or an order of prohibition issued by the
21    Secretary under this subsection or Section 5-6 of the
22    Corporate Fiduciary Act may not thereafter serve as
23    director, officer, employee, or agent of any State bank or
24    of any branch of any out-of-state bank, or of any corporate
25    fiduciary, as defined in Section 1-5.05 of the Corporate
26    Fiduciary Act, or of any other entity that is subject to

 

 

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1    licensure or regulation by the Division of Banking unless
2    the Secretary has granted prior approval in writing.
3        For purposes of this paragraph (7), "bank holding
4    company" has the meaning prescribed in Section 2 of the
5    Illinois Bank Holding Company Act of 1957.
6        (7.5) Notwithstanding the provisions of this Section,
7    the Secretary shall not:
8            (1) issue an order against a State bank or any
9        subsidiary organized under this Act for unsafe or
10        unsound banking practices solely because the entity
11        provides or has provided financial services to a
12        cannabis-related legitimate business;
13            (2) prohibit, penalize, or otherwise discourage a
14        State bank or any subsidiary from providing financial
15        services to a cannabis-related legitimate business
16        solely because the entity provides or has provided
17        financial services to a cannabis-related legitimate
18        business;
19            (3) recommend, incentivize, or encourage a State
20        bank or any subsidiary not to offer financial services
21        to an account holder or to downgrade or cancel the
22        financial services offered to an account holder solely
23        because:
24                (A) the account holder is a manufacturer or
25            producer, or is the owner, operator, or employee of
26            a cannabis-related legitimate business;

 

 

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1                (B) the account holder later becomes an owner
2            or operator of a cannabis-related legitimate
3            business; or
4                (C) the State bank or any subsidiary was not
5            aware that the account holder is the owner or
6            operator of a cannabis-related legitimate
7            business; and
8            (4) take any adverse or corrective supervisory
9        action on a loan made to an owner or operator of:
10                (A) a cannabis-related legitimate business
11            solely because the owner or operator owns or
12            operates a cannabis-related legitimate business;
13            or
14                (B) real estate or equipment that is leased to
15            a cannabis-related legitimate business solely
16            because the owner or operator of the real estate or
17            equipment leased the equipment or real estate to a
18            cannabis-related legitimate business.
19        (8) The Commissioner may impose civil penalties of up
20    to $100,000 against any person for each violation of any
21    provision of this Act, any rule promulgated in accordance
22    with this Act, any order of the Commissioner, or any other
23    action which in the Commissioner's discretion is an unsafe
24    or unsound banking practice.
25        (9) The Commissioner may impose civil penalties of up
26    to $100 against any person for the first failure to comply

 

 

10100HB1438sam002- 564 -LRB101 04919 RLC 61359 a

1    with reporting requirements set forth in the report of
2    examination of the bank and up to $200 for the second and
3    subsequent failures to comply with those reporting
4    requirements.
5        (10) All final administrative decisions of the
6    Commissioner hereunder shall be subject to judicial review
7    pursuant to the provisions of the Administrative Review
8    Law. For matters involving administrative review, venue
9    shall be in either Sangamon County or Cook County.
10        (11) The endowment fund for the Illinois Bank
11    Examiners' Education Foundation shall be administered as
12    follows:
13            (a) (Blank).
14            (b) The Foundation is empowered to receive
15        voluntary contributions, gifts, grants, bequests, and
16        donations on behalf of the Illinois Bank Examiners'
17        Education Foundation from national banks and other
18        persons for the purpose of funding the endowment of the
19        Illinois Bank Examiners' Education Foundation.
20            (c) The aggregate of all special educational fees
21        collected by the Secretary and property received by the
22        Secretary on behalf of the Illinois Bank Examiners'
23        Education Foundation under this subsection (11) on or
24        after June 30, 1986, shall be either (i) promptly paid
25        after receipt of the same, accompanied by a detailed
26        statement thereof, into the State Treasury and shall be

 

 

10100HB1438sam002- 565 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 566 -LRB101 04919 RLC 61359 a

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

 

 

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

 

 

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

 

 

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1            authority under this Act; or
2                (ii) engaged or participated in any unsafe or
3            unsound practice;
4            (B) before a civil penalty is assessed under this
5        item (6), the Secretary must make the further
6        reasonable determination, based on objective facts and
7        an accurate assessment of applicable legal standards,
8        that the credit union's action constituting a
9        violation under subparagraph (i) of paragraph (A) of
10        item (6) or an unsafe and unsound practice under
11        subparagraph (ii) of paragraph (A) of item (6):
12                (i) directly resulted in a substantial and
13            material financial loss or created a reasonable
14            probability that a substantial and material
15            financial loss will directly result; or
16                (ii) constituted willful misconduct or a
17            material breach of fiduciary duty of any director,
18            officer, or committee member of the credit union;
19            Material financial loss, as referenced in this
20        paragraph (B), shall be assessed in light of
21        surrounding circumstances and the relative size and
22        nature of the financial loss or probable financial
23        loss. Certain benchmarks shall be used in determining
24        whether financial loss is material, such as a
25        percentage of total assets or total gross income for
26        the immediately preceding 12-month period. Absent

 

 

10100HB1438sam002- 570 -LRB101 04919 RLC 61359 a

1        compelling and extraordinary circumstances, no civil
2        penalty shall be assessed, unless the financial loss or
3        probable financial loss is equal to or greater than
4        either 1% of the credit union's total assets for the
5        immediately preceding 12-month period, or 1% of the
6        credit union's total gross income for the immediately
7        preceding 12-month period, whichever is less;
8            (C) before a civil penalty is assessed under this
9        item (6), the credit union must be expressly advised in
10        writing of the:
11                (i) specific violation that could subject it
12            to a penalty under this item (6); and
13                (ii) the specific remedial action to be taken
14            within a specific and reasonable time frame to
15            avoid imposition of the penalty;
16            (D) Civil penalties assessed under this item (6)
17        shall be remedial, not punitive, and reasonably
18        tailored to ensure future compliance by the credit
19        union with the provisions of this Act and any rules
20        adopted pursuant to this Act;
21            (E) a credit union's failure to take timely
22        remedial action with respect to the specific violation
23        may result in the issuance of an order assessing a
24        civil penalty up to the following maximum amount, based
25        upon the total assets of the credit union:
26                (i) Credit unions with assets of less than $10

 

 

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

 

 

10100HB1438sam002- 572 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 573 -LRB101 04919 RLC 61359 a

1    effective and efficient supervision of Illinois chartered
2    credit unions.
3        (12) Notwithstanding the provisions of this Section,
4    the Secretary shall not:
5            (1) issue an order against a credit union organized
6        under this Act for unsafe or unsound banking practices
7        solely because the entity provides or has provided
8        financial services to a cannabis-related legitimate
9        business;
10            (2) prohibit, penalize, or otherwise discourage a
11        credit union from providing financial services to a
12        cannabis-related legitimate business solely because
13        the entity provides or has provided financial services
14        to a cannabis-related legitimate business;
15            (3) recommend, incentivize, or encourage a credit
16        union not to offer financial services to an account
17        holder or to downgrade or cancel the financial services
18        offered to an account holder solely 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 credit union was not aware that the
26            account holder is the owner or operator of a

 

 

10100HB1438sam002- 574 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 575 -LRB101 04919 RLC 61359 a

1the Department, stating:
2        (1) The name of the taxpayer;
3        (2) The number of ounces of medical cannabis sold to a
4    dispensary organization or a registered qualifying patient
5    during the preceding calendar month;
6        (3) The amount of tax due;
7        (4) The signature of the taxpayer; and
8        (5) Such other reasonable information as the
9    Department may require.
10    If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14    The taxpayer shall remit the amount of the tax due to the
15Department at the time the taxpayer files his or her return.
16    (b) Beginning on the effective date of this amendatory Act
17of the 101st General Assembly, Section 65-20 of the Cannabis
18Regulation and Tax Act shall apply to returns filed and taxes
19paid under this Act to the same extent as if those provisions
20were set forth in full in this Section.
21(Source: P.A. 98-122, eff. 1-1-14.)
 
22    Section 900-38. The Illinois Vehicle Code is amended by
23changing Sections 2-118.2, 11-501.2, 11-501.9, and 11-502.1
24and by adding Sections 11-501.10 and 11-502.15 as follows:
 

 

 

10100HB1438sam002- 576 -LRB101 04919 RLC 61359 a

1    (625 ILCS 5/2-118.2)
2    Sec. 2-118.2. Opportunity for hearing; medical
3cannabis-related suspension under Section 11-501.9.
4    (a) A suspension of driving privileges under Section
511-501.9 of this Code shall not become effective until the
6person is notified in writing of the impending suspension and
7informed that he or she may request a hearing in the circuit
8court of venue under subsection (b) of this Section and the
9suspension shall become effective as provided in Section
1011-501.9.
11    (b) Within 90 days after the notice of suspension served
12under Section 11-501.9, the person may make a written request
13for a judicial hearing in the circuit court of venue. The
14request to the circuit court shall state the grounds upon which
15the person seeks to have the suspension rescinded. Within 30
16days after receipt of the written request or the first
17appearance date on the Uniform Traffic Ticket issued for a
18violation of Section 11-501 of this Code, or a similar
19provision of a local ordinance, the hearing shall be conducted
20by the circuit court having jurisdiction. This judicial
21hearing, request, or process shall not stay or delay the
22suspension. The hearing shall proceed in the court in the same
23manner as in other civil proceedings.
24    The hearing may be conducted upon a review of the law
25enforcement officer's own official reports; provided however,
26that the person may subpoena the officer. Failure of the

 

 

10100HB1438sam002- 577 -LRB101 04919 RLC 61359 a

1officer to answer the subpoena shall be considered grounds for
2a continuance if in the court's discretion the continuance is
3appropriate.
4    The scope of the hearing shall be limited to the issues of:
5        (1) Whether the person was issued a registry
6    identification card under the Compassionate Use of Medical
7    Cannabis Pilot Program Act; and
8        (1) (2) Whether the officer had reasonable suspicion to
9    believe that the person was driving or in actual physical
10    control of a motor vehicle upon a highway while impaired by
11    the use of cannabis; and
12        (2) (3) Whether the person, after being advised by the
13    officer that the privilege to operate a motor vehicle would
14    be suspended if the person refused to submit to and
15    complete the field sobriety tests, did refuse to submit to
16    or complete the field sobriety tests authorized under
17    Section 11-501.9; and
18        (3) (4) Whether the person after being advised by the
19    officer that the privilege to operate a motor vehicle would
20    be suspended if the person submitted to field sobriety
21    tests that disclosed the person was impaired by the use of
22    cannabis, did submit to field sobriety tests that disclosed
23    that the person was impaired by the use of cannabis.
24    Upon the conclusion of the judicial hearing, the circuit
25court shall sustain or rescind the suspension and immediately
26notify the Secretary of State. Reports received by the

 

 

10100HB1438sam002- 578 -LRB101 04919 RLC 61359 a

1Secretary of State under this Section shall be privileged
2information and for use only by the courts, police officers,
3and Secretary of State.
4(Source: P.A. 98-1172, eff. 1-12-15.)
 
5    (625 ILCS 5/11-501.2)  (from Ch. 95 1/2, par. 11-501.2)
6    Sec. 11-501.2. Chemical and other tests.
7    (a) Upon the trial of any civil or criminal action or
8proceeding arising out of an arrest for an offense as defined
9in Section 11-501 or a similar local ordinance or proceedings
10pursuant to Section 2-118.1, evidence of the concentration of
11alcohol, other drug or drugs, or intoxicating compound or
12compounds, or any combination thereof in a person's blood or
13breath at the time alleged, as determined by analysis of the
14person's blood, urine, breath, or other bodily substance, shall
15be admissible. Where such test is made the following provisions
16shall apply:
17        1. Chemical analyses of the person's blood, urine,
18    breath, or other bodily substance to be considered valid
19    under the provisions of this Section shall have been
20    performed according to standards promulgated by the
21    Department of State Police by a licensed physician,
22    registered nurse, trained phlebotomist, licensed
23    paramedic, or other individual possessing a valid permit
24    issued by that Department for this purpose. The Director of
25    State Police is authorized to approve satisfactory

 

 

10100HB1438sam002- 579 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 580 -LRB101 04919 RLC 61359 a

1    direction of the physician, or licensed paramedic. The law
2    enforcement officer requesting the test shall take custody
3    of the blood sample, and the blood sample shall be analyzed
4    by a laboratory certified by the Department of State Police
5    for that purpose.
6        3. The person tested may have a physician, or a
7    qualified technician, chemist, registered nurse, or other
8    qualified person of their own choosing administer a
9    chemical test or tests in addition to any administered at
10    the direction of a law enforcement officer. The failure or
11    inability to obtain an additional test by a person shall
12    not preclude the admission of evidence relating to the test
13    or tests taken at the direction of a law enforcement
14    officer.
15        4. Upon the request of the person who shall submit to a
16    chemical test or tests at the request of a law enforcement
17    officer, full information concerning the test or tests
18    shall be made available to the person or such person's
19    attorney.
20        5. Alcohol concentration shall mean either grams of
21    alcohol per 100 milliliters of blood or grams of alcohol
22    per 210 liters of breath.
23        6. Tetrahydrocannabinol concentration means either 5
24    nanograms or more of delta-9-tetrahydrocannabinol per
25    milliliter of whole blood or 10 nanograms or more of
26    delta-9-tetrahydrocannabinol per milliliter of other

 

 

10100HB1438sam002- 581 -LRB101 04919 RLC 61359 a

1    bodily substance.
2    (a-5) Law enforcement officials may use validated roadside
3chemical tests or standardized field sobriety tests approved by
4the National Highway Traffic Safety Administration when
5conducting investigations of a violation of Section 11-501 or
6similar local ordinance by drivers suspected of driving under
7the influence of cannabis. The General Assembly finds that (i)
8validated roadside chemical tests are effective means to
9determine if a person is under the influence of cannabis and
10(ii) standardized field sobriety tests approved by the National
11Highway Traffic Safety Administration are divided attention
12tasks that are intended to determine if a person is under the
13influence of cannabis. The purpose of these tests is to
14determine the effect of the use of cannabis on a person's
15capacity to think and act with ordinary care and therefore
16operate a motor vehicle safely. Therefore, the results of these
17validated roadside chemical tests and standardized field
18sobriety tests, appropriately administered, shall be
19admissible in the trial of any civil or criminal action or
20proceeding arising out of an arrest for a cannabis-related
21offense as defined in Section 11-501 or a similar local
22ordinance or proceedings under Section 2-118.1 or 2-118.2.
23Where a test is made the following provisions shall apply:
24        1. The person tested may have a physician, or a
25    qualified technician, chemist, registered nurse, or other
26    qualified person of their own choosing administer a

 

 

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1    chemical test or tests in addition to the standardized
2    field sobriety test or tests administered at the direction
3    of a law enforcement officer. The failure or inability to
4    obtain an additional test by a person does not preclude the
5    admission of evidence relating to the test or tests taken
6    at the direction of a law enforcement officer.
7        2. Upon the request of the person who shall submit to
8    validated roadside chemical tests or a standardized field
9    sobriety test or tests at the request of a law enforcement
10    officer, full information concerning the test or tests
11    shall be made available to the person or the person's
12    attorney.
13        3. At the trial of any civil or criminal action or
14    proceeding arising out of an arrest for an offense as
15    defined in Section 11-501 or a similar local ordinance or
16    proceedings under Section 2-118.1 or 2-118.2 in which the
17    results of these validated roadside chemical tests or
18    standardized field sobriety tests are admitted, the person
19    cardholder may present and the trier of fact may consider
20    evidence that the person card holder lacked the physical
21    capacity to perform the validated roadside chemical tests
22    or standardized field sobriety tests.
23    (b) Upon the trial of any civil or criminal action or
24proceeding arising out of acts alleged to have been committed
25by any person while driving or in actual physical control of a
26vehicle while under the influence of alcohol, the concentration

 

 

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

 

 

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

 

 

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1consent to these tests, if a law enforcement officer has
2probable cause to believe that a motor vehicle driven by or in
3actual physical control of a person under the influence of
4alcohol, other drug or drugs, or intoxicating compound or
5compounds, or any combination thereof has caused the death or
6personal injury to another, the law enforcement officer shall
7request, and that person shall submit, upon the request of a
8law enforcement officer, to a chemical test or tests of his or
9her blood, breath, other bodily substance, or urine for the
10purpose of determining the alcohol content thereof or the
11presence of any other drug or combination of both.
12    This provision does not affect the applicability of or
13imposition of driver's license sanctions under Section
1411-501.1 of this Code.
15    3. For purposes of this Section, a personal injury includes
16any Type A injury as indicated on the traffic accident report
17completed by a law enforcement officer that requires immediate
18professional attention in either a doctor's office or a medical
19facility. A Type A injury includes severe bleeding wounds,
20distorted extremities, and injuries that require the injured
21party to be carried from the scene.
22    (d) If a person refuses validated roadside chemical tests
23or standardized field sobriety tests under Section 11-501.9 of
24this Code, evidence of refusal shall be admissible in any civil
25or criminal action or proceeding arising out of acts committed
26while the person was driving or in actual physical control of a

 

 

10100HB1438sam002- 586 -LRB101 04919 RLC 61359 a

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

 

 

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1subsection (a-5) of Section 11-501.2 of this Code, if detained
2by a law enforcement officer who has a reasonable suspicion
3that the person is driving or is in actual physical control of
4a motor vehicle while impaired by the use of cannabis. The law
5enforcement officer must have an independent, cannabis-related
6factual basis giving reasonable suspicion that the person is
7driving or in actual physical control of a motor vehicle while
8impaired by the use of cannabis for conducting validated
9roadside chemical tests or standardized field sobriety tests,
10which shall be included with the results of the validated
11roadside chemical tests and field sobriety tests in any report
12made by the law enforcement officer who requests the test. The
13person's possession of a registry identification card issued
14under the Compassionate Use of Medical Cannabis Pilot Program
15Act alone is not a sufficient basis for reasonable suspicion.
16    For purposes of this Section, a law enforcement officer of
17this State who is investigating a person for an offense under
18Section 11-501 of this Code may travel into an adjoining state
19where the person has been transported for medical care to
20complete an investigation and to request that the person submit
21to field sobriety tests under this Section.
22    (b) A person who is unconscious, or otherwise in a
23condition rendering the person incapable of refusal, shall be
24deemed to have withdrawn the consent provided by subsection (a)
25of this Section.
26    (c) A person requested to submit to validated roadside

 

 

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

 

 

10100HB1438sam002- 589 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 590 -LRB101 04919 RLC 61359 a

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

 

 

10100HB1438sam002- 591 -LRB101 04919 RLC 61359 a

1ordinance, for the same incident, any period served on
2suspension under this Section shall be credited toward the
3minimum period of revocation of driving privileges imposed
4under Section 6-205 of this Code.
5(Source: P.A. 98-1172, eff. 1-12-15.)
 
6    (625 ILCS 5/11-501.10 new)
7    Sec. 11-501.10. DUI Cannabis Task Force.
8    (a) The DUI Cannabis Task Force is hereby created to study
9the issue of driving under the influence of cannabis. The Task
10Force shall consist of the following members:
11        (1) The Director of State Police, or his or her
12    designee, who shall serve as chair;
13        (2) The Secretary of State, or his or her designee;
14        (3) The President of the Illinois State's Attorneys
15    Association, or his or her designee;
16        (4) The President of the Illinois Association of
17    Criminal Defense Lawyers, or his or her designee;
18        (5) One member appointed by the Speaker of the House of
19    Representatives;
20        (6) One member appointed by the Minority Leader of the
21    House of Representatives;
22        (7) One member appointed by the President of the
23    Senate;
24        (8) One member appointed by the Minority Leader of the
25    Senate;

 

 

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

 

 

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

 

 

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1    the sentence imposed.
2(Source: P.A. 98-122, eff. 1-1-14.)
 
3    (625 ILCS 5/11-502.15 new)
4    Sec. 11-502.15. Possession of adult use cannabis in a motor
5vehicle.
6    (a) No driver may use cannabis within the passenger area of
7any motor vehicle upon a highway in this State.
8    (b) No driver may possess cannabis within any area of any
9motor vehicle upon a highway in this State except in a sealed,
10odor-proof, child-resistant cannabis container.
11    (c) No passenger may possess cannabis within any passenger
12area of any motor vehicle upon a highway in this State except
13in a sealed, odor-proof, child-resistant cannabis container.
14    (d) Any person who knowingly violates subsection (a), (b),
15or (c) of this Section commits a Class A misdemeanor.
 
16    Section 900-39. The Juvenile Court Act of 1987 is amended
17by changing Section 5-401 as follows:
 
18    (705 ILCS 405/5-401)
19    Sec. 5-401. Arrest and taking into custody of a minor.
20    (1) A law enforcement officer may, without a warrant,
21        (a) arrest a minor whom the officer with probable cause
22    believes to be a delinquent minor; or
23        (b) take into custody a minor who has been adjudged a

 

 

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1    ward of the court and has escaped from any commitment
2    ordered by the court under this Act; or
3        (c) take into custody a minor whom the officer
4    reasonably believes has violated the conditions of
5    probation or supervision ordered by the court.
6    (2) Whenever a petition has been filed under Section 5-520
7and the court finds that the conduct and behavior of the minor
8may endanger the health, person, welfare, or property of the
9minor or others or that the circumstances of his or her home
10environment may endanger his or her health, person, welfare or
11property, a warrant may be issued immediately to take the minor
12into custody.
13    (3) Except for minors accused of violation of an order of
14the court, any minor accused of any act under federal or State
15law, or a municipal or county ordinance that would not be
16illegal if committed by an adult, cannot be placed in a jail,
17municipal lockup, detention center, or secure correctional
18facility. Juveniles accused with underage consumption and
19underage possession of alcohol or cannabis cannot be placed in
20a jail, municipal lockup, detention center, or correctional
21facility.
22(Source: P.A. 90-590, eff. 1-1-99.)
 
23    Section 900-40. The Cannabis Control Act is amended by
24changing Sections 4, 5, 5.1, 5.3, and 8 as follows:
 

 

 

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1    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
2    Sec. 4. Except as otherwise provided in the Cannabis
3Regulation and Tax Act, it It is unlawful for any person
4knowingly to possess cannabis.
5Any person who violates this Section section with respect to:
6        (a) not more than 10 grams of any substance containing
7    cannabis is guilty of a civil law violation punishable by a
8    minimum fine of $100 and a maximum fine of $200. The
9    proceeds of the fine shall be payable to the clerk of the
10    circuit court. Within 30 days after the deposit of the
11    fine, the clerk shall distribute the proceeds of the fine
12    as follows:
13            (1) $10 of the fine to the circuit clerk and $10 of
14        the fine to the law enforcement agency that issued the
15        citation; the proceeds of each $10 fine distributed to
16        the circuit clerk and each $10 fine distributed to the
17        law enforcement agency that issued the citation for the
18        violation shall be used to defer the cost of automatic
19        expungements under paragraph (2.5) of subsection (a)
20        of Section 5.2 of the Criminal Identification Act;
21            (2) $15 to the county to fund drug addiction
22        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

 

 

10100HB1438sam002- 597 -LRB101 04919 RLC 61359 a

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

 

 

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

 

 

10100HB1438sam002- 599 -LRB101 04919 RLC 61359 a

1    (f) more than 2,000 grams but not more than 5,000 grams of
2any substance containing cannabis is guilty of a Class 1 felony
3for which a fine not to exceed $150,000 may be imposed;
4    (g) more than 5,000 grams of any substance containing
5cannabis is guilty of a Class X felony for which a fine not to
6exceed $200,000 may be imposed.
7(Source: P.A. 90-397, eff. 8-15-97.)
 
8    (720 ILCS 550/5.1)  (from Ch. 56 1/2, par. 705.1)
9    Sec. 5.1. Cannabis Trafficking.
10    (a) Except for purposes authorized by this Act or the
11Cannabis Regulation and Tax Act, any person who knowingly
12brings or causes to be brought into this State for the purpose
13of manufacture or delivery or with the intent to manufacture or
14deliver 2,500 grams or more of cannabis in this State or any
15other state or country is guilty of cannabis trafficking.
16    (b) A person convicted of cannabis trafficking shall be
17sentenced to a term of imprisonment not less than twice the
18minimum term and fined an amount as authorized by subsection
19(f) or (g) of Section 5 of this Act, based upon the amount of
20cannabis brought or caused to be brought into this State, and
21not more than twice the maximum term of imprisonment and fined
22twice the amount as authorized by subsection (f) or (g) of
23Section 5 of this Act, based upon the amount of cannabis
24brought or caused to be brought into this State.
25(Source: P.A. 90-397, eff. 8-15-97.)
 

 

 

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1    (720 ILCS 550/5.3)
2    Sec. 5.3. Unlawful use of cannabis-based product
3manufacturing equipment.
4    (a) A person commits unlawful use of cannabis-based product
5manufacturing equipment when he or she knowingly engages in the
6possession, procurement, transportation, storage, or delivery
7of any equipment used in the manufacturing of any
8cannabis-based product using volatile or explosive gas,
9including, but not limited to, canisters of butane gas, with
10the intent to manufacture, compound, covert, produce, derive,
11process, or prepare either directly or indirectly any
12cannabis-based product.
13    (b) This Section does not apply to a cultivation center or
14cultivation center agent that prepares medical cannabis or
15cannabis-infused products in compliance with the Compassionate
16Use of Medical Cannabis Pilot Program Act and Department of
17Public Health and Department of Agriculture rules.
18    (c) Sentence. A person who violates this Section is guilty
19of a Class 2 felony.
20    (d) This Section does not apply to craft growers,
21cultivation centers, and infuser organizations licensed under
22the Cannabis Regulation and Tax Act.
23    (e) This Section does not apply to manufacturers of
24cannabis-based product manufacturing equipment or transporting
25organizations with documentation identifying the seller and

 

 

10100HB1438sam002- 601 -LRB101 04919 RLC 61359 a

1purchaser of the equipment if the seller or purchaser is a
2craft grower, cultivation center, or infuser organization
3licensed under the Cannabis Regulation and Tax Act.
4(Source: P.A. 99-697, eff. 7-29-16.)
 
5    (720 ILCS 550/8)  (from Ch. 56 1/2, par. 708)
6    Sec. 8. Except as otherwise provided in the Cannabis
7Regulation and Tax Act, it It is unlawful for any person
8knowingly to produce the Cannabis cannabis sativa plant or to
9possess such plants unless production or possession has been
10authorized pursuant to the provisions of Section 11 or 15.2 of
11the Act. Any person who violates this Section with respect to
12production or possession of:
13    (a) Not more than 5 plants is guilty of a civil violation
14punishable by a minimum fine of $100 and a maximum fine of
15$200. The proceeds of the fine are payable to the clerk of the
16circuit court. Within 30 days after the deposit of the fine,
17the clerk shall distribute the proceeds of the fine as follows:
18        (1) $10 of the fine to the circuit clerk and $10 of the
19    fine to the law enforcement agency that issued the
20    citation; the proceeds of each $10 fine distributed to the
21    circuit clerk and each $10 fine distributed to the law
22    enforcement agency that issued the citation for the
23    violation shall be used to defer the cost of automatic
24    expungements under paragraph (2.5) of subsection (a) of
25    Section 5.2 of the Criminal Identification Act;

 

 

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1        (2) $15 to the county to fund drug addiction services;
2        (3) $10 to the Office of the State's Attorneys
3    Appellate Prosecutor for use in training programs;
4        (4) $10 to the State's Attorney; and
5        (5) any remainder of the fine to the law enforcement
6    agency that issued the citation for the violation.
7    With respect to funds designated for the Department of
8State Police, the moneys shall be remitted by the circuit court
9clerk to the Department of State Police within one month after
10receipt for deposit into the State Police Operations Assistance
11Fund. With respect to funds designated for the Department of
12Natural Resources, the Department of Natural Resources shall
13deposit the moneys into the Conservation Police Operations
14Assistance Fund. Class A misdemeanor.
15    (b) More than 5, but not more than 20 plants, is guilty of
16a Class 4 felony.
17    (c) More than 20, but not more than 50 plants, is guilty of
18a Class 3 felony.
19    (d) More than 50, but not more than 200 plants, is guilty
20of a Class 2 felony for which a fine not to exceed $100,000 may
21be imposed and for which liability for the cost of conducting
22the investigation and eradicating such plants may be assessed.
23Compensation for expenses incurred in the enforcement of this
24provision shall be transmitted to and deposited in the
25treasurer's office at the level of government represented by
26the Illinois law enforcement agency whose officers or employees

 

 

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1conducted the investigation or caused the arrest or arrests
2leading to the prosecution, to be subsequently made available
3to that law enforcement agency as expendable receipts for use
4in the enforcement of laws regulating controlled substances and
5cannabis. If such seizure was made by a combination of law
6enforcement personnel representing different levels of
7government, the court levying the assessment shall determine
8the allocation of such assessment. The proceeds of assessment
9awarded to the State treasury shall be deposited in a special
10fund known as the Drug Traffic Prevention Fund.
11    (e) More than 200 plants is guilty of a Class 1 felony for
12which a fine not to exceed $100,000 may be imposed and for
13which liability for the cost of conducting the investigation
14and eradicating such plants may be assessed. Compensation for
15expenses incurred in the enforcement of this provision shall be
16transmitted to and deposited in the treasurer's office at the
17level of government represented by the Illinois law enforcement
18agency whose officers or employees conducted the investigation
19or caused the arrest or arrests leading to the prosecution, to
20be subsequently made available to that law enforcement agency
21as expendable receipts for use in the enforcement of laws
22regulating controlled substances and cannabis. If such seizure
23was made by a combination of law enforcement personnel
24representing different levels of government, the court levying
25the assessment shall determine the allocation of such
26assessment. The proceeds of assessment awarded to the State

 

 

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1treasury shall be deposited in a special fund known as the Drug
2Traffic Prevention Fund.
3(Source: P.A. 98-1072, eff. 1-1-15.)
 
4    Section 900-42. The Code of Civil Procedure is amended by
5changing Section 2-1401 as follows:
 
6    (735 ILCS 5/2-1401)  (from Ch. 110, par. 2-1401)
7    Sec. 2-1401. Relief from judgments.
8    (a) Relief from final orders and judgments, after 30 days
9from the entry thereof, may be had upon petition as provided in
10this Section. Writs of error coram nobis and coram vobis, bills
11of review and bills in the nature of bills of review are
12abolished. All relief heretofore obtainable and the grounds for
13such relief heretofore available, whether by any of the
14foregoing remedies or otherwise, shall be available in every
15case, by proceedings hereunder, regardless of the nature of the
16order or judgment from which relief is sought or of the
17proceedings in which it was entered. Except as provided in the
18Illinois Parentage Act of 2015, there shall be no distinction
19between actions and other proceedings, statutory or otherwise,
20as to availability of relief, grounds for relief or the relief
21obtainable.
22    (b) The petition must be filed in the same proceeding in
23which the order or judgment was entered but is not a
24continuation thereof. The petition must be supported by

 

 

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1affidavit or other appropriate showing as to matters not of
2record. A petition to reopen a foreclosure proceeding must
3include as parties to the petition, but is not limited to, all
4parties in the original action in addition to the current
5record title holders of the property, current occupants, and
6any individual or entity that had a recorded interest in the
7property before the filing of the petition. All parties to the
8petition shall be notified as provided by rule.
9    (b-5) A movant may present a meritorious claim under this
10Section if the allegations in the petition establish each of
11the following by a preponderance of the evidence:
12        (1) the movant was convicted of a forcible felony;
13        (2) the movant's participation in the offense was
14    related to him or her previously having been a victim of
15    domestic violence as perpetrated by an intimate partner;
16        (3) no evidence of domestic violence against the movant
17    was presented at the movant's sentencing hearing;
18        (4) the movant was unaware of the mitigating nature of
19    the evidence of the domestic violence at the time of
20    sentencing and could not have learned of its significance
21    sooner through diligence; and
22        (5) the new evidence of domestic violence against the
23    movant is material and noncumulative to other evidence
24    offered at the sentencing hearing, and is of such a
25    conclusive character that it would likely change the
26    sentence imposed by the original trial court.

 

 

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1    Nothing in this subsection (b-5) shall prevent a movant
2from applying for any other relief under this Section or any
3other law otherwise available to him or her.
4    As used in this subsection (b-5):
5        "Domestic violence" means abuse as defined in Section
6    103 of the Illinois Domestic Violence Act of 1986.
7        "Forcible felony" has the meaning ascribed to the term
8    in Section 2-8 of the Criminal Code of 2012.
9        "Intimate partner" means a spouse or former spouse,
10    persons who have or allegedly have had a child in common,
11    or persons who have or have had a dating or engagement
12    relationship.
13    (c) Except as provided in Section 20b of the Adoption Act
14and Section 2-32 of the Juvenile Court Act of 1987 or in a
15petition based upon Section 116-3 of the Code of Criminal
16Procedure of 1963, or in a motion to vacate and expunge
17convictions under the Cannabis Control Act as provided by
18subsection (i) of Section 5.2 of the Criminal Identification
19Act, the petition must be filed not later than 2 years after
20the entry of the order or judgment. Time during which the
21person seeking relief is under legal disability or duress or
22the ground for relief is fraudulently concealed shall be
23excluded in computing the period of 2 years.
24    (d) The filing of a petition under this Section does not
25affect the order or judgment, or suspend its operation.
26    (e) Unless lack of jurisdiction affirmatively appears from

 

 

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1the record proper, the vacation or modification of an order or
2judgment pursuant to the provisions of this Section does not
3affect the right, title or interest in or to any real or
4personal property of any person, not a party to the original
5action, acquired for value after the entry of the order or
6judgment but before the filing of the petition, nor affect any
7right of any person not a party to the original action under
8any certificate of sale issued before the filing of the
9petition, pursuant to a sale based on the order or judgment.
10When a petition is filed pursuant to this Section to reopen a
11foreclosure proceeding, notwithstanding the provisions of
12Section 15-1701 of this Code, the purchaser or successor
13purchaser of real property subject to a foreclosure sale who
14was not a party to the mortgage foreclosure proceedings is
15entitled to remain in possession of the property until the
16foreclosure action is defeated or the previously foreclosed
17defendant redeems from the foreclosure sale if the purchaser
18has been in possession of the property for more than 6 months.
19    (f) Nothing contained in this Section affects any existing
20right to relief from a void order or judgment, or to employ any
21existing method to procure that relief.
22(Source: P.A. 99-85, eff. 1-1-16; 99-384, eff. 1-1-16; 99-642,
23eff. 7-28-16; 100-1048, eff. 8-23-18.)
 
24    Section 900-45. The Condominium Property Act is amended by
25adding Section 33 as follows:
 

 

 

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1    (765 ILCS 605/33 new)
2    Sec. 33. Limitations on the use of smoking cannabis. The
3condominium instruments of an association may prohibit or limit
4the smoking of cannabis, as the term "smoking" is defined in
5the Cannabis Regulation and Tax Act, within a unit owner's
6unit. The condominium instruments and rules and regulations
7shall not otherwise restrict the consumption of cannabis by any
8other method within a unit owner's unit, or the limited common
9elements, but may restrict any form of consumption on the
10common elements.
 
11    Section 900-50. The Right to Privacy in the Workplace Act
12is amended by changing Section 5 as follows:
 
13    (820 ILCS 55/5)  (from Ch. 48, par. 2855)
14    Sec. 5. Discrimination for use of lawful products
15prohibited.
16    (a) Except as otherwise specifically provided by law,
17including Section 10-50 of the Cannabis Regulation and Tax Act,
18and except as provided in subsections (b) and (c) of this
19Section, it shall be unlawful for an employer to refuse to hire
20or to discharge any individual, or otherwise disadvantage any
21individual, with respect to compensation, terms, conditions or
22privileges of employment because the individual uses lawful
23products off the premises of the employer during nonworking and

 

 

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1non-call hours. As used in this Section, "lawful products"
2means products that are legal under state law. For purposes of
3this Section, an employee is deemed on-call when the employee
4is scheduled with at least 24 hours' notice by his or her
5employer to be on standby or otherwise responsible for
6performing tasks related to his or her employment either at the
7employer's premises or other previously designated location by
8his or her employer or supervisor to perform a work-related
9task. hours.
10    (b) This Section does not apply to any employer that is a
11non-profit organization that, as one of its primary purposes or
12objectives, discourages the use of one or more lawful products
13by the general public. This Section does not apply to the use
14of those lawful products which impairs an employee's ability to
15perform the employee's assigned duties.
16    (c) It is not a violation of this Section for an employer
17to offer, impose or have in effect a health, disability or life
18insurance policy that makes distinctions between employees for
19the type of coverage or the price of coverage based upon the
20employees' use of lawful products provided that:
21        (1) differential premium rates charged employees
22    reflect a differential cost to the employer; and
23        (2) employers provide employees with a statement
24    delineating the differential rates used by insurance
25    carriers.
26(Source: P.A. 87-807.)
 

 

 

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1
ARTICLE 999.
2
MISCELLANEOUS PROVISIONS

 
3    Section 999-95. No acceleration or delay. Where this Act
4makes changes in a statute that is represented in this Act by
5text that is not yet or no longer in effect (for example, a
6Section represented by multiple versions), the use of that text
7does not accelerate or delay the taking effect of (i) the
8changes made by this Act or (ii) provisions derived from any
9other Public Act.
 
10    Section 999-99. Effective date. This Act takes effect upon
11becoming law.".