SB1557 EnrolledLRB101 08168 SMS 53234 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. The State Officials and Employees Ethics Act is
5amended by changing Section 5-45 as follows:
 
6    (5 ILCS 430/5-45)
7    Sec. 5-45. Procurement; revolving door prohibition.
8    (a) No former officer, member, or State employee, or spouse
9or immediate family member living with such person, shall,
10within a period of one year immediately after termination of
11State employment, knowingly accept employment or receive
12compensation or fees for services from a person or entity if
13the officer, member, or State employee, during the year
14immediately preceding termination of State employment,
15participated personally and substantially in the award of State
16contracts, or the issuance of State contract change orders,
17with a cumulative value of $25,000 or more to the person or
18entity, or its parent or subsidiary.
19    (a-5) No officer, member, or spouse or immediate family
20member living with such person shall, during the officer or
21member's term in office or within a period of 2 years
22immediately leaving office, hold an ownership interest, other
23than a passive interest in a publicly traded company, in any

 

 

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1gaming license under the Illinois Gambling Act, the Video
2Gaming Act, the Illinois Horse Racing Act of 1975, or the
3Sports Wagering Act. Any member of the General Assembly or
4spouse or immediate family member living with such person who
5has an ownership interest, other than a passive interest in a
6publicly traded company, in any gaming license under the
7Illinois Gambling Act, the Illinois Horse Racing Act of 1975,
8the Video Gaming Act, or the Sports Wagering Act at the time of
9the effective date of this amendatory Act of the 101st General
10Assembly shall divest himself or herself of such ownership
11within one year after the effective date of this amendatory Act
12of the 101st General Assembly. No State employee who works for
13the Illinois Gaming Board or Illinois Racing Board or spouse or
14immediate family member living with such person shall, during
15State employment or within a period of 2 years immediately
16after termination of State employment, hold an ownership
17interest, other than a passive interest in a publicly traded
18company, in any gaming license under the Illinois Gambling Act,
19the Video Gaming Act, the Illinois Horse Racing Act of 1975, or
20the Sports Wagering Act.
21    (a-10) This subsection (a-10) applies on and after June 25,
222021. No officer, member, or spouse or immediate family member
23living with such person, shall, during the officer or member's
24term in office or within a period of 2 years immediately after
25leaving office, hold an ownership interest, other than a
26passive interest in a publicly traded company, in any cannabis

 

 

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1business establishment which is licensed under the Cannabis
2Regulation and Tax Act. Any member of the General Assembly or
3spouse or immediate family member living with such person who
4has an ownership interest, other than a passive interest in a
5publicly traded company, in any cannabis business
6establishment which is licensed under the Cannabis Regulation
7and Tax Act at the time of the effective date of this
8amendatory Act of the 101st General Assembly shall divest
9himself or herself of such ownership within one year after the
10effective date of this amendatory Act of the 101st General
11Assembly.
12    No State employee who works for any State agency that
13regulates cannabis business establishment license holders who
14participated personally and substantially in the award of
15licenses under the Cannabis Regulation and Tax Act or a spouse
16or immediate family member living with such person shall,
17during State employment or within a period of 2 years
18immediately after termination of State employment, hold an
19ownership interest, other than a passive interest in a publicly
20traded company, in any cannabis license under the Cannabis
21Regulation and Tax Act.
22    (b) No former officer of the executive branch or State
23employee of the executive branch with regulatory or licensing
24authority, or spouse or immediate family member living with
25such person, shall, within a period of one year immediately
26after termination of State employment, knowingly accept

 

 

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1employment or receive compensation or fees for services from a
2person or entity if the officer or State employee, during the
3year immediately preceding termination of State employment,
4participated personally and substantially in making a
5regulatory or licensing decision that directly applied to the
6person or entity, or its parent or subsidiary.
7    (c) Within 6 months after the effective date of this
8amendatory Act of the 96th General Assembly, each executive
9branch constitutional officer and legislative leader, the
10Auditor General, and the Joint Committee on Legislative Support
11Services shall adopt a policy delineating which State positions
12under his or her jurisdiction and control, by the nature of
13their duties, may have the authority to participate personally
14and substantially in the award of State contracts or in
15regulatory or licensing decisions. The Governor shall adopt
16such a policy for all State employees of the executive branch
17not under the jurisdiction and control of any other executive
18branch constitutional officer.
19    The policies required under subsection (c) of this Section
20shall be filed with the appropriate ethics commission
21established under this Act or, for the Auditor General, with
22the Office of the Auditor General.
23    (d) Each Inspector General shall have the authority to
24determine that additional State positions under his or her
25jurisdiction, not otherwise subject to the policies required by
26subsection (c) of this Section, are nonetheless subject to the

 

 

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1notification requirement of subsection (f) below due to their
2involvement in the award of State contracts or in regulatory or
3licensing decisions.
4    (e) The Joint Committee on Legislative Support Services,
5the Auditor General, and each of the executive branch
6constitutional officers and legislative leaders subject to
7subsection (c) of this Section shall provide written
8notification to all employees in positions subject to the
9policies required by subsection (c) or a determination made
10under subsection (d): (1) upon hiring, promotion, or transfer
11into the relevant position; and (2) at the time the employee's
12duties are changed in such a way as to qualify that employee.
13An employee receiving notification must certify in writing that
14the person was advised of the prohibition and the requirement
15to notify the appropriate Inspector General in subsection (f).
16    (f) Any State employee in a position subject to the
17policies required by subsection (c) or to a determination under
18subsection (d), but who does not fall within the prohibition of
19subsection (h) below, who is offered non-State employment
20during State employment or within a period of one year
21immediately after termination of State employment shall, prior
22to accepting such non-State employment, notify the appropriate
23Inspector General. Within 10 calendar days after receiving
24notification from an employee in a position subject to the
25policies required by subsection (c), such Inspector General
26shall make a determination as to whether the State employee is

 

 

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1restricted from accepting such employment by subsection (a) or
2(b). In making a determination, in addition to any other
3relevant information, an Inspector General shall assess the
4effect of the prospective employment or relationship upon
5decisions referred to in subsections (a) and (b), based on the
6totality of the participation by the former officer, member, or
7State employee in those decisions. A determination by an
8Inspector General must be in writing, signed and dated by the
9Inspector General, and delivered to the subject of the
10determination within 10 calendar days or the person is deemed
11eligible for the employment opportunity. For purposes of this
12subsection, "appropriate Inspector General" means (i) for
13members and employees of the legislative branch, the
14Legislative Inspector General; (ii) for the Auditor General and
15employees of the Office of the Auditor General, the Inspector
16General provided for in Section 30-5 of this Act; and (iii) for
17executive branch officers and employees, the Inspector General
18having jurisdiction over the officer or employee. Notice of any
19determination of an Inspector General and of any such appeal
20shall be given to the ultimate jurisdictional authority, the
21Attorney General, and the Executive Ethics Commission.
22    (g) An Inspector General's determination regarding
23restrictions under subsection (a) or (b) may be appealed to the
24appropriate Ethics Commission by the person subject to the
25decision or the Attorney General no later than the 10th
26calendar day after the date of the determination.

 

 

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1    On appeal, the Ethics Commission or Auditor General shall
2seek, accept, and consider written public comments regarding a
3determination. In deciding whether to uphold an Inspector
4General's determination, the appropriate Ethics Commission or
5Auditor General shall assess, in addition to any other relevant
6information, the effect of the prospective employment or
7relationship upon the decisions referred to in subsections (a)
8and (b), based on the totality of the participation by the
9former officer, member, or State employee in those decisions.
10The Ethics Commission shall decide whether to uphold an
11Inspector General's determination within 10 calendar days or
12the person is deemed eligible for the employment opportunity.
13    (h) The following officers, members, or State employees
14shall not, within a period of one year immediately after
15termination of office or State employment, knowingly accept
16employment or receive compensation or fees for services from a
17person or entity if the person or entity or its parent or
18subsidiary, during the year immediately preceding termination
19of State employment, was a party to a State contract or
20contracts with a cumulative value of $25,000 or more involving
21the officer, member, or State employee's State agency, or was
22the subject of a regulatory or licensing decision involving the
23officer, member, or State employee's State agency, regardless
24of whether he or she participated personally and substantially
25in the award of the State contract or contracts or the making
26of the regulatory or licensing decision in question:

 

 

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1        (1) members or officers;
2        (2) members of a commission or board created by the
3    Illinois Constitution;
4        (3) persons whose appointment to office is subject to
5    the advice and consent of the Senate;
6        (4) the head of a department, commission, board,
7    division, bureau, authority, or other administrative unit
8    within the government of this State;
9        (5) chief procurement officers, State purchasing
10    officers, and their designees whose duties are directly
11    related to State procurement;
12        (6) chiefs of staff, deputy chiefs of staff, associate
13    chiefs of staff, assistant chiefs of staff, and deputy
14    governors;
15        (7) employees of the Illinois Racing Board; and
16        (8) employees of the Illinois Gaming Board.
17    (i) For the purposes of this Section, with respect to
18officers or employees of a regional transit board, as defined
19in this Act, the phrase "person or entity" does not include:
20(i) the United States government, (ii) the State, (iii)
21municipalities, as defined under Article VII, Section 1 of the
22Illinois Constitution, (iv) units of local government, as
23defined under Article VII, Section 1 of the Illinois
24Constitution, or (v) school districts.
25(Source: P.A. 101-31, eff. 6-28-19.)
 

 

 

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1    Section 5. The Criminal Identification Act is amended by
2changing Section 5.2 as follows:
 
3    (20 ILCS 2630/5.2)
4    Sec. 5.2. Expungement, sealing, and immediate sealing.
5    (a) General Provisions.
6        (1) Definitions. In this Act, words and phrases have
7    the meanings set forth in this subsection, except when a
8    particular context clearly requires a different meaning.
9            (A) The following terms shall have the meanings
10        ascribed to them in the Unified Code of Corrections,
11        730 ILCS 5/5-1-2 through 5/5-1-22:
12                (i) Business Offense (730 ILCS 5/5-1-2),
13                (ii) Charge (730 ILCS 5/5-1-3),
14                (iii) Court (730 ILCS 5/5-1-6),
15                (iv) Defendant (730 ILCS 5/5-1-7),
16                (v) Felony (730 ILCS 5/5-1-9),
17                (vi) Imprisonment (730 ILCS 5/5-1-10),
18                (vii) Judgment (730 ILCS 5/5-1-12),
19                (viii) Misdemeanor (730 ILCS 5/5-1-14),
20                (ix) Offense (730 ILCS 5/5-1-15),
21                (x) Parole (730 ILCS 5/5-1-16),
22                (xi) Petty Offense (730 ILCS 5/5-1-17),
23                (xii) Probation (730 ILCS 5/5-1-18),
24                (xiii) Sentence (730 ILCS 5/5-1-19),
25                (xiv) Supervision (730 ILCS 5/5-1-21), and

 

 

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

 

 

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

 

 

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

 

 

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1        those provisions existed before their deletion by
2        Public Act 89-313), Section 10-102 of the Illinois
3        Alcoholism and Other Drug Dependency Act, Section
4        40-10 of the Substance Use Disorder Act, or Section 10
5        of the Steroid Control Act. For the purpose of this
6        Section, "successful completion" of an order of
7        qualified probation under Section 10-102 of the
8        Illinois Alcoholism and Other Drug Dependency Act and
9        Section 40-10 of the Substance Use Disorder Act means
10        that the probation was terminated satisfactorily and
11        the judgment of conviction was vacated.
12            (K) "Seal" means to physically and electronically
13        maintain the records, unless the records would
14        otherwise be destroyed due to age, but to make the
15        records unavailable without a court order, subject to
16        the exceptions in Sections 12 and 13 of this Act. The
17        petitioner's name shall also be obliterated from the
18        official index required to be kept by the circuit court
19        clerk under Section 16 of the Clerks of Courts Act, but
20        any index issued by the circuit court clerk before the
21        entry of the order to seal shall not be affected.
22            (L) "Sexual offense committed against a minor"
23        includes, but is not limited to, the offenses of
24        indecent solicitation of a child or criminal sexual
25        abuse when the victim of such offense is under 18 years
26        of age.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            (A) When the arrest or charge not initiated by
2        arrest sought to be expunged resulted in an acquittal,
3        dismissal, the petitioner's release without charging,
4        or the reversal or vacation of a conviction, there is
5        no waiting period to petition for the expungement of
6        such records.
7            (B) When the arrest or charge not initiated by
8        arrest sought to be expunged resulted in an order of
9        supervision, successfully completed by the petitioner,
10        the following time frames will apply:
11                (i) Those arrests or charges that resulted in
12            orders of supervision under Section 3-707, 3-708,
13            3-710, or 5-401.3 of the Illinois Vehicle Code or a
14            similar provision of a local ordinance, or under
15            Section 11-1.50, 12-3.2, or 12-15 of the Criminal
16            Code of 1961 or the Criminal Code of 2012, or a
17            similar provision of a local ordinance, shall not
18            be eligible for expungement until 5 years have
19            passed following the satisfactory termination of
20            the supervision.
21                (i-5) Those arrests or charges that resulted
22            in orders of supervision for a misdemeanor
23            violation of subsection (a) of Section 11-503 of
24            the Illinois Vehicle Code or a similar provision of
25            a local ordinance, that occurred prior to the
26            offender reaching the age of 25 years and the

 

 

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1            offender has no other conviction for violating
2            Section 11-501 or 11-503 of the Illinois Vehicle
3            Code or a similar provision of a local ordinance
4            shall not be eligible for expungement until the
5            petitioner has reached the age of 25 years.
6                (ii) Those arrests or charges that resulted in
7            orders of supervision for any other offenses shall
8            not be eligible for expungement until 2 years have
9            passed following the satisfactory termination of
10            the supervision.
11            (C) When the arrest or charge not initiated by
12        arrest sought to be expunged resulted in an order of
13        qualified probation, successfully completed by the
14        petitioner, such records shall not be eligible for
15        expungement until 5 years have passed following the
16        satisfactory termination of the probation.
17        (3) Those records maintained by the Department for
18    persons arrested prior to their 17th birthday shall be
19    expunged as provided in Section 5-915 of the Juvenile Court
20    Act of 1987.
21        (4) Whenever a person has been arrested for or
22    convicted of any offense, in the name of a person whose
23    identity he or she has stolen or otherwise come into
24    possession of, the aggrieved person from whom the identity
25    was stolen or otherwise obtained without authorization,
26    upon learning of the person having been arrested using his

 

 

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

 

 

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

 

 

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1    of the Methamphetamine Control and Community Protection
2    Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
3    Corrections, Section 12-4.3 or subdivision (b)(1) of
4    Section 12-3.05 of the Criminal Code of 1961 or the
5    Criminal Code of 2012, Section 10-102 of the Illinois
6    Alcoholism and Other Drug Dependency Act, Section 40-10 of
7    the Substance Use Disorder Act, or Section 10 of the
8    Steroid Control Act.
9        (8) If the petitioner has been granted a certificate of
10    innocence under Section 2-702 of the Code of Civil
11    Procedure, the court that grants the certificate of
12    innocence shall also enter an order expunging the
13    conviction for which the petitioner has been determined to
14    be innocent as provided in subsection (h) of Section 2-702
15    of the Code of Civil Procedure.
16    (c) Sealing.
17        (1) Applicability. Notwithstanding any other provision
18    of this Act to the contrary, and cumulative with any rights
19    to expungement of criminal records, this subsection
20    authorizes the sealing of criminal records of adults and of
21    minors prosecuted as adults. Subsection (g) of this Section
22    provides for immediate sealing of certain records.
23        (2) Eligible Records. The following records may be
24    sealed:
25            (A) All arrests resulting in release without
26        charging;

 

 

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

 

 

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

 

 

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

 

 

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1    sealing of the records.
2    (d) Procedure. The following procedures apply to
3expungement under subsections (b), (e), and (e-6) and sealing
4under subsections (c) and (e-5):
5        (1) Filing the petition. Upon becoming eligible to
6    petition for the expungement or sealing of records under
7    this Section, the petitioner shall file a petition
8    requesting the expungement or sealing of records with the
9    clerk of the court where the arrests occurred or the
10    charges were brought, or both. If arrests occurred or
11    charges were brought in multiple jurisdictions, a petition
12    must be filed in each such jurisdiction. The petitioner
13    shall pay the applicable fee, except no fee shall be
14    required if the petitioner has obtained a court order
15    waiving fees under Supreme Court Rule 298 or it is
16    otherwise waived.
17        (1.5) County fee waiver pilot program. From August 9,
18    2019 (the effective date of Public Act 101-306) this
19    amendatory Act of the 101st General Assembly through
20    December 31, 2020, in a county of 3,000,000 or more
21    inhabitants, no fee shall be required to be paid by a
22    petitioner if the records sought to be expunged or sealed
23    were arrests resulting in release without charging or
24    arrests or charges not initiated by arrest resulting in
25    acquittal, dismissal, or conviction when the conviction
26    was reversed or vacated, unless excluded by subsection

 

 

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1    (a)(3)(B). The provisions of this paragraph (1.5), other
2    than this sentence, are inoperative on and after January 1,
3    2021.
4        (2) Contents of petition. The petition shall be
5    verified and shall contain the petitioner's name, date of
6    birth, current address and, for each arrest or charge not
7    initiated by arrest sought to be sealed or expunged, the
8    case number, the date of arrest (if any), the identity of
9    the arresting authority, and such other information as the
10    court may require. During the pendency of the proceeding,
11    the petitioner shall promptly notify the circuit court
12    clerk of any change of his or her address. If the
13    petitioner has received a certificate of eligibility for
14    sealing from the Prisoner Review Board under paragraph (10)
15    of subsection (a) of Section 3-3-2 of the Unified Code of
16    Corrections, the certificate shall be attached to the
17    petition.
18        (3) Drug test. The petitioner must attach to the
19    petition proof that the petitioner has passed a test taken
20    within 30 days before the filing of the petition showing
21    the absence within his or her body of all illegal
22    substances as defined by the Illinois Controlled
23    Substances Act, the Methamphetamine Control and Community
24    Protection Act, and the Cannabis Control Act if he or she
25    is petitioning to:
26            (A) seal felony records under clause (c)(2)(E);

 

 

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1            (B) seal felony records for a violation of the
2        Illinois Controlled Substances Act, the
3        Methamphetamine Control and Community Protection Act,
4        or the Cannabis Control Act under clause (c)(2)(F);
5            (C) seal felony records under subsection (e-5); or
6            (D) expunge felony records of a qualified
7        probation under clause (b)(1)(iv).
8        (4) Service of petition. The circuit court clerk shall
9    promptly serve a copy of the petition and documentation to
10    support the petition under subsection (e-5) or (e-6) on the
11    State's Attorney or prosecutor charged with the duty of
12    prosecuting the offense, the Department of State Police,
13    the arresting agency and the chief legal officer of the
14    unit of local government effecting the arrest.
15        (5) Objections.
16            (A) Any party entitled to notice of the petition
17        may file an objection to the petition. All objections
18        shall be in writing, shall be filed with the circuit
19        court clerk, and shall state with specificity the basis
20        of the objection. Whenever a person who has been
21        convicted of an offense is granted a pardon by the
22        Governor which specifically authorizes expungement, an
23        objection to the petition may not be filed.
24            (B) Objections to a petition to expunge or seal
25        must be filed within 60 days of the date of service of
26        the petition.

 

 

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1        (6) Entry of order.
2            (A) The Chief Judge of the circuit wherein the
3        charge was brought, any judge of that circuit
4        designated by the Chief Judge, or in counties of less
5        than 3,000,000 inhabitants, the presiding trial judge
6        at the petitioner's trial, if any, shall rule on the
7        petition to expunge or seal as set forth in this
8        subsection (d)(6).
9            (B) Unless the State's Attorney or prosecutor, the
10        Department of State Police, the arresting agency, or
11        the chief legal officer files an objection to the
12        petition to expunge or seal within 60 days from the
13        date of service of the petition, the court shall enter
14        an order granting or denying the petition.
15            (C) Notwithstanding any other provision of law,
16        the court shall not deny a petition for sealing under
17        this Section because the petitioner has not satisfied
18        an outstanding legal financial obligation established,
19        imposed, or originated by a court, law enforcement
20        agency, or a municipal, State, county, or other unit of
21        local government, including, but not limited to, any
22        cost, assessment, fine, or fee. An outstanding legal
23        financial obligation does not include any court
24        ordered restitution to a victim under Section 5-5-6 of
25        the Unified Code of Corrections, unless the
26        restitution has been converted to a civil judgment.

 

 

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1        Nothing in this subparagraph (C) waives, rescinds, or
2        abrogates a legal financial obligation or otherwise
3        eliminates or affects the right of the holder of any
4        financial obligation to pursue collection under
5        applicable federal, State, or local law.
6        (7) Hearings. If an objection is filed, the court shall
7    set a date for a hearing and notify the petitioner and all
8    parties entitled to notice of the petition of the hearing
9    date at least 30 days prior to the hearing. Prior to the
10    hearing, the State's Attorney shall consult with the
11    Department as to the appropriateness of the relief sought
12    in the petition to expunge or seal. At the hearing, the
13    court shall hear evidence on whether the petition should or
14    should not be granted, and shall grant or deny the petition
15    to expunge or seal the records based on the evidence
16    presented at the hearing. The court may consider the
17    following:
18            (A) the strength of the evidence supporting the
19        defendant's conviction;
20            (B) the reasons for retention of the conviction
21        records by the State;
22            (C) the petitioner's age, criminal record history,
23        and employment history;
24            (D) the period of time between the petitioner's
25        arrest on the charge resulting in the conviction and
26        the filing of the petition under this Section; and

 

 

SB1557 Enrolled- 31 -LRB101 08168 SMS 53234 b

1            (E) the specific adverse consequences the
2        petitioner may be subject to if the petition is denied.
3        (8) Service of order. After entering an order to
4    expunge or seal records, the court must provide copies of
5    the order to the Department, in a form and manner
6    prescribed by the Department, to the petitioner, to the
7    State's Attorney or prosecutor charged with the duty of
8    prosecuting the offense, to the arresting agency, to the
9    chief legal officer of the unit of local government
10    effecting the arrest, and to such other criminal justice
11    agencies as may be ordered by the court.
12        (9) Implementation of order.
13            (A) Upon entry of an order to expunge records
14        pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:
15                (i) the records shall be expunged (as defined
16            in subsection (a)(1)(E)) by the arresting agency,
17            the Department, and any other agency as ordered by
18            the court, within 60 days of the date of service of
19            the order, unless a motion to vacate, modify, or
20            reconsider the order is filed pursuant to
21            paragraph (12) of subsection (d) of this Section;
22                (ii) the records of the circuit court clerk
23            shall be impounded until further order of the court
24            upon good cause shown and the name of the
25            petitioner obliterated on the official index
26            required to be kept by the circuit court clerk

 

 

SB1557 Enrolled- 32 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 33 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

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1            from anyone not authorized by law to access the
2            records, the court, the Department, or the agency
3            receiving the inquiry shall reply as it does in
4            response to inquiries when no records ever
5            existed.
6            (C) Upon entry of an order to seal records under
7        subsection (c), the arresting agency, any other agency
8        as ordered by the court, the Department, and the court
9        shall seal the records (as defined in subsection
10        (a)(1)(K)). 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 existed.
15            (D) The Department shall send written notice to the
16        petitioner of its compliance with each order to expunge
17        or seal records within 60 days of the date of service
18        of that order or, if a motion to vacate, modify, or
19        reconsider is filed, within 60 days of service of the
20        order resolving the motion, if that order requires the
21        Department to expunge or seal records. In the event of
22        an appeal from the circuit court order, the Department
23        shall send written notice to the petitioner of its
24        compliance with an Appellate Court or Supreme Court
25        judgment to expunge or seal records within 60 days of
26        the issuance of the court's mandate. The notice is not

 

 

SB1557 Enrolled- 36 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

SB1557 Enrolled- 38 -LRB101 08168 SMS 53234 b

1    of service of the order. If filed more than 60 days after
2    service of the order, a petition to vacate, modify, or
3    reconsider shall comply with subsection (c) of Section
4    2-1401 of the Code of Civil Procedure. Upon filing of a
5    motion to vacate, modify, or reconsider, notice of the
6    motion shall be served upon the petitioner and all parties
7    entitled to notice of the petition.
8        (13) Effect of Order. An order granting a petition
9    under the expungement or sealing provisions of this Section
10    shall not be considered void because it fails to comply
11    with the provisions of this Section or because of any error
12    asserted in a motion to vacate, modify, or reconsider. The
13    circuit court retains jurisdiction to determine whether
14    the order is voidable and to vacate, modify, or reconsider
15    its terms based on a motion filed under paragraph (12) of
16    this subsection (d).
17        (14) Compliance with Order Granting Petition to Seal
18    Records. Unless a court has entered a stay of an order
19    granting a petition to seal, all parties entitled to notice
20    of the petition must fully comply with the terms of the
21    order within 60 days of service of the order even if a
22    party is seeking relief from the order through a motion
23    filed under paragraph (12) of this subsection (d) or is
24    appealing the order.
25        (15) Compliance with Order Granting Petition to
26    Expunge Records. While a party is seeking relief from the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        (4) Notice of Eligibility for Immediate Sealing. Upon
2    entry of a disposition for an eligible record under this
3    subsection (g), the defendant shall be informed by the
4    court of his or her right to have eligible records
5    immediately sealed and the procedure for the immediate
6    sealing of these records.
7        (5) Procedure. The following procedures apply to
8    immediate sealing under this subsection (g).
9            (A) Filing the Petition. Upon entry of the final
10        disposition of the case, the defendant's attorney may
11        immediately petition the court, on behalf of the
12        defendant, for immediate sealing of eligible records
13        under paragraph (2) of this subsection (g) that are
14        entered on or after January 1, 2018 (the effective date
15        of Public Act 100-282). The immediate sealing petition
16        may be filed with the circuit court clerk during the
17        hearing in which the final disposition of the case is
18        entered. If the defendant's attorney does not file the
19        petition for immediate sealing during the hearing, the
20        defendant may file a petition for sealing at any time
21        as authorized under subsection (c)(3)(A).
22            (B) Contents of Petition. The immediate sealing
23        petition shall be verified and shall contain the
24        petitioner's name, date of birth, current address, and
25        for each eligible record, the case number, the date of
26        arrest if applicable, the identity of the arresting

 

 

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1        authority if applicable, and other information as the
2        court may require.
3            (C) Drug Test. The petitioner shall not be required
4        to attach proof that he or she has passed a drug test.
5            (D) Service of Petition. A copy of the petition
6        shall be served on the State's Attorney in open court.
7        The petitioner shall not be required to serve a copy of
8        the petition on any other agency.
9            (E) Entry of Order. The presiding trial judge shall
10        enter an order granting or denying the petition for
11        immediate sealing during the hearing in which it is
12        filed. Petitions for immediate sealing shall be ruled
13        on in the same hearing in which the final disposition
14        of the case is entered.
15            (F) Hearings. The court shall hear the petition for
16        immediate sealing on the same day and during the same
17        hearing in which the disposition is rendered.
18            (G) Service of Order. An order to immediately seal
19        eligible records shall be served in conformance with
20        subsection (d)(8).
21            (H) Implementation of Order. An order to
22        immediately seal records shall be implemented in
23        conformance with subsections (d)(9)(C) and (d)(9)(D).
24            (I) Fees. The fee imposed by the circuit court
25        clerk and the Department of State Police shall comply
26        with paragraph (1) of subsection (d) of this Section.

 

 

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1            (J) Final Order. No court order issued under this
2        subsection (g) shall become final for purposes of
3        appeal until 30 days after service of the order on the
4        petitioner and all parties entitled to service of the
5        order in conformance with subsection (d)(8).
6            (K) Motion to Vacate, Modify, or Reconsider. Under
7        Section 2-1203 of the Code of Civil Procedure, the
8        petitioner, State's Attorney, or the Department of
9        State Police may file a motion to vacate, modify, or
10        reconsider the order denying the petition to
11        immediately seal within 60 days of service of the
12        order. If filed more than 60 days after service of the
13        order, a petition to vacate, modify, or reconsider
14        shall comply with subsection (c) of Section 2-1401 of
15        the Code of Civil Procedure.
16            (L) Effect of Order. An order granting an immediate
17        sealing petition shall not be considered void because
18        it fails to comply with the provisions of this Section
19        or because of an error asserted in a motion to vacate,
20        modify, or reconsider. The circuit court retains
21        jurisdiction to determine whether the order is
22        voidable, and to vacate, modify, or reconsider its
23        terms based on a motion filed under subparagraph (L) of
24        this subsection (g).
25            (M) Compliance with Order Granting Petition to
26        Seal Records. Unless a court has entered a stay of an

 

 

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1        order granting a petition to immediately seal, all
2        parties entitled to service of the order must fully
3        comply with the terms of the order within 60 days of
4        service of the order.
5    (h) Sealing; trafficking victims.
6        (1) A trafficking victim as defined by paragraph (10)
7    of subsection (a) of Section 10-9 of the Criminal Code of
8    2012 shall be eligible to petition for immediate sealing of
9    his or her criminal record upon the completion of his or
10    her last sentence if his or her participation in the
11    underlying offense was a direct result of human trafficking
12    under Section 10-9 of the Criminal Code of 2012 or a severe
13    form of trafficking under the federal Trafficking Victims
14    Protection Act.
15        (2) A petitioner under this subsection (h), in addition
16    to the requirements provided under paragraph (4) of
17    subsection (d) of this Section, shall include in his or her
18    petition a clear and concise statement that: (A) he or she
19    was a victim of human trafficking at the time of the
20    offense; and (B) that his or her participation in the
21    offense was a direct result of human trafficking under
22    Section 10-9 of the Criminal Code of 2012 or a severe form
23    of trafficking under the federal Trafficking Victims
24    Protection Act.
25        (3) If an objection is filed alleging that the
26    petitioner is not entitled to immediate sealing under this

 

 

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1    subsection (h), the court shall conduct a hearing under
2    paragraph (7) of subsection (d) of this Section and the
3    court shall determine whether the petitioner is entitled to
4    immediate sealing under this subsection (h). A petitioner
5    is eligible for immediate relief under this subsection (h)
6    if he or she shows, by a preponderance of the evidence,
7    that: (A) he or she was a victim of human trafficking at
8    the time of the offense; and (B) that his or her
9    participation in the offense was a direct result of human
10    trafficking under Section 10-9 of the Criminal Code of 2012
11    or a severe form of trafficking under the federal
12    Trafficking Victims Protection Act.
13    (i) Minor Cannabis Offenses under the Cannabis Control Act.
14        (1) Expungement of Arrest Records of Minor Cannabis
15    Offenses.
16            (A) The Department of State Police and all law
17        enforcement agencies within the State shall
18        automatically expunge all criminal history records of
19        an arrest, charge not initiated by arrest, order of
20        supervision, or order of qualified probation for a
21        Minor Cannabis Offense committed prior to June 25, 2019
22        (the effective date of Public Act 101-27) this
23        amendatory Act of the 101st General Assembly if:
24                (i) One year or more has elapsed since the date
25            of the arrest or law enforcement interaction
26            documented in the records; and

 

 

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1                (ii) No criminal charges were filed relating
2            to the arrest or law enforcement interaction or
3            criminal charges were filed and subsequently
4            dismissed or vacated or the arrestee was
5            acquitted.
6            (B) If the law enforcement agency is unable to
7        verify satisfaction of condition (ii) in paragraph
8        (A), records that satisfy condition (i) in paragraph
9        (A) shall be automatically expunged.
10            (C) Records shall be expunged by the law
11        enforcement agency pursuant to the procedures set
12        forth in subdivision (d)(9)(A) under the following
13        timelines:
14                (i) Records created prior to June 25, 2019 (the
15            effective date of Public Act 101-27) this
16            amendatory Act of the 101st General Assembly, but
17            on or after January 1, 2013, shall be automatically
18            expunged prior to January 1, 2021;
19                (ii) Records created prior to January 1, 2013,
20            but on or after January 1, 2000, shall be
21            automatically expunged prior to January 1, 2023;
22                (iii) Records created prior to January 1, 2000
23            shall be automatically expunged prior to January
24            1, 2025.
25            In response to an inquiry for expunged records, the
26        law enforcement agency receiving such inquiry shall

 

 

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1        reply as it does in response to inquiries when no
2        records ever existed; however, it shall provide a
3        certificate of disposition or confirmation that the
4        record was expunged to the individual whose record was
5        expunged if such a record exists.
6            (D) Nothing in this Section shall be construed to
7        restrict or modify an individual's right to have that
8        individual's records expunged except as otherwise may
9        be provided in this Act, or diminish or abrogate any
10        rights or remedies otherwise available to the
11        individual.
12        (2) Pardons Authorizing Expungement of Minor Cannabis
13    Offenses.
14            (A) Upon June 25, 2019 (the effective date of
15        Public Act 101-27) this amendatory Act of the 101st
16        General Assembly, the Department of State Police shall
17        review all criminal history record information and
18        identify all records that meet all of the following
19        criteria:
20                (i) one or more convictions for a Minor
21            Cannabis Offense;
22                (ii) the conviction identified in paragraph
23            (2)(A)(i) did not include a penalty enhancement
24            under Section 7 of the Cannabis Control Act; and
25                (iii) the conviction identified in paragraph
26            (2)(A)(i) is not associated with a an arrest,

 

 

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1            conviction or other disposition for a violent
2            crime as defined in subsection (c) of Section 3 of
3            the Rights of Crime Victims and Witnesses Act.
4            (B) Within 180 days after June 25, 2019 (the
5        effective date of Public Act 101-27) this amendatory
6        Act of the 101st General Assembly, the Department of
7        State Police shall notify the Prisoner Review Board of
8        all such records that meet the criteria established in
9        paragraph (2)(A).
10                (i) The Prisoner Review Board shall notify the
11            State's Attorney of the county of conviction of
12            each record identified by State Police in
13            paragraph (2)(A) that is classified as a Class 4
14            felony. The State's Attorney may provide a written
15            objection to the Prisoner Review Board on the sole
16            basis that the record identified does not meet the
17            criteria established in paragraph (2)(A). Such an
18            objection must be filed within 60 days or by such
19            later date set by Prisoner Review Board in the
20            notice after the State's Attorney received notice
21            from the Prisoner Review Board.
22                (ii) In response to a written objection from a
23            State's Attorney, the Prisoner Review Board is
24            authorized to conduct a non-public hearing to
25            evaluate the information provided in the
26            objection.

 

 

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

 

 

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1        Section 16 of the Clerks of Courts Act in connection
2        with the arrest and conviction for the offense for
3        which the individual had received a pardon but the
4        order shall not affect any index issued by the circuit
5        court clerk before the entry of the order. Upon entry
6        of the order of expungement, the circuit court clerk
7        shall promptly provide a copy of the order and a
8        certificate of disposition to the individual who was
9        pardoned to the individual's last known address or by
10        electronic means (if available) or otherwise make it
11        available to the individual who was pardoned to the
12        individual's last known address or otherwise make
13        available to the individual upon request.
14            (D) Nothing in this Section is intended to diminish
15        or abrogate any rights or remedies otherwise available
16        to the individual.
17        (3) Any individual may file a motion to vacate and
18    expunge a conviction for a misdemeanor or Class 4 felony
19    violation of Section 4 or Section 5 of the Cannabis Control
20    Act. Motions to vacate and expunge under this subsection
21    (i) may be filed with the circuit court, Chief Judge of a
22    judicial circuit or any judge of the circuit designated by
23    the Chief Judge. The circuit court clerk shall promptly
24    serve a copy of the motion to vacate and expunge, and any
25    supporting documentation, on the State's Attorney or
26    prosecutor charged with the duty of prosecuting the

 

 

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

 

 

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1    providing civil legal aid concerning more than one
2    individual may be prepared, presented, and signed
3    electronically.
4        (4) Any State's Attorney may file a motion to vacate
5    and expunge a conviction for a misdemeanor or Class 4
6    felony violation of Section 4 or Section 5 of the Cannabis
7    Control Act. Motions to vacate and expunge under this
8    subsection (i) may be filed with the circuit court, Chief
9    Judge of a judicial circuit or any judge of the circuit
10    designated by the Chief Judge, and may include more than
11    one individual. Motions filed by a State's Attorney
12    concerning more than one individual may be prepared,
13    presented, and signed electronically. When considering
14    such a motion to vacate and expunge, a court shall consider
15    the following: the reasons to retain the records provided
16    by law enforcement, the individual's age, the individual's
17    age at the time of offense, the time since the conviction,
18    and the specific adverse consequences if denied. Upon entry
19    of an order granting a motion to vacate and expunge records
20    pursuant to this Section, the State's Attorney shall notify
21    the Prisoner Review Board within 30 days. Upon entry of the
22    order of expungement, the circuit court clerk shall
23    promptly provide a copy of the order and a certificate of
24    disposition to the individual whose records will be
25    expunged to the individual's last known address or by
26    electronic means (if available) or otherwise make

 

 

SB1557 Enrolled- 56 -LRB101 08168 SMS 53234 b

1    available to the individual upon request. If a motion to
2    vacate and expunge is granted, the records shall be
3    expunged in accordance with subparagraphs (d)(8) and
4    (d)(9)(A) of this Section. If the State's Attorney files a
5    motion to vacate and expunge records for Minor Cannabis
6    Offenses pursuant to this Section, the State's Attorney
7    shall notify the Prisoner Review Board within 30 days of
8    such filing. If a motion to vacate and expunge is granted,
9    the records shall be expunged in accordance with
10    subparagraph (d)(9)(A) of this Section.
11        (5) In the public interest, the State's Attorney of a
12    county has standing to file motions to vacate and expunge
13    pursuant to this Section in the circuit court with
14    jurisdiction over the underlying conviction.
15        (6) If a person is arrested for a Minor Cannabis
16    Offense as defined in this Section before June 25, 2019
17    (the effective date of Public Act 101-27) this amendatory
18    Act of the 101st General Assembly and the person's case is
19    still pending but a sentence has not been imposed, the
20    person may petition the court in which the charges are
21    pending for an order to summarily dismiss those charges
22    against him or her, and expunge all official records of his
23    or her arrest, plea, trial, conviction, incarceration,
24    supervision, or expungement. If the court determines, upon
25    review, that: (A) the person was arrested before June 25,
26    2019 (the effective date of Public Act 101-27) this

 

 

SB1557 Enrolled- 57 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 58 -LRB101 08168 SMS 53234 b

1    Section. The effect of an order of expungement shall be to
2    restore the person to the status he or she occupied before
3    the arrest, charge, or conviction.
4        (11) Information. The Department of State Police shall
5    post general information on its website about the
6    expungement process described in this subsection (i).
7(Source: P.A. 100-201, eff. 8-18-17; 100-282, eff. 1-1-18;
8100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692, eff.
98-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18; 100-863,
10eff. 8-14-18; 101-27, eff. 6-25-19; 101-81, eff. 7-12-19;
11101-159, eff. 1-1-20; 101-306, eff. 8-9-19; revised 9-25-19.)
 
12    Section 6. The Use Tax Act is amended by changing Section
133-10 as follows:
 
14    (35 ILCS 105/3-10)
15    Sec. 3-10. Rate of tax. Unless otherwise provided in this
16Section, the tax imposed by this Act is at the rate of 6.25% of
17either the selling price or the fair market value, if any, of
18the tangible personal property. In all cases where property
19functionally used or consumed is the same as the property that
20was purchased at retail, then the tax is imposed on the selling
21price of the property. In all cases where property functionally
22used or consumed is a by-product or waste product that has been
23refined, manufactured, or produced from property purchased at
24retail, then the tax is imposed on the lower of the fair market

 

 

SB1557 Enrolled- 59 -LRB101 08168 SMS 53234 b

1value, if any, of the specific property so used in this State
2or on the selling price of the property purchased at retail.
3For purposes of this Section "fair market value" means the
4price at which property would change hands between a willing
5buyer and a willing seller, neither being under any compulsion
6to buy or sell and both having reasonable knowledge of the
7relevant facts. The fair market value shall be established by
8Illinois sales by the taxpayer of the same property as that
9functionally used or consumed, or if there are no such sales by
10the taxpayer, then comparable sales or purchases of property of
11like kind and character in Illinois.
12    Beginning on July 1, 2000 and through December 31, 2000,
13with respect to motor fuel, as defined in Section 1.1 of the
14Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
15the Use Tax Act, the tax is imposed at the rate of 1.25%.
16    Beginning on August 6, 2010 through August 15, 2010, with
17respect to sales tax holiday items as defined in Section 3-6 of
18this Act, the tax is imposed at the rate of 1.25%.
19    With respect to gasohol, the tax imposed by this Act
20applies to (i) 70% of the proceeds of sales made on or after
21January 1, 1990, and before July 1, 2003, (ii) 80% of the
22proceeds of sales made on or after July 1, 2003 and on or
23before July 1, 2017, and (iii) 100% of the proceeds of sales
24made thereafter. If, at any time, however, the tax under this
25Act on sales of gasohol is imposed at the rate of 1.25%, then
26the tax imposed by this Act applies to 100% of the proceeds of

 

 

SB1557 Enrolled- 60 -LRB101 08168 SMS 53234 b

1sales of gasohol made during that time.
2    With respect to majority blended ethanol fuel, the tax
3imposed by this Act does not apply to the proceeds of sales
4made on or after July 1, 2003 and on or before December 31,
52023 but applies to 100% of the proceeds of sales made
6thereafter.
7    With respect to biodiesel blends with no less than 1% and
8no more than 10% biodiesel, the tax imposed by this Act applies
9to (i) 80% of the proceeds of sales made on or after July 1,
102003 and on or before December 31, 2018 and (ii) 100% of the
11proceeds of sales made thereafter. If, at any time, however,
12the tax under this Act on sales of biodiesel blends with no
13less than 1% and no more than 10% biodiesel is imposed at the
14rate of 1.25%, then the tax imposed by this Act applies to 100%
15of the proceeds of sales of biodiesel blends with no less than
161% and no more than 10% biodiesel made during that time.
17    With respect to 100% biodiesel and biodiesel blends with
18more than 10% but no more than 99% biodiesel, the tax imposed
19by this Act does not apply to the proceeds of sales made on or
20after July 1, 2003 and on or before December 31, 2023 but
21applies to 100% of the proceeds of sales made thereafter.
22    With respect to food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, food consisting of or infused with adult
25use cannabis, soft drinks, and food that has been prepared for
26immediate consumption) and prescription and nonprescription

 

 

SB1557 Enrolled- 61 -LRB101 08168 SMS 53234 b

1medicines, drugs, medical appliances, products classified as
2Class III medical devices by the United States Food and Drug
3Administration that are used for cancer treatment pursuant to a
4prescription, as well as any accessories and components related
5to those devices, modifications to a motor vehicle for the
6purpose of rendering it usable by a person with a disability,
7and insulin, urine testing materials, syringes, and needles
8used by diabetics, for human use, the tax is imposed at the
9rate of 1%. For the purposes of this Section, until September
101, 2009: the term "soft drinks" means any complete, finished,
11ready-to-use, non-alcoholic drink, whether carbonated or not,
12including but not limited to soda water, cola, fruit juice,
13vegetable juice, carbonated water, and all other preparations
14commonly known as soft drinks of whatever kind or description
15that are contained in any closed or sealed bottle, can, carton,
16or container, regardless of size; but "soft drinks" does not
17include coffee, tea, non-carbonated water, infant formula,
18milk or milk products as defined in the Grade A Pasteurized
19Milk and Milk Products Act, or drinks containing 50% or more
20natural fruit or vegetable juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

SB1557 Enrolled- 62 -LRB101 08168 SMS 53234 b

1    Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

 

 

SB1557 Enrolled- 63 -LRB101 08168 SMS 53234 b

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on the effective date of this amendatory Act of
14the 98th General Assembly, "prescription and nonprescription
15medicines and drugs" includes medical cannabis purchased from a
16registered dispensing organization under the Compassionate Use
17of Medical Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
21does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23    If the property that is purchased at retail from a retailer
24is acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

SB1557 Enrolled- 64 -LRB101 08168 SMS 53234 b

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior out-of-state
3use.
4(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)
 
5    Section 7. The Service Use Tax Act is amended by changing
6Section 3-10 as follows:
 
7    (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the selling price of tangible personal property transferred as
11an incident to the sale of service, but, for the purpose of
12computing this tax, in no event shall the selling price be less
13than the cost price of the property to the serviceman.
14    Beginning on July 1, 2000 and through December 31, 2000,
15with respect to motor fuel, as defined in Section 1.1 of the
16Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
17the Use Tax Act, the tax is imposed at the rate of 1.25%.
18    With respect to gasohol, as defined in the Use Tax Act, the
19tax imposed by this Act applies to (i) 70% of the selling price
20of property transferred as an incident to the sale of service
21on or after January 1, 1990, and before July 1, 2003, (ii) 80%
22of the selling price of property transferred as an incident to
23the sale of service on or after July 1, 2003 and on or before
24July 1, 2017, and (iii) 100% of the selling price thereafter.

 

 

SB1557 Enrolled- 65 -LRB101 08168 SMS 53234 b

1If, at any time, however, the tax under this Act on sales of
2gasohol, as defined in the Use Tax Act, is imposed at the rate
3of 1.25%, then the tax imposed by this Act applies to 100% of
4the proceeds of sales of gasohol made during that time.
5    With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2023 but applies to 100% of the selling price
10thereafter.
11    With respect to biodiesel blends, as defined in the Use Tax
12Act, with no less than 1% and no more than 10% biodiesel, the
13tax imposed by this Act applies to (i) 80% of the selling price
14of property transferred as an incident to the sale of service
15on or after July 1, 2003 and on or before December 31, 2018 and
16(ii) 100% of the proceeds of the selling price thereafter. If,
17at any time, however, the tax under this Act on sales of
18biodiesel blends, as defined in the Use Tax Act, with no less
19than 1% and no more than 10% biodiesel is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of biodiesel blends with no less than 1%
22and no more than 10% biodiesel made during that time.
23    With respect to 100% biodiesel, as defined in the Use Tax
24Act, and biodiesel blends, as defined in the Use Tax Act, with
25more than 10% but no more than 99% biodiesel, the tax imposed
26by this Act does not apply to the proceeds of the selling price

 

 

SB1557 Enrolled- 66 -LRB101 08168 SMS 53234 b

1of property transferred as an incident to the sale of service
2on or after July 1, 2003 and on or before December 31, 2023 but
3applies to 100% of the selling price thereafter.
4    At the election of any registered serviceman made for each
5fiscal year, sales of service in which the aggregate annual
6cost price of tangible personal property transferred as an
7incident to the sales of service is less than 35%, or 75% in
8the case of servicemen transferring prescription drugs or
9servicemen engaged in graphic arts production, of the aggregate
10annual total gross receipts from all sales of service, the tax
11imposed by this Act shall be based on the serviceman's cost
12price of the tangible personal property transferred as an
13incident to the sale of those services.
14    The tax shall be imposed at the rate of 1% on food prepared
15for immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Occupation Tax Act
17by an entity licensed under the Hospital Licensing Act, the
18Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
19Act, the Specialized Mental Health Rehabilitation Act of 2013,
20or the Child Care Act of 1969. The tax shall also be imposed at
21the rate of 1% on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption and is not otherwise included in this
26paragraph) and prescription and nonprescription medicines,

 

 

SB1557 Enrolled- 67 -LRB101 08168 SMS 53234 b

1drugs, medical appliances, products classified as Class III
2medical devices by the United States Food and Drug
3Administration that are used for cancer treatment pursuant to a
4prescription, as well as any accessories and components related
5to those devices, modifications to a motor vehicle for the
6purpose of rendering it usable by a person with a disability,
7and insulin, urine testing materials, syringes, and needles
8used by diabetics, for human use. For the purposes of this
9Section, until September 1, 2009: the term "soft drinks" means
10any complete, finished, ready-to-use, non-alcoholic drink,
11whether carbonated or not, including but not limited to soda
12water, cola, fruit juice, vegetable juice, carbonated water,
13and all other preparations commonly known as soft drinks of
14whatever kind or description that are contained in any closed
15or sealed bottle, can, carton, or container, regardless of
16size; but "soft drinks" does not include coffee, tea,
17non-carbonated water, infant formula, milk or milk products as
18defined in the Grade A Pasteurized Milk and Milk Products Act,
19or drinks containing 50% or more natural fruit or vegetable
20juice.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "soft drinks" means non-alcoholic
23beverages that contain natural or artificial sweeteners. "Soft
24drinks" do not include beverages that contain milk or milk
25products, soy, rice or similar milk substitutes, or greater
26than 50% of vegetable or fruit juice by volume.

 

 

SB1557 Enrolled- 68 -LRB101 08168 SMS 53234 b

1    Until August 1, 2009, and notwithstanding any other
2provisions of this Act, "food for human consumption that is to
3be consumed off the premises where it is sold" includes all
4food sold through a vending machine, except soft drinks and
5food products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine. Beginning
7August 1, 2009, and notwithstanding any other provisions of
8this Act, "food for human consumption that is to be consumed
9off the premises where it is sold" includes all food sold
10through a vending machine, except soft drinks, candy, and food
11products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine.
13    Notwithstanding any other provisions of this Act,
14beginning September 1, 2009, "food for human consumption that
15is to be consumed off the premises where it is sold" does not
16include candy. For purposes of this Section, "candy" means a
17preparation of sugar, honey, or other natural or artificial
18sweeteners in combination with chocolate, fruits, nuts or other
19ingredients or flavorings in the form of bars, drops, or
20pieces. "Candy" does not include any preparation that contains
21flour or requires refrigeration.
22    Notwithstanding any other provisions of this Act,
23beginning September 1, 2009, "nonprescription medicines and
24drugs" does not include grooming and hygiene products. For
25purposes of this Section, "grooming and hygiene products"
26includes, but is not limited to, soaps and cleaning solutions,

 

 

SB1557 Enrolled- 69 -LRB101 08168 SMS 53234 b

1shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
2lotions and screens, unless those products are available by
3prescription only, regardless of whether the products meet the
4definition of "over-the-counter-drugs". For the purposes of
5this paragraph, "over-the-counter-drug" means a drug for human
6use that contains a label that identifies the product as a drug
7as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
8label includes:
9        (A) A "Drug Facts" panel; or
10        (B) A statement of the "active ingredient(s)" with a
11    list of those ingredients contained in the compound,
12    substance or preparation.
13    Beginning on January 1, 2014 (the effective date of Public
14Act 98-122), "prescription and nonprescription medicines and
15drugs" includes medical cannabis purchased from a registered
16dispensing organization under the Compassionate Use of Medical
17Cannabis Program Act.
18    As used in this Section, "adult use cannabis" means
19cannabis subject to tax under the Cannabis Cultivation
20Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
21does not include cannabis subject to tax under the
22Compassionate Use of Medical Cannabis Program Act.
23    If the property that is acquired from a serviceman is
24acquired outside Illinois and used outside Illinois before
25being brought to Illinois for use here and is taxable under
26this Act, the "selling price" on which the tax is computed

 

 

SB1557 Enrolled- 70 -LRB101 08168 SMS 53234 b

1shall be reduced by an amount that represents a reasonable
2allowance for depreciation for the period of prior out-of-state
3use.
4(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)
 
5    Section 8. The Service Occupation Tax Act is amended by
6changing Section 3-10 as follows:
 
7    (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
8    Sec. 3-10. Rate of tax. Unless otherwise provided in this
9Section, the tax imposed by this Act is at the rate of 6.25% of
10the "selling price", as defined in Section 2 of the Service Use
11Tax Act, of the tangible personal property. For the purpose of
12computing this tax, in no event shall the "selling price" be
13less than the cost price to the serviceman of the tangible
14personal property transferred. The selling price of each item
15of tangible personal property transferred as an incident of a
16sale of service may be shown as a distinct and separate item on
17the serviceman's billing to the service customer. If the
18selling price is not so shown, the selling price of the
19tangible personal property is deemed to be 50% of the
20serviceman's entire billing to the service customer. When,
21however, a serviceman contracts to design, develop, and produce
22special order machinery or equipment, the tax imposed by this
23Act shall be based on the serviceman's cost price of the
24tangible personal property transferred incident to the

 

 

SB1557 Enrolled- 71 -LRB101 08168 SMS 53234 b

1completion of the contract.
2    Beginning on July 1, 2000 and through December 31, 2000,
3with respect to motor fuel, as defined in Section 1.1 of the
4Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
5the Use Tax Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, as defined in the Use Tax Act, the
7tax imposed by this Act shall apply to (i) 70% of the cost
8price of property transferred as an incident to the sale of
9service on or after January 1, 1990, and before July 1, 2003,
10(ii) 80% of the selling price of property transferred as an
11incident to the sale of service on or after July 1, 2003 and on
12or before July 1, 2017, and (iii) 100% of the cost price
13thereafter. If, at any time, however, the tax under this Act on
14sales of gasohol, as defined in the Use Tax Act, is imposed at
15the rate of 1.25%, then the tax imposed by this Act applies to
16100% of the proceeds of sales of gasohol made during that time.
17    With respect to majority blended ethanol fuel, as defined
18in the Use Tax Act, the tax imposed by this Act does not apply
19to the selling price of property transferred as an incident to
20the sale of service on or after July 1, 2003 and on or before
21December 31, 2023 but applies to 100% of the selling price
22thereafter.
23    With respect to biodiesel blends, as defined in the Use Tax
24Act, with no less than 1% and no more than 10% biodiesel, the
25tax imposed by this Act applies to (i) 80% of the selling price
26of property transferred as an incident to the sale of service

 

 

SB1557 Enrolled- 72 -LRB101 08168 SMS 53234 b

1on or after July 1, 2003 and on or before December 31, 2018 and
2(ii) 100% of the proceeds of the selling price thereafter. If,
3at any time, however, the tax under this Act on sales of
4biodiesel blends, as defined in the Use Tax Act, with no less
5than 1% and no more than 10% biodiesel is imposed at the rate
6of 1.25%, then the tax imposed by this Act applies to 100% of
7the proceeds of sales of biodiesel blends with no less than 1%
8and no more than 10% biodiesel made during that time.
9    With respect to 100% biodiesel, as defined in the Use Tax
10Act, and biodiesel blends, as defined in the Use Tax Act, with
11more than 10% but no more than 99% biodiesel material, the tax
12imposed by this Act does not apply to the proceeds of the
13selling price of property transferred as an incident to the
14sale of service on or after July 1, 2003 and on or before
15December 31, 2023 but applies to 100% of the selling price
16thereafter.
17    At the election of any registered serviceman made for each
18fiscal year, sales of service in which the aggregate annual
19cost price of tangible personal property transferred as an
20incident to the sales of service is less than 35%, or 75% in
21the case of servicemen transferring prescription drugs or
22servicemen engaged in graphic arts production, of the aggregate
23annual total gross receipts from all sales of service, the tax
24imposed by this Act shall be based on the serviceman's cost
25price of the tangible personal property transferred incident to
26the sale of those services.

 

 

SB1557 Enrolled- 73 -LRB101 08168 SMS 53234 b

1    The tax shall be imposed at the rate of 1% on food prepared
2for immediate consumption and transferred incident to a sale of
3service subject to this Act or the Service Occupation Tax Act
4by an entity licensed under the Hospital Licensing Act, the
5Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
6Act, the Specialized Mental Health Rehabilitation Act of 2013,
7or the Child Care Act of 1969. The tax shall also be imposed at
8the rate of 1% on food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, food consisting of or infused with adult
11use cannabis, soft drinks, and food that has been prepared for
12immediate consumption and is not otherwise included in this
13paragraph) and prescription and nonprescription medicines,
14drugs, medical appliances, products classified as Class III
15medical devices by the United States Food and Drug
16Administration that are used for cancer treatment pursuant to a
17prescription, as well as any accessories and components related
18to those devices, modifications to a motor vehicle for the
19purpose of rendering it usable by a person with a disability,
20and insulin, urine testing materials, syringes, and needles
21used by diabetics, for human use. For the purposes of this
22Section, until September 1, 2009: the term "soft drinks" means
23any complete, finished, ready-to-use, non-alcoholic drink,
24whether carbonated or not, including but not limited to soda
25water, cola, fruit juice, vegetable juice, carbonated water,
26and all other preparations commonly known as soft drinks of

 

 

SB1557 Enrolled- 74 -LRB101 08168 SMS 53234 b

1whatever kind or description that are contained in any closed
2or sealed can, carton, or container, regardless of size; but
3"soft drinks" does not include coffee, tea, non-carbonated
4water, infant formula, milk or milk products as defined in the
5Grade A Pasteurized Milk and Milk Products Act, or drinks
6containing 50% or more natural fruit or vegetable juice.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "soft drinks" means non-alcoholic
9beverages that contain natural or artificial sweeteners. "Soft
10drinks" do not include beverages that contain milk or milk
11products, soy, rice or similar milk substitutes, or greater
12than 50% of vegetable or fruit juice by volume.
13    Until August 1, 2009, and notwithstanding any other
14provisions of this Act, "food for human consumption that is to
15be consumed off the premises where it is sold" includes all
16food sold through a vending machine, except soft drinks and
17food products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine. Beginning
19August 1, 2009, and notwithstanding any other provisions of
20this Act, "food for human consumption that is to be consumed
21off the premises where it is sold" includes all food sold
22through a vending machine, except soft drinks, candy, and food
23products that are dispensed hot from a vending machine,
24regardless of the location of the vending machine.
25    Notwithstanding any other provisions of this Act,
26beginning September 1, 2009, "food for human consumption that

 

 

SB1557 Enrolled- 75 -LRB101 08168 SMS 53234 b

1is to be consumed off the premises where it is sold" does not
2include candy. For purposes of this Section, "candy" means a
3preparation of sugar, honey, or other natural or artificial
4sweeteners in combination with chocolate, fruits, nuts or other
5ingredients or flavorings in the form of bars, drops, or
6pieces. "Candy" does not include any preparation that contains
7flour or requires refrigeration.
8    Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "nonprescription medicines and
10drugs" does not include grooming and hygiene products. For
11purposes of this Section, "grooming and hygiene products"
12includes, but is not limited to, soaps and cleaning solutions,
13shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
14lotions and screens, unless those products are available by
15prescription only, regardless of whether the products meet the
16definition of "over-the-counter-drugs". For the purposes of
17this paragraph, "over-the-counter-drug" means a drug for human
18use that contains a label that identifies the product as a drug
19as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
20label includes:
21        (A) A "Drug Facts" panel; or
22        (B) A statement of the "active ingredient(s)" with a
23    list of those ingredients contained in the compound,
24    substance or preparation.
25    Beginning on January 1, 2014 (the effective date of Public
26Act 98-122), "prescription and nonprescription medicines and

 

 

SB1557 Enrolled- 76 -LRB101 08168 SMS 53234 b

1drugs" includes medical cannabis purchased from a registered
2dispensing organization under the Compassionate Use of Medical
3Cannabis Program Act.
4    As used in this Section, "adult use cannabis" means
5cannabis subject to tax under the Cannabis Cultivation
6Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
7does not include cannabis subject to tax under the
8Compassionate Use of Medical Cannabis Program Act.
9(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)
 
10    Section 9. The Retailers' Occupation Tax Act is amended by
11changing Section 2-10 as follows:
 
12    (35 ILCS 120/2-10)
13    Sec. 2-10. Rate of tax. Unless otherwise provided in this
14Section, the tax imposed by this Act is at the rate of 6.25% of
15gross receipts from sales of tangible personal property made in
16the course of business.
17    Beginning on July 1, 2000 and through December 31, 2000,
18with respect to motor fuel, as defined in Section 1.1 of the
19Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
20the Use Tax Act, the tax is imposed at the rate of 1.25%.
21    Beginning on August 6, 2010 through August 15, 2010, with
22respect to sales tax holiday items as defined in Section 2-8 of
23this Act, the tax is imposed at the rate of 1.25%.
24    Within 14 days after the effective date of this amendatory

 

 

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1Act of the 91st General Assembly, each retailer of motor fuel
2and gasohol shall cause the following notice to be posted in a
3prominently visible place on each retail dispensing device that
4is used to dispense motor fuel or gasohol in the State of
5Illinois: "As of July 1, 2000, the State of Illinois has
6eliminated the State's share of sales tax on motor fuel and
7gasohol through December 31, 2000. The price on this pump
8should reflect the elimination of the tax." The notice shall be
9printed in bold print on a sign that is no smaller than 4
10inches by 8 inches. The sign shall be clearly visible to
11customers. Any retailer who fails to post or maintain a
12required sign through December 31, 2000 is guilty of a petty
13offense for which the fine shall be $500 per day per each
14retail premises where a violation occurs.
15    With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the proceeds of
17sales made on or after January 1, 1990, and before July 1,
182003, (ii) 80% of the proceeds of sales made on or after July
191, 2003 and on or before July 1, 2017, and (iii) 100% of the
20proceeds of sales made thereafter. If, at any time, however,
21the tax under this Act on sales of gasohol, as defined in the
22Use Tax Act, is imposed at the rate of 1.25%, then the tax
23imposed by this Act applies to 100% of the proceeds of sales of
24gasohol made during that time.
25    With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

 

 

SB1557 Enrolled- 78 -LRB101 08168 SMS 53234 b

1to the proceeds of sales made on or after July 1, 2003 and on or
2before December 31, 2023 but applies to 100% of the proceeds of
3sales made thereafter.
4    With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the proceeds of
7sales made on or after July 1, 2003 and on or before December
831, 2018 and (ii) 100% of the proceeds of sales made
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15    With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2023 but
20applies to 100% of the proceeds of sales made thereafter.
21    With respect to food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, food consisting of or infused with adult
24use cannabis, soft drinks, and food that has been prepared for
25immediate consumption) and prescription and nonprescription
26medicines, drugs, medical appliances, products classified as

 

 

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1Class III medical devices by the United States Food and Drug
2Administration that are used for cancer treatment pursuant to a
3prescription, as well as any accessories and components related
4to those devices, modifications to a motor vehicle for the
5purpose of rendering it usable by a person with a disability,
6and insulin, urine testing materials, syringes, and needles
7used by diabetics, for human use, the tax is imposed at the
8rate of 1%. For the purposes of this Section, until September
91, 2009: the term "soft drinks" means any complete, finished,
10ready-to-use, non-alcoholic drink, whether carbonated or not,
11including but not limited to soda water, cola, fruit juice,
12vegetable juice, carbonated water, and all other preparations
13commonly known as soft drinks of whatever kind or description
14that are contained in any closed or sealed bottle, can, carton,
15or container, regardless of size; but "soft drinks" does not
16include coffee, tea, non-carbonated water, infant formula,
17milk or milk products as defined in the Grade A Pasteurized
18Milk and Milk Products Act, or drinks containing 50% or more
19natural fruit or vegetable juice.
20    Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" do not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26    Until August 1, 2009, and notwithstanding any other

 

 

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1provisions of this Act, "food for human consumption that is to
2be consumed off the premises where it is sold" includes all
3food sold through a vending machine, except soft drinks and
4food products that are dispensed hot from a vending machine,
5regardless of the location of the vending machine. Beginning
6August 1, 2009, and notwithstanding any other provisions of
7this Act, "food for human consumption that is to be consumed
8off the premises where it is sold" includes all food sold
9through a vending machine, except soft drinks, candy, and food
10products that are dispensed hot from a vending machine,
11regardless of the location of the vending machine.
12    Notwithstanding any other provisions of this Act,
13beginning September 1, 2009, "food for human consumption that
14is to be consumed off the premises where it is sold" does not
15include candy. For purposes of this Section, "candy" means a
16preparation of sugar, honey, or other natural or artificial
17sweeteners in combination with chocolate, fruits, nuts or other
18ingredients or flavorings in the form of bars, drops, or
19pieces. "Candy" does not include any preparation that contains
20flour or requires refrigeration.
21    Notwithstanding any other provisions of this Act,
22beginning September 1, 2009, "nonprescription medicines and
23drugs" does not include grooming and hygiene products. For
24purposes of this Section, "grooming and hygiene products"
25includes, but is not limited to, soaps and cleaning solutions,
26shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

 

 

SB1557 Enrolled- 81 -LRB101 08168 SMS 53234 b

1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. § 201.66. The "over-the-counter-drug"
7label includes:
8        (A) A "Drug Facts" panel; or
9        (B) A statement of the "active ingredient(s)" with a
10    list of those ingredients contained in the compound,
11    substance or preparation.
12    Beginning on the effective date of this amendatory Act of
13the 98th General Assembly, "prescription and nonprescription
14medicines and drugs" includes medical cannabis purchased from a
15registered dispensing organization under the Compassionate Use
16of Medical Cannabis Program Act.
17    As used in this Section, "adult use cannabis" means
18cannabis subject to tax under the Cannabis Cultivation
19Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and
20does not include cannabis subject to tax under the
21Compassionate Use of Medical Cannabis Program Act.
22(Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19.)
 
23    Section 10. The Tobacco Products Tax Act of 1995 is amended
24by changing Section 10-5 as follows:
 

 

 

SB1557 Enrolled- 82 -LRB101 08168 SMS 53234 b

1    (35 ILCS 143/10-5)
2    Sec. 10-5. Definitions. For purposes of this Act:
3    "Business" means any trade, occupation, activity, or
4enterprise engaged in, at any location whatsoever, for the
5purpose of selling tobacco products.
6    "Cigarette" has the meaning ascribed to the term in Section
71 of the Cigarette Tax Act.
8    "Contraband little cigar" means:
9        (1) packages of little cigars containing 20 or 25
10    little cigars that do not bear a required tax stamp under
11    this Act;
12        (2) packages of little cigars containing 20 or 25
13    little cigars that bear a fraudulent, imitation, or
14    counterfeit tax stamp;
15        (3) packages of little cigars containing 20 or 25
16    little cigars that are improperly tax stamped, including
17    packages of little cigars that bear only a tax stamp of
18    another state or taxing jurisdiction; or
19        (4) packages of little cigars containing other than 20
20    or 25 little cigars in the possession of a distributor,
21    retailer or wholesaler, unless the distributor, retailer,
22    or wholesaler possesses, or produces within the time frame
23    provided in Section 10-27 or 10-28 of this Act, an invoice
24    from a stamping distributor, distributor, or wholesaler
25    showing that the tax on the packages has been or will be
26    paid.

 

 

SB1557 Enrolled- 83 -LRB101 08168 SMS 53234 b

1    "Correctional Industries program" means a program run by a
2State penal institution in which residents of the penal
3institution produce tobacco products for sale to persons
4incarcerated in penal institutions or resident patients of a
5State operated mental health facility.
6    "Department" means the Illinois Department of Revenue.
7    "Distributor" means any of the following:
8        (1) Any manufacturer or wholesaler in this State
9    engaged in the business of selling tobacco products who
10    sells, exchanges, or distributes tobacco products to
11    retailers or consumers in this State.
12        (2) Any manufacturer or wholesaler engaged in the
13    business of selling tobacco products from without this
14    State who sells, exchanges, distributes, ships, or
15    transports tobacco products to retailers or consumers
16    located in this State, so long as that manufacturer or
17    wholesaler has or maintains within this State, directly or
18    by subsidiary, an office, sales house, or other place of
19    business, or any agent or other representative operating
20    within this State under the authority of the person or
21    subsidiary, irrespective of whether the place of business
22    or agent or other representative is located here
23    permanently or temporarily.
24        (3) Any retailer who receives tobacco products on which
25    the tax has not been or will not be paid by another
26    distributor.

 

 

SB1557 Enrolled- 84 -LRB101 08168 SMS 53234 b

1    "Distributor" does not include any person, wherever
2resident or located, who makes, manufactures, or fabricates
3tobacco products as part of a Correctional Industries program
4for sale to residents incarcerated in penal institutions or
5resident patients of a State operated mental health facility.
6    "Electronic cigarette" means:
7        (1) any device that employs a battery or other
8    mechanism to heat a solution or substance to produce a
9    vapor or aerosol intended for inhalation;
10        (2) any cartridge or container of a solution or
11    substance intended to be used with or in the device or to
12    refill the device; or
13        (3) any solution or substance, whether or not it
14    contains nicotine, intended for use in the device.
15    "Electronic cigarette" includes, but is not limited to, any
16electronic nicotine delivery system, electronic cigar,
17electronic cigarillo, electronic pipe, electronic hookah, vape
18pen, or similar product or device, and any component or part
19that can be used to build the product or device. "Electronic
20cigarette" does not include: cigarettes, as defined in Section
211 of the Cigarette Tax Act; any product approved by the United
22States Food and Drug Administration for sale as a tobacco
23cessation product, a tobacco dependence product, or for other
24medical purposes that is marketed and sold solely for that
25approved purpose; any asthma inhaler prescribed by a physician
26for that condition that is marketed and sold solely for that

 

 

SB1557 Enrolled- 85 -LRB101 08168 SMS 53234 b

1approved purpose; or any therapeutic product approved for use
2under the Compassionate Use of Medical Cannabis Pilot Program
3Act.
4    "Little cigar" means and includes any roll, made wholly or
5in part of tobacco, where such roll has an integrated cellulose
6acetate filter and weighs less than 4 pounds per thousand and
7the wrapper or cover of which is made in whole or in part of
8tobacco.
9    "Manufacturer" means any person, wherever resident or
10located, who manufactures and sells tobacco products, except a
11person who makes, manufactures, or fabricates tobacco products
12as a part of a Correctional Industries program for sale to
13persons incarcerated in penal institutions or resident
14patients of a State operated mental health facility.
15    Beginning on January 1, 2013, "moist snuff" means any
16finely cut, ground, or powdered tobacco that is not intended to
17be smoked, but shall not include any finely cut, ground, or
18powdered tobacco that is intended to be placed in the nasal
19cavity.
20    "Person" means any natural individual, firm, partnership,
21association, joint stock company, joint venture, limited
22liability company, or public or private corporation, however
23formed, or a receiver, executor, administrator, trustee,
24conservator, or other representative appointed by order of any
25court.
26    "Place of business" means and includes any place where

 

 

SB1557 Enrolled- 86 -LRB101 08168 SMS 53234 b

1tobacco products are sold or where tobacco products are
2manufactured, stored, or kept for the purpose of sale or
3consumption, including any vessel, vehicle, airplane, train,
4or vending machine.
5    "Retailer" means any person in this State engaged in the
6business of selling tobacco products to consumers in this
7State, regardless of quantity or number of sales.
8    "Sale" means any transfer, exchange, or barter in any
9manner or by any means whatsoever for a consideration and
10includes all sales made by persons.
11    "Stamp" or "stamps" mean the indicia required to be affixed
12on a package of little cigars that evidence payment of the tax
13on packages of little cigars containing 20 or 25 little cigars
14under Section 10-10 of this Act. These stamps shall be the same
15stamps used for cigarettes under the Cigarette Tax Act.
16    "Stamping distributor" means a distributor licensed under
17this Act and also licensed as a distributor under the Cigarette
18Tax Act or Cigarette Use Tax Act.
19    "Tobacco products" means any cigars, including little
20cigars; cheroots; stogies; periques; granulated, plug cut,
21crimp cut, ready rubbed, and other smoking tobacco; snuff
22(including moist snuff) or snuff flour; cavendish; plug and
23twist tobacco; fine-cut and other chewing tobaccos; shorts;
24refuse scraps, clippings, cuttings, and sweeping of tobacco;
25and other kinds and forms of tobacco, prepared in such manner
26as to be suitable for chewing or smoking in a pipe or

 

 

SB1557 Enrolled- 87 -LRB101 08168 SMS 53234 b

1otherwise, or both for chewing and smoking; but does not
2include cigarettes as defined in Section 1 of the Cigarette Tax
3Act or tobacco purchased for the manufacture of cigarettes by
4cigarette distributors and manufacturers defined in the
5Cigarette Tax Act and persons who make, manufacture, or
6fabricate cigarettes as a part of a Correctional Industries
7program for sale to residents incarcerated in penal
8institutions or resident patients of a State operated mental
9health facility.
10    Beginning on July 1, 2019, "tobacco products" also includes
11electronic cigarettes.
12    "Wholesale price" means the established list price for
13which a manufacturer sells tobacco products to a distributor,
14before the allowance of any discount, trade allowance, rebate,
15or other reduction. In the absence of such an established list
16price, the manufacturer's invoice price at which the
17manufacturer sells the tobacco product to unaffiliated
18distributors, before any discounts, trade allowances, rebates,
19or other reductions, shall be presumed to be the wholesale
20price.
21    "Wholesaler" means any person, wherever resident or
22located, engaged in the business of selling tobacco products to
23others for the purpose of resale. "Wholesaler", when used in
24this Act, does not include a person licensed as a distributor
25under Section 10-20 of this Act unless expressly stated in this
26Act.

 

 

SB1557 Enrolled- 88 -LRB101 08168 SMS 53234 b

1(Source: P.A. 101-31, eff. 6-28-19.)
 
2    Section 15. The Counties Code is amended by changing
3Section 5-1006.8 as follows:
 
4    (55 ILCS 5/5-1006.8)
5    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
6Law.
7    (a) This Section may be referred to as the County Cannabis
8Retailers' Occupation Tax Law. The On and after January 1,
92020, the corporate authorities of any county may, by
10ordinance, impose a tax upon all persons engaged in the
11business of selling cannabis, other than cannabis purchased
12under the Compassionate Use of Medical Cannabis Pilot Program
13Act, at retail in the county on the gross receipts from these
14sales made in the course of that business. If imposed, the tax
15shall be imposed only in 0.25% increments. The tax rate may not
16exceed: (i) 3.75% of the gross receipts of sales made in
17unincorporated areas of the county; and (ii) 3% of the gross
18receipts of sales made in a municipality located in the county.
19The tax imposed under this Section and all civil penalties that
20may be assessed as an incident of the tax shall be collected
21and enforced by the Department of Revenue. The Department of
22Revenue shall have full power to administer and enforce this
23Section; to collect all taxes and penalties due hereunder; to
24dispose of taxes and penalties so collected in the manner

 

 

SB1557 Enrolled- 89 -LRB101 08168 SMS 53234 b

1hereinafter provided; and to determine all rights to credit
2memoranda arising on account of the erroneous payment of tax or
3penalty under this Section. In the administration of and
4compliance with this Section, the Department of Revenue and
5persons who are subject to this Section shall have the same
6rights, remedies, privileges, immunities, powers and duties,
7and be subject to the same conditions, restrictions,
8limitations, penalties, and definitions of terms, and employ
9the same modes of procedure, as are described in Sections 1,
101a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect
11to all provisions therein other than the State rate of tax),
122a, 2b, 2c, 2i, 3 (except as to the disposition of taxes and
13penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
145j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7 8, 8, 9, 10, 11, 11a, 12, and
1513 of the Retailers' Occupation Tax Act and Section 3-7 of the
16Uniform Penalty and Interest Act as fully as if those
17provisions were set forth in this Section.
18    (b) Persons subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20seller's tax liability hereunder by separately stating that tax
21as an additional charge, which charge may be stated in
22combination, in a single amount, with any State tax that
23sellers are required to collect.
24    (c) Whenever the Department of Revenue determines that a
25refund should be made under this Section to a claimant instead
26of issuing a credit memorandum, the Department of Revenue shall

 

 

SB1557 Enrolled- 90 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 91 -LRB101 08168 SMS 53234 b

1Department, at the time of each monthly disbursement to the
2counties, shall prepare and certify the State Comptroller the
3amount to be transferred into the Tax Compliance and
4Administration Fund under this Section. Within 10 days after
5receipt by the Comptroller of the disbursement certification to
6the counties and the Tax Compliance and Administration Fund
7provided for in this Section to be given to the Comptroller by
8the Department, the Comptroller shall cause the orders to be
9drawn for the respective amounts in accordance with the
10directions contained in the certification.
11    (f) An ordinance or resolution imposing or discontinuing a
12tax under this Section or effecting a change in the rate
13thereof that is shall be adopted on or after June 25, 2019 (the
14effective date of Public Act 101-27) and for which a certified
15copy is thereof filed with the Department on or before April 1,
162020 shall be administered and enforced by the Department
17beginning on July 1, 2020. For ordinances filed with the
18Department after April 1, 2020, an ordinance or resolution
19imposing or discontinuing a tax under this Section or effecting
20a change in the rate thereof shall either (i) be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of April, whereupon the Department shall proceed
23to administer and enforce this Section as of the first day of
24July next following the adoption and filing; or (ii) be adopted
25and a certified copy thereof filed with the Department on or
26before the first day of October, whereupon the Department shall

 

 

SB1557 Enrolled- 92 -LRB101 08168 SMS 53234 b

1proceed to administer and enforce this Section as of the first
2day of January the first day of June, whereupon the Department
3shall proceed to administer and enforce this Section as of the
4first day of September next following the adoption and filing.
5(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)
 
6    Section 20. The Illinois Municipal Code is amended by
7changing and renumbering Section 8-11-22, as added by Public
8Act 101-27, and by changing Section 8-11-6a as follows:
 
9    (65 ILCS 5/8-11-6a)  (from Ch. 24, par. 8-11-6a)
10    Sec. 8-11-6a. Home rule municipalities; preemption of
11certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
128-11-6, 8-11-6b, 8-11-6c, 8-11-23 8-11-22, and 11-74.3-6 on and
13after September 1, 1990, no home rule municipality has the
14authority to impose, pursuant to its home rule authority, a
15retailer's occupation tax, service occupation tax, use tax,
16sales tax or other tax on the use, sale or purchase of tangible
17personal property based on the gross receipts from such sales
18or the selling or purchase price of said tangible personal
19property. Notwithstanding the foregoing, this Section does not
20preempt any home rule imposed tax such as the following: (1) a
21tax on alcoholic beverages, whether based on gross receipts,
22volume sold or any other measurement; (2) a tax based on the
23number of units of cigarettes or tobacco products (provided,
24however, that a home rule municipality that has not imposed a

 

 

SB1557 Enrolled- 93 -LRB101 08168 SMS 53234 b

1tax based on the number of units of cigarettes or tobacco
2products before July 1, 1993, shall not impose such a tax after
3that date); (3) a tax, however measured, based on the use of a
4hotel or motel room or similar facility; (4) a tax, however
5measured, on the sale or transfer of real property; (5) a tax,
6however measured, on lease receipts; (6) a tax on food prepared
7for immediate consumption and on alcoholic beverages sold by a
8business which provides for on premise consumption of said food
9or alcoholic beverages; or (7) other taxes not based on the
10selling or purchase price or gross receipts from the use, sale
11or purchase of tangible personal property. This Section does
12not preempt a home rule municipality with a population of more
13than 2,000,000 from imposing a tax, however measured, on the
14use, for consideration, of a parking lot, garage, or other
15parking facility. This Section is not intended to affect any
16existing tax on food and beverages prepared for immediate
17consumption on the premises where the sale occurs, or any
18existing tax on alcoholic beverages, or any existing tax
19imposed on the charge for renting a hotel or motel room, which
20was in effect January 15, 1988, or any extension of the
21effective date of such an existing tax by ordinance of the
22municipality imposing the tax, which extension is hereby
23authorized, in any non-home rule municipality in which the
24imposition of such a tax has been upheld by judicial
25determination, nor is this Section intended to preempt the
26authority granted by Public Act 85-1006. On and after December

 

 

SB1557 Enrolled- 94 -LRB101 08168 SMS 53234 b

11, 2019, no home rule municipality has the authority to impose,
2pursuant to its home rule authority, a tax, however measured,
3on sales of aviation fuel, as defined in Section 3 of the
4Retailers' Occupation Tax Act, unless the tax is not subject to
5the revenue use requirements of 49 U.S.C. 47107(b) 47017(b) and
649 U.S.C. 47133, or unless the tax revenue is expended for
7airport-related purposes. For purposes of this Section,
8"airport-related purposes" has the meaning ascribed in Section
96z-20.2 of the State Finance Act. Aviation fuel shall be
10excluded from tax only if, and for so long as, the revenue use
11requirements of 49 U.S.C. 47107(b) 47017(b) and 49 U.S.C. 47133
12are binding on the municipality. This Section is a limitation,
13pursuant to subsection (g) of Section 6 of Article VII of the
14Illinois Constitution, on the power of home rule units to tax.
15The changes made to this Section by Public Act 101-10 this
16amendatory Act of the 101st General Assembly are a denial and
17limitation of home rule powers and functions under subsection
18(g) of Section 6 of Article VII of the Illinois Constitution.
19(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
20revised 8-19-19.)
 
21    (65 ILCS 5/8-11-23)
22    Sec. 8-11-23 8-11-22. Municipal Cannabis Retailers'
23Occupation Tax Law.
24    (a) This Section may be referred to as the Municipal
25Cannabis Retailers' Occupation Tax Law. The On and after

 

 

SB1557 Enrolled- 95 -LRB101 08168 SMS 53234 b

1January 1, 2020, the corporate authorities of any municipality
2may, by ordinance, impose a tax upon all persons engaged in the
3business of selling cannabis, other than cannabis purchased
4under the Compassionate Use of Medical Cannabis Pilot Program
5Act, at retail in the municipality on the gross receipts from
6these sales made in the course of that business. If imposed,
7the tax may not exceed 3% of the gross receipts from these
8sales and shall only be imposed in 1/4% increments. The tax
9imposed under this Section and all civil penalties that may be
10assessed as an incident of the tax shall be collected and
11enforced by the Department of Revenue. The Department of
12Revenue shall have full power to administer and enforce this
13Section; to collect all taxes and penalties due hereunder; to
14dispose of taxes and penalties so collected in the manner
15hereinafter provided; and to determine all rights to credit
16memoranda arising on account of the erroneous payment of tax or
17penalty under this Section. In the administration of and
18compliance with this Section, the Department and persons who
19are subject to this Section shall have the same rights,
20remedies, privileges, immunities, powers and duties, and be
21subject to the same conditions, restrictions, limitations,
22penalties and definitions of terms, and employ the same modes
23of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
241i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
25provisions therein other than the State rate of tax), 2a, 2b,
262c, 2i, 3 (except as to the disposition of taxes and penalties

 

 

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

 

 

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

 

 

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1tax under this Section or effecting a change in the rate
2thereof that is shall be adopted on or after June 25, 2019 (the
3effective date of Public Act 101-27) and for which a certified
4copy is thereof filed with the Department on or before April 1,
52020 shall be administered and enforced by the Department
6beginning on July 1, 2020. For ordinances filed with the
7Department after April 1, 2020, an ordinance or resolution
8imposing or discontinuing a tax under this Section or effecting
9a change in the rate thereof shall either (i) be adopted and a
10certified copy thereof filed with the Department on or before
11the first day of April, whereupon the Department shall proceed
12to administer and enforce this Section as of the first day of
13July next following the adoption and filing; or (ii) be adopted
14and a certified copy thereof filed with the Department on or
15before the first day of October, whereupon the Department shall
16proceed to administer and enforce this Section as of the first
17day of January the first day of June, whereupon the Department
18shall proceed to administer and enforce this Section as of the
19first day of September next following the adoption and filing.
20(Source: P.A. 101-27, eff. 6-25-19; revised 9-17-19.)
 
21    Section 21. The Savings Bank Act is amended by changing
22Section 9002 as follows:
 
23    (205 ILCS 205/9002)  (from Ch. 17, par. 7309-2)
24    Sec. 9002. Powers of Secretary.

 

 

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1    (a) The Secretary shall have the following powers and
2duties:
3        (1) To exercise the rights, powers, and duties set
4    forth in this Act or in any related Act.
5        (2) To establish regulations as may be reasonable or
6    necessary to accomplish the purposes of this Act.
7        (3) To make an annual report regarding the work of his
8    or her office under this Act as he may consider desirable
9    to the Governor, or as the Governor may request.
10        (4) To cause a suit to be filed in his or her name to
11    enforce any law of this State that applies to savings
12    banks, their service corporations, subsidiaries,
13    affiliates, or holding companies operating under this Act,
14    including the enforcement of any obligation of the
15    officers, directors, agents, or employees of any savings
16    bank.
17        (5) To prescribe a uniform manner in which the books
18    and records of every savings bank are to be maintained.
19        (6) To establish a reasonable fee structure for savings
20    banks and holding companies operating under this Act and
21    for their service corporations and subsidiaries. The fees
22    shall include, but not be limited to, annual fees,
23    application fees, regular and special examination fees,
24    and other fees as the Secretary establishes and
25    demonstrates to be directly resultant from the Secretary's
26    responsibilities under this Act and as are directly

 

 

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1    attributable to individual entities operating under this
2    Act. The aggregate of all moneys collected by the Secretary
3    on and after the effective date of this Act shall be paid
4    promptly after receipt of the same, accompanied by a
5    detailed statement thereof, into the Savings Bank
6    Regulatory Fund established under Section 9002.1 of this
7    Act. Nothing in this Act shall prevent continuing the
8    practice of paying expenses involving salaries,
9    retirement, social security, and State-paid insurance of
10    State officers by appropriation from the General Revenue
11    Fund. The Secretary may require payment of the fees under
12    this Act by an electronic transfer of funds or an automatic
13    debit of an account of each of the savings banks.
14    (b) Notwithstanding the provisions of subsection (a), the
15Secretary shall not:
16        (1) issue an order against a savings bank or holding
17    company organized under this Act for unsafe or unsound
18    banking practices solely because the entity provides or has
19    provided financial services to a cannabis-related
20    legitimate business;
21        (2) prohibit, penalize, or otherwise discourage a
22    savings bank or holding company organized under this Act
23    from providing financial services to a cannabis-related
24    legitimate business solely because the entity provides or
25    has provided financial services to a cannabis-related
26    legitimate business;

 

 

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1        (3) recommend, incentivize, or encourage a savings
2    bank or holding company organized under this Act not to
3    offer financial services to an account holder or to
4    downgrade or cancel the financial services offered to an
5    account holder solely because:
6            (A) the account holder is a manufacturer or
7        producer, or is the owner, operator, or employee of, a
8        cannabis-related legitimate business;
9            (B) the account holder later becomes an owner or
10        operator of a cannabis-related legitimate business; or
11            (C) the savings bank or holding company organized
12        under this Act was not aware that the account holder is
13        the owner or operator of a cannabis-related legitimate
14        business; or
15        (4) take any adverse or corrective supervisory action
16    on a loan made to an owner or operator of:
17            (A) a cannabis-related legitimate business solely
18        because the owner or operator owns or operates a
19        cannabis-related legitimate business; or
20            (B) real estate or equipment that is leased to a
21        cannabis-related legitimate business solely because
22        the owner or operator of the real estate or equipment
23        leased the equipment or real estate to a
24        cannabis-related legitimate business.
25(Source: P.A. 97-492, eff. 1-1-12; 98-1081, eff. 1-1-15.)
 

 

 

SB1557 Enrolled- 102 -LRB101 08168 SMS 53234 b

1    Section 23. The Smoke Free Illinois Act is amended by
2changing Section 35 as follows:
 
3    (410 ILCS 82/35)
4    Sec. 35. Exemptions. Notwithstanding any other provision
5of this Act, smoking is allowed in the following areas:
6        (1) Private residences or dwelling places, except when
7    used as a child care, adult day care, or healthcare
8    facility or any other home-based business open to the
9    public.
10        (2) Retail tobacco stores as defined in Section 10 of
11    this Act in operation prior to the effective date of this
12    amendatory Act of the 95th General Assembly. The retail
13    tobacco store shall annually file with the Department by
14    January 31st an affidavit stating the percentage of its
15    gross income during the prior calendar year that was
16    derived from the sale of loose tobacco, plants, or herbs
17    and cigars, cigarettes, pipes, or other smoking devices for
18    smoking tobacco and related smoking accessories. Any
19    retail tobacco store that begins operation after the
20    effective date of this amendatory Act may only qualify for
21    an exemption if located in a freestanding structure
22    occupied solely by the business and smoke from the business
23    does not migrate into an enclosed area where smoking is
24    prohibited. A retail tobacco store may, with authorization
25    or permission from a unit of local government, including a

 

 

SB1557 Enrolled- 103 -LRB101 08168 SMS 53234 b

1    home rule unit, or any non-home rule county within the
2    unincorporated territory of the county, allow the
3    on-premises consumption of cannabis in a specially
4    designated areas.
5        (3) (Blank).
6        (4) Hotel and motel sleeping rooms that are rented to
7    guests and are designated as smoking rooms, provided that
8    all smoking rooms on the same floor must be contiguous and
9    smoke from these rooms must not infiltrate into nonsmoking
10    rooms or other areas where smoking is prohibited. Not more
11    than 25% of the rooms rented to guests in a hotel or motel
12    may be designated as rooms where smoking is allowed. The
13    status of rooms as smoking or nonsmoking may not be
14    changed, except to permanently add additional nonsmoking
15    rooms.
16        (5) Enclosed laboratories that are excluded from the
17    definition of "place of employment" in Section 10 of this
18    Act. Rulemaking authority to implement this amendatory Act
19    of the 95th General Assembly, if any, is conditioned on the
20    rules being adopted in accordance with all provisions of
21    the Illinois Administrative Procedure Act and all rules and
22    procedures of the Joint Committee on Administrative Rules;
23    any purported rule not so adopted, for whatever reason, is
24    unauthorized.
25        (6) Common smoking rooms in long-term care facilities
26    operated under the authority of the Illinois Department of

 

 

SB1557 Enrolled- 104 -LRB101 08168 SMS 53234 b

1    Veterans' Affairs or licensed under the Nursing Home Care
2    Act that are accessible only to residents who are smokers
3    and have requested in writing to have access to the common
4    smoking room where smoking is permitted and the smoke shall
5    not infiltrate other areas of the long-term care facility.
6    Rulemaking authority to implement this amendatory Act of
7    the 95th General Assembly, if any, is conditioned on the
8    rules being adopted in accordance with all provisions of
9    the Illinois Administrative Procedure Act and all rules and
10    procedures of the Joint Committee on Administrative Rules;
11    any purported rule not so adopted, for whatever reason, is
12    unauthorized.
13        (7) A convention hall of the Donald E. Stephens
14    Convention Center where a meeting or trade show for
15    manufacturers and suppliers of tobacco and tobacco
16    products and accessories is being held, during the time the
17    meeting or trade show is occurring, if the meeting or trade
18    show:
19            (i) is a trade-only event and not open to the
20        public;
21            (ii) is limited to attendees and exhibitors that
22        are 21 years of age or older;
23            (iii) is being produced or organized by a business
24        relating to tobacco or a professional association for
25        convenience stores; and
26            (iv) involves the display of tobacco products.

 

 

SB1557 Enrolled- 105 -LRB101 08168 SMS 53234 b

1        Smoking is not allowed in any public area outside of
2    the hall designated for the meeting or trade show.
3        This paragraph (7) is inoperative on and after October
4    1, 2015.
5        (8) A dispensing organization, as defined in the
6    Cannabis Regulation and Tax Act, authorized or permitted by
7    a unit local government to allow on-site consumption of
8    cannabis, if the establishment: (1) maintains a specially
9    designated area or areas for the purpose of heating,
10    burning, smoking, or lighting cannabis; (2) is limited to
11    individuals 21 or older; and (3) maintains a locked door or
12    barrier to any specially designated areas for the purpose
13    of heating, burning, smoking or lighting cannabis.
14(Source: P.A. 98-1023, eff. 8-22-14.)
 
15    Section 24. The Compassionate Use of Medical Cannabis
16Program Act is amended by changing Sections 60 and 210 as
17follows:
 
18    (410 ILCS 130/60)
19    Sec. 60. Issuance of registry identification cards.
20    (a) Except as provided in subsection (b), the Department of
21Public Health shall:
22        (1) verify the information contained in an application
23    or renewal for a registry identification card submitted
24    under this Act, and approve or deny an application or

 

 

SB1557 Enrolled- 106 -LRB101 08168 SMS 53234 b

1    renewal, within 90 days of receiving a completed
2    application or renewal application and all supporting
3    documentation specified in Section 55;
4        (2) issue registry identification cards to a
5    qualifying patient and his or her designated caregiver, if
6    any, within 15 business days of approving the application
7    or renewal;
8        (3) enter the registry identification number of the
9    registered dispensing organization the patient designates
10    into the verification system; and
11        (4) allow for an electronic application process, and
12    provide a confirmation by electronic or other methods that
13    an application has been submitted.
14    Notwithstanding any other provision of this Act, the
15Department of Public Health shall adopt rules for qualifying
16patients and applicants with life-long debilitating medical
17conditions, who may be charged annual renewal fees. The
18Department of Public Health shall not require patients and
19applicants with life-long debilitating medical conditions to
20apply to renew registry identification cards.
21    (b) The Department of Public Health may not issue a
22registry identification card to a qualifying patient who is
23under 18 years of age, unless that patient suffers from
24seizures, including those characteristic of epilepsy, or as
25provided by administrative rule. The Department of Public
26Health shall adopt rules for the issuance of a registry

 

 

SB1557 Enrolled- 107 -LRB101 08168 SMS 53234 b

1identification card for qualifying patients who are under 18
2years of age and suffering from seizures, including those
3characteristic of epilepsy. The Department of Public Health may
4adopt rules to allow other individuals under 18 years of age to
5become registered qualifying patients under this Act with the
6consent of a parent or legal guardian. Registered qualifying
7patients under 18 21 years of age shall be prohibited from
8consuming forms of cannabis other than medical cannabis infused
9products and purchasing any usable cannabis or paraphernalia
10used for smoking or vaping medical cannabis.
11    (c) A veteran who has received treatment at a VA hospital
12is deemed to have a bona fide health care professional-patient
13relationship with a VA certifying health care professional if
14the patient has been seen for his or her debilitating medical
15condition at the VA hospital in accordance with VA hospital
16protocols. All reasonable inferences regarding the existence
17of a bona fide health care professional-patient relationship
18shall be drawn in favor of an applicant who is a veteran and
19has undergone treatment at a VA hospital.
20    (c-10) An individual who submits an application as someone
21who is terminally ill shall have all fees waived. The
22Department of Public Health shall within 30 days after this
23amendatory Act of the 99th General Assembly adopt emergency
24rules to expedite approval for terminally ill individuals.
25These rules shall include, but not be limited to, rules that
26provide that applications by individuals with terminal

 

 

SB1557 Enrolled- 108 -LRB101 08168 SMS 53234 b

1illnesses shall be approved or denied within 14 days of their
2submission.
3    (d) No later than 6 months after the effective date of this
4amendatory Act of the 101st General Assembly, the Secretary of
5State shall remove all existing notations on driving records
6that the person is a registered qualifying patient or his or
7her caregiver under this Act. Upon the approval of the
8registration and issuance of a registry card under this
9Section, the Department of Public Health shall forward the
10designated caregiver or registered qualified patient's
11driver's registration number to the Secretary of State and
12certify that the individual is permitted to engage in the
13medical use of cannabis. For the purposes of law enforcement,
14the Secretary of State shall make a notation on the person's
15driving record stating the person is a registered qualifying
16patient who is entitled to the lawful medical use of cannabis.
17If the person no longer holds a valid registry card, the
18Department shall notify the Secretary of State and the
19Secretary of State shall remove the notation from the person's
20driving record. The Department and the Secretary of State may
21establish a system by which the information may be shared
22electronically.
23    (e) Upon the approval of the registration and issuance of a
24registry card under this Section, the Department of Public
25Health shall electronically forward the registered qualifying
26patient's identification card information to the Prescription

 

 

SB1557 Enrolled- 109 -LRB101 08168 SMS 53234 b

1Monitoring Program established under the Illinois Controlled
2Substances Act and certify that the individual is permitted to
3engage in the medical use of cannabis. For the purposes of
4patient care, the Prescription Monitoring Program shall make a
5notation on the person's prescription record stating that the
6person is a registered qualifying patient who is entitled to
7the lawful medical use of cannabis. If the person no longer
8holds a valid registry card, the Department of Public Health
9shall notify the Prescription Monitoring Program and
10Department of Human Services to remove the notation from the
11person's record. The Department of Human Services and the
12Prescription Monitoring Program shall establish a system by
13which the information may be shared electronically. This
14confidential list may not be combined or linked in any manner
15with any other list or database except as provided in this
16Section.
17    (f) (Blank).
18(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
19    (410 ILCS 130/210)
20    Sec. 210. Returns.
21    (a) This subsection (a) applies to returns due on or before
22the effective date of this amendatory Act of the 101st General
23Assembly. On or before the twentieth day of each calendar
24month, every person subject to the tax imposed under this Law
25during the preceding calendar month shall file a return with

 

 

SB1557 Enrolled- 110 -LRB101 08168 SMS 53234 b

1the Department, stating:
2        (1) The name of the taxpayer;
3        (2) The number of ounces of medical cannabis sold to a
4    dispensing dispensary organization or a registered
5    qualifying patient 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. 101-27, eff. 6-25-19.)
 
22    Section 25. The Cannabis Regulation and Tax Act is amended
23by changing Sections 1-5, 1-10, 5-5, 5-15, 5-20, 5-25, 7-1,
247-10, 7-15, 7-25, 10-5, 10-10, 10-15, 10-25, 10-30, 10-35,
2510-40, 10-50, 15-15, 15-20, 15-25, 15-30, 15-35, 15-36, 15-40,

 

 

SB1557 Enrolled- 111 -LRB101 08168 SMS 53234 b

115-55, 15-65, 15-70, 15-75, 15-85, 15-95, 15-100, 15-145,
215-155, 20-10, 20-15, 20-20, 20-30, 25-1, 25-10, 30-5, 30-10,
330-15, 30-30, 35-5, 35-15, 35-25, 35-31, 40-5, 40-10, 40-15,
440-20, 40-25, 40-30, 40-35, 40-40, 45-5, 50-5, 55-10, 55-20,
555-21, 55-25, 55-28, 55-30, 55-35, 55-65, 55-80, 55-85, 55-95,
660-5, 60-20, 65-5, 65-10, and 65-15 and by adding Section 1-7
7as follows:
 
8    (410 ILCS 705/1-5)
9    Sec. 1-5. Findings.
10    (a) In the interest of allowing law enforcement to focus on
11violent and property crimes, generating revenue for education,
12substance abuse prevention and treatment, freeing public
13resources to invest in communities and other public purposes,
14and individual freedom, the General Assembly finds and declares
15that the use of cannabis should be legal for persons 21 years
16of age or older and should be taxed in a manner similar to
17alcohol.
18    (b) In the interest of the health and public safety of the
19residents of Illinois, the General Assembly further finds and
20declares that cannabis should be regulated in a manner similar
21to alcohol so that:
22        (1) persons will have to show proof of age before
23    purchasing cannabis;
24        (2) selling, distributing, or transferring cannabis to
25    minors and other persons under 21 years of age shall remain

 

 

SB1557 Enrolled- 112 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 113 -LRB101 08168 SMS 53234 b

1and employer workplace policies shall be interpreted broadly to
2protect employee safety.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/1-7 new)
5    Sec. 1-7. Lawful user and lawful products. For the purposes
6of this Act and to clarify the legislative findings on the
7lawful use of cannabis, a person shall not be considered an
8unlawful user or addicted to narcotics solely as a result of
9his or her possession or use of cannabis or cannabis
10paraphernalia in accordance with this Act.
 
11    (410 ILCS 705/1-10)
12    Sec. 1-10. Definitions. In this Act:
13    "Adult Use Cultivation Center License" means a license
14issued by the Department of Agriculture that permits a person
15to act as a cultivation center under this Act and any
16administrative rule made in furtherance of this Act.
17    "Adult Use Dispensing Organization License" means a
18license issued by the Department of Financial and Professional
19Regulation that permits a person to act as a dispensing
20organization under this Act and any administrative rule made in
21furtherance of this Act.
22    "Advertise" means to engage in promotional activities
23including, but not limited to: newspaper, radio, Internet and
24electronic media, and television advertising; the distribution

 

 

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1of fliers and circulars; billboard advertising; and the display
2of window and interior signs. "Advertise" does not mean
3exterior signage displaying only the name of the licensed
4cannabis business establishment.
5    "BLS Region" means a region in Illinois used by the United
6States Bureau of Labor Statistics to gather and categorize
7certain employment and wage data. The 17 such regions in
8Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
9Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
10Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
11Rockford, St. Louis, Springfield, Northwest Illinois
12nonmetropolitan area, West Central Illinois nonmetropolitan
13area, East Central Illinois nonmetropolitan area, and South
14Illinois nonmetropolitan area.
15    "Cannabis" means marijuana, hashish, and other substances
16that are identified as including any parts of the plant
17Cannabis sativa and including derivatives or subspecies, such
18as indica, of all strains of cannabis, whether growing or not;
19the seeds thereof, the resin extracted from any part of the
20plant; and any compound, manufacture, salt, derivative,
21mixture, or preparation of the plant, its seeds, or resin,
22including tetrahydrocannabinol (THC) and all other naturally
23produced cannabinol derivatives, whether produced directly or
24indirectly by extraction; however, "cannabis" does not include
25the mature stalks of the plant, fiber produced from the stalks,
26oil or cake made from the seeds of the plant, any other

 

 

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1compound, manufacture, salt, derivative, mixture, or
2preparation of the mature stalks (except the resin extracted
3from it), fiber, oil or cake, or the sterilized seed of the
4plant that is incapable of germination. "Cannabis" does not
5include industrial hemp as defined and authorized under the
6Industrial Hemp Act. "Cannabis" also means cannabis flower,
7concentrate, and cannabis-infused products.
8    "Cannabis business establishment" means a cultivation
9center, craft grower, processing organization, infuser
10organization, dispensing organization, or transporting
11organization.
12    "Cannabis concentrate" means a product derived from
13cannabis that is produced by extracting cannabinoids,
14including tetrahydrocannabinol (THC), from the plant through
15the use of propylene glycol, glycerin, butter, olive oil or
16other typical cooking fats; water, ice, or dry ice; or butane,
17propane, CO2, ethanol, or isopropanol and with the intended use
18of smoking or making a cannabis-infused product. The use of any
19other solvent is expressly prohibited unless and until it is
20approved by the Department of Agriculture.
21    "Cannabis container" means a sealed, traceable, container,
22or package used for the purpose of containment of cannabis or
23cannabis-infused product during transportation.
24    "Cannabis flower" means marijuana, hashish, and other
25substances that are identified as including any parts of the
26plant Cannabis sativa and including derivatives or subspecies,

 

 

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1such as indica, of all strains of cannabis; including raw kief,
2leaves, and buds, but not resin that has been extracted from
3any part of such plant; nor any compound, manufacture, salt,
4derivative, mixture, or preparation of such plant, its seeds,
5or resin.
6    "Cannabis-infused product" means a beverage, food, oil,
7ointment, tincture, topical formulation, or another product
8containing cannabis or cannabis concentrate that is not
9intended to be smoked.
10    "Cannabis paraphernalia" means equipment, products, or
11materials intended to be used for planting, propagating,
12cultivating, growing, harvesting, manufacturing, producing,
13processing, preparing, testing, analyzing, packaging,
14repackaging, storing, containing, concealing, ingesting, or
15otherwise introducing cannabis into the human body.
16    "Cannabis plant monitoring system" or "plant monitoring
17system" means a system that includes, but is not limited to,
18testing and data collection established and maintained by the
19cultivation center, craft grower, or processing organization
20and that is available to the Department of Revenue, the
21Department of Agriculture, the Department of Financial and
22Professional Regulation, and the Department of State Police for
23the purposes of documenting each cannabis plant and monitoring
24plant development throughout the life cycle of a cannabis plant
25cultivated for the intended use by a customer from seed
26planting to final packaging.

 

 

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

 

 

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1    "Conditional Adult Use Cultivation Center License" means a
2license awarded to top-scoring applicants for an Adult Use
3Cultivation Center License that reserves the right to an Adult
4Use Cultivation Center License if the applicant meets certain
5conditions as determined by the Department of Agriculture by
6rule, but does not entitle the recipient to begin growing,
7processing, or selling cannabis or cannabis-infused products.
8    "Craft grower" means a facility operated by an organization
9or business that is licensed by the Department of Agriculture
10to cultivate, dry, cure, and package cannabis and perform other
11necessary activities to make cannabis available for sale at a
12dispensing organization or use at a processing organization. A
13craft grower may contain up to 5,000 square feet of canopy
14space on its premises for plants in the flowering state. The
15Department of Agriculture may authorize an increase or decrease
16of flowering stage cultivation space in increments of 3,000
17square feet by rule based on market need, craft grower
18capacity, and the licensee's history of compliance or
19noncompliance, with a maximum space of 14,000 square feet for
20cultivating plants in the flowering stage, which must be
21cultivated in all stages of growth in an enclosed and secure
22area. A craft grower may share premises with a processing
23organization or a dispensing organization, or both, provided
24each licensee stores currency and cannabis or cannabis-infused
25products in a separate secured vault to which the other
26licensee does not have access or all licensees sharing a vault

 

 

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1share more than 50% of the same ownership.
2    "Craft grower agent" means a principal officer, board
3member, employee, or other agent of a craft grower who is 21
4years of age or older.
5    "Craft Grower Agent Identification Card" means a document
6issued by the Department of Agriculture that identifies a
7person as a craft grower agent.
8    "Cultivation center" means a facility operated by an
9organization or business that is licensed by the Department of
10Agriculture to cultivate, process, transport (unless otherwise
11limited by this Act), and perform other necessary activities to
12provide cannabis and cannabis-infused products to cannabis
13business establishments.
14    "Cultivation center agent" means a principal officer,
15board member, employee, or other agent of a cultivation center
16who is 21 years of age or older.
17    "Cultivation Center Agent Identification Card" means a
18document issued by the Department of Agriculture that
19identifies a person as a cultivation center agent.
20    "Currency" means currency and coin of the United States.
21    "Dispensary" means a facility operated by a dispensing
22organization at which activities licensed by this Act may
23occur.
24    "Dispensing organization" means a facility operated by an
25organization or business that is licensed by the Department of
26Financial and Professional Regulation to acquire cannabis from

 

 

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1a cultivation center, craft grower, processing organization,
2or another dispensary for the purpose of selling or dispensing
3cannabis, cannabis-infused products, cannabis seeds,
4paraphernalia, or related supplies under this Act to purchasers
5or to qualified registered medical cannabis patients and
6caregivers. As used in this Act, "dispensing dispensary
7organization" includes shall include a registered medical
8cannabis organization as defined in the Compassionate Use of
9Medical Cannabis Pilot Program Act or its successor Act that
10has obtained an Early Approval Adult Use Dispensing
11Organization License.
12    "Dispensing organization agent" means a principal officer,
13employee, or agent of a dispensing organization who is 21 years
14of age or older.
15    "Dispensing organization agent identification card" means
16a document issued by the Department of Financial and
17Professional Regulation that identifies a person as a
18dispensing organization agent.
19    "Disproportionately Impacted Area" means a census tract or
20comparable geographic area that satisfies the following
21criteria as determined by the Department of Commerce and
22Economic Opportunity, that:
23        (1) meets at least one of the following criteria:
24            (A) the area has a poverty rate of at least 20%
25        according to the latest federal decennial census; or
26            (B) 75% or more of the children in the area

 

 

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

 

 

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1means a license that permits a medical cannabis dispensing
2organization licensed under the Compassionate Use of Medical
3Cannabis Pilot Program Act as of the effective date of this Act
4to begin selling cannabis or cannabis-infused product to
5purchasers as permitted by this Act as of January 1, 2020.
6    "Early Approval Adult Use Dispensing Organization at a
7secondary site" means a license that permits a medical cannabis
8dispensing organization licensed under the Compassionate Use
9of Medical Cannabis Pilot Program Act as of the effective date
10of this Act to begin selling cannabis or cannabis-infused
11product to purchasers as permitted by this Act on January 1,
122020 at a different dispensary location from its existing
13registered medical dispensary location.
14    "Enclosed, locked facility" means a room, greenhouse,
15building, or other enclosed area equipped with locks or other
16security devices that permit access only by cannabis business
17establishment agents working for the licensed cannabis
18business establishment or acting pursuant to this Act to
19cultivate, process, store, or distribute cannabis.
20    "Enclosed, locked space" means a closet, room, greenhouse,
21building or other enclosed area equipped with locks or other
22security devices that permit access only by authorized
23individuals under this Act. "Enclosed, locked space" may
24include:
25        (1) a space within a residential building that (i) is
26    the primary residence of the individual cultivating 5 or

 

 

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

 

 

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

 

 

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1This type of agreement shall not mandate a particular method of
2election or certification of the bona fide labor organization.
3    "Limited access area" means a building, room, or other area
4under the control of a cannabis dispensing organization
5licensed under this Act and upon the licensed premises where
6cannabis sales occur with access limited to purchasers,
7dispensing organization owners and other dispensing
8organization agents, or service professionals conducting
9business with the dispensing organization, or, if sales to
10registered qualifying patients, caregivers, provisional
11patients, and Opioid Alternative Pilot Program participants
12licensed pursuant to the Compassionate Use of Medical Cannabis
13Program Act are also permitted at the dispensary, registered
14qualifying patients, caregivers, provisional patients, and
15Opioid Alternative Pilot Program participants.
16    "Member of an impacted family" means an individual who has
17a parent, legal guardian, child, spouse, or dependent, or was a
18dependent of an individual who, prior to the effective date of
19this Act, was arrested for, convicted of, or adjudicated
20delinquent for any offense that is eligible for expungement
21under this Act.
22    "Mother plant" means a cannabis plant that is cultivated or
23maintained for the purpose of generating clones, and that will
24not be used to produce plant material for sale to an infuser or
25dispensing organization.
26    "Ordinary public view" means within the sight line with

 

 

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1normal visual range of a person, unassisted by visual aids,
2from a public street or sidewalk adjacent to real property, or
3from within an adjacent property.
4    "Ownership and control" means ownership of at least 51% of
5the business, including corporate stock if a corporation, and
6control over the management and day-to-day operations of the
7business and an interest in the capital, assets, and profits
8and losses of the business proportionate to percentage of
9ownership.
10    "Person" means a natural individual, firm, partnership,
11association, joint stock company, joint venture, public or
12private corporation, limited liability company, or a receiver,
13executor, trustee, guardian, or other representative appointed
14by order of any court.
15    "Possession limit" means the amount of cannabis under
16Section 10-10 that may be possessed at any one time by a person
1721 years of age or older or who is a registered qualifying
18medical cannabis patient or caregiver under the Compassionate
19Use of Medical Cannabis Pilot Program Act.
20    "Principal officer" includes a cannabis business
21establishment applicant or licensed cannabis business
22establishment's board member, owner with more than 1% interest
23of the total cannabis business establishment or more than 5%
24interest of the total cannabis business establishment of a
25publicly traded company, president, vice president, secretary,
26treasurer, partner, officer, member, manager member, or person

 

 

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1with a profit sharing, financial interest, or revenue sharing
2arrangement. The definition includes a person with authority to
3control the cannabis business establishment, a person who
4assumes responsibility for the debts of the cannabis business
5establishment and who is further defined in this Act.
6    "Primary residence" means a dwelling where a person usually
7stays or stays more often than other locations. It may be
8determined by, without limitation, presence, tax filings;
9address on an Illinois driver's license, an Illinois
10Identification Card, or an Illinois Person with a Disability
11Identification Card; or voter registration. No person may have
12more than one primary residence.
13    "Processing organization" or "processor" means a facility
14operated by an organization or business that is licensed by the
15Department of Agriculture to either extract constituent
16chemicals or compounds to produce cannabis concentrate or
17incorporate cannabis or cannabis concentrate into a product
18formulation to produce a cannabis product.
19    "Processing organization agent" means a principal officer,
20board member, employee, or agent of a processing organization.
21    "Processing organization agent identification card" means
22a document issued by the Department of Agriculture that
23identifies a person as a processing organization agent.
24    "Purchaser" means a person 21 years of age or older who
25acquires cannabis for a valuable consideration. "Purchaser"
26does not include a cardholder under the Compassionate Use of

 

 

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1Medical Cannabis Pilot Program Act.
2    "Qualified Social Equity Applicant" means a Social Equity
3Applicant who has been awarded a conditional license under this
4Act to operate a cannabis business establishment.
5    "Resided" means an individual's primary residence was
6located within the relevant geographic area as established by 2
7of the following:
8        (1) a signed lease agreement that includes the
9    applicant's name;
10        (2) a property deed that includes the applicant's name;
11        (3) school records;
12        (4) a voter registration card;
13        (5) an Illinois driver's license, an Illinois
14    Identification Card, or an Illinois Person with a
15    Disability Identification Card;
16        (6) a paycheck stub;
17        (7) a utility bill;
18        (8) tax records; or
19        (9) (8) any other proof of residency or other
20    information necessary to establish residence as provided
21    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

 

 

SB1557 Enrolled- 129 -LRB101 08168 SMS 53234 b

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 or cannabis-infused product
8on behalf of a cannabis business establishment or a community
9college licensed under the Community College Cannabis
10Vocational Training Pilot Program.
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(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/5-5)
8    Sec. 5-5. Sharing of authority. Notwithstanding any
9provision of or law to the contrary, any authority granted to
10any State 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(Source: P.A. 101-27, eff. 6-25-19.)
 
16    (410 ILCS 705/5-15)
17    Sec. 5-15. Department of Financial and Professional
18Regulation. The Department of Financial and Professional
19Regulation shall enforce the provisions of this Act relating to
20the oversight and registration of dispensing organizations and
21agents, including the issuance of identification cards for
22dispensing organization agents. The Department of Financial
23and Professional Regulation may suspend or revoke the license
24of, or otherwise discipline dispensing organizations,

 

 

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1principal officers, agents-in-charge, and agents impose other
2penalties upon, dispensing organizations for violations of
3this Act and any rules adopted under this Act.
4(Source: P.A. 101-27, eff. 6-25-19.)
 
5    (410 ILCS 705/5-20)
6    Sec. 5-20. Background checks.
7    (a) Through the Department of State Police, the licensing
8or issuing Department shall conduct a criminal history record
9check of the prospective principal officers, board members, and
10agents of a cannabis business establishment applying for a
11license or identification card under this Act.
12    Each cannabis business establishment prospective principal
13officer, board member, or agent shall submit his or her
14fingerprints to the Department of State Police in the form and
15manner prescribed by the Department of State Police.
16    Unless otherwise provided in this Act, such Such
17fingerprints shall be transmitted through a live scan
18fingerprint vendor licensed by the Department of Financial and
19Professional Regulation. These fingerprints shall be checked
20against the fingerprint records now and hereafter filed in the
21Department of State Police and Federal Bureau of Investigation
22criminal history records databases. The Department of State
23Police shall charge a fee for conducting the criminal history
24record check, which shall be deposited into the State Police
25Services Fund and shall not exceed the actual cost of the State

 

 

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1and national criminal history record check. The Department of
2State Police shall furnish, pursuant to positive
3identification, all Illinois conviction information and shall
4forward the national criminal history record information to:
5        (i) the Department of Agriculture, with respect to a
6    cultivation center, craft grower, infuser organization, or
7    transporting organization; or
8        (ii) the Department of Financial and Professional
9    Regulation, with respect to a dispensing organization.
10    (b) When applying for the initial license or identification
11card, the background checks for all prospective principal
12officers, board members, and agents shall be completed before
13submitting the application to the licensing or issuing agency.
14    (c) All applications for licensure under this Act by
15applicants with criminal convictions shall be subject to
16Sections 2105-131, 2105-135, and 2105-205 of the Department of
17Professional Regulation Law of the Civil Administrative Code of
18Illinois.
19(Source: P.A. 101-27, eff. 6-25-19.)
 
20    (410 ILCS 705/5-25)
21    Sec. 5-25. Department of Public Health to make health
22warning recommendations.
23    (a) The Department of Public Health shall make
24recommendations to the Department of Agriculture and the
25Department of Financial and Professional Regulation on

 

 

SB1557 Enrolled- 134 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 135 -LRB101 08168 SMS 53234 b

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

 

 

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1    Impacted Areas.
2        (23) A representative of licensed cannabis business
3    establishments.
4        (24) A Social Equity Applicant.
5        (25) A representative of a statewide community-based
6    substance use disorder treatment provider association.
7        (26) A representative of a statewide community-based
8    mental health treatment provider association.
9        (27) A representative of a community-based substance
10    use disorder treatment provider.
11        (28) A representative of a community-based mental
12    health treatment provider.
13        (29) A substance use disorder treatment patient
14    representative.
15        (30) A mental health treatment patient representative.
16    (c) The Committee shall provide a report by September 30,
172021, and every year thereafter, to the General Assembly. The
18Department of Public Health shall make the report available on
19its website.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/7-1)
22    Sec. 7-1. Findings.
23    (a) The General Assembly finds that the medical cannabis
24industry, established in 2014 through the Compassionate Use of
25Medical 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(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/7-10)
25    Sec. 7-10. Cannabis Business Development Fund.

 

 

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

 

 

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1    establishments;
2        (7) (blank); and
3        (8) to assist with job training and technical
4    assistance for residents in Disproportionately Impacted
5    Areas.
6    (b) All moneys collected under Sections 15-15 and 15-20 for
7Early Approval Adult Use Dispensing Organization Licenses
8issued before January 1, 2021 and remunerations made as a
9result of transfers of permits awarded to Qualified Social
10Equity Applicants shall be deposited into the Cannabis Business
11Development Fund.
12    (c) As soon as practical after July 1, 2019, the
13Comptroller shall order and the Treasurer shall transfer
14$12,000,000 from the Compassionate Use of Medical Cannabis Fund
15to the Cannabis Business Development Fund.
16    (d) Notwithstanding any other law to the contrary, the
17Cannabis Business Development Fund is not subject to sweeps,
18administrative charge-backs, or any other fiscal or budgetary
19maneuver that would in any way transfer any amounts from the
20Cannabis Business Development Fund into any other fund of the
21State.
22(Source: P.A. 101-27, eff. 6-25-19.)
 
23    (410 ILCS 705/7-15)
24    Sec. 7-15. Loans and grants to Social Equity Applicants.
25    (a) The Department of Commerce and Economic Opportunity

 

 

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1shall establish grant and loan programs, subject to
2appropriations from the Cannabis Business Development Fund,
3for the purposes of providing financial assistance, loans,
4grants, and technical assistance to Social Equity Applicants.
5    (b) The Department of Commerce and Economic Opportunity has
6the power to:
7        (1) provide Cannabis Social Equity loans and grants
8    from appropriations from the Cannabis Business Development
9    Fund to assist Qualified Social Equity Applicants in
10    gaining entry to, and successfully operating in, the
11    State's regulated cannabis marketplace;
12        (2) enter into agreements that set forth terms and
13    conditions of the financial assistance, accept funds or
14    grants, and engage in cooperation with private entities and
15    agencies of State or local government to carry out the
16    purposes of this Section;
17        (3) fix, determine, charge, and collect any premiums,
18    fees, charges, costs and expenses, including application
19    fees, commitment fees, program fees, financing charges, or
20    publication fees in connection with its activities under
21    this Section;
22        (4) coordinate assistance under these loan programs
23    with activities of the Illinois Department of Financial and
24    Professional Regulation, the Illinois Department of
25    Agriculture, and other agencies as needed to maximize the
26    effectiveness and efficiency of this Act;

 

 

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1        (5) provide staff, administration, and related support
2    required to administer this Section;
3        (6) take whatever actions are necessary or appropriate
4    to protect the State's interest in the event of bankruptcy,
5    default, foreclosure, or noncompliance with the terms and
6    conditions of financial assistance provided under this
7    Section, including the ability to recapture funds if the
8    recipient is found to be noncompliant with the terms and
9    conditions of the financial assistance agreement;
10        (7) establish application, notification, contract, and
11    other forms, procedures, or rules deemed necessary and
12    appropriate; and
13        (8) utilize vendors or contract work to carry out the
14    purposes of this Act.
15    (c) Loans made under this Section:
16        (1) shall only be made if, in the Department's
17    judgment, the project furthers the goals set forth in this
18    Act; and
19        (2) shall be in such principal amount and form and
20    contain such terms and provisions with respect to security,
21    insurance, reporting, delinquency charges, default
22    remedies, and other matters as the Department shall
23    determine appropriate to protect the public interest and to
24    be consistent with the purposes of this Section. The terms
25    and provisions may be less than required for similar loans
26    not covered by this Section.

 

 

SB1557 Enrolled- 143 -LRB101 08168 SMS 53234 b

1    (d) Grants made under this Section shall be awarded on a
2competitive and annual basis under the Grant Accountability and
3Transparency Act. Grants made under this Section shall further
4and promote the goals of this Act, including promotion of
5Social Equity Applicants, job training and workforce
6development, and technical assistance to Social Equity
7Applicants.
8    (e) Beginning January 1, 2021 and each year thereafter, the
9Department shall annually report to the Governor and the
10General Assembly on the outcomes and effectiveness of this
11Section that shall include the following:
12        (1) the number of persons or businesses receiving
13    financial assistance under this Section;
14        (2) the amount in financial assistance awarded in the
15    aggregate, in addition to the amount of loans made that are
16    outstanding and the amount of grants awarded;
17        (3) the location of the project engaged in by the
18    person or business; and
19        (4) if applicable, the number of new jobs and other
20    forms of economic output created as a result of the
21    financial assistance.
22    (f) The Department of Commerce and Economic Opportunity
23shall include engagement with individuals with limited English
24proficiency as part of its outreach provided or targeted to
25attract and support Social Equity Applicants.
26(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

SB1557 Enrolled- 144 -LRB101 08168 SMS 53234 b

1    (410 ILCS 705/7-25)
2    Sec. 7-25. Transfer of license awarded to Qualified Social
3Equity Applicant.
4    (a) In the event a Qualified Social Equity Applicant seeks
5to transfer, sell, or grant a cannabis business establishment
6license within 5 years after it was issued to a person or
7entity that does not qualify as a Social Equity Applicant, the
8transfer agreement shall require the new license holder to pay
9the Cannabis Business Development Fund an amount equal to:
10        (1) any fees that were waived by any State agency based
11    on the applicant's status as a Social Equity Applicant, if
12    applicable;
13        (2) any outstanding amount owed by the Qualified Social
14    Equity Applicant for a loan through the Cannabis Business
15    Development Fund, if applicable; and
16        (3) the full amount of any grants that the Qualified
17    Social Equity Applicant received from the Department of
18    Commerce and Economic Opportunity, if applicable.
19    (b) Transfers of cannabis business establishment licenses
20awarded to a Social Equity Applicant are subject to all other
21provisions of this Act, the Compassionate Use of Medical
22Cannabis Pilot Program Act, and rules regarding transfers.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/10-5)

 

 

SB1557 Enrolled- 145 -LRB101 08168 SMS 53234 b

1    Sec. 10-5. Personal use of cannabis; restrictions on
2cultivation; penalties.
3    (a) Beginning January 1, 2020, notwithstanding any other
4provision of law, and except as otherwise provided in this Act,
5the following acts are not a violation of this Act and shall
6not be a criminal or civil offense under State law or the
7ordinances of any unit of local government of this State or be
8a basis for seizure or forfeiture of assets under State law for
9persons other than natural individuals under 21 years of age:
10        (1) possession, consumption, use, purchase, obtaining,
11    or transporting cannabis paraphernalia or an amount of
12    cannabis for personal use that does not exceed the
13    possession limit under Section 10-10 or otherwise in
14    accordance with the requirements of this Act;
15        (2) cultivation of cannabis for personal use in
16    accordance with the requirements of this Act; and
17        (3) controlling property if actions that are
18    authorized by this Act occur on the property in accordance
19    with this Act.
20    (a-1) Beginning January 1, 2020, notwithstanding any other
21provision of law, and except as otherwise provided in this Act,
22possessing, consuming, using, purchasing, obtaining, or
23transporting cannabis paraphernalia or an amount of cannabis
24purchased or produced in accordance with this Act that does not
25exceed the possession limit under subsection (a) of Section
2610-10 shall not be a basis for seizure or forfeiture of assets

 

 

SB1557 Enrolled- 146 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 147 -LRB101 08168 SMS 53234 b

1    the consent of the person in lawful possession of the
2    property. An owner or lessor of residential property may
3    prohibit the cultivation of cannabis by a lessee.
4        (6) (Blank).
5        (7) A dwelling, residence, apartment, condominium
6    unit, enclosed, locked space, or piece of property not
7    divided into multiple dwelling units shall not contain more
8    than 5 plants at any one time.
9        (8) Cannabis plants may only be tended by registered
10    qualifying patients who reside at the residence, or their
11    authorized agent attending to the residence for brief
12    periods, such as when the qualifying patient is temporarily
13    away from the residence.
14        (9) A registered qualifying patient who cultivates
15    more than the allowable number of cannabis plants, or who
16    sells or gives away cannabis plants, cannabis, or
17    cannabis-infused products produced under this Section, is
18    liable for penalties as provided by law, including the
19    Cannabis Control Act, in addition to loss of home
20    cultivation privileges as established by rule.
21(Source: P.A. 101-27, eff. 6-25-19.)
 
22    (410 ILCS 705/10-10)
23    Sec. 10-10. Possession limit.
24    (a) Except if otherwise authorized by this Act, for a
25person who is 21 years of age or older and a resident of this

 

 

SB1557 Enrolled- 148 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 149 -LRB101 08168 SMS 53234 b

1under the Industrial Hemp Act are not covered by this Act.
2(Source: P.A. 101-27, eff. 6-25-19.)
 
3    (410 ILCS 705/10-15)
4    Sec. 10-15. Persons under 21 years of age.
5    (a) Nothing in this Act is intended to permit the transfer
6of cannabis, with or without remuneration, to a person under 21
7years of age, or to allow a person under 21 years of age to
8purchase, possess, use, process, transport, grow, or consume
9cannabis except where authorized by the Compassionate Use of
10Medical Cannabis Pilot Program Act or by the Community College
11Cannabis Vocational Pilot Program.
12    (b) Notwithstanding any other provisions of law
13authorizing the possession of medical cannabis, nothing in this
14Act authorizes a person who is under 21 years of age to possess
15cannabis. A person under 21 years of age with cannabis in his
16or her possession is guilty of a civil law violation as
17outlined in paragraph (a) of Section 4 of the Cannabis Control
18Act.
19    (c) If the person under the age of 21 was in a motor
20vehicle at the time of the offense, the Secretary of State may
21suspend or revoke the driving privileges of any person for a
22violation of this Section under Section 6-206 of the Illinois
23Vehicle Code and the rules adopted under it.
24    (d) It is unlawful for any parent or guardian to knowingly
25permit his or her residence, any other private property under

 

 

SB1557 Enrolled- 150 -LRB101 08168 SMS 53234 b

1his or her control, or any vehicle, conveyance, or watercraft
2under his or her control to be used by an invitee of the
3parent's child or the guardian's ward, if the invitee is under
4the age of 21, in a manner that constitutes a violation of this
5Section. A parent or guardian is deemed to have knowingly
6permitted his or her residence, any other private property
7under his or her control, or any vehicle, conveyance, or
8watercraft under his or her control to be used in violation of
9this Section if he or she knowingly authorizes or permits
10consumption of cannabis by underage invitees. Any person who
11violates this subsection (d) is guilty of a Class A misdemeanor
12and the person's sentence shall include, but shall not be
13limited to, a fine of not less than $500. If a violation of
14this subsection (d) directly or indirectly results in great
15bodily harm or death to any person, the person violating this
16subsection is guilty of a Class 4 felony. In this subsection
17(d), where the residence or other property has an owner and a
18tenant or lessee, the trier of fact may infer that the
19residence or other property is occupied only by the tenant or
20lessee.
21(Source: P.A. 101-27, eff. 6-25-19.)
 
22    (410 ILCS 705/10-25)
23    Sec. 10-25. Immunities and presumptions related to the use
24of cannabis by purchasers.
25    (a) A purchaser who is 21 years of age or older is not

 

 

SB1557 Enrolled- 151 -LRB101 08168 SMS 53234 b

1subject to arrest, prosecution, denial of any right or
2privilege, or other punishment including, but not limited to,
3any civil penalty or disciplinary action taken by an
4occupational or professional licensing board, based solely on
5the use of cannabis if (1) the purchaser possesses an amount of
6cannabis that does not exceed the possession limit under
7Section 10-10 and, if the purchaser is licensed, certified, or
8registered to practice any trade or profession under any Act
9and (2) the use of cannabis does not impair that person when he
10or she is engaged in the practice of the profession for which
11he or she is licensed, certified, or registered.
12    (b) A purchaser 21 years of age or older is not subject to
13arrest, prosecution, denial of any right or privilege, or other
14punishment, including, but not limited to, any civil penalty or
15disciplinary action taken by an occupational or professional
16licensing board, based solely for (i) selling cannabis
17paraphernalia if employed and licensed as a dispensing agent by
18a dispensing organization; or (ii) being in the presence or
19vicinity of the use of cannabis or cannabis paraphernalia as
20allowed under this Act; or (iii) possessing cannabis
21paraphernalia.
22    (c) Mere possession of, or application for, an agent
23identification card or license does not constitute probable
24cause or reasonable suspicion to believe that a crime has been
25committed, nor shall it be used as the sole basis to support
26the search of the person, property, or home of the person

 

 

SB1557 Enrolled- 152 -LRB101 08168 SMS 53234 b

1possessing or applying for the agent identification card. The
2possession of, or application for, an agent identification card
3does not preclude the existence of probable cause if probable
4cause exists based on other grounds.
5    (d) No person employed by the State of Illinois shall be
6subject to criminal or civil penalties for taking any action in
7good faith in reliance on this Act when acting within the scope
8of his or her employment. Representation and indemnification
9shall be provided to State employees as set forth in Section 2
10of the State Employee Indemnification Act.
11    (e) No law enforcement or correctional agency, nor any
12person employed by a law enforcement or correctional agency,
13shall be subject to criminal or civil liability, except for
14willful and wanton misconduct, as a result of taking any action
15within the scope of the official duties of the agency or person
16to prohibit or prevent the possession or use of cannabis by a
17person incarcerated at a correctional facility, jail, or
18municipal lockup facility, on parole or mandatory supervised
19release, or otherwise under the lawful jurisdiction of the
20agency or person.
21    (f) For purposes of receiving medical care, including organ
22transplants, a person's use of cannabis under this Act does not
23constitute the use of an illicit substance or otherwise
24disqualify a person from medical care.
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

SB1557 Enrolled- 153 -LRB101 08168 SMS 53234 b

1    (410 ILCS 705/10-30)
2    Sec. 10-30. Discrimination prohibited.
3    (a) Neither the presence of cannabinoid components or
4metabolites in a person's bodily fluids nor possession of
5cannabis-related paraphernalia, nor conduct related to the use
6of cannabis or the participation in cannabis-related
7activities lawful under this Act by a custodial or noncustodial
8parent, grandparent, legal guardian, foster parent, or other
9person charged with the well-being of a child, shall form the
10sole or primary basis or supporting basis for any action or
11proceeding by a child welfare agency or in a family or juvenile
12court, any adverse finding, adverse evidence, or restriction of
13any right or privilege in a proceeding related to adoption of a
14child, acting as a foster parent of a child, or a person's
15fitness to adopt a child or act as a foster parent of a child,
16or serve as the basis of any adverse finding, adverse evidence,
17or restriction of any right of privilege in a proceeding
18related to guardianship, conservatorship, trusteeship, the
19execution of a will, or the management of an estate, unless the
20person's actions in relation to cannabis created an
21unreasonable danger to the safety of the minor or otherwise
22show the person to not be competent as established by clear and
23convincing evidence. This subsection applies only to conduct
24protected under this Act.
25    (b) No landlord may be penalized or denied any benefit
26under State law for leasing to a person who uses cannabis under

 

 

SB1557 Enrolled- 154 -LRB101 08168 SMS 53234 b

1this Act.
2    (c) Nothing in this Act may be construed to require any
3person or establishment in lawful possession of property to
4allow a guest, client, lessee, customer, or visitor to use
5cannabis on or in that property, including on any land owned in
6whole or in part or managed in whole or in part by the State.
7(Source: P.A. 101-27, eff. 6-25-19.)
 
8    (410 ILCS 705/10-35)
9    Sec. 10-35. Limitations and penalties.
10    (a) This Act does not permit any person to engage in, and
11does not prevent the imposition of any civil, criminal, or
12other penalties for engaging in, any of the following conduct:
13        (1) undertaking any task under the influence of
14    cannabis when doing so would constitute negligence,
15    professional malpractice, or professional misconduct;
16        (2) possessing cannabis:
17            (A) in a school bus, unless permitted for a
18        qualifying patient or caregiver pursuant to the
19        Compassionate Use of Medical Cannabis Pilot Program
20        Act;
21            (B) on the grounds of any preschool or primary or
22        secondary school, unless permitted for a qualifying
23        patient or caregiver pursuant to the Compassionate Use
24        of Medical Cannabis Pilot Program Act;
25            (C) in any correctional facility;

 

 

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

 

 

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1        (4) smoking cannabis in any place where smoking is
2    prohibited under the Smoke Free Illinois Act;
3        (5) operating, navigating, or being in actual physical
4    control of any motor vehicle, aircraft, watercraft, or
5    snowmobile while using or under the influence of cannabis
6    in violation of Section 11-501 or 11-502.1 of the Illinois
7    Vehicle Code, Section 5-16 of the Boat Registration and
8    Safety Act, or Section 5-7 of the Snowmobile Registration
9    and Safety Act or motorboat while using or under the
10    influence of cannabis in violation of Section 11-501 or
11    11-502.1 of the Illinois Vehicle Code;
12        (6) facilitating the use of cannabis by any person who
13    is not allowed to use cannabis under this Act or the
14    Compassionate Use of Medical Cannabis Pilot Program Act;
15        (7) transferring cannabis to any person contrary to
16    this Act or the Compassionate Use of Medical Cannabis Pilot
17    Program Act;
18        (8) the use of cannabis by a law enforcement officer,
19    corrections officer, probation officer, or firefighter
20    while on duty; nothing in this Act prevents a public
21    employer of law enforcement officers, corrections
22    officers, probation officers, paramedics, or firefighters
23    from prohibiting or taking disciplinary action for the
24    consumption, possession, sales, purchase, or delivery of
25    cannabis or cannabis-infused substances while on or off
26    duty, unless provided for in the employer's policies.

 

 

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1    However, an employer may not take adverse employment action
2    against an employee based solely on the lawful possession
3    or consumption of cannabis or cannabis-infused substances
4    by members of the employee's household. To the extent that
5    this Section conflicts with any applicable collective
6    bargaining agreement, the provisions of the collective
7    bargaining agreement shall prevail. Further, nothing in
8    this Act shall be construed to limit in any way the right
9    to collectively bargain over the subject matters contained
10    in this Act; or
11        (9) the use of cannabis by a person who has a school
12    bus permit or a Commercial Driver's License while on duty.
13    As used in this Section, "public place" means any place
14where a person could reasonably be expected to be observed by
15others. "Public place" includes all parts of buildings owned in
16whole or in part, or leased, by the State or a unit of local
17government. "Public place" includes all areas in a park,
18recreation area, wildlife area, or playground owned in whole or
19in part, leased, or managed by the State or a unit of local
20government. "Public place" does not include a private residence
21unless the private residence is used to provide licensed child
22care, foster care, or other similar social service care on the
23premises.
24    (b) Nothing in this Act shall be construed to prevent the
25arrest or prosecution of a person for reckless driving or
26driving under the influence of cannabis, operating a watercraft

 

 

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1under the influence of cannabis, or operating a snowmobile
2under the influence of cannabis if probable cause exists.
3    (c) Nothing in this Act shall prevent a private business
4from restricting or prohibiting the use of cannabis on its
5property, including areas where motor vehicles are parked.
6    (d) Nothing in this Act shall require an individual or
7business entity to violate the provisions of federal law,
8including colleges or universities that must abide by the
9Drug-Free Schools and Communities Act Amendments of 1989, that
10require campuses to be drug free.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/10-40)
13    Sec. 10-40. Restore, Reinvest, and Renew Program.
14    (a) The General Assembly finds that in order to address the
15disparities described below, aggressive approaches and
16targeted resources to support local design and control of
17community-based responses to these outcomes are required. To
18carry out this intent, the Restore, Reinvest, and Renew (R3)
19Program is created for the following purposes:
20        (1) to directly address the impact of economic
21    disinvestment, violence, and the historical overuse of
22    criminal justice responses to community and individual
23    needs by providing resources to support local design and
24    control of community-based responses to these impacts;
25        (2) to substantially reduce both the total amount of

 

 

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1    gun violence and concentrated poverty in this State;
2        (3) to protect communities from gun violence through
3    targeted investments and intervention programs, including
4    economic growth and improving family violence prevention,
5    community trauma treatment rates, gun injury victim
6    services, and public health prevention activities;
7        (4) to promote employment infrastructure and capacity
8    building related to the social determinants of health in
9    the eligible community areas.
10    (b) In this Section, "Authority" means the Illinois
11Criminal Justice Information Authority in coordination with
12the Justice, Equity, and Opportunity Initiative of the
13Lieutenant Governor's Office.
14    (c) Eligibility of R3 Areas. Within 180 days after the
15effective date of this Act, the Authority shall identify as
16eligible, areas in this State by way of historically recognized
17geographic boundaries, to be designated by the Restore,
18Reinvest, and Renew Program Board as R3 Areas and therefore
19eligible to apply for R3 funding. Local groups within R3 Areas
20will be eligible to apply for State funding through the
21Restore, Reinvest, and Renew Program Board. Qualifications for
22designation as an R3 Area are as follows:
23        (1) Based on an analysis of data, communities in this
24    State that are high need, underserved, disproportionately
25    impacted by historical economic disinvestment, and ravaged
26    by violence as indicated by the highest rates of gun

 

 

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1    injury, unemployment, child poverty rates, and commitments
2    to and returns from the Illinois Department of Corrections.
3        (2) The Authority shall send to the Legislative Audit
4    Commission and make publicly available its analysis and
5    identification of eligible R3 Areas and shall recalculate
6    the he eligibility data every 4 years. On an annual basis,
7    the Authority shall analyze data and indicate if data
8    covering any R3 Area or portion of an Area has, for 4
9    consecutive years, substantially deviated from the average
10    of statewide data on which the original calculation was
11    made to determine the Areas, including disinvestment,
12    violence, gun injury, unemployment, child poverty rates,
13    or commitments to or returns from the Illinois Department
14    of Corrections.
15    (d) The Restore, Reinvest, and Renew Program Board shall
16encourage collaborative partnerships within each R3 Area to
17minimize multiple partnerships per Area.
18    (e) The Restore, Reinvest, and Renew Program Board is
19created and shall reflect the diversity of the State of
20Illinois, including geographic, racial, and ethnic diversity.
21Using the data provided by the Authority, the Restore,
22Reinvest, and Renew Program Board shall be responsible for
23designating the R3 Area boundaries and for the selection and
24oversight of R3 Area grantees. The Restore, Reinvest, and Renew
25Program Board ex officio members shall, within 4 months after
26the effective date of this Act, convene the Board to appoint a

 

 

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1full Restore, Reinvest, and Renew Program Board and oversee,
2provide guidance to, and develop an administrative structure
3for the R3 Program.
4            (1) The ex officio members are:
5                (A) The Lieutenant Governor, or his or her
6            designee, who shall serve as chair.
7                (B) The Attorney General, or his or her
8            designee.
9                (C) The Director of Commerce and Economic
10            Opportunity, or his or her designee.
11                (D) The Director of Public Health, or his or
12            her designee.
13                (E) The Director of Corrections, or his or her
14            designee.
15                (F) The Director of Juvenile Justice, or his or
16            her designee.
17                (G) The Director of Children and Family
18            Services, or his or her designee.
19                (H) (F) The Executive Director of the Illinois
20            Criminal Justice Information Authority, or his or
21            her designee.
22                (I) (G) The Director of Employment Security,
23            or his or her designee.
24                (J) (H) The Secretary of Human Services, or his
25            or her designee.
26                (K) (I) A member of the Senate, designated by

 

 

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1            the President of the Senate.
2                (L) (J) A member of the House of
3            Representatives, designated by the Speaker of the
4            House of Representatives.
5                (M) (K) A member of the Senate, designated by
6            the Minority Leader of the Senate.
7                (N) (L) A member of the House of
8            Representatives, designated by the Minority Leader
9            of the House of Representatives.
10        (2) Within 90 days after the R3 Areas have been
11    designated by the Restore, Reinvest, and Renew Program
12    Board, the following members shall be appointed to the
13    Board by the R3 board chair:
14            (A) Eight public officials of municipal geographic
15        jurisdictions in the State that include an R3 Area, or
16        their designees;
17            (B) Four 4 community-based providers or community
18        development organization representatives who provide
19        services to treat violence and address the social
20        determinants of health, or promote community
21        investment, including, but not limited to, services
22        such as job placement and training, educational
23        services, workforce development programming, and
24        wealth building. The community-based organization
25        representatives shall work primarily in jurisdictions
26        that include an R3 Area and no more than 2

 

 

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1        representatives shall work primarily in Cook County.
2        At least one of the community-based providers shall
3        have expertise in providing services to an immigrant
4        population;
5            (C) Two experts in the field of violence reduction;
6            (D) One male who has previously been incarcerated
7        and is over the age of 24 at the time of appointment;
8            (E) One female who has previously been
9        incarcerated and is over the age of 24 at the time of
10        appointment;
11            (F) Two individuals who have previously been
12        incarcerated and are between the ages of 17 and 24 at
13        the time of appointment.
14        As used in this paragraph (2), "an individual who has
15    been previously incarcerated" means a person who has been
16    convicted of or pled guilty to one or more felonies, who
17    was sentenced to a term of imprisonment, and who has
18    completed his or her sentence. Board members shall serve
19    without compensation and may be reimbursed for reasonable
20    expenses incurred in the performance of their duties from
21    funds appropriated for that purpose. Once all its members
22    have been appointed as outlined in items (A) through (F) of
23    this paragraph (2), the Board may exercise any power,
24    perform any function, take any action, or do anything in
25    furtherance of its purposes and goals upon the appointment
26    of a quorum of its members. The Board terms of the non-ex

 

 

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1    officio and General Assembly Board members shall end 4
2    years from the date of appointment.
3    (f) Within 12 months after the effective date of this Act,
4the Board shall:
5        (1) develop a process to solicit applications from
6    eligible R3 Areas;
7        (2) develop a standard template for both planning and
8    implementation activities to be submitted by R3 Areas to
9    the State;
10        (3) identify resources sufficient to support the full
11    administration and evaluation of the R3 Program, including
12    building and sustaining core program capacity at the
13    community and State levels;
14        (4) review R3 Area grant applications and proposed
15    agreements and approve the distribution of resources;
16        (5) develop a performance measurement system that
17    focuses on positive outcomes;
18        (6) develop a process to support ongoing monitoring and
19    evaluation of R3 programs; and
20        (7) deliver an annual report to the General Assembly
21    and to the Governor to be posted on the Governor's Office
22    and General Assembly websites and provide to the public an
23    annual report on its progress.
24    (g) R3 Area grants.
25        (1) Grant funds shall be awarded by the Illinois
26    Criminal Justice Information Authority, in coordination

 

 

SB1557 Enrolled- 165 -LRB101 08168 SMS 53234 b

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

 

 

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1        Program Board.
2(Source: P.A. 101-27, eff. 6-25-19.)
 
3    (410 ILCS 705/10-50)
4    Sec. 10-50. Employment; employer liability.
5    (a) Nothing in this Act shall prohibit an employer from
6adopting reasonable zero tolerance or drug free workplace
7policies, or employment policies concerning drug testing,
8smoking, consumption, storage, or use of cannabis in the
9workplace or while on call provided that the policy is applied
10in a nondiscriminatory manner.
11    (b) Nothing in this Act shall require an employer to permit
12an employee to be under the influence of or use cannabis in the
13employer's workplace or while performing the employee's job
14duties or while on call.
15    (c) Nothing in this Act shall limit or prevent an employer
16from disciplining an employee or terminating employment of an
17employee for violating an employer's employment policies or
18workplace drug policy.
19    (d) An employer may consider an employee to be impaired or
20under the influence of cannabis if the employer has a good
21faith belief that an employee manifests specific, articulable
22symptoms while working that decrease or lessen the employee's
23performance of the duties or tasks of the employee's job
24position, including symptoms of the employee's speech,
25physical dexterity, agility, coordination, demeanor,

 

 

SB1557 Enrolled- 167 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 168 -LRB101 08168 SMS 53234 b

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

 

 

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1duties, and vehicles, whether leased, rented, or owned.
2"Workplace" may be further defined by the employer's written
3employment policy, provided that the policy is consistent with
4this Section.
5    (i) For purposes of this Section, an employee is deemed "on
6call" when such employee is scheduled with at least 24 hours'
7notice by his or her employer to be on standby or otherwise
8responsible for performing tasks related to his or her
9employment either at the employer's premises or other
10previously designated location by his or her employer or
11supervisor to perform a work-related task.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/15-15)
14    Sec. 15-15. Early Approval Adult Use Dispensing
15Organization License.
16    (a) 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 serve purchasers at any medical
22cannabis dispensing location in operation on the effective date
23of this Act, pursuant to this Section.
24    (b) A medical cannabis dispensing organization seeking
25issuance of an Early Approval Adult Use Dispensing Organization

 

 

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1License to serve purchasers at any medical cannabis dispensing
2location in operation as of the effective date of this Act
3shall submit an application on forms provided by the
4Department. The application must be submitted by the same
5person or entity that holds the medical cannabis dispensing
6organization registration and include the following:
7        (1) Payment of a nonrefundable fee of $30,000 to be
8    deposited into the Cannabis Regulation Fund;
9        (2) Proof of registration as a medical cannabis
10    dispensing organization that is in good standing;
11        (3) Certification that the applicant will comply with
12    the requirements contained in the Compassionate Use of
13    Medical Cannabis Pilot Program Act except as provided in
14    this Act;
15        (4) The legal name of the dispensing organization;
16        (5) The physical address of the dispensing
17    organization;
18        (6) The name, address, social security number, and date
19    of birth of each principal officer and board member of the
20    dispensing organization, each of whom must be at least 21
21    years of age;
22        (7) A nonrefundable Cannabis Business Development Fee
23    equal to 3% of the dispensing organization's total sales
24    between June 1, 2018 to June 1, 2019, or $100,000,
25    whichever is less, to be deposited into the Cannabis
26    Business Development Fund; and

 

 

SB1557 Enrolled- 171 -LRB101 08168 SMS 53234 b

1        (8) Identification of one of the following Social
2    Equity Inclusion Plans to be completed by March 31, 2021:
3            (A) Make a contribution of 3% of total sales from
4        June 1, 2018 to June 1, 2019, or $100,000, whichever is
5        less, to the Cannabis Business Development Fund. This
6        is in addition to the fee required by item (7) of this
7        subsection (b);
8            (B) Make a grant of 3% of total sales from June 1,
9        2018 to June 1, 2019, or $100,000, whichever is less,
10        to a cannabis industry training or education program at
11        an Illinois community college as defined in the Public
12        Community College Act;
13            (C) Make a donation of $100,000 or more to a
14        program that provides job training services to persons
15        recently incarcerated or that operates in a
16        Disproportionately Impacted Area;
17            (D) Participate as a host in a cannabis business
18        establishment incubator program approved by the
19        Department of Commerce and Economic Opportunity, and
20        in which an Early Approval Adult Use Dispensing
21        Organization License holder agrees to provide a loan of
22        at least $100,000 and mentorship to incubate, for at
23        least a year, a Social Equity Applicant intending to
24        seek a license or a licensee that qualifies as a Social
25        Equity Applicant for at least a year. As used in this
26        Section, "incubate" means providing direct financial

 

 

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

 

 

SB1557 Enrolled- 173 -LRB101 08168 SMS 53234 b

1dispensing organization license.
2    (d) Applicants must submit all required information,
3including the requirements in subsection (b) of this Section,
4to the Department. Failure by an applicant to submit all
5required information may result in the application being
6disqualified.
7    (e) If the Department receives an application that fails to
8provide the required elements contained in subsection (b), the
9Department shall issue a deficiency notice to the applicant.
10The applicant shall have 10 calendar days from the date of the
11deficiency notice to submit complete information. Applications
12that are still incomplete after this opportunity to cure may be
13disqualified.
14    (f) If an applicant meets all the requirements of
15subsection (b) of this Section, the Department shall issue the
16Early Approval Adult Use Dispensing Organization License
17within 14 days of receiving a completed application unless:
18        (1) The licensee or a principal officer is delinquent
19    in filing any required tax returns or paying any amounts
20    owed to the State of Illinois;
21        (2) The Secretary of Financial and Professional
22    Regulation determines there is reason, based on documented
23    compliance violations, the licensee is not entitled to an
24    Early Approval Adult Use Dispensing Organization License;
25    or
26        (3) Any principal officer fails to register and remain

 

 

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1    in compliance with this Act or the Compassionate Use of
2    Medical Cannabis Pilot Program Act.
3    (g) A registered medical cannabis dispensing organization
4that obtains an Early Approval Adult Use Dispensing
5Organization License may begin selling cannabis,
6cannabis-infused products, paraphernalia, and related items to
7purchasers under the rules of this Act no sooner than January
81, 2020.
9    (h) A dispensing organization holding a medical cannabis
10dispensing organization license issued under the Compassionate
11Use of Medical Cannabis Pilot Program Act must maintain an
12adequate supply of cannabis and cannabis-infused products for
13purchase by qualifying patients, caregivers, provisional
14patients, and Opioid Alternative Pilot Program participants.
15For the purposes of this subsection, "adequate supply" means a
16monthly inventory level that is comparable in type and quantity
17to those medical cannabis products provided to patients and
18caregivers on an average monthly basis for the 6 months before
19the effective date of this Act.
20    (i) If there is a shortage of cannabis or cannabis-infused
21products, a dispensing organization holding both a dispensing
22organization license under the Compassionate Use of Medical
23Cannabis Pilot Program Act and this Act shall prioritize
24serving qualifying patients, caregivers, provisional patients,
25and Opioid Alternative Pilot Program participants before
26serving purchasers.

 

 

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1    (j) Notwithstanding any law or rule to the contrary, a
2person that holds a medical cannabis dispensing organization
3license issued under the Compassionate Use of Medical Cannabis
4Pilot Program Act and an Early Approval Adult Use Dispensing
5Organization License may permit purchasers into a limited
6access area as that term is defined in administrative rules
7made under the authority in the Compassionate Use of Medical
8Cannabis Pilot Program Act.
9    (k) An Early Approval Adult Use Dispensing Organization
10License is valid until March 31, 2021. A dispensing
11organization that obtains an Early Approval Adult Use
12Dispensing Organization License shall receive written or
13electronic notice 90 days before the expiration of the license
14that the license will expire, and that informs inform the
15license holder that it may apply to renew its Early Approval
16Adult Use Dispensing Organization License on forms provided by
17the Department. The Department shall renew the Early Approval
18Adult Use Dispensing Organization License within 60 days of the
19renewal application being deemed complete if:
20        (1) the dispensing organization submits an application
21    and the required nonrefundable renewal fee of $30,000, to
22    be deposited into the Cannabis Regulation Fund;
23        (2) the Department has not suspended or permanently
24    revoked the Early Approval Adult Use Dispensing
25    Organization License or a medical cannabis dispensing
26    organization license on the same premises for violations of

 

 

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1    this Act, the Compassionate Use of Medical Cannabis Pilot
2    Program Act, or rules adopted pursuant to those Acts; and
3        (3) the dispensing organization has completed a Social
4    Equity Inclusion Plan as provided required by parts (A),
5    (B), and (C) of paragraph (8) of subsection (b) of this
6    Section or has made substantial progress toward completing
7    a Social Equity Inclusion Plan as provided by parts (D) and
8    (E) of paragraph (8) of subsection (b) of this Section; and
9        (4) the dispensing organization is in compliance with
10    this Act and rules.
11    (l) The Early Approval Adult Use Dispensing Organization
12License renewed pursuant to subsection (k) of this Section
13shall expire March 31, 2022. The Early Approval Adult Use
14Dispensing Organization Licensee shall receive written or
15electronic notice 90 days before the expiration of the license
16that the license will expire, and that informs inform the
17license holder that it may apply for an Adult Use Dispensing
18Organization License on forms provided by the Department. The
19Department shall grant an Adult Use Dispensing Organization
20License within 60 days of an application being deemed complete
21if the applicant has met all of the criteria in Section 15-36.
22    (m) If a dispensing organization dispensary fails to submit
23an application for renewal of an Early Approval Adult Use
24Dispensing Organization License or for an Adult Use Dispensing
25Organization License before the expiration dates provided in
26subsections (k) and (l) of the Early Approval Adult Use

 

 

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1Dispensing Organization License pursuant to subsection (k) of
2this Section, the dispensing organization shall cease serving
3purchasers and cease all operations until it receives a renewal
4or an Adult Use Dispensing Organization License, as the case
5may be.
6    (n) A dispensing organization agent who holds a valid
7dispensing organization agent identification card issued under
8the Compassionate Use of Medical Cannabis Pilot Program Act and
9is an officer, director, manager, or employee of the dispensing
10organization licensed under this Section may engage in all
11activities authorized by this Article to be performed by a
12dispensing organization agent.
13    (o) If the Department suspends, permanently revokes, or
14otherwise disciplines the Early Approval Adult Use Dispensing
15Organization License of a dispensing organization that also
16holds a medical cannabis dispensing organization license
17issued under the Compassionate Use of Medical Cannabis Program
18Act, the Department may consider the suspension, permanent
19revocation, or other discipline of the medical cannabis
20dispensing organization license.
21    (p) (o) All fees collected pursuant to this Section shall
22be deposited into the Cannabis Regulation Fund, unless
23otherwise specified.
24(Source: P.A. 101-27, eff. 6-25-19.)
 
25    (410 ILCS 705/15-20)

 

 

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1    Sec. 15-20. Early Approval Adult Use Dispensing
2Organization License; secondary site.
3    (a) If the Department suspends or revokes the Early
4Approval Adult Use Dispensing Organization License of a
5dispensing organization that also holds a medical cannabis
6dispensing organization license issued under the Compassionate
7Use of Medical Cannabis Pilot Program Act, the Department may
8consider the suspension or revocation as grounds to take
9disciplinary action against the medical cannabis dispensing
10organization license.
11    (a-5) If, within 360 days of the effective date of this
12Act, a dispensing organization is unable to find a location
13within the BLS Regions prescribed in subsection (a) of this
14Section in which to operate an Early Approval Adult Use
15Dispensing Organization at a secondary site because no
16jurisdiction within the prescribed area allows the operation of
17an Adult Use Cannabis Dispensing Organization, the Department
18of Financial and Professional Regulation may waive the
19geographic restrictions of subsection (a) of this Section and
20specify another BLS Region into which the dispensary may be
21placed.
22    (a) (b) Any medical cannabis dispensing organization
23holding a valid registration under the Compassionate Use of
24Medical Cannabis Pilot Program Act as of the effective date of
25this Act may, within 60 days of the effective date of this Act,
26apply to the Department for an Early Approval Adult Use

 

 

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1Dispensing Organization License to operate a dispensing
2organization to serve purchasers at a secondary site not within
31,500 feet of another medical cannabis dispensing organization
4or adult use dispensing organization. The Early Approval Adult
5Use Dispensing Organization secondary site shall be within any
6BLS Region region that shares territory with the dispensing
7organization district to which the medical cannabis dispensing
8organization is assigned under the administrative rules for
9dispensing organizations under the Compassionate Use of
10Medical Cannabis Pilot Program Act.
11    (a-5) If, within 360 days of the effective date of this
12Act, a dispensing organization is unable to find a location
13within the BLS Regions prescribed in subsection (a) of this
14Section in which to operate an Early Approval Adult Use
15Dispensing Organization at a secondary site because no
16jurisdiction within the prescribed area allows the operation of
17an Adult Use Cannabis Dispensing Organization, the Department
18of Financial and Professional Regulation may waive the
19geographic restrictions of subsection (a) of this Section and
20specify another BLS Region into which the dispensary may be
21placed.
22    (b) (Blank).
23    (c) A medical cannabis dispensing organization seeking
24issuance of an Early Approval Adult Use Dispensing Organization
25License at a secondary site to serve purchasers at a secondary
26site as prescribed in subsection (a) (b) of this Section shall

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB1557 Enrolled- 184 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 185 -LRB101 08168 SMS 53234 b

1required information may result in the application being
2disqualified. Principal officers shall not be required to
3submit to the fingerprint and background check requirements of
4Section 5-20.
5    (g) If the Department receives an application that fails to
6provide the required elements contained in subsection (c), the
7Department shall issue a deficiency notice to the applicant.
8The applicant shall have 10 calendar days from the date of the
9deficiency notice to submit complete information. Applications
10that are still incomplete after this opportunity to cure may be
11disqualified.
12    (h) Once all required information and documents have been
13submitted, the Department will review the application. The
14Department may request revisions and retains final approval
15over dispensary features. Once the application is complete and
16meets the Department's approval, the Department shall
17conditionally approve the license. Final approval is
18contingent on the build-out and Department inspection.
19    (i) Upon submission of the Early Approval Adult Use
20Dispensing Organization at a secondary site application, the
21applicant shall request an inspection and the Department may
22inspect the Early Approval Adult Use Dispensing Organization's
23secondary site to confirm compliance with the application and
24this Act.
25    (j) The Department shall only issue an Early Approval Adult
26Use Dispensing Organization License at a secondary site after

 

 

SB1557 Enrolled- 186 -LRB101 08168 SMS 53234 b

1the completion of a successful inspection.
2    (k) If an applicant passes the inspection under this
3Section, the Department shall issue the Early Approval Adult
4Use Dispensing Organization License at a secondary site within
510 business days unless:
6        (1) The licensee, any principal officer or board member
7    of the licensee, or any person having a financial or voting
8    interest of 5% or greater in the licensee ; principal
9    officer, board member, or person having a financial or
10    voting interest of 5% or greater in the licensee; or agent
11    is delinquent in filing any required tax returns or paying
12    any amounts owed to the State of Illinois; or
13        (2) The Secretary of Financial and Professional
14    Regulation determines there is reason, based on documented
15    compliance violations, the licensee is not entitled to an
16    Early Approval Adult Use Dispensing Organization License
17    at its secondary site.
18    (l) Once the Department has issued a license, the
19dispensing organization shall notify the Department of the
20proposed opening date.
21    (m) A registered medical cannabis dispensing organization
22that obtains an Early Approval Adult Use Dispensing
23Organization License at a secondary site may begin selling
24cannabis, cannabis-infused products, paraphernalia, and
25related items to purchasers under the rules of this Act no
26sooner than January 1, 2020.

 

 

SB1557 Enrolled- 187 -LRB101 08168 SMS 53234 b

1    (n) If there is a shortage of cannabis or cannabis-infused
2products, a dispensing organization holding both a dispensing
3organization license under the Compassionate Use of Medical
4Cannabis Pilot Program Act and this Article shall prioritize
5serving qualifying patients and caregivers before serving
6purchasers.
7    (o) An Early Approval Adult Use Dispensing Organization
8License at a secondary site is valid until March 31, 2021. A
9dispensing organization that obtains an Early Approval Adult
10Use Dispensing Organization License at a secondary site shall
11receive 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 renew its Early Approval
14Adult Use Dispensing Organization License at a secondary site.
15The Department shall renew an Early Approval Adult Use
16Dispensing Organization License at a secondary site within 60
17days of submission of the renewal application being deemed
18complete if:
19        (1) the dispensing organization submits an application
20    and the required nonrefundable renewal fee of $30,000, to
21    be deposited into the Cannabis Regulation Fund;
22        (2) the Department has not suspended or permanently
23    revoked the Early Approval Adult Use Dispensing
24    Organization License or a medical cannabis dispensing
25    organization license held by the same person or entity for
26    violating this Act or rules adopted under this Act or the

 

 

SB1557 Enrolled- 188 -LRB101 08168 SMS 53234 b

1    Compassionate Use of Medical Cannabis Pilot Program Act or
2    rules adopted under that Act; and
3        (3) the dispensing organization has completed a Social
4    Equity Inclusion Plan provided as required by paragraph
5    (1), (2), or (3) (16) of subsection (d) (c) of this Section
6    or has made substantial progress toward completing a Social
7    Equity Inclusion Plan provided by paragraph (4) or (5) of
8    subsection (d) 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
13that informs inform the license holder that it may apply for an
14Adult Use Dispensing Organization License on forms provided by
15the Department. The Department shall grant an Adult Use
16Dispensing Organization License within 60 days of an
17application being deemed complete if the applicant has meet all
18of the criteria in Section 15-36.
19    (q) If a dispensing organization fails to submit an
20application for renewal of an Early Approval Adult Use
21Dispensing Organization License or for an Adult Use Dispensing
22Organization License before the expiration dates provided in
23subsections (o) and (p) of this Section, the dispensing
24organization shall cease serving purchasers until it receives a
25renewal or an Adult Use Dispensing Organization License.
26    (r) A dispensing organization agent who holds a valid

 

 

SB1557 Enrolled- 189 -LRB101 08168 SMS 53234 b

1dispensing organization agent identification card issued under
2the Compassionate Use of Medical Cannabis Pilot Program Act and
3is an officer, director, manager, or employee of the dispensing
4organization licensed under this Section may engage in all
5activities authorized by this Article to be performed by a
6dispensing organization agent.
7    (s) If the Department suspends, permanently revokes, or
8otherwise disciplines the Early Approval Adult Use Dispensing
9Organization License of a dispensing organization that also
10holds a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act, the Department may consider the suspension, permanent
13revocation, or other discipline or revokes the Early Approval
14Adult Use Dispensing Organization License of a dispensing
15organization that also holds a medical cannabis dispensing
16organization license issued under the Compassionate Use of
17Medical Cannabis Pilot Program Act, the Department may consider
18the suspension or revocation as grounds to take disciplinary
19action against the medical cannabis dispensing organization.
20    (t) All fees collected pursuant to this Section shall be
21deposited into the Cannabis Regulation Fund, unless otherwise
22specified or fines collected from an Early Approval Adult Use
23Dispensary Organization License at a secondary site holder as a
24result of a disciplinary action in the enforcement of this Act
25shall be deposited into the Cannabis Regulation Fund and be
26appropriated to the Department for the ordinary and contingent

 

 

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1expenses of the Department in the administration and
2enforcement of this Section.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/15-25)
5    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
6Organization Licenses prior to January 1, 2021.
7    (a) The Department shall issue up to 75 Conditional Adult
8Use Dispensing Organization Licenses before May 1, 2020.
9    (b) The Department shall make the application for a
10Conditional Adult Use Dispensing Organization License
11available no later than October 1, 2019 and shall accept
12applications no later than January 1, 2020.
13    (c) To ensure the geographic dispersion of Conditional
14Adult Use Dispensing Organization License holders, the
15following number of licenses shall be awarded in each BLS
16Region as determined by each region's percentage of the State's
17population:
18        (1) Bloomington: 1
19        (2) Cape Girardeau: 1
20        (3) Carbondale-Marion: 1
21        (4) Champaign-Urbana: 1
22        (5) Chicago-Naperville-Elgin: 47
23        (6) Danville: 1
24        (7) Davenport-Moline-Rock Island: 1
25        (8) Decatur: 1

 

 

SB1557 Enrolled- 191 -LRB101 08168 SMS 53234 b

1        (9) Kankakee: 1
2        (10) Peoria: 3
3        (11) Rockford: 2
4        (12) St. Louis: 4
5        (13) Springfield: 1
6        (14) Northwest Illinois nonmetropolitan: 3
7        (15) West Central Illinois nonmetropolitan: 3
8        (16) East Central Illinois nonmetropolitan: 2
9        (17) South Illinois nonmetropolitan: 2
10    (d) An applicant seeking issuance of a Conditional Adult
11Use Dispensing Organization License shall submit an
12application on forms provided by the Department. An applicant
13must meet the following requirements:
14        (1) Payment of a nonrefundable application fee of
15    $5,000 for each license for which the applicant is
16    applying, which shall be deposited into the Cannabis
17    Regulation Fund;
18        (2) Certification that the applicant will comply with
19    the requirements contained in this Act;
20        (3) The legal name of the proposed dispensing
21    organization;
22        (4) A statement that the dispensing organization
23    agrees to respond to the Department's supplemental
24    requests for information;
25        (5) From each principal officer, a statement
26    indicating whether that person:

 

 

SB1557 Enrolled- 192 -LRB101 08168 SMS 53234 b

1            (A) has previously held or currently holds an
2        ownership interest in a cannabis business
3        establishment in Illinois; or
4            (B) has held an ownership interest in a dispensing
5        organization or its equivalent in another state or
6        territory of the United States that had the dispensing
7        organization registration or license suspended,
8        revoked, placed on probationary status, or subjected
9        to other disciplinary action;
10        (6) Disclosure of whether any principal officer has
11    ever filed for bankruptcy or defaulted on spousal support
12    or child support obligation;
13        (7) A resume for each principal officer, including
14    whether that person has an academic degree, certification,
15    or relevant experience with a cannabis business
16    establishment or in a related industry;
17        (8) A description of the training and education that
18    will be provided to dispensing organization agents;
19        (9) A copy of the proposed operating bylaws;
20        (10) A copy of the proposed business plan that complies
21    with the requirements in this Act, including, at a minimum,
22    the following:
23            (A) A description of services to be offered; and
24            (B) A description of the process of dispensing
25        cannabis;
26        (11) A copy of the proposed security plan that complies

 

 

SB1557 Enrolled- 193 -LRB101 08168 SMS 53234 b

1    with the requirements in this Article, including:
2            (A) The process or controls that will be
3        implemented to monitor the dispensary, secure the
4        premises, agents, and currency, and prevent the
5        diversion, theft, or loss of cannabis; and
6            (B) The process to ensure that access to the
7        restricted access areas is restricted to, registered
8        agents, service professionals, transporting
9        organization agents, Department inspectors, and
10        security personnel;
11        (12) A proposed inventory control plan that complies
12    with this Section;
13        (13) A proposed floor plan, a square footage estimate,
14    and a description of proposed security devices, including,
15    without limitation, cameras, motion detectors, servers,
16    video storage capabilities, and alarm service providers;
17        (14) The name, address, social security number, and
18    date of birth of each principal officer and board member of
19    the dispensing organization; each of those individuals
20    shall be at least 21 years of age;
21        (15) Evidence of the applicant's status as a Social
22    Equity Applicant, if applicable, and whether a Social
23    Equity Applicant plans to apply for a loan or grant issued
24    by the Department of Commerce and Economic Opportunity;
25        (16) The address, telephone number, and email address
26    of the applicant's principal place of business, if

 

 

SB1557 Enrolled- 194 -LRB101 08168 SMS 53234 b

1    applicable. A post office box is not permitted;
2        (17) Written summaries of any information regarding
3    instances in which a business or not-for-profit that a
4    prospective board member previously managed or served on
5    were fined or censured, or any instances in which a
6    business or not-for-profit that a prospective board member
7    previously managed or served on had its registration
8    suspended or revoked in any administrative or judicial
9    proceeding;
10        (18) A plan for community engagement;
11        (19) Procedures to ensure accurate recordkeeping and
12    security measures that are in accordance with this Article
13    and Department rules;
14        (20) The estimated volume of cannabis it plans to store
15    at the dispensary;
16        (21) A description of the features that will provide
17    accessibility to purchasers as required by the Americans
18    with Disabilities Act;
19        (22) A detailed description of air treatment systems
20    that will be installed to reduce odors;
21        (23) A reasonable assurance that the issuance of a
22    license will not have a detrimental impact on the community
23    in which the applicant wishes to locate;
24        (24) The dated signature of each principal officer;
25        (25) A description of the enclosed, locked facility
26    where cannabis will be stored by the dispensing

 

 

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1    organization;
2        (26) Signed statements from each dispensing
3    organization agent stating that he or she will not divert
4    cannabis;
5        (27) The number of licenses it is applying for in each
6    BLS Region;
7        (28) A diversity plan that includes a narrative of at
8    least 2,500 words that establishes a goal of diversity in
9    ownership, management, employment, and contracting to
10    ensure that diverse participants and groups are afforded
11    equality of opportunity;
12        (29) A contract with a private security contractor that
13    is licensed under Section 10-5 of the Private Detective,
14    Private Alarm, Private Security, Fingerprint Vendor, and
15    Locksmith Act of 2004 in order for the dispensary to have
16    adequate security at its facility; and
17        (30) Other information deemed necessary by the
18    Illinois Cannabis Regulation Oversight Officer to conduct
19    the disparity and availability study referenced in
20    subsection (e) of Section 5-45.
21    (e) An applicant who receives a Conditional Adult Use
22Dispensing Organization License under this Section has 180 days
23from the date of award to identify a physical location for the
24dispensing organization retail storefront. Before a
25conditional licensee receives an authorization to build out the
26dispensing organization from the Department, the Department

 

 

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1shall inspect the physical space selected by the conditional
2licensee. The Department shall verify the site is suitable for
3public access, the layout promotes the safe dispensing of
4cannabis, the location is sufficient in size, power allocation,
5lighting, parking, handicapped accessible parking spaces,
6accessible entry and exits as required by the Americans with
7Disabilities Act, product handling, and storage. The applicant
8shall also provide a statement of reasonable assurance that the
9issuance of a license will not have a detrimental impact on the
10community. The applicant shall also provide evidence that the
11location is not within 1,500 feet of an existing dispensing
12organization. If an applicant is unable to find a suitable
13physical address in the opinion of the Department within 180
14days of the issuance of the Conditional Adult Use Dispensing
15Organization License, the Department may extend the period for
16finding a physical address another 180 days if the Conditional
17Adult Use Dispensing Organization License holder demonstrates
18concrete attempts to secure a location and a hardship. If the
19Department denies the extension or the Conditional Adult Use
20Dispensing Organization License holder is unable to find a
21location or become operational within 360 days of being awarded
22a conditional license, the Department shall rescind the
23conditional license and award it to the next highest scoring
24applicant in the BLS Region for which the license was assigned,
25provided the applicant receiving the license: (i) confirms a
26continued interest in operating a dispensing organization;

 

 

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1(ii) can provide evidence that the applicant continues to meet
2all requirements for holding a Conditional Adult Use Dispensing
3Organization License set forth in this Act the financial
4requirements provided in subsection (c) of this Section; and
5(iii) has not otherwise become ineligible to be awarded a
6dispensing organization license. If the new awardee is unable
7to accept the Conditional Adult Use Dispensing Organization
8License, the Department shall award the Conditional Adult Use
9Dispensing Organization License to the next highest scoring
10applicant in the same manner. The new awardee shall be subject
11to the same required deadlines as provided in this subsection.
12    (e-5) If, within 180 days of being awarded a Conditional
13Adult Use Dispensing Organization License license, a
14dispensing organization is unable to find a location within the
15BLS Region in which it was awarded a Conditional Adult Use
16Dispensing Organization License license because no
17jurisdiction within the BLS Region allows for the operation of
18an Adult Use Dispensing Organization, the Department of
19Financial and Professional Regulation may authorize the
20Conditional Adult Use Dispensing Organization License holder
21to transfer its license to a BLS Region specified by the
22Department.
23    (f) A dispensing organization that is awarded a Conditional
24Adult Use Dispensing Organization License pursuant to the
25criteria in Section 15-30 shall not purchase, possess, sell, or
26dispense cannabis or cannabis-infused products until the

 

 

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1person has received an Adult Use Dispensing Organization
2License issued by the Department pursuant to Section 15-36 of
3this Act. The Department shall not issue an Adult Use
4Dispensing Organization License until:
5        (1) the Department has inspected the dispensary site
6    and proposed operations and verified that they are in
7    compliance with this Act and local zoning laws; and
8        (2) the Conditional Adult Use Dispensing Organization
9    License holder has paid a registration fee of $60,000, or a
10    prorated amount accounting for the difference of time
11    between when the Adult Use Dispensing Organization License
12    is issued and March 31 of the next even-numbered year.
13    (g) The Department shall conduct a background check of the
14prospective organization agents in order to carry out this
15Article. The Department of State Police shall charge the
16applicant a fee for conducting the criminal history record
17check, which shall be deposited into the State Police Services
18Fund and shall not exceed the actual cost of the record check.
19Each person applying as a dispensing organization agent shall
20submit a full set of fingerprints to the Department of State
21Police for the purpose of obtaining a State and federal
22criminal records check. These fingerprints shall be checked
23against the fingerprint records now and hereafter, to the
24extent allowed by law, filed in the Department of State Police
25and Federal Bureau of Identification criminal history records
26databases. The Department of State Police shall furnish,

 

 

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1following positive identification, all Illinois conviction
2information to the Department.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/15-30)
5    Sec. 15-30. Selection criteria for conditional licenses
6awarded under Section 15-25.
7    (a) Applicants for a Conditional Adult Use Dispensing
8Organization License must submit all required information,
9including the information required in Section 15-25, to the
10Department. Failure by an applicant to submit all required
11information may result in the application being disqualified.
12    (b) If the Department receives an application that fails to
13provide the required elements contained in this Section, the
14Department shall issue a deficiency notice to the applicant.
15The applicant shall have 10 calendar days from the date of the
16deficiency notice to resubmit the incomplete information.
17Applications that are still incomplete after this opportunity
18to cure will not be scored and will be disqualified.
19    (c) The Department will award up to 250 points to complete
20applications based on the sufficiency of the applicant's
21responses to required information. Applicants will be awarded
22points based on a determination that the application
23satisfactorily includes the following elements:
24        (1) Suitability of Employee Training Plan (15 points).
25            The plan includes an employee training plan that

 

 

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1        demonstrates that employees will understand the rules
2        and laws to be followed by dispensary employees, have
3        knowledge of any security measures and operating
4        procedures of the dispensary, and are able to advise
5        purchasers on how to safely consume cannabis and use
6        individual products offered by the dispensary.
7        (2) Security and Recordkeeping (65 points).
8            (A) The security plan accounts for the prevention
9        of the theft or diversion of cannabis. The security
10        plan demonstrates safety procedures for dispensing
11        organization dispensary agents and purchasers, and
12        safe delivery and storage of cannabis and currency. It
13        demonstrates compliance with all security requirements
14        in this Act and rules.
15            (B) A plan for recordkeeping, tracking, and
16        monitoring inventory, quality control, and other
17        policies and procedures that will promote standard
18        recordkeeping and discourage unlawful activity. This
19        plan includes the applicant's strategy to communicate
20        with the Department and the Department of State Police
21        on the destruction and disposal of cannabis. The plan
22        must also demonstrate compliance with this Act and
23        rules.
24            (C) The security plan shall also detail which
25        private security contractor licensed under Section
26        10-5 of the Private Detective, Private Alarm, Private

 

 

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1        Security, Fingerprint Vendor, and Locksmith Act of
2        2004 the dispensary will contract with in order to
3        provide adequate security at its facility.
4        (3) Applicant's Business Plan, Financials, Operating
5    and Floor Plan (65 points).
6            (A) The business plan shall describe, at a minimum,
7        how the dispensing organization will be managed on a
8        long-term basis. This shall include a description of
9        the dispensing organization's point-of-sale system,
10        purchases and denials of sale, confidentiality, and
11        products and services to be offered. It will
12        demonstrate compliance with this Act and rules.
13            (B) The operating plan shall include, at a minimum,
14        best practices for day-to-day dispensary operation and
15        staffing. The operating plan may also include
16        information about employment practices, including
17        information about the percentage of full-time
18        employees who will be provided a living wage.
19            (C) The proposed floor plan is suitable for public
20        access, the layout promotes safe dispensing of
21        cannabis, is compliant with the Americans with
22        Disabilities Act and the Environmental Barriers Act,
23        and facilitates safe product handling and storage.
24        (4) Knowledge and Experience (30 points).
25            (A) The applicant's principal officers must
26        demonstrate experience and qualifications in business

 

 

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

 

 

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1    carbon footprint, environmental impact, and resource needs
2    for the dispensary, which may include, without limitation,
3    recycling cannabis product packaging.
4        (8) Illinois owner (5 points): The applicant is 51% or
5    more owned and controlled by an Illinois resident, who can
6    prove residency in each of the past 5 years with tax
7    records or 2 of the following: .
8            (A) a signed lease agreement that includes the
9        applicant's name;
10            (B) a property deed that includes the applicant's
11        name;
12            (C) school records;
13            (D) a voter registration card;
14            (E) an Illinois driver's license, an Illinois
15        Identification Card, or an Illinois Person with a
16        Disability Identification Card;
17            (F) a paycheck stub;
18            (G) a utility bill; or
19            (H) any other proof of residency or other
20        information necessary to establish residence as
21        provided by rule.
22        (9) Status as veteran (5 points): The applicant is 51%
23    or more controlled and owned by an individual or
24    individuals who meet the qualifications of a veteran as
25    defined by Section 45-57 of the Illinois Procurement Code.
26        (10) A diversity plan (5 points): that includes a

 

 

SB1557 Enrolled- 204 -LRB101 08168 SMS 53234 b

1    narrative of not more than 2,500 words that establishes a
2    goal of diversity in ownership, management, employment,
3    and contracting to ensure that diverse participants and
4    groups are afforded equality of opportunity.
5    (d) The Department may also award up to 2 bonus points for
6a plan to engage with the community. The applicant may
7demonstrate a desire to engage with its community by
8participating in one or more of, but not limited to, the
9following actions: (i) establishment of an incubator program
10designed to increase participation in the cannabis industry by
11persons who would qualify as Social Equity Applicants; (ii)
12providing financial assistance to substance abuse treatment
13centers; (iii) educating children and teens about the potential
14harms of cannabis use; or (iv) other measures demonstrating a
15commitment to the applicant's community. Bonus points will only
16be awarded if the Department receives applications that receive
17an equal score for a particular region.
18    (e) The Department may verify information contained in each
19application and accompanying documentation to assess the
20applicant's veracity and fitness to operate a dispensing
21organization.
22    (f) The Department may, in its discretion, refuse to issue
23an authorization to any applicant:
24        (1) Who is unqualified to perform the duties required
25    of the applicant;
26        (2) Who fails to disclose or states falsely any

 

 

SB1557 Enrolled- 205 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

SB1557 Enrolled- 207 -LRB101 08168 SMS 53234 b

1Early Approval Adult Use Dispensing Organization Licenses,
2Conditional Adult Use Dispensing Organization Licenses, or
3Adult Use Dispensing Organization Licenses. Any entity that is
4awarded a license that results in a single person or entity
5having a direct or indirect financial interest in more than 10
6licenses shall forfeit the most recently issued license and
7suffer a penalty to be determined by the Department, unless the
8entity declines the license at the time it is awarded.
9(Source: P.A. 101-27, eff. 6-25-19.)
 
10    (410 ILCS 705/15-35)
11    Sec. 15-35. Conditional Adult Use Dispensing Organization
12License after January 1, 2021.
13    (a) In addition to any of the licenses issued in Sections
1415-15, Section 15-20, or Section 15-25 of this Act, by December
1521, 2021, the Department shall issue up to 110 Conditional
16Adult Use Dispensing Organization Licenses, pursuant to the
17application process adopted under this Section. Prior to
18issuing such licenses, the Department may adopt rules through
19emergency rulemaking in accordance with subsection (gg) of
20Section 5-45 of the Illinois Administrative Procedure Act. The
21General Assembly finds that the adoption of rules to regulate
22cannabis use is deemed an emergency and necessary for the
23public interest, safety, and welfare. Such rules may:
24        (1) Modify or change the BLS Regions as they apply to
25    this Article or modify or raise the number of Adult

 

 

SB1557 Enrolled- 208 -LRB101 08168 SMS 53234 b

1    Conditional Use Dispensing Organization Licenses assigned
2    to each region based on the following factors:
3            (A) Purchaser wait times;
4            (B) Travel time to the nearest dispensary for
5        potential purchasers;
6            (C) Percentage of cannabis sales occurring in
7        Illinois not in the regulated market using data from
8        the Substance Abuse and Mental Health Services
9        Administration, National Survey on Drug Use and
10        Health, Illinois Behavioral Risk Factor Surveillance
11        System, and tourism data from the Illinois Office of
12        Tourism to ascertain total cannabis consumption in
13        Illinois compared to the amount of sales in licensed
14        dispensing organizations;
15            (D) Whether there is an adequate supply of cannabis
16        and cannabis-infused products to serve registered
17        medical cannabis patients;
18            (E) Population increases or shifts;
19            (F) Density of dispensing organizations in a
20        region;
21            (G) The Department's capacity to appropriately
22        regulate additional licenses;
23            (H) The findings and recommendations from the
24        disparity and availability study commissioned by the
25        Illinois Cannabis Regulation Oversight Officer in
26        subsection (e) of Section 5-45 to reduce or eliminate

 

 

SB1557 Enrolled- 209 -LRB101 08168 SMS 53234 b

1        any identified barriers to entry in the cannabis
2        industry; and
3            (I) Any other criteria the Department deems
4        relevant.
5        (2) Modify or change the licensing application process
6    to reduce or eliminate the barriers identified in the
7    disparity and availability study commissioned by the
8    Illinois Cannabis Regulation Oversight Officer and make
9    modifications to remedy evidence of discrimination.
10    (b) After January 1, 2022, the Department may by rule
11modify or raise the number of Adult Use Dispensing Organization
12Licenses assigned to each region, and modify or change the
13licensing application process to reduce or eliminate barriers
14based on the criteria in subsection (a). At no time shall the
15Department issue more than 500 Adult Use Dispensing Dispensary
16Organization Licenses.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/15-36)
19    Sec. 15-36. Adult Use Dispensing Organization License.
20    (a) A person is only eligible to receive an Adult Use
21Dispensing Organization if the person has been awarded a
22Conditional Adult Use Dispensing Organization License pursuant
23to this Act or has renewed its license pursuant to subsection
24(k) of Section 15-15 or subsection (p) of Section 15-20.
25    (b) The Department shall not issue an Adult Use Dispensing

 

 

SB1557 Enrolled- 210 -LRB101 08168 SMS 53234 b

1Organization License until:
2        (1) the Department has inspected the dispensary site
3    and proposed operations and verified that they are in
4    compliance with this Act and local zoning laws;
5        (2) the Conditional Adult Use Dispensing Organization
6    License holder has paid a license registration fee of
7    $60,000 or a prorated amount accounting for the difference
8    of time between when the Adult Use Dispensing Organization
9    License is issued and March 31 of the next even-numbered
10    year; and
11        (3) the Conditional Adult Use Dispensing Organization
12    License holder has met all the requirements in this the Act
13    and rules.
14    (c) No person or entity shall hold any legal, equitable,
15ownership, or beneficial interest, directly or indirectly, of
16more than 10 dispensing organizations licensed under this
17Article. Further, no person or entity that is:
18        (1) employed by, is an agent of, or participates in the
19    management of a dispensing organization or registered
20    medical cannabis dispensing organization;
21        (2) a principal officer of a dispensing organization or
22    registered medical cannabis dispensing organization; or
23        (3) an entity controlled by or affiliated with a
24    principal officer of a dispensing organization or
25    registered medical cannabis dispensing organization;
26shall hold any legal, equitable, ownership, or beneficial

 

 

SB1557 Enrolled- 211 -LRB101 08168 SMS 53234 b

1interest, directly or indirectly, in a dispensing organization
2that would result in such person or entity owning or
3participating in the management of more than 10 Early Approval
4Adult Use Dispensing Organization Licenses, Early Approval
5Adult Use Dispensing Organization Licenses at a secondary site,
6Conditional Adult Use Dispensing Organization Licenses, or
7Adult Use Dispensing Organization Licenses dispensing
8organizations. For the purpose of this subsection,
9participating in management may include, without limitation,
10controlling decisions regarding staffing, pricing, purchasing,
11marketing, store design, hiring, and website design.
12    (d) The Department shall deny an application if granting
13that application would result in a person or entity obtaining
14direct or indirect financial interest in more than 10 Early
15Approval Adult Use Dispensing Organization Licenses,
16Conditional Adult Use Dispensing Organization Licenses, Adult
17Use Dispensing Organization Licenses, or any combination
18thereof. If a person or entity is awarded a Conditional Adult
19Use Dispensing Organization License that would cause the person
20or entity to be in violation of this subsection, he, she, or it
21shall choose which license application it wants to abandon and
22such licenses shall become available to the next qualified
23applicant in the region in which the abandoned license was
24awarded.
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

SB1557 Enrolled- 212 -LRB101 08168 SMS 53234 b

1    (410 ILCS 705/15-40)
2    Sec. 15-40. Dispensing organization agent identification
3card; agent training.
4    (a) The Department shall:
5        (1) verify the information contained in an application
6    or renewal for a dispensing organization agent
7    identification card submitted under this Article, and
8    approve or deny an application or renewal, within 30 days
9    of receiving a completed application or renewal
10    application and all supporting documentation required by
11    rule;
12        (2) issue a dispensing organization agent
13    identification card to a qualifying agent within 15
14    business days of approving the application or renewal;
15        (3) enter the registry identification number of the
16    dispensing organization where the agent works;
17        (4) within one year from the effective date of this
18    Act, allow for an electronic application process and
19    provide a confirmation by electronic or other methods that
20    an application has been submitted; and
21        (5) collect a $100 nonrefundable fee from the applicant
22    to be deposited into the Cannabis Regulation Fund.
23    (b) A dispensing organization agent must keep his or her
24identification card visible at all times when in the dispensary
25on the property of the dispensing organization.
26    (c) The dispensing organization agent identification cards

 

 

SB1557 Enrolled- 213 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 214 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

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

 

 

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1year and include a nonrefundable non-refundable application
2fee of $2,000 to be deposited into the Cannabis Regulation Fund
3or a fee as may be set by rule.
4    (r) All persons applying to become or renewing their
5registrations to be agents, including agents-in-charge and
6principal officers, shall disclose any disciplinary action
7taken against them that may have occurred in Illinois, another
8state, or another country in relation to their employment at a
9cannabis business establishment or at any cannabis cultivation
10center, processor, infuser, dispensary, or other cannabis
11business establishment.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/15-55)
14    Sec. 15-55. Financial responsibility. Evidence of
15financial responsibility is a requirement for the issuance,
16maintenance, or reactivation of a license under this Article.
17Evidence of financial responsibility shall be used to guarantee
18that the dispensing organization timely and successfully
19completes dispensary construction, operates in a manner that
20provides an uninterrupted supply of cannabis, faithfully pays
21registration renewal fees, keeps accurate books and records,
22makes regularly required reports, complies with State tax
23requirements, and conducts the dispensing organization in
24conformity with this Act and rules. Evidence of financial
25responsibility shall be provided by one of the following:

 

 

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

 

 

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1    outlined in this Act and rules. Bond terms shall include:
2            (A) The business name and registration number on
3        the bond must correspond exactly with the business name
4        and registration number in the Department's records.
5            (B) The bond must be written on a form approved by
6        the Department.
7            (C) A copy of the bond must be received by the
8        Department within 90 days after the effective date.
9            (D) The bond shall not be canceled by a surety on
10        less than 30 days' notice in writing to the Department.
11        If a bond is canceled and the registrant fails to file
12        a new bond with the Department in the required amount
13        on or before the effective date of cancellation, the
14        registrant's registration may be permanently revoked.
15        The total and aggregate liability of the surety on the
16        bond is limited to the amount specified in the bond.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    (410 ILCS 705/15-65)
19    Sec. 15-65. Administration.
20    (a) A dispensing organization shall establish, maintain,
21and comply with written policies and procedures as submitted in
22the Business, Financial and Operating plan as required in this
23Article or by rules established by the Department, and approved
24by the Department, for the security, storage, inventory, and
25distribution of cannabis. These policies and procedures shall

 

 

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

 

 

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

 

 

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

 

 

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1policies and procedures on the dispensary premises and provide
2copies to the Department upon request. The dispensing
3organization shall review the dispensing organization policies
4and procedures at least once every 12 months from the issue
5date of the license and update as needed due to changes in
6industry standards or as requested by the Department.
7    (d) A dispensing organization shall ensure that each
8principal officer and each dispensing organization agent has a
9current agent identification card in the agent's immediate
10possession when the agent is at the dispensary.
11    (e) A dispensing organization shall provide prompt written
12notice to the Department, including the date of the event, when
13a dispensing organization agent no longer is employed by the
14dispensing organization.
15    (f) A dispensing organization shall promptly document and
16report any loss or theft of cannabis from the dispensary to the
17Department of State Police and the Department. It is the duty
18of any dispensing organization agent who becomes aware of the
19loss or theft to report it as provided in this Article.
20    (g) A dispensing organization shall post the following
21information in a conspicuous location in an area of the
22dispensary accessible to consumers:
23        (1) The dispensing organization's license;
24        (2) The hours of operation.
25    (h) Signage that shall be posted inside the premises.
26        (1) All dispensing organizations must display a

 

 

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

 

 

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1    (i) A dispensing organization shall prominently post
2notices inside the dispensing organization that state
3activities that are strictly prohibited and punishable by law,
4including, but not limited to:
5        (1) no minors permitted on the premises unless the
6    minor is a minor qualifying patient under the Compassionate
7    Use of Medical Cannabis Pilot Program Act;
8        (2) distribution to persons under the age of 21 is
9    prohibited;
10        (3) transportation of cannabis or cannabis products
11    across state lines is prohibited.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/15-70)
14    Sec. 15-70. Operational requirements; prohibitions.
15    (a) A dispensing organization shall operate in accordance
16with the representations made in its application and license
17materials. It shall be in compliance with this Act and rules.
18    (b) A dispensing organization must include the legal name
19of the dispensary on the packaging of any cannabis product it
20sells.
21    (c) All cannabis, cannabis-infused products, and cannabis
22seeds must be obtained from an Illinois registered adult use
23cultivation center, craft grower, infuser, or another
24dispensary.
25    (d) Dispensing organizations are prohibited from selling

 

 

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1any product containing alcohol except tinctures, which must be
2limited to containers that are no larger than 100 milliliters.
3    (e) A dispensing organization shall inspect and count
4product received from a transporting organization, by the adult
5use cultivation center, craft grower, infuser organization, or
6other dispensing organization before dispensing it.
7    (f) A dispensing organization may only accept cannabis
8deliveries into a restricted access area. Deliveries may not be
9accepted through the public or limited access areas unless
10otherwise approved by the Department.
11    (g) A dispensing organization shall maintain compliance
12with State and local building, fire, and zoning requirements or
13regulations.
14    (h) A dispensing organization shall submit a list to the
15Department of the names of all service professionals that will
16work at the dispensary. The list shall include a description of
17the type of business or service provided. Changes to the
18service professional list shall be promptly provided. No
19service professional shall work in the dispensary until the
20name is provided to the Department on the service professional
21list.
22    (i) A dispensing organization's license allows for a
23dispensary to be operated only at a single location.
24    (j) A dispensary may operate between 6 a.m. and 10 p.m.
25local time.
26    (k) A dispensing organization must keep all lighting

 

 

SB1557 Enrolled- 227 -LRB101 08168 SMS 53234 b

1outside and inside the dispensary in good working order and
2wattage sufficient for security cameras.
3    (l) A dispensing organization must keep all air treatment
4systems that will be installed to reduce odors in good working
5order.
6    (m) A dispensing organization must contract with a private
7security contractor that is licensed under Section 10-5 of the
8Private Detective, Private Alarm, Private Security,
9Fingerprint Vendor, and Locksmith Act of 2004 to provide
10on-site security at all hours of the dispensary's operation.
11    (n) (l) A dispensing organization shall ensure that any
12building or equipment used by a dispensing organization for the
13storage or sale of cannabis is maintained in a clean and
14sanitary condition.
15    (o) (m) The dispensary shall be free from infestation by
16insects, rodents, or pests.
17    (p) (n) A dispensing organization shall not:
18        (1) Produce or manufacture cannabis;
19        (2) Accept a cannabis product from an adult use
20    cultivation center, craft grower, infuser, dispensing
21    organization, or transporting organization unless it is
22    pre-packaged and labeled in accordance with this Act and
23    any rules that may be adopted pursuant to this Act;
24        (3) Obtain cannabis or cannabis-infused products from
25    outside the State of Illinois;
26        (4) Sell cannabis or cannabis-infused products to a

 

 

SB1557 Enrolled- 228 -LRB101 08168 SMS 53234 b

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

 

 

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1    cultivation centers, craft growers, infusers, or
2    transporters with whom it is dealing;
3        (7) Operate drive-through windows;
4        (8) Allow for the dispensing of cannabis or
5    cannabis-infused products in vending machines;
6        (9) Transport cannabis to residences or other
7    locations where purchasers may be for delivery;
8        (10) Enter into agreements to allow persons who are not
9    dispensing organization agents to deliver cannabis or to
10    transport cannabis to purchasers; .
11        (11) Operate a dispensary if its video surveillance
12    equipment is inoperative;
13        (12) Operate a dispensary if the point-of-sale
14    equipment is inoperative;
15        (13) Operate a dispensary if the State's cannabis
16    electronic verification system is inoperative;
17        (14) Have fewer than 2 people working at the dispensary
18    at any time while the dispensary is open;
19        (15) Be located within 1,500 feet of the property line
20    of a pre-existing dispensing organization;
21        (16) Sell clones or any other live plant material;
22        (17) Sell cannabis, cannabis concentrate, or
23    cannabis-infused products in combination or bundled with
24    each other or any other items for one price, and each item
25    of cannabis, concentrate, or cannabis-infused product must
26    be separately identified by quantity and price on the

 

 

SB1557 Enrolled- 230 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 231 -LRB101 08168 SMS 53234 b

1Approval Adult Use Cannabis Dispensing Organization License, a
2Conditional Adult Use Cannabis Dispensing Organization, an
3Adult Use Dispensing Organization License, or a medical
4cannabis dispensing organization license issued under the
5Compassionate Use of Medical Cannabis Pilot Program to enter
6into any contract with any person licensed to cultivate,
7process, or transport cannabis whereby such dispensing
8dispensary organization agrees not to sell any cannabis
9cultivated, processed, transported, manufactured, or
10distributed by any other cultivator, transporter, or infuser,
11and any provision in any contract violative of this Section
12shall render the whole of such contract void and no action
13shall be brought thereon in any court.
14(Source: P.A. 101-27, eff. 6-25-19.)
 
15    (410 ILCS 705/15-75)
16    Sec. 15-75. Inventory control system.
17    (a) A dispensing organization agent-in-charge shall have
18primary oversight of the dispensing organization's cannabis
19inventory verification system, and its point-of-sale system.
20The inventory point-of-sale system shall be real-time,
21web-based, and accessible by the Department at any time. The
22point-of-sale system shall track, at a minimum the date of
23sale, amount, price, and currency.
24    (b) A dispensing organization shall establish an account
25with the State's verification system that documents:

 

 

SB1557 Enrolled- 232 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 233 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

SB1557 Enrolled- 235 -LRB101 08168 SMS 53234 b

1    letter authored by a licensed certified public accountant
2    that it has been reviewed and is accurate based on the
3    information provided. The dispensing organization,
4    financial statement, and accompanying documents are not
5    required to be audited unless specifically requested by the
6    Department.
7    (e) A dispensing organization shall:
8        (1) Maintain the documentation required in this
9    Section in a secure locked location at the dispensing
10    organization for 5 years from the date on the document;
11        (2) Provide any documentation required to be
12    maintained in this Section to the Department for review
13    upon request; and
14        (3) If maintaining a bank account, retain for a period
15    of 5 years a record of each deposit or withdrawal from the
16    account.
17    (f) If a dispensing organization chooses to have a return
18policy for cannabis and cannabis products, the dispensing
19organization shall seek prior approval from the Department.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/15-85)
22    Sec. 15-85. Dispensing cannabis.
23    (a) Before a dispensing organization agent dispenses
24cannabis to a purchaser, the agent shall:
25        (1) Verify the age of the purchaser by checking a

 

 

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1    government-issued identification card by use of an
2    electronic reader or electronic scanning device to scan a
3    purchaser's government-issued identification, if
4    applicable, to determine the purchaser's age and the
5    validity of the identification;
6        (2) Verify the validity of the government-issued
7    identification card by use of an electronic reader or
8    electronic scanning device to scan a purchaser's
9    government-issued identification, if applicable, to
10    determine the purchaser's age and the validity of the
11    identification;
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

 

 

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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(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/15-95)
13    Sec. 15-95. Agent-in-charge.
14    (a) Every dispensing organization shall designate, at a
15minimum, one agent-in-charge for each licensed dispensary. The
16designated agent-in-charge must hold a dispensing organization
17agent identification card. Maintaining an agent-in-charge is a
18continuing requirement for the license, except as provided in
19subsection (f).
20    (b) The agent-in-charge shall be a principal officer or a
21full-time agent of the dispensing organization and shall manage
22the dispensary. Managing the dispensary includes, but is not
23limited to, responsibility for opening and closing the
24dispensary, delivery acceptance, oversight of sales and
25dispensing organization agents, recordkeeping, inventory,

 

 

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

 

 

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

 

 

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

 

 

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1        (10) Conviction of a felony offense in accordance with
2    Sections 2105-131, 2105-135, and 2105-205 of the
3    Department of Professional Regulation Law of the Civil
4    Administrative Code of Illinois or any incident listed in
5    this Act or rules following the issuance of an
6    agent-in-charge identification card;
7        (11) Dispensing to purchasers in amounts above the
8    limits provided in this Act; or
9        (12) Delinquency in filing any required tax returns or
10    paying any amounts owed to the State of Illinois.
11(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)
 
12    (410 ILCS 705/15-100)
13    Sec. 15-100. Security.
14    (a) A dispensing organization shall implement security
15measures to deter and prevent entry into and theft of cannabis
16or currency.
17    (b) A dispensing organization shall submit any changes to
18the floor plan or security plan to the Department for
19pre-approval. All cannabis shall be maintained and stored in a
20restricted access area during construction.
21    (c) The dispensing organization shall implement security
22measures to protect the premises, purchasers, and dispensing
23organization agents including, but not limited to the
24following:
25        (1) Establish a locked door or barrier between the

 

 

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1    facility's entrance and the limited access area;
2        (2) Prevent individuals from remaining on the premises
3    if they are not engaging in activity permitted by this Act
4    or rules;
5        (3) Develop a policy that addresses the maximum
6    capacity and purchaser flow in the waiting rooms and
7    limited access areas;
8        (4) Dispose of cannabis in accordance with this Act and
9    rules;
10        (5) During hours of operation, store and dispense all
11    cannabis from the restricted access area. During
12    operational hours, cannabis shall be stored in an enclosed
13    locked room or cabinet and accessible only to specifically
14    authorized dispensing organization agents;
15        (6) When the dispensary is closed, store all cannabis
16    and currency in a reinforced vault room in the restricted
17    access area and in a manner as to prevent diversion, theft,
18    or loss;
19        (7) Keep the reinforced vault room and any other
20    equipment or cannabis storage areas securely locked and
21    protected from unauthorized entry;
22        (8) Keep an electronic daily log of dispensing
23    organization agents with access to the reinforced vault
24    room and knowledge of the access code or combination;
25        (9) Keep all locks and security equipment in good
26    working order;

 

 

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

 

 

SB1557 Enrolled- 244 -LRB101 08168 SMS 53234 b

1Department in evaluating overall security measures.
2    (e) A dispensing dispensary organization may share
3premises with a craft grower or an infuser organization, or
4both, provided each licensee stores currency and cannabis or
5cannabis-infused products in a separate secured vault to which
6the other licensee does not have access or all licensees
7sharing a vault share more than 50% of the same ownership.
8    (f) A dispensing organization shall provide additional
9security as needed and in a manner appropriate for the
10community where it operates.
11    (g) Restricted access areas.
12        (1) All restricted access areas must be identified by
13    the posting of a sign that is a minimum of 12 inches by 12
14    inches and that states "Do Not Enter - Restricted Access
15    Area - Authorized Personnel Only" in lettering no smaller
16    than one inch in height.
17        (2) All restricted access areas shall be clearly
18    described in the floor plan of the premises, in the form
19    and manner determined by the Department, reflecting walls,
20    partitions, counters, and all areas of entry and exit. The
21    floor plan shall show all storage, disposal, and retail
22    sales areas.
23        (3) All restricted access areas must be secure, with
24    locking devices that prevent access from the limited access
25    areas.
26    (h) Security and alarm.

 

 

SB1557 Enrolled- 245 -LRB101 08168 SMS 53234 b

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

 

 

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

 

 

SB1557 Enrolled- 247 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 248 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 249 -LRB101 08168 SMS 53234 b

1    taken place. Exported video shall also have the ability to
2    be saved in an industry standard file format that can be
3    played on a standard computer operating system. All
4    recordings shall be erased or destroyed before disposal;
5        (9) The video surveillance system shall be operational
6    during a power outage with a 4-hour minimum battery backup;
7        (10) A video camera or cameras recording at each
8    point-of-sale location allowing for the identification of
9    the dispensing organization agent distributing the
10    cannabis and any purchaser. The camera or cameras shall
11    capture the sale, the individuals and the computer monitors
12    used for the sale;
13        (11) A failure notification system that provides an
14    audible and visual notification of any failure in the
15    electronic video monitoring system; and
16        (12) All electronic video surveillance monitoring must
17    record at least the equivalent of 8 frames per second and
18    be available as recordings to the Department and the
19    Department of State Police 24 hours a day via a secure
20    web-based portal with reverse functionality.
21    (j) The requirements contained in this Act are minimum
22requirements for operating a dispensing organization. The
23Department may establish additional requirements by rule.
24(Source: P.A. 101-27, eff. 6-25-19.)
 
25    (410 ILCS 705/15-145)

 

 

SB1557 Enrolled- 250 -LRB101 08168 SMS 53234 b

1    Sec. 15-145. Grounds for discipline.
2    (a) The Department may deny issuance, refuse to renew or
3restore, or may reprimand, place on probation, suspend, revoke,
4or take other disciplinary or nondisciplinary action against
5any license or agent identification card or may impose a fine
6for any of the following:
7        (1) Material misstatement in furnishing information to
8    the Department;
9        (2) Violations of this Act or rules;
10        (3) Obtaining an authorization or license by fraud or
11    misrepresentation;
12        (4) A pattern of conduct that demonstrates
13    incompetence or that the applicant has engaged in conduct
14    or actions that would constitute grounds for discipline
15    under this the Act;
16        (5) Aiding or assisting another person in violating any
17    provision of this Act or rules;
18        (6) Failing to respond to a written request for
19    information by the Department within 30 days;
20        (7) Engaging in unprofessional, dishonorable, or
21    unethical conduct of a character likely to deceive,
22    defraud, or harm the public;
23        (8) Adverse action by another United States
24    jurisdiction or foreign nation;
25        (9) A finding by the Department that the licensee,
26    after having his or her license placed on suspended or

 

 

SB1557 Enrolled- 251 -LRB101 08168 SMS 53234 b

1    probationary status, has violated the terms of the
2    suspension or probation;
3        (10) Conviction, entry of a plea of guilty, nolo
4    contendere, or the equivalent in a State or federal court
5    of a principal officer or agent-in-charge of a felony
6    offense in accordance with Sections 2105-131, 2105-135,
7    and 2105-205 of the Department of Professional Regulation
8    Law of the Civil Administrative Code of Illinois;
9        (11) Excessive use of or addiction to alcohol,
10    narcotics, stimulants, or any other chemical agent or drug;
11        (12) A finding by the Department of a discrepancy in a
12    Department audit of cannabis;
13        (13) A finding by the Department of a discrepancy in a
14    Department audit of capital or funds;
15        (14) A finding by the Department of acceptance of
16    cannabis from a source other than an Adult Use Cultivation
17    Center, craft grower, infuser, or transporting
18    organization licensed by the Department of Agriculture, or
19    a dispensing organization licensed by the Department;
20        (15) An inability to operate using reasonable
21    judgment, skill, or safety due to physical or mental
22    illness or other impairment or disability, including,
23    without limitation, deterioration through the aging
24    process or loss of motor skills or mental incompetence;
25        (16) Failing to report to the Department within the
26    time frames established, or if not identified, 14 days, of

 

 

SB1557 Enrolled- 252 -LRB101 08168 SMS 53234 b

1    any adverse action taken against the dispensing
2    organization or an agent by a licensing jurisdiction in any
3    state or any territory of the United States or any foreign
4    jurisdiction, any governmental agency, any law enforcement
5    agency or any court defined in this Section;
6        (17) Any violation of the dispensing organization's
7    policies and procedures submitted to the Department
8    annually as a condition for licensure;
9        (18) Failure to inform the Department of any change of
10    address within 10 business days;
11        (19) Disclosing customer names, personal information,
12    or protected health information in violation of any State
13    or federal law;
14        (20) Operating a dispensary before obtaining a license
15    from the Department;
16        (21) Performing duties authorized by this Act prior to
17    receiving a license to perform such duties;
18        (22) Dispensing cannabis when prohibited by this Act or
19    rules;
20        (23) Any fact or condition that, if it had existed at
21    the time of the original application for the license, would
22    have warranted the denial of the license;
23        (24) Permitting a person without a valid agent
24    identification card to perform licensed activities under
25    this Act;
26        (25) Failure to assign an agent-in-charge as required

 

 

SB1557 Enrolled- 253 -LRB101 08168 SMS 53234 b

1    by this Article;
2        (26) Failure to provide the training required by
3    paragraph (3) of subsection (i) of Section 15-40 within the
4    provided timeframe;
5        (27) Personnel insufficient in number or unqualified
6    in training or experience to properly operate the
7    dispensary business;
8        (28) Any pattern of activity that causes a harmful
9    impact on the community; and
10        (29) Failing to prevent diversion, theft, or loss of
11    cannabis.
12    (b) All fines and fees imposed under this Section shall be
13paid within 60 days after the effective date of the order
14imposing the fine or as otherwise specified in the order.
15    (c) A circuit court order establishing that an
16agent-in-charge or principal officer holding an agent
17identification card is subject to involuntary admission as that
18term is defined in Section 1-119 or 1-119.1 of the Mental
19Health and Developmental Disabilities Code shall operate as a
20suspension of that card.
21(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)
 
22    (410 ILCS 705/15-155)
23    Sec. 15-155. Unlicensed practice; violation; civil penalty
24Consent to administrative supervision order.
25    (a) In addition to any other penalty provided by law, any

 

 

SB1557 Enrolled- 254 -LRB101 08168 SMS 53234 b

1person who practices, offers to practice, attempts to practice,
2or holds oneself out to practice as a licensed dispensing
3organization owner, principal officer, agent-in-charge, or
4agent without being licensed under this Act shall, in addition
5to any other penalty provided by law, pay a civil penalty to
6the Department of Financial and Professional Regulation in an
7amount not to exceed $10,000 for each offense as determined by
8the Department. The civil penalty shall be assessed by the
9Department after a hearing is held in accordance with the
10provisions set forth in this Act regarding the provision of a
11hearing for the discipline of a licensee.
12    (b) The Department has the authority and power to
13investigate any and all unlicensed activity.
14    (c) The civil penalty shall be paid within 60 days after
15the effective date of the order imposing the civil penalty or
16in accordance with the order imposing the civil penalty. The
17order shall constitute a judgment and may be filed and
18execution had thereon in the same manner as any judgment from
19any court of this State.
20In appropriate cases, the Department may resolve a complaint
21against a licensee or agent through the issuance of a consent
22order for administrative supervision. A license or agent
23subject to a consent order shall be considered by the
24Department to hold a license or registration in good standing.
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

SB1557 Enrolled- 255 -LRB101 08168 SMS 53234 b

1    (410 ILCS 705/20-10)
2    Sec. 20-10. Early Approval of Adult Use Cultivation Center
3License.
4    (a) Any medical cannabis cultivation center registered and
5in good standing 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 but no
8later than 180 days from the effective date of this Act, apply
9to the Department of Agriculture for an Early Approval Adult
10Use Cultivation Center License to produce cannabis and
11cannabis-infused products at its existing facilities as of the
12effective date of this Act.
13    (b) A medical cannabis cultivation center seeking issuance
14of an Early Approval Adult Use Cultivation Center License shall
15submit an application on forms provided by the Department of
16Agriculture. The application must meet or include the following
17qualifications:
18        (1) Payment of a nonrefundable application fee of
19    $100,000 to be deposited into the Cannabis Regulation Fund;
20        (2) Proof of registration as a medical cannabis
21    cultivation center that is in good standing;
22        (3) Submission of the application by the same person or
23    entity that holds the medical cannabis cultivation center
24    registration;
25        (4) Certification that the applicant will comply with
26    the requirements of Section 20-30;

 

 

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

 

 

SB1557 Enrolled- 257 -LRB101 08168 SMS 53234 b

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

 

 

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1        Center License to avoid a penalty.
2    (c) An Early Approval Adult Use Cultivation Center License
3is valid until March 31, 2021. A cultivation center that
4obtains an Early Approval Adult Use Cultivation Center License
5shall receive written or electronic notice 90 days before the
6expiration of the license that the license will expire, and
7inform the license holder that it may renew its Early Approval
8Adult Use Cultivation Center License. The Department of
9Agriculture shall grant a renewal of an Early Approval Adult
10Use Cultivation Center License within 60 days of submission of
11an application if:
12        (1) the cultivation center submits an application and
13    the required renewal fee of $100,000 for an Early Approval
14    Adult Use Cultivation Center License;
15        (2) the Department of Agriculture has not suspended the
16    license of the cultivation center or suspended or revoked
17    the license for violating this Act or rules adopted under
18    this Act; and
19        (3) the cultivation center has completed a Social
20    Equity Inclusion Plan as required by item (9) of subsection
21    (b) of this Section.
22    (c-5) The Early Approval Adult Use Cultivation Center
23License renewed pursuant to subsection (c) of this Section
24shall expire March 31, 2022. The Early Approval Adult Use
25Cultivation Center Licensee 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 apply for an Adult Use Cultivation Center License.
3The Department of Agriculture shall grant an Adult Use
4Dispensing Organization License within 60 days of an
5application being deemed complete if the applicant meets all of
6the criteria in Section 20-21.
7    (d) The license fee required by paragraph (1) of subsection
8(c) of this Section shall be in addition to any license fee
9required for the renewal of a registered medical cannabis
10cultivation center license that expires during the effective
11period of the Early Approval Adult Use Cultivation Center
12License.
13    (e) Applicants must submit all required information,
14including the requirements in subsection (b) of this Section,
15to the Department of Agriculture. Failure by an applicant to
16submit all required information may result in the application
17being disqualified.
18    (f) If the Department of Agriculture receives an
19application with missing information, the Department may issue
20a deficiency notice to the applicant. The applicant shall have
2110 calendar days from the date of the deficiency notice to
22submit complete information. Applications that are still
23incomplete after this opportunity to cure may be disqualified.
24    (g) If an applicant meets all the requirements of
25subsection (b) of this Section, the Department of Agriculture
26shall issue the Early Approval Adult Use Cultivation Center

 

 

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

 

 

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

 

 

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1Approval Adult Use Cultivation Center License.
2    (n) All fees or fines collected from an Early Approval
3Adult Use Cultivation Center License holder as a result of a
4disciplinary action in the enforcement of this Act shall be
5deposited into the Cannabis Regulation Fund.
6(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/20-15)
8    Sec. 20-15. Conditional Adult Use Cultivation Center
9application.
10    (a) If the Department of Agriculture makes available
11additional cultivation center licenses pursuant to Section
1220-5, applicants for a Conditional Adult Use Cultivation Center
13License shall electronically submit the following in such form
14as the Department of Agriculture may direct:
15        (1) the nonrefundable application fee set by rule by
16    the Department of Agriculture, to be deposited into the
17    Cannabis Regulation Fund;
18        (2) the legal name of the cultivation center;
19        (3) the proposed physical address of the cultivation
20    center;
21        (4) the name, address, social security number, and date
22    of birth of each principal officer and board member of the
23    cultivation center; each principal officer and board
24    member shall be at least 21 years of age;
25        (5) the details of any administrative or judicial

 

 

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

 

 

SB1557 Enrolled- 264 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 265 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 266 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 267 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 268 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 269 -LRB101 08168 SMS 53234 b

1    (b) Applicants must submit all required information,
2including the information required in Section 20-10, to the
3Department of Agriculture. Failure by an applicant to submit
4all required information may result in the application being
5disqualified.
6    (c) If the Department of Agriculture receives an
7application with missing information, the Department of
8Agriculture may issue a deficiency notice to the applicant. The
9applicant shall have 10 calendar days from the date of the
10deficiency notice to resubmit the incomplete information.
11Applications that are still incomplete after this opportunity
12to cure will not be scored and will be disqualified.
13    (e) A cultivation center that is awarded a Conditional
14Adult Use Cultivation Center License pursuant to the criteria
15in Section 20-20 shall not grow, purchase, possess, or sell
16cannabis or cannabis-infused products until the person has
17received an Adult Use Cultivation Center License issued by the
18Department of Agriculture pursuant to Section 20-21 of this
19Act.
20(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)
 
21    (410 ILCS 705/20-20)
22    Sec. 20-20. Conditional Adult Use License scoring
23applications.
24    (a) The Department of Agriculture shall by rule develop a
25system to score cultivation center applications to

 

 

SB1557 Enrolled- 270 -LRB101 08168 SMS 53234 b

1administratively rank applications based on the clarity,
2organization, and quality of the applicant's responses to
3required information. Applicants shall be awarded points based
4on the following categories:
5        (1) Suitability of the proposed facility;
6        (2) Suitability of employee training plan;
7        (3) Security and recordkeeping;
8        (4) Cultivation plan;
9        (5) Product safety and labeling plan;
10        (6) Business plan;
11        (7) The applicant's status as a Social Equity
12    Applicant, which shall constitute no less than 20% of total
13    available points;
14        (8) Labor and employment practices, which shall
15    constitute no less than 2% of total available points;
16        (9) Environmental plan as described in paragraphs
17    (18), (21), (22), and (23) of subsection (a) of Section
18    20-15;
19        (10) The applicant is 51% or more owned and controlled
20    by an individual or individuals who have been an Illinois
21    resident for the past 5 years as proved by tax records or 2
22    of the following: ;
23            (A) a signed lease agreement that includes the
24        applicant's name;
25            (B) a property deed that includes the applicant's
26        name;

 

 

SB1557 Enrolled- 271 -LRB101 08168 SMS 53234 b

1            (C) school records;
2            (D) a voter registration card;
3            (E) an Illinois driver's license, an Illinois
4        Identification Card, or an Illinois Person with a
5        Disability Identification Card;
6            (F) a paycheck stub;
7            (G) a utility bill; or
8            (H) any other proof of residency or other
9        information necessary to establish residence as
10        provided by rule;
11        (11) The applicant is 51% or more controlled and owned
12    by an individual or individuals who meet the qualifications
13    of a veteran as defined by Section 45-57 of the Illinois
14    Procurement Code;
15        (12) a diversity plan that includes a narrative of not
16    more than 2,500 words that establishes a goal of diversity
17    in ownership, management, employment, and contracting to
18    ensure that diverse participants and groups are afforded
19    equality of opportunity; and
20        (13) Any other criteria the Department of Agriculture
21    may set by rule for points.
22    (b) The Department may also award bonus points for the
23applicant's plan to engage with the community. Bonus points
24will only be awarded if the Department receives applications
25that receive an equal score for a particular region.
26    (c) Should the applicant be awarded a cultivation center

 

 

SB1557 Enrolled- 272 -LRB101 08168 SMS 53234 b

1license, the information and plans that an applicant provided
2in its application, including any plans submitted for the
3acquiring of bonus points, becomes a mandatory condition of the
4permit. Any variation from or failure to perform such plans may
5result in discipline, including the revocation or nonrenewal of
6a license.
7    (d) Should the applicant be awarded a cultivation center
8license, it shall pay a fee of $100,000 prior to receiving the
9license, to be deposited into the Cannabis Regulation Fund. The
10Department of Agriculture may by rule adjust the fee in this
11Section after January 1, 2021.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/20-30)
14    Sec. 20-30. Cultivation center requirements; prohibitions.
15    (a) The operating documents of a cultivation center shall
16include procedures for the oversight of the cultivation center
17a cannabis plant monitoring system including a physical
18inventory recorded weekly, accurate recordkeeping, and a
19staffing plan.
20    (b) A cultivation center shall implement a security plan
21reviewed by the Department of State Police that includes, but
22is not limited to: facility access controls, perimeter
23intrusion detection systems, personnel identification systems,
2424-hour surveillance system to monitor the interior and
25exterior of the cultivation center facility and accessibility

 

 

SB1557 Enrolled- 273 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 274 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 275 -LRB101 08168 SMS 53234 b

1more than 3 cultivation centers licensed under this Article.
2Further, no person or entity that is employed by, an agent of,
3has a contract to receive payment in any form from a
4cultivation center, is a principal officer of a cultivation
5center, or entity controlled by or affiliated with a principal
6officer of a cultivation shall hold any legal, equitable,
7ownership, or beneficial interest, directly or indirectly, in a
8cultivation that would result in the person or entity owning or
9controlling in combination with any cultivation center,
10principal officer of a cultivation center, or entity controlled
11or affiliated with a principal officer of a cultivation center
12by which he, she, or it is employed, is an agent of, or
13participates in the management of, more than 3 cultivation
14center licenses.
15    (k) A cultivation center may not contain more than 210,000
16square feet of canopy space for plants in the flowering stage
17for cultivation of adult use cannabis as provided in this Act.
18    (l) A cultivation center may process cannabis, cannabis
19concentrates, and cannabis-infused products.
20    (m) Beginning July 1, 2020, a cultivation center shall not
21transport cannabis or cannabis-infused products to a craft
22grower, dispensing organization, infuser organization, or
23laboratory licensed under this Act, unless it has obtained a
24transporting organization license.
25    (n) It is unlawful for any person having a cultivation
26center license or any officer, associate, member,

 

 

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

 

 

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1requirements or prohibitions set by administrative rule of the
2Department of Agriculture.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/25-1)
5    (Section scheduled to be repealed on July 1, 2026)
6    Sec. 25-1. Definitions. In this Article:
7    "Board" means the Illinois Community College Board.
8    "Career in Cannabis Certificate" or "Certificate" means
9the certification awarded to a community college student who
10completes a prescribed course of study in cannabis and cannabis
11business industry related classes and curriculum at a community
12college awarded a Community College Cannabis Vocational Pilot
13Program license.
14    "Community college" means a public community college
15organized under the Public Community College Act.
16    "Department" means the Department of Agriculture.
17    "Licensee" means a community college awarded a Community
18College Cannabis Vocational Pilot Program license under this
19Article.
20    "Program" means the Community College Cannabis Vocational
21Pilot Program.
22    "Program license" means a Community College Cannabis
23Vocational Pilot Program license issued to a community college
24under this Article.
25(Source: P.A. 101-27, eff. 6-25-19; revised 8-16-19.)
 

 

 

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1    (410 ILCS 705/25-10)
2    (Section scheduled to be repealed on July 1, 2026)
3    Sec. 25-10. Issuance of Community College Cannabis
4Vocational Pilot Program licenses.
5    (a) The Department shall issue rules regulating the
6selection criteria for applicants by January 1, 2020. The
7Department shall make the application for a Program license
8available no later than February 1, 2020, and shall require
9that applicants submit the completed application no later than
10July 1, 2020. If the Department issues fewer than 8 Program
11licenses by September 1, 2020, the Department may accept
12applications at a future date as prescribed by rule.
13    (b) The Department shall by rule develop a system to score
14Program licenses to administratively rank applications based
15on the clarity, organization, and quality of the applicant's
16responses to required information. Applicants shall be awarded
17points that are based on or that meet the following categories:
18        (1) Geographic diversity of the applicants;
19        (2) Experience and credentials of the applicant's
20    faculty;
21        (3) At least 5 Program license awardees must have a
22    student population that is more than 50% low-income in each
23    of the past 4 years;
24        (4) Security plan, including a requirement that all
25    cannabis plants be in an enclosed, locked facility;

 

 

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1        (5) Curriculum plan, including processing and testing
2    curriculum for the Career in Cannabis Certificate;
3        (6) Career advising and placement plan for
4    participating students; and
5        (7) Any other criteria the Department may set by rule.
6(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/30-5)
8    Sec. 30-5. Issuance of licenses.
9    (a) The Department of Agriculture shall issue up to 40
10craft grower licenses by July 1, 2020. Any person or entity
11awarded a license pursuant to this subsection shall only hold
12one craft grower license and may not sell that license until
13after December 21, 2021.
14    (b) By December 21, 2021, the Department of Agriculture
15shall issue up to 60 additional craft grower licenses. Any
16person or entity awarded a license pursuant to this subsection
17shall not hold more than 2 craft grower licenses. The person or
18entity awarded a license pursuant to this subsection or
19subsection (a) of this Section may sell its craft grower
20license subject to the restrictions of this Act or as
21determined by administrative rule. Prior to issuing such
22licenses, the Department may adopt rules through emergency
23rulemaking in accordance with subsection (gg) of Section 5-45
24of the Illinois Administrative Procedure Act, to modify or
25raise the number of craft grower licenses assigned to each

 

 

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1region and modify or change the licensing application process
2to reduce or eliminate barriers. The General Assembly finds
3that the adoption of rules to regulate cannabis use is deemed
4an emergency and necessary for the public interest, safety, and
5welfare. In determining whether to exercise the authority
6granted by this subsection, the Department of Agriculture must
7consider the following factors:
8        (1) the percentage of cannabis sales occurring in
9    Illinois not in the regulated market using data from the
10    Substance Abuse and Mental Health Services Administration,
11    National Survey on Drug Use and Health, Illinois Behavioral
12    Risk Factor Surveillance System, and tourism data from the
13    Illinois Office of Tourism to ascertain total cannabis
14    consumption in Illinois compared to the amount of sales in
15    licensed dispensing organizations;
16        (2) whether there is an adequate supply of cannabis and
17    cannabis-infused products to serve registered medical
18    cannabis patients;
19        (3) whether there is an adequate supply of cannabis and
20    cannabis-infused products to serve purchasers;
21        (4) whether there is an oversupply of cannabis in
22    Illinois leading to trafficking of cannabis to states where
23    the sale of cannabis is not permitted by law;
24        (5) population increases or shifts;
25        (6) the density of craft growers in any area of the
26    State;

 

 

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1        (7) perceived security risks of increasing the number
2    or location of craft growers;
3        (8) the past safety record of craft growers;
4        (9) the Department of Agriculture's capacity to
5    appropriately regulate additional licensees;
6        (10) the findings and recommendations from the
7    disparity and availability study commissioned by the
8    Illinois Cannabis Regulation Oversight Officer to reduce
9    or eliminate any identified barriers to entry in the
10    cannabis industry; and
11        (11) any other criteria the Department of Agriculture
12    deems relevant.
13    (c) After January 1, 2022, the Department of Agriculture
14may by rule modify or raise the number of craft grower licenses
15assigned to each region, and modify or change the licensing
16application process to reduce or eliminate barriers based on
17the criteria in subsection (b). At no time may the number of
18craft grower licenses exceed 150. Any person or entity awarded
19a license pursuant to this subsection shall not hold more than
203 craft grower licenses. A person or entity awarded a license
21pursuant to this subsection or subsection (a) or subsection (b)
22of this Section may sell its craft grower license or licenses
23subject to the restrictions of this Act or as determined by
24administrative rule.
25(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/30-10)
2    Sec. 30-10. Application.
3    (a) When applying for a license, the applicant shall
4electronically submit the following in such form as the
5Department of Agriculture may direct:
6        (1) the nonrefundable application fee of $5,000 to be
7    deposited into the Cannabis Regulation Fund, or another
8    amount as the Department of Agriculture may set by rule
9    after January 1, 2021;
10        (2) the legal name of the craft grower;
11        (3) the proposed physical address of the craft grower;
12        (4) the name, address, social security number, and date
13    of birth of each principal officer and board member of the
14    craft grower; each principal officer and board member shall
15    be at least 21 years of age;
16        (5) the details of any administrative or judicial
17    proceeding in which any of the principal officers or board
18    members of the craft grower (i) pled guilty, were
19    convicted, were fined, or had a registration or license
20    suspended or revoked or (ii) managed or served on the board
21    of a business or non-profit organization that pled guilty,
22    was convicted, was fined, or had a registration or license
23    suspended or revoked;
24        (6) proposed operating bylaws that include procedures
25    for the oversight of the craft grower, including the
26    development and implementation of a plant monitoring

 

 

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

 

 

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1    where cannabis will be grown, harvested, manufactured,
2    packaged, or otherwise prepared for distribution to a
3    dispensing organization or other cannabis business
4    establishment;
5        (13) a survey of the enclosed, locked facility,
6    including the space used for cultivation;
7        (14) cultivation, processing, inventory, and packaging
8    plans;
9        (15) a description of the applicant's experience with
10    agricultural cultivation techniques and industry
11    standards;
12        (16) 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        (17) the identity of every person having a financial or
16    voting interest of 5% or greater in the craft grower
17    operation, whether a trust, corporation, partnership,
18    limited liability company, or sole proprietorship,
19    including the name and address of each person;
20        (18) a plan describing how the craft grower will
21    address each of the following:
22            (i) energy needs, including estimates of monthly
23        electricity and gas usage, to what extent it will
24        procure energy from a local utility or from on-site
25        generation, and if it has or will adopt a sustainable
26        energy use and energy conservation policy;

 

 

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1            (ii) water needs, including estimated water draw
2        and if it has or will adopt a sustainable water use and
3        water conservation policy; and
4            (iii) waste management, including if it has or will
5        adopt a waste reduction policy;
6        (19) a recycling plan:
7            (A) Purchaser packaging, including cartridges,
8        shall be accepted by the applicant and recycled.
9            (B) Any recyclable waste generated by the craft
10        grower facility shall be recycled per applicable State
11        and local laws, ordinances, and rules.
12            (C) Any cannabis waste, liquid waste, or hazardous
13        waste shall be disposed of in accordance with 8 Ill.
14        Adm. Code 1000.460, except, to the greatest extent
15        feasible, all cannabis plant waste will be rendered
16        unusable by grinding and incorporating the cannabis
17        plant waste with compostable mixed waste to be disposed
18        of in accordance with 8 Ill. Adm. Code 1000.460(g)(1); .
19        (20) a commitment to comply with local waste
20    provisions: a craft grower facility must remain in
21    compliance with applicable State and federal environmental
22    requirements, including, but not limited to:
23            (A) storing, securing, and managing all
24        recyclables and waste, including organic waste
25        composed of or containing finished cannabis and
26        cannabis products, in accordance with applicable State

 

 

SB1557 Enrolled- 286 -LRB101 08168 SMS 53234 b

1        and local laws, ordinances, and rules; and
2            (B) disposing Disposing liquid waste containing
3        cannabis or byproducts of cannabis processing in
4        compliance with all applicable State and federal
5        requirements, including, but not limited to, the
6        cannabis cultivation facility's permits under Title X
7        of the Environmental Protection Act; .
8        (21) a commitment to a technology standard for resource
9    efficiency of the craft grower facility.
10            (A) A craft grower facility commits to use
11        resources efficiently, including energy and water. For
12        the following, a cannabis cultivation facility commits
13        to meet or exceed the technology standard identified in
14        paragraphs (i), (ii), (iii), and (iv), which may be
15        modified by rule:
16                (i) lighting systems, including light bulbs;
17                (ii) HVAC system;
18                (iii) water application system to the crop;
19            and
20                (iv) filtration system for removing
21            contaminants from wastewater.
22            (B) Lighting. The Lighting Power Densities (LPD)
23        for cultivation space commits to not exceed an average
24        of 36 watts per gross square foot of active and growing
25        space canopy, or all installed lighting technology
26        shall meet a photosynthetic photon efficacy (PPE) of no

 

 

SB1557 Enrolled- 287 -LRB101 08168 SMS 53234 b

1        less than 2.2 micromoles per joule fixture and shall be
2        featured on the DesignLights Consortium (DLC)
3        Horticultural Specification Qualified Products List
4        (QPL). In the event that DLC requirement for minimum
5        efficacy exceeds 2.2 micromoles per joule fixture,
6        that PPE shall become the new standard.
7            (C) HVAC.
8                (i) For cannabis grow operations with less
9            than 6,000 square feet of canopy, the licensee
10            commits that all HVAC units will be
11            high-efficiency ductless split HVAC units, or
12            other more energy efficient equipment.
13                (ii) For cannabis grow operations with 6,000
14            square feet of canopy or more, the licensee commits
15            that all HVAC units will be variable refrigerant
16            flow HVAC units, or other more energy efficient
17            equipment.
18            (D) Water application.
19                (i) The craft grower facility commits to use
20            automated watering systems, including, but not
21            limited to, drip irrigation and flood tables, to
22            irrigate cannabis crop.
23                (ii) The craft grower facility commits to
24            measure runoff from watering events and report
25            this volume in its water usage plan, and that on
26            average, watering events shall have no more than

 

 

SB1557 Enrolled- 288 -LRB101 08168 SMS 53234 b

1            20% of runoff of water.
2            (E) Filtration. The craft grower commits that HVAC
3        condensate, dehumidification water, excess runoff, and
4        other wastewater produced by the craft grower facility
5        shall be captured and filtered to the best of the
6        facility's ability to achieve the quality needed to be
7        reused in subsequent watering rounds.
8            (F) Reporting energy use and efficiency as
9        required by rule; and
10        (22) any other information required by rule.
11    (b) Applicants must submit all required information,
12including the information required in Section 30-15, to the
13Department of Agriculture. Failure by an applicant to submit
14all required information may result in the application being
15disqualified.
16    (c) If the Department of Agriculture receives an
17application with missing information, the Department of
18Agriculture may issue a deficiency notice to the applicant. The
19applicant shall have 10 calendar days from the date of the
20deficiency notice to resubmit the incomplete information.
21Applications that are still incomplete after this opportunity
22to cure will not be scored and will be disqualified.
23(Source: P.A. 101-27, eff. 6-25-19; revised 9-4-19.)
 
24    (410 ILCS 705/30-15)
25    Sec. 30-15. Scoring applications.

 

 

SB1557 Enrolled- 289 -LRB101 08168 SMS 53234 b

1    (a) The Department of Agriculture shall by rule develop a
2system to score craft grower applications to administratively
3rank applications based on the clarity, organization, and
4quality of the applicant's responses to required information.
5Applicants shall be awarded points based on the following
6categories:
7        (1) Suitability of the proposed facility;
8        (2) Suitability of the employee training plan;
9        (3) Security and recordkeeping;
10        (4) Cultivation plan;
11        (5) Product safety and labeling plan;
12        (6) Business plan;
13        (7) The applicant's status as a Social Equity
14    Applicant, which shall constitute no less than 20% of total
15    available points;
16        (8) Labor and employment practices, which shall
17    constitute no less than 2% of total available points;
18        (9) Environmental plan as described in paragraphs
19    (18), (19), (20), and (21) of subsection (a) of Section
20    30-10;
21        (10) 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 or 2
24    of the following: ;
25            (A) a signed lease agreement that includes the
26        applicant's name;

 

 

SB1557 Enrolled- 290 -LRB101 08168 SMS 53234 b

1            (B) a property deed that includes the applicant's
2        name;
3            (C) school records;
4            (D) a voter registration card;
5            (E) an Illinois driver's license, an Illinois
6        Identification Card, or an Illinois Person with a
7        Disability Identification Card;
8            (F) a paycheck stub;
9            (G) a utility bill; or
10            (H) any other proof of residency or other
11        information necessary to establish residence as
12        provided by rule;
13        (11) The applicant is 51% or more controlled and owned
14    by an individual or individuals who meet the qualifications
15    of a veteran as defined in Section 45-57 of the Illinois
16    Procurement Code;
17        (12) A diversity plan that includes a narrative of not
18    more than 2,500 words that establishes a goal of diversity
19    in ownership, management, employment, and contracting to
20    ensure that diverse participants and groups are afforded
21    equality of opportunity; and
22        (13) Any other criteria the Department of Agriculture
23    may set by rule for points.
24    (b) The Department may also award up to 2 bonus points for
25the applicant's plan to engage with the community. The
26applicant may demonstrate a desire to engage with its community

 

 

SB1557 Enrolled- 291 -LRB101 08168 SMS 53234 b

1by participating in one or more of, but not limited to, the
2following actions: (i) establishment of an incubator program
3designed to increase participation in the cannabis industry by
4persons who would qualify as Social Equity Applicants; (ii)
5providing financial assistance to substance abuse treatment
6centers; (iii) educating children and teens about the potential
7harms of cannabis use; or (iv) other measures demonstrating a
8commitment to the applicant's community. Bonus points will only
9be awarded if the Department receives applications that receive
10an equal score for a particular region.
11    (c) Should the applicant be awarded a craft grower license,
12the information and plans that an applicant provided in its
13application, including any plans submitted for the acquiring of
14bonus points, shall be a mandatory condition of the license.
15Any variation from or failure to perform such plans may result
16in discipline, including the revocation or nonrenewal of a
17license.
18    (d) Should the applicant be awarded a craft grower license,
19the applicant shall pay a prorated fee of $40,000 prior to
20receiving the license, to be deposited into the Cannabis
21Regulation Fund. The Department of Agriculture may by rule
22adjust the fee in this Section after January 1, 2021.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/30-30)
25    Sec. 30-30. Craft grower requirements; prohibitions.

 

 

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1    (a) The operating documents of a craft grower shall include
2procedures for the oversight of the craft grower, a cannabis
3plant monitoring system including a physical inventory
4recorded weekly, accurate recordkeeping, and a staffing plan.
5    (b) A craft grower shall implement a security plan reviewed
6by the Department of State Police that includes, but is not
7limited to: facility access controls, perimeter intrusion
8detection systems, personnel identification systems, and a
924-hour surveillance system to monitor the interior and
10exterior of the craft grower facility and that is accessible to
11authorized law enforcement and the Department of Agriculture in
12real time.
13    (c) All cultivation of cannabis by a craft grower must take
14place in an enclosed, locked facility at the physical address
15provided to the Department of Agriculture during the licensing
16process. The craft grower location shall only be accessed by
17the agents working for the craft grower, the Department of
18Agriculture staff performing inspections, the Department of
19Public Health staff performing inspections, State and local law
20enforcement or other emergency personnel, contractors working
21on jobs unrelated to cannabis, such as installing or
22maintaining security devices or performing electrical wiring,
23transporting organization agents as provided in this Act, or
24participants in the incubator program, individuals in a
25mentoring or educational program approved by the State, or
26other individuals as provided by rule. However, if a craft

 

 

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

 

 

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

 

 

SB1557 Enrolled- 295 -LRB101 08168 SMS 53234 b

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

 

 

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1it is employed, is an agent of, or participates in the
2management of more than 3 craft grower licenses.
3    (n) It is unlawful for any person having a craft grower
4license or any officer, associate, member, representative, or
5agent of the licensee to offer or deliver money, or anything
6else of value, directly or indirectly, to any person having an
7Early Approval Adult Use Dispensing Organization License, a
8Conditional Adult Use Dispensing Organization License, an
9Adult Use Dispensing Organization License, or a medical
10cannabis dispensing organization license issued under the
11Compassionate Use of Medical Cannabis Pilot Program Act, or to
12any person connected with or in any way representing, or to any
13member of the family of, the person holding an Early Approval
14Adult Use Dispensing Organization License, a Conditional Adult
15Use Dispensing Organization License, an Adult Use Dispensing
16Organization License, or a medical cannabis dispensing
17organization license issued under the Compassionate Use of
18Medical Cannabis Pilot Program Act, or to any stockholders in
19any corporation engaged in the retail sale of cannabis, or to
20any officer, manager, agent, or representative of the Early
21Approval Adult Use Dispensing Organization License, a
22Conditional Adult Use Dispensing Organization License, an
23Adult Use Dispensing Organization License, or a medical
24cannabis dispensing organization license issued under the
25Compassionate Use of Medical Cannabis Pilot Program Act to
26obtain preferential placement within the dispensing

 

 

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1organization, including, without limitation, on shelves and in
2display cases where purchasers can view products, or on the
3dispensing organization's website.
4    (o) A craft grower shall not be located within 1,500 feet
5of another craft grower or a cultivation center.
6    (p) A craft graft grower may process cannabis, cannabis
7concentrates, and cannabis-infused products.
8    (q) A craft grower must comply with any other requirements
9or prohibitions set by administrative rule of the Department of
10Agriculture.
11(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)
 
12    (410 ILCS 705/35-5)
13    Sec. 35-5. Issuance of licenses.
14    (a) The Department of Agriculture shall issue up to 40
15infuser licenses through a process provided for in this Article
16no later than July 1, 2020.
17    (b) The Department of Agriculture shall make the
18application for infuser licenses available on January 7, 2020,
19or if that date falls on a weekend or holiday, the business day
20immediately succeeding the weekend or holiday and every January
217 or succeeding business day thereafter, and shall receive such
22applications no later than March 15, 2020, or, if that date
23falls on a weekend or holiday, the business day immediately
24succeeding the weekend or holiday and every March 15 or
25succeeding business day thereafter.

 

 

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1    (c) By December 21, 2021, the Department of Agriculture may
2issue up to 60 additional infuser licenses. Prior to issuing
3such licenses, the Department may adopt rules through emergency
4rulemaking in accordance with subsection (gg) of Section 5-45
5of the Illinois Administrative Procedure Act, to modify or
6raise the number of infuser licenses and modify or change the
7licensing application process to reduce or eliminate barriers.
8The General Assembly finds that the adoption of rules to
9regulate cannabis use is deemed an emergency and necessary for
10the public interest, safety, and welfare.
11    In determining whether to exercise the authority granted by
12this subsection, the Department of Agriculture must consider
13the following factors:
14        (1) the percentage of cannabis sales occurring in
15    Illinois not in the regulated market using data from the
16    Substance Abuse and Mental Health Services Administration,
17    National Survey on Drug Use and Health, Illinois Behavioral
18    Risk Factor Surveillance System, and tourism data from the
19    Illinois Office of Tourism to ascertain total cannabis
20    consumption in Illinois compared to the amount of sales in
21    licensed dispensing organizations;
22        (2) whether there is an adequate supply of cannabis and
23    cannabis-infused products to serve registered medical
24    cannabis patients;
25        (3) whether there is an adequate supply of cannabis and
26    cannabis-infused products to serve sere purchasers; :

 

 

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1        (4) whether there is an oversupply of cannabis in
2    Illinois leading to trafficking of cannabis to any other
3    state;
4        (5) population increases or shifts;
5        (6) changes to federal law;
6        (7) perceived security risks of increasing the number
7    or location of infuser organizations;
8        (8) the past security records of infuser
9    organizations;
10        (9) the Department of Agriculture's capacity to
11    appropriately regulate additional licenses;
12        (10) the findings and recommendations from the
13    disparity and availability study commissioned by the
14    Illinois Cannabis Regulation Oversight Officer to reduce
15    or eliminate any identified barriers to entry in the
16    cannabis industry; and
17        (11) any other criteria the Department of Agriculture
18    deems relevant.
19    (d) After January 1, 2022, the Department of Agriculture
20may by rule modify or raise the number of infuser licenses, and
21modify or change the licensing application process to reduce or
22eliminate barriers based on the criteria in subsection (c).
23(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)
 
24    (410 ILCS 705/35-15)
25    Sec. 35-15. Issuing licenses.

 

 

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1    (a) The Department of Agriculture shall by rule develop a
2system to score infuser applications to administratively rank
3applications based on the clarity, organization, and quality of
4the applicant's responses to required information. Applicants
5shall be awarded points based on the following categories:
6        (1) Suitability of the proposed facility;
7        (2) Suitability of the employee training plan;
8        (3) Security and recordkeeping plan;
9        (4) Infusing plan;
10        (5) Product safety and labeling plan;
11        (6) Business plan;
12        (7) The applicant's status as a Social Equity
13    Applicant, which shall constitute no less than 20% of total
14    available points;
15        (8) Labor and employment practices, which shall
16    constitute no less than 2% of total available points;
17        (9) Environmental plan as described in paragraphs (17)
18    and (18) of subsection (a) of Section 35-10;
19        (10) The applicant is 51% or more owned and controlled
20    by an individual or individuals who have been an Illinois
21    resident for the past 5 years as proved by tax records or 2
22    of the following: ;
23            (A) a signed lease agreement that includes the
24        applicant's name;
25            (B) a property deed that includes the applicant's
26        name;

 

 

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1            (C) school records;
2            (D) a voter registration card;
3            (E) an Illinois driver's license, an Illinois
4        Identification Card, or an Illinois Person with a
5        Disability Identification Card;
6            (F) a paycheck stub;
7            (G) a utility bill; or
8            (H) any other proof of residency or other
9        information necessary to establish residence as
10        provided by rule;
11        (11) The applicant is 51% or more controlled and owned
12    by an individual or individuals who meet the qualifications
13    of a veteran as defined by Section 45-57 of the Illinois
14    Procurement Code; and
15        (12) A diversity plan that includes a narrative of not
16    more than 2,500 words that establishes a goal of diversity
17    in ownership, management, employment, and contracting to
18    ensure that diverse participants and groups are afforded
19    equality of opportunity; and
20        (13) Any other criteria the Department of Agriculture
21    may set by rule for points.
22    (b) The Department may also award up to 2 bonus points for
23the applicant's plan to engage with the community. The
24applicant may demonstrate a desire to engage with its community
25by participating in one or more of, but not limited to, the
26following actions: (i) establishment of an incubator program

 

 

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1designed to increase participation in the cannabis industry by
2persons who would qualify as Social Equity Applicants; (ii)
3providing financial assistance to substance abuse treatment
4centers; (iii) educating children and teens about the potential
5harms of cannabis use; or (iv) other measures demonstrating a
6commitment to the applicant's community. Bonus points will only
7be awarded if the Department receives applications that receive
8an equal score for a particular region.
9    (c) Should the applicant be awarded an infuser license, the
10information and plans that an applicant provided in its
11application, including any plans submitted for the acquiring of
12bonus points, becomes a mandatory condition of the permit. Any
13variation from or failure to perform such plans may result in
14discipline, including the revocation or nonrenewal of a
15license.
16    (d) Should the applicant be awarded an infuser organization
17license, it shall pay a fee of $5,000 prior to receiving the
18license, to be deposited into the Cannabis Regulation Fund. The
19Department of Agriculture may by rule adjust the fee in this
20Section after January 1, 2021.
21(Source: P.A. 101-27, eff. 6-25-19.)
 
22    (410 ILCS 705/35-25)
23    Sec. 35-25. Infuser organization requirements;
24prohibitions.
25    (a) The operating documents of an infuser shall include

 

 

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1procedures for the oversight of the infuser, an inventory
2monitoring system including a physical inventory recorded
3weekly, accurate recordkeeping, and a staffing plan.
4    (b) An infuser shall implement a security plan reviewed by
5the Department of State Police that includes, but is not
6limited to: facility access controls, perimeter intrusion
7detection systems, personnel identification systems, and a
824-hour surveillance system to monitor the interior and
9exterior of the infuser facility and that is accessible to
10authorized law enforcement, the Department of Public Health,
11and the Department of Agriculture in real time.
12    (c) All processing of cannabis by an infuser must take
13place in an enclosed, locked facility at the physical address
14provided to the Department of Agriculture during the licensing
15process. The infuser location shall only be accessed by the
16agents working for the infuser, the Department of Agriculture
17staff performing inspections, the Department of Public Health
18staff performing inspections, State and local law enforcement
19or other emergency personnel, contractors working on jobs
20unrelated to cannabis, such as installing or maintaining
21security devices or performing electrical wiring, transporting
22organization agents as provided in this Act, participants in
23the incubator program, individuals in a mentoring or
24educational program approved by the State, local safety or
25health inspectors, or other individuals as provided by rule.
26However, if an infuser shares a premises with a craft grower or

 

 

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1dispensing organization, agents from these other licensees may
2access the infuser portion of the premises if that is the
3location of common bathrooms, lunchrooms, locker rooms, or
4other areas of the building where processing of cannabis is not
5performed. At no time may a craft grower or dispensing
6organization agent perform work at an infuser without being a
7registered agent of the infuser.
8    (d) An infuser may not sell or distribute any cannabis to
9any person other than a dispensing organization, or as
10otherwise authorized by rule.
11    (e) An infuser may not either directly or indirectly
12discriminate in price between different cannabis business
13establishments that are purchasing a like grade, strain, brand,
14and quality of cannabis or cannabis-infused product. Nothing in
15this subsection (e) prevents an infuser from pricing cannabis
16differently based on differences in the cost of manufacturing
17or processing, the quantities sold, such volume discounts, or
18the way the products are delivered.
19    (f) All cannabis infused by an infuser and intended for
20distribution to a dispensing organization must be entered into
21a data collection system, packaged and labeled under Section
2255-21, and, if distribution is to a dispensing organization
23that does not share a premises with the infuser, placed into a
24cannabis container for transport. All cannabis produced by an
25infuser and intended for distribution to a cultivation center,
26infuser organization, or craft grower with which it does not

 

 

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

 

 

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1    infuser; or
2        (iii) If the infuser is located in a county with a
3    population of fewer than 700,000, the cannabis business
4    establishment receiving the cannabis or cannabis-infused
5    product is within 15 miles of the infuser.
6    (k) An infuser may enter into a contract with a
7transporting organization to transport cannabis to a
8dispensing organization or a laboratory.
9    (l) An infuser organization may share premises with a craft
10grower or a dispensing organization, or both, provided each
11licensee stores currency and cannabis or cannabis-infused
12products in a separate secured vault to which the other
13licensee does not have access or all licensees sharing a vault
14share more than 50% of the same ownership.
15    (m) It is unlawful for any person or entity having an
16infuser organization license or any officer, associate,
17member, representative or agent of such licensee to offer or
18deliver money, or anything else of value, directly or
19indirectly to any person having an 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, or to any person connected
25with or in any way representing, or to any member of the family
26of, such person holding 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 stockholders in any corporation engaged
6the retail sales of cannabis, or to any officer, manager,
7agent, or representative of the Early Approval Adult Use
8Dispensing Organization License, a Conditional Adult Use
9Dispensing Organization License, an Adult Use Dispensing
10Organization License, or a medical cannabis dispensing
11organization license issued under the Compassionate Use of
12Medical Cannabis Pilot Program Act to obtain preferential
13placement within the dispensing organization, including,
14without limitation, on shelves and in display cases where
15purchasers can view products, or on the dispensing
16organization's website.
17    (n) At no time shall an infuser organization or an infuser
18agent perform the extraction of cannabis concentrate from
19cannabis flower.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/35-31)
22    Sec. 35-31. Ensuring an adequate supply of raw materials to
23serve infusers.
24    (a) As used in this Section, "raw materials" includes, but
25is not limited to, CO2 hash oil, "crude", "distillate", or any

 

 

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

 

 

SB1557 Enrolled- 309 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 310 -LRB101 08168 SMS 53234 b

1    unusable by grinding and incorporating the cannabis plant
2    waste with compostable mixed waste to be disposed of in
3    accordance with Ill. Adm. Code 1000.460(g)(1); and
4        (5) any other information the Department of
5    Agriculture deems relevant.
6    (g) The Department of Agriculture may only issue an infuser
7infusing organization a processor license if, based on the
8information pursuant to subsection (f) and any other criteria
9set by the Department of Agriculture, which may include but not
10be limited an inspection of the site where processing would
11occur, the Department of Agriculture is reasonably certain the
12infuser infusing organization will process cannabis in a safe
13and compliant manner.
14(Source: P.A. 101-27, eff. 6-25-19.)
 
15    (410 ILCS 705/40-5)
16    Sec. 40-5. Issuance of licenses.
17    (a) The Department shall issue transporting licenses
18through a process provided for in this Article no later than
19July 1, 2020.
20    (b) The Department shall make the application for
21transporting organization licenses available on January 7,
222020 and shall receive such applications no later than March
2315, 2020. The Thereafter, the Department of Agriculture shall
24make available such applications on every January 7 thereafter
25or if that date falls on a weekend or holiday, the business day

 

 

SB1557 Enrolled- 311 -LRB101 08168 SMS 53234 b

1immediately succeeding the weekend or holiday and shall receive
2such applications no later than March 15 or the succeeding
3business day thereafter.
4(Source: P.A. 101-27, eff. 6-25-19.)
 
5    (410 ILCS 705/40-10)
6    Sec. 40-10. Application.
7    (a) When applying for a transporting organization license,
8the applicant shall electronically submit the following in such
9form as the Department of Agriculture may direct:
10        (1) the nonrefundable application fee of $5,000 or,
11    after January 1, 2021, another amount as set by rule by the
12    Department of Agriculture, to be deposited into the
13    Cannabis Regulation Fund;
14        (2) the legal name of the transporting organization;
15        (3) the proposed physical address of the transporting
16    organization, if one is proposed;
17        (4) the name, address, social security number, and date
18    of birth of each principal officer and board member of the
19    transporting organization; each principal officer and
20    board member shall be at least 21 years of age;
21        (5) the details of any administrative or judicial
22    proceeding in which any of the principal officers or board
23    members of the transporting organization (i) pled guilty,
24    were convicted, fined, or had a registration or license
25    suspended or revoked, or (ii) managed or served on the

 

 

SB1557 Enrolled- 312 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 313 -LRB101 08168 SMS 53234 b

1    provide worker protections;
2        (10) whether an applicant can demonstrate experience
3    in or business practices that promote economic empowerment
4    in Disproportionately Impacted Areas;
5        (11) the number and type of equipment the transporting
6    organization will use to transport cannabis and
7    cannabis-infused products;
8        (12) loading, transporting, and unloading plans;
9        (13) a description of the applicant's experience in the
10    distribution or security business;
11        (14) the identity of every person having a financial or
12    voting interest of 5% or more in the transporting
13    organization with respect to which the license is sought,
14    whether a trust, corporation, partnership, limited
15    liability company, or sole proprietorship, including the
16    name and address of each person; and
17        (15) any other information required by rule.
18    (b) Applicants must submit all required information,
19including the information required in Section 40-35 to the
20Department. Failure by an applicant to submit all required
21information may result in the application being disqualified.
22    (c) If the Department receives an application with missing
23information, the Department of Agriculture may issue a
24deficiency notice to the applicant. The applicant shall have 10
25calendar days from the date of the deficiency notice to
26resubmit the incomplete information. Applications that are

 

 

SB1557 Enrolled- 314 -LRB101 08168 SMS 53234 b

1still incomplete after this opportunity to cure will not be
2scored and will be disqualified.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/40-15)
5    Sec. 40-15. Issuing licenses.
6    (a) The Department of Agriculture shall by rule develop a
7system to score transporter applications to administratively
8rank applications based on the clarity, organization, and
9quality of the applicant's responses to required information.
10Applicants shall be awarded points based on the following
11categories:
12        (1) suitability of employee training plan;
13        (2) security and recordkeeping plan;
14        (3) business plan;
15        (4) the applicant's status as a Social Equity
16    Applicant, which shall constitute no less than 20% of total
17    available points;
18        (5) labor and employment practices, which shall
19    constitute no less than 2% of total available points;
20        (6) environmental plan that demonstrates an
21    environmental plan of action to minimize the carbon
22    footprint, environmental impact, and resource needs for
23    the transporter, which may include, without limitation,
24    recycling cannabis product packaging;
25        (7) the applicant is 51% or more owned and controlled

 

 

SB1557 Enrolled- 315 -LRB101 08168 SMS 53234 b

1    by an individual or individuals who have been an Illinois
2    resident for the past 5 years as proved by tax records or 2
3    of the following: ;
4            (A) a signed lease agreement that includes the
5        applicant's name;
6            (B) a property deed that includes the applicant's
7        name;
8            (C) school records;
9            (D) a voter registration card;
10            (E) an Illinois driver's license, an Illinois
11        Identification Card, or an Illinois Person with a
12        Disability Identification Card;
13            (F) a paycheck stub;
14            (G) a utility bill; or
15            (H) any other proof of residency or other
16        information necessary to establish residence as
17        provided by rule;
18        (8) the applicant is 51% or more controlled and owned
19    by an individual or individuals who meet the qualifications
20    of a veteran as defined by Section 45-57 of the Illinois
21    Procurement Code;
22        (9) a diversity plan that includes a narrative of not
23    more than 2,500 words that establishes a goal of diversity
24    in ownership, management, employment, and contracting to
25    ensure that diverse participants and groups are afforded
26    equality of opportunity; and

 

 

SB1557 Enrolled- 316 -LRB101 08168 SMS 53234 b

1        (10) any other criteria the Department of Agriculture
2    may set by rule for points.
3    (b) The Department may also award up to 2 bonus points for
4the applicant's plan to engage with the community. The
5applicant may demonstrate a desire to engage with its community
6by participating in one or more of, but not limited to, the
7following actions: (i) establishment of an incubator program
8designed to increase participation in the cannabis industry by
9persons who would qualify as Social Equity Applicants; (ii)
10providing financial assistance to substance abuse treatment
11centers; (iii) educating children and teens about the potential
12harms of cannabis use; or (iv) other measures demonstrating a
13commitment to the applicant's community. Bonus points will only
14be awarded if the Department receives applications that receive
15an equal score for a particular region.
16    (c) Applicants for transporting transportation
17organization licenses that score at least 75% 85% of the
18available points according to the system developed by rule and
19meet all other requirements for a transporter license shall be
20issued a license by the Department of Agriculture within 60
21days of receiving the application. Applicants that were
22registered as medical cannabis cultivation centers prior to
23January 1, 2020 and who meet all other requirements for a
24transporter license shall be issued a license by the Department
25of Agriculture within 60 days of receiving the application.
26    (d) Should the applicant be awarded a transporting

 

 

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1transportation organization license, the information and plans
2that an applicant provided in its application, including any
3plans submitted for the acquiring of bonus points, shall be a
4mandatory condition of the permit. Any variation from or
5failure to perform such plans may result in discipline,
6including the revocation or nonrenewal of a license.
7    (e) Should the applicant be awarded a transporting
8organization license, the applicant shall pay a prorated fee of
9$10,000 prior to receiving the license, to be deposited into
10the Cannabis Regulation Fund. The Department of Agriculture may
11by rule adjust the fee in this Section after January 1, 2021.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/40-20)
14    Sec. 40-20. Denial of application. An application for a
15transporting transportation organization license shall be
16denied if any of the following conditions are met:
17        (1) the applicant failed to submit the materials
18    required by this Article;
19        (2) the applicant would not be in compliance with local
20    zoning rules or permit requirements;
21        (3) one or more of the prospective principal officers
22    or board members causes a violation of Section 40-25;
23        (4) one or more of the principal officers or board
24    members is under 21 years of age;
25        (5) the person has submitted an application for a

 

 

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1    license under this Act that contains false information; or
2        (6) the licensee, principal officer, board member, or
3    person having a financial or voting interest of 5% or
4    greater in the licensee is delinquent in filing any
5    required tax returns or paying any amounts owed to the
6    State of Illinois.
7(Source: P.A. 101-27, eff. 6-25-19.)
 
8    (410 ILCS 705/40-25)
9    Sec. 40-25. Transporting organization requirements;
10prohibitions.
11    (a) The operating documents of a transporting organization
12shall include procedures for the oversight of the transporter,
13an inventory monitoring system including a physical inventory
14recorded weekly, accurate recordkeeping, and a staffing plan.
15    (b) A transporting organization may not transport cannabis
16or cannabis-infused products to any person other than a
17cultivation center, a craft grower, an infuser organization, a
18dispensing organization, a testing facility, or as otherwise
19authorized by rule.
20    (c) All cannabis transported by a transporting
21organization must be entered into a data collection system and
22placed into a cannabis container for transport.
23    (d) Transporters are subject to random inspections by the
24Department of Agriculture, the Department of Public Health, and
25the Department of State Police.

 

 

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

 

 

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

 

 

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1recognizable from outside the vehicle.
2    (m) A vehicle transporting cannabis must not bear any
3markings to indicate the vehicle contains cannabis or bear the
4name or logo of the cannabis business establishment.
5    (n) Cannabis must be transported in an enclosed, locked
6storage compartment that is secured or affixed to the vehicle.
7    (o) The Department of Agriculture may, by rule, impose any
8other requirements or prohibitions on the transportation of
9cannabis.
10(Source: P.A. 101-27, eff. 6-25-19.)
 
11    (410 ILCS 705/40-30)
12    Sec. 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 transporting transporter
26    organization employing the agent.

 

 

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1    (d) An agent identification card shall be immediately
2returned to the transporting transporter organization of the
3agent upon termination 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(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/40-35)
14    Sec. 40-35. Transporting organization background checks.
15    (a) Through the Department of State Police, the Department
16of Agriculture shall conduct a background check of the
17prospective principal officers, board members, and agents of a
18transporter applying for a license or identification card under
19this Act. The Department of State Police shall charge a fee set
20by rule for conducting the criminal history record check, which
21shall be deposited into the State Police Services Fund and
22shall not exceed the actual cost of the record check. In order
23to carry out this provision, each transporting transporter
24organization's prospective principal officer, board member, or
25agent shall submit a full set of fingerprints to the Department

 

 

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1of State Police for the purpose of obtaining a State and
2federal criminal records check. These fingerprints shall be
3checked against the fingerprint records now and hereafter, to
4the extent allowed by law, filed in the Department of State
5Police and Federal Bureau of Investigation criminal history
6records databases. The Department of State Police shall
7furnish, following positive identification, all conviction
8information to the Department of Agriculture.
9    (b) When applying for the initial license or identification
10card, the background checks for all prospective principal
11officers, board members, and agents shall be completed before
12submitting the application to the Department of Agriculture.
13(Source: P.A. 101-27, eff. 6-25-19.)
 
14    (410 ILCS 705/40-40)
15    Sec. 40-40. Renewal of transporting organization licenses
16and agent identification cards.
17    (a) Licenses and identification cards issued under this Act
18shall be renewed annually. A transporting organization shall
19receive written or electronic notice 90 days before the
20expiration of its current license that the license will expire.
21The Department of Agriculture shall grant a renewal within 45
22days of submission of a renewal application if:
23        (1) the transporting organization submits a renewal
24    application and the required nonrefundable renewal fee of
25    $10,000, or after January 1, 2021, another amount set by

 

 

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

 

 

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1identification card if the applicant is delinquent in filing
2any required tax returns or paying any amounts owed to the
3State of Illinois.
4(Source: P.A. 101-27, eff. 6-25-19.)
 
5    (410 ILCS 705/45-5)
6    Sec. 45-5. License suspension; revocation; other
7penalties.
8    (a) Notwithstanding any other criminal penalties related
9to the unlawful possession of cannabis, the Department of
10Financial and Professional Regulation and the Department of
11Agriculture may revoke, suspend, place on probation,
12reprimand, issue cease and desist orders, refuse to issue or
13renew a license, or take any other disciplinary or
14nondisciplinary action as each department may deem proper with
15regard to a cannabis business establishment or cannabis
16business establishment agent, including fines not to exceed:
17        (1) $50,000 for each violation of this Act or rules
18    adopted under this Act by a cultivation center or
19    cultivation center agent;
20        (2) $20,000 $10,000 for each violation of this Act or
21    rules adopted under this Act by a dispensing organization
22    or dispensing organization agent;
23        (3) $15,000 for each violation of this Act or rules
24    adopted under this Act by a craft grower or craft grower
25    agent;

 

 

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1        (4) $10,000 for each violation of this Act or rules
2    adopted under this Act by an infuser organization or
3    infuser organization agent; and
4        (5) $10,000 for each violation of this Act or rules
5    adopted under this Act by a transporting organization or
6    transporting organization agent.
7    (b) The Department of Financial and Professional
8Regulation and the Department of Agriculture, as the case may
9be, shall consider licensee cooperation in any agency or other
10investigation in its determination of penalties imposed under
11this Section.
12    (c) The procedures for disciplining a cannabis business
13establishment or cannabis business establishment agent and for
14administrative hearings shall be determined by rule, and shall
15provide for the review of final decisions under the
16Administrative Review Law.
17    (d) The Attorney General may also enforce a violation of
18Section 55-20, Section 55-21, and Section 15-155 as an unlawful
19practice under the Consumer Fraud and Deceptive Business
20Practices Act.
21(Source: P.A. 101-27, eff. 6-25-19.)
 
22    (410 ILCS 705/50-5)
23    Sec. 50-5. Laboratory testing.
24    (a) Notwithstanding any other provision of law, the
25following acts, when performed by a cannabis testing facility

 

 

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

 

 

SB1557 Enrolled- 329 -LRB101 08168 SMS 53234 b

1    direct or indirect interest in the laboratory has a direct
2    or indirect financial, management, or other interest in an
3    Illinois cultivation center, craft grower, dispensary,
4    infuser, transporter, certifying physician, or any other
5    entity in the State that may benefit from the production,
6    manufacture, dispensing, sale, purchase, or use of
7    cannabis; and
8        (C) has employed at least one person to oversee and be
9    responsible for the laboratory testing who has earned, from
10    a college or university accredited by a national or
11    regional certifying authority, at least:
12            (i) a master's level degree in chemical or
13        biological sciences and a minimum of 2 years'
14        post-degree laboratory experience; or
15            (ii) a bachelor's degree in chemical or biological
16        sciences and a minimum of 4 years' post-degree
17        laboratory experience.
18    (3) Each independent testing laboratory that claims to be
19accredited must provide the Department of Agriculture with a
20copy of the most recent annual inspection report granting
21accreditation and every annual report thereafter.
22    (c) Immediately before manufacturing or natural processing
23of any cannabis or cannabis-infused product or packaging
24cannabis for sale to a dispensary, each batch shall be made
25available by the cultivation center, craft grower, or infuser
26for an employee of an approved laboratory to select a random

 

 

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

 

 

SB1557 Enrolled- 331 -LRB101 08168 SMS 53234 b

1standards for microbial, mycotoxin, pesticide residue, solvent
2residue, or other standards for the presence of possible
3contaminants, in addition to labeling requirements for
4contents and potency.
5    (h) The laboratory shall file with the Department of
6Agriculture an electronic copy of each laboratory test result
7for any batch that does not pass the microbiological,
8mycotoxin, or pesticide chemical residue test, at the same time
9that it transmits those results to the cultivation center. In
10addition, the laboratory shall maintain the laboratory test
11results for at least 5 years and make them available at the
12Department of Agriculture's request.
13    (i) A cultivation center, craft grower, and infuser shall
14provide to a dispensing organization the laboratory test
15results for each batch of cannabis product purchased by the
16dispensing organization, if sampled. Each dispensing
17dispensary organization must have those laboratory results
18available upon request to purchasers.
19    (j) The Department of Agriculture may adopt rules related
20to testing in furtherance of this Act.
21(Source: P.A. 101-27, eff. 6-25-19.)
 
22    (410 ILCS 705/55-10)
23    Sec. 55-10. Maintenance of inventory. All dispensing
24organizations authorized to serve both registered qualifying
25patients and caregivers and purchasers are required to report

 

 

SB1557 Enrolled- 332 -LRB101 08168 SMS 53234 b

1which cannabis and cannabis-infused products are purchased for
2sale under the Compassionate Use of Medical Cannabis Pilot
3Program Act, and which cannabis and cannabis-infused products
4are purchased under this Act. Nothing in this Section prohibits
5a registered qualifying patient under the Compassionate Use of
6Medical Cannabis Pilot Program Act from purchasing cannabis as
7a purchaser under this Act.
8(Source: P.A. 101-27, eff. 6-25-19.)
 
9    (410 ILCS 705/55-20)
10    Sec. 55-20. Advertising and promotions.
11    (a) No cannabis business establishment nor any other person
12or entity shall engage in advertising that contains any
13statement or illustration that:
14        (1) is false or misleading;
15        (2) promotes overconsumption of cannabis or cannabis
16    products;
17        (3) depicts the actual consumption of cannabis or
18    cannabis products;
19        (4) depicts a person under 21 years of age consuming
20    cannabis;
21        (5) makes any health, medicinal, or therapeutic claims
22    about cannabis or cannabis-infused products;
23        (6) includes the image of a cannabis leaf or bud; or
24        (7) includes any image designed or likely to appeal to
25    minors, including cartoons, toys, animals, or children, or

 

 

SB1557 Enrolled- 333 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 334 -LRB101 08168 SMS 53234 b

1        children, or any imitation of candy packaging or
2        labeling, or that promotes consumption of cannabis.
3    (c) Subsections (a) and (b) do not apply to an educational
4message.
5    (d) Sales promotions. No cannabis business establishment
6nor any other person or entity may encourage the sale of
7cannabis or cannabis products by giving away cannabis or
8cannabis products, by conducting games or competitions related
9to the consumption of cannabis or cannabis products, or by
10providing promotional materials or activities of a manner or
11type that would be appealing to children.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (410 ILCS 705/55-21)
14    Sec. 55-21. Cannabis product packaging and labeling.
15    (a) Each cannabis product produced for sale shall be
16registered with the Department of Agriculture on forms provided
17by the Department of Agriculture. Each product registration
18shall include a label and the required registration fee at the
19rate established by the Department of Agriculture for a
20comparable medical cannabis product, or as established by rule.
21The registration fee is for the name of the product offered for
22sale and one fee shall be sufficient for all package sizes.
23    (b) All harvested cannabis intended for distribution to a
24cannabis enterprise must be packaged in a sealed, labeled
25container.

 

 

SB1557 Enrolled- 335 -LRB101 08168 SMS 53234 b

1    (c) Any product containing cannabis shall be packaged in a
2sealed, odor-proof, and child-resistant cannabis container
3consistent with current standards, including the Consumer
4Product Safety Commission standards referenced by the Poison
5Prevention Act.
6    (d) All cannabis-infused products shall be individually
7wrapped or packaged at the original point of preparation. The
8packaging of the cannabis-infused product shall conform to the
9labeling requirements of the Illinois Food, Drug and Cosmetic
10Act, in addition to the other requirements set forth in this
11Section.
12    (e) Each cannabis product shall be labeled before sale and
13each label shall be securely affixed to the package and shall
14state in legible English and any languages required by the
15Department of Agriculture:
16        (1) the name and post office box of the registered
17    cultivation center or craft grower where the item was
18    manufactured;
19        (2) the common or usual name of the item and the
20    registered name of the cannabis product that was registered
21    with the Department of Agriculture under subsection (a);
22        (3) a unique serial number that will match the product
23    with a cultivation center or craft grower batch and lot
24    number to facilitate any warnings or recalls the Department
25    of Agriculture, cultivation center, or craft grower deems
26    appropriate;

 

 

SB1557 Enrolled- 336 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 337 -LRB101 08168 SMS 53234 b

1    (f) Packaging must not contain information that:
2        (1) is false or misleading;
3        (2) promotes excessive consumption;
4        (3) depicts a person under 21 years of age consuming
5    cannabis;
6        (4) includes the image of a cannabis leaf;
7        (5) includes any image designed or likely to appeal to
8    minors, including cartoons, toys, animals, or children, or
9    any other likeness to images, characters, or phrases that
10    are popularly used to advertise to children, or any
11    packaging or labeling that bears reasonable resemblance to
12    any product available for consumption as a commercially
13    available candy, or that promotes consumption of cannabis;
14        (6) contains any seal, flag, crest, coat of arms, or
15    other insignia likely to mislead the purchaser to believe
16    that the product has been endorsed, made, or used by the
17    State of Illinois or any of its representatives except
18    where authorized by this Act.
19    (g) Cannabis products produced by concentrating or
20extracting ingredients from the cannabis plant shall contain
21the following information, where applicable:
22        (1) If solvents were used to create the concentrate or
23    extract, a statement that discloses the type of extraction
24    method, including any solvents or gases used to create the
25    concentrate or extract; and
26        (2) Any other chemicals or compounds used to produce or

 

 

SB1557 Enrolled- 338 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 339 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 340 -LRB101 08168 SMS 53234 b

1        (3) Provide a copy of the license of the commercial
2    device to the Department of Agriculture for review upon
3    request.
4    (n) It is the responsibility of the Department to ensure
5that packaging and labeling requirements, including product
6warnings, are enforced at all times for products provided to
7purchasers. Product registration requirements and container
8requirements may be modified by rule by the Department of
9Agriculture.
10    (o) Labeling, including warning labels, may be modified by
11rule by the Department of Agriculture.
12(Source: P.A. 101-27, eff. 6-25-19; revised 8-30-19.)
 
13    (410 ILCS 705/55-25)
14    Sec. 55-25. Local ordinances. Unless otherwise provided
15under this Act or otherwise in accordance with State law:
16        (1) A unit of local government, including a home rule
17    unit or any non-home rule county within the unincorporated
18    territory of the county, may enact reasonable zoning
19    ordinances or resolutions, not in conflict with this Act or
20    rules adopted pursuant to this Act, regulating cannabis
21    business establishments. No unit of local government,
22    including a home rule unit or any non-home rule county
23    within the unincorporated territory of the county, may
24    prohibit home cultivation or unreasonably prohibit use of
25    cannabis authorized by this Act.

 

 

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1        (2) A unit of local government, including a home rule
2    unit or any non-home rule county within the unincorporated
3    territory of the county, may enact ordinances or rules not
4    in conflict with this Act or with rules adopted pursuant to
5    this Act governing the time, place, manner, and number of
6    cannabis business establishment operations, including
7    minimum distance limitations between cannabis business
8    establishments and locations it deems sensitive, including
9    colleges and universities, through the use of conditional
10    use permits. A unit of local government, including a home
11    rule unit, may establish civil penalties for violation of
12    an ordinance or rules governing the time, place, and manner
13    of operation of a cannabis business establishment or a
14    conditional use permit in the jurisdiction of the unit of
15    local government. No unit of local government, including a
16    home rule unit or non-home rule county within an
17    unincorporated territory of the county, may unreasonably
18    restrict the time, place, manner, and number of cannabis
19    business establishment operations authorized by this Act.
20        (3) 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 authorize or permit the
23    on-premises consumption of cannabis at or in a dispensing
24    organization or retail tobacco store (as defined in Section
25    10 of the Smoke Free Illinois Act) within its jurisdiction
26    in a manner consistent with this Act. A dispensing

 

 

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1    organization or retail tobacco store regulate the
2    on-premises consumption of cannabis at or in a cannabis
3    business establishment within its jurisdiction in a manner
4    consistent with this Act. A cannabis business
5    establishment or other entity authorized or permitted by a
6    unit of local government to allow on-site consumption shall
7    not be deemed a public place within the meaning of the
8    Smoke Free Illinois Act.
9        (4) A unit of local government, including a home rule
10    unit or any non-home rule county within the unincorporated
11    territory of the county, may not regulate the activities
12    described in paragraph (1), (2), or (3) in a manner more
13    restrictive than the regulation of those activities by the
14    State under this Act. This Section is a limitation under
15    subsection (i) of Section 6 of Article VII of the Illinois
16    Constitution on the concurrent exercise by home rule units
17    of powers and functions exercised by the State.
18        (5) A unit of local government, including a home rule
19    unit or any non-home rule county within the unincorporated
20    territory of the county, may enact ordinances to prohibit
21    or significantly limit a cannabis business establishment's
22    location.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/55-28)
25    Sec. 55-28. Restricted cannabis zones.

 

 

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1    (a) As used in this Section:
2    "Legal voter" means a person:
3        (1) who is duly registered to vote in a municipality
4    with a population of over 500,000;
5        (2) whose name appears on a poll list compiled by the
6    city board of election commissioners since the last
7    preceding election, regardless of whether the election was
8    a primary, general, or special election;
9        (3) who, at the relevant time, is a resident of the
10    address at which he or she is registered to vote; and
11        (4) whose address, at the relevant time, is located in
12    the precinct where such person seeks to file a notice of
13    intent to initiate a petition process, circulate a
14    petition, or sign a petition under this Section.
15    As used in the definition of "legal voter", "relevant time"
16means any time that:
17        (i) a notice of intent is filed, pursuant to subsection
18    (c) of this Section, to initiate the petition process under
19    this Section;
20        (ii) the petition is circulated for signature in the
21    applicable precinct; or
22        (iii) the petition is signed by registered voters in
23    the applicable precinct.
24    "Petition" means the petition described in this Section.
25    "Precinct" means the smallest constituent territory within
26a municipality with a population of over 500,000 in which

 

 

SB1557 Enrolled- 344 -LRB101 08168 SMS 53234 b

1electors vote as a unit at the same polling place in any
2election governed by the Election Code.
3    "Restricted cannabis zone" means a precinct within which
4home cultivation, one or more types of cannabis business
5establishments, or both has been prohibited pursuant to an
6ordinance initiated by a petition under this Section.
7    (b) The legal voters of any precinct within a municipality
8with a population of over 500,000 may petition their local
9alderman, using a petition form made available online by the
10city clerk, to introduce an ordinance establishing the precinct
11as a restricted zone. Such petition shall specify whether it
12seeks an ordinance to prohibit, within the precinct: (i) home
13cultivation; (ii) one or more types of cannabis business
14establishments; or (iii) home cultivation and one or more types
15of cannabis business establishments.
16    Upon receiving a petition containing the signatures of at
17least 25% of the registered voters of the precinct, and
18concluding that the petition is legally sufficient following
19the posting and review process in subsection (c) of this
20Section, the city clerk shall notify the local alderman of the
21ward in which the precinct is located. Upon being notified,
22that alderman, following an assessment of relevant factors
23within the precinct, including but not limited to, its
24geography, density and character, the prevalence of
25residentially zoned property, current licensed cannabis
26business establishments in the precinct, the current amount of

 

 

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1home cultivation in the precinct, and the prevailing viewpoint
2with regard to the issue raised in the petition, may introduce
3an ordinance to the municipality's governing body creating a
4restricted cannabis zone in that precinct.
5    (c) A person seeking to initiate the petition process
6described in this Section shall first submit to the city clerk
7notice of intent to do so, on a form made available online by
8the city clerk. That notice shall include a description of the
9potentially affected area and the scope of the restriction
10sought. The city clerk shall publicly post the submitted notice
11online.
12    To be legally sufficient, a petition must contain the
13requisite number of valid signatures and all such signatures
14must be obtained within 90 days of the date that the city clerk
15publicly posts the notice of intent. Upon receipt, the city
16clerk shall post the petition on the municipality's website for
17a 30-day comment period. The city clerk is authorized to take
18all necessary and appropriate steps to verify the legal
19sufficiency of a submitted petition. Following the petition
20review and comment period, the city clerk shall publicly post
21online the status of the petition as accepted or rejected, and
22if rejected, the reasons therefor. If the city clerk rejects a
23petition as legally insufficient, a minimum of 12 months must
24elapse from the time the city clerk posts the rejection notice
25before a new notice of intent for that same precinct may be
26submitted.

 

 

SB1557 Enrolled- 346 -LRB101 08168 SMS 53234 b

1    (c-5) Within 3 days after receiving an application for
2zoning approval to locate a cannabis business establishment
3within a municipality with a population of over 500,000, the
4municipality shall post a public notice of the filing on its
5website and notify the alderman of the ward in which the
6proposed cannabis business establishment is to be located of
7the filing. No action shall be taken on the zoning application
8for 7 business days following the notice of the filing for
9zoning approval.
10    If a notice of intent to initiate the petition process to
11prohibit the type of cannabis business establishment proposed
12in the precinct of the proposed cannabis business establishment
13is filed prior to the filing of the application or within the
147-day period after the filing of the application, the
15municipality shall not approve the application for at least 90
16days after the city clerk publicly posts the notice of intent
17to initiate the petition process. If a petition is filed within
18the 90-day petition-gathering period described in subsection
19(c), the municipality shall not approve the application for an
20additional 90 days after the city clerk's receipt of the
21petition; provided that if the city clerk rejects a petition as
22legally insufficient, the municipality may approve the
23application prior to the end of the 90 days. If a petition is
24not submitted within the 90-day petition-gathering period
25described in subsection (c), the municipality may approve the
26application unless the approval is otherwise stayed pursuant to

 

 

SB1557 Enrolled- 347 -LRB101 08168 SMS 53234 b

1this subsection by a separate notice of intent to initiate the
2petition process filed timely within the 7-day period.
3    If no legally sufficient petition is timely filed, a
4minimum of 12 months must elapse before a new notice of intent
5for that same precinct may be submitted.
6    (d) Notwithstanding any law to the contrary, the
7municipality may enact an ordinance creating a restricted
8cannabis zone. The ordinance shall:
9        (1) identify the applicable precinct boundaries as of
10    the date of the petition;
11        (2) state whether the ordinance prohibits within the
12    defined boundaries of the precinct, and in what
13    combination: (A) one or more types of cannabis business
14    establishments; or (B) home cultivation;
15        (3) be in effect for 4 years, unless repealed earlier;
16    and
17        (4) once in effect, be subject to renewal by ordinance
18    at the expiration of the 4-year period without the need for
19    another supporting petition.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/55-30)
22    Sec. 55-30. Confidentiality.
23    (a) Information provided by the cannabis business
24establishment licensees or applicants to the Department of
25Agriculture, the Department of Public Health, the Department of

 

 

SB1557 Enrolled- 348 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 349 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 350 -LRB101 08168 SMS 53234 b

1Financial and Professional Regulation in the course of an
2examination, inspection, or investigation of a licensee or
3applicant, including, but not limited to, any complaint against
4a licensee or applicant filed with the Department and
5information collected to investigate any such complaint, shall
6be maintained for the confidential use of the Department and
7shall not be disclosed, except as otherwise provided in this
8the Act. A formal complaint against a licensee by the
9Department or any disciplinary order issued by the Department
10against a licensee or applicant shall be a public record,
11except as otherwise provided by law prohibited by law, as
12required by law, or as necessary to enforce the provisions of
13this Act. Complaints from consumers or members of the general
14public received regarding a specific, named licensee or
15complaints regarding conduct by unlicensed entities shall be
16subject to disclosure under the Freedom of Information Act.
17    (e) The Department of Agriculture, the Department of State
18Police, and the Department of Financial and Professional
19Regulation shall not share or disclose any Illinois or national
20criminal history record information, or the nonexistence or
21lack of such information, existing or non-existing Illinois or
22national criminal history record information to any person or
23entity not expressly authorized by this Act. As used in this
24Section, "any existing or non-existing Illinois or national
25criminal history record information" means any Illinois or
26national criminal history record information, including but

 

 

SB1557 Enrolled- 351 -LRB101 08168 SMS 53234 b

1not limited to the lack of or non-existence of these records.
2    (f) Each Department responsible for licensure under this
3Act shall publish on the Department's website a list of the
4ownership information of cannabis business establishment
5licensees under the Department's jurisdiction. The list shall
6include, but is not limited to: the name of the person or
7entity holding each cannabis business establishment license;
8and the address at which the entity is operating under this
9Act. This list shall be published and updated monthly.
10(Source: P.A. 101-27, eff. 6-25-19; revised 9-10-19.)
 
11    (410 ILCS 705/55-35)
12    Sec. 55-35. Administrative rulemaking.
13    (a) No later than 180 days after the effective date of this
14Act, the Department of Agriculture, the Department of State
15Police, the Department of Financial and Professional
16Regulation, the Department of Revenue, the Department of
17Commerce and Economic Opportunity, and the Treasurer's Office
18shall adopt permanent rules in accordance with their
19responsibilities under this Act. The Department of
20Agriculture, the Department of State Police, the Department of
21Financial and Professional Regulation, the Department of
22Revenue, and the Department of Commerce and Economic
23Opportunity may adopt rules necessary to regulate personal
24cannabis use through the use of emergency rulemaking in
25accordance with subsection (gg) of Section 5-45 of the Illinois

 

 

SB1557 Enrolled- 352 -LRB101 08168 SMS 53234 b

1Administrative Procedure Act. The General Assembly finds that
2the adoption of rules to regulate cannabis use is deemed an
3emergency and necessary for the public interest, safety, and
4welfare.
5    (b) The Department of Agriculture rules may address, but
6are not limited to, the following matters related to
7cultivation centers, craft growers, infuser organizations, and
8transporting organizations with the goal of protecting against
9diversion and theft, without imposing an undue burden on the
10cultivation centers, craft growers, infuser organizations, or
11transporting organizations:
12        (1) oversight requirements for cultivation centers,
13    craft growers, infuser organizations, and transporting
14    organizations;
15        (2) recordkeeping requirements for cultivation
16    centers, craft growers, infuser organizations, and
17    transporting organizations;
18        (3) security requirements for cultivation centers,
19    craft growers, infuser organizations, and transporting
20    organizations, which shall include that each cultivation
21    center, craft grower, infuser organization, and
22    transporting organization location must be protected by a
23    fully operational security alarm system;
24        (4) standards for enclosed, locked facilities under
25    this Act;
26        (5) procedures for suspending or revoking the

 

 

SB1557 Enrolled- 353 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 354 -LRB101 08168 SMS 53234 b

1        (4) procedures for suspending or revoking the licenses
2    of dispensing organization agents that commit violations
3    of this Act or the rules adopted under this Act;
4        (5) any other matters under oversight by the Department
5    of Financial and Professional Regulation that are
6    necessary for the fair, impartial, stringent, and
7    comprehensive administration of this Act.
8    (d) The Department of Revenue rules may address, but are
9not limited to, the following matters related to the payment of
10taxes by cannabis business establishments:
11        (1) recording of sales;
12        (2) documentation of taxable income and expenses;
13        (3) transfer of funds for the payment of taxes; or
14        (4) any other matter under the oversight of the
15    Department of Revenue.
16    (e) The Department of Commerce and Economic Opportunity
17rules may address, but are not limited to, a loan program or
18grant program to assist Social Equity Applicants access the
19capital needed to start a cannabis business establishment. The
20names of recipients and the amounts of any moneys received
21through a loan program or grant program shall be a public
22record.
23    (f) The Department of State Police rules may address
24enforcement of its authority under this Act. The Department of
25State Police shall not make rules that infringe on the
26exclusive authority of the Department of Financial and

 

 

SB1557 Enrolled- 355 -LRB101 08168 SMS 53234 b

1Professional Regulation or the Department of Agriculture over
2licensees under this Act.
3    (g) The Department of Human Services Public Health shall
4develop and disseminate:
5        (1) educational information about the health risks
6    associated with the use of cannabis; and
7        (2) one or more public education campaigns in
8    coordination with local health departments and community
9    organizations, including one or more prevention campaigns
10    directed at children, adolescents, parents, and pregnant
11    or breastfeeding women, to inform them of the potential
12    health risks associated with intentional or unintentional
13    cannabis use.
14(Source: P.A. 101-27, eff. 6-25-19.)
 
15    (410 ILCS 705/55-65)
16    Sec. 55-65. Financial institutions.
17    (a) A financial institution that provides financial
18services customarily provided by financial institutions to a
19cannabis business establishment authorized under this Act or
20the Compassionate Use of Medical Cannabis Pilot Program Act, or
21to a person that is affiliated with such cannabis business
22establishment, is exempt from any criminal law of this State as
23it relates to cannabis-related conduct authorized under State
24law.
25    (b) Upon request of a financial institution, a cannabis

 

 

SB1557 Enrolled- 356 -LRB101 08168 SMS 53234 b

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

 

 

SB1557 Enrolled- 357 -LRB101 08168 SMS 53234 b

1this Section is confidential. Except as otherwise required or
2permitted by this Act, State law or rule, or federal law or
3regulation, a financial institution may not make the
4information available to any person other than:
5        (1) the customer to whom the information applies;
6        (2) a trustee, conservator, guardian, personal
7    representative, or agent of the customer to whom the
8    information applies; a federal or State regulator when
9    requested in connection with an examination of the
10    financial institution or if otherwise necessary for
11    complying with federal or State law;
12        (3) a federal or State regulator when requested in
13    connection with an examination of the financial
14    institution or if otherwise necessary for complying with
15    federal or State law; and
16        (4) a third party performing services for the financial
17    institution, provided the third party is performing such
18    services under a written agreement that expressly or by
19    operation of law prohibits the third party's sharing and
20    use of such confidential information for any purpose other
21    than as provided in its agreement to provide services to
22    the financial institution.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/55-80)
25    Sec. 55-80. Annual reports.

 

 

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

 

 

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

 

 

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1    growers and infusers that share a premises or majority
2    ownership with a dispensing organization;
3        (5) The total amount of revenue received from craft
4    growers that share a premises or majority ownership with an
5    infuser, but do not share a premises or ownership with a
6    dispensary;
7        (6) The total amount of revenue received from infusers
8    that share a premises or majority ownership with a craft
9    grower, but do not share a premises or ownership with a
10    dispensary;
11        (7) The total amount of revenue received from craft
12    growers that share a premises or majority ownership with a
13    dispensing organization, but do not share a premises or
14    ownership with an infuser;
15        (8) The total amount of revenue received from infusers
16    that share a premises or majority ownership with a
17    dispensing organization, but do not share a premises or
18    ownership with a craft grower;
19        (9) The total amount of revenue received from
20    transporters; and
21        (10) An analysis of revenue generated from taxation,
22    licensing, and other fees for the State, including
23    recommendations to change the tax rate applied.
24    (c) The Department of State Police shall submit to the
25General Assembly and Governor a report, by September 30 of each
26year that contains, at a minimum, all of the following

 

 

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

 

 

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1    presence or detection of other drugs;
2        (4) Overdoses of cannabis and poison control data,
3    including the presence of other drugs that may have
4    contributed;
5        (5) Incidents of impaired driving caused by the
6    consumption of cannabis or cannabis products, including
7    the presence of other drugs or alcohol that may have
8    contributed to the impaired driving;
9        (6) Prevalence of infants born testing positive for
10    cannabis or delta-9-tetrahydrocannabinol, including
11    demographic and racial information on which infants are
12    tested;
13        (7) Public perceptions of use and risk of harm;
14        (8) Revenue collected from cannabis taxation and how
15    that revenue was used;
16        (9) Cannabis retail licenses granted and locations;
17        (10) Cannabis-related arrests; and
18        (11) The number of individuals completing required bud
19    tender training.
20    (e) Each agency or committee submitting reports under this
21Section may consult with one another in the preparation of each
22report.
23(Source: P.A. 101-27, eff. 6-25-19.)
 
24    (410 ILCS 705/55-85)
25    Sec. 55-85. Medical cannabis.

 

 

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1    (a) Nothing in this Act shall be construed to limit any
2privileges or rights of a medical cannabis patient including
3minor patients, primary caregiver, medical cannabis
4cultivation center, or medical cannabis dispensing
5organization under the Compassionate Use of Medical Cannabis
6Pilot Program Act, and where there is conflict between this Act
7and the Compassionate Use of Medical Cannabis Pilot Program Act
8as they relate to medical cannabis patients, the Compassionate
9Use of Medical Cannabis Pilot Program Act shall prevail.
10    (b) Dispensary locations that obtain an Early Approval
11Adult Use Dispensary Organization License or an Adult Use
12Dispensary Organization License in accordance with this Act at
13the same location as a medical cannabis dispensing organization
14registered under the Compassionate Use of Medical Cannabis
15Pilot Program Act shall maintain an inventory of medical
16cannabis and medical cannabis products on a monthly basis that
17is substantially similar in variety and quantity to the
18products offered at the dispensary during the 6-month period
19immediately before the effective date of this Act.
20    (c) Beginning June 30, 2020, the Department of Agriculture
21shall make a quarterly determination whether inventory
22requirements established for dispensaries in subsection (b)
23should be adjusted due to changing patient need.
24(Source: P.A. 101-27, eff. 6-25-19.)
 
25    (410 ILCS 705/55-95)

 

 

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1    Sec. 55-95. Conflict of interest. A person is ineligible to
2apply for, hold, or own financial or voting interest, other
3than a passive interest in a publicly traded company, in any
4cannabis business license under this Act if, within a 2-year
5period from the effective date of this Act, the person or his
6or her spouse or immediate immediately family member was a
7member of the General Assembly or a State employee at an agency
8that regulates cannabis business establishment license holders
9who participated personally and substantially in the award of
10licenses under this Act. A person who violates this Section
11shall be guilty under subsection (b) of Section 50-5 of the
12State Officials and Employees Ethics Act.
13(Source: P.A. 101-27, eff. 6-25-19.)
 
14    (410 ILCS 705/60-5)
15    Sec. 60-5. Definitions. In this Article:
16    "Cannabis" has the meaning given to that term in Article 1
17of this Act, except that it does not include cannabis that is
18subject to tax under the Compassionate Use of Medical Cannabis
19Pilot Program Act.
20    "Craft grower" has the meaning given to that term in
21Article 1 of this Act.
22    "Cultivation center" has the meaning given to that term in
23Article 1 of this Act.
24    "Cultivator" or "taxpayer" means a cultivation center or
25craft grower who is subject to tax under this Article.

 

 

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1    "Department" means the Department of Revenue.
2    "Director" means the Director of Revenue.
3    "Dispensing organization" or "dispensary" has the meaning
4given to that term in Article 1 of this Act.
5    "Gross receipts" from the sales of cannabis by a cultivator
6means the total selling price or the amount of such sales, as
7defined in this Article. In the case of charges and time sales,
8the amount thereof shall be included only when payments are
9received by the cultivator.
10    "Person" means a natural individual, firm, partnership,
11association, joint stock company, joint adventure, public or
12private corporation, limited liability company, or a receiver,
13executor, trustee, guardian, or other representative appointed
14by order of any court.
15    "Infuser" means "infuser organization" or "infuser" as
16defined in Article 1 of this Act.
17    "Selling price" or "amount of sale" means the consideration
18for a sale valued in money whether received in money or
19otherwise, including cash, credits, property, and services,
20and shall be determined without any deduction on account of the
21cost of the property sold, the cost of materials used, labor or
22service cost, or any other expense whatsoever, but does not
23include separately stated charges identified on the invoice by
24cultivators to reimburse themselves for their tax liability
25under this Article.
26(Source: P.A. 101-27, eff. 6-25-19.)
 

 

 

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1    (410 ILCS 705/60-20)
2    Sec. 60-20. Return and payment of cannabis cultivation
3privilege tax. Each person who is required to pay the tax
4imposed by this Article shall make a return to the Department
5on or before the 20th day of each month for the preceding
6calendar month stating the following:
7        (1) the taxpayer's name;
8        (2) the address of the taxpayer's principal place of
9    business and the address of the principal place of business
10    (if that is a different address) from which the taxpayer is
11    engaged in the business of cultivating cannabis subject to
12    tax under this Article;
13        (3) the total amount of receipts received by the
14    taxpayer during the preceding calendar month from sales of
15    cannabis subject to tax under this Article by the taxpayer
16    during the preceding calendar month;
17        (4) the total amount received by the taxpayer during
18    the preceding calendar month on charge and time sales of
19    cannabis subject to tax imposed under this Article by the
20    taxpayer before the month for which the return is filed;
21        (5) deductions allowed by law;
22        (6) gross receipts that were received by the taxpayer
23    during the preceding calendar month and upon the basis of
24    which the tax is imposed;
25        (7) the amount of tax due;

 

 

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

 

 

SB1557 Enrolled- 368 -LRB101 08168 SMS 53234 b

1claimed by a taxpayer for any payment that is not made
2electronically, unless a waiver has been granted under this
3Section. Any amount that is required to be shown or reported on
4any return or other document under this Article shall, if the
5amount is not a whole-dollar amount, be increased to the
6nearest whole-dollar amount if the fractional part of a dollar
7is $0.50 or more and decreased to the nearest whole-dollar
8amount if the fractional part of a dollar is less than $0.50.
9If a total amount of less than $1 is payable, refundable, or
10creditable, the amount shall be disregarded if it is less than
11$0.50 and shall be increased to $1 if it is $0.50 or more.
12Notwithstanding any other provision of this Article concerning
13the time within which a taxpayer may file a return, any such
14taxpayer who ceases to engage in the kind of business that
15makes the person responsible for filing returns under this
16Article shall file a final return under this Article with the
17Department within one month after discontinuing such business.
18    Each taxpayer under this Article shall make estimated
19payments to the Department on or before the 7th, 15th, 22nd,
20and last day of the month during which tax liability to the
21Department is incurred. The payments shall be in an amount not
22less than the lower of either 22.5% of the taxpayer's actual
23tax liability for the month or 25% of the taxpayer's actual tax
24liability for the same calendar month of the preceding year.
25The amount of the quarter-monthly payments shall be credited
26against the final tax liability of the taxpayer's return for

 

 

SB1557 Enrolled- 369 -LRB101 08168 SMS 53234 b

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

 

 

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1    If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department is
3received by the taxpayer, the return shall be considered valid
4and any amount shown to be due on the return shall be deemed
5assessed.
6(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/65-5)
8    Sec. 65-5. Definitions. In this Article:
9    "Adjusted delta-9-tetrahydrocannabinol level" means, for a
10delta-9-tetrahydrocannabinol dominant product, the sum of the
11percentage of delta-9-tetrahydrocannabinol plus .877
12multiplied by the percentage of tetrahydrocannabinolic acid.
13    "Cannabis" has the meaning given to that term in Article 1
14of this Act, except that it does not include cannabis that is
15subject to tax under the Compassionate Use of Medical Cannabis
16Pilot Program Act.
17    "Cannabis-infused product" means beverage food, oils,
18ointments, tincture, topical formulation, or another product
19containing cannabis that is not intended to be smoked.
20    "Cannabis retailer" means a dispensing organization that
21sells cannabis for use and not for resale.
22    "Craft grower" has the meaning given to that term in
23Article 1 of this Act.
24    "Department" means the Department of Revenue.
25    "Director" means the Director of Revenue.

 

 

SB1557 Enrolled- 371 -LRB101 08168 SMS 53234 b

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

 

 

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1    County Cannabis Retailers' Occupation Tax Law, the
2    Retailers' Occupation Tax Act, the Use Tax Act, the Service
3    Occupation Tax Act, the Service Use Tax Act, or any locally
4    imposed occupation or use tax.
5    "Purchaser" means a person who acquires cannabis for a
6valuable consideration.
7    "Taxpayer" means a cannabis retailer who is required to
8collect the tax imposed under this Article.
9(Source: P.A. 101-27, eff. 6-25-19.)
 
10    (410 ILCS 705/65-10)
11    Sec. 65-10. Tax imposed.
12    (a) Beginning January 1, 2020, a tax is imposed upon
13purchasers for the privilege of using cannabis at the following
14rates:
15        (1) Any cannabis, other than a cannabis-infused
16    product, with an adjusted delta-9-tetrahydrocannabinol
17    level at or below 35% shall be taxed at a rate of 10% of the
18    purchase price;
19        (2) Any cannabis, other than a cannabis-infused
20    product, with an adjusted delta-9-tetrahydrocannabinol
21    level above 35% shall be taxed at a rate of 25% of the
22    purchase price; and
23        (3) A cannabis-infused product shall be taxed at a rate
24    of 20% of the purchase price.
25    (b) The purchase of any product that contains any amount of

 

 

SB1557 Enrolled- 373 -LRB101 08168 SMS 53234 b

1cannabis or any derivative thereof is subject to the tax under
2subsection (a) of this Section on the full purchase price of
3the product.
4    (c) The tax imposed under this Section is not imposed on
5cannabis that is subject to tax under the Compassionate Use of
6Medical Cannabis Pilot Program Act. The tax imposed by this
7Section is not imposed with respect to any transaction in
8interstate commerce, to the extent the transaction may not,
9under the Constitution and statutes of the United States, be
10made the subject of taxation by this State.
11    (d) The tax imposed under this Article shall be in addition
12to all other occupation, privilege, or excise taxes imposed by
13the State of Illinois or by any municipal corporation or
14political subdivision thereof.
15    (e) The tax imposed under this Article shall not be imposed
16on any purchase by a purchaser if the cannabis retailer is
17prohibited by federal or State Constitution, treaty,
18convention, statute, or court decision from collecting the tax
19from the purchaser.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/65-15)
22    Sec. 65-15. Collection of tax.
23    (a) The tax imposed by this Article shall be collected from
24the purchaser by the cannabis retailer at the rate stated in
25Section 65-10 with respect to cannabis sold by the cannabis

 

 

SB1557 Enrolled- 374 -LRB101 08168 SMS 53234 b

1retailer to the purchaser, and shall be remitted to the
2Department as provided in Section 65-30. All sales to a
3purchaser who is not a cardholder under the Compassionate Use
4of Medical Cannabis Pilot Program Act are presumed subject to
5tax collection. Cannabis retailers shall collect the tax from
6purchasers by adding the tax to the amount of the purchase
7price received from the purchaser for selling cannabis to the
8purchaser. The tax imposed by this Article shall, when
9collected, be stated as a distinct item separate and apart from
10the purchase price of the cannabis.
11    (b) If a cannabis retailer collects Cannabis Purchaser
12Excise Tax measured by a purchase price that is not subject to
13Cannabis Purchaser Excise Tax, or if a cannabis retailer, in
14collecting Cannabis Purchaser Excise Tax measured by a purchase
15price that is subject to tax under this Act, collects more from
16the purchaser than the required amount of the Cannabis
17Purchaser Excise Tax on the transaction, the purchaser shall
18have a legal right to claim a refund of that amount from the
19cannabis retailer. If, however, that amount is not refunded to
20the purchaser for any reason, the cannabis retailer is liable
21to pay that amount to the Department.
22    (c) Any person purchasing cannabis subject to tax under
23this Article as to which there has been no charge made to him
24or her of the tax imposed by Section 65-10 shall make payment
25of the tax imposed by Section 65-10 in the form and manner
26provided by the Department not later than the 20th day of the

 

 

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1month following the month of purchase of the cannabis.
2(Source: P.A. 101-27, eff. 6-25-19.)
 
3    Section 30. The Illinois Vehicle Code is amended by
4changing Sections 2-118.2, 6-206.1, and 11-501.10 as follows:
 
5    (625 ILCS 5/2-118.2)
6    Sec. 2-118.2. Opportunity for hearing; cannabis-related
7suspension under Section 11-501.9.
8    (a) A suspension of driving privileges under Section
911-501.9 of this Code shall not become effective until the
10person is notified in writing of the impending suspension and
11informed that he or she may request a hearing in the circuit
12court of venue under subsection (b) of this Section and the
13suspension shall become effective as provided in Section
1411-501.9.
15    (b) Within 90 days after the notice of suspension served
16under Section 11-501.9, the person may make a written request
17for a judicial hearing in the circuit court of venue. The
18request to the circuit court shall state the grounds upon which
19the person seeks to have the suspension rescinded. Within 30
20days after receipt of the written request or the first
21appearance date on the Uniform Traffic Ticket issued for a
22violation of Section 11-501 of this Code, or a similar
23provision of a local ordinance, the hearing shall be conducted
24by the circuit court having jurisdiction. This judicial

 

 

SB1557 Enrolled- 376 -LRB101 08168 SMS 53234 b

1hearing, request, or process shall not stay or delay the
2suspension. The hearing shall proceed in the court in the same
3manner as in other civil proceedings.
4    The hearing may be conducted upon a review of the law
5enforcement officer's own official reports; provided however,
6that the person may subpoena the officer. Failure of the
7officer to answer the subpoena shall be considered grounds for
8a continuance if in the court's discretion the continuance is
9appropriate.
10    The scope of the hearing shall be limited to the issues of:
11        (1) Whether the officer had reasonable suspicion to
12    believe that the person was driving or in actual physical
13    control of a motor vehicle upon a highway while impaired by
14    the use of cannabis; and
15        (2) Whether the person, after being advised by the
16    officer that the privilege to operate a motor vehicle would
17    be suspended if the person refused to submit to and
18    complete the field sobriety tests or validated roadside
19    chemical tests, did refuse to submit to or complete the
20    field sobriety tests or validated roadside chemical tests
21    authorized under Section 11-501.9; and
22        (3) Whether the person after being advised by the
23    officer that the privilege to operate a motor vehicle would
24    be suspended if the person submitted to field sobriety
25    tests or validated roadside chemical tests that disclosed
26    the person was impaired by the use of cannabis, did submit

 

 

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1    to field sobriety tests or validated roadside chemical
2    tests that disclosed that the person was impaired by the
3    use of cannabis.
4    Upon the conclusion of the judicial hearing, the circuit
5court shall sustain or rescind the suspension and immediately
6notify the Secretary of State. Reports received by the
7Secretary of State under this Section shall be privileged
8information and for use only by the courts, police officers,
9and Secretary of State.
10(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)
 
11    (625 ILCS 5/6-206.1)  (from Ch. 95 1/2, par. 6-206.1)
12    Sec. 6-206.1. Monitoring Device Driving Permit.
13Declaration of Policy. It is hereby declared a policy of the
14State of Illinois that the driver who is impaired by alcohol,
15other drug or drugs, or intoxicating compound or compounds is a
16threat to the public safety and welfare. Therefore, to provide
17a deterrent to such practice, a statutory summary driver's
18license suspension is appropriate. It is also recognized that
19driving is a privilege and therefore, that the granting of
20driving privileges, in a manner consistent with public safety,
21is warranted during the period of suspension in the form of a
22monitoring device driving permit. A person who drives and fails
23to comply with the requirements of the monitoring device
24driving permit commits a violation of Section 6-303 of this
25Code.

 

 

SB1557 Enrolled- 378 -LRB101 08168 SMS 53234 b

1    The following procedures shall apply whenever a first
2offender, as defined in Section 11-500 of this Code, is
3arrested for any offense as defined in Section 11-501 or a
4similar provision of a local ordinance and is subject to the
5provisions of Section 11-501.1:
6    (a) Upon mailing of the notice of suspension of driving
7privileges as provided in subsection (h) of Section 11-501.1 of
8this Code, the Secretary shall also send written notice
9informing the person that he or she will be issued a monitoring
10device driving permit (MDDP). The notice shall include, at
11minimum, information summarizing the procedure to be followed
12for issuance of the MDDP, installation of the breath alcohol
13ignition installation device (BAIID), as provided in this
14Section, exemption from BAIID installation requirements, and
15procedures to be followed by those seeking indigent status, as
16provided in this Section. The notice shall also include
17information summarizing the procedure to be followed if the
18person wishes to decline issuance of the MDDP. A copy of the
19notice shall also be sent to the court of venue together with
20the notice of suspension of driving privileges, as provided in
21subsection (h) of Section 11-501. However, a MDDP shall not be
22issued if the Secretary finds that:
23        (1) the offender's driver's license is otherwise
24    invalid;
25        (2) death or great bodily harm to another resulted from
26    the arrest for Section 11-501;

 

 

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1        (3) the offender has been previously convicted of
2    reckless homicide or aggravated driving under the
3    influence involving death; or
4        (4) the offender is less than 18 years of age. ; or
5        (5) the offender is a qualifying patient licensed under
6    the Compassionate Use of Medical Cannabis Program Act who
7    is in possession of a valid registry card issued under that
8    Act and refused to submit to standardized field sobriety
9    tests as required by subsection (a) of Section 11-501.9 or
10    did submit to testing which disclosed the person was
11    impaired by the use of cannabis.
12    Any offender participating in the MDDP program must pay the
13Secretary a MDDP Administration Fee in an amount not to exceed
14$30 per month, to be deposited into the Monitoring Device
15Driving Permit Administration Fee Fund. The Secretary shall
16establish by rule the amount and the procedures, terms, and
17conditions relating to these fees. The offender must have an
18ignition interlock device installed within 14 days of the date
19the Secretary issues the MDDP. The ignition interlock device
20provider must notify the Secretary, in a manner and form
21prescribed by the Secretary, of the installation. If the
22Secretary does not receive notice of installation, the
23Secretary shall cancel the MDDP.
24    Upon receipt of the notice, as provided in paragraph (a) of
25this Section, the person may file a petition to decline
26issuance of the MDDP with the court of venue. The court shall

 

 

SB1557 Enrolled- 380 -LRB101 08168 SMS 53234 b

1admonish the offender of all consequences of declining issuance
2of the MDDP including, but not limited to, the enhanced
3penalties for driving while suspended. After being so
4admonished, the offender shall be permitted, in writing, to
5execute a notice declining issuance of the MDDP. This notice
6shall be filed with the court and forwarded by the clerk of the
7court to the Secretary. The offender may, at any time
8thereafter, apply to the Secretary for issuance of a MDDP.
9    (a-1) A person issued a MDDP may drive for any purpose and
10at any time, subject to the rules adopted by the Secretary
11under subsection (g). The person must, at his or her own
12expense, drive only vehicles equipped with an ignition
13interlock device as defined in Section 1-129.1, but in no event
14shall such person drive a commercial motor vehicle.
15    (a-2) Persons who are issued a MDDP and must drive
16employer-owned vehicles in the course of their employment
17duties may seek permission to drive an employer-owned vehicle
18that does not have an ignition interlock device. The employer
19shall provide to the Secretary a form, as prescribed by the
20Secretary, completed by the employer verifying that the
21employee must drive an employer-owned vehicle in the course of
22employment. If approved by the Secretary, the form must be in
23the driver's possession while operating an employer-owner
24vehicle not equipped with an ignition interlock device. No
25person may use this exemption to drive a school bus, school
26vehicle, or a vehicle designed to transport more than 15

 

 

SB1557 Enrolled- 381 -LRB101 08168 SMS 53234 b

1passengers. No person may use this exemption to drive an
2employer-owned motor vehicle that is owned by an entity that is
3wholly or partially owned by the person holding the MDDP, or by
4a family member of the person holding the MDDP. No person may
5use this exemption to drive an employer-owned vehicle that is
6made available to the employee for personal use. No person may
7drive the exempted vehicle more than 12 hours per day, 6 days
8per week.
9    (a-3) Persons who are issued a MDDP and who must drive a
10farm tractor to and from a farm, within 50 air miles from the
11originating farm are exempt from installation of a BAIID on the
12farm tractor, so long as the farm tractor is being used for the
13exclusive purpose of conducting farm operations.
14    (b) (Blank).
15    (c) (Blank).
16    (c-1) If the holder of the MDDP is convicted of or receives
17court supervision for a violation of Section 6-206.2, 6-303,
1811-204, 11-204.1, 11-401, 11-501, 11-503, 11-506 or a similar
19provision of a local ordinance or a similar out-of-state
20offense or is convicted of or receives court supervision for
21any offense for which alcohol or drugs is an element of the
22offense and in which a motor vehicle was involved (for an
23arrest other than the one for which the MDDP is issued), or
24de-installs the BAIID without prior authorization from the
25Secretary, the MDDP shall be cancelled.
26    (c-5) If the Secretary determines that the person seeking

 

 

SB1557 Enrolled- 382 -LRB101 08168 SMS 53234 b

1the MDDP is indigent, the Secretary shall provide the person
2with a written document as evidence of that determination, and
3the person shall provide that written document to an ignition
4interlock device provider. The provider shall install an
5ignition interlock device on that person's vehicle without
6charge to the person, and seek reimbursement from the Indigent
7BAIID Fund. If the Secretary has deemed an offender indigent,
8the BAIID provider shall also provide the normal monthly
9monitoring services and the de-installation without charge to
10the offender and seek reimbursement from the Indigent BAIID
11Fund. Any other monetary charges, such as a lockout fee or
12reset fee, shall be the responsibility of the MDDP holder. A
13BAIID provider may not seek a security deposit from the
14Indigent BAIID Fund.
15    (d) MDDP information shall be available only to the courts,
16police officers, and the Secretary, except during the actual
17period the MDDP is valid, during which time it shall be a
18public record.
19    (e) (Blank).
20    (f) (Blank).
21    (g) The Secretary shall adopt rules for implementing this
22Section. The rules adopted shall address issues including, but
23not limited to: compliance with the requirements of the MDDP;
24methods for determining compliance with those requirements;
25the consequences of noncompliance with those requirements;
26what constitutes a violation of the MDDP; methods for

 

 

SB1557 Enrolled- 383 -LRB101 08168 SMS 53234 b

1determining indigency; and the duties of a person or entity
2that supplies the ignition interlock device.
3    (h) The rules adopted under subsection (g) shall provide,
4at a minimum, that the person is not in compliance with the
5requirements of the MDDP if he or she:
6        (1) tampers or attempts to tamper with or circumvent
7    the proper operation of the ignition interlock device;
8        (2) provides valid breath samples that register blood
9    alcohol levels in excess of the number of times allowed
10    under the rules;
11        (3) fails to provide evidence sufficient to satisfy the
12    Secretary that the ignition interlock device has been
13    installed in the designated vehicle or vehicles; or
14        (4) fails to follow any other applicable rules adopted
15    by the Secretary.
16    (i) Any person or entity that supplies an ignition
17interlock device as provided under this Section shall, in
18addition to supplying only those devices which fully comply
19with all the rules adopted under subsection (g), provide the
20Secretary, within 7 days of inspection, all monitoring reports
21of each person who has had an ignition interlock device
22installed. These reports shall be furnished in a manner or form
23as prescribed by the Secretary.
24    (j) Upon making a determination that a violation of the
25requirements of the MDDP has occurred, the Secretary shall
26extend the summary suspension period for an additional 3 months

 

 

SB1557 Enrolled- 384 -LRB101 08168 SMS 53234 b

1beyond the originally imposed summary suspension period,
2during which time the person shall only be allowed to drive
3vehicles equipped with an ignition interlock device; provided
4further there are no limitations on the total number of times
5the summary suspension may be extended. The Secretary may,
6however, limit the number of extensions imposed for violations
7occurring during any one monitoring period, as set forth by
8rule. Any person whose summary suspension is extended pursuant
9to this Section shall have the right to contest the extension
10through a hearing with the Secretary, pursuant to Section 2-118
11of this Code. If the summary suspension has already terminated
12prior to the Secretary receiving the monitoring report that
13shows a violation, the Secretary shall be authorized to suspend
14the person's driving privileges for 3 months, provided that the
15Secretary may, by rule, limit the number of suspensions to be
16entered pursuant to this paragraph for violations occurring
17during any one monitoring period. Any person whose license is
18suspended pursuant to this paragraph, after the summary
19suspension had already terminated, shall have the right to
20contest the suspension through a hearing with the Secretary,
21pursuant to Section 2-118 of this Code. The only permit the
22person shall be eligible for during this new suspension period
23is a MDDP.
24    (k) A person who has had his or her summary suspension
25extended for the third time, or has any combination of 3
26extensions and new suspensions, entered as a result of a

 

 

SB1557 Enrolled- 385 -LRB101 08168 SMS 53234 b

1violation that occurred while holding the MDDP, so long as the
2extensions and new suspensions relate to the same summary
3suspension, shall have his or her vehicle impounded for a
4period of 30 days, at the person's own expense. A person who
5has his or her summary suspension extended for the fourth time,
6or has any combination of 4 extensions and new suspensions,
7entered as a result of a violation that occurred while holding
8the MDDP, so long as the extensions and new suspensions relate
9to the same summary suspension, shall have his or her vehicle
10subject to seizure and forfeiture. The Secretary shall notify
11the prosecuting authority of any third or fourth extensions or
12new suspension entered as a result of a violation that occurred
13while the person held a MDDP. Upon receipt of the notification,
14the prosecuting authority shall impound or forfeit the vehicle.
15The impoundment or forfeiture of a vehicle shall be conducted
16pursuant to the procedure specified in Article 36 of the
17Criminal Code of 2012.
18    (l) A person whose driving privileges have been suspended
19under Section 11-501.1 of this Code and who had a MDDP that was
20cancelled, or would have been cancelled had notification of a
21violation been received prior to expiration of the MDDP,
22pursuant to subsection (c-1) of this Section, shall not be
23eligible for reinstatement when the summary suspension is
24scheduled to terminate. Instead, the person's driving
25privileges shall be suspended for a period of not less than
26twice the original summary suspension period, or for the length

 

 

SB1557 Enrolled- 386 -LRB101 08168 SMS 53234 b

1of any extensions entered under subsection (j), whichever is
2longer. During the period of suspension, the person shall be
3eligible only to apply for a restricted driving permit. If a
4restricted driving permit is granted, the offender may only
5operate vehicles equipped with a BAIID in accordance with this
6Section.
7    (m) Any person or entity that supplies an ignition
8interlock device under this Section shall, for each ignition
9interlock device installed, pay 5% of the total gross revenue
10received for the device, including monthly monitoring fees,
11into the Indigent BAIID Fund. This 5% shall be clearly
12indicated as a separate surcharge on each invoice that is
13issued. The Secretary shall conduct an annual review of the
14fund to determine whether the surcharge is sufficient to
15provide for indigent users. The Secretary may increase or
16decrease this surcharge requirement as needed.
17    (n) Any person or entity that supplies an ignition
18interlock device under this Section that is requested to
19provide an ignition interlock device to a person who presents
20written documentation of indigency from the Secretary, as
21provided in subsection (c-5) of this Section, shall install the
22device on the person's vehicle without charge to the person and
23shall seek reimbursement from the Indigent BAIID Fund.
24    (o) The Indigent BAIID Fund is created as a special fund in
25the State treasury. The Secretary shall, subject to
26appropriation by the General Assembly, use all money in the

 

 

SB1557 Enrolled- 387 -LRB101 08168 SMS 53234 b

1Indigent BAIID Fund to reimburse ignition interlock device
2providers who have installed devices in vehicles of indigent
3persons. The Secretary shall make payments to such providers
4every 3 months. If the amount of money in the fund at the time
5payments are made is not sufficient to pay all requests for
6reimbursement submitted during that 3 month period, the
7Secretary shall make payments on a pro-rata basis, and those
8payments shall be considered payment in full for the requests
9submitted.
10    (p) The Monitoring Device Driving Permit Administration
11Fee Fund is created as a special fund in the State treasury.
12The Secretary shall, subject to appropriation by the General
13Assembly, use the money paid into this fund to offset its
14administrative costs for administering MDDPs.
15    (q) The Secretary is authorized to prescribe such forms as
16it deems necessary to carry out the provisions of this Section.
17(Source: P.A. 101-363, eff. 8-9-19.)
 
18    (625 ILCS 5/11-501.10)
19    (Section scheduled to be repealed on July 1, 2021)
20    Sec. 11-501.10. DUI Cannabis Task Force.
21    (a) The DUI Cannabis Task Force is hereby created to study
22the issue of driving under the influence of cannabis. The Task
23Force shall consist of the following members:
24        (1) The Director of State Police, or his or her
25    designee, who shall serve as chair;

 

 

SB1557 Enrolled- 388 -LRB101 08168 SMS 53234 b

1        (2) The Secretary of State, or his or her designee;
2        (3) The President of the Illinois State's Attorneys
3    Association, or his or her designee;
4        (4) The President of the Illinois Association of
5    Criminal Defense Lawyers, or his or her designee;
6        (5) One member appointed by the Speaker of the House of
7    Representatives;
8        (6) One member appointed by the Minority Leader of the
9    House of Representatives;
10        (7) One member appointed by the President of the
11    Senate;
12        (8) One member appointed by the Minority Leader of the
13    Senate;
14        (9) One member of an organization dedicated to end
15    drunk driving and drugged driving;
16        (10) The president of a statewide bar association,
17    appointed by the Governor; and
18        (11) One member of a statewide organization
19    representing civil and constitutional rights, appointed by
20    the Governor;
21        (12) One member of a statewide association
22    representing chiefs of police, appointed by the Governor;
23    and
24        (13) One member of a statewide association
25    representing sheriffs, appointed by the Governor.
26    (b) The members of the Task Force shall serve without

 

 

SB1557 Enrolled- 389 -LRB101 08168 SMS 53234 b

1compensation.
2    (c) The Task Force shall examine best practices in the area
3of driving under the influence of cannabis enforcement,
4including examining emerging technology in roadside testing.
5    (d) The Task Force shall meet no fewer than 3 times and
6shall present its report and recommendations on improvements to
7enforcement of driving under the influence of cannabis, in
8electronic format, to the Governor and the General Assembly no
9later than July 1, 2020.
10    (e) The Department of State Police shall provide
11administrative support to the Task Force as needed. The
12Sentencing Policy Advisory Council shall provide data on
13driving under the influence of cannabis offenses and other data
14to the Task Force as needed.
15    (f) This Section is repealed on July 1, 2021.
16(Source: P.A. 101-27, eff. 6-25-19.)
 
17    Section 35. The Cannabis Control Act is amended by changing
18Sections 3, 4, 5, 5.1, and 8 as follows:
 
19    (720 ILCS 550/3)  (from Ch. 56 1/2, par. 703)
20    Sec. 3. As used in this Act, unless the context otherwise
21requires:
22    (a) "Cannabis" includes marihuana, hashish and other
23substances which are identified as including any parts of the
24plant Cannabis Sativa, whether growing or not; the seeds

 

 

SB1557 Enrolled- 390 -LRB101 08168 SMS 53234 b

1thereof, the resin extracted from any part of such plant; and
2any compound, manufacture, salt, derivative, mixture, or
3preparation of such plant, its seeds, or resin, including
4tetrahydrocannabinol (THC) and all other cannabinol
5derivatives, including its naturally occurring or
6synthetically produced ingredients, whether produced directly
7or indirectly by extraction, or independently by means of
8chemical synthesis or by a combination of extraction and
9chemical synthesis; but shall not include the mature stalks of
10such plant, fiber produced from such stalks, oil or cake made
11from the seeds of such plant, any other compound, manufacture,
12salt, derivative, mixture, or preparation of such mature stalks
13(except the resin extracted therefrom), fiber, oil or cake, or
14the sterilized seed of such plant which is incapable of
15germination. "Cannabis" does not include industrial hemp as
16defined and authorized under the Industrial Hemp Act.
17    (b) "Casual delivery" means the delivery of not more than
1810 grams of any substance containing cannabis without
19consideration.
20    (c) "Department" means the Illinois Department of Human
21Services (as successor to the Department of Alcoholism and
22Substance Abuse) or its successor agency.
23    (d) "Deliver" or "delivery" means the actual, constructive
24or attempted transfer of possession of cannabis, with or
25without consideration, whether or not there is an agency
26relationship.

 

 

SB1557 Enrolled- 391 -LRB101 08168 SMS 53234 b

1    (e) "Department of State Police" means the Department of
2State Police of the State of Illinois or its successor agency.
3    (f) "Director" means the Director of the Department of
4State Police or his designated agent.
5    (g) "Local authorities" means a duly organized State,
6county, or municipal peace unit or police force.
7    (h) "Manufacture" means the production, preparation,
8propagation, compounding, conversion or processing of
9cannabis, either directly or indirectly, by extraction from
10substances of natural origin, or independently by means of
11chemical synthesis, or by a combination of extraction and
12chemical synthesis, and includes any packaging or repackaging
13of cannabis or labeling of its container, except that this term
14does not include the preparation, compounding, packaging, or
15labeling of cannabis as an incident to lawful research,
16teaching, or chemical analysis and not for sale.
17    (i) "Person" means any individual, corporation, government
18or governmental subdivision or agency, business trust, estate,
19trust, partnership or association, or any other entity.
20    (j) "Produce" or "production" means planting, cultivating,
21tending or harvesting.
22    (k) "State" includes the State of Illinois and any state,
23district, commonwealth, territory, insular possession thereof,
24and any area subject to the legal authority of the United
25States of America.
26    (l) "Subsequent offense" means an offense under this Act,

 

 

SB1557 Enrolled- 392 -LRB101 08168 SMS 53234 b

1the offender of which, prior to his conviction of the offense,
2has at any time been convicted under this Act or under any laws
3of the United States or of any state relating to cannabis, or
4any controlled substance as defined in the Illinois Controlled
5Substances Act.
6(Source: P.A. 100-1091, eff. 8-26-18.)
 
7    (720 ILCS 550/4)  (from Ch. 56 1/2, par. 704)
8    Sec. 4. Except as otherwise provided in the Cannabis
9Regulation and Tax Act and the Industrial Hemp Act, it is
10unlawful for any person knowingly to possess cannabis.
11    Any person who violates this Section with respect to:
12        (a) not more than 10 grams of any substance containing
13    cannabis is guilty of a civil law violation punishable by a
14    minimum fine of $100 and a maximum fine of $200. The
15    proceeds of the fine shall be payable to the clerk of the
16    circuit court. Within 30 days after the deposit of the
17    fine, the clerk shall distribute the proceeds of the fine
18    as follows:
19            (1) $10 of the fine to the circuit clerk and $10 of
20        the fine to the law enforcement agency that issued the
21        citation; the proceeds of each $10 fine distributed to
22        the circuit clerk and each $10 fine distributed to the
23        law enforcement agency that issued the citation for the
24        violation shall be used to defer the cost of automatic
25        expungements under paragraph (2.5) of subsection (a)

 

 

SB1557 Enrolled- 393 -LRB101 08168 SMS 53234 b

1        of Section 5.2 of the Criminal Identification Act;
2            (2) $15 to the county to fund drug addiction
3        services;
4            (3) $10 to the Office of the State's Attorneys
5        Appellate Prosecutor for use in training programs;
6            (4) $10 to the State's Attorney; and
7            (5) any remainder of the fine to the law
8        enforcement agency that issued the citation for the
9        violation.
10        With respect to funds designated for the Department of
11    State Police, the moneys shall be remitted by the circuit
12    court clerk to the Department of State Police within one
13    month after receipt for deposit into the State Police
14    Operations Assistance Fund. With respect to funds
15    designated for the Department of Natural Resources, the
16    Department of Natural Resources shall deposit the moneys
17    into the Conservation Police Operations Assistance Fund;
18        (b) more than 10 grams but not more than 30 grams of
19    any substance containing cannabis is guilty of a Class B
20    misdemeanor;
21        (c) more than 30 grams but not more than 100 grams of
22    any substance containing cannabis is guilty of a Class A
23    misdemeanor; provided, that if any offense under this
24    subsection (c) is a subsequent offense, the offender shall
25    be guilty of a Class 4 felony;
26        (d) more than 100 grams but not more than 500 grams of

 

 

SB1557 Enrolled- 394 -LRB101 08168 SMS 53234 b

1    any substance containing cannabis is guilty of a Class 4
2    felony; provided that if any offense under this subsection
3    (d) is a subsequent offense, the offender shall be guilty
4    of a Class 3 felony;
5        (e) more than 500 grams but not more than 2,000 grams
6    of any substance containing cannabis is guilty of a Class 3
7    felony;
8        (f) more than 2,000 grams but not more than 5,000 grams
9    of any substance containing cannabis is guilty of a Class 2
10    felony;
11        (g) more than 5,000 grams of any substance containing
12    cannabis is guilty of a Class 1 felony.
13(Source: P.A. 101-27, eff. 6-25-19.)
 
14    (720 ILCS 550/5)  (from Ch. 56 1/2, par. 705)
15    Sec. 5. Except as otherwise provided in the Cannabis
16Regulation and Tax Act and the Industrial Hemp Act, it is
17unlawful for any person knowingly to manufacture, deliver, or
18possess with intent to deliver, or manufacture, cannabis. Any
19person who violates this Section with respect to:
20        (a) not more than 2.5 grams of any substance containing
21    cannabis is guilty of a Class B misdemeanor;
22        (b) more than 2.5 grams but not more than 10 grams of
23    any substance containing cannabis is guilty of a Class A
24    misdemeanor;
25        (c) more than 10 grams but not more than 30 grams of

 

 

SB1557 Enrolled- 395 -LRB101 08168 SMS 53234 b

1    any substance containing cannabis is guilty of a Class 4
2    felony;
3        (d) more than 30 grams but not more than 500 grams of
4    any substance containing cannabis is guilty of a Class 3
5    felony for which a fine not to exceed $50,000 may be
6    imposed;
7        (e) more than 500 grams but not more than 2,000 grams
8    of any substance containing cannabis is guilty of a Class 2
9    felony for which a fine not to exceed $100,000 may be
10    imposed;
11        (f) more than 2,000 grams but not more than 5,000 grams
12    of any substance containing cannabis is guilty of a Class 1
13    felony for which a fine not to exceed $150,000 may be
14    imposed;
15        (g) more than 5,000 grams of any substance containing
16    cannabis is guilty of a Class X felony for which a fine not
17    to exceed $200,000 may be imposed.
18(Source: P.A. 101-27, eff. 6-25-19.)
 
19    (720 ILCS 550/5.1)  (from Ch. 56 1/2, par. 705.1)
20    Sec. 5.1. Cannabis trafficking.
21    (a) Except for purposes authorized by this Act, the
22Industrial Hemp Act, or the Cannabis Regulation and Tax Act,
23any person who knowingly brings or causes to be brought into
24this State for the purpose of manufacture or delivery or with
25the intent to manufacture or deliver 2,500 grams or more of

 

 

SB1557 Enrolled- 396 -LRB101 08168 SMS 53234 b

1cannabis in this State or any other state or country is guilty
2of cannabis trafficking.
3    (b) A person convicted of cannabis trafficking shall be
4sentenced to a term of imprisonment not less than twice the
5minimum term and fined an amount as authorized by subsection
6(f) or (g) of Section 5 of this Act, based upon the amount of
7cannabis brought or caused to be brought into this State, and
8not more than twice the maximum term of imprisonment and fined
9twice the amount as authorized by subsection (f) or (g) of
10Section 5 of this Act, based upon the amount of cannabis
11brought or caused to be brought into this State.
12(Source: P.A. 101-27, eff. 6-25-19.)
 
13    (720 ILCS 550/8)  (from Ch. 56 1/2, par. 708)
14    Sec. 8. Except as otherwise provided in the Cannabis
15Regulation and Tax Act and the Industrial Hemp Act, it is
16unlawful for any person knowingly to produce the Cannabis
17sativa plant or to possess such plants unless production or
18possession has been authorized pursuant to the provisions of
19Section 11 or 15.2 of the Act. Any person who violates this
20Section with respect to production or possession of:
21        (a) Not more than 5 plants is guilty of a civil
22    violation punishable by a minimum fine of $100 and a
23    maximum fine of $200. The proceeds of the fine are payable
24    to the clerk of the circuit court. Within 30 days after the
25    deposit of the fine, the clerk shall distribute the

 

 

SB1557 Enrolled- 397 -LRB101 08168 SMS 53234 b

1    proceeds of the fine as follows:
2            (1) $10 of the fine to the circuit clerk and $10 of
3        the fine to the law enforcement agency that issued the
4        citation; the proceeds of each $10 fine distributed to
5        the circuit clerk and each $10 fine distributed to the
6        law enforcement agency that issued the citation for the
7        violation shall be used to defer the cost of automatic
8        expungements under paragraph (2.5) of subsection (a)
9        of Section 5.2 of the Criminal Identification Act;
10            (2) $15 to the county to fund drug addiction
11        services;
12            (3) $10 to the Office of the State's Attorneys
13        Appellate Prosecutor for use in training programs;
14            (4) $10 to the State's Attorney; and
15            (5) any remainder of the fine to the law
16        enforcement agency that issued the citation for the
17        violation.
18        With respect to funds designated for the Department of
19    State Police, the moneys shall be remitted by the circuit
20    court clerk to the Department of State Police within one
21    month after receipt for deposit into the State Police
22    Operations Assistance Fund. With respect to funds
23    designated for the Department of Natural Resources, the
24    Department of Natural Resources shall deposit the moneys
25    into the Conservation Police Operations Assistance Fund.
26        (b) More than 5, but not more than 20 plants, is guilty

 

 

SB1557 Enrolled- 398 -LRB101 08168 SMS 53234 b

1    of a Class 4 felony.
2        (c) More than 20, but not more than 50 plants, is
3    guilty of a Class 3 felony.
4        (d) More than 50, but not more than 200 plants, is
5    guilty of a Class 2 felony for which a fine not to exceed
6    $100,000 may be imposed and for which liability for the
7    cost of conducting the investigation and eradicating such
8    plants may be assessed. Compensation for expenses incurred
9    in the enforcement of this provision shall be transmitted
10    to and deposited in the treasurer's office at the level of
11    government represented by the Illinois law enforcement
12    agency whose officers or employees conducted the
13    investigation or caused the arrest or arrests leading to
14    the prosecution, to be subsequently made available to that
15    law enforcement agency as expendable receipts for use in
16    the enforcement of laws regulating controlled substances
17    and cannabis. If such seizure was made by a combination of
18    law enforcement personnel representing different levels of
19    government, the court levying the assessment shall
20    determine the allocation of such assessment. The proceeds
21    of assessment awarded to the State treasury shall be
22    deposited in a special fund known as the Drug Traffic
23    Prevention Fund.
24        (e) More than 200 plants is guilty of a Class 1 felony
25    for which a fine not to exceed $100,000 may be imposed and
26    for which liability for the cost of conducting the

 

 

SB1557 Enrolled- 399 -LRB101 08168 SMS 53234 b

1    investigation and eradicating such plants may be assessed.
2    Compensation for expenses incurred in the enforcement of
3    this provision shall be transmitted to and deposited in the
4    treasurer's office at the level of government represented
5    by the Illinois law enforcement agency whose officers or
6    employees conducted the investigation or caused the arrest
7    or arrests leading to the prosecution, to be subsequently
8    made available to that law enforcement agency as expendable
9    receipts for use in the enforcement of laws regulating
10    controlled substances and cannabis. If such seizure was
11    made by a combination of law enforcement personnel
12    representing different levels of government, the court
13    levying the assessment shall determine the allocation of
14    such assessment. The proceeds of assessment awarded to the
15    State treasury shall be deposited in a special fund known
16    as the Drug Traffic Prevention Fund.
17(Source: P.A. 101-27, eff. 6-25-19.)
 
18    Section 40. The Drug Paraphernalia Control Act is amended
19by changing Sections 2, 3.5, 4, and 6 as follows:
 
20    (720 ILCS 600/2)  (from Ch. 56 1/2, par. 2102)
21    Sec. 2. As used in this Act, unless the context otherwise
22requires:
23    (a) The term "cannabis" shall have the meaning ascribed to
24it in Section 3 of the Cannabis Control Act, as if that

 

 

SB1557 Enrolled- 400 -LRB101 08168 SMS 53234 b

1definition were incorporated herein.
2    (b) The term "controlled substance" shall have the meaning
3ascribed to it in Section 102 of the Illinois Controlled
4Substances Act, as if that definition were incorporated herein.
5    (c) "Deliver" or "delivery" means the actual, constructive
6or attempted transfer of possession, with or without
7consideration, whether or not there is an agency relationship.
8    (d) "Drug paraphernalia" means all equipment, products and
9materials of any kind, other than methamphetamine
10manufacturing materials as defined in Section 10 of the
11Methamphetamine Control and Community Protection Act and
12cannabis paraphernalia as defined in Section 1-10 of the
13Cannabis Regulation and Tax Act, which are intended to be used
14unlawfully in planting, propagating, cultivating, growing,
15harvesting, manufacturing, compounding, converting, producing,
16processing, preparing, testing, analyzing, packaging,
17repackaging, storing, containing, concealing, injecting,
18ingesting, inhaling or otherwise introducing into the human
19body cannabis or a controlled substance in violation of the
20Cannabis Control Act, the Illinois Controlled Substances Act,
21or the Methamphetamine Control and Community Protection Act or
22a synthetic drug product or misbranded drug in violation of the
23Illinois Food, Drug and Cosmetic Act. It includes, but is not
24limited to:
25        (1) kits intended to be used unlawfully in
26    manufacturing, compounding, converting, producing,

 

 

SB1557 Enrolled- 401 -LRB101 08168 SMS 53234 b

1    processing or preparing cannabis or a controlled
2    substance;
3        (2) isomerization devices intended to be used
4    unlawfully in increasing the potency of any species of
5    plant which is cannabis or a controlled substance;
6        (3) testing equipment intended to be used unlawfully in
7    a private home for identifying or in analyzing the
8    strength, effectiveness or purity of cannabis or
9    controlled substances;
10        (4) diluents and adulterants intended to be used
11    unlawfully for cutting cannabis or a controlled substance
12    by private persons;
13        (5) objects intended to be used unlawfully in
14    ingesting, inhaling, or otherwise introducing cannabis,
15    cocaine, hashish, hashish oil, or a synthetic drug product
16    or misbranded drug in violation of the Illinois Food, Drug
17    and Cosmetic Act into the human body including, where
18    applicable, the following items:
19            (A) water pipes;
20            (B) carburetion tubes and devices;
21            (C) smoking and carburetion masks;
22            (D) miniature cocaine spoons and cocaine vials;
23            (E) carburetor pipes;
24            (F) electric pipes;
25            (G) air-driven pipes;
26            (H) chillums;

 

 

SB1557 Enrolled- 402 -LRB101 08168 SMS 53234 b

1            (I) bongs;
2            (J) ice pipes or chillers;
3        (6) any item whose purpose, as announced or described
4    by the seller, is for use in violation of this Act.
5(Source: P.A. 97-872, eff. 7-31-12.)
 
6    (720 ILCS 600/3.5)
7    Sec. 3.5. Possession of drug paraphernalia.
8    (a) A person who knowingly possesses an item of drug
9paraphernalia with the intent to use it in ingesting, inhaling,
10or otherwise introducing cannabis or a controlled substance
11into the human body, or in preparing cannabis or a controlled
12substance for that use, is guilty of a Class A misdemeanor for
13which the court shall impose a minimum fine of $750 in addition
14to any other penalty prescribed for a Class A misdemeanor. This
15subsection (a) does not apply to a person who is legally
16authorized to possess hypodermic syringes or needles under the
17Hypodermic Syringes and Needles Act.
18    (b) In determining intent under subsection (a), the trier
19of fact may take into consideration the proximity of the
20cannabis or controlled substances to drug paraphernalia or the
21presence of cannabis or a controlled substance on the drug
22paraphernalia.
23    (c) If a person violates subsection (a) of Section 4 of the
24Cannabis Control Act, the penalty for possession of any drug
25paraphernalia seized during the violation for that offense

 

 

SB1557 Enrolled- 403 -LRB101 08168 SMS 53234 b

1shall be a civil law violation punishable by a minimum fine of
2$100 and a maximum fine of $200. The proceeds of the fine shall
3be payable to the clerk of the circuit court. Within 30 days
4after the deposit of the fine, the clerk shall distribute the
5proceeds of the fine as follows:
6        (1) $10 of the fine to the circuit clerk and $10 of the
7    fine to the law enforcement agency that issued the
8    citation; the proceeds of each $10 fine distributed to the
9    circuit clerk and each $10 fine distributed to the law
10    enforcement agency that issued the citation for the
11    violation shall be used to defer the cost of automatic
12    expungements under paragraph (2.5) of subsection (a) of
13    Section 5.2 of the Criminal Identification Act;
14        (2) $15 to the county to fund drug addiction services;
15        (3) $10 to the Office of the State's Attorneys
16    Appellate Prosecutor for use in training programs;
17        (4) $10 to the State's Attorney; and
18        (5) any remainder of the fine to the law enforcement
19    agency that issued the citation for the violation.
20    With respect to funds designated for the Department of
21State Police, the moneys shall be remitted by the circuit court
22clerk to the Department of State Police within one month after
23receipt for deposit into the State Police Operations Assistance
24Fund. With respect to funds designated for the Department of
25Natural Resources, the Department of Natural Resources shall
26deposit the moneys into the Conservation Police Operations

 

 

SB1557 Enrolled- 404 -LRB101 08168 SMS 53234 b

1Assistance Fund.
2(Source: P.A. 99-697, eff. 7-29-16.)
 
3    (720 ILCS 600/4)  (from Ch. 56 1/2, par. 2104)
4    Sec. 4. Exemptions. This Act does not apply to:
5        (a) Items used in the preparation, compounding,
6    packaging, labeling, or other use of cannabis or a
7    controlled substance as an incident to lawful research,
8    teaching, or chemical analysis and not for sale.
9        (b) Items historically and customarily used in
10    connection with the planting, propagating, cultivating,
11    growing, harvesting, manufacturing, compounding,
12    converting, producing, processing, preparing, testing,
13    analyzing, packaging, repackaging, storing, containing,
14    concealing, injecting, ingesting, or inhaling of cannabis,
15    tobacco, or any other lawful substance.
16        Items exempt under this subsection include, but are not
17    limited to, garden hoes, rakes, sickles, baggies, tobacco
18    pipes, and cigarette-rolling papers.
19        (c) Items listed in Section 2 of this Act which are
20    used for decorative purposes, when such items have been
21    rendered completely inoperable or incapable of being used
22    for any illicit purpose prohibited by this Act.
23        (d) A person who is legally authorized to possess
24    hypodermic syringes or needles under the Hypodermic
25    Syringes and Needles Act.

 

 

SB1557 Enrolled- 405 -LRB101 08168 SMS 53234 b

1In determining whether or not a particular item is exempt under
2this Section, the trier of fact should consider, in addition to
3all other logically relevant factors, the following:
4        (1) the general, usual, customary, and historical use
5        to which the item involved has been put;
6        (2) expert evidence concerning the ordinary or
7        customary use of the item and the effect of any
8        peculiarity in the design or engineering of the device
9        upon its functioning;
10        (3) any written instructions accompanying the delivery
11        of the item concerning the purposes or uses to which
12        the item can or may be put;
13        (4) any oral instructions provided by the seller of the
14        item at the time and place of sale or commercial
15        delivery;
16        (5) any national or local advertising concerning the
17        design, purpose or use of the item involved, and the
18        entire context in which such advertising occurs;
19        (6) the manner, place and circumstances in which the
20        item was displayed for sale, as well as any item or
21        items displayed for sale or otherwise exhibited upon
22        the premises where the sale was made;
23        (7) whether the owner or anyone in control of the
24        object is a legitimate supplier of like or related
25        items to the community, such as a licensed distributor
26        or dealer of cannabis or tobacco products;

 

 

SB1557 Enrolled- 406 -LRB101 08168 SMS 53234 b

1        (8) the existence and scope of legitimate uses for the
2        object in the community.
3(Source: P.A. 95-331, eff. 8-21-07.)
 
4    (720 ILCS 600/6)  (from Ch. 56 1/2, par. 2106)
5    Sec. 6. This Act is intended to be used solely for the
6suppression of the commercial traffic in and possession of
7items that, within the context of the sale or offering for
8sale, or possession, are clearly and beyond a reasonable doubt
9intended for the illegal and unlawful use of cannabis or
10controlled substances. To this end all reasonable and
11common-sense inferences shall be drawn in favor of the
12legitimacy of any transaction or item.
13(Source: P.A. 93-526, eff. 8-12-03.)
 
14    Section 45. The Statewide Grand Jury Act is amended by
15changing Sections 2 and 3 as follows:
 
16    (725 ILCS 215/2)  (from Ch. 38, par. 1702)
17    Sec. 2. (a) County grand juries and State's Attorneys have
18always had and shall continue to have primary responsibility
19for investigating, indicting, and prosecuting persons who
20violate the criminal laws of the State of Illinois. However, in
21recent years organized terrorist activity directed against
22innocent civilians and certain criminal enterprises have
23developed that require investigation, indictment, and

 

 

SB1557 Enrolled- 407 -LRB101 08168 SMS 53234 b

1prosecution on a statewide or multicounty level. The criminal
2enterprises exist as a result of the allure of profitability
3present in narcotic activity, the unlawful sale and transfer of
4firearms, and streetgang related felonies and organized
5terrorist activity is supported by the contribution of money
6and expert assistance from geographically diverse sources. In
7order to shut off the life blood of terrorism and weaken or
8eliminate the criminal enterprises, assets, and property used
9to further these offenses must be frozen, and any profit must
10be removed. State statutes exist that can accomplish that goal.
11Among them are the offense of money laundering, the Cannabis
12and Controlled Substances Tax Act, violations of Article 29D of
13the Criminal Code of 1961 or the Criminal Code of 2012, the
14Narcotics Profit Forfeiture Act, and gunrunning. Local
15prosecutors need investigative personnel and specialized
16training to attack and eliminate these profits. In light of the
17transitory and complex nature of conduct that constitutes these
18criminal activities, the many diverse property interests that
19may be used, acquired directly or indirectly as a result of
20these criminal activities, and the many places that illegally
21obtained property may be located, it is the purpose of this Act
22to create a limited, multicounty Statewide Grand Jury with
23authority to investigate, indict, and prosecute: narcotic
24activity, including cannabis and controlled substance
25trafficking, narcotics racketeering, money laundering,
26violations of the Cannabis and Controlled Substances Tax Act,

 

 

SB1557 Enrolled- 408 -LRB101 08168 SMS 53234 b

1and violations of Article 29D of the Criminal Code of 1961 or
2the Criminal Code of 2012; the unlawful sale and transfer of
3firearms; gunrunning; and streetgang related felonies.
4    (b) A Statewide Grand Jury may also investigate, indict,
5and prosecute violations facilitated by the use of a computer
6of any of the following offenses: indecent solicitation of a
7child, sexual exploitation of a child, soliciting for a
8juvenile prostitute, keeping a place of juvenile prostitution,
9juvenile pimping, child pornography, aggravated child
10pornography, or promoting juvenile prostitution except as
11described in subdivision (a)(4) of Section 11-14.4 of the
12Criminal Code of 1961 or the Criminal Code of 2012.
13(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)
 
14    (725 ILCS 215/3)  (from Ch. 38, par. 1703)
15    Sec. 3. Written application for the appointment of a
16Circuit Judge to convene and preside over a Statewide Grand
17Jury, with jurisdiction extending throughout the State, shall
18be made to the Chief Justice of the Supreme Court. Upon such
19written application, the Chief Justice of the Supreme Court
20shall appoint a Circuit Judge from the circuit where the
21Statewide Grand Jury is being sought to be convened, who shall
22make a determination that the convening of a Statewide Grand
23Jury is necessary.
24    In such application the Attorney General shall state that
25the convening of a Statewide Grand Jury is necessary because of

 

 

SB1557 Enrolled- 409 -LRB101 08168 SMS 53234 b

1an alleged offense or offenses set forth in this Section
2involving more than one county of the State and identifying any
3such offense alleged; and
4        (a) that he or she believes that the grand jury
5    function for the investigation and indictment of the
6    offense or offenses cannot effectively be performed by a
7    county grand jury together with the reasons for such
8    belief, and
9        (b)(1) that each State's Attorney with jurisdiction
10    over an offense or offenses to be investigated has
11    consented to the impaneling of the Statewide Grand Jury, or
12        (2) if one or more of the State's Attorneys having
13    jurisdiction over an offense or offenses to be investigated
14    fails to consent to the impaneling of the Statewide Grand
15    Jury, the Attorney General shall set forth good cause for
16    impaneling the Statewide Grand Jury.
17    If the Circuit Judge determines that the convening of a
18Statewide Grand Jury is necessary, he or she shall convene and
19impanel the Statewide Grand Jury with jurisdiction extending
20throughout the State to investigate and return indictments:
21        (a) For violations of any of the following or for any
22    other criminal offense committed in the course of violating
23    any of the following: Article 29D of the Criminal Code of
24    1961 or the Criminal Code of 2012, the Illinois Controlled
25    Substances Act, the Cannabis Control Act, the
26    Methamphetamine Control and Community Protection Act, or

 

 

SB1557 Enrolled- 410 -LRB101 08168 SMS 53234 b

1    the Narcotics Profit Forfeiture Act, or the Cannabis and
2    Controlled Substances Tax Act; a streetgang related felony
3    offense; Section 24-2.1, 24-2.2, 24-3, 24-3A, 24-3.1,
4    24-3.3, 24-3.4, 24-4, or 24-5 or subsection 24-1(a)(4),
5    24-1(a)(6), 24-1(a)(7), 24-1(a)(9), 24-1(a)(10), or
6    24-1(c) of the Criminal Code of 1961 or the Criminal Code
7    of 2012; or a money laundering offense; provided that the
8    violation or offense involves acts occurring in more than
9    one county of this State; and
10        (a-5) For violations facilitated by the use of a
11    computer, including the use of the Internet, the World Wide
12    Web, electronic mail, message board, newsgroup, or any
13    other commercial or noncommercial on-line service, of any
14    of the following offenses: indecent solicitation of a
15    child, sexual exploitation of a child, soliciting for a
16    juvenile prostitute, keeping a place of juvenile
17    prostitution, juvenile pimping, child pornography,
18    aggravated child pornography, or promoting juvenile
19    prostitution except as described in subdivision (a)(4) of
20    Section 11-14.4 of the Criminal Code of 1961 or the
21    Criminal Code of 2012; and
22        (b) For the offenses of perjury, subornation of
23    perjury, communicating with jurors and witnesses, and
24    harassment of jurors and witnesses, as they relate to
25    matters before the Statewide Grand Jury.
26    "Streetgang related" has the meaning ascribed to it in

 

 

SB1557 Enrolled- 411 -LRB101 08168 SMS 53234 b

1Section 10 of the Illinois Streetgang Terrorism Omnibus
2Prevention Act.
3    Upon written application by the Attorney General for the
4convening of an additional Statewide Grand Jury, the Chief
5Justice of the Supreme Court shall appoint a Circuit Judge from
6the circuit for which the additional Statewide Grand Jury is
7sought. The Circuit Judge shall determine the necessity for an
8additional Statewide Grand Jury in accordance with the
9provisions of this Section. No more than 2 Statewide Grand
10Juries may be empaneled at any time.
11(Source: P.A. 96-1551, eff. 7-1-11; 97-1150, eff. 1-25-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.