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

 

 

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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

 

 

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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
20