Public Act 101-0027
 
HB1438 EnrolledLRB101 04919 JRG 49928 b

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

 
    Section 1-1. Short title. This Act may be cited as the
Cannabis Regulation and Tax Act.
 
    Section 1-5. Findings.
    (a) In the interest of allowing law enforcement to focus on
violent and property crimes, generating revenue for education,
substance abuse prevention and treatment, freeing public
resources to invest in communities and other public purposes,
and individual freedom, the General Assembly finds and declares
that the use of cannabis should be legal for persons 21 years
of age or older and should be taxed in a manner similar to
alcohol.
    (b) In the interest of the health and public safety of the
residents of Illinois, the General Assembly further finds and
declares that cannabis should be regulated in a manner similar
to alcohol so that:
        (1) persons will have to show proof of age before
    purchasing cannabis;
        (2) selling, distributing, or transferring cannabis to
    minors and other persons under 21 years of age shall remain
    illegal;
        (3) driving under the influence of cannabis shall
    remain illegal;
        (4) legitimate, taxpaying business people, and not
    criminal actors, will conduct sales of cannabis;
        (5) cannabis sold in this State will be tested,
    labeled, and subject to additional regulation to ensure
    that purchasers are informed and protected; and
        (6) purchasers will be informed of any known health
    risks associated with the use of cannabis, as concluded by
    evidence-based, peer reviewed research.
    (c) The General Assembly further finds and declares that it
is necessary to ensure consistency and fairness in the
application of this Act throughout the State and that,
therefore, the matters addressed by this Act are, except as
specified in this Act, matters of statewide concern.
    (d) The General Assembly further finds and declares that
this Act shall not diminish the State's duties and commitment
to seriously ill patients registered under the Compassionate
Use of Medical Cannabis Pilot Program Act, nor alter the
protections granted to them.
    (e) The General Assembly supports and encourages labor
neutrality in the cannabis industry and further finds and
declares that employee workplace safety shall not be diminished
and employer workplace policies shall be interpreted broadly to
protect employee safety.
 
    Section 1-10. Definitions. In this Act:
    "Adult Use Cultivation Center License" means a license
issued by the Department of Agriculture that permits a person
to act as a cultivation center under this Act and any
administrative rule made in furtherance of this Act.
    "Adult Use Dispensing Organization License" means a
license issued by the Department of Financial and Professional
Regulation that permits a person to act as a dispensing
organization under this Act and any administrative rule made in
furtherance of this Act.
    "Advertise" means to engage in promotional activities
including, but not limited to: newspaper, radio, Internet and
electronic media, and television advertising; the distribution
of fliers and circulars; and the display of window and interior
signs.
    "BLS Region" means a region in Illinois used by the United
States Bureau of Labor Statistics to gather and categorize
certain employment and wage data. The 17 such regions in
Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
Rockford, St. Louis, Springfield, Northwest Illinois
nonmetropolitan area, West Central Illinois nonmetropolitan
area, East Central Illinois nonmetropolitan area, and South
Illinois nonmetropolitan area.
    "Cannabis" means marijuana, hashish, and other substances
that are identified as including any parts of the plant
Cannabis sativa and including derivatives or subspecies, such
as indica, of all strains of cannabis, whether growing or not;
the seeds thereof, the resin extracted from any part of the
plant; and any compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin,
including tetrahydrocannabinol (THC) and all other naturally
produced cannabinol derivatives, whether produced directly or
indirectly by extraction; however, "cannabis" does not include
the mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
from it), fiber, oil or cake, or the sterilized seed of the
plant that is incapable of germination. "Cannabis" does not
include industrial hemp as defined and authorized under the
Industrial Hemp Act. "Cannabis" also means concentrate and
cannabis-infused products.
    "Cannabis business establishment" means a cultivation
center, craft grower, processing organization, dispensing
organization, or transporting organization.
    "Cannabis concentrate" means a product derived from
cannabis that is produced by extracting cannabinoids from the
plant through the use of propylene glycol, glycerin, butter,
olive oil or other typical cooking fats; water, ice, or dry
ice; or butane, propane, CO2, ethanol, or isopropanol. The use
of any other solvent is expressly prohibited unless and until
it is approved by the Department of Agriculture.
    "Cannabis container" means a sealed, traceable, container,
or package used for the purpose of containment of cannabis or
cannabis-infused product during transportation.
    "Cannabis flower" means marijuana, hashish, and other
substances that are identified as including any parts of the
plant Cannabis sativa and including derivatives or subspecies,
such as indica, of all strains of cannabis; including raw kief,
leaves, and buds, but not resin that has been extracted from
any part of such plant; nor any compound, manufacture, salt,
derivative, mixture, or preparation of such plant, its seeds,
or resin.
    "Cannabis-infused product" means a beverage, food, oil,
ointment, tincture, topical formulation, or another product
containing cannabis that is not intended to be smoked.
    "Cannabis plant monitoring system" or "plant monitoring
system" means a system that includes, but is not limited to,
testing and data collection established and maintained by the
cultivation center, craft grower, or processing organization
and that is available to the Department of Revenue, the
Department of Agriculture, the Department of Financial and
Professional Regulation, and the Department of State Police for
the purposes of documenting each cannabis plant and monitoring
plant development throughout the life cycle of a cannabis plant
cultivated for the intended use by a customer from seed
planting to final packaging.
    "Cannabis testing facility" means an entity registered by
the Department of Agriculture to test cannabis for potency and
contaminants.
    "Clone" means a plant section from a female cannabis plant
not yet rootbound, growing in a water solution or other
propagation matrix, that is capable of developing into a new
plant.
    "Community College Cannabis Vocational Training Pilot
Program faculty participant" means a person who is 21 years of
age or older, licensed by the Department of Agriculture, and is
employed or contracted by an Illinois community college to
provide student instruction using cannabis plants at an
Illinois Community College.
    "Community College Cannabis Vocational Training Pilot
Program faculty participant Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as Community College Cannabis Vocational
Training Pilot Program faculty participant.
    "Conditional Adult Use Dispensing Organization License"
means a license awarded to top-scoring applicants for an Adult
Use Dispensing Organization License that reserves the right to
an adult use dispensing organization license if the applicant
meets certain conditions described in this Act, but does not
entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products.
    "Conditional Adult Use Cultivation Center License" means a
license awarded to top-scoring applicants for an Adult Use
Cultivation Center License that reserves the right to an Adult
Use Cultivation Center License if the applicant meets certain
conditions as determined by the Department of Agriculture by
rule, but does not entitle the recipient to begin growing,
processing, or selling cannabis or cannabis-infused products.
    "Craft grower" means a facility operated by an organization
or business that is licensed by the Department of Agriculture
to cultivate, dry, cure, and package cannabis and perform other
necessary activities to make cannabis available for sale at a
dispensing organization or use at a processing organization. A
craft grower may contain up to 5,000 square feet of canopy
space on its premises for plants in the flowering state. The
Department of Agriculture may authorize an increase or decrease
of flowering stage cultivation space in increments of 3,000
square feet by rule based on market need, craft grower
capacity, and the licensee's history of compliance or
noncompliance, with a maximum space of 14,000 square feet for
cultivating plants in the flowering stage, which must be
cultivated in all stages of growth in an enclosed and secure
area. A craft grower may share premises with a processing
organization or a dispensing organization, or both, provided
each licensee stores currency and cannabis or cannabis-infused
products in a separate secured vault to which the other
licensee does not have access or all licensees sharing a vault
share more than 50% of the same ownership.
    "Craft grower agent" means a principal officer, board
member, employee, or other agent of a craft grower who is 21
years of age or older.
    "Craft Grower Agent Identification Card" means a document
issued by the Department of Agriculture that identifies a
person as a craft grower agent.
    "Cultivation center" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to cultivate, process, transport (unless otherwise
limited by this Act), and perform other necessary activities to
provide cannabis and cannabis-infused products to cannabis
business establishments.
    "Cultivation center agent" means a principal officer,
board member, employee, or other agent of a cultivation center
who is 21 years of age or older.
    "Cultivation Center Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a cultivation center agent.
    "Currency" means currency and coin of the United States.
    "Dispensary" means a facility operated by a dispensing
organization at which activities licensed by this Act may
occur.
    "Dispensing organization" means a facility operated by an
organization or business that is licensed by the Department of
Financial and Professional Regulation to acquire cannabis from
a cultivation center, craft grower, processing organization,
or another dispensary for the purpose of selling or dispensing
cannabis, cannabis-infused products, cannabis seeds,
paraphernalia, or related supplies under this Act to purchasers
or to qualified registered medical cannabis patients and
caregivers. As used in this Act, dispensary organization shall
include a registered medical cannabis organization as defined
in the Compassionate Use of Medical Cannabis Pilot Program Act
or its successor Act that has obtained an Early Approval Adult
Use Dispensing Organization License.
    "Dispensing organization agent" means a principal officer,
employee, or agent of a dispensing organization who is 21 years
of age or older.
    "Dispensing organization agent identification card" means
a document issued by the Department of Financial and
Professional Regulation that identifies a person as a
dispensing organization agent.
    "Disproportionately Impacted Area" means a census tract or
comparable geographic area that satisfies the following
criteria as determined by the Department of Commerce and
Economic Opportunity, that:
        (1) meets at least one of the following criteria:
            (A) the area has a poverty rate of at least 20%
        according to the latest federal decennial census; or
            (B) 75% or more of the children in the area
        participate in the federal free lunch program
        according to reported statistics from the State Board
        of Education; or
            (C) at least 20% of the households in the area
        receive assistance under the Supplemental Nutrition
        Assistance Program; or
            (D) the area has an average unemployment rate, as
        determined by the Illinois Department of Employment
        Security, that is more than 120% of the national
        unemployment average, as determined by the United
        States Department of Labor, for a period of at least 2
        consecutive calendar years preceding the date of the
        application; and
        (2) has high rates of arrest, conviction, and
    incarceration related to the sale, possession, use,
    cultivation, manufacture, or transport of cannabis.
    "Early Approval Adult Use Cultivation Center License"
means a license that permits a medical cannabis cultivation
center licensed under the Compassionate Use of Medical Cannabis
Pilot Program Act as of the effective date of this Act to begin
cultivating, infusing, packaging, transporting (unless
otherwise provided in this Act), and selling cannabis to
cannabis business establishments for resale to purchasers as
permitted by this Act as of January 1, 2020.
    "Early Approval Adult Use Dispensing Organization License"
means a license that permits a medical cannabis dispensing
organization licensed under the Compassionate Use of Medical
Cannabis Pilot Program Act as of the effective date of this Act
to begin selling cannabis to purchasers as permitted by this
Act as of January 1, 2020.
    "Early Approval Adult Use Dispensing Organization at a
secondary site" means a license that permits a medical cannabis
dispensing organization licensed under the Compassionate Use
of Medical Cannabis Pilot Program Act as of the effective date
of this Act to begin selling cannabis to purchasers as
permitted by this Act on January 1, 2020 at a different
dispensary location from its existing registered medical
dispensary location.
    "Enclosed, locked facility" means a room, greenhouse,
building, or other enclosed area equipped with locks or other
security devices that permit access only by cannabis business
establishment agents working for the licensed cannabis
business establishment or acting pursuant to this Act to
cultivate, process, store, or distribute cannabis.
    "Enclosed, locked space" means a closet, room, greenhouse,
building or other enclosed area equipped with locks or other
security devices that permit access only by authorized
individuals under this Act. "Enclosed, locked space" may
include:
        (1) a space within a residential building that (i) is
    the primary residence of the individual cultivating 5 or
    fewer cannabis plants that are more than 5 inches tall and
    (ii) includes sleeping quarters and indoor plumbing. The
    space must only be accessible by a key or code that is
    different from any key or code that can be used to access
    the residential building from the exterior; or
        (2) a structure, such as a shed or greenhouse, that
    lies on the same plot of land as a residential building
    that (i) includes sleeping quarters and indoor plumbing and
    (ii) is used as a primary residence by the person
    cultivating 5 or fewer cannabis plants that are more than 5
    inches tall, such as a shed or greenhouse. The structure
    must remain locked when it is unoccupied by people.
    "Financial institution" has the same meaning as "financial
organization" as defined in Section 1501 of the Illinois Income
Tax Act, and also includes the holding companies, subsidiaries,
and affiliates of such financial organizations.
    "Flowering stage" means the stage of cultivation where and
when a cannabis plant is cultivated to produce plant material
for cannabis products. This includes mature plants as follows:
        (1) if greater than 2 stigmas are visible at each
    internode of the plant; or
        (2) if the cannabis plant is in an area that has been
    intentionally deprived of light for a period of time
    intended to produce flower buds and induce maturation, from
    the moment the light deprivation began through the
    remainder of the marijuana plant growth cycle.
    "Individual" means a natural person.
    "Infuser organization" or "infuser" means a facility
operated by an organization or business that is licensed by the
Department of Agriculture to directly incorporate cannabis or
cannabis concentrate into a product formulation to produce a
cannabis-infused product.
    "Kief" means the resinous crystal-like trichomes that are
found on cannabis and that are accumulated, resulting in a
higher concentration of cannabinoids, untreated by heat or
pressure, or extracted using a solvent.
    "Labor peace agreement" means an agreement between a
cannabis business establishment and any labor organization
recognized under the National Labor Relations Act, referred to
in this Act as a bona fide labor organization, that prohibits
labor organizations and members from engaging in picketing,
work stoppages, boycotts, and any other economic interference
with the cannabis business establishment. This agreement means
that the cannabis business establishment has agreed not to
disrupt efforts by the bona fide labor organization to
communicate with, and attempt to organize and represent, the
cannabis business establishment's employees. The agreement
shall provide a bona fide labor organization access at
reasonable times to areas in which the cannabis business
establishment's employees work, for the purpose of meeting with
employees to discuss their right to representation, employment
rights under State law, and terms and conditions of employment.
This type of agreement shall not mandate a particular method of
election or certification of the bona fide labor organization.
    "Limited access area" means a building, room, or other area
under the control of a cannabis dispensing organization
licensed under this Act and upon the licensed premises with
access limited to purchasers, dispensing organization owners
and other dispensing organization agents, or service
professionals conducting business with the dispensing
organization.
    "Member of an impacted family" means an individual who has
a parent, legal guardian, child, spouse, or dependent, or was a
dependent of an individual who, prior to the effective date of
this Act, was arrested for, convicted of, or adjudicated
delinquent for any offense that is eligible for expungement
under this Act.
    "Mother plant" means a cannabis plant that is cultivated or
maintained for the purpose of generating clones, and that will
not be used to produce plant material for sale to an infuser or
dispensing organization.
    "Ordinary public view" means within the sight line with
normal visual range of a person, unassisted by visual aids,
from a public street or sidewalk adjacent to real property, or
from within an adjacent property.
    "Ownership and control" means ownership of at least 51% of
the business, including corporate stock if a corporation, and
control over the management and day-to-day operations of the
business and an interest in the capital, assets, and profits
and losses of the business proportionate to percentage of
ownership.
    "Person" means a natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
    "Possession limit" means the amount of cannabis under
Section 10-10 that may be possessed at any one time by a person
21 years of age or older or who is a registered qualifying
medical cannabis patient or caregiver under the Compassionate
Use of Medical Cannabis Pilot Program Act.
    "Principal officer" includes a cannabis business
establishment applicant or licensed cannabis business
establishment's board member, owner with more than 1% interest
of the total cannabis business establishment or more than 5%
interest of the total cannabis business establishment of a
publicly traded company, president, vice president, secretary,
treasurer, partner, officer, member, manager member, or person
with a profit sharing, financial interest, or revenue sharing
arrangement. The definition includes a person with authority to
control the cannabis business establishment, a person who
assumes responsibility for the debts of the cannabis business
establishment and who is further defined in this Act.
    "Primary residence" means a dwelling where a person usually
stays or stays more often than other locations. It may be
determined by, without limitation, presence, tax filings;
address on an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a Disability
Identification Card; or voter registration. No person may have
more than one primary residence.
    "Processing organization" or "processor" means a facility
operated by an organization or business that is licensed by the
Department of Agriculture to either extract constituent
chemicals or compounds to produce cannabis concentrate or
incorporate cannabis or cannabis concentrate into a product
formulation to produce a cannabis product.
    "Processing organization agent" means a principal officer,
board member, employee, or agent of a processing organization.
    "Processing organization agent identification card" means
a document issued by the Department of Agriculture that
identifies a person as a processing organization agent.
    "Purchaser" means a person 21 years of age or older who
acquires cannabis for a valuable consideration. "Purchaser"
does not include a cardholder under the Compassionate Use of
Medical Cannabis Pilot Program Act.
    "Qualified Social Equity Applicant" means a Social Equity
Applicant who has been awarded a conditional license under this
Act to operate a cannabis business establishment.
    "Resided" means an individual's primary residence was
located within the relevant geographic area as established by 2
of the following:
        (1) a signed lease agreement that includes the
    applicant's name;
        (2) a property deed that includes the applicant's name;
        (3) school records;
        (4) a voter registration card;
        (5) an Illinois driver's license, an Illinois
    Identification Card, or an Illinois Person with a
    Disability Identification Card;
        (6) a paycheck stub;
        (7) a utility bill; or
        (8) any other proof of residency or other information
    necessary to establish residence as provided by rule.
    "Smoking" means the inhalation of smoke caused by the
combustion of cannabis.
    "Social Equity Applicant" means an applicant that is an
Illinois resident that meets one of the following criteria:
        (1) an applicant with at least 51% ownership and
    control by one or more individuals who have resided for at
    least 5 of the preceding 10 years in a Disproportionately
    Impacted Area;
        (2) an applicant with at least 51% ownership and
    control by one or more individuals who:
            (i) have been arrested for, convicted of, or
        adjudicated delinquent for any offense that is
        eligible for expungement under this Act; or
            (ii) is a member of an impacted family;
        (3) for applicants with a minimum of 10 full-time
    employees, an applicant with at least 51% of current
    employees who:
            (i) currently reside in a Disproportionately
        Impacted Area; or
            (ii) have been arrested for, convicted of, or
        adjudicated delinquent for any offense that is
        eligible for expungement under this Act or member of an
        impacted family.
    Nothing in this Act shall be construed to preempt or limit
the duties of any employer under the Job Opportunities for
Qualified Applicants Act. Nothing in this Act shall permit an
employer to require an employee to disclose sealed or expunged
offenses, unless otherwise required by law.
    "Tincture" means a cannabis-infused solution, typically
comprised of alcohol, glycerin, or vegetable oils, derived
either directly from the cannabis plant or from a processed
cannabis extract. A tincture is not an alcoholic liquor as
defined in the Liquor Control Act of 1934. A tincture shall
include a calibrated dropper or other similar device capable of
accurately measuring servings.
    "Transporting organization" or "transporter" means an
organization or business that is licensed by the Department of
Agriculture to transport cannabis on behalf of a cannabis
business establishment or a community college licensed under
the Community College Cannabis Vocational Training Pilot
Program.
    "Transporting organization agent" means a principal
officer, board member, employee, or agent of a transporting
organization.
    "Transporting organization agent identification card"
means a document issued by the Department of Agriculture that
identifies a person as a transporting organization agent.
    "Unit of local government" means any county, city, village,
or incorporated town.
    "Vegetative stage" means the stage of cultivation in which
a cannabis plant is propagated to produce additional cannabis
plants or reach a sufficient size for production. This includes
seedlings, clones, mothers, and other immature cannabis plants
as follows:
        (1) if the cannabis plant is in an area that has not
    been intentionally deprived of light for a period of time
    intended to produce flower buds and induce maturation, it
    has no more than 2 stigmas visible at each internode of the
    cannabis plant; or
        (2) any cannabis plant that is cultivated solely for
    the purpose of propagating clones and is never used to
    produce cannabis.
 
ARTICLE 5.
AUTHORITY

 
    Section 5-5. Sharing of authority. Notwithstanding any
provision or law to the contrary, any authority granted to any
State agency or State employees or appointees under the
Compassionate Use of Medical Cannabis Pilot Program Act shall
be shared by any State agency or State employees or appointees
given authority to license, discipline, revoke, regulate, or
make rules under this Act.
 
    Section 5-10. Department of Agriculture. The Department of
Agriculture shall administer and enforce provisions of this Act
relating to the oversight and registration of cultivation
centers, craft growers, infuser organizations, and
transporting organizations and agents, including the issuance
of identification cards and establishing limits on potency or
serving size for cannabis or cannabis products. The Department
of Agriculture may suspend or revoke the license of, or impose
other penalties upon cultivation centers, craft growers,
infuser organizations, transporting organizations, and their
principal officers, Agents-in-Charge, and agents for
violations of this Act and any rules adopted under this Act.
 
    Section 5-15. Department of Financial and Professional
Regulation. The Department of Financial and Professional
Regulation shall enforce the provisions of this Act relating to
the oversight and registration of dispensing organizations and
agents, including the issuance of identification cards for
dispensing organization agents. The Department of Financial
and Professional Regulation may suspend or revoke the license
of, or impose other penalties upon, dispensing organizations
for violations of this Act and any rules adopted under this
Act.
 
    Section 5-20. Background checks.
    (a) Through the Department of State Police, the licensing
or issuing Department shall conduct a criminal history record
check of the prospective principal officers, board members, and
agents of a cannabis business establishment applying for a
license or identification card under this Act.
    Each cannabis business establishment prospective principal
officer, board member, or agent shall submit his or her
fingerprints to the Department of State Police in the form and
manner prescribed by the Department of State Police.
    Such fingerprints shall be transmitted through a live scan
fingerprint vendor licensed by the Department of Financial and
Professional Regulation. These fingerprints shall be checked
against the fingerprint records now and hereafter filed in the
Department of State Police and Federal Bureau of Investigation
criminal history records databases. The Department of State
Police shall charge a fee for conducting the criminal history
record check, which shall be deposited into the State Police
Services Fund and shall not exceed the actual cost of the State
and national criminal history record check. The Department of
State Police shall furnish, pursuant to positive
identification, all Illinois conviction information and shall
forward the national criminal history record information to:
        (i) the Department of Agriculture, with respect to a
    cultivation center, craft grower, infuser organization, or
    transporting organization; or
        (ii) the Department of Financial and Professional
    Regulation, with respect to a dispensing organization.
    (b) When applying for the initial license or identification
card, the background checks for all prospective principal
officers, board members, and agents shall be completed before
submitting the application to the licensing or issuing agency.
    (c) All applications for licensure under this Act by
applicants with criminal convictions shall be subject to
Sections 2105-131, 2105-135, and 2105-205 of the Department of
Professional Regulation Law of the Civil Administrative Code of
Illinois.
 
    Section 5-25. Department of Public Health to make health
warning recommendations.
    (a) The Department of Public Health shall make
recommendations to the Department of Agriculture and the
Department of Financial and Professional Regulation on
appropriate health warnings for dispensaries and advertising,
which may apply to all cannabis products, including item-type
specific labeling or warning requirements, regulate the
facility where cannabis-infused products are made, regulate
cannabis-infused products as provided in subsection (e) of
Section 55-5, and facilitate the Adult Use Cannabis Health
Advisory Committee.
    (b) An Adult Use Cannabis Health Advisory Committee is
hereby created and shall meet at least twice annually. The
Chairperson may schedule meetings more frequently upon his or
her initiative or upon the request of a Committee member.
Meetings may be held in person or by teleconference. The
Committee shall discuss and monitor changes in drug use data in
Illinois and the emerging science and medical information
relevant to the health effects associated with cannabis use and
may provide recommendations to the Department of Human Services
about public health awareness campaigns and messages. The
Committee shall include the following members appointed by the
Governor and shall represent the geographic, ethnic, and racial
diversity of the State:
        (1) The Director of Public Health, or his or her
    designee, who shall serve as the Chairperson.
        (2) The Secretary of Human Services, or his or her
    designee, who shall serve as the Co-Chairperson.
        (3) A representative of the poison control center.
        (4) A pharmacologist.
        (5) A pulmonologist.
        (6) An emergency room physician.
        (7) An emergency medical technician, paramedic, or
    other first responder.
        (8) A nurse practicing in a school-based setting.
        (9) A psychologist.
        (10) A neonatologist.
        (11) An obstetrician-gynecologist.
        (12) A drug epidemiologist.
        (13) A medical toxicologist.
        (14) An addiction psychiatrist.
        (15) A pediatrician.
        (16) A representative of a statewide professional
    public health organization.
        (17) A representative of a statewide hospital/health
    system association.
        (18) An individual registered as a patient in the
    Compassionate Use of Medical Cannabis Pilot Program.
        (19) An individual registered as a caregiver in the
    Compassionate Use of Medical Cannabis Pilot Program.
        (20) A representative of an organization focusing on
    cannabis-related policy.
        (21) A representative of an organization focusing on
    the civil liberties of individuals who reside in Illinois.
        (22) A representative of the criminal defense or civil
    aid community of attorneys serving Disproportionately
    Impacted Areas.
        (23) A representative of licensed cannabis business
    establishments.
        (24) A Social Equity Applicant.
    (c) The Committee shall provide a report by September 30,
2021, and every year thereafter, to the General Assembly. The
Department of Public Health shall make the report available on
its website.
 
    Section 5-30. Department of Human Services. The Department
of Human Services shall identify evidence-based programs for
preventive mental health, the prevention or treatment of
alcohol abuse, tobacco use, illegal drug use (including
prescription drugs), and cannabis use by pregnant women, and
make policy recommendations, as appropriate, to the Adult Use
Cannabis Health Advisory Committee. The Department of Human
Services shall develop and disseminate educational materials
for purchasers based on recommendations received from the
Department of Public Health and the Adult Use Cannabis Health
Advisory Committee.
 
    Section 5-45. Illinois Cannabis Regulation Oversight
Officer.
    (a) The position of Illinois Cannabis Regulation Oversight
Officer is created within the Department of Financial and
Professional Regulation under the Secretary of Financial and
Professional Regulation. The Illinois Cannabis Regulation
Oversight Officer shall be appointed by the Governor with the
advice and consent of the Senate. The term of office of the
Officer shall expire on the third Monday of January in
odd-numbered years provided that he or she shall hold office
until a successor is appointed and qualified. In case of
vacancy in office during the recess of the Senate, the Governor
shall make a temporary appointment until the next meeting of
the Senate, when the Governor shall nominate some person to
fill the office, and any person so nominated who is confirmed
by the Senate shall hold office during the remainder of the
term and until his or her successor is appointed and qualified.
    (b) The Illinois Cannabis Regulation Oversight Officer
may:
        (1) maintain a staff;
        (2) make recommendations for policy, statute, and rule
    changes;
        (3) collect data both in Illinois and outside Illinois
    regarding the regulation of cannabis;
        (4) compile or assist in the compilation of any reports
    required by this Act;
        (5) ensure the coordination of efforts between various
    State agencies involved in regulating and taxing the sale
    of cannabis in Illinois; and
        (6) encourage, promote, suggest, and report best
    practices for ensuring diversity in the cannabis industry
    in Illinois.
    (c) The Illinois Cannabis Regulation Oversight Officer
shall not:
        (1) participate in the issuance of any business
    licensing or the making of awards; or
        (2) participate in any adjudicative decision-making
    process involving licensing or licensee discipline.
    (d) Any funding required for the Illinois Cannabis
Regulation Oversight Officer, its staff, or its activities
shall be drawn from the Cannabis Regulation Fund.
    (e) The Illinois Cannabis Regulation Oversight Officer
shall commission and publish a disparity and availability study
by March 1, 2021 that: (1) evaluates whether there exists
discrimination in the State's cannabis industry; and (2) if so,
evaluates the impact of such discrimination on the State and
includes recommendations to the Department of Financial and
Professional Regulation and the Department of Agriculture for
reducing or eliminating any identified barriers to entry in the
cannabis market. The Illinois Cannabis Regulation Oversight
Officer shall forward a copy of its findings and
recommendations to the Department of Financial and
Professional Regulation, the Department of Agriculture, the
Department of Commerce and Economic Opportunity, the General
Assembly, and the Governor.
    (f) The Illinois Cannabis Regulation Oversight Officer may
compile, collect, or otherwise gather data necessary for the
administration of this Act and to carry out the Officer's duty
relating to the recommendation of policy changes. The Illinois
Cannabis Regulation Oversight Officer may direct the
Department of Agriculture, Department of Financial and
Professional Regulation, Department of Public Health,
Department of Human Services, and Department of Commerce and
Economic Opportunity to assist in the compilation, collection,
and data gathering authorized pursuant to this subsection. The
Illinois Cannabis Regulation Oversight Officer shall compile
all of the data into a single report and submit the report to
the Governor and the General Assembly and publish the report on
its website.
 
ARTICLE 7.
SOCIAL EQUITY IN THE CANNABIS INDUSTRY

 
    Section 7-1. Findings.
    (a) The General Assembly finds that the medical cannabis
industry, established in 2014 through the Compassionate Use of
Medical Cannabis Pilot Program Act, has shown that additional
efforts are needed to reduce barriers to ownership. Through
that program, 55 licenses for dispensing organizations and 20
licenses for cultivation centers have been issued. Those
licenses are held by only a small number of businesses, the
ownership of which does not sufficiently meet the General
Assembly's interest in business ownership that reflects the
population of the State of Illinois and that demonstrates the
need to reduce barriers to entry for individuals and
communities most adversely impacted by the enforcement of
cannabis-related laws.
    (b) In the interest of establishing a legal cannabis
industry that is equitable and accessible to those most
adversely impacted by the enforcement of drug-related laws in
this State, including cannabis-related laws, the General
Assembly finds and declares that a social equity program should
be established.
    (c) The General Assembly also finds and declares that
individuals who have been arrested or incarcerated due to drug
laws suffer long-lasting negative consequences, including
impacts to employment, business ownership, housing, health,
and long-term financial well-being.
    (d) The General Assembly also finds and declares that
family members, especially children, and communities of those
who have been arrested or incarcerated due to drug laws, suffer
from emotional, psychological, and financial harms as a result
of such arrests or incarcerations.
    (e) Furthermore, the General Assembly finds and declares
that certain communities have disproportionately suffered the
harms of enforcement of cannabis-related laws. Those
communities face greater difficulties accessing traditional
banking systems and capital for establishing businesses.
    (f) The General Assembly also finds that individuals who
have resided in areas of high poverty suffer negative
consequences, including barriers to entry in employment,
business ownership, housing, health, and long-term financial
well-being.
    (g) The General Assembly also finds and declares that
promotion of business ownership by individuals who have resided
in areas of high poverty and high enforcement of
cannabis-related laws furthers an equitable cannabis industry.
    (h) Therefore, in the interest of remedying the harms
resulting from the disproportionate enforcement of
cannabis-related laws, the General Assembly finds and declares
that a social equity program should offer, among other things,
financial assistance and license application benefits to
individuals most directly and adversely impacted by the
enforcement of cannabis-related laws who are interested in
starting cannabis business establishments.
 
    Section 7-10. Cannabis Business Development Fund.
    (a) There is created in the State treasury a special fund,
which shall be held separate and apart from all other State
moneys, to be known as the Cannabis Business Development Fund.
The Cannabis Business Development Fund shall be exclusively
used for the following purposes:
        (1) to provide low-interest rate loans to Social Equity
    Applicants to pay for ordinary and necessary expenses to
    start and operate a cannabis business establishment
    permitted by this Act;
        (2) to provide grants to Qualified Social Equity
    Applicants to pay for ordinary and necessary expenses to
    start and operate a cannabis business establishment
    permitted by this Act;
        (3) to compensate the Department of Commerce and
    Economic Opportunity for any costs related to the provision
    of low-interest loans and grants to Qualified Social Equity
    Applicants;
        (4) to pay for outreach that may be provided or
    targeted to attract and support Social Equity Applicants;
        (5) (blank);
        (6) to conduct any study or research concerning the
    participation of minorities, women, veterans, or people
    with disabilities in the cannabis industry, including,
    without limitation, barriers to such individuals entering
    the industry as equity owners of cannabis business
    establishments;
        (7) (blank); and
        (8) to assist with job training and technical
    assistance for residents in Disproportionately Impacted
    Areas.
    (b) All moneys collected under Sections 15-15 and 15-20 for
Early Approval Adult Use Dispensing Organization Licenses
issued before January 1, 2021 and remunerations made as a
result of transfers of permits awarded to Qualified Social
Equity Applicants shall be deposited into the Cannabis Business
Development Fund.
    (c) As soon as practical after July 1, 2019, the
Comptroller shall order and the Treasurer shall transfer
$12,000,000 from the Compassionate Use of Medical Cannabis Fund
to the Cannabis Business Development Fund.
    (d) Notwithstanding any other law to the contrary, the
Cannabis Business Development Fund is not subject to sweeps,
administrative charge-backs, or any other fiscal or budgetary
maneuver that would in any way transfer any amounts from the
Cannabis Business Development Fund into any other fund of the
State.
 
    Section 7-15. Loans and grants to Social Equity Applicants.
    (a) The Department of Commerce and Economic Opportunity
shall establish grant and loan programs, subject to
appropriations from the Cannabis Business Development Fund,
for the purposes of providing financial assistance, loans,
grants, and technical assistance to Social Equity Applicants.
    (b) The Department of Commerce and Economic Opportunity has
the power to:
        (1) provide Cannabis Social Equity loans and grants
    from appropriations from the Cannabis Business Development
    Fund to assist Social Equity Applicants in gaining entry
    to, and successfully operating in, the State's regulated
    cannabis marketplace;
        (2) enter into agreements that set forth terms and
    conditions of the financial assistance, accept funds or
    grants, and engage in cooperation with private entities and
    agencies of State or local government to carry out the
    purposes of this Section;
        (3) fix, determine, charge, and collect any premiums,
    fees, charges, costs and expenses, including application
    fees, commitment fees, program fees, financing charges, or
    publication fees in connection with its activities under
    this Section;
        (4) coordinate assistance under these loan programs
    with activities of the Illinois Department of Financial and
    Professional Regulation, the Illinois Department of
    Agriculture, and other agencies as needed to maximize the
    effectiveness and efficiency of this Act;
        (5) provide staff, administration, and related support
    required to administer this Section;
        (6) take whatever actions are necessary or appropriate
    to protect the State's interest in the event of bankruptcy,
    default, foreclosure, or noncompliance with the terms and
    conditions of financial assistance provided under this
    Section, including the ability to recapture funds if the
    recipient is found to be noncompliant with the terms and
    conditions of the financial assistance agreement;
        (7) establish application, notification, contract, and
    other forms, procedures, or rules deemed necessary and
    appropriate; and
        (8) utilize vendors or contract work to carry out the
    purposes of this Act.
    (c) Loans made under this Section:
        (1) shall only be made if, in the Department's
    judgment, the project furthers the goals set forth in this
    Act; and
        (2) shall be in such principal amount and form and
    contain such terms and provisions with respect to security,
    insurance, reporting, delinquency charges, default
    remedies, and other matters as the Department shall
    determine appropriate to protect the public interest and to
    be consistent with the purposes of this Section. The terms
    and provisions may be less than required for similar loans
    not covered by this Section.
    (d) Grants made under this Section shall be awarded on a
competitive and annual basis under the Grant Accountability and
Transparency Act. Grants made under this Section shall further
and promote the goals of this Act, including promotion of
Social Equity Applicants, job training and workforce
development, and technical assistance to Social Equity
Applicants.
    (e) Beginning January 1, 2021 and each year thereafter, the
Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of this
Section that shall include the following:
        (1) the number of persons or businesses receiving
    financial assistance under this Section;
        (2) the amount in financial assistance awarded in the
    aggregate, in addition to the amount of loans made that are
    outstanding and the amount of grants awarded;
        (3) the location of the project engaged in by the
    person or business; and
        (4) if applicable, the number of new jobs and other
    forms of economic output created as a result of the
    financial assistance.
    (f) The Department of Commerce and Economic Opportunity
shall include engagement with individuals with limited English
proficiency as part of its outreach provided or targeted to
attract and support Social Equity Applicants.
 
    Section 7-20. Fee waivers.
    (a) For Social Equity Applicants, the Department of
Financial and Professional Regulation and the Department of
Agriculture shall waive 50% of any nonrefundable license
application fees, any nonrefundable fees associated with
purchasing a license to operate a cannabis business
establishment, and any surety bond or other financial
requirements, provided a Social Equity Applicant meets the
following qualifications at the time the payment is due:
        (1) the applicant, including all individuals and
    entities with 10% or greater ownership and all parent
    companies, subsidiaries, and affiliates, has less than a
    total of $750,000 of income in the previous calendar year;
    and
        (2) the applicant, including all individuals and
    entities with 10% or greater ownership and all parent
    companies, subsidiaries, and affiliates, has no more than 2
    other licenses for cannabis business establishments in the
    State of Illinois.
    (b) The Department of Financial and Professional
Regulation and the Department of Agriculture may require Social
Equity Applicants to attest that they meet the requirements for
a fee waiver as provided in subsection (a) and to provide
evidence of annual total income in the previous calendar year.
    (c) If the Department of Financial and Professional
Regulation or the Department of Agriculture determines that an
applicant who applied as a Social Equity Applicant is not
eligible for such status, the applicant shall be provided an
additional 10 days to provide alternative evidence that he or
she qualifies as a Social Equity Applicant. Alternatively, the
applicant may pay the remainder of the waived fee and be
considered as a non-Social Equity Applicant. If the applicant
cannot do either, then the Departments may keep the initial
application fee and the application shall not be graded.
 
    Section 7-25. Transfer of license awarded to Social Equity
Applicant.
    (a) In the event a Social Equity Applicant seeks to
transfer, sell, or grant a cannabis business establishment
license within 5 years after it was issued to a person or
entity that does not qualify as a Social Equity Applicant, the
transfer agreement shall require the new license holder to pay
the Cannabis Business Development Fund an amount equal to:
        (1) any fees that were waived by any State agency based
    on the applicant's status as a Social Equity Applicant, if
    applicable;
        (2) any outstanding amount owed by the Qualified Social
    Equity Applicant for a loan through the Cannabis Business
    Development Fund, if applicable; and
        (3) the full amount of any grants that the Qualified
    Social Equity Applicant received from the Department of
    Commerce and Economic Opportunity, if applicable.
    (b) Transfers of cannabis business establishment licenses
awarded to a Social Equity Applicant are subject to all other
provisions of this Act, the Compassionate Use of Medical
Cannabis Pilot Program Act, and rules regarding transfers.
 
    Section 7-30. Reporting. By January 1, 2021, and on January
1 of every year thereafter, or upon request by the Illinois
Cannabis Regulation Oversight Officer, each cannabis business
establishment licensed under this Act shall report to the
Illinois Cannabis Regulation Oversight Officer, on a form to be
provided by the Illinois Cannabis Regulation Oversight
Officer, information that will allow it to assess the extent of
diversity in the medical and adult use cannabis industry and
methods for reducing or eliminating any identified barriers to
entry, including access to capital. The information to be
collected shall be designed to identify the following:
        (1) the number and percentage of licenses provided to
    Social Equity Applicants and to businesses owned by
    minorities, women, veterans, and people with disabilities;
        (2) the total number and percentage of employees in the
    cannabis industry who meet the criteria in (3)(i) or
    (3)(ii) in the definition of Social Equity Applicant or who
    are minorities, women, veterans, or people with
    disabilities;
        (3) the total number and percentage of contractors and
    subcontractors in the cannabis industry that meet the
    definition of a Social Equity Applicant or who are owned by
    minorities, women, veterans, or people with disabilities,
    if known to the cannabis business establishment; and
        (4) recommendations on reducing or eliminating any
    identified barriers to entry, including access to capital,
    in the cannabis industry.
 
ARTICLE 10.
PERSONAL USE OF CANNABIS

 
    Section 10-5. Personal use of cannabis; restrictions on
cultivation; penalties.
    (a) Beginning January 1, 2020, notwithstanding any other
provision of law, and except as otherwise provided in this Act,
the following acts are not a violation of this Act and shall
not be a criminal or civil offense under State law or the
ordinances of any unit of local government of this State or be
a basis for seizure or forfeiture of assets under State law for
persons other than natural individuals under 21 years of age:
        (1) possession, consumption, use, purchase, obtaining,
    or transporting an amount of cannabis for personal use that
    does not exceed the possession limit under Section 10-10 or
    otherwise in accordance with the requirements of this Act;
        (2) cultivation of cannabis for personal use in
    accordance with the requirements of this Act; and
        (3) controlling property if actions that are
    authorized by this Act occur on the property in accordance
    with this Act.
    (a-1) Beginning January 1, 2020, notwithstanding any other
provision of law, and except as otherwise provided in this Act,
possessing, consuming, using, purchasing, obtaining, or
transporting an amount of cannabis purchased or produced in
accordance with this Act that does not exceed the possession
limit under subsection (a) of Section 10-10 shall not be a
basis for seizure or forfeiture of assets under State law.
    (b) Cultivating cannabis for personal use is subject to the
following limitations:
        (1) An Illinois resident 21 years of age or older who
    is a registered qualifying patient under the Compassionate
    Use of Medical Cannabis Pilot Program Act may cultivate
    cannabis plants, with a limit of 5 plants that are more
    than 5 inches tall, per household without a cultivation
    center or craft grower license. In this Section, "resident"
    means a person who has been domiciled in the State of
    Illinois for a period of 30 days before cultivation.
        (2) Cannabis cultivation must take place in an
    enclosed, locked space.
        (3) Adult registered qualifying patients may purchase
    cannabis seeds from a dispensary for the purpose of home
    cultivation. Seeds may not be given or sold to any other
    person.
        (4) Cannabis plants shall not be stored or placed in a
    location where they are subject to ordinary public view, as
    defined in this Act. A registered qualifying patient who
    cultivates cannabis under this Section shall take
    reasonable precautions to ensure the plants are secure from
    unauthorized access, including unauthorized access by a
    person under 21 years of age.
        (5) Cannabis cultivation may occur only on residential
    property lawfully in possession of the cultivator or with
    the consent of the person in lawful possession of the
    property. An owner or lessor of residential property may
    prohibit the cultivation of cannabis by a lessee.
        (6) (Blank).
        (7) A dwelling, residence, apartment, condominium
    unit, enclosed, locked space, or piece of property not
    divided into multiple dwelling units shall not contain more
    than 5 plants at any one time.
        (8) Cannabis plants may only be tended by registered
    qualifying patients who reside at the residence, or their
    authorized agent attending to the residence for brief
    periods, such as when the qualifying patient is temporarily
    away from the residence.
        (9) A registered qualifying patient who cultivates
    more than the allowable number of cannabis plants, or who
    sells or gives away cannabis plants, cannabis, or
    cannabis-infused products produced under this Section, is
    liable for penalties as provided by law, including the
    Cannabis Control Act, in addition to loss of home
    cultivation privileges as established by rule.
 
    Section 10-10. Possession limit.
    (a) Except if otherwise authorized by this Act, for a
person who is 21 years of age or older and a resident of this
State, the possession limit is as follows:
        (1) 30 grams of cannabis flower;
        (2) no more than 500 milligrams of THC contained in
    cannabis-infused product;
        (3) 5 grams of cannabis concentrate; and
        (4) for registered qualifying patients, any cannabis
    produced by cannabis plants grown under subsection (b) of
    Section 10-5, provided any amount of cannabis produced in
    excess of 30 grams of raw cannabis or its equivalent must
    remain secured within the residence or residential
    property in which it was grown.
    (b) For a person who is 21 years of age or older and who is
not a resident of this State, the possession limit is:
        (1) 15 grams of cannabis flower;
        (2) 2.5 grams of cannabis concentrate; and
        (3) 250 milligrams of THC contained in a
    cannabis-infused product.
    (c) The possession limits found in subsections (a) and (b)
of this Section are to be considered cumulative.
    (d) No person shall knowingly obtain, seek to obtain, or
possess an amount of cannabis from a dispensing organization or
craft grower that would cause him or her to exceed the
possession limit under this Section, including cannabis that is
cultivated by a person under this Act or obtained under the
Compassionate Use of Medical Cannabis Pilot Program Act.
 
    Section 10-15. Persons under 21 years of age.
    (a) Nothing in this Act is intended to permit the transfer
of cannabis, with or without remuneration, to a person under 21
years of age, or to allow a person under 21 years of age to
purchase, possess, use, process, transport, grow, or consume
cannabis except where authorized by the Compassionate Use of
Medical Cannabis Pilot Program Act or by the Community College
Cannabis Vocational Pilot Program.
    (b) Notwithstanding any other provisions of law
authorizing the possession of medical cannabis, nothing in this
Act authorizes a person who is under 21 years of age to possess
cannabis. A person under 21 years of age with cannabis in his
or her possession is guilty of a civil law violation as
outlined in paragraph (a) of Section 4 of the Cannabis Control
Act.
    (c) If the person under the age of 21 was in a motor
vehicle at the time of the offense, the Secretary of State may
suspend or revoke the driving privileges of any person for a
violation of this Section under Section 6-206 of the Illinois
Vehicle Code and the rules adopted under it.
    (d) It is unlawful for any parent or guardian to knowingly
permit his or her residence, any other private property under
his or her control, or any vehicle, conveyance, or watercraft
under his or her control to be used by an invitee of the
parent's child or the guardian's ward, if the invitee is under
the age of 21, in a manner that constitutes a violation of this
Section. A parent or guardian is deemed to have knowingly
permitted his or her residence, any other private property
under his or her control, or any vehicle, conveyance, or
watercraft under his or her control to be used in violation of
this Section if he or she knowingly authorizes or permits
consumption of cannabis by underage invitees. Any person who
violates this subsection (d) is guilty of a Class A misdemeanor
and the person's sentence shall include, but shall not be
limited to, a fine of not less than $500. If a violation of
this subsection (d) directly or indirectly results in great
bodily harm or death to any person, the person violating this
subsection is guilty of a Class 4 felony. In this subsection
(d), where the residence or other property has an owner and a
tenant or lessee, the trier of fact may infer that the
residence or other property is occupied only by the tenant or
lessee.
 
    Section 10-20. Identification; false identification;
penalty.
    (a) To protect personal privacy, the Department of
Financial and Professional Regulation shall not require a
purchaser to provide a dispensing organization with personal
information other than government-issued identification to
determine the purchaser's age, and a dispensing organization
shall not obtain and record personal information about a
purchaser without the purchaser's consent. A dispensing
organization shall use an electronic reader or electronic
scanning device to scan a purchaser's government-issued
identification, if applicable, to determine the purchaser's
age and the validity of the identification. Any identifying or
personal information of a purchaser obtained or received in
accordance with this Section shall not be retained, used,
shared or disclosed for any purpose except as authorized by
this Act.
    (b) A person who is under 21 years of age may not present
or offer to a cannabis business establishment or the cannabis
business establishment's principal or employee any written or
oral evidence of age that is false, fraudulent, or not actually
the person's own, for the purpose of:
        (1) purchasing, attempting to purchase, or otherwise
    obtaining or attempting to obtain cannabis or any cannabis
    product; or
        (2) gaining access to a cannabis business
    establishment.
    (c) A violation of this Section is a Class A misdemeanor
consistent with Section 6-20 of the Liquor Control Act of 1934.
    (d) The Secretary of State may suspend or revoke the
driving privileges of any person for a violation of this
Section under Section 6-206 of the Illinois Vehicle Code and
the rules adopted under it.
    (e) No agent or employee of the licensee shall be
disciplined or discharged for selling or furnishing cannabis or
cannabis products to a person under 21 years of age if the
agent or employee demanded and was shown, before furnishing
cannabis or cannabis products to a person under 21 years of
age, adequate written evidence of age and identity of the
person. This subsection (e) does not apply if the agent or
employee accepted the written evidence knowing it to be false
or fraudulent. Adequate written evidence of age and identity of
the person is a document issued by a federal, State, county, or
municipal government, or subdivision or agency thereof,
including, but not limited to, a motor vehicle operator's
license, a registration certificate issued under the Military
Selective Service Act, or an identification card issued to a
member of the Armed Forces. Proof that the licensee or his or
her employee or agent was shown and reasonably relied upon such
written evidence in any transaction forbidden by this Section
is an affirmative defense in any criminal prosecution therefor
or to any proceedings for the suspension or revocation of any
license based thereon.
 
    Section 10-25. Immunities and presumptions related to the
use of cannabis by purchasers.
    (a) A purchaser who is 21 years of age or older is not
subject to arrest, prosecution, denial of any right or
privilege, or other punishment including, but not limited to,
any civil penalty or disciplinary action taken by an
occupational or professional licensing board, based solely on
the use of cannabis if (1) the purchaser possesses an amount of
cannabis that does not exceed the possession limit under
Section 10-10 and, if the purchaser is licensed, certified, or
registered to practice any trade or profession under any Act
and (2) the use of cannabis does not impair that person when he
or she is engaged in the practice of the profession for which
he or she is licensed, certified, or registered.
    (b) A purchaser 21 years of age or older is not subject to
arrest, prosecution, denial of any right or privilege, or other
punishment, including, but not limited to, any civil penalty or
disciplinary action taken by an occupational or professional
licensing board, based solely for (i) selling cannabis
paraphernalia if employed and licensed as a dispensing agent by
a dispensing organization or (ii) being in the presence or
vicinity of the use of cannabis as allowed under this Act.
    (c) Mere possession of, or application for, an agent
identification card or license does not constitute probable
cause or reasonable suspicion to believe that a crime has been
committed, nor shall it be used as the sole basis to support
the search of the person, property, or home of the person
possessing or applying for the agent identification card. The
possession of, or application for, an agent identification card
does not preclude the existence of probable cause if probable
cause exists based on other grounds.
    (d) No person employed by the State of Illinois shall be
subject to criminal or civil penalties for taking any action in
good faith in reliance on this Act when acting within the scope
of his or her employment. Representation and indemnification
shall be provided to State employees as set forth in Section 2
of the State Employee Indemnification Act.
    (e) No law enforcement or correctional agency, nor any
person employed by a law enforcement or correctional agency,
shall be subject to criminal or civil liability, except for
willful and wanton misconduct, as a result of taking any action
within the scope of the official duties of the agency or person
to prohibit or prevent the possession or use of cannabis by a
person incarcerated at a correctional facility, jail, or
municipal lockup facility, on parole or mandatory supervised
release, or otherwise under the lawful jurisdiction of the
agency or person.
    (f) For purposes of receiving medical care, including organ
transplants, a person's use of cannabis under this Act does not
constitute the use of an illicit substance or otherwise
disqualify a person from medical care.
 
    Section 10-30. Discrimination prohibited.
    (a) Neither the presence of cannabinoid components or
metabolites in a person's bodily fluids nor possession of
cannabis-related paraphernalia, nor conduct related to the use
of cannabis or the participation in cannabis-related
activities lawful under this Act by a custodial or noncustodial
parent, grandparent, legal guardian, foster parent, or other
person charged with the well-being of a child, shall form the
sole or primary basis or supporting basis for any action or
proceeding by a child welfare agency or in a family or juvenile
court, any adverse finding, adverse evidence, or restriction of
any right or privilege in a proceeding related to adoption of a
child, acting as a foster parent of a child, or a person's
fitness to adopt a child or act as a foster parent of a child,
or serve as the basis of any adverse finding, adverse evidence,
or restriction of any right of privilege in a proceeding
related to guardianship, conservatorship, trusteeship, the
execution of a will, or the management of an estate, unless the
person's actions in relation to cannabis created an
unreasonable danger to the safety of the minor or otherwise
show the person to not be competent as established by clear and
convincing evidence. This subsection applies only to conduct
protected under this Act.
    (b) No landlord may be penalized or denied any benefit
under State law for leasing to a person who uses cannabis under
this Act.
    (c) Nothing in this Act may be construed to require any
person or establishment in lawful possession of property to
allow a guest, client, lessee, customer, or visitor to use
cannabis on or in that property.
 
    Section 10-35. Limitations and penalties.
    (a) This Act does not permit any person to engage in, and
does not prevent the imposition of any civil, criminal, or
other penalties for engaging in, any of the following conduct:
        (1) undertaking any task under the influence of
    cannabis when doing so would constitute negligence,
    professional malpractice, or professional misconduct;
        (2) possessing cannabis:
            (A) in a school bus, unless permitted for a
        qualifying patient or caregiver pursuant to the
        Compassionate Use of Medical Cannabis Pilot Program
        Act;
            (B) on the grounds of any preschool or primary or
        secondary school, unless permitted for a qualifying
        patient or caregiver pursuant to the Compassionate Use
        of Medical Cannabis Pilot Program Act;
            (C) in any correctional facility;
            (D) in a vehicle not open to the public unless the
        cannabis is in a reasonably secured, sealed container
        and reasonably inaccessible while the vehicle is
        moving; or
            (E) in a private residence that is used at any time
        to provide licensed child care or other similar social
        service care on the premises;
        (3) using cannabis:
            (A) in a school bus, unless permitted for a
        qualifying patient or caregiver pursuant to the
        Compassionate Use of Medical Cannabis Pilot Program
        Act;
            (B) on the grounds of any preschool or primary or
        secondary school, unless permitted for a qualifying
        patient or caregiver pursuant to the Compassionate Use
        of Medical Cannabis Pilot Program Act;
            (C) in any correctional facility;
            (D) in any motor vehicle;
            (E) in a private residence that is used at any time
        to provide licensed child care or other similar social
        service care on the premises;
            (F) in any public place; or
            (G) knowingly in close physical proximity to
        anyone under 21 years of age who is not a registered
        medical cannabis patient under the Compassionate Use
        of Medical Cannabis Pilot Program Act;
        (4) smoking cannabis in any place where smoking is
    prohibited under the Smoke Free Illinois Act;
        (5) operating, navigating, or being in actual physical
    control of any motor vehicle, aircraft, or motorboat while
    using or under the influence of cannabis in violation of
    Section 11-501 or 11-502.1 of the Illinois Vehicle Code;
        (6) facilitating the use of cannabis by any person who
    is not allowed to use cannabis under this Act or the
    Compassionate Use of Medical Cannabis Pilot Program Act;
        (7) transferring cannabis to any person contrary to
    this Act or the Compassionate Use of Medical Cannabis Pilot
    Program Act;
        (8) the use of cannabis by a law enforcement officer,
    corrections officer, probation officer, or firefighter
    while on duty; or
        (9) the use of cannabis by a person who has a school
    bus permit or a Commercial Driver's License while on duty.
    As used in this Section, "public place" means any place
where a person could reasonably be expected to be observed by
others. "Public place" includes all parts of buildings owned in
whole or in part, or leased, by the State or a unit of local
government. "Public place" does not include a private residence
unless the private residence is used to provide licensed child
care, foster care, or other similar social service care on the
premises.
    (b) Nothing in this Act shall be construed to prevent the
arrest or prosecution of a person for reckless driving or
driving under the influence of cannabis if probable cause
exists.
    (c) Nothing in this Act shall prevent a private business
from restricting or prohibiting the use of cannabis on its
property, including areas where motor vehicles are parked.
    (d) Nothing in this Act shall require an individual or
business entity to violate the provisions of federal law,
including colleges or universities that must abide by the
Drug-Free Schools and Communities Act Amendments of 1989, that
require campuses to be drug free.
 
    Section 10-40. Restore, Reinvest, and Renew Program.
    (a) The General Assembly finds that in order to address the
disparities described below, aggressive approaches and
targeted resources to support local design and control of
community-based responses to these outcomes are required. To
carry out this intent, the Restore, Reinvest, and Renew (R3)
Program is created for the following purposes:
        (1) to directly address the impact of economic
    disinvestment, violence, and the historical overuse of
    criminal justice responses to community and individual
    needs by providing resources to support local design and
    control of community-based responses to these impacts;
        (2) to substantially reduce both the total amount of
    gun violence and concentrated poverty in this State;
        (3) to protect communities from gun violence through
    targeted investments and intervention programs, including
    economic growth and improving family violence prevention,
    community trauma treatment rates, gun injury victim
    services, and public health prevention activities;
        (4) to promote employment infrastructure and capacity
    building related to the social determinants of health in
    the eligible community areas.
    (b) In this Section, "Authority" means the Illinois
Criminal Justice Information Authority in coordination with
the Justice, Equity, and Opportunity Initiative of the
Lieutenant Governor's Office.
    (c) Eligibility of R3 Areas. Within 180 days after the
effective date of this Act, the Authority shall identify as
eligible, areas in this State by way of historically recognized
geographic boundaries, to be designated by the Restore,
Reinvest, and Renew Program Board as R3 Areas and therefore
eligible to apply for R3 funding. Local groups within R3 Areas
will be eligible to apply for State funding through the
Restore, Reinvest, and Renew Program Board. Qualifications for
designation as an R3 Area are as follows:
        (1) Based on an analysis of data, communities in this
    State that are high need, underserved, disproportionately
    impacted by historical economic disinvestment, and ravaged
    by violence as indicated by the highest rates of gun
    injury, unemployment, child poverty rates, and commitments
    to and returns from the Illinois Department of Corrections.
        (2) The Authority shall send to the Legislative Audit
    Commission and make publicly available its analysis and
    identification of eligible R3 Areas and shall recalculate
    he eligibility data every 4 years. On an annual basis, the
    Authority shall analyze data and indicate if data covering
    any R3 Area or portion of an Area has, for 4 consecutive
    years, substantially deviated from the average of
    statewide data on which the original calculation was made
    to determine the Areas, including disinvestment, violence,
    gun injury, unemployment, child poverty rates, or
    commitments to or returns from the Illinois Department of
    Corrections.
    (d) The Restore, Reinvest, and Renew Program Board shall
encourage collaborative partnerships within each R3 Area to
minimize multiple partnerships per Area.
    (e) The Restore, Reinvest, and Renew Program Board is
created and shall reflect the diversity of the State of
Illinois, including geographic, racial, and ethnic diversity.
Using the data provided by the Authority, the Restore,
Reinvest, and Renew Program Board shall be responsible for
designating the R3 Area boundaries and for the selection and
oversight of R3 Area grantees. The Restore, Reinvest, and Renew
Program Board ex officio members shall, within 4 months after
the effective date of this Act, convene the Board to appoint a
full Restore, Reinvest, and Renew Program Board and oversee,
provide guidance to, and develop an administrative structure
for the R3 Program.
            (1) The ex officio members are:
                (A) The Lieutenant Governor, or his or her
            designee, who shall serve as chair.
                (B) The Attorney General, or his or her
            designee.
                (C) The Director of Commerce and Economic
            Opportunity, or his or her designee.
                (D) The Director of Public Health, or his or
            her designee.
                (E) The Director of Corrections, or his or her
            designee.
                (F) The Executive Director of the Illinois
            Criminal Justice Information Authority, or his or
            her designee.
                (G) The Director of Employment Security, or
            his or her designee.
                (H) The Secretary of Human Services, or his or
            her designee.
                (I) A member of the Senate, designated by the
            President of the Senate.
                (J) A member of the House of Representatives,
            designated by the Speaker of the House of
            Representatives.
                (K) A member of the Senate, designated by the
            Minority Leader of the Senate.
                (L) A member of the House of Representatives,
            designated by the Minority Leader of the House of
            Representatives.
        (2) Within 90 days after the R3 Areas have been
    designated by the Restore, Reinvest, and Renew Program
    Board, the following members shall be appointed to the
    Board by the R3 board chair:
            (A) public officials of municipal geographic
        jurisdictions in the State that include an R3 Area, or
        their designees;
            (B) 4 community-based providers or community
        development organization representatives who provide
        services to treat violence and address the social
        determinants of health, or promote community
        investment, including, but not limited to, services
        such as job placement and training, educational
        services, workforce development programming, and
        wealth building. The community-based organization
        representatives shall work primarily in jurisdictions
        that include an R3 Area and no more than 2
        representatives shall work primarily in Cook County.
        At least one of the community-based providers shall
        have expertise in providing services to an immigrant
        population;
            (C) Two experts in the field of violence reduction;
            (D) One male who has previously been incarcerated
        and is over the age of 24 at time of appointment;
            (E) One female who has previously been
        incarcerated and is over the age of 24 at time of
        appointment;
            (F) Two individuals who have previously been
        incarcerated and are between the ages of 17 and 24 at
        time of appointment.
        As used in this paragraph (2), "an individual who has
    been previously incarcerated" means a person who has been
    convicted of or pled guilty to one or more felonies, who
    was sentenced to a term of imprisonment, and who has
    completed his or her sentence. Board members shall serve
    without compensation and may be reimbursed for reasonable
    expenses incurred in the performance of their duties from
    funds appropriated for that purpose. Once all its members
    have been appointed as outlined in items (A) through (F) of
    this paragraph (2), the Board may exercise any power,
    perform any function, take any action, or do anything in
    furtherance of its purposes and goals upon the appointment
    of a quorum of its members. The Board terms of the non-ex
    officio and General Assembly Board members shall end 4
    years from the date of appointment.
    (f) Within 12 months after the effective date of this Act,
the Board shall:
        (1) develop a process to solicit applications from
    eligible R3 Areas;
        (2) develop a standard template for both planning and
    implementation activities to be submitted by R3 Areas to
    the State;
        (3) identify resources sufficient to support the full
    administration and evaluation of the R3 Program, including
    building and sustaining core program capacity at the
    community and State levels;
        (4) review R3 Area grant applications and proposed
    agreements and approve the distribution of resources;
        (5) develop a performance measurement system that
    focuses on positive outcomes;
        (6) develop a process to support ongoing monitoring and
    evaluation of R3 programs; and
        (7) deliver an annual report to the General Assembly
    and to the Governor to be posted on the Governor's Office
    and General Assembly websites and provide to the public an
    annual report on its progress.
    (g) R3 Area grants.
        (1) Grant funds shall be awarded by the Illinois
    Criminal Justice Information Authority, in coordination
    with the R3 board, based on the likelihood that the plan
    will achieve the outcomes outlined in subsection (a) and
    consistent with the requirements of the Grant
    Accountability and Transparency Act. The R3 Program shall
    also facilitate the provision of training and technical
    assistance for capacity building within and among R3 Areas.
        (2) R3 Program Board grants shall be used to address
    economic development, violence prevention services,
    re-entry services, youth development, and civil legal aid.
        (3) The Restore, Reinvest, and Renew Program Board and
    the R3 Area grantees shall, within a period of no more than
    120 days from the completion of planning activities
    described in this Section, finalize an agreement on the
    plan for implementation. Implementation activities may:
            (A) have a basis in evidence or best practice
        research or have evaluations demonstrating the
        capacity to address the purpose of the program in
        subsection (a);
            (B) collect data from the inception of planning
        activities through implementation, with data
        collection technical assistance when needed, including
        cost data and data related to identified meaningful
        short-term, mid-term, and long-term goals and metrics;
            (C) report data to the Restore, Reinvest, and Renew
        Program Board biannually; and
            (D) report information as requested by the R3
        Program Board.
 
    Section 10-50. Employment; employer liability.
    (a) Nothing in this Act shall prohibit an employer from
adopting reasonable zero tolerance or drug free workplace
policies, or employment policies concerning drug testing,
smoking, consumption, storage, or use of cannabis in the
workplace or while on call provided that the policy is applied
in a nondiscriminatory manner.
    (b) Nothing in this Act shall require an employer to permit
an employee to be under the influence of or use cannabis in the
employer's workplace or while performing the employee's job
duties or while on call.
    (c) Nothing in this Act shall limit or prevent an employer
from disciplining an employee or terminating employment of an
employee for violating an employer's employment policies or
workplace drug policy.
    (d) An employer may consider an employee to be impaired or
under the influence of cannabis if the employer has a good
faith belief that an employee manifests specific, articulable
symptoms while working that decrease or lessen the employee's
performance of the duties or tasks of the employee's job
position, including symptoms of the employee's speech,
physical dexterity, agility, coordination, demeanor,
irrational or unusual behavior, or negligence or carelessness
in operating equipment or machinery; disregard for the safety
of the employee or others, or involvement in any accident that
results in serious damage to equipment or property; disruption
of a production or manufacturing process; or carelessness that
results in any injury to the employee or others. If an employer
elects to discipline an employee on the basis that the employee
is under the influence or impaired by cannabis, the employer
must afford the employee a reasonable opportunity to contest
the basis of the determination.
    (e) Nothing in this Act shall be construed to create or
imply a cause of action for any person against an employer for:
        (1) actions, including but not limited to subjecting an
    employee or applicant to reasonable drug and alcohol
    testing under the employer's workplace drug policy,
    including an employee's refusal to be tested or to
    cooperate in testing procedures or disciplining or
    termination of employment, based on the employer's good
    faith belief that an employee used or possessed cannabis in
    the employer's workplace or while performing the
    employee's job duties or while on call in violation of the
    employer's employment policies;
        (2) actions, including discipline or termination of
    employment, based on the employer's good faith belief that
    an employee was impaired as a result of the use of
    cannabis, or under the influence of cannabis, while at the
    employer's workplace or while performing the employee's
    job duties or while on call in violation of the employer's
    workplace drug policy; or
        (3) injury, loss, or liability to a third party if the
    employer neither knew nor had reason to know that the
    employee was impaired.
    (f) Nothing in this Act shall be construed to enhance or
diminish protections afforded by any other law, including but
not limited to the Compassionate Use of Medical Cannabis Pilot
Program Act or the Opioid Alternative Pilot Program.
    (g) Nothing in this Act shall be construed to interfere
with any federal, State, or local restrictions on employment
including, but not limited to, the United States Department of
Transportation regulation 49 CFR 40.151(e) or impact an
employer's ability to comply with federal or State law or cause
it to lose a federal or State contract or funding.
    (h) As used in this Section, "workplace" means the
employer's premises, including any building, real property,
and parking area under the control of the employer or area used
by an employee while in performance of the employee's job
duties, and vehicles, whether leased, rented, or owned.
"Workplace" may be further defined by the employer's written
employment policy, provided that the policy is consistent with
this Section.
    (i) For purposes of this Section, an employee is deemed "on
call" when such employee is scheduled with at least 24 hours'
notice by his or her employer to be on standby or otherwise
responsible for performing tasks related to his or her
employment either at the employer's premises or other
previously designated location by his or her employer or
supervisor to perform a work-related task.
 
ARTICLE 15.
LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS

 
    Section 15-5. Authority.
    (a) In this Article, "Department" means the Department of
Financial and Professional Regulation.
    (b) It is the duty of the Department to administer and
enforce the provisions of this Act relating to the licensure
and oversight of dispensing organizations and dispensing
organization agents unless otherwise provided in this Act.
    (c) No person shall operate a dispensing organization for
the purpose of serving purchasers of cannabis or cannabis
products without a license issued under this Article by the
Department. No person shall be an officer, director, manager,
or employee of a dispensing organization without having been
issued a dispensing organization agent card by the Department.
    (d) Subject to the provisions of this Act, the Department
may exercise the following powers and duties:
        (1) Prescribe forms to be issued for the administration
    and enforcement of this Article.
        (2) Examine, inspect, and investigate the premises,
    operations, and records of dispensing organization
    applicants and licensees.
        (3) Conduct investigations of possible violations of
    this Act pertaining to dispensing organizations and
    dispensing organization agents.
        (4) Conduct hearings on proceedings to refuse to issue
    or renew licenses or to revoke, suspend, place on
    probation, reprimand, or otherwise discipline a license
    under this Article or take other nondisciplinary action.
        (5) Adopt rules required for the administration of this
    Article.
 
    Section 15-10. Medical cannabis dispensing organization
exemption. This Article does not apply to medical cannabis
dispensing organizations registered under the Compassionate
Use of Medical Cannabis Pilot Program Act, except where
otherwise specified.
 
    Section 15-15. Early Approval Adult Use Dispensing
Organization License.
    (a) Any medical cannabis dispensing organization holding a
valid registration under the Compassionate Use of Medical
Cannabis Pilot Program Act as of the effective date of this Act
may, within 60 days of the effective date of this Act, apply to
the Department for an Early Approval Adult Use Dispensing
Organization License to serve purchasers at any medical
cannabis dispensing location in operation on the effective date
of this Act, pursuant to this Section.
    (b) A medical cannabis dispensing organization seeking
issuance of an Early Approval Adult Use Dispensing Organization
License to serve purchasers at any medical cannabis dispensing
location in operation as of the effective date of this Act
shall submit an application on forms provided by the
Department. The application must be submitted by the same
person or entity that holds the medical cannabis dispensing
organization registration and include the following:
        (1) Payment of a nonrefundable fee of $30,000 to be
    deposited into the Cannabis Regulation Fund;
        (2) Proof of registration as a medical cannabis
    dispensing organization that is in good standing;
        (3) Certification that the applicant will comply with
    the requirements contained in the Compassionate Use of
    Medical Cannabis Pilot Program Act except as provided in
    this Act;
        (4) The legal name of the dispensing organization;
        (5) The physical address of the dispensing
    organization;
        (6) The name, address, social security number, and date
    of birth of each principal officer and board member of the
    dispensing organization, each of whom must be at least 21
    years of age;
        (7) A nonrefundable Cannabis Business Development Fee
    equal to 3% of the dispensing organization's total sales
    between June 1, 2018 to June 1, 2019, or $100,000,
    whichever is less, to be deposited into the Cannabis
    Business Development Fund; and
        (8) Identification of one of the following Social
    Equity Inclusion Plans to be completed by March 31, 2021:
            (A) Make a contribution of 3% of total sales from
        June 1, 2018 to June 1, 2019, or $100,000, whichever is
        less, to the Cannabis Business Development Fund. This
        is in addition to the fee required by item (7) of this
        subsection (b);
            (B) Make a grant of 3% of total sales from June 1,
        2018 to June 1, 2019, or $100,000, whichever is less,
        to a cannabis industry training or education program at
        an Illinois community college as defined in the Public
        Community College Act;
            (C) Make a donation of $100,000 or more to a
        program that provides job training services to persons
        recently incarcerated or that operates in a
        Disproportionately Impacted Area;
            (D) Participate as a host in a cannabis business
        establishment incubator program approved by the
        Department of Commerce and Economic Opportunity, and
        in which an Early Approval Adult Use Dispensing
        Organization License holder agrees to provide a loan of
        at least $100,000 and mentorship to incubate a licensee
        that qualifies as a Social Equity Applicant for at
        least a year. As used in this Section, "incubate" means
        providing direct financial assistance and training
        necessary to engage in licensed cannabis industry
        activity similar to that of the host licensee. The
        Early Approval Adult Use Dispensing Organization
        License holder or the same entity holding any other
        licenses issued pursuant to this Act shall not take an
        ownership stake of greater than 10% in any business
        receiving incubation services to comply with this
        subsection. If an Early Approval Adult Use Dispensing
        Organization License holder fails to find a business to
        incubate to comply with this subsection before its
        Early Approval Adult Use Dispensing Organization
        License expires, it may opt to meet the requirement of
        this subsection by completing another item from this
        subsection; or
            (E) Participate in a sponsorship program for at
        least 2 years approved by the Department of Commerce
        and Economic Opportunity in which an Early Approval
        Adult Use Dispensing Organization License holder
        agrees to provide an interest-free loan of at least
        $200,000 to a Social Equity Applicant. The sponsor
        shall not take an ownership stake in any cannabis
        business establishment receiving sponsorship services
        to comply with this subsection.
    (c) The license fee required by paragraph (1) of subsection
(b) of this Section shall be in addition to any license fee
required for the renewal of a registered medical cannabis
dispensing organization license.
    (d) Applicants must submit all required information,
including the requirements in subsection (b) of this Section,
to the Department. Failure by an applicant to submit all
required information may result in the application being
disqualified.
    (e) If the Department receives an application that fails to
provide the required elements contained in subsection (b), the
Department shall issue a deficiency notice to the applicant.
The applicant shall have 10 calendar days from the date of the
deficiency notice to submit complete information. Applications
that are still incomplete after this opportunity to cure may be
disqualified.
    (f) If an applicant meets all the requirements of
subsection (b) of this Section, the Department shall issue the
Early Approval Adult Use Dispensing Organization License
within 14 days of receiving a completed application unless:
        (1) The licensee or a principal officer is delinquent
    in filing any required tax returns or paying any amounts
    owed to the State of Illinois;
        (2) The Secretary of Financial and Professional
    Regulation determines there is reason, based on documented
    compliance violations, the licensee is not entitled to an
    Early Approval Adult Use Dispensing Organization License;
    or
        (3) Any principal officer fails to register and remain
    in compliance with this Act or the Compassionate Use of
    Medical Cannabis Pilot Program Act.
    (g) A registered medical cannabis dispensing organization
that obtains an Early Approval Adult Use Dispensing
Organization License may begin selling cannabis,
cannabis-infused products, paraphernalia, and related items to
purchasers under the rules of this Act no sooner than January
1, 2020.
    (h) A dispensing organization holding a medical cannabis
dispensing organization license issued under the Compassionate
Use of Medical Cannabis Pilot Program Act must maintain an
adequate supply of cannabis and cannabis-infused products for
purchase by qualifying patients, caregivers, provisional
patients, and Opioid Alternative Pilot Program participants.
For the purposes of this subsection, "adequate supply" means a
monthly inventory level that is comparable in type and quantity
to those medical cannabis products provided to patients and
caregivers on an average monthly basis for the 6 months before
the effective date of this Act.
    (i) If there is a shortage of cannabis or cannabis-infused
products, a dispensing organization holding both a dispensing
organization license under the Compassionate Use of Medical
Cannabis Pilot Program Act and this Act shall prioritize
serving qualifying patients, caregivers, provisional patients,
and Opioid Alternative Pilot Program participants before
serving purchasers.
    (j) Notwithstanding any law or rule to the contrary, a
person that holds a medical cannabis dispensing organization
license issued under the Compassionate Use of Medical Cannabis
Pilot Program Act and an Early Approval Adult Use Dispensing
Organization License may permit purchasers into a limited
access area as that term is defined in administrative rules
made under the authority in the Compassionate Use of Medical
Cannabis Pilot Program Act.
    (k) An Early Approval Adult Use Dispensing Organization
License is valid until March 31, 2021. A dispensing
organization that obtains an Early Approval Adult Use
Dispensing Organization License shall receive written or
electronic notice 90 days before the expiration of the license
that the license will expire, and inform the license holder
that it may renew its Early Approval Adult Use Dispensing
Organization License. The Department shall renew the Early
Approval Adult Use Dispensing Organization License within 60
days of the renewal application being deemed complete if:
        (1) the dispensing organization submits an application
    and the required nonrefundable renewal fee of $30,000, to
    be deposited into the Cannabis Regulation Fund;
        (2) the Department has not suspended or revoked the
    Early Approval Adult Use Dispensing Organization License
    or a medical cannabis dispensing organization license on
    the same premises for violations of this Act, the
    Compassionate Use of Medical Cannabis Pilot Program Act, or
    rules adopted pursuant to those Acts; and
        (3) the dispensing organization has completed a Social
    Equity Inclusion Plan as required by paragraph (8) of
    subsection (b) of this Section.
    (l) The Early Approval Adult Use Dispensing Organization
License renewed pursuant to subsection (k) of this Section
shall expire March 31, 2022. The Early Approval Adult Use
Dispensing Organization Licensee shall receive written or
electronic notice 90 days before the expiration of the license
that the license will expire, and inform the license holder
that it may apply for an Adult Use Dispensing Organization
License. The Department shall grant an Adult Use Dispensing
Organization License within 60 days of an application being
deemed complete if the applicant has met all of the criteria in
Section 15-36.
    (m) If a dispensary fails to submit an application for an
Adult Use Dispensing Organization License before the
expiration of the Early Approval Adult Use Dispensing
Organization License pursuant to subsection (k) of this
Section, the dispensing organization shall cease serving
purchasers and cease all operations until it receives an Adult
Use Dispensing Organization License.
    (n) A dispensing organization agent who holds a valid
dispensing organization agent identification card issued under
the Compassionate Use of Medical Cannabis Pilot Program Act and
is an officer, director, manager, or employee of the dispensing
organization licensed under this Section may engage in all
activities authorized by this Article to be performed by a
dispensing organization agent.
    (o) All fees collected pursuant to this Section shall be
deposited into the Cannabis Regulation Fund, unless otherwise
specified.
 
    Section 15-20. Early Approval Adult Use Dispensing
Organization License; secondary site.
    (a) If the Department suspends or revokes the Early
Approval Adult Use Dispensing Organization License of a
dispensing organization that also holds a medical cannabis
dispensing organization license issued under the Compassionate
Use of Medical Cannabis Pilot Program Act, the Department may
consider the suspension or revocation as grounds to take
disciplinary action against the medical cannabis dispensing
organization license.
    (a-5) If, within 360 days of the effective date of this
Act, a dispensing organization is unable to find a location
within the BLS Regions prescribed in subsection (a) of this
Section in which to operate an Early Approval Adult Use
Dispensing Organization at a secondary site because no
jurisdiction within the prescribed area allows the operation of
an Adult Use Cannabis Dispensing Organization, the Department
of Financial and Professional Regulation may waive the
geographic restrictions of subsection (a) of this Section and
specify another BLS Region into which the dispensary may be
placed.
    (b) Any medical cannabis dispensing organization holding a
valid registration under the Compassionate Use of Medical
Cannabis Pilot Program Act as of the effective date of this Act
may, within 60 days of the effective date of this Act, apply to
the Department for an Early Approval Adult Use Dispensing
Organization License to operate a dispensing organization to
serve purchasers at a secondary site not within 1,500 feet of
another medical cannabis dispensing organization or adult use
dispensing organization. The Early Approval Adult Use
Dispensing Organization secondary site shall be within any BLS
region that shares territory with the dispensing organization
district to which the medical cannabis dispensing organization
is assigned under the administrative rules for dispensing
organizations under the Compassionate Use of Medical Cannabis
Pilot Program Act.
    (c) A medical cannabis dispensing organization seeking
issuance of an Early Approval Adult Use Dispensing Organization
License at a secondary site to serve purchasers at a secondary
site as prescribed in subsection (b) of this Section shall
submit an application on forms provided by the Department. The
application must meet or include the following qualifications:
        (1) a payment of a nonrefundable application fee of
    $30,000;
        (2) proof of registration as a medical cannabis
    dispensing organization that is in good standing;
        (3) submission of the application by the same person or
    entity that holds the medical cannabis dispensing
    organization registration;
        (4) the legal name of the medical cannabis dispensing
    organization;
        (5) the physical address of the medical cannabis
    dispensing organization and the proposed physical address
    of the secondary site;
        (6) a copy of the current local zoning ordinance
    Sections relevant to dispensary operations and
    documentation of the approval, the conditional approval or
    the status of a request for zoning approval from the local
    zoning office that the proposed dispensary location is in
    compliance with the local zoning rules;
        (7) a plot plan of the dispensary drawn to scale. The
    applicant shall submit general specifications of the
    building exterior and interior layout;
        (8) a statement that the dispensing organization
    agrees to respond to the Department's supplemental
    requests for information;
        (9) for the building or land to be used as the proposed
    dispensary:
            (A) if the property is not owned by the applicant,
        a written statement from the property owner and
        landlord, if any, certifying consent that the
        applicant may operate a dispensary on the premises; or
            (B) if the property is owned by the applicant,
        confirmation of ownership;
        (10) a copy of the proposed operating bylaws;
        (11) a copy of the proposed business plan that complies
    with the requirements in this Act, including, at a minimum,
    the following:
            (A) a description of services to be offered; and
            (B) a description of the process of dispensing
        cannabis;
        (12) a copy of the proposed security plan that complies
    with the requirements in this Article, including:
            (A) a description of the delivery process by which
        cannabis will be received from a transporting
        organization, including receipt of manifests and
        protocols that will be used to avoid diversion, theft,
        or loss at the dispensary acceptance point; and
            (B) the process or controls that will be
        implemented to monitor the dispensary, secure the
        premises, agents, patients, and currency, and prevent
        the diversion, theft, or loss of cannabis; and
            (C) the process to ensure that access to the
        restricted access areas is restricted to, registered
        agents, service professionals, transporting
        organization agents, Department inspectors, and
        security personnel;
        (13) a proposed inventory control plan that complies
    with this Section;
        (14) the name, address, social security number, and
    date of birth of each principal officer and board member of
    the dispensing organization; each of those individuals
    shall be at least 21 years of age;
        (15) a nonrefundable Cannabis Business Development Fee
    equal to $200,000, to be deposited into the Cannabis
    Business Development Fund; and
        (16) a commitment to completing one of the following
    Social Equity Inclusion Plans in subsection (d).
    (d) Before receiving an Early Approval Adult Use Dispensing
Organization License at a secondary site, a dispensing
organization shall indicate the Social Equity Inclusion Plan
that the applicant plans to achieve before the expiration of
the Early Approval Adult Use Dispensing Organization License
from the list below:
        (1) make a contribution of 3% of total sales from June
    1, 2018 to June 1, 2019, or $100,000, whichever is less, to
    the Cannabis Business Development Fund. This is in addition
    to the fee required by paragraph (16) of subsection (c) of
    this Section;
        (2) make a grant of 3% of total sales from June 1, 2018
    to June 1, 2019, or $100,000, whichever is less, to a
    cannabis industry training or education program at an
    Illinois community college as defined in the Public
    Community College Act;
        (3) make a donation of $100,000 or more to a program
    that provides job training services to persons recently
    incarcerated or that operates in a Disproportionately
    Impacted Area;
        (4) participate as a host in a cannabis business
    establishment incubator program approved by the Department
    of Commerce and Economic Opportunity, and in which an Early
    Approval Adult Use Dispensing Organization License at a
    secondary site holder agrees to provide a loan of at least
    $100,000 and mentorship to incubate a licensee that
    qualifies as a Social Equity Applicant for at least a year.
    In this paragraph (4), "incubate" means providing direct
    financial assistance and training necessary to engage in
    licensed cannabis industry activity similar to that of the
    host licensee. The Early Approval Adult Use Dispensing
    Organization License holder or the same entity holding any
    other licenses issued under this Act shall not take an
    ownership stake of greater than 10% in any business
    receiving incubation services to comply with this
    subsection. If an Early Approval Adult Use Dispensing
    Organization License at a secondary site holder fails to
    find a business to incubate in order to comply with this
    subsection before its Early Approval Adult Use Dispensing
    Organization License at a secondary site expires, it may
    opt to meet the requirement of this subsection by
    completing another item from this subsection before the
    expiration of its Early Approval Adult Use Dispensing
    Organization License at a secondary site to avoid a
    penalty; or
        (5) participate in a sponsorship program for at least 2
    years approved by the Department of Commerce and Economic
    Opportunity in which an Early Approval Adult Use Dispensing
    Organization License at a secondary site holder agrees to
    provide an interest-free loan of at least $200,000 to a
    Social Equity Applicant. The sponsor shall not take an
    ownership stake of greater than 10% in any business
    receiving sponsorship services to comply with this
    subsection.
    (e) The license fee required by paragraph (1) of subsection
(c) of this Section is in addition to any license fee required
for the renewal of a registered medical cannabis dispensing
organization license.
    (f) Applicants must submit all required information,
including the requirements in subsection (c) of this Section,
to the Department. Failure by an applicant to submit all
required information may result in the application being
disqualified.
    (g) If the Department receives an application that fails to
provide the required elements contained in subsection (c), the
Department shall issue a deficiency notice to the applicant.
The applicant shall have 10 calendar days from the date of the
deficiency notice to submit complete information. Applications
that are still incomplete after this opportunity to cure may be
disqualified.
    (h) Once all required information and documents have been
submitted, the Department will review the application. The
Department may request revisions and retains final approval
over dispensary features. Once the application is complete and
meets the Department's approval, the Department shall
conditionally approve the license. Final approval is
contingent on the build-out and Department inspection.
    (i) Upon submission of the Early Approval Adult Use
Dispensing Organization at a secondary site application, the
applicant shall request an inspection and the Department may
inspect the Early Approval Adult Use Dispensing Organization's
secondary site to confirm compliance with the application and
this Act.
    (j) The Department shall only issue an Early Approval Adult
Use Dispensing Organization License at a secondary site after
the completion of a successful inspection.
    (k) If an applicant passes the inspection under this
Section, the Department shall issue the Early Approval Adult
Use Dispensing Organization License at a secondary site within
10 business days unless:
        (1) The licensee; principal officer, board member, or
    person having a financial or voting interest of 5% or
    greater in the licensee; or agent is delinquent in filing
    any required tax returns or paying any amounts owed to the
    State of Illinois; or
        (2) The Secretary of Financial and Professional
    Regulation determines there is reason, based on documented
    compliance violations, the licensee is not entitled to an
    Early Approval Adult Use Dispensing Organization License
    at its secondary site.
    (l) Once the Department has issued a license, the
dispensing organization shall notify the Department of the
proposed opening date.
    (m) A registered medical cannabis dispensing organization
that obtains an Early Approval Adult Use Dispensing
Organization License at a secondary site may begin selling
cannabis, cannabis-infused products, paraphernalia, and
related items to purchasers under the rules of this Act no
sooner than January 1, 2020.
    (n) If there is a shortage of cannabis or cannabis-infused
products, a dispensing organization holding both a dispensing
organization license under the Compassionate Use of Medical
Cannabis Pilot Program Act and this Article shall prioritize
serving qualifying patients and caregivers before serving
purchasers.
    (o) An Early Approval Adult Use Dispensing Organization
License at a secondary site is valid until March 31, 2021. A
dispensing organization that obtains an Early Approval Adult
Use Dispensing Organization License at a secondary site shall
receive written or electronic notice 90 days before the
expiration of the license that the license will expire, and
inform the license holder that it may renew its Early Approval
Adult Use Dispensing Organization License at a secondary site.
The Department shall renew an Early Approval Adult Use
Dispensing Organization License at a secondary site within 60
days of submission of the renewal application being deemed
complete if:
        (1) the dispensing organization submits an application
    and the required nonrefundable renewal fee of $30,000, to
    be deposited into the Cannabis Regulation Fund;
        (2) the Department has not suspended or revoked the
    Early Approval Adult Use Dispensing Organization License
    or a medical cannabis dispensing organization license held
    by the same person or entity for violating this Act or
    rules adopted under this Act or the Compassionate Use of
    Medical Cannabis Pilot Program Act or rules adopted under
    that Act; and
        (3) the dispensing organization has completed a Social
    Equity Inclusion Plan as required by paragraph (16) of
    subsection (c) of this Section.     
    (p) The Early Approval Adult Use Dispensing Organization
Licensee at a secondary site renewed pursuant to subsection (o)
shall receive written or electronic notice 90 days before the
expiration of the license that the license will expire, and
inform the license holder that it may apply for an Adult Use
Dispensing Organization License. The Department shall grant an
Adult Use Dispensing Organization License within 60 days of an
application being deemed complete if the applicant has meet all
of the criteria in Section 15-36.
    (q) If a dispensing organization fails to submit an
application for renewal of an Early Approval Adult Use
Dispensing Organization License or for an Adult Use Dispensing
Organization License before the expiration dates provided in
subsections (o) and (p) of this Section, the dispensing
organization shall cease serving purchasers until it receives a
renewal or an Adult Use Dispensing Organization License.
    (r) A dispensing organization agent who holds a valid
dispensing organization agent identification card issued under
the Compassionate Use of Medical Cannabis Pilot Program Act and
is an officer, director, manager, or employee of the dispensing
organization licensed under this Section may engage in all
activities authorized by this Article to be performed by a
dispensing organization agent.
    (s) If the Department suspends or revokes the Early
Approval Adult Use Dispensing Organization License of a
dispensing organization that also holds a medical cannabis
dispensing organization license issued under the Compassionate
Use of Medical Cannabis Pilot Program Act, the Department may
consider the suspension or revocation as grounds to take
disciplinary action against the medical cannabis dispensing
organization.
    (t) All fees or fines collected from an Early Approval
Adult Use Dispensary Organization License at a secondary site
holder as a result of a disciplinary action in the enforcement
of this Act shall be deposited into the Cannabis Regulation
Fund and be appropriated to the Department for the ordinary and
contingent expenses of the Department in the administration and
enforcement of this Section.
 
    Section 15-25. Awarding of Conditional Adult Use
Dispensing Organization Licenses prior to January 1, 2021.
    (a) The Department shall issue up to 75 Conditional Adult
Use Dispensing Organization Licenses before May 1, 2020.
    (b) The Department shall make the application for a
Conditional Adult Use Dispensing Organization License
available no later than October 1, 2019 and shall accept
applications no later than January 1, 2020.
    (c) To ensure the geographic dispersion of Conditional
Adult Use Dispensing Organization License holders, the
following number of licenses shall be awarded in each BLS
Region as determined by each region's percentage of the State's
population:
        (1) Bloomington: 1
        (2) Cape Girardeau: 1
        (3) Carbondale-Marion: 1
        (4) Champaign-Urbana: 1
        (5) Chicago-Naperville-Elgin: 47
        (6) Danville: 1
        (7) Davenport-Moline-Rock Island: 1
        (8) Decatur: 1
        (9) Kankakee: 1
        (10) Peoria: 3
        (11) Rockford: 2
        (12) St. Louis: 4
        (13) Springfield: 1
        (14) Northwest Illinois nonmetropolitan: 3
        (15) West Central Illinois nonmetropolitan: 3
        (16) East Central Illinois nonmetropolitan: 2
        (17) South Illinois nonmetropolitan: 2
    (d) An applicant seeking issuance of a Conditional Adult
Use Dispensing Organization License shall submit an
application on forms provided by the Department. An applicant
must meet the following requirements:
        (1) Payment of a nonrefundable application fee of
    $5,000 for each license for which the applicant is
    applying, which shall be deposited into the Cannabis
    Regulation Fund;
        (2) Certification that the applicant will comply with
    the requirements contained in this Act;
        (3) The legal name of the proposed dispensing
    organization;
        (4) A statement that the dispensing organization
    agrees to respond to the Department's supplemental
    requests for information;
        (5) From each principal officer, a statement
    indicating whether that person:
            (A) has previously held or currently holds an
        ownership interest in a cannabis business
        establishment in Illinois; or
            (B) has held an ownership interest in a dispensing
        organization or its equivalent in another state or
        territory of the United States that had the dispensing
        organization registration or license suspended,
        revoked, placed on probationary status, or subjected
        to other disciplinary action;
        (6) Disclosure of whether any principal officer has
    ever filed for bankruptcy or defaulted on spousal support
    or child support obligation;
        (7) A resume for each principal officer, including
    whether that person has an academic degree, certification,
    or relevant experience with a cannabis business
    establishment or in a related industry;
        (8) A description of the training and education that
    will be provided to dispensing organization agents;
        (9) A copy of the proposed operating bylaws;
        (10) A copy of the proposed business plan that complies
    with the requirements in this Act, including, at a minimum,
    the following:
            (A) A description of services to be offered; and
            (B) A description of the process of dispensing
        cannabis;
        (11) A copy of the proposed security plan that complies
    with the requirements in this Article, including:
            (A) The process or controls that will be
        implemented to monitor the dispensary, secure the
        premises, agents, and currency, and prevent the
        diversion, theft, or loss of cannabis; and
            (B) The process to ensure that access to the
        restricted access areas is restricted to, registered
        agents, service professionals, transporting
        organization agents, Department inspectors, and
        security personnel;
        (12) A proposed inventory control plan that complies
    with this Section;
        (13) A proposed floor plan, a square footage estimate,
    and a description of proposed security devices, including,
    without limitation, cameras, motion detectors, servers,
    video storage capabilities, and alarm service providers;
        (14) The name, address, social security number, and
    date of birth of each principal officer and board member of
    the dispensing organization; each of those individuals
    shall be at least 21 years of age;
        (15) Evidence of the applicant's status as a Social
    Equity Applicant, if applicable, and whether a Social
    Equity Applicant plans to apply for a loan or grant issued
    by the Department of Commerce and Economic Opportunity;
        (16) The address, telephone number, and email address
    of the applicant's principal place of business, if
    applicable. A post office box is not permitted;
        (17) Written summaries of any information regarding
    instances in which a business or not-for-profit that a
    prospective board member previously managed or served on
    were fined or censured, or any instances in which a
    business or not-for-profit that a prospective board member
    previously managed or served on had its registration
    suspended or revoked in any administrative or judicial
    proceeding;
        (18) A plan for community engagement;
        (19) Procedures to ensure accurate recordkeeping and
    security measures that are in accordance with this Article
    and Department rules;
        (20) The estimated volume of cannabis it plans to store
    at the dispensary;
        (21) A description of the features that will provide
    accessibility to purchasers as required by the Americans
    with Disabilities Act;
        (22) A detailed description of air treatment systems
    that will be installed to reduce odors;
        (23) A reasonable assurance that the issuance of a
    license will not have a detrimental impact on the community
    in which the applicant wishes to locate;
        (24) The dated signature of each principal officer;
        (25) A description of the enclosed, locked facility
    where cannabis will be stored by the dispensing
    organization;
        (26) Signed statements from each dispensing
    organization agent stating that he or she will not divert
    cannabis;
        (27) The number of licenses it is applying for in each
    BLS Region;
        (28) A diversity plan that includes a narrative of at
    least 2,500 words that establishes a goal of diversity in
    ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity;
        (29) A contract with a private security contractor that
    is licensed under Section 10-5 of the Private Detective,
    Private Alarm, Private Security, Fingerprint Vendor, and
    Locksmith Act of 2004 in order for the dispensary to have
    adequate security at its facility; and
        (30) Other information deemed necessary by the
    Illinois Cannabis Regulation Oversight Officer to conduct
    the disparity and availability study referenced in
    subsection (e) of Section 5-45.
    (e) An applicant who receives a Conditional Adult Use
Dispensing Organization License under this Section has 180 days
from the date of award to identify a physical location for the
dispensing organization retail storefront. Before a
conditional licensee receives an authorization to build out the
dispensing organization from the Department, the Department
shall inspect the physical space selected by the conditional
licensee. The Department shall verify the site is suitable for
public access, the layout promotes the safe dispensing of
cannabis, the location is sufficient in size, power allocation,
lighting, parking, handicapped accessible parking spaces,
accessible entry and exits as required by the Americans with
Disabilities Act, product handling, and storage. The applicant
shall also provide a statement of reasonable assurance that the
issuance of a license will not have a detrimental impact on the
community. The applicant shall also provide evidence that the
location is not within 1,500 feet of an existing dispensing
organization. If an applicant is unable to find a suitable
physical address in the opinion of the Department within 180
days of the issuance of the Conditional Adult Use Dispensing
Organization License, the Department may extend the period for
finding a physical address another 180 days if the Conditional
Adult Use Dispensing Organization License holder demonstrates
concrete attempts to secure a location and a hardship. If the
Department denies the extension or the Conditional Adult Use
Dispensing Organization License holder is unable to find a
location or become operational within 360 days of being awarded
a conditional license, the Department shall rescind the
conditional license and award it to the next highest scoring
applicant in the BLS Region for which the license was assigned,
provided the applicant receiving the license: (i) confirms a
continued interest in operating a dispensing organization;
(ii) can provide evidence that the applicant continues to meet
the financial requirements provided in subsection (c) of this
Section; and (iii) has not otherwise become ineligible to be
awarded a dispensing organization license. If the new awardee
is unable to accept the Conditional Adult Use Dispensing
Organization License, the Department shall award the
Conditional Adult Use Dispensing Organization License to the
next highest scoring applicant in the same manner. The new
awardee shall be subject to the same required deadlines as
provided in this subsection.
    (e-5) If, within 180 days of being awarded a Conditional
Adult Use Dispensing Organization license, a dispensing
organization is unable to find a location within the BLS Region
in which it was awarded a Conditional Adult Use Dispensing
Organization license because no jurisdiction within the BLS
Region allows for the operation of an Adult Use Dispensing
Organization, the Department of Financial and Professional
Regulation may authorize the Conditional Adult Use Dispensing
Organization License holder to transfer its license to a BLS
Region specified by the Department.
    (f) A dispensing organization that is awarded a Conditional
Adult Use Dispensing Organization License pursuant to the
criteria in Section 15-30 shall not purchase, possess, sell, or
dispense cannabis or cannabis-infused products until the
person has received an Adult Use Dispensing Organization
License issued by the Department pursuant to Section 15-36 of
this Act. The Department shall not issue an Adult Use
Dispensing Organization License until:
        (1) the Department has inspected the dispensary site
    and proposed operations and verified that they are in
    compliance with this Act and local zoning laws; and
        (2) the Conditional Adult Use Dispensing Organization
    License holder has paid a registration fee of $60,000, or a
    prorated amount accounting for the difference of time
    between when the Adult Use Dispensing Organization License
    is issued and March 31 of the next even-numbered year.
    (g) The Department shall conduct a background check of the
prospective organization agents in order to carry out this
Article. The Department of State Police shall charge the
applicant a fee for conducting the criminal history record
check, which shall be deposited into the State Police Services
Fund and shall not exceed the actual cost of the record check.
Each person applying as a dispensing organization agent shall
submit a full set of fingerprints to the Department of State
Police for the purpose of obtaining a State and federal
criminal records check. These fingerprints shall be checked
against the fingerprint records now and hereafter, to the
extent allowed by law, filed in the Department of State Police
and Federal Bureau of Identification criminal history records
databases. The Department of State Police shall furnish,
following positive identification, all Illinois conviction
information to the Department.
 
    Section 15-30. Selection criteria for conditional licenses
awarded under Section 15-25.
    (a) Applicants for a Conditional Adult Use Dispensing
Organization License must submit all required information,
including the information required in Section 15-25, to the
Department. Failure by an applicant to submit all required
information may result in the application being disqualified.
    (b) If the Department receives an application that fails to
provide the required elements contained in this Section, the
Department shall issue a deficiency notice to the applicant.
The applicant shall have 10 calendar days from the date of the
deficiency notice to resubmit the incomplete information.
Applications that are still incomplete after this opportunity
to cure will not be scored and will be disqualified.
    (c) The Department will award up to 250 points to complete
applications based on the sufficiency of the applicant's
responses to required information. Applicants will be awarded
points based on a determination that the application
satisfactorily includes the following elements:
        (1) Suitability of Employee Training Plan (15 points).
            The plan includes an employee training plan that
        demonstrates that employees will understand the rules
        and laws to be followed by dispensary employees, have
        knowledge of any security measures and operating
        procedures of the dispensary, and are able to advise
        purchasers on how to safely consume cannabis and use
        individual products offered by the dispensary.
        (2) Security and Recordkeeping (65 points).
            (A) The security plan accounts for the prevention
        of the theft or diversion of cannabis. The security
        plan demonstrates safety procedures for dispensary
        agents and purchasers, and safe delivery and storage of
        cannabis and currency. It demonstrates compliance with
        all security requirements in this Act and rules.
            (B) A plan for recordkeeping, tracking, and
        monitoring inventory, quality control, and other
        policies and procedures that will promote standard
        recordkeeping and discourage unlawful activity. This
        plan includes the applicant's strategy to communicate
        with the Department and the Department of State Police
        on the destruction and disposal of cannabis. The plan
        must also demonstrate compliance with this Act and
        rules.
            (C) The security plan shall also detail which
        private security contractor licensed under Section
        10-5 of the Private Detective, Private Alarm, Private
        Security, Fingerprint Vendor, and Locksmith Act of
        2004 the dispensary will contract with in order to
        provide adequate security at its facility.
        (3) Applicant's Business Plan, Financials, Operating
    and Floor Plan (65 points).
            (A) The business plan shall describe, at a minimum,
        how the dispensing organization will be managed on a
        long-term basis. This shall include a description of
        the dispensing organization's point-of-sale system,
        purchases and denials of sale, confidentiality, and
        products and services to be offered. It will
        demonstrate compliance with this Act and rules.
            (B) The operating plan shall include, at a minimum,
        best practices for day-to-day dispensary operation and
        staffing. The operating plan may also include
        information about employment practices, including
        information about the percentage of full-time
        employees who will be provided a living wage.
            (C) The proposed floor plan is suitable for public
        access, the layout promotes safe dispensing of
        cannabis, is compliant with the Americans with
        Disabilities Act and the Environmental Barriers Act,
        and facilitates safe product handling and storage.
        (4) Knowledge and Experience (30 points).
            (A) The applicant's principal officers must
        demonstrate experience and qualifications in business
        management or experience with the cannabis industry.
        This includes ensuring optimal safety and accuracy in
        the dispensing and sale of cannabis.
            (B) The applicant's principal officers must
        demonstrate knowledge of various cannabis product
        strains or varieties and describe the types and
        quantities of products planned to be sold. This
        includes confirmation of whether the dispensing
        organization plans to sell cannabis paraphernalia or
        edibles.
            (C) Knowledge and experience may be demonstrated
        through experience in other comparable industries that
        reflect on applicant's ability to operate a cannabis
        business establishment.
        (5) Status as a Social Equity Applicant (50 points).
            The applicant meets the qualifications for a
        Social Equity Applicant as set forth in this Act.
        (6) Labor and employment practices (5 points): The
    applicant may describe plans to provide a safe, healthy,
    and economically beneficial working environment for its
    agents, including, but not limited to, codes of conduct,
    health care benefits, educational benefits, retirement
    benefits, living wage standards, and entering a labor peace
    agreement with employees.
        (7) Environmental Plan (5 points): The applicant may
    demonstrate an environmental plan of action to minimize the
    carbon footprint, environmental impact, and resource needs
    for the dispensary, which may include, without limitation,
    recycling cannabis product packaging.
        (8) Illinois owner (5 points): The applicant is 51% or
    more owned and controlled by an Illinois resident, who can
    prove residency in each of the past 5 years with tax
    records.
        (9) Status as veteran (5 points): The applicant is 51%
    or more controlled and owned by an individual or
    individuals who meet the qualifications of a veteran as
    defined by Section 45-57 of the Illinois Procurement Code.
        (10) A diversity plan (5 points): that includes a
    narrative of not more than 2,500 words that establishes a
    goal of diversity in ownership, management, employment,
    and contracting to ensure that diverse participants and
    groups are afforded equality of opportunity.
    (d) The Department may also award up to 2 bonus points for
a plan to engage with the community. The applicant may
demonstrate a desire to engage with its community by
participating in one or more of, but not limited to, the
following actions: (i) establishment of an incubator program
designed to increase participation in the cannabis industry by
persons who would qualify as Social Equity Applicants; (ii)
providing financial assistance to substance abuse treatment
centers; (iii) educating children and teens about the potential
harms of cannabis use; or (iv) other measures demonstrating a
commitment to the applicant's community. Bonus points will only
be awarded if the Department receives applications that receive
an equal score for a particular region.
    (e) The Department may verify information contained in each
application and accompanying documentation to assess the
applicant's veracity and fitness to operate a dispensing
organization.
    (f) The Department may, in its discretion, refuse to issue
an authorization to any applicant:
        (1) Who is unqualified to perform the duties required
    of the applicant;
        (2) Who fails to disclose or states falsely any
    information called for in the application;
        (3) Who has been found guilty of a violation of this
    Act, or whose medical cannabis dispensing organization,
    medical cannabis cultivation organization, or Early
    Approval Adult Use Dispensing Organization License, or
    Early Approval Adult Use Dispensing Organization License
    at a secondary site, or Early Approval Cultivation Center
    License was suspended, restricted, revoked, or denied for
    just cause, or the applicant's cannabis business
    establishment license was suspended, restricted, revoked,
    or denied in any other state; or
        (4) Who has engaged in a pattern or practice of unfair
    or illegal practices, methods, or activities in the conduct
    of owning a cannabis business establishment or other
    business.
    (g) The Department shall deny the license if any principal
officer, board member, or person having a financial or voting
interest of 5% or greater in the licensee is delinquent in
filing any required tax returns or paying any amounts owed to
the State of Illinois.
    (h) The Department shall verify an applicant's compliance
with the requirements of this Article and rules before issuing
a dispensing organization license.
    (i) Should the applicant be awarded a license, the
information and plans provided in the application, including
any plans submitted for bonus points, shall become a condition
of the Conditional Adult Use Dispensing Organization Licenses,
except as otherwise provided by this Act or rule. Dispensing
organizations have a duty to disclose any material changes to
the application. The Department shall review all material
changes disclosed by the dispensing organization, and may
re-evaluate its prior decision regarding the awarding of a
license, including, but not limited to, suspending or revoking
a license. Failure to comply with the conditions or
requirements in the application may subject the dispensing
organization to discipline, up to and including suspension or
revocation of its authorization or license by the Department.
    (j) If an applicant has not begun operating as a dispensing
organization within one year of the issuance of the Conditional
Adult Use Dispensing Organization License, the Department may
revoke the Conditional Adult Use Dispensing Organization
License and award it to the next highest scoring applicant in
the BLS Region if a suitable applicant indicates a continued
interest in the license or begin a new selection process to
award a Conditional Adult Use Dispensing Organization License.
    (k) The Department shall deny an application if granting
that application would result in a single person or entity
having a direct or indirect financial interest in more than 10
Early Approval Adult Use Dispensing Organization Licenses,
Conditional Adult Use Dispensing Organization Licenses, or
Adult Use Dispensing Organization Licenses. Any entity that is
awarded a license that results in a single person or entity
having a direct or indirect financial interest in more than 10
licenses shall forfeit the most recently issued license and
suffer a penalty to be determined by the Department, unless the
entity declines the license at the time it is awarded.
 
    Section 15-35. Conditional Adult Use Dispensing
Organization License after January 1, 2021.
    (a) In addition to any of the licenses issued in Sections
15-15, Section 15-20, or Section 15-25 of this Act, by December
21, 2021, the Department shall issue up to 110 Conditional
Adult Use Dispensing Organization Licenses, pursuant to the
application process adopted under this Section. Prior to
issuing such licenses, the Department may adopt rules through
emergency rulemaking in accordance with subsection (gg) of
Section 5-45 of the Illinois Administrative Procedure Act. The
General Assembly finds that the adoption of rules to regulate
cannabis use is deemed an emergency and necessary for the
public interest, safety, and welfare. Such rules may:
        (1) Modify or change the BLS Regions as they apply to
    this Article or modify or raise the number of Adult
    Conditional Use Dispensing Organization Licenses assigned
    to each region based on the following factors:
            (A) Purchaser wait times;
            (B) Travel time to the nearest dispensary for
        potential purchasers;
            (C) Percentage of cannabis sales occurring in
        Illinois not in the regulated market using data from
        the Substance Abuse and Mental Health Services
        Administration, National Survey on Drug Use and
        Health, Illinois Behavioral Risk Factor Surveillance
        System, and tourism data from the Illinois Office of
        Tourism to ascertain total cannabis consumption in
        Illinois compared to the amount of sales in licensed
        dispensing organizations;
            (D) Whether there is an adequate supply of cannabis
        and cannabis-infused products to serve registered
        medical cannabis patients;
            (E) Population increases or shifts;
            (F) Density of dispensing organizations in a
        region;
            (G) The Department's capacity to appropriately
        regulate additional licenses;
            (H) The findings and recommendations from the
        disparity and availability study commissioned by the
        Illinois Cannabis Regulation Oversight Officer in
        subsection (e) of Section 5-45 to reduce or eliminate
        any identified barriers to entry in the cannabis
        industry; and
            (I) Any other criteria the Department deems
        relevant.
        (2) Modify or change the licensing application process
    to reduce or eliminate the barriers identified in the
    disparity and availability study commissioned by the
    Illinois Cannabis Regulation Oversight Officer and make
    modifications to remedy evidence of discrimination.
    (b) After January 1, 2022, the Department may by rule
modify or raise the number of Adult Use Dispensing Organization
Licenses assigned to each region, and modify or change the
licensing application process to reduce or eliminate barriers
based on the criteria in subsection (a). At no time shall the
Department issue more than 500 Adult Use Dispensary
Organization Licenses.
 
    Section 15-36. Adult Use Dispensing Organization License.
    (a) A person is only eligible to receive an Adult Use
Dispensing Organization if the person has been awarded a
Conditional Adult Use Dispensing Organization License pursuant
to this Act or has renewed its license pursuant to subsection
(k) of Section 15-15 or subsection (p) of Section 15-20.
    (b) The Department shall not issue an Adult Use Dispensing
Organization License until:
        (1) the Department has inspected the dispensary site
    and proposed operations and verified that they are in
    compliance with this Act and local zoning laws;
        (2) the Conditional Adult Use Dispensing Organization
    License holder has paid a registration fee of $60,000 or a
    prorated amount accounting for the difference of time
    between when the Adult Use Dispensing Organization License
    is issued and March 31 of the next even-numbered year; and
        (3) the Conditional Adult Use Dispensing Organization
    License holder has met all the requirements in the Act and
    rules.
    (c) No person or entity shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 10 dispensing organizations licensed under this
Article. Further, no person or entity that is:
        (1) employed by, is an agent of, or participates in the
    management of a dispensing organization or registered
    medical cannabis dispensing organization;
        (2) a principal officer of a dispensing organization or
    registered medical cannabis dispensing organization; or
        (3) an entity controlled by or affiliated with a
    principal officer of a dispensing organization or
    registered medical cannabis dispensing organization;
shall hold any legal, equitable, ownership, or beneficial
interest, directly or indirectly, in a dispensing organization
that would result in such person or entity owning or
participating in the management of more than 10 dispensing
organizations. For the purpose of this subsection,
participating in management may include, without limitation,
controlling decisions regarding staffing, pricing, purchasing,
marketing, store design, hiring, and website design.
    (d) The Department shall deny an application if granting
that application would result in a person or entity obtaining
direct or indirect financial interest in more than 10 Early
Approval Adult Use Dispensing Organization Licenses,
Conditional Adult Use Dispensing Organization Licenses, Adult
Use Dispensing Organization Licenses, or any combination
thereof. If a person or entity is awarded a Conditional Adult
Use Dispensing Organization License that would cause the person
or entity to be in violation of this subsection, he, she, or it
shall choose which license application it wants to abandon and
such licenses shall become available to the next qualified
applicant in the region in which the abandoned license was
awarded.
 
    Section 15-40. Dispensing organization agent
identification card; agent training.
    (a) The Department shall:
        (1) Verify the information contained in an application
    or renewal for a dispensing organization agent
    identification card submitted under this Article, and
    approve or deny an application or renewal, within 30 days
    of receiving a completed application or renewal
    application and all supporting documentation required by
    rule;
        (2) Issue a dispensing organization agent
    identification card to a qualifying agent within 15
    business days of approving the application or renewal;
        (3) Enter the registry identification number of the
    dispensing organization where the agent works;
        (4) Within one year from the effective date of this
    Act, allow for an electronic application process and
    provide a confirmation by electronic or other methods that
    an application has been submitted; and
        (5) Collect a $100 nonrefundable fee from the applicant
    to be deposited into the Cannabis Regulation Fund.
    (b) A dispensing agent must keep his or her identification
card visible at all times when on the property of the
dispensing organization.
    (c) The dispensing organization agent identification cards
shall contain the following:
        (1) The name of the cardholder;
        (2) The date of issuance and expiration date of the
    dispensing organization agent identification cards;
        (3) A random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the cardholder; and
        (4) A photograph of the cardholder.
    (d) The dispensing organization agent identification cards
shall be immediately returned to the dispensing organization
upon termination of employment.
    (e) The Department shall not issue an agent identification
card if the applicant is delinquent in filing any required tax
returns or paying any amounts owed to the State of Illinois.
    (f) Any card lost by a dispensing organization agent shall
be reported to the Department of State Police and the
Department immediately upon discovery of the loss.
    (g) An applicant shall be denied a dispensing organization
agent identification card if he or she fails to complete the
training provided for in this Section.
    (h) A dispensing organization agent shall only be required
to hold one card for the same employer regardless of what type
of dispensing organization license the employer holds.
    (i) Cannabis retail sales training requirements.
        (1) Within 90 days of September 1, 2019, or 90 days of
    employment, whichever is later, all owners, managers,
    employees, and agents involved in the handling or sale of
    cannabis or cannabis-infused product employed by an adult
    use dispensing organization or medical cannabis dispensing
    organization as defined in Section 10 of the Compassionate
    Use of Medical Cannabis Pilot Program Act shall attend and
    successfully complete a Responsible Vendor Program.
        (2) Each owner, manager, employee, and agent of an
    adult use dispensing organization or medical cannabis
    dispensing organization shall successfully complete the
    program annually.
        (3) Responsible Vendor Program Training modules shall
    include at least 2 hours of instruction time approved by
    the Department including:
            (i) Health and safety concerns of cannabis use,
        including the responsible use of cannabis, its
        physical effects, onset of physiological effects,
        recognizing signs of impairment, and appropriate
        responses in the event of overconsumption.
            (ii) Training on laws and regulations on driving
        while under the influence.
            (iii) Sales to minors prohibition. Training shall
        cover all relevant Illinois laws and rules.
            (iv) Quantity limitations on sales to purchasers.
        Training shall cover all relevant Illinois laws and
        rules.
            (v) Acceptable forms of identification. Training
        shall include:
                (I) How to check identification; and
                (II) Common mistakes made in verification;
            (vi) Safe storage of cannabis;
            (vii) Compliance with all inventory tracking
        system regulations;
            (viii) Waste handling, management, and disposal;
            (ix) Health and safety standards;
            (x) Maintenance of records;
            (xi) Security and surveillance requirements;
            (xii) Permitting inspections by State and local
        licensing and enforcement authorities;
            (xiii) Privacy issues;
            (xiv) Packaging and labeling requirement for sales
        to purchasers; and
            (xv) Other areas as determined by rule.
    (j)BLANK.
    (k) Upon the successful completion of the Responsible
Vendor Program, the provider shall deliver proof of completion
either through mail or electronic communication to the
dispensing organization, which shall retain a copy of the
certificate.
    (l) The license of a dispensing organization or medical
cannabis dispensing organization whose owners, managers,
employees, or agents fail to comply with this Section may be
suspended or revoked under Section 15-145 or may face other
disciplinary action.
    (m) The regulation of dispensing organization and medical
cannabis dispensing employer and employee training is an
exclusive function of the State, and regulation by a unit of
local government, including a home rule unit, is prohibited.
This subsection (m) is a denial and limitation of home rule
powers and functions under subsection (h) of Section 6 of
Article VII of the Illinois Constitution.
    (n) Persons seeking Department approval to offer the
training required by paragraph (3) of subsection (i) may apply
for such approval between August 1 and August 15 of each
odd-numbered year in a manner prescribed by the Department.
    (o) Persons seeking Department approval to offer the
training required by paragraph (3) of subsection (i) shall
submit a non-refundable application fee of $2,000 to be
deposited into the Cannabis Regulation Fund or a fee as may be
set by rule. Any changes made to the training module shall be
approved by the Department.
    (p) The Department shall not unreasonably deny approval of
a training module that meets all the requirements of paragraph
(3) of subsection (i). A denial of approval shall include a
detailed description of the reasons for the denial.
    (q) Any person approved to provide the training required by
paragraph (3) of subsection (i) shall submit an application for
re-approval between August 1 and August 15 of each odd-numbered
year and include a non-refundable application fee of $2,000 to
be deposited into the Cannabis Regulation Fund or a fee as may
be set by rule.
 
    Section 15-45. Renewal.
    (a) Adult Use Dispensing Organization Licenses shall
expire on March 31 of even-numbered years.
    (b) Agent identification cards shall expire one year from
the date they are issued.
    (c) Licensees and dispensing agents shall submit a renewal
application as provided by the Department and pay the required
renewal fee. The Department shall require an agent, employee,
contracting, and subcontracting diversity report and an
environmental impact report with its renewal application. No
license or agent identification card shall be renewed if it is
currently under revocation or suspension for violation of this
Article or any rules that may be adopted under this Article or
the licensee, principal officer, board member, person having a
financial or voting interest of 5% or greater in the licensee,
or agent is delinquent in filing any required tax returns or
paying any amounts owed to the State of Illinois.
    (d) Renewal fees are:
        (1) For a dispensing organization, $60,000, to be
    deposited into the Cannabis Regulation Fund.
        (2) For an agent identification card, $100, to be
    deposited into the Cannabis Regulation Fund.
    (e) If a dispensing organization fails to renew its license
before expiration, the dispensing organization shall cease
operations until the license is renewed.
    (f) If a dispensing organization agent fails to renew his
or her registration before its expiration, he or she shall
cease to perform duties authorized by this Article at a
dispensing organization until his or her registration is
renewed.
    (g) Any dispensing organization that continues to operate
or dispensing agent that continues to perform duties authorized
by this Article at a dispensing organization that fails to
renew its license is subject to penalty as provided in this
Article, or any rules that may be adopted pursuant to this
Article.
    (h) The Department shall not renew a license if the
applicant is delinquent in filing any required tax returns or
paying any amounts owed to the State of Illinois. The
Department shall not renew a dispensing agent identification
card if the applicant is delinquent in filing any required tax
returns or paying any amounts owed to the State of Illinois.
 
    Section 15-50. Disclosure of ownership and control.
    (a) Each dispensing organization applicant and licensee
shall file and maintain a Table of Organization, Ownership and
Control with the Department. The Table of Organization,
Ownership and Control shall contain the information required by
this Section in sufficient detail to identify all owners,
directors, and principal officers, and the title of each
principal officer or business entity that, through direct or
indirect means, manages, owns, or controls the applicant or
licensee.
    (b) The Table of Organization, Ownership and Control shall
identify the following information:
        (1) The management structure, ownership, and control
    of the applicant or license holder including the name of
    each principal officer or business entity, the office or
    position held, and the percentage ownership interest, if
    any. If the business entity has a parent company, the name
    of each owner, board member, and officer of the parent
    company and his or her percentage ownership interest in the
    parent company and the dispensing organization.
        (2) If the applicant or licensee is a business entity
    with publicly traded stock, the identification of
    ownership shall be provided as required in subsection (c).
    (c) If a business entity identified in subsection (b) is a
publicly traded company, the following information shall be
provided in the Table of Organization, Ownership and Control:
        (1) The name and percentage of ownership interest of
    each individual or business entity with ownership of more
    than 5% of the voting shares of the entity, to the extent
    such information is known or contained in 13D or 13G
    Securities and Exchange Commission filings.
        (2) To the extent known, the names and percentage of
    interest of ownership of persons who are relatives of one
    another and who together exercise control over or own more
    than 10% of the voting shares of the entity.
    (d) A dispensing organization with a parent company or
companies, or partially owned or controlled by another entity
must disclose to the Department the relationship and all
owners, board members, officers, or individuals with control or
management of those entities. A dispensing organization shall
not shield its ownership or control from the Department.
    (e) All principal officers must submit a complete online
application with the Department within 14 days of the
dispensing organization being licensed by the Department or
within 14 days of Department notice of approval as a new
principal officer.
    (f) A principal officer may not allow his or her
registration to expire.
    (g) A dispensing organization separating with a principal
officer must do so under this Act. The principal officer must
communicate the separation to the Department within 5 business
days.
    (h) A principal officer not in compliance with the
requirements of this Act shall be removed from his or her
position with the dispensing organization or shall otherwise
terminate his or her affiliation. Failure to do so may subject
the dispensing organization to discipline, suspension, or
revocation of its license by the Department.
    (i) It is the responsibility of the dispensing organization
and its principal officers to promptly notify the Department of
any change of the principal place of business address, hours of
operation, change in ownership or control, or a change of the
dispensing organization's primary or secondary contact
information. Any changes must be made to the Department in
writing.
 
    Section 15-55. Financial responsibility. Evidence of
financial responsibility is a requirement for the issuance,
maintenance, or reactivation of a license under this Article.
Evidence of financial responsibility shall be used to guarantee
that the dispensing organization timely and successfully
completes dispensary construction, operates in a manner that
provides an uninterrupted supply of cannabis, faithfully pays
registration renewal fees, keeps accurate books and records,
makes regularly required reports, complies with State tax
requirements, and conducts the dispensing organization in
conformity with this Act and rules. Evidence of financial
responsibility shall be provided by one of the following:
        (1) Establishing and maintaining an escrow or surety
    account in a financial institution in the amount of
    $50,000, with escrow terms, approved by the Department,
    that it shall be payable to the Department in the event of
    circumstances outlined in this Act and rules.
            (A) A financial institution may not return money in
        an escrow or surety account to the dispensing
        organization that established the account or a
        representative of the organization unless the
        organization or representative presents a statement
        issued by the Department indicating that the account
        may be released.
            (B) The escrow or surety account shall not be
        canceled on less than 30 days' notice in writing to the
        Department, unless otherwise approved by the
        Department. If an escrow or surety account is canceled
        and the registrant fails to secure a new account with
        the required amount on or before the effective date of
        cancellation, the registrant's registration may be
        revoked. The total and aggregate liability of the
        surety on the bond is limited to the amount specified
        in the escrow or surety account.
        (2) Providing a surety bond in the amount of $50,000,
    naming the dispensing organization as principal of the
    bond, with terms, approved by the Department, that the bond
    defaults to the Department in the event of circumstances
    outlined in this Act and rules. Bond terms shall include:
            (A) The business name and registration number on
        the bond must correspond exactly with the business name
        and registration number in the Department's records.
            (B) The bond must be written on a form approved by
        the Department.
            (C) A copy of the bond must be received by the
        Department within 90 days after the effective date.
            (D) The bond shall not be canceled by a surety on
        less than 30 days' notice in writing to the Department.
        If a bond is canceled and the registrant fails to file
        a new bond with the Department in the required amount
        on or before the effective date of cancellation, the
        registrant's registration may be revoked. The total
        and aggregate liability of the surety on the bond is
        limited to the amount specified in the bond.
 
    Section 15-60. Changes to a dispensing organization.
    (a) A license shall be issued to the specific dispensing
organization identified on the application and for the specific
location proposed. The license is valid only as designated on
the license and for the location for which it is issued.
    (b) A dispensing organization may only add principal
officers after being approved by the Department.
    (c) A dispensing organization shall provide written notice
of the removal of a principal officer within 5 business days
after removal. The notice shall include the written agreement
of the principal officer being removed, unless otherwise
approved by the Department, and allocation of ownership shares
after removal in an updated ownership chart.
    (d) A dispensing organization shall provide a written
request to the Department for the addition of principal
officers. A dispensing organization shall submit proposed
principal officer applications on forms approved by the
Department.
    (e) All proposed new principal officers shall be subject to
the requirements of this Act, this Article, and any rules that
may be adopted pursuant to this Act.
    (f) The Department may prohibit the addition of a principal
officer to a dispensing organization for failure to comply with
this Act, this Article, and any rules that may be adopted
pursuant to this Act.
    (g) A dispensing organization may not assign a license.
    (h) A dispensing organization may not transfer a license
without prior Department approval. Such approval may be
withheld if the person to whom the license is being transferred
does not commit to the same or a similar community engagement
plan provided as part of the dispensing organization's
application under paragraph (18) of subsection (d) of Section
15-25, and such transferee's license shall be conditional upon
that commitment.
    (i) With the addition or removal of principal officers, the
Department will review the ownership structure to determine
whether the change in ownership has had the effect of a
transfer of the license. The dispensing organization shall
supply all ownership documents requested by the Department.
    (j) A dispensing organization may apply to the Department
to approve a sale of the dispensing organization. A request to
sell the dispensing organization must be on application forms
provided by the Department. A request for an approval to sell a
dispensing organization must comply with the following:
        (1) New application materials shall comply with this
    Act and any rules that may be adopted pursuant to this Act;
        (2) Application materials shall include a change of
    ownership fee of $5,000 to be deposited into the Cannabis
    Regulation Fund;
        (3) The application materials shall provide proof that
    the transfer of ownership will not have the effect of
    granting any of the owners or principal officers direct or
    indirect ownership or control of more than 10 adult use
    dispensing organization licenses;
        (4) New principal officers shall each complete the
    proposed new principal officer application;
        (5) If the Department approves the application
    materials and proposed new principal officer applications,
    it will perform an inspection before approving the sale and
    issuing the dispensing organization license;
        (6) If a new license is approved, the Department will
    issue a new license number and certificate to the new
    dispensing organization.
    (k) The dispensing organization shall provide the
Department with the personal information for all new dispensing
organizations agents as required in this Article and all new
dispensing organization agents shall be subject to the
requirements of this Article. A dispensing organization agent
must obtain an agent identification card from the Department
before beginning work at a dispensary.
    (l) Before remodeling, expansion, reduction, or other
physical, noncosmetic alteration of a dispensary, the
dispensing organization must notify the Department and confirm
the alterations are in compliance with this Act and any rules
that may be adopted pursuant to this Act.
 
    Section 15-65. Administration.
    (a) A dispensing organization shall establish, maintain,
and comply with written policies and procedures as submitted in
the Business, Financial and Operating plan as required in this
Article or by rules established by the Department, and approved
by the Department, for the security, storage, inventory, and
distribution of cannabis. These policies and procedures shall
include methods for identifying, recording, and reporting
diversion, theft, or loss, and for correcting errors and
inaccuracies in inventories. At a minimum, dispensing
organizations shall ensure the written policies and procedures
provide for the following:
        (1) Mandatory and voluntary recalls of cannabis
    products. The policies shall be adequate to deal with
    recalls due to any action initiated at the request of the
    Department and any voluntary action by the dispensing
    organization to remove defective or potentially defective
    cannabis from the market or any action undertaken to
    promote public health and safety, including:
            (i) A mechanism reasonably calculated to contact
        purchasers who have, or likely have, obtained the
        product from the dispensary, including information on
        the policy for return of the recalled product;
            (ii) A mechanism to identify and contact the adult
        use cultivation center, craft grower, or infuser that
        manufactured the cannabis;
            (iii) Policies for communicating with the
        Department, the Department of Agriculture, and the
        Department of Public Health within 24 hours of
        discovering defective or potentially defective
        cannabis; and
            (iv) Policies for destruction of any recalled
        cannabis product;
        (2) Responses to local, State, or national
    emergencies, including natural disasters, that affect the
    security or operation of a dispensary;
        (3) Segregation and destruction of outdated, damaged,
    deteriorated, misbranded, or adulterated cannabis. This
    procedure shall provide for written documentation of the
    cannabis disposition;
        (4) Ensure the oldest stock of a cannabis product is
    distributed first. The procedure may permit deviation from
    this requirement, if such deviation is temporary and
    appropriate;
        (5) Training of dispensing organization agents in the
    provisions of this Act and rules, to effectively operate
    the point-of-sale system and the State's verification
    system, proper inventory handling and tracking, specific
    uses of cannabis or cannabis-infused products, instruction
    regarding regulatory inspection preparedness and law
    enforcement interaction, awareness of the legal
    requirements for maintaining status as an agent, and other
    topics as specified by the dispensing organization or the
    Department. The dispensing organization shall maintain
    evidence of all training provided to each agent in its
    files that is subject to inspection and audit by the
    Department. The dispensing organization shall ensure
    agents receive a minimum of 8 hours of training subject to
    the requirements in subsection (i) of Section 15-40
    annually, unless otherwise approved by the Department;
        (6) Maintenance of business records consistent with
    industry standards, including bylaws, consents, manual or
    computerized records of assets and liabilities, audits,
    monetary transactions, journals, ledgers, and supporting
    documents, including agreements, checks, invoices,
    receipts, and vouchers. Records shall be maintained in a
    manner consistent with this Act and shall be retained for 5
    years;
        (7) Inventory control, including:
            (i) Tracking purchases and denials of sale;
            (ii) Disposal of unusable or damaged cannabis as
        required by this Act and rules; and
        (8) Purchaser education and support, including:
            (i) Whether possession of cannabis is illegal
        under federal law;
            (ii) Current educational information issued by the
        Department of Public Health about the health risks
        associated with the use or abuse of cannabis;
            (iii) Information about possible side effects;
            (iv) Prohibition on smoking cannabis in public
        places; and
            (v) Offering any other appropriate purchaser
        education or support materials.
    (b) BLANK.
    (c) A dispensing organization shall maintain copies of the
policies and procedures on the dispensary premises and provide
copies to the Department upon request. The dispensing
organization shall review the dispensing organization policies
and procedures at least once every 12 months from the issue
date of the license and update as needed due to changes in
industry standards or as requested by the Department.
    (d) A dispensing organization shall ensure that each
principal officer and each dispensing organization agent has a
current agent identification card in the agent's immediate
possession when the agent is at the dispensary.
    (e) A dispensing organization shall provide prompt written
notice to the Department, including the date of the event, when
a dispensing organization agent no longer is employed by the
dispensing organization.
    (f) A dispensing organization shall promptly document and
report any loss or theft of cannabis from the dispensary to the
Department of State Police and the Department. It is the duty
of any dispensing organization agent who becomes aware of the
loss or theft to report it as provided in this Article.
    (g) A dispensing organization shall post the following
information in a conspicuous location in an area of the
dispensary accessible to consumers:
        (1) The dispensing organization's license;
        (2) The hours of operation.
    (h) Signage that shall be posted inside the premises.
        (1) All dispensing organizations must display a
    placard that states the following: "Cannabis consumption
    can impair cognition and driving, is for adult use only,
    may be habit forming, and should not be used by pregnant or
    breastfeeding women.".
        (2) Any dispensing organization that sells edible
    cannabis-infused products must display a placard that
    states the following:
            (A) "Edible cannabis-infused products were
        produced in a kitchen that may also process common food
        allergens."; and
            (B) "The effects of cannabis products can vary from
        person to person, and it can take as long as two hours
        to feel the effects of some cannabis-infused products.
        Carefully review the portion size information and
        warnings contained on the product packaging before
        consuming.".
        (3) All of the required signage in this subsection (h)
    shall be no smaller than 24 inches tall by 36 inches wide,
    with typed letters no smaller than 2 inches. The signage
    shall be clearly visible and readable by customers. The
    signage shall be placed in the area where cannabis and
    cannabis-infused products are sold and may be translated
    into additional languages as needed. The Department may
    require a dispensary to display the required signage in a
    different language, other than English, if the Secretary
    deems it necessary.
    (i) A dispensing organization shall prominently post
notices inside the dispensing organization that state
activities that are strictly prohibited and punishable by law,
including, but not limited to:
        (1) No minors permitted on the premises unless the
    minor is a minor qualifying patient under the Compassionate
    Use of Medical Cannabis Pilot Program Act;
        (2) Distribution to persons under the age of 21 is
    prohibited;
        (3) Transportation of cannabis or cannabis products
    across state lines is prohibited.
 
    Section 15-70. Operational requirements; prohibitions.
    (a) A dispensing organization shall operate in accordance
with the representations made in its application and license
materials. It shall be in compliance with this Act and rules.
    (b) A dispensing organization must include the legal name
of the dispensary on the packaging of any cannabis product it
sells.
    (c) All cannabis, cannabis-infused products, and cannabis
seeds must be obtained from an Illinois registered adult use
cultivation center, craft grower, infuser, or another
dispensary.
    (d) Dispensing organizations are prohibited from selling
any product containing alcohol except tinctures, which must be
limited to containers that are no larger than 100 milliliters.
    (e) A dispensing organization shall inspect and count
product received by the adult use cultivation center before
dispensing it.
    (f) A dispensing organization may only accept cannabis
deliveries into a restricted access area. Deliveries may not be
accepted through the public or limited access areas unless
otherwise approved by the Department.
    (g) A dispensing organization shall maintain compliance
with State and local building, fire, and zoning requirements or
regulations.
    (h) A dispensing organization shall submit a list to the
Department of the names of all service professionals that will
work at the dispensary. The list shall include a description of
the type of business or service provided. Changes to the
service professional list shall be promptly provided. No
service professional shall work in the dispensary until the
name is provided to the Department on the service professional
list.
    (i) A dispensing organization's license allows for a
dispensary to be operated only at a single location.
    (j) A dispensary may operate between 6 a.m. and 10 p.m.
local time.
    (k) A dispensing organization must keep all lighting
outside and inside the dispensary in good working order and
wattage sufficient for security cameras.
    (l) A dispensing organization shall ensure that any
building or equipment used by a dispensing organization for the
storage or sale of cannabis is maintained in a clean and
sanitary condition.
    (m) The dispensary shall be free from infestation by
insects, rodents, or pests.
    (n) A dispensing organization shall not:
        (1) Produce or manufacture cannabis;
        (2) Accept a cannabis product from an adult use
    cultivation center, craft grower, infuser, dispensing
    organization, or transporting organization unless it is
    pre-packaged and labeled in accordance with this Act and
    any rules that may be adopted pursuant to this Act;
        (3) Obtain cannabis or cannabis-infused products from
    outside the State of Illinois;
        (4) Sell cannabis or cannabis-infused products to a
    purchaser unless the dispensary organization is licensed
    under the Compassionate Use of Medical Cannabis Pilot
    Program, and the individual is registered under the
    Compassionate Use of Medical Cannabis Pilot Program or the
    purchaser has been verified to be over the age of 21;
        (5) Enter into an exclusive agreement with any adult
    use cultivation center, craft grower, or infuser.
    Dispensaries shall provide consumers an assortment of
    products from various cannabis business establishment
    licensees such that the inventory available for sale at any
    dispensary from any single cultivation center, craft
    grower, processor, or infuser entity shall not be more than
    40% of the total inventory available for sale. For the
    purpose of this subsection, a cultivation center, craft
    grower, processor, or infuser shall be considered part of
    the same entity if the licensees share at least one
    principal officer. The Department may request that a
    dispensary diversify its products as needed or otherwise
    discipline a dispensing organization for violating this
    requirement;
        (6) Refuse to conduct business with an adult use
    cultivation center, craft grower, transporting
    organization, or infuser that has the ability to properly
    deliver the product and is permitted by the Department of
    Agriculture, on the same terms as other adult use
    cultivation centers, craft growers, infusers, or
    transporters with whom it is dealing;
        (7) Operate drive-through windows;
        (8) Allow for the dispensing of cannabis or
    cannabis-infused products in vending machines;
        (9) Transport cannabis to residences or other
    locations where purchasers may be for delivery;
        (10) Enter into agreements to allow persons who are not
    dispensing organization agents to deliver cannabis or to
    transport cannabis to purchasers.
        (11) Operate a dispensary if its video surveillance
    equipment is inoperative;
        (12) Operate a dispensary if the point-of-sale
    equipment is inoperative;
        (13) Operate a dispensary if the State's cannabis
    electronic verification system is inoperative;
        (14) Have fewer than 2 people working at the dispensary
    at any time while the dispensary is open;
        (15) Be located within 1,500 feet of the property line
    of a pre-existing dispensing organization;
        (16) Sell clones or any other live plant material;
        (17) Sell cannabis, cannabis concentrate, or
    cannabis-infused products in combination or bundled with
    each other or any other items for one price, and each item
    of cannabis, concentrate, or cannabis-infused product must
    be separately identified by quantity and price on the
    receipt;
        (18) Violate any other requirements or prohibitions
    set by Department rules.
    (o) It is unlawful for any person having an Early Approval
Adult Use Cannabis Dispensing Organization License, a
Conditional Adult Use Cannabis Dispensing Organization, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Pilot Program or any
officer, associate, member, representative, or agent of such
licensee to accept, receive, or borrow money or anything else
of value or accept or receive credit (other than merchandising
credit in the ordinary course of business for a period not to
exceed 30 days) directly or indirectly from any adult use
cultivation center, craft grower, infuser, or transporting
organization. This includes anything received or borrowed or
from any stockholders, officers, agents, or persons connected
with an adult use cultivation center, craft grower, infuser, or
transporting organization. This also excludes any received or
borrowed in exchange for preferential placement by the
dispensing organization, including preferential placement on
the dispensing organization's shelves, display cases, or
website.
    (p) It is unlawful for any person having an Early Approval
Adult Use Cannabis Dispensing Organization License, a
Conditional Adult Use Cannabis Dispensing Organization, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Pilot Program to enter
into any contract with any person licensed to cultivate,
process, or transport cannabis whereby such dispensary
organization agrees not to sell any cannabis cultivated,
processed, transported, manufactured, or distributed by any
other cultivator, transporter, or infuser, and any provision in
any contract violative of this Section shall render the whole
of such contract void and no action shall be brought thereon in
any court.
 
    Section 15-75. Inventory control system.
    (a) A dispensing organization agent-in-charge shall have
primary oversight of the dispensing organization's cannabis
inventory verification system, and its point-of-sale system.
The inventory point-of-sale system shall be real-time,
web-based, and accessible by the Department at any time. The
point-of-sale system shall track, at a minimum the date of
sale, amount, price, and currency.
    (b) A dispensing organization shall establish an account
with the State's verification system that documents:
        (1) Each sales transaction at the time of sale and each
    day's beginning inventory, acquisitions, sales, disposal,
    and ending inventory.
        (2) Acquisition of cannabis and cannabis-infused
    products from a licensed adult use cultivation center,
    craft grower, infuser, or transporter, including:
            (i) A description of the products, including the
        quantity, strain, variety, and batch number of each
        product received;
            (ii) The name and registry identification number
        of the licensed adult use cultivation center, craft
        grower, or infuser providing the cannabis and
        cannabis-infused products;
            (iii) The name and registry identification number
        of the licensed adult use cultivation center, craft
        grower, infuser, or transportation agent delivering
        the cannabis;
            (iv) The name and registry identification number
        of the dispensing organization agent receiving the
        cannabis; and
            (v) The date of acquisition.
        (3) The disposal of cannabis, including:
            (i) A description of the products, including the
        quantity, strain, variety, batch number, and reason
        for the cannabis being disposed;
            (ii) The method of disposal; and
            (iii) The date and time of disposal.
    (c) Upon cannabis delivery, a dispensing organization
shall confirm the product's name, strain name, weight, and
identification number on the manifest matches the information
on the cannabis product label and package. The product name
listed and the weight listed in the State's verification system
shall match the product packaging.
    (d) The agent-in-charge shall conduct daily inventory
reconciliation documenting and balancing cannabis inventory by
confirming the State's verification system matches the
dispensing organization's point-of-sale system and the amount
of physical product at the dispensary.
        (1) A dispensing organization must receive Department
    approval before completing an inventory adjustment. It
    shall provide a detailed reason for the adjustment.
    Inventory adjustment documentation shall be kept at the
    dispensary for 2 years from the date performed.
        (2) If the dispensing organization identifies an
    imbalance in the amount of cannabis after the daily
    inventory reconciliation due to mistake, the dispensing
    organization shall determine how the imbalance occurred
    and immediately upon discovery take and document
    corrective action. If the dispensing organization cannot
    identify the reason for the mistake within 2 calendar days
    after first discovery, it shall inform the Department
    immediately in writing of the imbalance and the corrective
    action taken to date. The dispensing organization shall
    work diligently to determine the reason for the mistake.
        (3) If the dispensing organization identifies an
    imbalance in the amount of cannabis after the daily
    inventory reconciliation or through other means due to
    theft, criminal activity, or suspected criminal activity,
    the dispensing organization shall immediately determine
    how the reduction occurred and take and document corrective
    action. Within 24 hours after the first discovery of the
    reduction due to theft, criminal activity, or suspected
    criminal activity, the dispensing organization shall
    inform the Department and the Department of State Police in
    writing.
        (4) The dispensing organization shall file an annual
    compilation report with the Department, including a
    financial statement that shall include, but not be limited
    to, an income statement, balance sheet, profit and loss
    statement, statement of cash flow, wholesale cost and
    sales, and any other documentation requested by the
    Department in writing. The financial statement shall
    include any other information the Department deems
    necessary in order to effectively administer this Act and
    all rules, orders, and final decisions promulgated under
    this Act. Statements required by this Section shall be
    filed with the Department within 60 days after the end of
    the calendar year. The compilation report shall include a
    letter authored by a licensed certified public accountant
    that it has been reviewed and is accurate based on the
    information provided. The dispensing organization,
    financial statement, and accompanying documents are not
    required to be audited unless specifically requested by the
    Department.
    (e) A dispensing organization shall:
        (1) Maintain the documentation required in this
    Section in a secure locked location at the dispensing
    organization for 5 years from the date on the document;
        (2) Provide any documentation required to be
    maintained in this Section to the Department for review
    upon request; and
        (3) If maintaining a bank account, retain for a period
    of 5 years a record of each deposit or withdrawal from the
    account.
    (f) If a dispensing organization chooses to have a return
policy for cannabis and cannabis products, the dispensing
organization shall seek prior approval from the Department.
 
    Section 15-80. Storage requirements.
    (a) Authorized on-premises storage. A dispensing
organization must store inventory on its premises. All
inventory stored on the premises must be secured in a
restricted access area and tracked consistently with the
inventory tracking rules.
    (b) A dispensary shall be of suitable size and construction
to facilitate cleaning, maintenance, and proper operations.
    (c) A dispensary shall maintain adequate lighting,
ventilation, temperature, humidity control, and equipment.
    (d) Containers storing cannabis that have been tampered
with, damaged, or opened shall be labeled with the date opened
and quarantined from other cannabis products in the vault until
they are disposed.
    (e) Cannabis that was tampered with, expired, or damaged
shall not be stored at the premises for more than 7 calendar
days.
    (f) Cannabis samples shall be in a sealed container.
Samples shall be maintained in the restricted access area.
    (g) The dispensary storage areas shall be maintained in
accordance with the security requirements in this Act and
rules.
    (h) Cannabis must be stored at appropriate temperatures and
under appropriate conditions to help ensure that its packaging,
strength, quality, and purity are not adversely affected.
 
    Section 15-85. Dispensing cannabis.
    (a) Before a dispensing organization agent dispenses
cannabis to a purchaser, the agent shall:
        (1) Verify the age of the purchaser by checking a
    government-issued identification card by use of an
    electronic reader or electronic scanning device to scan a
    purchaser's government-issued identification, if
    applicable, to determine the purchaser's age and the
    validity of the identification;
        (2) Verify the validity of the government-issued
    identification card;
        (3) Offer any appropriate purchaser education or
    support materials;
        (4) Enter the following information into the State's
    cannabis electronic verification system:
            (i) The dispensing organization agent's
        identification number;
            (ii) The dispensing organization's identification
        number;
            (iii) The amount, type (including strain, if
        applicable) of cannabis or cannabis-infused product
        dispensed;
            (iv) The date and time the cannabis was dispensed.
    (b) A dispensing organization shall refuse to sell cannabis
or cannabis-infused products to any person unless the person
produces a valid identification showing that the person is 21
years of age or older. A medical cannabis dispensing
organization may sell cannabis or cannabis-infused products to
a person who is under 21 years of age if the sale complies with
the provisions of the Compassionate Use of Medical Cannabis
Pilot Program Act and rules.
    (c) For the purposes of this Section, valid identification
must:
        (1) Be valid and unexpired;
        (2) Contain a photograph and the date of birth of the
    person.
 
    Section 15-90. Destruction and disposal of cannabis.
    (a) Cannabis and cannabis-infused products must be
destroyed by rendering them unusable using methods approved by
the Department that comply with this Act and rules.
    (b) Cannabis waste rendered unusable must be promptly
disposed according to this Act and rules. Disposal of the
cannabis waste rendered unusable may be delivered to a
permitted solid waste facility for final disposition.
Acceptable permitted solid waste facilities include, but are
not limited to:
        (1) Compostable mixed waste: Compost, anaerobic
    digester, or other facility with approval of the
    jurisdictional health department.
        (2) Noncompostable mixed waste: Landfill, incinerator,
    or other facility with approval of the jurisdictional
    health department.
    (c) All waste and unusable product shall be weighed,
recorded, and entered into the inventory system before
rendering it unusable. All waste and unusable cannabis
concentrates and cannabis-infused products shall be recorded
and entered into the inventory system before rendering it
unusable. Verification of this event shall be performed by an
agent-in-charge and conducted in an area with video
surveillance.
    (d) Electronic documentation of destruction and disposal
shall be maintained for a period of at least 5 years.
 
    Section 15-95. Agent-in-charge.
    (a) Every dispensing organization shall designate, at a
minimum, one agent-in-charge for each licensed dispensary. The
designated agent-in-charge must hold a dispensing organization
agent identification card. Maintaining an agent-in-charge is a
continuing requirement for the license, except as provided in
subsection (f).
    (b) The agent-in-charge shall be a principal officer or a
full-time agent of the dispensing organization and shall manage
the dispensary. Managing the dispensary includes, but is not
limited to, responsibility for opening and closing the
dispensary, delivery acceptance, oversight of sales and
dispensing organization agents, recordkeeping, inventory,
dispensing organization agent training, and compliance with
this Act and rules. Participation in affairs also includes the
responsibility for maintaining all files subject to audit or
inspection by the Department at the dispensary.
    (c) The agent-in-charge is responsible for promptly
notifying the Department of any change of information required
to be reported to the Department.
    (d) In determining whether an agent-in-charge manages the
dispensary, the Department may consider the responsibilities
identified in this Section, the number of dispensing
organization agents under the supervision of the
agent-in-charge, and the employment relationship between the
agent-in-charge and the dispensing organization, including the
existence of a contract for employment and any other relevant
fact or circumstance.
    (e) The agent-in-charge is responsible for notifying the
Department of a change in the employment status of all
dispensing organization agents within 5 business days after the
change, including notice to the Department if the termination
of an agent was for diversion of product or theft of currency.
    (f) In the event of the separation of an agent-in-charge
due to death, incapacity, termination, or any other reason and
if the dispensary does not have an active agent-in-charge, the
dispensing organization shall immediately contact the
Department and request a temporary certificate of authority
allowing the continuing operation. The request shall include
the name of an interim agent-in-charge until a replacement is
identified, or shall include the name of the replacement. The
Department shall issue the temporary certificate of authority
promptly after it approves the request. If a dispensing
organization fails to promptly request a temporary certificate
of authority after the separation of the agent-in-charge, its
registration shall cease until the Department approves the
temporary certificate of authority or registers a new
agent-in-charge. No temporary certificate of authority shall
be valid for more than 90 days. The succeeding agent-in-charge
shall register with the Department in compliance with this
Article. Once the permanent succeeding agent-in-charge is
registered with the Department, the temporary certificate of
authority is void. No temporary certificate of authority shall
be issued for the separation of an agent-in-charge due to
disciplinary action by the Department related to his or her
conduct on behalf of the dispensing organization.
    (g) The dispensing organization agent-in-charge
registration shall expire one year from the date it is issued.
The agent-in-charge's registration shall be renewed annually.
The Department shall review the dispensing organization's
compliance history when determining whether to grant the
request to renew.
    (h) Upon termination of an agent-in-charge's employment,
the dispensing organization shall immediately reclaim the
dispensing agent identification card. The dispensing
organization shall promptly return the identification card to
the Department.
    (i) The Department may deny an application or renewal or
discipline or revoke an agent-in-charge identification card
for any of the following reasons:
        (1) Submission of misleading, incorrect, false, or
    fraudulent information in the application or renewal
    application;
        (2) Violation of the requirements of this Act or rules;
        (3) Fraudulent use of the agent-in-charge
    identification card;
        (4) Selling, distributing, transferring in any manner,
    or giving cannabis to any unauthorized person;
        (5) Theft of cannabis, currency, or any other items
    from a dispensary.
        (6) Tampering with, falsifying, altering, modifying,
    or duplicating an agent-in-charge identification card;
        (7) Tampering with, falsifying, altering, or modifying
    the surveillance video footage, point-of-sale system, or
    the State's verification system;
        (8) Failure to notify the Department immediately upon
    discovery that the agent-in-charge identification card has
    been lost, stolen, or destroyed;
        (9) Failure to notify the Department within 5 business
    days after a change in the information provided in the
    application for an agent-in-charge identification card;
        (10) Conviction of a felony offense in accordance with
    Sections 2105-131, 2105-135, and 2105-205 of the
    Department of Professional Regulation Law of the Civil
    Administrative Code of Illinois or any incident listed in
    this Act or rules following the issuance of an
    agent-in-charge identification card;
        (11) Dispensing to purchasers in amounts above the
    limits provided in this Act; or
        (12) Delinquency in filing any required tax returns or
    paying any amounts owed to the State of Illinois
 
    Section 15-100. Security.
    (a) A dispensing organization shall implement security
measures to deter and prevent entry into and theft of cannabis
or currency.
    (b) A dispensing organization shall submit any changes to
the floor plan or security plan to the Department for
pre-approval. All cannabis shall be maintained and stored in a
restricted access area during construction.
    (c) The dispensing organization shall implement security
measures to protect the premises, purchasers, and dispensing
organization agents including, but not limited to the
following:
        (1) Establish a locked door or barrier between the
    facility's entrance and the limited access area;
        (2) Prevent individuals from remaining on the premises
    if they are not engaging in activity permitted by this Act
    or rules;
        (3) Develop a policy that addresses the maximum
    capacity and purchaser flow in the waiting rooms and
    limited access areas;
        (4) Dispose of cannabis in accordance with this Act and
    rules;
        (5) During hours of operation, store and dispense all
    cannabis from the restricted access area. During
    operational hours, cannabis shall be stored in an enclosed
    locked room or cabinet and accessible only to specifically
    authorized dispensing organization agents;
        (6) When the dispensary is closed, store all cannabis
    and currency in a reinforced vault room in the restricted
    access area and in a manner as to prevent diversion, theft,
    or loss;
        (7) Keep the reinforced vault room and any other
    equipment or cannabis storage areas securely locked and
    protected from unauthorized entry;
        (8) Keep an electronic daily log of dispensing
    organization agents with access to the reinforced vault
    room and knowledge of the access code or combination;
        (9) Keep all locks and security equipment in good
    working order;
        (10) Maintain an operational security and alarm system
    at all times;
        (11) Prohibit keys, if applicable, from being left in
    the locks, or stored or placed in a location accessible to
    persons other than specifically authorized personnel;
        (12) Prohibit accessibility of security measures,
    including combination numbers, passwords, or electronic or
    biometric security systems to persons other than
    specifically authorized dispensing organization agents;
        (13) Ensure that the dispensary interior and exterior
    premises are sufficiently lit to facilitate surveillance;
        (14) Ensure that trees, bushes, and other foliage
    outside of the dispensary premises do not allow for a
    person or persons to conceal themselves from sight;
        (15) Develop emergency policies and procedures for
    securing all product and currency following any instance of
    diversion, theft, or loss of cannabis, and conduct an
    assessment to determine whether additional safeguards are
    necessary; and
        (16) Develop sufficient additional safeguards in
    response to any special security concerns, or as required
    by the Department.
    (d) The Department may request or approve alternative
security provisions that it determines are an adequate
substitute for a security requirement specified in this
Article. Any additional protections may be considered by the
Department in evaluating overall security measures.
    (e) A dispensary organization may share premises with a
craft grower or an infuser organization, or both, provided each
licensee stores currency and cannabis or cannabis-infused
products in a separate secured vault to which the other
licensee does not have access or all licensees sharing a vault
share more than 50% of the same ownership.
    (f) A dispensing organization shall provide additional
security as needed and in a manner appropriate for the
community where it operates.
    (g) Restricted access areas.
        (1) All restricted access areas must be identified by
    the posting of a sign that is a minimum of 12 inches by 12
    inches and that states "Do Not Enter - Restricted Access
    Area - Authorized Personnel Only" in lettering no smaller
    than one inch in height.
        (2) All restricted access areas shall be clearly
    described in the floor plan of the premises, in the form
    and manner determined by the Department, reflecting walls,
    partitions, counters, and all areas of entry and exit. The
    floor plan shall show all storage, disposal, and retail
    sales areas.
        (3) All restricted access areas must be secure, with
    locking devices that prevent access from the limited access
    areas.
    (h) Security and alarm.
        (1) A dispensing organization shall have an adequate
    security plan and security system to prevent and detect
    diversion, theft, or loss of cannabis, currency, or
    unauthorized intrusion using commercial grade equipment
    installed by an Illinois licensed private alarm contractor
    or private alarm contractor agency that shall, at a
    minimum, include:
            (i) A perimeter alarm on all entry points and glass
        break protection on perimeter windows;
            (ii) Security shatterproof tinted film on exterior
        windows;
            (iii) A failure notification system that provides
        an audible, text, or visual notification of any failure
        in the surveillance system, including, but not limited
        to, panic buttons, alarms, and video monitoring
        system. The failure notification system shall provide
        an alert to designated dispensing organization agents
        within 5 minutes after the failure, either by telephone
        or text message;
            (iv) A duress alarm, panic button, and alarm, or
        holdup alarm and after-hours intrusion detection alarm
        that by design and purpose will directly or indirectly
        notify, by the most efficient means, the Public Safety
        Answering Point for the law enforcement agency having
        primary jurisdiction;
            (v) Security equipment to deter and prevent
        unauthorized entrance into the dispensary, including
        electronic door locks on the limited and restricted
        access areas that include devices or a series of
        devices to detect unauthorized intrusion that may
        include a signal system interconnected with a radio
        frequency method, cellular, private radio signals or
        other mechanical or electronic device.
        (2) All security system equipment and recordings shall
    be maintained in good working order, in a secure location
    so as to prevent theft, loss, destruction, or alterations.
        (3) Access to surveillance monitoring recording
    equipment shall be limited to persons who are essential to
    surveillance operations, law enforcement authorities
    acting within their jurisdiction, security system service
    personnel, and the Department. A current list of authorized
    dispensing organization agents and service personnel that
    have access to the surveillance equipment must be available
    to the Department upon request.
        (4) All security equipment shall be inspected and
    tested at regular intervals, not to exceed one month from
    the previous inspection, and tested to ensure the systems
    remain functional.
        (5) The security system shall provide protection
    against theft and diversion that is facilitated or hidden
    by tampering with computers or electronic records.
        (6) The dispensary shall ensure all access doors are
    not solely controlled by an electronic access panel to
    ensure that locks are not released during a power outage.
    (i) To monitor the dispensary, the dispensing organization
shall incorporate continuous electronic video monitoring
including the following:
        (1) All monitors must be 19 inches or greater;
        (2) Unobstructed video surveillance of all enclosed
    dispensary areas, unless prohibited by law, including all
    points of entry and exit that shall be appropriate for the
    normal lighting conditions of the area under surveillance.
    The cameras shall be directed so all areas are captured,
    including, but not limited to, safes, vaults, sales areas,
    and areas where cannabis is stored, handled, dispensed, or
    destroyed. Cameras shall be angled to allow for facial
    recognition, the capture of clear and certain
    identification of any person entering or exiting the
    dispensary area and in lighting sufficient during all times
    of night or day;
        (3) Unobstructed video surveillance of outside areas,
    the storefront, and the parking lot, that shall be
    appropriate for the normal lighting conditions of the area
    under surveillance. Cameras shall be angled so as to allow
    for the capture of facial recognition, clear and certain
    identification of any person entering or exiting the
    dispensary and the immediate surrounding area, and license
    plates of vehicles in the parking lot;
        (4) 24-hour recordings from all video cameras
    available for immediate viewing by the Department upon
    request. Recordings shall not be destroyed or altered and
    shall be retained for at least 90 days. Recordings shall be
    retained as long as necessary if the dispensing
    organization is aware of the loss or theft of cannabis or a
    pending criminal, civil, or administrative investigation
    or legal proceeding for which the recording may contain
    relevant information;
        (5) The ability to immediately produce a clear, color
    still photo from the surveillance video, either live or
    recorded;
        (6) A date and time stamp embedded on all video
    surveillance recordings. The date and time shall be
    synchronized and set correctly and shall not significantly
    obscure the picture;
        (7) The ability to remain operational during a power
    outage and ensure all access doors are not solely
    controlled by an electronic access panel to ensure that
    locks are not released during a power outage;
        (8) All video surveillance equipment shall allow for
    the exporting of still images in an industry standard image
    format, including .jpg, .bmp, and .gif. Exported video
    shall have the ability to be archived in a proprietary
    format that ensures authentication of the video and
    guarantees that no alteration of the recorded image has
    taken place. Exported video shall also have the ability to
    be saved in an industry standard file format that can be
    played on a standard computer operating system. All
    recordings shall be erased or destroyed before disposal;
        (9) The video surveillance system shall be operational
    during a power outage with a 4-hour minimum battery backup;
        (10) A video camera or cameras recording at each
    point-of-sale location allowing for the identification of
    the dispensing organization agent distributing the
    cannabis and any purchaser. The camera or cameras shall
    capture the sale, the individuals and the computer monitors
    used for the sale;
        (11) A failure notification system that provides an
    audible and visual notification of any failure in the
    electronic video monitoring system; and
        (12) All electronic video surveillance monitoring must
    record at least the equivalent of 8 frames per second and
    be available as recordings to the Department and the
    Department of State Police 24 hours a day via a secure
    web-based portal with reverse functionality.
    (j) The requirements contained in this Act are minimum
requirements for operating a dispensing organization. The
Department may establish additional requirements by rule.
 
    Section 15-110. Recordkeeping.
    (a) Dispensing organization records must be maintained
electronically for 3 years and be available for inspection by
the Department upon request. Required written records include,
but are not limited to, the following:
        (1) Operating procedures;
        (2) Inventory records, policies, and procedures;
        (3) Security records;
        (4) Audit records;
        (5) Staff training plans and completion documentation;
        (6) Staffing plan; and
        (7) Business records, including but not limited to:
            (i) Assets and liabilities;
            (ii) Monetary transactions;
            (iii) Written or electronic accounts, including
        bank statements, journals, ledgers, and supporting
        documents, agreements, checks, invoices, receipts, and
        vouchers; and
            (iv) Any other financial accounts reasonably
        related to the dispensary operations.
    (b) Storage and transfer of records. If a dispensary closes
due to insolvency, revocation, bankruptcy, or for any other
reason, all records must be preserved at the expense of the
dispensing organization for at least 3 years in a form and
location in Illinois acceptable to the Department. The
dispensing organization shall keep the records longer if
requested by the Department. The dispensing organization shall
notify the Department of the location where the dispensary
records are stored or transferred.
 
    Section 15-120. Closure of a dispensary.
    (a) If a dispensing organization decides not to renew its
license or decides to close its business, it shall promptly
notify the Department not less than 3 months before the
effective date of the closing date or as otherwise authorized
by the Department.
    (b) The dispensing organization shall work with the
Department to develop a closure plan that addresses, at a
minimum, the transfer of business records, transfer of cannabis
products, and anything else the Department finds necessary.
 
    Section 15-125. Fees. After January 1, 2022, the Department
may by rule modify any fee established under this Article.
 
    Section 15-135. Investigations.
    (a) Dispensing organizations are subject to random and
unannounced dispensary inspections and cannabis testing by the
Department, the Department of State Police, and local law
enforcement.
    (b) The Department and its authorized representatives may
enter any place, including a vehicle, in which cannabis is
held, stored, dispensed, sold, produced, delivered,
transported, manufactured, or disposed of and inspect, in a
reasonable manner, the place and all pertinent equipment,
containers and labeling, and all things including records,
files, financial data, sales data, shipping data, pricing data,
personnel data, research, papers, processes, controls, and
facility, and inventory any stock of cannabis and obtain
samples of any cannabis or cannabis-infused product, any labels
or containers for cannabis, or paraphernalia.
    (c) The Department may conduct an investigation of an
applicant, application, dispensing organization, principal
officer, dispensary agent, third party vendor, or any other
party associated with a dispensing organization for an alleged
violation of this Act or rules or to determine qualifications
to be granted a registration by the Department.
    (d) The Department may require an applicant or holder of
any license issued pursuant to this Article to produce
documents, records, or any other material pertinent to the
investigation of an application or alleged violations of this
Act or rules. Failure to provide the required material may be
grounds for denial or discipline.
    (e) Every person charged with preparation, obtaining, or
keeping records, logs, reports, or other documents in
connection with this Act and rules and every person in charge,
or having custody, of those documents shall, upon request by
the Department, make the documents immediately available for
inspection and copying by the Department, the Department's
authorized representative, or others authorized by law to
review the documents.
 
    Section 15-140. Citations. The Department may issue
nondisciplinary citations for minor violations. Any such
citation issued by the Department may be accompanied by a fee.
The fee shall not exceed $20,000 per violation. The citation
shall be issued to the licensee and shall contain the
licensee's name and address, the licensee's license number, a
brief factual statement, the Sections of the law allegedly
violated, and the fee, if any, imposed. The citation must
clearly state that the licensee may choose, in lieu of
accepting the citation, to request a hearing. If the licensee
does not dispute the matter in the citation with the Department
within 30 days after the citation is served, then the citation
shall become final and not subject to appeal. The penalty shall
be a fee or other conditions as established by rule.
 
    Section 15-145. Grounds for discipline.
    (a) The Department may deny issuance, refuse to renew or
restore, or may reprimand, place on probation, suspend, revoke,
or take other disciplinary or nondisciplinary action against
any license or agent identification card or may impose a fine
for any of the following:
        (1) Material misstatement in furnishing information to
    the Department;
        (2) Violations of this Act or rules;
        (3) Obtaining an authorization or license by fraud or
    misrepresentation;
        (4) A pattern of conduct that demonstrates
    incompetence or that the applicant has engaged in conduct
    or actions that would constitute grounds for discipline
    under the Act;
        (5) Aiding or assisting another person in violating any
    provision of this Act or rules;
        (6) Failing to respond to a written request for
    information by the Department within 30 days;
        (7) Engaging in unprofessional, dishonorable, or
    unethical conduct of a character likely to deceive,
    defraud, or harm the public;
        (8) Adverse action by another United States
    jurisdiction or foreign nation;
        (9) A finding by the Department that the licensee,
    after having his or her license placed on suspended or
    probationary status, has violated the terms of the
    suspension or probation;
        (10) Conviction, entry of a plea of guilty, nolo
    contendere, or the equivalent in a State or federal court
    of a principal officer or agent-in-charge of a felony
    offense in accordance with Sections 2105-131, 2105-135,
    and 2105-205 of the Department of Professional Regulation
    Law of the Civil Administrative Code of Illinois;
        (11) Excessive use or addiction to alcohol, narcotics,
    stimulants, or any other chemical agent or drug;
        (12) A finding by the Department of a discrepancy in a
    Department audit of cannabis;
        (13) A finding by the Department of a discrepancy in a
    Department audit of capital or funds;
        (14) A finding by the Department of acceptance of
    cannabis from a source other than an Adult Use Cultivation
    Center, craft grower, infuser, or transporting
    organization licensed by the Department of Agriculture, or
    a dispensing organization licensed by the Department;
        (15) An inability to operate using reasonable
    judgment, skill, or safety due to physical or mental
    illness or other impairment or disability, including,
    without limitation, deterioration through the aging
    process or loss of motor skills or mental incompetence;
        (16) Failing to report to the Department within the
    time frames established, or if not identified, 14 days, of
    any adverse action taken against the dispensing
    organization or an agent by a licensing jurisdiction in any
    state or any territory of the United States or any foreign
    jurisdiction, any governmental agency, any law enforcement
    agency or any court defined in this Section;
        (17) Any violation of the dispensing organization's
    policies and procedures submitted to the Department
    annually as a condition for licensure;
        (18) Failure to inform the Department of any change of
    address within 10 business days;
        (19) Disclosing customer names, personal information,
    or protected health information in violation of any State
    or federal law;
        (20) Operating a dispensary before obtaining a license
    from the Department;
        (21) Performing duties authorized by this Act prior to
    receiving a license to perform such duties;
        (22) Dispensing cannabis when prohibited by this Act or
    rules;
        (23) Any fact or condition that, if it had existed at
    the time of the original application for the license, would
    have warranted the denial of the license;
        (24) Permitting a person without a valid agent
    identification card to perform licensed activities under
    this Act;
        (25) Failure to assign an agent-in-charge as required
    by this Article;
        (26) Failure to provide the training required by
    paragraph (3) of subsection (i) of Section 15-40 within the
    provided timeframe
        (27) Personnel insufficient in number or unqualified
    in training or experience to properly operate the
    dispensary business;
        (28) Any pattern of activity that causes a harmful
    impact on the community; and
        (29) Failing to prevent diversion, theft, or loss of
    cannabis.
    (b) All fines and fees imposed under this Section shall be
paid within 60 days after the effective date of the order
imposing the fine or as otherwise specified in the order.
    (c) A circuit court order establishing that an
agent-in-charge or principal officer holding an agent
identification card is subject to involuntary admission as that
term is defined in Section 1-119 or 1-119.1 of the Mental
Health and Developmental Disabilities Code shall operate as a
suspension of that card.
 
    Section 15-150. Temporary suspension.
    (a) The Secretary of Financial and Professional Regulation
may temporarily suspend a dispensing organization license or an
agent registration without a hearing if the Secretary finds
that public safety or welfare requires emergency action. The
Secretary shall cause the temporary suspension by issuing a
suspension notice in connection with the institution of
proceedings for a hearing.
    (b) If the Secretary temporarily suspends a license or
agent registration without a hearing, the licensee or agent is
entitled to a hearing within 45 days after the suspension
notice has been issued. The hearing shall be limited to the
issues cited in the suspension notice, unless all parties agree
otherwise.
    (c) If the Department does not hold a hearing with 45 days
after the date the suspension notice was issued, then the
suspended license or registration shall be automatically
reinstated and the suspension vacated.
    (d) The suspended licensee or agent may seek a continuance
of the hearing date, during which time the suspension remains
in effect and the license or registration shall not be
automatically reinstated.
    (e) Subsequently discovered causes of action by the
Department after the issuance of the suspension notice may be
filed as a separate notice of violation. The Department is not
precluded from filing a separate action against the suspended
licensee or agent.
 
    Section 15-155. Consent to administrative supervision
order. In appropriate cases, the Department may resolve a
complaint against a licensee or agent through the issuance of a
consent order for administrative supervision. A license or
agent subject to a consent order shall be considered by the
Department to hold a license or registration in good standing.
 
    Section 15-160. Notice; hearing.
    (a) The Department shall, before disciplining an applicant
or licensee, at least 30 days before the date set for the
hearing: (i) notify the accused in writing of the charges made
and the time and place for the hearing on the charges; (ii)
direct him or her to file a written answer to the charges under
oath within 20 days after service; and (iii) inform the
applicant or licensee that failure to answer will result in a
default being entered against the applicant or licensee.
    (b) At the time and place fixed in the notice, the hearing
officer appointed by the Secretary shall proceed to hear the
charges, and the parties or their counsel shall be accorded
ample opportunity to present any pertinent statements,
testimony, evidence, and arguments. The hearing officer may
continue the hearing from time to time. In case the person,
after receiving the notice, fails to file an answer, his or her
license may, in the discretion of the Secretary, having first
received the recommendation of the hearing officer, be
suspended, revoked, or placed on probationary status, or be
subject to whatever disciplinary action the Secretary
considers proper, including a fine, without hearing, if that
act or acts charged constitute sufficient grounds for that
action under this Act.
    (c) The written notice and any notice in the subsequent
proceeding may be served by regular mail or email to the
licensee's or applicant's address of record.
 
    Section 15-165. Subpoenas; oaths. The Department shall
have the power to subpoena and bring before it any person and
to take testimony either orally or by deposition, or both, with
the same fees and mileage and in the same manner as prescribed
by law in judicial proceedings in civil cases in courts in this
State. The Secretary or the hearing officer shall each have the
power to administer oaths to witnesses at any hearings that the
Department is authorized to conduct.
 
    Section 15-170. Hearing; motion for rehearing.
    (a) The hearing officer shall hear evidence in support of
the formal charges and evidence produced by the licensee. At
the conclusion of the hearing, the hearing officer shall
present to the Secretary a written report of his or her
findings of fact, conclusions of law, and recommendations.
    (b) At the conclusion of the hearing, a copy of the hearing
officer's report shall be served upon the applicant or licensee
by the Department, either personally or as provided in this Act
for the service of a notice of hearing. Within 20 calendar days
after service, the applicant or licensee may present to the
Department a motion in writing for rehearing, which shall
specify the particular grounds for rehearing. The Department
may respond to the motion for rehearing within 20 calendar days
after its service on the Department. If no motion for rehearing
is filed, then, upon the expiration of the time specified for
filing such motion or upon denial of a motion for rehearing,
the Secretary may enter an order in accordance with the
recommendation of the hearing officer. If the applicant or
licensee orders from the reporting service and pays for a
transcript of the record within the time for filing a motion
for rehearing, the 20-day period within which a motion may be
filed shall commence upon the delivery of the transcript to the
applicant or licensee.
    (c) If the Secretary disagrees in any regard with the
report of the hearing officer, the Secretary may issue an order
contrary to the report.
    (d) Whenever the Secretary is not satisfied that
substantial justice has been done, the Secretary may order a
rehearing by the same or another hearing officer.
    (e) At any point in any investigation or disciplinary
proceeding under in this Article, both parties may agree to a
negotiated consent order. The consent order shall be final upon
signature of the Secretary.
 
    Section 15-175. Review under the Administrative Review
Law.
    (a) All final administrative decisions of the Department
hereunder shall be subject to judicial review under the
provisions of the Administrative Review Law, and all amendment
and modifications thereof. The term "administrative decision"
is defined as in Section 3-101 of the Code of Civil Procedure.
    (b) Proceedings for judicial review shall be commenced in
the circuit court of the county in which the party applying for
review resides, but if the party is not a resident of Illinois,
the venue shall be in Sangamon County.
    (c) The Department shall not be required to certify any
record to the court, file any answer in court, or otherwise
appear in any court in a judicial review proceeding, unless and
until the Department has received from the plaintiff payment of
the costs of furnishing and certifying the record, which costs
shall be determined by the Department. Failure on the part of
the plaintiff to file a receipt in court shall be grounds for
dismissal of the action.
 
ARTICLE 20.
ADULT USE CULTIVATION CENTERS

 
    Section 20-1. Definition. In this Article, "Department"
means the Department of Agriculture.
 
    Section 20-5. Issuance of licenses. On or after July 1,
2021, the Department of Agriculture by rule may:
        (1) Modify or change the number of cultivation center
    licenses available, which shall at no time exceed 30
    cultivation center licenses. In determining whether to
    exercise the authority granted by this subsection, the
    Department of Agriculture must consider the following
    factors:
            (A) The percentage of cannabis sales occurring in
        Illinois not in the regulated market using data from
        the Substance Abuse and Mental Health Services
        Administration, National Survey on Drug Use and
        Health, Illinois Behavioral Risk Factor Surveillance
        System, and tourism data from the Illinois Office of
        Tourism to ascertain total cannabis consumption in
        Illinois compared to the amount of sales in licensed
        dispensing organizations;
            (B) Whether there is an adequate supply of cannabis
        and cannabis-infused products to serve registered
        medical cannabis patients;
            (C) Whether there is an adequate supply of cannabis
        and cannabis-infused products to serve purchasers;
            (D) Whether there is an oversupply of cannabis in
        Illinois leading to trafficking of cannabis to any
        other state;
            (E) Population increases or shifts;
            (F) Changes to federal law;
            (G) Perceived security risks of increasing the
        number or location of cultivation centers;
            (H) The past security records of cultivation
        centers;
            (I) The Department of Agriculture's capacity to
        appropriately regulate additional licensees;
            (J) The findings and recommendations from the
        disparity and availability study commissioned by the
        Illinois Cannabis Regulation Oversight Officer
        referenced in subsection (e) of Section 5-45 to reduce
        or eliminate any identified barriers to entry in the
        cannabis industry; and
            (K) Any other criteria the Department of
        Agriculture deems relevant.
        (2) Modify or change the licensing application process
    to reduce or eliminate the barriers identified in the
    disparity and availability study commission by the
    Illinois Cannabis Regulation Oversight Officer and shall
    make modifications to remedy evidence of discrimination.
 
    Section 20-10. Early Approval of Adult Use Cultivation
Center License.
    (a) Any medical cannabis cultivation center registered and
in good standing under the Compassionate Use of Medical
Cannabis Pilot Program Act as of the effective date of this Act
may, within 60 days of the effective date of this Act but no
later than 180 days from the effective date of this Act, apply
to the Department of Agriculture for an Early Approval Adult
Use Cultivation Center License to produce cannabis and
cannabis-infused products at its existing facilities as of the
effective date of this Act.
    (b) A medical cannabis cultivation center seeking issuance
of an Early Approval Adult Use Cultivation Center License shall
submit an application on forms provided by the Department of
Agriculture. The application must meet or include the following
qualifications:
        (1) Payment of a nonrefundable application fee of
    $100,000 to be deposited into the Cannabis Regulation Fund;
        (2) Proof of registration as a medical cannabis
    cultivation center that is in good standing;
        (3) Submission of the application by the same person or
    entity that holds the medical cannabis cultivation center
    registration;
        (4) Certification that the applicant will comply with
    the requirements of Section 20-30;
        (5) The legal name of the cultivation center;
        (6) The physical address of the cultivation center;
        (7) The name, address, social security number, and date
    of birth of each principal officer and board member of the
    cultivation center; each of those individuals shall be at
    least 21 years of age;
        (8) A nonrefundable Cannabis Business Development Fee
    equal to 5% of the cultivation center's total sales between
    June 1, 2018 to June 1, 2019 or $750,000, whichever is
    less, but at not less than $250,000, to be deposited into
    the Cannabis Business Development Fund; and
        (9) A commitment to completing one of the following
    Social Equity Inclusion Plans provided for in this
    subsection (b) before the expiration of the Early Approval
    Adult Use Cultivation Center License:
            (A) A contribution of 5% of the cultivation
        center's total sales from June 1, 2018 to June 1, 2019,
        or $100,000, whichever is less, to one of the
        following:
                (i) the Cannabis Business Development Fund.
            This is in addition to the fee required by item (8)
            of this subsection (b);
                (ii) a cannabis industry training or education
            program at an Illinois community college as
            defined in the Public Community College Act;
                (iii) a program that provides job training
            services to persons recently incarcerated or that
            operates in a Disproportionately Impacted Area.
            (B) Participate as a host in a cannabis business
        incubator program for at least one year approved by the
        Department of Commerce and Economic Opportunity, and
        in which an Early Approval Adult Use Cultivation Center
        License holder agrees to provide a loan of at least
        $100,000 and mentorship to incubate a licensee that
        qualifies as a Social Equity Applicant. As used in this
        Section, "incubate" means providing direct financial
        assistance and training necessary to engage in
        licensed cannabis industry activity similar to that of
        the host licensee. The Early Approval Adult Use
        Cultivation Center License holder or the same entity
        holding any other licenses issued pursuant to this Act
        shall not take an ownership stake of greater than 10%
        in any business receiving incubation services to
        comply with this subsection. If an Early Approval Adult
        Use Cultivation Center License holder fails to find a
        business to incubate to comply with this subsection
        before its Early Approval Adult Use Cultivation Center
        License expires, it may opt to meet the requirement of
        this subsection by completing another item from this
        subsection prior to the expiration of its Early
        Approval Adult Use Cultivation Center License to avoid
        a penalty.
    (c) An Early Approval Adult Use Cultivation Center License
is valid until March 31, 2021. A cultivation center that
obtains an Early Approval Adult Use Cultivation Center License
shall receive written or electronic notice 90 days before the
expiration of the license that the license will expire, and
inform the license holder that it may renew its Early Approval
Adult Use Cultivation Center License. The Department of
Agriculture shall grant a renewal of an Early Approval Adult
Use Cultivation Center License within 60 days of submission of
an application if:
        (1) the cultivation center submits an application and
    the required renewal fee of $100,000 for an Early Approval
    Adult Use Cultivation Center License;
        (2) the Department of Agriculture has not suspended the
    license of the cultivation center or suspended or revoked
    the license for violating this Act or rules adopted under
    this Act; and
        (3) the cultivation center has completed a Social
    Equity Inclusion Plan as required by item (9) of subsection
    (b) of this Section.
    (c-5) The Early Approval Adult Use Cultivation Center
License renewed pursuant to subsection (c) of this Section
shall expire March 31, 2022. The Early Approval Adult Use
Cultivation Center Licensee shall receive written or
electronic notice 90 days before the expiration of the license
that the license will expire, and inform the license holder
that it may apply for an Adult Use Cultivation Center License.
The Department of Agriculture shall grant an Adult Use
Dispensing Organization License within 60 days of an
application being deemed complete if the applicant meets all of
the criteria in Section 20-21.
    (d) The license fee required by paragraph (1) of subsection
(c) of this Section shall be in addition to any license fee
required for the renewal of a registered medical cannabis
cultivation center license that expires during the effective
period of the Early Approval Adult Use Cultivation Center
License.
    (e) Applicants must submit all required information,
including the requirements in subsection (b) of this Section,
to the Department of Agriculture. Failure by an applicant to
submit all required information may result in the application
being disqualified.
    (f) If the Department of Agriculture receives an
application with missing information, the Department may issue
a deficiency notice to the applicant. The applicant shall have
10 calendar days from the date of the deficiency notice to
submit complete information. Applications that are still
incomplete after this opportunity to cure may be disqualified.
    (g) If an applicant meets all the requirements of
subsection (b) of this Section, the Department of Agriculture
shall issue the Early Approval Adult Use Cultivation Center
License within 14 days of receiving the application unless:
        (1) The licensee; principal officer, board member, or
    person having a financial or voting interest of 5% or
    greater in the licensee; or agent is delinquent in filing
    any required tax returns or paying any amounts owed to the
    State of Illinois;
        (2) The Director of Agriculture determines there is
    reason, based on an inordinate number of documented
    compliance violations, the licensee is not entitled to an
    Early Approval Adult Use Cultivation Center License; or
        (3) The licensee fails to commit to the Social Equity
    Inclusion Plan.
    (h) A cultivation center may begin producing cannabis and
cannabis-infused products once the Early Approval Adult Use
Cultivation Center License is approved. A cultivation center
that obtains an Early Approval Adult Use Cultivation Center
License may begin selling cannabis and cannabis-infused
products on December 1, 2019.
    (i) An Early Approval Adult Use Cultivation Center License
holder must continue to produce and provide an adequate supply
of cannabis and cannabis-infused products for purchase by
qualifying patients and caregivers. For the purposes of this
subsection, "adequate supply" means a monthly production level
that is comparable in type and quantity to those medical
cannabis products produced for patients and caregivers on an
average monthly basis for the 6 months before the effective
date of this Act.
    (j) If there is a shortage of cannabis or cannabis-infused
products, a license holder shall prioritize patients
registered under the Compassionate Use of Medical Cannabis
Pilot Program Act over adult use purchasers.
    (k) If an Early Approval Adult Use Cultivation Center
licensee fails to submit an application for an Adult Use
Cultivation Center License before the expiration of the Early
Approval Adult Use Cultivation Center License pursuant to
subsection (c-5) of this Section, the cultivation center shall
cease adult use cultivation until it receives an Adult Use
Cultivation Center License.
    (l) A cultivation center agent who holds a valid
cultivation center agent identification card issued under the
Compassionate Use of Medical Cannabis Pilot Program Act and is
an officer, director, manager, or employee of the cultivation
center licensed under this Section may engage in all activities
authorized by this Article to be performed by a cultivation
center agent.
    (m) If the Department of Agriculture suspends or revokes
the Early Approval Adult Use Cultivation Center License of a
cultivation center that also holds a medical cannabis
cultivation center license issued under the Compassionate Use
of Medical Cannabis Pilot Program Act, the Department of
Agriculture may suspend or revoke the medical cannabis
cultivation center license concurrently with the Early
Approval Adult Use Cultivation Center License.
    (n) All fees or fines collected from an Early Approval
Adult Use Cultivation Center License holder as a result of a
disciplinary action in the enforcement of this Act shall be
deposited into the Cannabis Regulation Fund.
 
    Section 20-15. Conditional Adult Use Cultivation Center
application.
    (a) If the Department of Agriculture makes available
additional cultivation center licenses pursuant to Section
20-5, applicants for a Conditional Adult Use Cultivation Center
License shall electronically submit the following in such form
as the Department of Agriculture may direct:
        (1) the nonrefundable application fee set by rule by
    the Department of Agriculture, to be deposited into the
    Cannabis Regulation Fund;
        (2) the legal name of the cultivation center;
        (3) the proposed physical address of the cultivation
    center;
        (4) the name, address, social security number, and date
    of birth of each principal officer and board member of the
    cultivation center; each principal officer and board
    member shall be at least 21 years of age;
        (5) the details of any administrative or judicial
    proceeding in which any of the principal officers or board
    members of the cultivation center (i) pled guilty, were
    convicted, fined, or had a registration or license
    suspended or revoked, or (ii) managed or served on the
    board of a business or non-profit organization that pled
    guilty, was convicted, fined, or had a registration or
    license suspended or revoked;
        (6) proposed operating bylaws that include procedures
    for the oversight of the cultivation center, including the
    development and implementation of a plant monitoring
    system, accurate recordkeeping, staffing plan, and
    security plan approved by the Department of State Police
    that are in accordance with the rules issued by the
    Department of Agriculture under this Act. A physical
    inventory shall be performed of all plants and cannabis on
    a weekly basis by the cultivation center;
        (7) verification from the Department of State Police
    that all background checks of the prospective principal
    officers, board members, and agents of the cannabis
    business establishment have been conducted;
        (8) a copy of the current local zoning ordinance or
    permit and verification that the proposed cultivation
    center is in compliance with the local zoning rules and
    distance limitations established by the local
    jurisdiction;
        (9) proposed employment practices, in which the
    applicant must demonstrate a plan of action to inform,
    hire, and educate minorities, women, veterans, and persons
    with disabilities, engage in fair labor practices, and
    provide worker protections;
        (10) whether an applicant can demonstrate experience
    in or business practices that promote economic empowerment
    in Disproportionately Impacted Areas;
        (11) experience with the cultivation of agricultural
    or horticultural products, operating an agriculturally
    related business, or operating a horticultural business;
        (12) a description of the enclosed, locked facility
    where cannabis will be grown, harvested, manufactured,
    processed, packaged, or otherwise prepared for
    distribution to a dispensing organization;
        (13) a survey of the enclosed, locked facility,
    including the space used for cultivation;
        (14) cultivation, processing, inventory, and packaging
    plans;
        (15) a description of the applicant's experience with
    agricultural cultivation techniques and industry
    standards;
        (16) a list of any academic degrees, certifications, or
    relevant experience of all prospective principal officers,
    board members, and agents of the related business;
        (17) the identity of every person having a financial or
    voting interest of 5% or greater in the cultivation center
    operation with respect to which the license is sought,
    whether a trust, corporation, partnership, limited
    liability company, or sole proprietorship, including the
    name and address of each person;
        (18) a plan describing how the cultivation center will
    address each of the following:
            (i) energy needs, including estimates of monthly
        electricity and gas usage, to what extent it will
        procure energy from a local utility or from on-site
        generation, and if it has or will adopt a sustainable
        energy use and energy conservation policy;
            (ii) water needs, including estimated water draw
        and if it has or will adopt a sustainable water use and
        water conservation policy; and
            (iii) waste management, including if it has or will
        adopt a waste reduction policy;
        (19) a diversity plan that includes a narrative of not
    more than 2,500 words that establishes a goal of diversity
    in ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity;
        (20) any other information required by rule;
        (21) a recycling plan:
            (A) Purchaser packaging, including cartridges,
        shall be accepted by the applicant and recycled.
            (B) Any recyclable waste generated by the cannabis
        cultivation facility shall be recycled per applicable
        State and local laws, ordinances, and rules.
            (C) Any cannabis waste, liquid waste, or hazardous
        waste shall be disposed of in accordance with 8 Ill.
        Adm. Code 1000.460, except, to the greatest extent
        feasible, all cannabis plant waste will be rendered
        unusable by grinding and incorporating the cannabis
        plant waste with compostable mixed waste to be disposed
        of in accordance with 8 Ill Adm. Code 1000.460(g)(1);
        (22) commitment to comply with local waste provisions:
    a cultivation facility must remain in compliance with
    applicable State and federal environmental requirements,
    including, but not limited to:
            (A) storing, securing, and managing all
        recyclables and waste, including organic waste
        composed of or containing finished cannabis and
        cannabis products, in accordance with applicable State
        and local laws, ordinances, and rules; and
            (B) Disposing liquid waste containing cannabis or
        byproducts of cannabis processing in compliance with
        all applicable State and federal requirements,
        including, but not limited to, the cannabis
        cultivation facility's permits under Title X of the
        Environmental Protection Act; and
        (23) a commitment to a technology standard for resource
    efficiency of the cultivation center facility.
            (A) A cannabis cultivation facility commits to use
        resources efficiently, including energy and water. For
        the following, a cannabis cultivation facility commits
        to meet or exceed the technology standard identified in
        items (i), (ii), (iii), and (iv), which may be modified
        by rule:
                (i) lighting systems, including light bulbs;
                (ii) HVAC system;
                (iii) water application system to the crop;
            and
                (iv) filtration system for removing
            contaminants from wastewater.
            (B) Lighting. The Lighting Power Densities (LPD)
        for cultivation space commits to not exceed an average
        of 36 watts per gross square foot of active and growing
        space canopy, or all installed lighting technology
        shall meet a photosynthetic photon efficacy (PPE) of no
        less than 2.2 micromoles per joule fixture and shall be
        featured on the DesignLights Consortium (DLC)
        Horticultural Specification Qualified Products List
        (QPL). In the event that DLC requirement for minimum
        efficacy exceeds 2.2 micromoles per joule fixture,
        that PPE shall become the new standard.
            (C) HVAC.
                (i) For cannabis grow operations with less
            than 6,000 square feet of canopy, the licensee
            commits that all HVAC units will be
            high-efficiency ductless split HVAC units, or
            other more energy efficient equipment.
                (ii) For cannabis grow operations with 6,000
            square feet of canopy or more, the licensee commits
            that all HVAC units will be variable refrigerant
            flow HVAC units, or other more energy efficient
            equipment.
            (D) Water application.
                (i) The cannabis cultivation facility commits
            to use automated watering systems, including, but
            not limited to, drip irrigation and flood tables,
            to irrigate cannabis crop.
                (ii) The cannabis cultivation facility commits
            to measure runoff from watering events and report
            this volume in its water usage plan, and that on
            average, watering events shall have no more than
            20% of runoff of water.
            (E) Filtration. The cultivator commits that HVAC
        condensate, dehumidification water, excess runoff, and
        other wastewater produced by the cannabis cultivation
        facility shall be captured and filtered to the best of
        the facility's ability to achieve the quality needed to
        be reused in subsequent watering rounds.
            (F) Reporting energy use and efficiency as
        required by rule.
    (b) Applicants must submit all required information,
including the information required in Section 20-10, to the
Department of Agriculture. Failure by an applicant to submit
all required information may result in the application being
disqualified.
    (c) If the Department of Agriculture receives an
application with missing information, the Department of
Agriculture may issue a deficiency notice to the applicant. The
applicant shall have 10 calendar days from the date of the
deficiency notice to resubmit the incomplete information.
Applications that are still incomplete after this opportunity
to cure will not be scored and will be disqualified.
    (e) A cultivation center that is awarded a Conditional
Adult Use Cultivation Center License pursuant to the criteria
in Section 20-20 shall not grow, purchase, possess, or sell
cannabis or cannabis-infused products until the person has
received an Adult Use Cultivation Center License issued by the
Department of Agriculture pursuant to Section 20-21 of this
Act.
 
    Section 20-20. Conditional Adult Use License scoring
applications.
    (a) The Department of Agriculture shall by rule develop a
system to score cultivation center applications to
administratively rank applications based on the clarity,
organization, and quality of the applicant's responses to
required information. Applicants shall be awarded points based
on the following categories:
        (1) Suitability of the proposed facility;
        (2) Suitability of employee training plan;
        (3) Security and recordkeeping;
        (4) Cultivation plan;
        (5) Product safety and labeling plan;
        (6) Business plan;
        (7) The applicant's status as a Social Equity
    Applicant, which shall constitute no less than 20% of total
    available points;
        (8) Labor and employment practices, which shall
    constitute no less than 2% of total available points;
        (9) Environmental plan as described in paragraphs
    (18), (21), (22), and (23) of subsection (a) of Section
    20-15;
        (10) The applicant is 51% or more owned and controlled
    by an individual or individuals who have been an Illinois
    resident for the past 5 years as proved by tax records;
        (11) The applicant is 51% or more controlled and owned
    by an individual or individuals who meet the qualifications
    of a veteran as defined by Section 45-57 of the Illinois
    Procurement Code;
        (12) a diversity plan that includes a narrative of not
    more than 2,500 words that establishes a goal of diversity
    in ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity; and
        (13) Any other criteria the Department of Agriculture
    may set by rule for points.
    (b) The Department may also award bonus points for the
applicant's plan to engage with the community. Bonus points
will only be awarded if the Department receives applications
that receive an equal score for a particular region.
    (c) Should the applicant be awarded a cultivation center
license, the information and plans that an applicant provided
in its application, including any plans submitted for the
acquiring of bonus points, becomes a mandatory condition of the
permit. Any variation from or failure to perform such plans may
result in discipline, including the revocation or nonrenewal of
a license.
    (d) Should the applicant be awarded a cultivation center
license, it shall pay a fee of $100,000 prior to receiving the
license, to be deposited into the Cannabis Regulation Fund. The
Department of Agriculture may by rule adjust the fee in this
Section after January 1, 2021.
 
    Section 20-21. Adult Use Cultivation Center License.
    (a) A person or entity is only eligible to receive an Adult
Use Cultivation Center License if the person or entity has
first been awarded a Conditional Adult Use Cultivation Center
License pursuant to this Act or the person or entity has
renewed its Early Approval Cultivation Center License pursuant
to subsection (c) of Section 20-10.
    (b) The Department of Agriculture shall not issue an Adult
Use Cultivation Center License until:
        (1) the Department of Agriculture has inspected the
    cultivation center site and proposed operations and
    verified that they are in compliance with this Act and
    local zoning laws;
        (2) the Conditional Adult Use Cultivation Center
    License holder has paid a registration fee of $100,000 or a
    prorated amount accounting for the difference of time
    between when the Adult Use Cultivation Center License is
    issued and March 31 of the next even-numbered year; and
        (3) The Conditional Adult Use Cultivation Center
    License holder has met all the requirements in the Act and
    rules.
 
    Section 20-25. Denial of application. An application for a
cultivation center license must be denied if any of the
following conditions are met:
        (1) the applicant failed to submit the materials
    required by this Article;
        (2) the applicant would not be in compliance with local
    zoning rules;
        (3) one or more of the prospective principal officers
    or board members causes a violation of Section 20-30;
        (4) one or more of the principal officers or board
    members is under 21 years of age;
        (5) the person has submitted an application for a
    permit under this Act that contains false information; or
        (6) the licensee, principal officer, board member, or
    person having a financial or voting interest of 5% or
    greater in the licensee, or the agent is delinquent in
    filing any required tax returns or paying any amounts owed
    to the State of Illinois.
 
    Section 20-30. Cultivation center requirements;
prohibitions.
    (a) The operating documents of a cultivation center shall
include procedures for the oversight of the cultivation center
a cannabis plant monitoring system including a physical
inventory recorded weekly, accurate recordkeeping, and a
staffing plan.
    (b) A cultivation center shall implement a security plan
reviewed by the Department of State Police that includes, but
is not limited to: facility access controls, perimeter
intrusion detection systems, personnel identification systems,
24-hour surveillance system to monitor the interior and
exterior of the cultivation center facility and accessibility
to authorized law enforcement, the Department of Public Health
where processing takes place, and the Department of Agriculture
in real time.
    (c) All cultivation of cannabis by a cultivation center
must take place in an enclosed, locked facility at the physical
address provided to the Department of Agriculture during the
licensing process. The cultivation center location shall only
be accessed by the agents working for the cultivation center,
the Department of Agriculture staff performing inspections,
the Department of Public Health staff performing inspections,
local and State law enforcement or other emergency personnel,
contractors working on jobs unrelated to cannabis, such as
installing or maintaining security devices or performing
electrical wiring, transporting organization agents as
provided in this Act, individuals in a mentoring or educational
program approved by the State, or other individuals as provided
by rule.
    (d) A cultivation center may not sell or distribute any
cannabis or cannabis-infused products to any person other than
a dispensing organization, craft grower, infusing
organization, transporter, or as otherwise authorized by rule.
    (e) A cultivation center may not either directly or
indirectly discriminate in price between different dispensing
organizations, craft growers, or infuser organizations that
are purchasing a like grade, strain, brand, and quality of
cannabis or cannabis-infused product. Nothing in this
subsection (e) prevents a cultivation centers from pricing
cannabis differently based on differences in the cost of
manufacturing or processing, the quantities sold, such as
volume discounts, or the way the products are delivered.
    (f) All cannabis harvested by a cultivation center and
intended for distribution to a dispensing organization must be
entered into a data collection system, packaged and labeled
under Section 55-21, and placed into a cannabis container for
transport. All cannabis harvested by a cultivation center and
intended for distribution to a craft grower or infuser
organization must be packaged in a labeled cannabis container
and entered into a data collection system before transport.
    (g) Cultivation centers are subject to random inspections
by the Department of Agriculture, the Department of Public
Health, local safety or health inspectors, and the Department
of State Police.
    (h) A cultivation center agent shall notify local law
enforcement, the Department of State Police, and the Department
of Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone or in person, or by
written or electronic communication.
    (i) A cultivation center shall comply with all State and
any applicable federal rules and regulations regarding the use
of pesticides on cannabis plants.
    (j) No person or entity shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 3 cultivation centers licensed under this Article.
Further, no person or entity that is employed by, an agent of,
has a contract to receive payment in any form from a
cultivation center, is a principal officer of a cultivation
center, or entity controlled by or affiliated with a principal
officer of a cultivation shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, in a
cultivation that would result in the person or entity owning or
controlling in combination with any cultivation center,
principal officer of a cultivation center, or entity controlled
or affiliated with a principal officer of a cultivation center
by which he, she, or it is employed, is an agent of, or
participates in the management of, more than 3 cultivation
center licenses.
    (k) A cultivation center may not contain more than 210,000
square feet of canopy space for plants in the flowering stage
for cultivation of adult use cannabis as provided in this Act.
    (l) A cultivation center may process cannabis, cannabis
concentrates, and cannabis-infused products.
    (m) Beginning July 1, 2020, a cultivation center shall not
transport cannabis to a craft grower, dispensing organization,
infuser organization, or laboratory licensed under this Act,
unless it has obtained a transporting organization license.
    (n) It is unlawful for any person having a cultivation
center license or any officer, associate, member,
representative, or agent of such licensee to offer or deliver
money, or anything else of value, directly or indirectly to any
person having an Early Approval Adult Use Dispensing
Organization License, a Conditional Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization license
issued under the Compassionate Use of Medical Cannabis Pilot
Program Act, or to any person connected with or in any way
representing, or to any member of the family of, such person
holding an Early Approval Adult Use Dispensing Organization
License, a Conditional Adult Use Dispensing Organization
License, an Adult Use Dispensing Organization License, or a
medical cannabis dispensing organization license issued under
the Compassionate Use of Medical Cannabis Pilot Program Act, or
to any stockholders in any corporation engaged in the retail
sale of cannabis, or to any officer, manager, agent, or
representative of the Early Approval Adult Use Dispensing
Organization License, a Conditional Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization license
issued under the Compassionate Use of Medical Cannabis Pilot
Program Act to obtain preferential placement within the
dispensing organization, including, without limitation, on
shelves and in display cases where purchasers can view
products, or on the dispensing organization's website.
    (o) A cultivation center must comply with any other
requirements or prohibitions set by administrative rule of the
Department of Agriculture.
 
    Section 20-35. Cultivation center agent identification
card.
    (a) The Department of Agriculture shall:
        (1) establish by rule the information required in an
    initial application or renewal application for an agent
    identification card submitted under this Act and the
    nonrefundable fee to accompany the initial application or
    renewal application;
        (2) verify the information contained in an initial
    application or renewal application for an agent
    identification card submitted under this Act, and approve
    or deny an application within 30 days of receiving a
    completed initial application or renewal application and
    all supporting documentation required by rule;
        (3) issue an agent identification card to a qualifying
    agent within 15 business days of approving the initial
    application or renewal application;
        (4) enter the license number of the cultivation center
    where the agent works; and
        (5) allow for an electronic initial application and
    renewal application process, and provide a confirmation by
    electronic or other methods that an application has been
    submitted. The Department of Agriculture may by rule
    require prospective agents to file their applications by
    electronic means and provide notices to the agents by
    electronic means.
    (b) An agent must keep his or her identification card
visible at all times when on the property of the cultivation
center at which the agent is employed.
    (c) The agent identification cards shall contain the
following:
        (1) the name of the cardholder;
        (2) the date of issuance and expiration date of the
    identification card;
        (3) a random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the holder;
        (4) a photograph of the cardholder; and
        (5) the legal name of the cultivation center employing
    the agent.
    (d) An agent identification card shall be immediately
returned to the cultivation center of the agent upon
termination of his or her employment.
    (e) Any agent identification card lost by a cultivation
center agent shall be reported to the Department of State
Police and the Department of Agriculture immediately upon
discovery of the loss.
    (f) The Department of Agriculture shall not issue an agent
identification card if the applicant is delinquent in filing
any required tax returns or paying any amounts owed to the
State of Illinois.
 
    Section 20-40. Cultivation center background checks.
    (a) Through the Department of State Police, the Department
of Agriculture shall conduct a background check of the
prospective principal officers, board members, and agents of a
cultivation center applying for a license or identification
card under this Act. The Department of State Police shall
charge a fee set by rule for conducting the criminal history
record check, which shall be deposited into the State Police
Services Fund and shall not exceed the actual cost of the
record check. In order to carry out this provision, each
cultivation center prospective principal officer, board
member, or agent shall submit a full set of fingerprints to the
Department of State Police for the purpose of obtaining a State
and federal criminal records check. These fingerprints shall be
checked against the fingerprint records now and hereafter, to
the extent allowed by law, filed in the Department of State
Police and Federal Bureau of Investigation criminal history
records databases. The Department of State Police shall
furnish, following positive identification, all conviction
information to the Department of Agriculture.
    (b) When applying for the initial license or identification
card, the background checks for all prospective principal
officers, board members, and agents shall be completed before
submitting the application to the licensing or issuing agency.
 
    Section 20-45. Renewal of cultivation center licenses and
agent identification cards.
    (a) Licenses and identification cards issued under this Act
shall be renewed annually. A cultivation center shall receive
written or electronic notice 90 days before the expiration of
its current license that the license will expire. The
Department of Agriculture shall grant a renewal within 45 days
of submission of a renewal application if:
        (1) the cultivation center submits a renewal
    application and the required nonrefundable renewal fee of
    $100,000, or another amount as the Department of
    Agriculture may set by rule after January 1, 2021, to be
    deposited into the Cannabis Regulation Fund.
        (2) the Department of Agriculture has not suspended the
    license of the cultivation center or suspended or revoked
    the license for violating this Act or rules adopted under
    this Act;
        (3) the cultivation center has continued to operate in
    accordance with all plans submitted as part of its
    application and approved by the Department of Agriculture
    or any amendments thereto that have been approved by the
    Department of Agriculture;
        (4) the cultivation center has submitted an agent,
    employee, contracting, and subcontracting diversity report
    as required by the Department; and
        (5) the cultivation center has submitted an
    environmental impact report.
    (b) If a cultivation center fails to renew its license
before expiration, it shall cease operations until its license
is renewed.
    (c) If a cultivation center agent fails to renew his or her
identification card before its expiration, he or she shall
cease to work as an agent of the cultivation center until his
or her identification card is renewed.
    (d) Any cultivation center that continues to operate, or
any cultivation center agent who continues to work as an agent,
after the applicable license or identification card has expired
without renewal is subject to the penalties provided under
Section 45-5.
 
    Section 20-50. Cultivator taxes; returns.
    (a) A tax is imposed upon the privilege of cultivating and
processing adult use cannabis at the rate of 7% of the gross
receipts from the sale of cannabis by a cultivator to a
dispensing organization. The sale of any adult use product that
contains any amount of cannabis or any derivative thereof is
subject to the tax under this Section on the full selling price
of the product. The proceeds from this tax shall be deposited
into the Cannabis Regulation Fund. This tax shall be paid by
the cultivator who makes the first sale and is not the
responsibility of a dispensing organization, qualifying
patient, or purchaser.
    (b)In the administration of and compliance with this
Section, the Department of Revenue and persons who are subject
to this Section: (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) are subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in the Cannabis Cultivation
Privilege Tax Law and the Uniform Penalty and Interest Act as
if those provisions were set forth in this Section.
    (c)The tax imposed under this Act shall be in addition to
all other occupation or privilege taxes imposed by the State of
Illinois or by any municipal corporation or political
subdivision thereof.
 
ARTICLE 25.
COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM

 
    Section 25-1. Definitions In this Article:
    "Board" means the Illinois Community College Board.
    "Career in Cannabis Certificate" or "Certificate" means
the certification awarded to a community college student who
completes a prescribed course of study in cannabis and cannabis
business industry related classes and curriculum at a community
college awarded a Community College Cannabis Vocational Pilot
Program license.
    "Community college" means a public community college
organized under the Public Community College Act.
    "Department" means the Department of Agriculture.
    "Licensee" means a community college awarded a Community
College Cannabis Vocational Pilot Program license under this
Article.
    "Program" means the Community College Cannabis Vocational
Pilot Program.
    "Program license" means a Community College Cannabis
Vocational Pilot Program license issued to a community college
under this Article.
 
    Section 25-5. Administration.
    (a) The Department shall establish and administer the
Program in coordination with the Illinois Community College
Board. The Department may issue up to 8 Program licenses by
September 1, 2020.
    (b) Beginning with the 2021-2022 academic year, and subject
to subsection (h) of Section 2-12 of the Public Community
College Act, community colleges awarded Program licenses may
offer qualifying students a Career in Cannabis Certificate,
which includes, but is not limited to, courses that allow
participating students to work with, study, and grow live
cannabis plants so as to prepare students for a career in the
legal cannabis industry, and to instruct participating
students on the best business practices, professional
responsibility, and legal compliance of the cannabis business
industry.
    (c) The Board may issue rules pertaining to the provisions
in this Act.
    (d) Notwithstanding any other provision of this Act,
students shall be at least 18 years old in order to enroll in a
licensee's Career in Cannabis Certificate's prescribed course
of study.
 
    Section 25-10. Issuance of Community College Cannabis
Vocational Pilot Program licenses.
    (a) The Department shall issue rules regulating the
selection criteria for applicants by January 1, 2020. The
Department shall make the application for a Program license
available no later than February 1, 2020, and shall require
that applicants submit the completed application no later than
July 1, 2020.
    (b) The Department shall by rule develop a system to score
Program licenses to administratively rank applications based
on the clarity, organization, and quality of the applicant's
responses to required information. Applicants shall be awarded
points that are based on or that meet the following categories:
        (1) Geographic diversity of the applicants;
        (2) Experience and credentials of the applicant's
    faculty;
        (3) At least 5 Program license awardees must have a
    student population that is more than 50% low-income in each
    of the past 4 years;
        (4) Security plan, including a requirement that all
    cannabis plants be in an enclosed, locked facility;
        (5) Curriculum plan, including processing and testing
    curriculum for the Career in Cannabis Certificate;
        (6) Career advising and placement plan for
    participating students; and
        (7) Any other criteria the Department may set by rule.
 
    Section 25-15. Community College Cannabis Vocational Pilot
Program requirements and prohibitions.
    (a) Licensees shall not have more than 50 flowering
cannabis plants at any one time.
    (b) The agent-in-charge shall keep a vault log of the
licensee's enclosed, locked facility or facilities, including
but not limited to, the person entering the site location, the
time of entrance, the time of exit, and any other information
the Department may set by rule.
    (c) Cannabis shall not be removed from the licensee's
facility, except for the limited purpose of shipping a sample
to a laboratory registered under this Act.
    (d) The licensee shall limit keys, access cards, or an
access code to the licensee's enclosed, locked facility, or
facilities, to cannabis curriculum faculty and college
security personnel with a bona fide need to access the facility
for emergency purposes.
    (e) A transporting organization may transport cannabis
produced pursuant to this Article to a laboratory registered
under this Act. All other cannabis produced by the licensee
that was not shipped to a registered laboratory shall be
destroyed within 5 weeks of being harvested.
    (f) Licensees shall subscribe to the Department of
Agriculture's cannabis plant monitoring system.
    (g) Licensees shall maintain a weekly inventory system.
    (h) No student participating in the cannabis curriculum
necessary to obtain a Certificate may be in the licensee's
facility unless a faculty agent-in-charge is also physically
present in the facility.
    (i) Licensees shall conduct post-certificate follow up
surveys and record participating students' job placements
within the cannabis business industry within a year of the
student's completion.
    (j) The Illinois Community College Board shall report
annually to the Department on the race, ethnicity, and gender
of all students participating in the cannabis curriculum
necessary to obtain a Certificate, and of those students who
obtain a Certificate.
 
    Section 25-20. Faculty.
    (a) All faculty members shall be required to maintain
registration as an agent-in-charge and have a valid agent
identification card prior to teaching or participating in the
licensee's cannabis curriculum that involves instruction
offered in the enclosed, locked facility or facilities.
    (b) All faculty receiving an agent-in-charge or agent
identification card must successfully pass a background check
required by Section 5-20 prior to participating in a licensee's
cannabis curriculum that involves instruction offered in the
enclosed, locked facility.
 
    Section 25-25. Enforcement.
    (a) The Department has the authority to suspend or revoke
any faculty agent-in-charge or agent identification card for
any violation found under this Article.
    (b) The Department has the authority to suspend or revoke
any Program license for any violation found under this Article.
    (c) The Board shall revoke the authority to offer the
Certificate of any community college that has had its license
revoked by the Department.
 
    Section 25-30. Inspection rights.
    (a) A licensee's enclosed, locked facilities are subject to
random inspections by the Department and the Department of
State Police.
    (b) Nothing in this Section shall be construed to give the
Department or the Department of State Police a right of
inspection or access to any location on the licensee's premises
beyond the facilities licensed under this Article.
 
    Section 25-35. Community College Cannabis Vocational
Training Pilot Program faculty participant agent
identification card.
    (a) The Department shall:
        (1) establish by rule the information required in an
    initial application or renewal application for an agent
    identification card submitted under this Article and the
    nonrefundable fee to accompany the initial application or
    renewal application;
        (2) verify the information contained in an initial
    application or renewal application for an agent
    identification card submitted under this Article, and
    approve or deny an application within 30 days of receiving
    a completed initial application or renewal application and
    all supporting documentation required by rule;
        (3) issue an agent identification card to a qualifying
    agent within 15 business days of approving the initial
    application or renewal application;
        (4) enter the license number of the community college
    where the agent works; and
        (5) allow for an electronic initial application and
    renewal application process, and provide a confirmation by
    electronic or other methods that an application has been
    submitted. Each Department may by rule require prospective
    agents to file their applications by electronic means and
    to provide notices to the agents by electronic means.
    (b) An agent must keep his or her identification card
visible at all times when in the enclosed, locked facility, or
facilities for which he or she is an agent.
    (c) The agent identification cards shall contain the
following:
        (1) the name of the cardholder;
        (2) the date of issuance and expiration date of the
    identification card;
        (3) a random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the holder;
        (4) a photograph of the cardholder; and
        (5) the legal name of the community college employing
    the agent.
    (d) An agent identification card shall be immediately
returned to the community college of the agent upon termination
of his or her employment.
    (e) Any agent identification card lost shall be reported to
the Department of State Police and the Department of
Agriculture immediately upon discovery of the loss.
 
    Section 25-40. Study. By December 31, 2025, the Illinois
Cannabis Regulation Oversight Officer, in coordination with
the Board, must issue a report to the Governor and the General
Assembly which includes, but is not limited to, the following:
        (1) Number of security incidents or infractions at each
    licensee and any action taken or not taken;
        (2) Statistics, based on race, ethnicity, gender, and
    participating community college of:
            (A) students enrolled in career in cannabis
        classes;
            (B) successful completion rates by community
        college students for the Certificate;
            (C) postgraduate job placement of students who
        obtained a Certificate, including both cannabis
        business establishment jobs and non-cannabis business
        establishment jobs; and
        (3) Any other relevant information.
 
    Section 25-45. Repeal. This Article is repealed on July 1,
2026.
 
ARTICLE 30.
CRAFT GROWERS

 
    Section 30-3. Definition. In this Article, "Department"
means the Department of Agriculture.
 
    Section 30-5. Issuance of licenses.
    (a) The Department of Agriculture shall issue up to 40
craft grower licenses by July 1, 2020. Any person or entity
awarded a license pursuant to this subsection shall only hold
one craft grower license and may not sell that license until
after December 21, 2021.
    (b) By December 21, 2021, the Department of Agriculture
shall issue up to 60 additional craft grower licenses. Any
person or entity awarded a license pursuant to this subsection
shall not hold more than 2 craft grower licenses. The person or
entity awarded a license pursuant to this subsection or
subsection (a) of this Section may sell its craft grower
license subject to the restrictions of this Act or as
determined by administrative rule. Prior to issuing such
licenses, the Department may adopt rules through emergency
rulemaking in accordance with subsection (gg) of Section 5-45
of the Illinois Administrative Procedure Act, to modify or
raise the number of craft grower licenses assigned to each
region and modify or change the licensing application process
to reduce or eliminate barriers. The General Assembly finds
that the adoption of rules to regulate cannabis use is deemed
an emergency and necessary for the public interest, safety, and
welfare. In determining whether to exercise the authority
granted by this subsection, the Department of Agriculture must
consider the following factors:
        (1) The percentage of cannabis sales occurring in
    Illinois not in the regulated market using data from the
    Substance Abuse and Mental Health Services Administration,
    National Survey on Drug Use and Health, Illinois Behavioral
    Risk Factor Surveillance System, and tourism data from the
    Illinois Office of Tourism to ascertain total cannabis
    consumption in Illinois compared to the amount of sales in
    licensed dispensing organizations;
        (2) Whether there is an adequate supply of cannabis and
    cannabis-infused products to serve registered medical
    cannabis patients;
        (3) Whether there is an adequate supply of cannabis and
    cannabis-infused products to serve purchasers;
        (4) Whether there is an oversupply of cannabis in
    Illinois leading to trafficking of cannabis to states where
    the sale of cannabis is not permitted by law;
        (5) Population increases or shifts;
        (6) The density of craft growers in any area of the
    State;
        (7) Perceived security risks of increasing the number
    or location of craft growers;
        (8) The past safety record of craft growers;
        (9) The Department of Agriculture's capacity to
    appropriately regulate additional licensees;
        (10) The findings and recommendations from the
    disparity and availability study commissioned by the
    Illinois Cannabis Regulation Oversight Officer to reduce
    or eliminate any identified barriers to entry in the
    cannabis industry; and
        (11) Any other criteria the Department of Agriculture
    deems relevant.
    (c) After January 1, 2022, the Department of Agriculture
may by rule modify or raise the number of craft grower licenses
assigned to each region, and modify or change the licensing
application process to reduce or eliminate barriers based on
the criteria in subsection (b). At no time may the number of
craft grower licenses exceed 150. Any person or entity awarded
a license pursuant to this subsection shall not hold more than
3 craft grower licenses. A person or entity awarded a license
pursuant to this subsection or subsection (a) or subsection (b)
of this Section may sell its craft grower license or licenses
subject to the restrictions of this Act or as determined by
administrative rule.
 
    Section 30-10. Application.
    (a) When applying for a license, the applicant shall
electronically submit the following in such form as the
Department of Agriculture may direct:
        (1) the nonrefundable application fee of $5,000 to be
    deposited into the Cannabis Regulation Fund, or another
    amount as the Department of Agriculture may set by rule
    after January 1, 2021;
        (2) the legal name of the craft grower;
        (3) the proposed physical address of the craft grower;
        (4) the name, address, social security number, and date
    of birth of each principal officer and board member of the
    craft grower; each principal officer and board member shall
    be at least 21 years of age;
        (5) the details of any administrative or judicial
    proceeding in which any of the principal officers or board
    members of the craft grower (i) pled guilty, were
    convicted, fined, or had a registration or license
    suspended or revoked or (ii) managed or served on the board
    of a business or non-profit organization that pled guilty,
    was convicted, fined, or had a registration or license
    suspended or revoked;
        (6) proposed operating bylaws that include procedures
    for the oversight of the craft grower, including the
    development and implementation of a plant monitoring
    system, accurate recordkeeping, staffing plan, and
    security plan approved by the Department of State Police
    that are in accordance with the rules issued by the
    Department of Agriculture under this Act; a physical
    inventory shall be performed of all plants and on a weekly
    basis by the craft grower;
        (7) verification from the Department of State Police
    that all background checks of the prospective principal
    officers, board members, and agents of the cannabis
    business establishment have been conducted;
        (8) a copy of the current local zoning ordinance or
    permit and verification that the proposed craft grower is
    in compliance with the local zoning rules and distance
    limitations established by the local jurisdiction;
        (9) proposed employment practices, in which the
    applicant must demonstrate a plan of action to inform,
    hire, and educate minorities, women, veterans, and persons
    with disabilities, engage in fair labor practices, and
    provide worker protections;
        (10) whether an applicant can demonstrate experience
    in or business practices that promote economic empowerment
    in Disproportionately Impacted Areas;
        (11) experience with the cultivation of agricultural
    or horticultural products, operating an agriculturally
    related business, or operating a horticultural business;
        (12) a description of the enclosed, locked facility
    where cannabis will be grown, harvested, manufactured,
    packaged, or otherwise prepared for distribution to a
    dispensing organization or other cannabis business
    establishment;
        (13) a survey of the enclosed, locked facility,
    including the space used for cultivation;
        (14) cultivation, processing, inventory, and packaging
    plans;
        (15) a description of the applicant's experience with
    agricultural cultivation techniques and industry
    standards;
        (16) a list of any academic degrees, certifications, or
    relevant experience of all prospective principal officers,
    board members, and agents of the related business;
        (17) the identity of every person having a financial or
    voting interest of 5% or greater in the craft grower
    operation, whether a trust, corporation, partnership,
    limited liability company, or sole proprietorship,
    including the name and address of each person;
        (18) a plan describing how the craft grower will
    address each of the following:
            (i) energy needs, including estimates of monthly
        electricity and gas usage, to what extent it will
        procure energy from a local utility or from on-site
        generation, and if it has or will adopt a sustainable
        energy use and energy conservation policy;
            (ii) water needs, including estimated water draw
        and if it has or will adopt a sustainable water use and
        water conservation policy; and
            (iii) waste management, including if it has or will
        adopt a waste reduction policy;
        (19) a recycling plan:
            (A) Purchaser packaging, including cartridges,
        shall be accepted by the applicant and recycled.
            (B) Any recyclable waste generated by the craft
        grower facility shall be recycled per applicable State
        and local laws, ordinances, and rules.
            (C) Any cannabis waste, liquid waste, or hazardous
        waste shall be disposed of in accordance with 8 Ill.
        Adm. Code 1000.460, except, to the greatest extent
        feasible, all cannabis plant waste will be rendered
        unusable by grinding and incorporating the cannabis
        plant waste with compostable mixed waste to be disposed
        of in accordance with 8 Ill Adm. Code 1000.460(g)(1).
        (20) a commitment to comply with local waste
    provisions: a craft grower facility must remain in
    compliance with applicable State and federal environmental
    requirements, including, but not limited to:
            (A) storing, securing, and managing all
        recyclables and waste, including organic waste
        composed of or containing finished cannabis and
        cannabis products, in accordance with applicable State
        and local laws, ordinances, and rules; and
            (B) Disposing liquid waste containing cannabis or
        byproducts of cannabis processing in compliance with
        all applicable State and federal requirements,
        including, but not limited to, the cannabis
        cultivation facility's permits under Title X of the
        Environmental Protection Act.
        (21) a commitment to a technology standard for resource
    efficiency of the craft grower facility.
            (A) A craft grower facility commits to use
        resources efficiently, including energy and water. For
        the following, a cannabis cultivation facility commits
        to meet or exceed the technology standard identified in
        paragraphs (i), (ii), (iii), and (iv), which may be
        modified by rule:
                (i) lighting systems, including light bulbs;
                (ii) HVAC system;
                (iii) water application system to the crop;
            and
                (iv) filtration system for removing
            contaminants from wastewater.
            (B) Lighting. The Lighting Power Densities (LPD)
        for cultivation space commits to not exceed an average
        of 36 watts per gross square foot of active and growing
        space canopy, or all installed lighting technology
        shall meet a photosynthetic photon efficacy (PPE) of no
        less than 2.2 micromoles per joule fixture and shall be
        featured on the DesignLights Consortium (DLC)
        Horticultural Specification Qualified Products List
        (QPL). In the event that DLC requirement for minimum
        efficacy exceeds 2.2 micromoles per joule fixture,
        that PPE shall become the new standard.
            (C) HVAC.
                (i) For cannabis grow operations with less
            than 6,000 square feet of canopy, the licensee
            commits that all HVAC units will be
            high-efficiency ductless split HVAC units, or
            other more energy efficient equipment.
                (ii) For cannabis grow operations with 6,000
            square feet of canopy or more, the licensee commits
            that all HVAC units will be variable refrigerant
            flow HVAC units, or other more energy efficient
            equipment.
            (D) Water application.
                (i) The craft grower facility commits to use
            automated watering systems, including, but not
            limited to, drip irrigation and flood tables, to
            irrigate cannabis crop.
                (ii) The craft grower facility commits to
            measure runoff from watering events and report
            this volume in its water usage plan, and that on
            average, watering events shall have no more than
            20% of runoff of water.
            (E) Filtration. The craft grower commits that HVAC
        condensate, dehumidification water, excess runoff, and
        other wastewater produced by the craft grower facility
        shall be captured and filtered to the best of the
        facility's ability to achieve the quality needed to be
        reused in subsequent watering rounds.
            (F) Reporting energy use and efficiency as
        required by rule; and
        (22) any other information required by rule.
    (b) Applicants must submit all required information,
including the information required in Section 30-15, to the
Department of Agriculture. Failure by an applicant to submit
all required information may result in the application being
disqualified.
    (c) If the Department of Agriculture receives an
application with missing information, the Department of
Agriculture may issue a deficiency notice to the applicant. The
applicant shall have 10 calendar days from the date of the
deficiency notice to resubmit the incomplete information.
Applications that are still incomplete after this opportunity
to cure will not be scored and will be disqualified.
 
    Section 30-15. Scoring applications.
    (a) The Department of Agriculture shall by rule develop a
system to score craft grower applications to administratively
rank applications based on the clarity, organization, and
quality of the applicant's responses to required information.
Applicants shall be awarded points based on the following
categories:
        (1) Suitability of the proposed facility;
        (2) Suitability of the employee training plan;
        (3) Security and recordkeeping;
        (4) Cultivation plan;
        (5) Product safety and labeling plan;
        (6) Business plan;
        (7) The applicant's status as a Social Equity
    Applicant, which shall constitute no less than 20% of total
    available points;
        (8) Labor and employment practices, which shall
    constitute no less than 2% of total available points;
        (9) Environmental plan as described in paragraphs
    (18), (19), (20), and (21) of subsection (a) of Section
    30-10;
        (10) The applicant is 51% or more owned and controlled
    by an individual or individuals who have been an Illinois
    resident for the past 5 years as proved by tax records;
        (11) The applicant is 51% or more controlled and owned
    by an individual or individuals who meet the qualifications
    of a veteran as defined in Section 45-57 of the Illinois
    Procurement Code;
        (12) A diversity plan that includes a narrative of not
    more than 2,500 words that establishes a goal of diversity
    in ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity; and
        (13) Any other criteria the Department of Agriculture
    may set by rule for points.
    (b) The Department may also award up to 2 bonus points for
the applicant's plan to engage with the community. The
applicant may demonstrate a desire to engage with its community
by participating in one or more of, but not limited to, the
following actions: (i) establishment of an incubator program
designed to increase participation in the cannabis industry by
persons who would qualify as Social Equity Applicants; (ii)
providing financial assistance to substance abuse treatment
centers; (iii) educating children and teens about the potential
harms of cannabis use; or (iv) other measures demonstrating a
commitment to the applicant's community. Bonus points will only
be awarded if the Department receives applications that receive
an equal score for a particular region.
    (c) Should the applicant be awarded a craft grower license,
the information and plans that an applicant provided in its
application, including any plans submitted for the acquiring of
bonus points, shall be a mandatory condition of the license.
Any variation from or failure to perform such plans may result
in discipline, including the revocation or nonrenewal of a
license.
    (d) Should the applicant be awarded a craft grower license,
the applicant shall pay a prorated fee of $40,000 prior to
receiving the license, to be deposited into the Cannabis
Regulation Fund. The Department of Agriculture may by rule
adjust the fee in this Section after January 1, 2021.
 
    Section 30-20. Issuance of license to certain persons
prohibited.
    (a) No craft grower license issued by the Department of
Agriculture shall be issued to a person who is licensed by any
licensing authority as a cultivation center, or to any
partnership, corporation, limited liability company, or trust
or any subsidiary, affiliate, or any other form of business
enterprise having more than 10% legal, equitable, or beneficial
interest, directly or indirectly, in a person licensed in this
State as a cultivation center, or to any principal officer,
agent, employee, or human being with any form of ownership or
control over a cultivation center except for a person who owns
no more than 5% of the outstanding shares of a cultivation
center whose shares are publicly traded on an exchange within
the meaning of the Securities Exchange Act of 1934.
    (b) A person who is licensed in this State as a craft
grower, or any partnership, corporation, limited liability
company, or trust or any subsidiary, affiliate, or agent
thereof, or any other form of business enterprise licensed in
this State as a craft grower shall not have more than 10%
legal, equitable, or beneficial interest, directly or
indirectly, in a person licensed as a cultivation center, nor
shall any partnership, corporation, limited liability company,
or trust or any subsidiary, affiliate, or any other form of
business enterprise having any legal, equitable, or beneficial
interest, directly or indirectly, in a person licensed in this
State as a craft grower or a craft grower agent be a principal
officer, agent, employee, or human being with any form of
ownership or control over a cultivation center except for a
person who owns no more than 5% of the outstanding shares of a
cultivation center whose shares are publicly traded on an
exchange within the meaning of the Securities Exchange Act of
1934.
 
    Section 30-25. Denial of application. An application for a
craft grower license must be denied if any of the following
conditions are met:
        (1) the applicant failed to submit the materials
    required by this Article;
        (2) the applicant would not be in compliance with local
    zoning rules;
        (3) one or more of the prospective principal officers
    or board members causes a violation of Section 30-20 of
    this Article;
        (4) one or more of the principal officers or board
    members is under 21 years of age;
        (5) the person has submitted an application for a
    license under this Act that contains false information; or
        (6) the licensee; principal officer, board member, or
    person having a financial or voting interest of 5% or
    greater in the licensee; or agent is delinquent in filing
    any required tax returns or paying any amounts owed to the
    State of Illinois.
 
    Section 30-30. Craft grower requirements; prohibitions.
    (a) The operating documents of a craft grower shall include
procedures for the oversight of the craft grower, a cannabis
plant monitoring system including a physical inventory
recorded weekly, accurate recordkeeping, and a staffing plan.
    (b) A craft grower shall implement a security plan reviewed
by the Department of State Police that includes, but is not
limited to: facility access controls, perimeter intrusion
detection systems, personnel identification systems, and a
24-hour surveillance system to monitor the interior and
exterior of the craft grower facility and that is accessible to
authorized law enforcement and the Department of Agriculture in
real time.
    (c) All cultivation of cannabis by a craft grower must take
place in an enclosed, locked facility at the physical address
provided to the Department of Agriculture during the licensing
process. The craft grower location shall only be accessed by
the agents working for the craft grower, the Department of
Agriculture staff performing inspections, the Department of
Public Health staff performing inspections, State and local law
enforcement or other emergency personnel, contractors working
on jobs unrelated to cannabis, such as installing or
maintaining security devices or performing electrical wiring,
transporting organization agents as provided in this Act, or
participants in the incubator program, individuals in a
mentoring or educational program approved by the State, or
other individuals as provided by rule. However, if a craft
grower shares a premises with an infuser or dispensing
organization, agents from those other licensees may access the
craft grower portion of the premises if that is the location of
common bathrooms, lunchrooms, locker rooms, or other areas of
the building where work or cultivation of cannabis is not
performed. At no time may an infuser or dispensing organization
agent perform work at a craft grower without being a registered
agent of the craft grower.
    (d) A craft grower may not sell or distribute any cannabis
to any person other than a cultivation center, a craft grower,
an infuser organization, a dispensing organization, or as
otherwise authorized by rule.
    (e) A craft grower may not be located in an area zoned for
residential use.
    (f) A craft grower may not either directly or indirectly
discriminate in price between different cannabis business
establishments that are purchasing a like grade, strain, brand,
and quality of cannabis or cannabis-infused product. Nothing in
this subsection (f) prevents a craft grower from pricing
cannabis differently based on differences in the cost of
manufacturing or processing, the quantities sold, such as
volume discounts, or the way the products are delivered.
    (g) All cannabis harvested by a craft grower and intended
for distribution to a dispensing organization must be entered
into a data collection system, packaged and labeled under
Section 55-21, and, if distribution is to a dispensing
organization that does not share a premises with the dispensing
organization receiving the cannabis, placed into a cannabis
container for transport. All cannabis harvested by a craft
grower and intended for distribution to a cultivation center,
to an infuser organization, or to a craft grower with which it
does not share a premises, must be packaged in a labeled
cannabis container and entered into a data collection system
before transport.
    (h) Craft growers are subject to random inspections by the
Department of Agriculture, local safety or health inspectors,
and the Department of State Police.
    (i) A craft grower agent shall notify local law
enforcement, the Department of State Police, and the Department
of Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone, in person, or
written or electronic communication.
    (j) A craft grower shall comply with all State and any
applicable federal rules and regulations regarding the use of
pesticides.
    (k) A craft grower or craft grower agent shall not
transport cannabis or cannabis-infused products to any other
cannabis business establishment without a transport
organization license unless:
        (i) If the craft grower is located in a county with a
    population of 3,000,000 or more, the cannabis business
    establishment receiving the cannabis is within 2,000 feet
    of the property line of the craft grower;
        (ii) If the craft grower is located in a county with a
    population of more than 700,000 but fewer than 3,000,000,
    the cannabis business establishment receiving the cannabis
    is within 2 miles of the craft grower; or
        (iii) If the craft grower is located in a county with a
    population of fewer the 700,000, the cannabis business
    establishment receiving the cannabis is within 15 miles of
    the craft grower.
    (l) A craft grower may enter into a contract with a
transporting organization to transport cannabis to a
cultivation center, a craft grower, an infuser organization, a
dispensing organization, or a laboratory.
    (m) No person or entity shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 3 craft grower licenses. Further, no person or entity
that is employed by, an agent of, or has a contract to receive
payment from or participate in the management of a craft
grower, is a principal officer of a craft grower, or entity
controlled by or affiliated with a principal officer of a craft
grower shall hold any legal, equitable, ownership, or
beneficial interest, directly or indirectly, in a craft grower
license that would result in the person or entity owning or
controlling in combination with any craft grower, principal
officer of a craft grower, or entity controlled or affiliated
with a principal officer of a craft grower by which he, she, or
it is employed, is an agent of, or participates in the
management of more than 3 craft grower licenses.
    (n) It is unlawful for any person having a craft grower
license or any officer, associate, member, representative, or
agent of the licensee to offer or deliver money, or anything
else of value, directly or indirectly, to any person having an
Early Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Pilot Program Act, or to
any person connected with or in any way representing, or to any
member of the family of, the person holding an Early Approval
Adult Use Dispensing Organization License, a Conditional Adult
Use Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Pilot Program Act, or to any stockholders in
any corporation engaged in the retail sale of cannabis, or to
any officer, manager, agent, or representative of the Early
Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Pilot Program Act to
obtain preferential placement within the dispensing
organization, including, without limitation, on shelves and in
display cases where purchasers can view products, or on the
dispensing organization's website.
    (o) A craft grower shall not be located within 1,500 feet
of another craft grower or a cultivation center.
    (p) A graft grower may process cannabis, cannabis
concentrates, and cannabis-infused products.
    (q) A craft grower must comply with any other requirements
or prohibitions set by administrative rule of the Department of
Agriculture.
 
    Section 30-35. Craft grower agent identification card.
    (a) The Department of Agriculture shall:
        (1) establish by rule the information required in an
    initial application or renewal application for an agent
    identification card submitted under this Act and the
    nonrefundable fee to accompany the initial application or
    renewal application;
        (2) verify the information contained in an initial
    application or renewal application for an agent
    identification card submitted under this Act and approve or
    deny an application within 30 days of receiving a completed
    initial application or renewal application and all
    supporting documentation required by rule;
        (3) issue an agent identification card to a qualifying
    agent within 15 business days of approving the initial
    application or renewal application;
        (4) enter the license number of the craft grower where
    the agent works; and
        (5) allow for an electronic initial application and
    renewal application process, and provide a confirmation by
    electronic or other methods that an application has been
    submitted. The Department of Agriculture may by rule
    require prospective agents to file their applications by
    electronic means and provide notices to the agents by
    electronic means.
    (b) An agent must keep his or her identification card
visible at all times when on the property of a cannabis
business establishment, including the craft grower
organization for which he or she is an agent.
    (c) The agent identification cards shall contain the
following:
        (1) the name of the cardholder;
        (2) the date of issuance and expiration date of the
    identification card;
        (3) a random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the holder;
        (4) a photograph of the cardholder; and
        (5) the legal name of the craft grower organization
    employing the agent.
    (d) An agent identification card shall be immediately
returned to the cannabis business establishment of the agent
upon termination of his or her employment.
    (e) Any agent identification card lost by a craft grower
agent shall be reported to the Department of State Police and
the Department of Agriculture immediately upon discovery of the
loss.
 
    Section 30-40. Craft grower background checks.
    (a) Through the Department of State Police, the Department
of Agriculture shall conduct a background check of the
prospective principal officers, board members, and agents of a
craft grower applying for a license or identification card
under this Act. The Department of State Police shall charge a
fee set by rule for conducting the criminal history record
check, which shall be deposited into the State Police Services
Fund and shall not exceed the actual cost of the record check.
In order to carry out this Section, each craft grower
organization's prospective principal officer, board member, or
agent shall submit a full set of fingerprints to the Department
of State Police for the purpose of obtaining a State and
federal criminal records check. These fingerprints shall be
checked against the fingerprint records now and hereafter, to
the extent allowed by law, filed in the Department of State
Police and Federal Bureau of Investigation criminal history
records databases. The Department of State Police shall
furnish, following positive identification, all conviction
information to the Department of Agriculture.
    (b) When applying for the initial license or identification
card, the background checks for all prospective principal
officers, board members, and agents shall be completed before
submitting the application to the licensing or issuing agency.
 
    Section 30-45. Renewal of craft grower licenses and agent
identification cards.
    (a) Licenses and identification cards issued under this Act
shall be renewed annually. A craft grower shall receive written
or electronic notice 90 days before the expiration of its
current license that the license will expire. The Department of
Agriculture shall grant a renewal within 45 days of submission
of a renewal application if:
        (1) the craft grower submits a renewal application and
    the required nonrefundable renewal fee of $40,000, or
    another amount as the Department of Agriculture may set by
    rule after January 1, 2021;
        (2) the Department of Agriculture has not suspended the
    license of the craft grower or suspended or revoked the
    license for violating this Act or rules adopted under this
    Act;
        (3) the craft grower has continued to operate in
    accordance with all plans submitted as part of its
    application and approved by the Department of Agriculture
    or any amendments thereto that have been approved by the
    Department of Agriculture;
        (4) the craft grower has submitted an agent, employee,
    contracting, and subcontracting diversity report as
    required by the Department; and
        (5) the craft grower has submitted an environmental
    impact report.
    (b) If a craft grower fails to renew its license before
expiration, it shall cease operations until its license is
renewed.
    (c) If a craft grower agent fails to renew his or her
identification card before its expiration, he or she shall
cease to work as an agent of the craft grower organization
until his or her identification card is renewed.
    (d) Any craft grower that continues to operate, or any
craft grower agent who continues to work as an agent, after the
applicable license or identification card has expired without
renewal is subject to the penalties provided under Section
45-5.
    (e) All fees or fines collected from the renewal of a craft
grower license shall be deposited into the Cannabis Regulation
Fund.
 
    Section 30-50. Craft grower taxes; returns.
    (a) A tax is imposed upon the privilege of cultivating and
processing adult use cannabis at the rate of 7% of the gross
receipts from the sale of cannabis by a craft grower to a
dispensing organization. The sale of any adult use product that
contains any amount of cannabis or any derivative thereof is
subject to the tax under this Section on the full selling price
of the product. The proceeds from this tax shall be deposited
into the Cannabis Regulation Fund. This tax shall be paid by
the craft grower who makes the first sale and is not the
responsibility of a dispensing organization, qualifying
patient, or purchaser.
    (b)In the administration of and compliance with this
Section, the Department of Revenue and persons who are subject
to this Section: (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) are subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in the Cannabis Cultivation
Privilege Tax Law and the Uniform Penalty and Interest Act as
if those provisions were set forth in this Section.
    (c)The tax imposed under this Act shall be in addition to
all other occupation or privilege taxes imposed by the State of
Illinois or by any municipal corporation or political
subdivision thereof.
 
ARTICLE 35.
INFUSER ORGANIZATIONS

 
    Section 35-3. Definitions. In this Article:
    "Department" means the Department of Agriculture.
 
    Section 35-5. Issuance of licenses.
    (a) The Department of Agriculture shall issue up to 40
infuser licenses through a process provided for in this Article
no later than July 1, 2020.
    (b) The Department of Agriculture shall make the
application for infuser licenses available on January 7, 2020,
or if that date falls on a weekend or holiday, the business day
immediately succeeding the weekend or holiday and every January
7 or succeeding business day thereafter, and shall receive such
applications no later than March 15, 2020, or, if that date
falls on a weekend or holiday, the business day immediately
succeeding the weekend or holiday and every March 15 or
succeeding business day thereafter.
    (c) By December 21, 2021, the Department of Agriculture may
issue up to 60 additional infuser licenses. Prior to issuing
such licenses, the Department may adopt rules through emergency
rulemaking in accordance with subsection (gg) of Section 5-45
of the Illinois Administrative Procedure Act, to modify or
raise the number of infuser licenses and modify or change the
licensing application process to reduce or eliminate barriers.
The General Assembly finds that the adoption of rules to
regulate cannabis use is deemed an emergency and necessary for
the public interest, safety, and welfare.
    In determining whether to exercise the authority granted by
this subsection, the Department of Agriculture must consider
the following factors:
        (1) the percentage of cannabis sales occurring in
    Illinois not in the regulated market using data from the
    Substance Abuse and Mental Health Services Administration,
    National Survey on Drug Use and Health, Illinois Behavioral
    Risk Factor Surveillance System, and tourism data from the
    Illinois Office of Tourism to ascertain total cannabis
    consumption in Illinois compared to the amount of sales in
    licensed dispensing organizations;
        (2) whether there is an adequate supply of cannabis and
    cannabis-infused products to serve registered medical
    cannabis patients;
        (3) whether there is an adequate supply of cannabis and
    cannabis-infused products to sere purchasers:
        (4) whether there is an oversupply of cannabis in
    Illinois leading to trafficking of cannabis to any other
    state;
        (5) population increases or shifts;
        (6) changes to federal law;
        (7) perceived security risks of increasing the number
    or location of infuser organizations;
        (8) the past security records of infuser
    organizations;
        (9) the Department of Agriculture's capacity to
    appropriately regulate additional licenses;
        (10) the findings and recommendations from the
    disparity and availability study commissioned by the
    Illinois Cannabis Regulation Oversight Officer to reduce
    or eliminate any identified barriers to entry in the
    cannabis industry; and
        (11) any other criteria the Department of Agriculture
    deems relevant.
    (d) After January 1, 2022, the Department of Agriculture
may by rule modify or raise the number of infuser licenses, and
modify or change the licensing application process to reduce or
eliminate barriers based on the criteria in subsection (c).
 
    Section 35-10. Application.
    (a) When applying for a license, the applicant shall
electronically submit the following in such form as the
Department of Agriculture may direct:
        (1) the nonrefundable application fee of $5,000 or,
    after January 1, 2021, another amount as set by rule by the
    Department of Agriculture, to be deposited into the
    Cannabis Regulation Fund;
        (2) the legal name of the infuser;
        (3) the proposed physical address of the infuser;
        (4) the name, address, social security number, and date
    of birth of each principal officer and board member of the
    infuser; each principal officer and board member shall be
    at least 21 years of age;
        (5) the details of any administrative or judicial
    proceeding in which any of the principal officers or board
    members of the infuser (i) pled guilty, were convicted,
    fined, or had a registration or license suspended or
    revoked, or (ii) managed or served on the board of a
    business or non-profit organization that pled guilty, was
    convicted, fined, or had a registration or license
    suspended or revoked;
        (6) proposed operating bylaws that include procedures
    for the oversight of the infuser, including the development
    and implementation of a plant monitoring system, accurate
    recordkeeping, staffing plan, and security plan approved
    by the Department of State Police that are in accordance
    with the rules issued by the Department of Agriculture
    under this Act; a physical inventory of all cannabis shall
    be performed on a weekly basis by the infuser;
        (7) verification from the Department of State Police
    that all background checks of the prospective principal
    officers, board members, and agents of the infuser
    organization have been conducted;
        (8) a copy of the current local zoning ordinance and
    verification that the proposed infuser is in compliance
    with the local zoning rules and distance limitations
    established by the local jurisdiction;
        (9) proposed employment practices, in which the
    applicant must demonstrate a plan of action to inform,
    hire, and educate minorities, women, veterans, and persons
    with disabilities, engage in fair labor practices, and
    provide worker protections;
        (10) whether an applicant can demonstrate experience
    in or business practices that promote economic empowerment
    in Disproportionately Impacted Areas;
        (11) experience with infusing products with cannabis
    concentrate;
        (12) a description of the enclosed, locked facility
    where cannabis will be infused, packaged, or otherwise
    prepared for distribution to a dispensing organization or
    other infuser;
        (13) processing, inventory, and packaging plans;
        (14) a description of the applicant's experience with
    operating a commercial kitchen or laboratory preparing
    products for human consumption;
        (15) a list of any academic degrees, certifications, or
    relevant experience of all prospective principal officers,
    board members, and agents of the related business;
        (16) the identity of every person having a financial or
    voting interest of 5% or greater in the infuser operation
    with respect to which the license is sought, whether a
    trust, corporation, partnership, limited liability
    company, or sole proprietorship, including the name and
    address of each person;
        (17) a plan describing how the infuser will address
    each of the following:
            (i) energy needs, including estimates of monthly
        electricity and gas usage, to what extent it will
        procure energy from a local utility or from on-site
        generation, and if it has or will adopt a sustainable
        energy use and energy conservation policy;
            (ii) water needs, including estimated water draw,
        and if it has or will adopt a sustainable water use and
        water conservation policy; and
            (iii) waste management, including if it has or will
        adopt a waste reduction policy;
        (18) a recycling plan:
            (A) a commitment that any recyclable waste
        generated by the infuser shall be recycled per
        applicable State and local laws, ordinances, and
        rules; and
            (B) a commitment to comply with local waste
        provisions. An infuser commits to remain in compliance
        with applicable State and federal environmental
        requirements, including, but not limited to, storing,
        securing, and managing all recyclables and waste,
        including organic waste composed of or containing
        finished cannabis and cannabis products, in accordance
        with applicable State and local laws, ordinances, and
        rules; and
        (19) any other information required by rule.
    (b) Applicants must submit all required information,
including the information required in Section 35-15, to the
Department of Agriculture. Failure by an applicant to submit
all required information may result in the application being
disqualified.
    (c) If the Department of Agriculture receives an
application with missing information, the Department of
Agriculture may issue a deficiency notice to the applicant. The
applicant shall have 10 calendar days from the date of the
deficiency notice to resubmit the incomplete information.
Applications that are still incomplete after this opportunity
to cure will not be scored and will be disqualified.
 
    Section 35-15. Issuing licenses.
    (a) The Department of Agriculture shall by rule develop a
system to score infuser applications to administratively rank
applications based on the clarity, organization, and quality of
the applicant's responses to required information. Applicants
shall be awarded points based on the following categories:
        (1) Suitability of the proposed facility;
        (2) Suitability of the employee training plan;
        (3) Security and recordkeeping plan;
        (4) Infusing plan;
        (5) Product safety and labeling plan;
        (6) Business plan;
        (7) The applicant's status as a Social Equity
    Applicant, which shall constitute no less than 20% of total
    available points;
        (8) Labor and employment practices, which shall
    constitute no less than 2% of total available points;
        (9) Environmental plan as described in paragraphs (17)
    and (18) of subsection (a) of Section 35-10;
        (10) The applicant is 51% or more owned and controlled
    by an individual or individuals who have been an Illinois
    resident for the past 5 years as proved by tax records;
        (11) The applicant is 51% or more controlled and owned
    by an individual or individuals who meet the qualifications
    of a veteran as defined by Section 45-57 of the Illinois
    Procurement Code; and
        (12) A diversity plan that includes a narrative of not
    more than 2,500 words that establishes a goal of diversity
    in ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity; and
        (13) Any other criteria the Department of Agriculture
    may set by rule for points.
    (b) The Department may also award up to 2 bonus points for
the applicant's plan to engage with the community. The
applicant may demonstrate a desire to engage with its community
by participating in one or more of, but not limited to, the
following actions: (i) establishment of an incubator program
designed to increase participation in the cannabis industry by
persons who would qualify as Social Equity Applicants; (ii)
providing financial assistance to substance abuse treatment
centers; (iii) educating children and teens about the potential
harms of cannabis use; or (iv) other measures demonstrating a
commitment to the applicant's community. Bonus points will only
be awarded if the Department receives applications that receive
an equal score for a particular region.
    (c) Should the applicant be awarded an infuser license, the
information and plans that an applicant provided in its
application, including any plans submitted for the acquiring of
bonus points, becomes a mandatory condition of the permit. Any
variation from or failure to perform such plans may result in
discipline, including the revocation or nonrenewal of a
license.
    (d) Should the applicant be awarded an infuser organization
license, it shall pay a fee of $5,000 prior to receiving the
license, to be deposited into the Cannabis Regulation Fund. The
Department of Agriculture may by rule adjust the fee in this
Section after January 1, 2021.
 
    Section 35-20. Denial of application. An application for an
infuser license shall be denied if any of the following
conditions are met:
        (1) the applicant failed to submit the materials
    required by this Article;
        (2) the applicant would not be in compliance with local
    zoning rules or permit requirements;
        (3) one or more of the prospective principal officers
    or board members causes a violation of Section 35-25.
        (4) one or more of the principal officers or board
    members is under 21 years of age;
        (5) the person has submitted an application for a
    license under this Act or this Article that contains false
    information; or
        (6) if the licensee; principal officer, board member,
    or person having a financial or voting interest of 5% or
    greater in the licensee; or agent is delinquent in filing
    any required tax returns or paying any amounts owed to the
    State of Illinois.
 
    Section 35-25. Infuser organization requirements;
prohibitions.
    (a) The operating documents of an infuser shall include
procedures for the oversight of the infuser, an inventory
monitoring system including a physical inventory recorded
weekly, accurate recordkeeping, and a staffing plan.
    (b) An infuser shall implement a security plan reviewed by
the Department of State Police that includes, but is not
limited to: facility access controls, perimeter intrusion
detection systems, personnel identification systems, and a
24-hour surveillance system to monitor the interior and
exterior of the infuser facility and that is accessible to
authorized law enforcement, the Department of Public Health,
and the Department of Agriculture in real time.
    (c) All processing of cannabis by an infuser must take
place in an enclosed, locked facility at the physical address
provided to the Department of Agriculture during the licensing
process. The infuser location shall only be accessed by the
agents working for the infuser, the Department of Agriculture
staff performing inspections, the Department of Public Health
staff performing inspections, State and local law enforcement
or other emergency personnel, contractors working on jobs
unrelated to cannabis, such as installing or maintaining
security devices or performing electrical wiring, transporting
organization agents as provided in this Act, participants in
the incubator program, individuals in a mentoring or
educational program approved by the State, local safety or
health inspectors, or other individuals as provided by rule.
However, if an infuser shares a premises with a craft grower or
dispensing organization, agents from these other licensees may
access the infuser portion of the premises if that is the
location of common bathrooms, lunchrooms, locker rooms, or
other areas of the building where processing of cannabis is not
performed. At no time may a craft grower or dispensing
organization agent perform work at an infuser without being a
registered agent of the infuser.
    (d) An infuser may not sell or distribute any cannabis to
any person other than a dispensing organization, or as
otherwise authorized by rule.
    (e) An infuser may not either directly or indirectly
discriminate in price between different cannabis business
establishments that are purchasing a like grade, strain, brand,
and quality of cannabis or cannabis-infused product. Nothing in
this subsection (e) prevents an infuser from pricing cannabis
differently based on differences in the cost of manufacturing
or processing, the quantities sold, such volume discounts, or
the way the products are delivered.
    (f) All cannabis infused by an infuser and intended for
distribution to a dispensing organization must be entered into
a data collection system, packaged and labeled under Section
55-21, and, if distribution is to a dispensing organization
that does not share a premises with the infuser, placed into a
cannabis container for transport. All cannabis produced by an
infuser and intended for distribution to a cultivation center,
infuser organization, or craft grower with which it does not
share a premises, must be packaged in a labeled cannabis
container and entered into a data collection system before
transport.
    (g) Infusers are subject to random inspections by the
Department of Agriculture, the Department of Public Health, the
Department of State Police, and local law enforcement.
    (h) An infuser agent shall notify local law enforcement,
the Department of State Police, and the Department of
Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone, in person, or by
written or electronic communication.
    (i) An infuser organization may not be located in an area
zoned for residential use.
    (j) An infuser or infuser agent shall not transport
cannabis or cannabis-infused products to any other cannabis
business establishment without a transport organization
license unless:
        (i) If the infuser is located in a county with a
    population of 3,000,000 or more, the cannabis business
    establishment receiving the cannabis or cannabis-infused
    product is within 2,000 feet of the property line of the
    infuser;
        (ii) If the infuser is located in a county with a
    population of more than 700,000 but fewer than 3,000,000,
    the cannabis business establishment receiving the cannabis
    or cannabis-infused product is within 2 miles of the
    infuser; or
        (iii) If the infuser is located in a county with a
    population of fewer than 700,000, the cannabis business
    establishment receiving the cannabis or cannabis-infused
    product is within 15 miles of the infuser.
    (k) An infuser may enter into a contract with a
transporting organization to transport cannabis to a
dispensing organization or a laboratory.
    (l) An infuser organization may share premises with a craft
grower or a dispensing organization, or both, provided each
licensee stores currency and cannabis or cannabis-infused
products in a separate secured vault to which the other
licensee does not have access or all licensees sharing a vault
share more than 50% of the same ownership.
    (m) It is unlawful for any person or entity having an
infuser organization license or any officer, associate,
member, representative or agent of such licensee to offer or
deliver money, or anything else of value, directly or
indirectly to any person having an Early Approval Adult Use
Dispensing Organization License, a Conditional Adult Use
Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Pilot Program Act, or to any person connected
with or in any way representing, or to any member of the family
of, such person holding an Early Approval Adult Use Dispensing
Organization License, a Conditional Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization license
issued under the Compassionate Use of Medical Cannabis Pilot
Program Act, or to any stockholders in any corporation engaged
the retail sales of cannabis, or to any officer, manager,
agent, or representative of the Early Approval Adult Use
Dispensing Organization License, a Conditional Adult Use
Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Pilot Program Act to obtain preferential
placement within the dispensing organization, including,
without limitation, on shelves and in display cases where
purchasers can view products, or on the dispensing
organization's website.
    (n) At no time shall an infuser organization or an infuser
agent perform the extraction of cannabis concentrate from
cannabis flower.
 
    Section 35-30. Infuser agent identification card.
    (a) The Department of Agriculture shall:
        (1) establish by rule the information required in an
    initial application or renewal application for an agent
    identification card submitted under this Act and the
    nonrefundable fee to accompany the initial application or
    renewal application;
        (2) verify the information contained in an initial
    application or renewal application for an agent
    identification card submitted under this Act, and approve
    or deny an application within 30 days of receiving a
    completed initial application or renewal application and
    all supporting documentation required by rule;
        (3) issue an agent identification card to a qualifying
    agent within 15 business days of approving the initial
    application or renewal application;
        (4) enter the license number of the infuser where the
    agent works; and
        (5) allow for an electronic initial application and
    renewal application process, and provide a confirmation by
    electronic or other methods that an application has been
    submitted. The Department of Agriculture may by rule
    require prospective agents to file their applications by
    electronic means and provide notices to the agents by
    electronic means.
    (b) An agent must keep his or her identification card
visible at all times when on the property of a cannabis
business establishment including the cannabis business
establishment for which he or she is an agent.
    (c) The agent identification cards shall contain the
following:
        (1) the name of the cardholder;
        (2) the date of issuance and expiration date of the
    identification card;
        (3) a random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the holder;
        (4) a photograph of the cardholder; and
        (5) the legal name of the infuser organization
    employing the agent.
    (d) An agent identification card shall be immediately
returned to the infuser organization of the agent upon
termination of his or her employment.
    (e) Any agent identification card lost by a transporting
agent shall be reported to the Department of State Police and
the Department of Agriculture immediately upon discovery of the
loss.
 
    Section 35-31. Ensuring an adequate supply of raw materials
to serve infusers.
    (a) As used in this Section, "raw materials" includes, but
is not limited to, CO2 hash oil, "crude", "distillate", or any
other cannabis concentrate extracted from cannabis flower by
use of a solvent or a mechanical process.
    (b) The Department of Agriculture may by rule design a
method for assessing whether licensed infusers have access to
an adequate supply of reasonably affordable raw materials,
which may include but not be limited to: (i) a survey of
infusers; (ii) a market study on the sales trends of
cannabis-infused products manufactured by infusers; and (iii)
the costs cultivation centers and craft growers assume for the
raw materials they use in any cannabis-infused products they
manufacture.
    (c) The Department of Agriculture shall perform an
assessment of whether infusers have access to an adequate
supply of reasonably affordable raw materials that shall start
no sooner than January 1, 2022 and shall conclude no later than
April 1, 2022. The Department of Agriculture may rely on data
from the Illinois Cannabis Regulation Oversight Officer as part
of this assessment.
    (d) The Department of Agriculture shall perform an
assessment of whether infusers have access to an adequate
supply of reasonably affordable raw materials that shall start
no sooner than January 1, 2023 and shall conclude no later than
April 1, 2023. The Department of Agriculture may rely on data
from the Cannabis Regulation Oversight Officer as part of this
assessment.
    (e) The Department of Agriculture may by rule adopt
measures to ensure infusers have access to an adequate supply
of reasonably affordable raw materials necessary for the
manufacture of cannabis-infused products. Such measures may
include, but not be limited to (i) requiring cultivation
centers and craft growers to set aside a minimum amount of raw
materials for the wholesale market or (ii) enabling infusers to
apply for a processor license to extract raw materials from
cannabis flower.
    (f) If the Department of Agriculture determines processor
licenses may be available to infusing organizations based upon
findings made pursuant to subsection (e), infuser
organizations may submit to the Department of Agriculture on
forms provided by the Department of Agriculture the following
information as part of an application to receive a processor
license:
        (1) experience with the extraction, processing, or
    infusing of oils similar to those derived from cannabis, or
    other business practices to be performed by the infuser;
        (2) a description of the applicant's experience with
    manufacturing equipment and chemicals to be used in
    processing;
        (3) expertise in relevant scientific fields;
        (4) a commitment that any cannabis waste, liquid waste,
    or hazardous waste shall be disposed of in accordance with
    8 Ill. Adm. Code 1000.460, except, to the greatest extent
    feasible, all cannabis plant waste will be rendered
    unusable by grinding and incorporating the cannabis plant
    waste with compostable mixed waste to be disposed of in
    accordance with Ill. Adm. Code 1000.460(g)(1); and
        (5) any other information the Department of
    Agriculture deems relevant.
    (g) The Department of Agriculture may only issue an
infusing organization a processor license if, based on the
information pursuant to subsection (f) and any other criteria
set by the Department of Agriculture, which may include but not
be limited an inspection of the site where processing would
occur, the Department of Agriculture is reasonably certain the
infusing organization will process cannabis in a safe and
compliant manner.
 
    Section 35-35. Infuser organization background checks.
    (a) Through the Department of State Police, the Department
of Agriculture shall conduct a background check of the
prospective principal officers, board members, and agents of an
infuser applying for a license or identification card under
this Act. The Department of State Police shall charge a fee set
by rule for conducting the criminal history record check, which
shall be deposited into the State Police Services Fund and
shall not exceed the actual cost of the record check. In order
to carry out this provision, each infuser organization's
prospective principal officer, board member, or agent shall
submit a full set of fingerprints to the Department of State
Police for the purpose of obtaining a State and federal
criminal records check. These fingerprints shall be checked
against the fingerprint records now and hereafter, to the
extent allowed by law, filed in the Department of State Police
and Federal Bureau of Investigation criminal history records
databases. The Department of State Police shall furnish,
following positive identification, all conviction information
to the Department of Agriculture.
    (b) When applying for the initial license or identification
card, the background checks for all prospective principal
officers, board members, and agents shall be completed before
submitting the application to the licensing or issuing agency.
 
    Section 35-40. Renewal of infuser organization licenses
and agent identification cards.
    (a) Licenses and identification cards issued under this Act
shall be renewed annually. An infuser organization shall
receive written or electronic notice 90 days before the
expiration of its current license that the license will expire.
The Department of Agriculture shall grant a renewal within 45
days of submission of a renewal application if:
        (1) the infuser organization submits a renewal
    application and the required nonrefundable renewal fee of
    $20,000, or, after January 1, 2021, another amount set by
    rule by the Department of Agriculture, to be deposited into
    the Cannabis Regulation Fund;
        (2) the Department of Agriculture has not suspended or
    revoked the license of the infuser organization for
    violating this Act or rules adopted under this Act;
        (3) the infuser organization has continued to operate
    in accordance with all plans submitted as part of its
    application and approved by the Department of Agriculture
    or any amendments thereto that have been approved by the
    Department of Agriculture;
        (4) The infuser has submitted an agent, employee,
    contracting, and subcontracting diversity report as
    required by the Department; and
        (5) The infuser has submitted an environmental impact
    report.
    (b) If an infuser organization fails to renew its license
before expiration, it shall cease operations until its license
is renewed.
    (c) If an infuser organization agent fails to renew his or
her identification card before its expiration, he or she shall
cease to work as an agent of the infuser organization until his
or her identification card is renewed.
    (d) Any infuser organization that continues to operate, or
any infuser organization agent who continues to work as an
agent, after the applicable license or identification card has
expired without renewal is subject to the penalties provided
under Section 35-25.
    (e) The Department shall not renew a license or an agent
identification card if the applicant is delinquent in filing
any required tax returns or paying any amounts owed to the
State of Illinois.
 
ARTICLE 40.
TRANSPORTING ORGANIZATIONS

 
    Section 40-1. Definition. In this Article, "Department"
means the Department of Agriculture.
 
    Section 40-5. Issuance of licenses.
    (a) The Department shall issue transporting licenses
through a process provided for in this Article no later than
July 1, 2020.
    (b) The Department shall make the application for
transporting organization licenses available on January 7,
2020 and shall receive such applications no later than March
15, 2020. Thereafter, the Department of Agriculture shall make
available such applications on every January 7 thereafter or if
that date falls on a weekend or holiday, the business day
immediately succeeding the weekend or holiday and shall receive
such applications no later than March 15 or the succeeding
business day thereafter.
 
    Section 40-10. Application.
    (a) When applying for a transporting organization license,
the applicant shall electronically submit the following in such
form as the Department of Agriculture may direct:
        (1) the nonrefundable application fee of $5,000 or,
    after January 1, 2021, another amount as set by rule by the
    Department of Agriculture, to be deposited into the
    Cannabis Regulation Fund;
        (2) the legal name of the transporting organization;
        (3) the proposed physical address of the transporting
    organization, if one is proposed;
        (4) the name, address, social security number, and date
    of birth of each principal officer and board member of the
    transporting organization; each principal officer and
    board member shall be at least 21 years of age;
        (5) the details of any administrative or judicial
    proceeding in which any of the principal officers or board
    members of the transporting organization (i) pled guilty,
    were convicted, fined, or had a registration or license
    suspended or revoked, or (ii) managed or served on the
    board of a business or non-profit organization that pled
    guilty, was convicted, fined, or had a registration or
    license suspended or revoked;
        (6) proposed operating bylaws that include procedures
    for the oversight of the transporting organization,
    including the development and implementation of an
    accurate recordkeeping plan, staffing plan, and security
    plan approved by the Department of State Police that are in
    accordance with the rules issued by the Department of
    Agriculture under this Act; a physical inventory shall be
    performed of all cannabis on a weekly basis by the
    transporting organization;
        (7) verification from the Department of State Police
    that all background checks of the prospective principal
    officers, board members, and agents of the transporting
    organization have been conducted;
        (8) a copy of the current local zoning ordinance or
    permit and verification that the proposed transporting
    organization is in compliance with the local zoning rules
    and distance limitations established by the local
    jurisdiction, if the transporting organization has a
    business address;
        (9) proposed employment practices, in which the
    applicant must demonstrate a plan of action to inform,
    hire, and educate minorities, women, veterans, and persons
    with disabilities, engage in fair labor practices, and
    provide worker protections;
        (10) whether an applicant can demonstrate experience
    in or business practices that promote economic empowerment
    in Disproportionately Impacted Areas;
        (11) the number and type of equipment the transporting
    organization will use to transport cannabis and
    cannabis-infused products;
        (12) loading, transporting, and unloading plans;
        (13) a description of the applicant's experience in the
    distribution or security business;
        (14) the identity of every person having a financial or
    voting interest of 5% or more in the transporting
    organization with respect to which the license is sought,
    whether a trust, corporation, partnership, limited
    liability company, or sole proprietorship, including the
    name and address of each person; and
        (15) any other information required by rule.
    (b) Applicants must submit all required information,
including the information required in Section 40-35 to the
Department. Failure by an applicant to submit all required
information may result in the application being disqualified.
    (c) If the Department receives an application with missing
information, the Department of Agriculture may issue a
deficiency notice to the applicant. The applicant shall have 10
calendar days from the date of the deficiency notice to
resubmit the incomplete information. Applications that are
still incomplete after this opportunity to cure will not be
scored and will be disqualified.
 
    Section 40-15. Issuing licenses.
    (a) The Department of Agriculture shall by rule develop a
system to score transporter applications to administratively
rank applications based on the clarity, organization, and
quality of the applicant's responses to required information.
Applicants shall be awarded points based on the following
categories:
        (1) Suitability of employee training plan;
        (2) Security and recordkeeping plan;
        (3) Business plan;
        (4) The applicant's status as a Social Equity
    Applicant, which shall constitute no less than 20% of total
    available points;
        (5) Labor and employment practices, which shall
    constitute no less than 2% of total available points;
        (6) Environmental plan that demonstrates an
    environmental plan of action to minimize the carbon
    footprint, environmental impact, and resource needs for
    the transporter, which may include, without limitation,
    recycling cannabis product packaging;
        (7) the applicant is 51% or more owned and controlled
    by an individual or individuals who have been an Illinois
    resident for the past 5 years as proved by tax records;
        (8) The applicant is 51% or more controlled and owned
    by an individual or individuals who meet the qualifications
    of a veteran as defined by Section 45-57 of the Illinois
    Procurement Code;
        (9) a diversity plan that includes a narrative of not
    more than 2,500 words that establishes a goal of diversity
    in ownership, management, employment, and contracting to
    ensure that diverse participants and groups are afforded
    equality of opportunity; and
        (10) Any other criteria the Department of Agriculture
    may set by rule for points.
    (b) The Department may also award up to 2 bonus points for
the applicant's plan to engage with the community. The
applicant may demonstrate a desire to engage with its community
by participating in one or more of, but not limited to, the
following actions: (i) establishment of an incubator program
designed to increase participation in the cannabis industry by
persons who would qualify as Social Equity Applicants; (ii)
providing financial assistance to substance abuse treatment
centers; (iii) educating children and teens about the potential
harms of cannabis use; or (iv) other measures demonstrating a
commitment to the applicant's community. Bonus points will only
be awarded if the Department receives applications that receive
an equal score for a particular region.
    (c) Applicants for transportation organization licenses
that score at least 85% of available points according to the
system developed by rule and meet all other requirements for a
transporter license shall be issued a license by the Department
of Agriculture within 60 days of receiving the application.
Applicants that were registered as medical cannabis
cultivation centers prior to January 1, 2020 and who meet all
other requirements for a transporter license shall be issued a
license by the Department of Agriculture within 60 days of
receiving the application.
    (d) Should the applicant be awarded a transportation
organization license, the information and plans that an
applicant provided in its application, including any plans
submitted for the acquiring of bonus points, shall be a
mandatory condition of the permit. Any variation from or
failure to perform such plans may result in discipline,
including the revocation or nonrenewal of a license.
    (e) Should the applicant be awarded a transporting
organization license, the applicant shall pay a prorated fee of
$10,000 prior to receiving the license, to be deposited into
the Cannabis Regulation Fund. The Department of Agriculture may
by rule adjust the fee in this Section after January 1, 2021.
 
    Section 40-20. Denial of application. An application for a
transportation organization license shall be denied if any of
the following conditions are met:
        (1) the applicant failed to submit the materials
    required by this Article;
        (2) the applicant would not be in compliance with local
    zoning rules or permit requirements;
        (3) one or more of the prospective principal officers
    or board members causes a violation of Section 40-25;
        (4) one or more of the principal officers or board
    members is under 21 years of age;
        (5) the person has submitted an application for a
    license under this Act that contains false information; or
        (6) the licensee, principal officer, board member, or
    person having a financial or voting interest of 5% or
    greater in the licensee is delinquent in filing any
    required tax returns or paying any amounts owed to the
    State of Illinois.
 
    Section 40-25. Transporting organization requirements;
prohibitions.
    (a) The operating documents of a transporting organization
shall include procedures for the oversight of the transporter,
an inventory monitoring system including a physical inventory
recorded weekly, accurate recordkeeping, and a staffing plan.
    (b) A transporting organization may not transport cannabis
or cannabis-infused products to any person other than a
cultivation center, a craft grower, an infuser organization, a
dispensing organization, a testing facility, or as otherwise
authorized by rule.
    (c) All cannabis transported by a transporting
organization must be entered into a data collection system and
placed into a cannabis container for transport.
    (d) Transporters are subject to random inspections by the
Department of Agriculture, the Department of Public Health, and
the Department of State Police.
    (e) A transporting organization agent shall notify local
law enforcement, the Department of State Police, and the
Department of Agriculture within 24 hours of the discovery of
any loss or theft. Notification shall be made by phone, in
person, or by written or electronic communication.
    (f) No person under the age of 21 years shall be in a
commercial vehicle or trailer transporting cannabis goods.
    (g) No person or individual who is not a transporting
organization agent shall be in a vehicle while transporting
cannabis goods.
    (h) Transporters may not use commercial motor vehicles with
a weight rating of over 10,001 pounds.
    (i) It is unlawful for any person to offer or deliver
money, or anything else of value, directly or indirectly, to
any of the following persons to obtain preferential placement
within the dispensing organization, including, without
limitation, on shelves and in display cases where purchasers
can view products, or on the dispensing organization's website:
        (1) a person having a transporting organization
    license, or any officer, associate, member,
    representative, or agent of the licensee;
        (2) a person having an Early Applicant Adult Use
    Dispensing Organization License, an Adult Use Dispensing
    Organization License, or a medical cannabis dispensing
    organization license issued under the Compassionate Use of
    Medical Cannabis Pilot Program Act;
        (3) a person connected with or in any way representing,
    or a member of the family of, a person holding an Early
    Applicant Adult Use Dispensing Organization License, an
    Adult Use Dispensing Organization License, or a medical
    cannabis dispensing organization license issued under the
    Compassionate Use of Medical Cannabis Pilot Program Act; or
        (4) a stockholder, officer, manager, agent, or
    representative of a corporation engaged in the retail sale
    of cannabis, an Early Applicant Adult Use Dispensing
    Organization License, an Adult Use Dispensing Organization
    License, or a medical cannabis dispensing organization
    license issued under the Compassionate Use of Medical
    Cannabis Pilot Program Act.
    (j) A transportation organization agent must keep his or
her identification card visible at all times when on the
property of a cannabis business establishment and during the
transportation of cannabis when acting under his or her duties
as a transportation organization agent. During these times, the
transporter organization agent must also provide the
identification card upon request of any law enforcement officer
engaged in his or her official duties.
    (k) A copy of the transporting organization's registration
and a manifest for the delivery shall be present in any vehicle
transporting cannabis.
    (l) Cannabis shall be transported so it is not visible or
recognizable from outside the vehicle.
    (m) A vehicle transporting cannabis must not bear any
markings to indicate the vehicle contains cannabis or bear the
name or logo of the cannabis business establishment.
    (n) Cannabis must be transported in an enclosed, locked
storage compartment that is secured or affixed to the vehicle.
    (o) The Department of Agriculture may, by rule, impose any
other requirements or prohibitions on the transportation of
cannabis.
 
    Section 40-30. Transporting agent identification card.
    (a) The Department of Agriculture shall:
        (1) establish by rule the information required in an
    initial application or renewal application for an agent
    identification card submitted under this Act and the
    nonrefundable fee to accompany the initial application or
    renewal application;
        (2) verify the information contained in an initial
    application or renewal application for an agent
    identification card submitted under this Act and approve or
    deny an application within 30 days of receiving a completed
    initial application or renewal application and all
    supporting documentation required by rule;
        (3) issue an agent identification card to a qualifying
    agent within 15 business days of approving the initial
    application or renewal application;
        (4) enter the license number of the transporting
    organization where the agent works; and
        (5) allow for an electronic initial application and
    renewal application process, and provide a confirmation by
    electronic or other methods that an application has been
    submitted. The Department of Agriculture may by rule
    require prospective agents to file their applications by
    electronic means and provide notices to the agents by
    electronic means.
    (b) An agent must keep his or her identification card
visible at all times when on the property of a cannabis
business establishment, including the cannabis business
establishment for which he or she is an agent.
    (c) The agent identification cards shall contain the
following:
        (1) the name of the cardholder;
        (2) the date of issuance and expiration date of the
    identification card;
        (3) a random 10-digit alphanumeric identification
    number containing at least 4 numbers and at least 4 letters
    that is unique to the holder;
        (4) a photograph of the cardholder; and
        (5) the legal name of the transporter organization
    employing the agent.
    (d) An agent identification card shall be immediately
returned to the transporter organization of the agent upon
termination of his or her employment.
    (e) Any agent identification card lost by a transporting
agent shall be reported to the Department of State Police and
the Department of Agriculture immediately upon discovery of the
loss.
    (f) An application for an agent identification card shall
be denied if the applicant is delinquent in filing any required
tax returns or paying any amounts owed to the State of
Illinois.
 
    Section 40-35. Transporting organization background
checks.
    (a) Through the Department of State Police, the Department
of Agriculture shall conduct a background check of the
prospective principal officers, board members, and agents of a
transporter applying for a license or identification card under
this Act. The Department of State Police shall charge a fee set
by rule for conducting the criminal history record check, which
shall be deposited into the State Police Services Fund and
shall not exceed the actual cost of the record check. In order
to carry out this provision, each transporter organization's
prospective principal officer, board member, or agent shall
submit a full set of fingerprints to the Department of State
Police for the purpose of obtaining a State and federal
criminal records check. These fingerprints shall be checked
against the fingerprint records now and hereafter, to the
extent allowed by law, filed in the Department of State Police
and Federal Bureau of Investigation criminal history records
databases. The Department of State Police shall furnish,
following positive identification, all conviction information
to the Department of Agriculture.
    (b) When applying for the initial license or identification
card, the background checks for all prospective principal
officers, board members, and agents shall be completed before
submitting the application to the Department of Agriculture.
 
    Section 40-40. Renewal of transporting organization
licenses and agent identification cards.
    (a) Licenses and identification cards issued under this Act
shall be renewed annually. A transporting organization shall
receive written or electronic notice 90 days before the
expiration of its current license that the license will expire.
The Department of Agriculture shall grant a renewal within 45
days of submission of a renewal application if:
        (1) the transporting organization submits a renewal
    application and the required nonrefundable renewal fee of
    $10,000, or after January 1, 2021, another amount set by
    rule by the Department of Agriculture, to be deposited into
    the Cannabis Regulation Fund;
        (2) the Department of Agriculture has not suspended or
    revoked the license of the transporting organization for
    violating this Act or rules adopted under this Act;
        (3) the transporting organization has continued to
    operate in accordance with all plans submitted as part of
    its application and approved by the Department of
    Agriculture or any amendments thereto that have been
    approved by the Department of Agriculture; and
        (4) the transporter has submitted an agent, employee,
    contracting, and subcontracting diversity report as
    required by the Department.
    (b) If a transporting organization fails to renew its
license before expiration, it shall cease operations until its
license is renewed.
    (c) If a transporting organization agent fails to renew his
or her identification card before its expiration, he or she
shall cease to work as an agent of the transporter organization
until his or her identification card is renewed.
    (d) Any transporting organization that continues to
operate, or any transporting organization agent who continues
to work as an agent, after the applicable license or
identification card has expired without renewal is subject to
the penalties provided under Section 45-5.
    (e) The Department shall not renew a license or an agent
identification card if the applicant is delinquent in filing
any required tax returns or paying any amounts owed to the
State of Illinois.
 
ARTICLE 45.
ENFORCEMENT AND IMMUNITIES

 
    Section 45-5. License suspension; revocation; other
penalties.
    (a) Notwithstanding any other criminal penalties related
to the unlawful possession of cannabis, the Department of
Financial and Professional Regulation and the Department of
Agriculture may revoke, suspend, place on probation,
reprimand, issue cease and desist orders, refuse to issue or
renew a license, or take any other disciplinary or
nondisciplinary action as each department may deem proper with
regard to a cannabis business establishment or cannabis
business establishment agent, including fines not to exceed:
        (1) $50,000 for each violation of this Act or rules
    adopted under this Act by a cultivation center or
    cultivation center agent;
        (2) $10,000 for each violation of this Act or rules
    adopted under this Act by a dispensing organization or
    dispensing organization agent;
        (3) $15,000 for each violation of this Act or rules
    adopted under this Act by a craft grower or craft grower
    agent;
        (4) $10,000 for each violation of this Act or rules
    adopted under this Act by an infuser organization or
    infuser organization agent; and
        (5) $10,000 for each violation of this Act or rules
    adopted under this Act by a transporting organization or
    transporting organization agent.
    (b) The Department of Financial and Professional
Regulation and the Department of Agriculture, as the case may
be, shall consider licensee cooperation in any agency or other
investigation in its determination of penalties imposed under
this Section.
    (c) The procedures for disciplining a cannabis business
establishment or cannabis business establishment agent and for
administrative hearings shall be determined by rule, and shall
provide for the review of final decisions under the
Administrative Review Law.
    (d) The Attorney General may also enforce a violation of
Section 55-20, Section 55-21, and Section 15-155 as an unlawful
practice under the Consumer Fraud and Deceptive Business
Practices Act.
 
    Section 45-10. Immunities and presumptions related to the
handling of cannabis by cannabis business establishments and
their agents.
    (a) A cultivation center, craft grower, infuser
organization, or transporting organization is not subject to:
(i) prosecution; (ii) search or inspection, except by the
Department of Agriculture, the Department of Public Health, or
State or local law enforcement under this Act; (iii) seizure;
(iv) penalty in any manner, including, but not limited to,
civil penalty; (v) denial of any right or privilege; or (vi)
disciplinary action by a business licensing board or entity for
acting under this Act and rules adopted under this Act to
acquire, possess, cultivate, manufacture, process, deliver,
transfer, transport, supply, or sell cannabis or cannabis
paraphernalia under this Act.
    (b) A licensed cultivation center agent, licensed craft
grower agent, licensed infuser organization agent, or licensed
transporting organization agent is not subject to: (i)
prosecution; (ii) search; (iii) penalty in any manner,
including, but not limited to, civil penalty; (iv) denial of
any right or privilege; or (v) disciplinary action by a
business licensing board or entity, for engaging in
cannabis-related activities authorized under this Act and
rules adopted under this Act.
    (c) A dispensing organization is not subject to: (i)
prosecution; (ii) search or inspection, except by the
Department of Financial and Professional Regulation, or State
or local law enforcement under this Act; (iii) seizure; (iv)
penalty in any manner, including, but not limited to, civil
penalty; (v) denial of any right or privilege; or (vi)
disciplinary action by a business licensing board or entity,
for acting under this Act and rules adopted under this Act to
acquire, possess, or dispense cannabis, cannabis-infused
products, cannabis paraphernalia, or related supplies, and
educational materials under this Act.
    (d) A licensed dispensing organization agent is not subject
to: (i) prosecution; (ii) search; or (iii) penalty in any
manner, or denial of any right or privilege, including, but not
limited to, civil penalty or disciplinary action by a business
licensing board or entity, for working for a dispensing
organization under this Act and rules adopted under this Act.
    (e) Any cannabis, cannabis-infused product, cannabis
paraphernalia, legal property, or interest in legal property
that is possessed, owned, or used in connection with the use of
cannabis as allowed under this Act, or acts incidental to that
use, may not be seized or forfeited. This Act does not prevent
the seizure or forfeiture of cannabis exceeding the amounts
allowed under this Act, nor does it prevent seizure or
forfeiture if the basis for the action is unrelated to the
cannabis that is possessed, manufactured, transferred, or used
under this Act.
    (f) Nothing in this Act shall preclude local or State law
enforcement agencies from searching a cultivation center,
craft grower, infuser organization, transporting organization,
or dispensing organization if there is probable cause to
believe that the criminal laws of this State have been violated
and the search is conducted in conformity with the Illinois
Constitution, the Constitution of the United States, and
applicable law.
    (g) Nothing in this Act shall preclude the Attorney General
or other authorized government agency from investigating or
bringing a civil action against a cannabis business
establishment, or an agent thereof, for a violation of State
law, including, but not limited to, civil rights violations and
violations of the Consumer Fraud and Deceptive Business
Practices Act.
 
    Section 45-15. State standards and requirements. Any
standards, requirements, and rules regarding the health and
safety, environmental protection, testing, security, food
safety, and worker protections established by the State shall
be the minimum standards for all licensees under this Act
statewide, where applicable. Knowing violations of any State or
local law, ordinance, or rule conferring worker protections or
legal rights on the employees of a licensee may be grounds for
disciplinary action under this Act, in addition to penalties
established elsewhere.
 
    Section 45-20. Violation of tax Acts; refusal, revocation,
or suspension of license or agent identification card.
    (a) In addition to other grounds specified in this Act, the
Department of Agriculture and Department of Financial and
Professional Regulation, upon notification by the Department
of Revenue, shall refuse the issuance or renewal of a license
or agent identification card, or suspend or revoke the license
or agent identification card, of any person, for any of the
following violations of any tax Act administered by the
Department of Revenue:
        (1) Failure to file a tax return.
        (2) The filing of a fraudulent return.
        (3) Failure to pay all or part of any tax or penalty
    finally determined to be due.
        (4) Failure to keep books and records.
        (5) Failure to secure and display a certificate or
    sub-certificate of registration, if required.
        (6) Willful violation of any rule or regulation of the
    Department relating to the administration and enforcement
    of tax liability.
    (b) After all violations of any of items (1) through (6) of
subsection (a) have been corrected or resolved, the Department
shall, upon request of the applicant or, if not requested, may
notify the entities listed in subsection (a) that the
violations have been corrected or resolved. Upon receiving
notice from the Department that a violation of any of items (1)
through (6) of subsection (a) have been corrected or otherwise
resolved to the Department of Revenue's satisfaction, the
Department of Agriculture and the Department of Financial and
Professional Regulation may issue or renew the license or agent
identification card, or vacate an order of suspension or
revocation.
 
ARTICLE 50.
LABORATORY TESTING

 
    Section 50-5. Laboratory testing.
    (a) Notwithstanding any other provision of law, the
following acts, when performed by a cannabis testing facility
with a current, valid registration, or a person 21 years of age
or older who is acting in his or her capacity as an owner,
employee, or agent of a cannabis testing facility, are not
unlawful and shall not be an offense under Illinois law or be a
basis for seizure or forfeiture of assets under Illinois law:
        (1) possessing, repackaging, transporting, storing, or
    displaying cannabis or cannabis-infused products;
        (2) receiving or transporting cannabis or
    cannabis-infused products from a cannabis business
    establishment, a community college licensed under the
    Community College Cannabis Vocational Training Pilot
    Program, or a person 21 years of age or older; and
        (3) returning or transporting cannabis or
    cannabis-infused products to a cannabis business
    establishment, a community college licensed under the
    Community College Cannabis Vocational Training Pilot
    Program, or a person 21 years of age or older.
    (b)(1) No laboratory shall handle, test, or analyze
cannabis unless approved by the Department of Agriculture in
accordance with this Section.
    (2) No laboratory shall be approved to handle, test, or
analyze cannabis unless the laboratory:
        (A) is accredited by a private laboratory accrediting
    organization;
        (B) is independent from all other persons involved in
    the cannabis industry in Illinois and no person with a
    direct or indirect interest in the laboratory has a direct
    or indirect financial, management, or other interest in an
    Illinois cultivation center, craft grower, dispensary,
    infuser, transporter, certifying physician, or any other
    entity in the State that may benefit from the production,
    manufacture, dispensing, sale, purchase, or use of
    cannabis; and
        (C) has employed at least one person to oversee and be
    responsible for the laboratory testing who has earned, from
    a college or university accredited by a national or
    regional certifying authority, at least:
            (i) a master's level degree in chemical or
        biological sciences and a minimum of 2 years'
        post-degree laboratory experience; or
            (ii) a bachelor's degree in chemical or biological
        sciences and a minimum of 4 years' post-degree
        laboratory experience.
    (3) Each independent testing laboratory that claims to be
accredited must provide the Department of Agriculture with a
copy of the most recent annual inspection report granting
accreditation and every annual report thereafter.
    (c) Immediately before manufacturing or natural processing
of any cannabis or cannabis-infused product or packaging
cannabis for sale to a dispensary, each batch shall be made
available by the cultivation center, craft grower, or infuser
for an employee of an approved laboratory to select a random
sample, which shall be tested by the approved laboratory for:
        (1) microbiological contaminants;
        (2) mycotoxins;
        (3) pesticide active ingredients;
        (4) residual solvent; and
        (5) an active ingredient analysis.
    (d) The Department of Agriculture may select a random
sample that shall, for the purposes of conducting an active
ingredient analysis, be tested by the Department of Agriculture
for verification of label information.
    (e) A laboratory shall immediately return or dispose of any
cannabis upon the completion of any testing, use, or research.
If cannabis is disposed of, it shall be done in compliance with
Department of Agriculture rule.
    (f) If a sample of cannabis does not pass the
microbiological, mycotoxin, pesticide chemical residue, or
solvent residue test, based on the standards established by the
Department of Agriculture, the following shall apply:
        (1) If the sample failed the pesticide chemical residue
    test, the entire batch from which the sample was taken
    shall, if applicable, be recalled as provided by rule.
        (2) If the sample failed any other test, the batch may
    be used to make a CO2-based or solvent based extract. After
    processing, the CO2-based or solvent based extract must
    still pass all required tests.
    (g) The Department of Agriculture shall establish
standards for microbial, mycotoxin, pesticide residue, solvent
residue, or other standards for the presence of possible
contaminants, in addition to labeling requirements for
contents and potency.
    (h) The laboratory shall file with the Department of
Agriculture an electronic copy of each laboratory test result
for any batch that does not pass the microbiological,
mycotoxin, or pesticide chemical residue test, at the same time
that it transmits those results to the cultivation center. In
addition, the laboratory shall maintain the laboratory test
results for at least 5 years and make them available at the
Department of Agriculture's request.
    (i) A cultivation center, craft grower, and infuser shall
provide to a dispensing organization the laboratory test
results for each batch of cannabis product purchased by the
dispensing organization, if sampled. Each dispensary
organization must have those laboratory results available upon
request to purchasers.
    (j) The Department of Agriculture may adopt rules related
to testing in furtherance of this Act.
 
ARTICLE 55.
GENERAL PROVISIONS

 
    Section 55-5. Preparation of cannabis-infused products.
    (a) The Department of Agriculture may regulate the
production of cannabis-infused products by a cultivation
center, a craft grower, an infuser organization, or a
dispensing organization and establish rules related to
refrigeration, hot-holding, and handling of cannabis-infused
products. All cannabis-infused products shall meet the
packaging and labeling requirements contained in Section
55-21.
    (b) Cannabis-infused products for sale or distribution at a
dispensing organization must be prepared by an approved agent
of a cultivation center or infuser organization.
    (c) A cultivation center or infuser organization that
prepares cannabis-infused products for sale or distribution by
a dispensing organization shall be under the operational
supervision of a Department of Public Health certified food
service sanitation manager.
    (d) Dispensing organizations may not manufacture, process,
or produce cannabis-infused products.
    (e) The Department of Public Health shall adopt and enforce
rules for the manufacture and processing of cannabis-infused
products, and for that purpose it may at all times enter every
building, room, basement, enclosure, or premises occupied or
used, or suspected of being occupied or used, for the
production, preparation, manufacture for sale, storage, sale,
processing, distribution, or transportation of
cannabis-infused products, and to inspect the premises
together with all utensils, fixtures, furniture, and machinery
used for the preparation of these products.
    (f) The Department of Agriculture shall by rule establish a
maximum level of THC that may be contained in each serving of
cannabis-infused product, and within the product package.
    (g) If a local public health agency has a reasonable belief
that a cannabis-infused product poses a public health hazard,
it may refer the cultivation center, craft grower, or infuser
that manufactured or processed the cannabis-infused product to
the Department of Public Health. If the Department of Public
Health finds that a cannabis-infused product poses a health
hazard, it may bring an action for immediate injunctive relief
to require that action be taken as the court may deem necessary
to meet the hazard of the cultivation facility or seek other
relief as provided by rule.
 
    Section 55-10. Maintenance of inventory. All dispensing
organizations authorized to serve both registered qualifying
patients and caregivers and purchasers are required to report
which cannabis and cannabis-infused products are purchased for
sale under the Compassionate Use of Medical Cannabis Pilot
Program Act, and which cannabis and cannabis-infused products
are purchased under this Act. Nothing in this Section prohibits
a registered qualifying patient under the Compassionate Use of
Medical Cannabis Pilot Program Act from purchasing cannabis as
a purchaser under this Act.
 
    Section 55-15. Destruction of cannabis.
    (a) All cannabis byproduct, scrap, and harvested cannabis
not intended for distribution to a dispensing organization must
be destroyed and disposed of under rules adopted by the
Department of Agriculture under this Act. Documentation of
destruction and disposal shall be retained at the cultivation
center, craft grower, infuser organization, transporter, or
testing facility as applicable for a period of not less than 5
years.
    (b) A cultivation center, craft grower, or infuser
organization shall, before destruction, notify the Department
of Agriculture and the Department of State Police. A dispensing
organization shall, before destruction, notify the Department
of Financial and Professional Regulation and the Department of
State Police. The Department of Agriculture may by rule require
that an employee of the Department of Agriculture or the
Department of Financial and Professional Regulation be present
during the destruction of any cannabis byproduct, scrap, and
harvested cannabis, as applicable.
    (c) The cultivation center, craft grower, infuser
organization, or dispensing organization shall keep a record of
the date of destruction and how much was destroyed.
    (d) A dispensing organization shall destroy all cannabis,
including cannabis-infused products, not sold to purchasers.
Documentation of destruction and disposal shall be retained at
the dispensing organization for a period of not less than 5
years.
 
    Section 55-20. Advertising and promotions.
    (a) No cannabis business establishment nor any other person
or entity shall engage in advertising that contains any
statement or illustration that:
        (1) is false or misleading;
        (2) promotes overconsumption of cannabis or cannabis
    products;
        (3) depicts the actual consumption of cannabis or
    cannabis products;
        (4) depicts a person under 21 years of age consuming
    cannabis;
        (5) makes any health, medicinal, or therapeutic claims
    about cannabis or cannabis-infused products;
        (6) includes the image of a cannabis leaf or bud; or
        (7) includes any image designed or likely to appeal to
    minors, including cartoons, toys, animals, or children, or
    any other likeness to images, characters, or phrases that
    is designed in any manner to be appealing to or encourage
    consumption of persons under 21 years of age.
    (b) No cannabis business establishment nor any other person
or entity shall place or maintain, or cause to be placed or
maintained, an advertisement of cannabis or a cannabis-infused
product in any form or through any medium:
        (1) within 1,000 feet of the perimeter of school
    grounds, a playground, a recreation center or facility, a
    child care center, a public park or public library, or a
    game arcade to which admission is not restricted to persons
    21 years of age or older;
        (2) on or in a public transit vehicle or public transit
    shelter;
        (3) on or in publicly owned or publicly operated
    property; or
        (4) that contains information that:
            (A) is false or misleading;
            (B) promotes excessive consumption;
            (C) depicts a person under 21 years of age
        consuming cannabis;
            (D) includes the image of a cannabis leaf; or
            (E) includes any image designed or likely to appeal
        to minors, including cartoons, toys, animals, or
        children, or any other likeness to images, characters,
        or phrases that are popularly used to advertise to
        children, or any imitation of candy packaging or
        labeling, or that promotes consumption of cannabis.
    (c) Subsections (a) and (b) do not apply to an educational
message.
    (d) Sales promotions. No cannabis business establishment
nor any other person or entity may encourage the sale of
cannabis or cannabis products by giving away cannabis or
cannabis products, by conducting games or competitions related
to the consumption of cannabis or cannabis products, or by
providing promotional materials or activities of a manner or
type that would be appealing to children.
 
    Section 55-21. Cannabis product packaging and labeling.
    (a) Each cannabis product produced for sale shall be
registered with the Department of Agriculture on forms provided
by the Department of Agriculture. Each product registration
shall include a label and the required registration fee at the
rate established by the Department of Agriculture for a
comparable medical cannabis product, or as established by rule.
The registration fee is for the name of the product offered for
sale and one fee shall be sufficient for all package sizes.
    (b) All harvested cannabis intended for distribution to a
cannabis enterprise must be packaged in a sealed, labeled
container.
    (c) Any product containing cannabis shall be packaged in a
sealed, odor-proof, and child-resistant cannabis container
consistent with current standards, including the Consumer
Product Safety Commission standards referenced by the Poison
Prevention Act.
    (d) All cannabis-infused products shall be individually
wrapped or packaged at the original point of preparation. The
packaging of the cannabis-infused product shall conform to the
labeling requirements of the Illinois Food, Drug and Cosmetic
Act, in addition to the other requirements set forth in this
Section.
    (e) Each cannabis product shall be labeled before sale and
each label shall be securely affixed to the package and shall
state in legible English and any languages required by the
Department of Agriculture:
        (1) The name and post office box of the registered
    cultivation center or craft grower where the item was
    manufactured;
        (2) The common or usual name of the item and the
    registered name of the cannabis product that was registered
    with the Department of Agriculture under subsection (a);
        (3) A unique serial number that will match the product
    with a cultivation center or craft grower batch and lot
    number to facilitate any warnings or recalls the Department
    of Agriculture, cultivation center, or craft grower deems
    appropriate;
        (4) The date of final testing and packaging, if
    sampled, and the identification of the independent testing
    laboratory;
        (5) The date of harvest and "use by" date;
        (6) The quantity (in ounces or grams) of cannabis
    contained in the product;
        (7) A pass/fail rating based on the laboratory's
    microbiological, mycotoxins, and pesticide and solvent
    residue analyses, if sampled.
        (8) Content list.
            (A) A list of the following, including the minimum
        and maximum percentage content by weight for
        subdivisions (d)(8)(A)(i) through (iv):
                (i) delta-9-tetrahydrocannabinol (THC);
                (ii) tetrahydrocannabinolic acid (THCA);
                (iii) cannabidiol (CBD);
                (iv) cannabidiolic acid (CBDA); and
                (v) all other ingredients of the item,
            including any colors, artificial flavors, and
            preservatives, listed in descending order by
            predominance of weight shown with common or usual
            names.
            (B) The acceptable tolerances for the minimum
        percentage printed on the label for any of subdivisions
        (d)(8)(A)(i) through (iv) shall not be below 85% or
        above 115% of the labeled amount;
    (f) Packaging must not contain information that:
        (1) is false or misleading;
        (2) promotes excessive consumption;
        (3) depicts a person under 21 years of age consuming
    cannabis;
        (4) includes the image of a cannabis leaf;
        (5) includes any image designed or likely to appeal to
    minors, including cartoons, toys, animals, or children, or
    any other likeness to images, characters, or phrases that
    are popularly used to advertise to children, or any
    packaging or labeling that bears reasonable resemblance to
    any product available for consumption as a commercially
    available candy, or that promotes consumption of cannabis;
        (6) contains any seal, flag, crest, coat of arms, or
    other insignia likely to mislead the purchaser to believe
    that the product has been endorsed, made, or used by the
    State of Illinois or any of its representatives except
    where authorized by this Act.
    (g) Cannabis products produced by concentrating or
extracting ingredients from the cannabis plant shall contain
the following information, where applicable:
        (1) If solvents were used to create the concentrate or
    extract, a statement that discloses the type of extraction
    method, including any solvents or gases used to create the
    concentrate or extract; and
        (2) Any other chemicals or compounds used to produce or
    were added to the concentrate or extract.
    (h) All cannabis products must contain warning statements
established for purchasers, of a size that is legible and
readily visible to a consumer inspecting a package, which may
not be covered or obscured in any way. The Department of Public
Health shall define and update appropriate health warnings for
packages including specific labeling or warning requirements
for specific cannabis products.
    (i) Unless modified by rule to strengthen or respond to new
evidence and science, the following warnings shall apply to all
cannabis products unless modified by rule: "This product
contains cannabis and is intended for use by adults 21 and
over. Its use can impair cognition and may be habit forming.
This product should not be used by pregnant or breastfeeding
women. It is unlawful to sell or provide this item to any
individual, and it may not be transported outside the State of
Illinois. It is illegal to operate a motor vehicle while under
the influence of cannabis. Possession or use of this product
may carry significant legal penalties in some jurisdictions and
under federal law.".
    (j) Warnings for each of the following product types must
be present on labels when offered for sale to a purchaser:
        (1) Cannabis that may be smoked must contain a
    statement that "Smoking is hazardous to your health.".
        (2) Cannabis-infused products (other than those
    intended for topical application) must contain a statement
    "CAUTION: This product contains cannabis, and intoxication
    following use may be delayed 2 or more hours. This product
    was produced in a facility that cultivates cannabis, and
    that may also process common food allergens.".
        (3) Cannabis-infused products intended for topical
    application must contain a statement "DO NOT EAT" in bold,
    capital letters.
    (k) Each cannabis-infused product intended for consumption
must be individually packaged, must include the total milligram
content of THC and CBD, and may not include more than a total
of 100 milligrams of THC per package. A package may contain
multiple servings of 10 milligrams of THC, and indicated by
scoring, wrapping, or by other indicators designating
individual serving sizes. The Department of Agriculture may
change the total amount of THC allowed for each package, or the
total amount of THC allowed for each serving size, by rule.
    (l) No individual other than the purchaser may alter or
destroy any labeling affixed to the primary packaging of
cannabis or cannabis-infused products.
    (m) For each commercial weighing and measuring device used
at a facility, the cultivation center or craft grower must:
        (1) Ensure that the commercial device is licensed under
    the Weights and Measures Act and the associated
    administrative rules (8 Ill. Adm. Code 600);
        (2) Maintain documentation of the licensure of the
    commercial device; and
        (3) Provide a copy of the license of the commercial
    device to the Department of Agriculture for review upon
    request.
    (n) It is the responsibility of the Department to ensure
that packaging and labeling requirements, including product
warnings, are enforced at all times for products provided to
purchasers. Product registration requirements and container
requirements may be modified by rule by the Department of
Agriculture.
    (o) Labeling, including warning labels, may be modified by
rule by the Department of Agriculture.
 
    Section 55-25. Local ordinances. Unless otherwise provided
under this Act or otherwise in accordance with State law:
        (1) A unit of local government, including a home rule
    unit or any non-home rule county within the unincorporated
    territory of the county, may enact reasonable zoning
    ordinances or resolutions, not in conflict with this Act or
    rules adopted pursuant to this Act, regulating cannabis
    business establishments. No unit of local government,
    including a home rule unit or any non-home rule county
    within the unincorporated territory of the county, may
    prohibit home cultivation or unreasonably prohibit use of
    cannabis authorized by this Act.
        (2) A unit of local government, including a home rule
    unit or any non-home rule county within the unincorporated
    territory of the county, may enact ordinances or rules not
    in conflict with this Act or with rules adopted pursuant to
    this Act governing the time, place, manner, and number of
    cannabis business establishment operations, including
    minimum distance limitations between cannabis business
    establishments and locations it deems sensitive, including
    colleges and universities, through the use of conditional
    use permits. A unit of local government, including a home
    rule unit, may establish civil penalties for violation of
    an ordinance or rules governing the time, place, and manner
    of operation of a cannabis business establishment or a
    conditional use permit in the jurisdiction of the unit of
    local government. No unit of local government, including a
    home rule unit or non-home rule county within an
    unincorporated territory of the county, may unreasonably
    restrict the time, place, manner, and number of cannabis
    business establishment operations authorized by this Act.
        (3) A unit of local government, including a home rule
    unit, or any non-home rule county within the unincorporated
    territory of the county may regulate the on-premises
    consumption of cannabis at or in a cannabis business
    establishment within its jurisdiction in a manner
    consistent with this Act. A cannabis business
    establishment or other entity authorized or permitted by a
    unit of local government to allow on-site consumption shall
    not be deemed a public place within the meaning of the
    Smoke Free Illinois Act.
        (4) A unit of local government, including a home rule
    unit or any non-home rule county within the unincorporated
    territory of the county, may not regulate the activities
    described in paragraph (1), (2), or (3) in a manner more
    restrictive than the regulation of those activities by the
    State under this Act. This Section is a limitation under
    subsection (i) of Section 6 of Article VII of the Illinois
    Constitution on the concurrent exercise by home rule units
    of powers and functions exercised by the State.
        (5) A unit of local government, including a home rule
    unit or any non-home rule county within the unincorporated
    territory of the county, may enact ordinances to prohibit
    or significantly limit a cannabis business establishment's
    location.
 
    Section 55-28. Restricted cannabis zones.
    (a) As used in this Section:
    "Legal voter" means a person:
        (1) who is duly registered to vote in a municipality
    with a population of over 500,000;
        (2) whose name appears on a poll list compiled by the
    city board of election commissioners since the last
    preceding election, regardless of whether the election was
    a primary, general, or special election;
        (3) who, at the relevant time, is a resident of the
    address at which he or she is registered to vote; and
        (4) whose address, at the relevant time, is located in
    the precinct where such person seeks to circulate or sign a
    petition under this Section.
    As used in the definition of "legal voter", "relevant time"
means any time that:
        (i) a notice of intent is filed, pursuant to subsection
    (c) of this Section, to initiate the petition process under
    this Section;
        (ii) the petition is circulated for signature in the
    applicable precinct; or
        (iii) the petition is signed by registered voters in
    the applicable precinct.
    "Petition" means the petition described in this Section.
    "Precinct" means the smallest constituent territory within
a municipality with a population of over 500,000 in which
electors vote as a unit at the same polling place in any
election governed by the Election Code.
    "Restricted cannabis zone" means a precinct within which
home cultivation, one or more types of cannabis business
establishments, or both has been prohibited pursuant to an
ordinance initiated by a petition under this Section.
    (b) The legal voters of any precinct within a municipality
with a population of over 500,000 may petition their local
alderman, using a petition form made available online by the
city clerk, to introduce an ordinance establishing the precinct
as a restricted zone. Such petition shall specify whether it
seeks an ordinance to prohibit, within the precinct: (i) home
cultivation; (ii) one or more types of cannabis business
establishments; or (iii) home cultivation and one or more types
of cannabis business establishments.
    Upon receiving a petition containing the signatures of at
least 25% of the registered voters of the precinct, and
concluding that the petition is legally sufficient following
the posting and review process in subsection (c) of this
Section, the city clerk shall notify the local alderman of the
ward in which the precinct is located. Upon being notified,
that alderman, following an assessment of relevant factors
within the precinct, including but not limited to, its
geography, density and character, the prevalence of
residentially zoned property, current licensed cannabis
business establishments in the precinct, the current amount of
home cultivation in the precinct, and the prevailing viewpoint
with regard to the issue raised in the petition, may introduce
an ordinance to the municipality's governing body creating a
restricted cannabis zone in that precinct.
    (c) A person seeking to initiate the petition process
described in this Section shall first submit to the city clerk
notice of intent to do so, on a form made available online by
the city clerk. That notice shall include a description of the
potentially affected area and the scope of the restriction
sought. The city clerk shall publicly post the submitted notice
online.
    To be legally sufficient, a petition must contain the
requisite number of valid signatures and all such signatures
must be obtained within 90 days of the date that the city clerk
publicly posts the notice of intent. Upon receipt, the city
clerk shall post the petition on the municipality's website for
a 30-day comment period. The city clerk is authorized to take
all necessary and appropriate steps to verify the legal
sufficiency of a submitted petition. Following the petition
review and comment period, the city clerk shall publicly post
online the status of the petition as accepted or rejected, and
if rejected, the reasons therefor. If the city clerk rejects a
petition as legally insufficient, a minimum of 12 months must
elapse from the time the city clerk posts the rejection notice
before a new notice of intent for that same precinct may be
submitted.
    (d) Notwithstanding any law to the contrary, the
municipality may enact an ordinance creating a restricted
cannabis zone. The ordinance shall:
        (1) identify the applicable precinct boundaries as of
    the date of the petition;
        (2) state whether the ordinance prohibits within the
    defined boundaries of the precinct, and in what
    combination: (A) one or more types of cannabis business
    establishments; or (B) home cultivation;
        (3) be in effect for 4 years, unless repealed earlier;
    and
        (4) once in effect, be subject to renewal by ordinance
    at the expiration of the 4-year period without the need for
    another supporting petition.
 
    Section 55-30. Confidentiality.
    (a) Information provided by the cannabis business
establishment licensees or applicants to the Department of
Agriculture, the Department of Public Health, the Department of
Financial and Professional Regulation, the Department of
Commerce and Economic Opportunity, or other agency shall be
limited to information necessary for the purposes of
administering this Act. The information is subject to the
provisions and limitations contained in the Freedom of
Information Act and may be disclosed in accordance with Section
55-65.
    (b) The following information received and records kept by
the Department of Agriculture, the Department of Public Health,
the Department of State Police, and the Department of Financial
and Professional Regulation for purposes of administering this
Article are subject to all applicable federal privacy laws, are
confidential and exempt from disclosure under the Freedom of
Information Act, except as provided in this Act, and not
subject to disclosure to any individual or public or private
entity, except to the Department of Financial and Professional
Regulation, the Department of Agriculture, the Department of
Public Health, and the Department of State Police as necessary
to perform official duties under this Article. The following
information received and kept by the Department of Financial
and Professional Regulation or the Department of Agriculture,
excluding any existing or non-existing Illinois or national
criminal history record information, may be disclosed to the
Department of Public Health, the Department of Agriculture, the
Department of Revenue, or the Department of State Police upon
request:
        (1) Applications and renewals, their contents, and
    supporting information submitted by or on behalf of
    dispensing organizations in compliance with this Article,
    including their physical addresses;
        (2) Any plans, procedures, policies, or other records
    relating to dispensing organization security;
        (3) Information otherwise exempt from disclosure by
    State or federal law.
    (c) The name and address of a dispensing organization
licensed under this Act shall be subject to disclosure under
the Freedom of Information Act. The name and cannabis business
establishment address of the person or entity holding each
cannabis business establishment license shall be subject to
disclosure.
    (d) All information collected by the Department of
Financial and Professional Regulation in the course of an
examination, inspection, or investigation of a licensee or
applicant, including, but not limited to, any complaint against
a licensee or applicant filed with the Department and
information collected to investigate any such complaint, shall
be maintained for the confidential use of the Department and
shall not be disclosed, except as otherwise provided in the
Act. A formal complaint against a licensee by the Department or
any disciplinary order issued by the Department against a
licensee or applicant shall be a public record, except as
otherwise prohibited by law, as required by law, or as
necessary to enforce the provisions of this Act. Complaints
from consumers or members of the general public received
regarding a specific, named licensee or complaints regarding
conduct by unlicensed entities shall be subject to disclosure
under the Freedom of Information Act
    (e) The Department of Agriculture, the Department of State
Police, and the Department of Financial and Professional
Regulation shall not share or disclose any existing or
non-existing Illinois or national criminal history record
information to any person or entity not expressly authorized by
this Act. As used in this Section, "any existing or
non-existing Illinois or national criminal history record
information" means any Illinois or national criminal history
record information, including but not limited to the lack of or
non-existence of these records.
    (f) Each Department responsible for licensure under this
Act shall publish on the Department's website a list of the
ownership information of cannabis business establishment
licensees under the Department's jurisdiction. The list shall
include, but is not limited to: the name of the person or
entity holding each cannabis business establishment license;
and the address at which the entity is operating under this
Act. This list shall be published and updated monthly.
 
    Section 55-35. Administrative rulemaking.
    (a) No later than 180 days after the effective date of this
Act, the Department of Agriculture, the Department of State
Police, the Department of Financial and Professional
Regulation, the Department of Revenue, the Department of
Commerce and Economic Opportunity, and the Treasurer's Office
shall adopt permanent rules in accordance with their
responsibilities under this Act. The Department of
Agriculture, the Department of State Police, the Department of
Financial and Professional Regulation, the Department of
Revenue, and the Department of Commerce and Economic
Opportunity may adopt rules necessary to regulate personal
cannabis use through the use of emergency rulemaking in
accordance with subsection (gg) of Section 5-45 of the Illinois
Administrative Procedure Act. The General Assembly finds that
the adoption of rules to regulate cannabis use is deemed an
emergency and necessary for the public interest, safety, and
welfare.
    (b) The Department of Agriculture rules may address, but
are not limited to, the following matters related to
cultivation centers, craft growers, infuser organizations, and
transporting organizations with the goal of protecting against
diversion and theft, without imposing an undue burden on the
cultivation centers, craft growers, infuser organizations, or
transporting organizations:
        (1) oversight requirements for cultivation centers,
    craft growers, infuser organizations, and transporting
    organizations;
        (2) recordkeeping requirements for cultivation
    centers, craft growers, infuser organizations, and
    transporting organizations;
        (3) security requirements for cultivation centers,
    craft growers, infuser organizations, and transporting
    organizations, which shall include that each cultivation
    center, craft grower, infuser organization, and
    transporting organization location must be protected by a
    fully operational security alarm system;
        (4) standards for enclosed, locked facilities under
    this Act;
        (5) procedures for suspending or revoking the
    identification cards of agents of cultivation centers,
    craft growers, infuser organizations, and transporting
    organizations that commit violations of this Act or the
    rules adopted under this Section;
        (6) rules concerning the intrastate transportation of
    cannabis from a cultivation center, craft grower, infuser
    organization, and transporting organization to a
    dispensing organization;
        (7) standards concerning the testing, quality,
    cultivation, and processing of cannabis; and
        (8) any other matters under oversight by the Department
    of Agriculture as are necessary for the fair, impartial,
    stringent, and comprehensive administration of this Act.
    (c) The Department of Financial and Professional
Regulation rules may address, but are not limited to, the
following matters related to dispensing organizations, with
the goal of protecting against diversion and theft, without
imposing an undue burden on the dispensing organizations:
        (1) oversight requirements for dispensing
    organizations;
        (2) recordkeeping requirements for dispensing
    organizations;
        (3) security requirements for dispensing
    organizations, which shall include that each dispensing
    organization location must be protected by a fully
    operational security alarm system;
        (4) procedures for suspending or revoking the licenses
    of dispensing organization agents that commit violations
    of this Act or the rules adopted under this Act;
        (5) any other matters under oversight by the Department
    of Financial and Professional Regulation that are
    necessary for the fair, impartial, stringent, and
    comprehensive administration of this Act.
    (d) The Department of Revenue rules may address, but are
not limited to, the following matters related to the payment of
taxes by cannabis business establishments:
        (1) recording of sales;
        (2) documentation of taxable income and expenses;
        (3) transfer of funds for the payment of taxes; or
        (4) any other matter under the oversight of the
    Department of Revenue.
    (e) The Department of Commerce and Economic Opportunity
rules may address, but are not limited to, a loan program or
grant program to assist Social Equity Applicants access the
capital needed to start a cannabis business establishment. The
names of recipients and the amounts of any moneys received
through a loan program or grant program shall be a public
record.
    (f) The Department of State Police rules may address
enforcement of its authority under this Act. The Department of
State Police shall not make rules that infringe on the
exclusive authority of the Department of Financial and
Professional Regulation or the Department of Agriculture over
licensees under this Act.
    (g) The Department of Public Health shall develop and
disseminate:
        (1) educational information about the health risks
    associated with the use of cannabis; and
        (2) one or more public education campaigns in
    coordination with local health departments and community
    organizations, including one or more prevention campaigns
    directed at children, adolescents, parents, and pregnant
    or breastfeeding women, to inform them of the potential
    health risks associated with intentional or unintentional
    cannabis use.
 
    Section 55-40. Enforcement.
    (a) If the Department of Agriculture, Department of State
Police, Department of Financial and Professional Regulation,
Department of Commerce and Economic Opportunity, or Department
of Revenue fails to adopt rules to implement this Act within
the times provided in this Act, any citizen may commence a
mandamus action in the circuit court to compel the agencies to
perform the actions mandated under Section 55-35.
    (b) If the Department of Agriculture or the Department of
Financial and Professional Regulation fails to issue a valid
agent identification card in response to a valid initial
application or renewal application submitted under this Act or
fails to issue a verbal or written notice of denial of the
application within 30 days of its submission, the agent
identification card is deemed granted and a copy of the agent
identification initial application or renewal application
shall be deemed a valid agent identification card.
    (c) Authorized employees of State or local law enforcement
agencies shall immediately notify the Department of
Agriculture and the Department of Financial and Professional
Regulation when any person in possession of an agent
identification card has been convicted of or pled guilty to
violating this Act.
 
    Section 55-45. Administrative hearings.
    (a) Administrative hearings related to the duties and
responsibilities assigned to the Department of Public Health
shall be conducted under the Department of Public Health's
rules governing administrative hearings.
    (b) Administrative hearings related to the duties and
responsibilities assigned to the Department of Financial and
Professional Regulation and dispensing organization agents
shall be conducted under the Department of Financial and
Professional Regulation's rules governing administrative
hearings.
    (c) Administrative hearings related to the duties and
responsibilities assigned to the Department of Agriculture,
cultivation centers, or cultivation center agents shall be
conducted under the Department of Agriculture's rules
governing administrative hearings.
 
    Section 55-50. Petition for rehearing. Within 20 days after
the service of any order or decision of the Department of
Public Health, the Department of Agriculture, the Department of
Financial and Professional Regulation, or the Department of
State Police upon any party to the proceeding, the party may
apply for a rehearing in respect to any matters determined by
them under this Act, except for decisions made under the
Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser
Excise Tax Law, the County Cannabis Retailers' Occupation Tax
Law, and the Municipal Cannabis Retailers' Occupation Tax Law,
which shall be governed by the provisions of those Laws. If a
rehearing is granted, an agency shall hold the rehearing and
render a decision within 30 days from the filing of the
application for rehearing with the agency. The time for holding
such rehearing and rendering a decision may be extended for a
period not to exceed 30 days, for good cause shown, and by
notice in writing to all parties of interest. If an agency
fails to act on the application for rehearing within 30 days,
or the date the time for rendering a decision was extended for
good cause shown, the order or decision of the agency is final.
No action for the judicial review of any order or decision of
an agency shall be allowed unless the party commencing such
action has first filed an application for a rehearing and the
agency has acted or failed to act upon the application. Only
one rehearing may be granted by an agency on application of any
one party.
 
    Section 55-55. Review of administrative decisions. All
final administrative decisions of the Department of Public
Health, the Department of Agriculture, the Department of
Financial and Professional Regulation, and the Department of
State Police are subject to judicial review under the
Administrative Review Law and the rules adopted under that Law.
The term "administrative decision" is defined as in Section
3-101 of the Code of Civil Procedure.
 
    Section 55-60. Suspension or revocation of a license.
    (a) The Department of Financial and Professional
Regulation or the Department of Agriculture may suspend or
revoke a license for a violation of this Act or a rule adopted
in accordance with this Act by the Department of Agriculture
and the Department of Financial and Professional Regulation.
    (b) The Department of Agriculture and the Department of
Financial and Professional Regulation may suspend or revoke an
agent identification card for a violation of this Act or a rule
adopted in accordance with this Act.
 
    Section 55-65. Financial institutions.
    (a) A financial institution that provides financial
services customarily provided by financial institutions to a
cannabis business establishment authorized under this Act or
the Compassionate Use of Medical Cannabis Pilot Program Act, or
to a person that is affiliated with such cannabis business
establishment, is exempt from any criminal law of this State as
it relates to cannabis-related conduct authorized under State
law.
    (b) Upon request of a financial institution, a cannabis
business establishment or proposed cannabis business
establishment may provide to the financial institution the
following information:
        (1) Whether a cannabis business establishment with
    which the financial institution is doing or is considering
    doing business holds a license under this Act or the
    Compassionate Use of Medical Cannabis Pilot Program Act;
        (2) The name of any other business or individual
    affiliate with the cannabis business establishment;
        (3) A copy of the application, and any supporting
    documentation submitted with the application, for a
    license or a permit submitted on behalf of the proposed
    cannabis business establishment;
        (4) If applicable, data relating to sales and the
    volume of product sold by the cannabis business
    establishment;
        (5) Any past or pending violation by the person of this
    Act, the Compassionate Use of Medical Cannabis Pilot
    Program Act, or the rules adopted under these Acts where
    applicable; and
        (6) Any penalty imposed upon the person for violating
    this Act, the Compassionate Use of Medical Cannabis Pilot
    Program Act, or the rules adopted under these Acts.
    (c) (Blank).
    (d) (Blank).
    (e) Information received by a financial institution under
this Section is confidential. Except as otherwise required or
permitted by this Act, State law or rule, or federal law or
regulation, a financial institution may not make the
information available to any person other than:
        (1) the customer to whom the information applies;
        (2) a trustee, conservator, guardian, personal
    representative, or agent of the customer to whom the
    information applies; a federal or State regulator when
    requested in connection with an examination of the
    financial institution or if otherwise necessary for
    complying with federal or State law;
        (3) a federal or State regulator when requested in
    connection with an examination of the financial
    institution or if otherwise necessary for complying with
    federal or State law; and
        (4) a third party performing services for the financial
    institution, provided the third party is performing such
    services under a written agreement that expressly or by
    operation of law prohibits the third party's sharing and
    use of such confidential information for any purpose other
    than as provided in its agreement to provide services to
    the financial institution.
 
    Section 55-75. Contracts enforceable. It is the public
policy of this State that contracts related to the operation of
a lawful cannabis business establishment under this Act are
enforceable. It is the public policy of this State that no
contract entered into by a lawful cannabis business
establishment or its agents on behalf of a cannabis business
establishment, or by those who allow property to be used by a
cannabis business establishment, shall be unenforceable on the
basis that cultivating, obtaining, manufacturing, processing,
distributing, dispensing, transporting, selling, possessing,
or using cannabis or hemp is prohibited by federal law.
 
    Section 55-80. Annual reports.
    (a) The Department of Financial and Professional
Regulation shall submit to the General Assembly and Governor a
report, by September 30 of each year, that does not disclose
any information identifying information about cultivation
centers, craft growers, infuser organizations, transporting
organizations, or dispensing organizations, but does contain,
at a minimum, all of the following information for the previous
fiscal year:
        (1) The number of licenses issued to dispensing
    organizations by county, or, in counties with greater than
    3,000,000 residents, by zip code;
        (2) The total number of dispensing organization owners
    that are Social Equity Applicants or minority persons,
    women, or persons with disabilities as those terms are
    defined in the Business Enterprise for Minorities, Women,
    and Persons with Disabilities Act;
        (3) The total number of revenues received from
    dispensing organizations, segregated from revenues
    received from dispensing organizations under the
    Compassionate Use of Medical Cannabis Pilot Program Act by
    county, separated by source of revenue;
        (4) The total amount of revenue received from
    dispensing organizations that share a premises or majority
    ownership with a craft grower;
        (5) The total amount of revenue received from
    dispensing organizations that share a premises or majority
    ownership with an infuser; and
        (6) An analysis of revenue generated from taxation,
    licensing, and other fees for the State, including
    recommendations to change the tax rate applied.
    (b) The Department of Agriculture shall submit to the
General Assembly and Governor a report, by September 30 of each
year, that does not disclose any information identifying
information about cultivation centers, craft growers, infuser
organizations, transporting organizations, or dispensing
organizations, but does contain, at a minimum, all of the
following information for the previous fiscal year:
        (1) The number of licenses issued to cultivation
    centers, craft growers, infusers, and transporters by
    license type, and, in counties with more than 3,000,000
    residents, by zip code;
        (2) The total number of cultivation centers, craft
    growers, infusers, and transporters by license type that
    are Social Equity Applicants or minority persons, women, or
    persons with disabilities as those terms are defined in the
    Business Enterprise for Minorities, Women, and Persons
    with Disabilities Act;
        (3) The total amount of revenue received from
    cultivation centers, craft growers, infusers, and
    transporters, separated by license types and source of
    revenue;
        (4) The total amount of revenue received from craft
    growers and infusers that share a premises or majority
    ownership with a dispensing organization;
        (5) The total amount of revenue received from craft
    growers that share a premises or majority ownership with an
    infuser, but do not share a premises or ownership with a
    dispensary;
        (6) The total amount of revenue received from infusers
    that share a premises or majority ownership with a craft
    grower, but do not share a premises or ownership with a
    dispensary;
        (7) The total amount of revenue received from craft
    growers that share a premises or majority ownership with a
    dispensing organization, but do not share a premises or
    ownership with an infuser;
        (8) The total amount of revenue received from infusers
    that share a premises or majority ownership with a
    dispensing organization, but do not share a premises or
    ownership with a craft grower;
        (9) The total amount of revenue received from
    transporters; and
        (10) An analysis of revenue generated from taxation,
    licensing, and other fees for the State, including
    recommendations to change the tax rate applied.
    (c) The Department of State Police shall submit to the
General Assembly and Governor a report, by September 30 of each
year that contains, at a minimum, all of the following
information for the previous fiscal year:
        (1) The effect of regulation and taxation of cannabis
    on law enforcement resources;
        (2) The impact of regulation and taxation of cannabis
    on highway safety and rates of impaired driving, where
    impairment was determined based on failure of a field
    sobriety test;
        (3) The available and emerging methods for detecting
    the metabolites for delta-9-tetrahydrocannabinol in bodily
    fluids, including, without limitation, blood and saliva;
        (4) The effectiveness of current DUI laws and
    recommendations for improvements to policy to better
    ensure safe highways and fair laws.
    (d) The Adult Use Cannabis Health Advisory Committee shall
submit to the General Assembly and Governor a report, by
September 30 of each year, that does not disclose any
identifying information about any individuals, but does
contain, at a minimum:
        (1) Self-reported youth cannabis use, as published in
    the most recent Illinois Youth Survey available;
        (2) Self-reported adult cannabis use, as published in
    the most recent Behavioral Risk Factor Surveillance Survey
    available;
        (3) Hospital room admissions and hospital utilization
    rates caused by cannabis consumption, including the
    presence or detection of other drugs;
        (4) Overdoses of cannabis and poison control data,
    including the presence of other drugs that may have
    contributed;
        (5) Incidents of impaired driving caused by the
    consumption of cannabis or cannabis products, including
    the presence of other drugs or alcohol that may have
    contributed to the impaired driving;
        (6) Prevalence of infants born testing positive for
    cannabis or delta-9-tetrahydrocannabinol, including
    demographic and racial information on which infants are
    tested;
        (7) Public perceptions of use and risk of harm;
        (8) Revenue collected from cannabis taxation and how
    that revenue was used;
        (9) Cannabis retail licenses granted and locations;
        (10) Cannabis-related arrests; and
        (11) The number of individuals completing required bud
    tender training.
    (e) Each agency or committee submitting reports under this
Section may consult with one another in the preparation of each
report.
 
    Section 55-85. Medical cannabis.
    (a) Nothing in this Act shall be construed to limit any
privileges or rights of a medical cannabis patient including
minor patients, primary caregiver, medical cannabis
cultivation center, or medical cannabis dispensing
organization under the Compassionate Use of Medical Cannabis
Pilot Program Act, and where there is conflict between this Act
and the Compassionate Use of Medical Cannabis Pilot Program Act
as they relate to medical cannabis patients, the Compassionate
Use of Medical Cannabis Pilot Program Act shall prevail.
    (b) Dispensary locations that obtain an Early Approval
Adult Use Dispensary Organization License or an Adult Use
Dispensary Organization License in accordance with this Act at
the same location as a medical cannabis dispensing organization
registered under the Compassionate Use of Medical Cannabis
Pilot Program Act shall maintain an inventory of medical
cannabis and medical cannabis products on a monthly basis that
is substantially similar in variety and quantity to the
products offered at the dispensary during the 6-month period
immediately before the effective date of this Act.
    (c) Beginning June 30, 2020, the Department of Agriculture
shall make a quarterly determination whether inventory
requirements established for dispensaries in subsection (b)
should be adjusted due to changing patient need.
 
    Section 55-90. Home rule preemption. Except as otherwise
provided in this Act, the regulation and licensing of the
activities described in this Act are exclusive powers and
functions of the State. Except as otherwise provided in this
Act, a unit of local government, including a home rule unit,
may not regulate or license the activities described in this
Act. This Section is a denial and limitation of home rule
powers and functions under subsection (h) of Section 6 of
Article VII of the Illinois Constitution.
 
    Section 55-95. Conflict of interest. A person is ineligible
to apply for, hold, or own financial or voting interest in any
cannabis business license under this Act if, within a 2-year
period from the effective date of this Act, the person or his
or her spouse or immediately family member was a member of the
General Assembly or a State employee at an agency that
regulates cannabis business establishment license holders who
participated personally and substantially in the award of
licenses under this Act. A person who violates this Section
shall be guilty under subsection (b) of Section 50-5 of the
State Officials and Employees Ethics Act.
 
ARTICLE 60.
CANNABIS CULTIVATION PRIVILEGE TAX

 
    Section 60-1. Short title. This Article may be referred to
as the Cannabis Cultivation Privilege Tax Law.
 
    Section 60-5. Definitions. In this Article:
    "Cannabis" has the meaning given to that term in Article 1
of this Act, except that it does not include cannabis that is
subject to tax under the Compassionate Use of Medical Cannabis
Pilot Program Act.
    "Craft grower" has the meaning given to that term in
Article 1 of this Act.
    "Cultivation center" has the meaning given to that term in
Article 1 of this Act.
    "Cultivator" or "taxpayer" means a cultivation center or
craft grower who is subject to tax under this Article.
    "Department" means the Department of Revenue.
    "Director" means the Director of Revenue.
    "Dispensing organization" or "dispensary" has the meaning
given to that term in Article 1 of this Act.
    "Gross receipts" from the sales of cannabis by a cultivator
means the total selling price or the amount of such sales, as
defined in this Article. In the case of charges and time sales,
the amount thereof shall be included only when payments are
received by the cultivator.
    "Person" means a natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
    "Infuser" means "infuser organization" or "infuser" as
defined in Article 1 of this Act.
    "Selling price" or "amount of sale" means the consideration
for a sale valued in money whether received in money or
otherwise, including cash, credits, property, and services,
and shall be determined without any deduction on account of the
cost of the property sold, the cost of materials used, labor or
service cost, or any other expense whatsoever, but does not
include separately stated charges identified on the invoice by
cultivators to reimburse themselves for their tax liability
under this Article.
 
    Section 60-10. Tax imposed.
    (a) Beginning September 1, 2019, a tax is imposed upon the
privilege of cultivating cannabis at the rate of 7% of the
gross receipts from the first sale of cannabis by a cultivator.
The sale of any product that contains any amount of cannabis or
any derivative thereof is subject to the tax under this Section
on the full selling price of the product. The Department may
determine the selling price of the cannabis when the seller and
purchaser are affiliated persons, when the sale and purchase of
cannabis is not an arm's length transaction, or when cannabis
is transferred by a craft grower to the craft grower's
dispensing organization or infuser or processing organization
and a value is not established for the cannabis. The value
determined by the Department shall be commensurate with the
actual price received for products of like quality, character,
and use in the area. If there are no sales of cannabis of like
quality, character, and use in the same area, then the
Department shall establish a reasonable value based on sales of
products of like quality, character, and use in other areas of
the State, taking into consideration any other relevant
factors.
    (b) The Cannabis Cultivation Privilege Tax imposed under
this Article is solely the responsibility of the cultivator who
makes the first sale and is not the responsibility of a
subsequent purchaser, a dispensing organization, or an
infuser. Persons subject to the tax imposed under this Article
may, however, reimburse themselves for their tax liability
hereunder by separately stating reimbursement for their tax
liability as an additional charge.
    (c) The tax imposed under this Article shall be in addition
to all other occupation, privilege, or excise taxes imposed by
the State of Illinois or by any unit of local government.
 
    Section 60-15. Registration of cultivators. Every
cultivator and craft grower subject to the tax under this
Article shall apply to the Department of Revenue for a
certificate of registration under this Article. All
applications for registration under this Article shall be made
by electronic means in the form and manner required by the
Department. For that purpose, the provisions of Section 2a of
the Retailers' Occupation Tax Act are incorporated into this
Article to the extent not inconsistent with this Article. In
addition, no certificate of registration shall be issued under
this Article unless the applicant is licensed under this Act.
 
    Section 60-20. Return and payment of cannabis cultivation
privilege tax. Each person who is required to pay the tax
imposed by this Article shall make a return to the Department
on or before the 20th day of each month for the preceding
calendar month stating the following:
        (1) the taxpayer's name;
        (2) the address of the taxpayer's principal place of
    business and the address of the principal place of business
    (if that is a different address) from which the taxpayer is
    engaged in the business of cultivating cannabis subject to
    tax under this Article;
        (3) the total amount of receipts received by the
    taxpayer during the preceding calendar month from sales of
    cannabis subject to tax under this Article by the taxpayer
    during the preceding calendar month;
        (4) the total amount received by the taxpayer during
    the preceding calendar month on charge and time sales of
    cannabis subject to tax imposed under this Article by the
    taxpayer before the month for which the return is filed;
        (5) deductions allowed by law;
        (6) gross receipts that were received by the taxpayer
    during the preceding calendar month and upon the basis of
    which the tax is imposed;
        (7) the amount of tax due;
        (8) the signature of the taxpayer; and
        (9) any other information as the Department may
    reasonably require.
    All returns required to be filed and payments required to
be made under this Article shall be by electronic means.
Taxpayers who demonstrate hardship in paying electronically
may petition the Department to waive the electronic payment
requirement. The Department may require a separate return for
the tax under this Article or combine the return for the tax
under this Article with the return for the tax under the
Compassionate Use of Medical Cannabis Pilot Program Act. If the
return for the tax under this Article is combined with the
return for tax under the Compassionate Use of Medical Cannabis
Pilot Program Act, then the vendor's discount allowed under
this Section and any cap on that discount shall apply to the
combined return. The taxpayer making the return provided for in
this Section shall also pay to the Department, in accordance
with this Section, the amount of tax imposed by this Article,
less a discount of 1.75%, but not to exceed $1,000 per return
period, which is allowed to reimburse the taxpayer for the
expenses incurred in keeping records, collecting tax,
preparing and filing returns, remitting the tax, and supplying
data to the Department upon request. No discount may be claimed
by a taxpayer on returns not timely filed and for taxes not
timely remitted. No discount may be claimed by a taxpayer for
any return that is not filed electronically. No discount may be
claimed by a taxpayer for any payment that is not made
electronically, unless a waiver has been granted under this
Section. Any amount that is required to be shown or reported on
any return or other document under this Article shall, if the
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount if the fractional part of a dollar
is $0.50 or more and decreased to the nearest whole-dollar
amount if the fractional part of a dollar is less than $0.50.
If a total amount of less than $1 is payable, refundable, or
creditable, the amount shall be disregarded if it is less than
$0.50 and shall be increased to $1 if it is $0.50 or more.
Notwithstanding any other provision of this Article concerning
the time within which a taxpayer may file a return, any such
taxpayer who ceases to engage in the kind of business that
makes the person responsible for filing returns under this
Article shall file a final return under this Article with the
Department within one month after discontinuing such business.
    Each taxpayer under this Article shall make estimated
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which tax liability to the
Department is incurred. The payments shall be in an amount not
less than the lower of either 22.5% of the taxpayer's actual
tax liability for the month or 25% of the taxpayer's actual tax
liability for the same calendar month of the preceding year.
The amount of the quarter-monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. If any quarter-monthly payment is not paid at the
time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of the quarter-monthly payment actually and timely paid,
except insofar as the taxpayer has previously made payments for
that month to the Department in excess of the minimum payments
previously due as provided in this Section.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Article, as shown on an
original monthly return, the Department shall, if requested by
the taxpayer, issue to the taxpayer a credit memorandum no
later than 30 days after the date of payment. The credit
evidenced by the credit memorandum may be assigned by the
taxpayer to a similar taxpayer under this Act, in accordance
with reasonable rules to be prescribed by the Department. If no
such request is made, the taxpayer may credit the excess
payment against tax liability subsequently to be remitted to
the Department under this Act, in accordance with reasonable
rules prescribed by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
discount shall be reduced, if necessary, to reflect the
difference between the credit taken and that actually due, and
that taxpayer shall be liable for penalties and interest on the
difference.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department is
received by the taxpayer, the return shall be considered valid
and any amount shown to be due on the return shall be deemed
assessed.
 
    Section 60-25. Infuser information returns. If it is deemed
necessary for the administration of this Article, the
Department may adopt rules that require infusers to file
information returns regarding the sale of cannabis by infusers
to dispensaries. The Department may require infusers to file
all information returns by electronic means.
 
    Section 60-30. Deposit of proceeds. All moneys received by
the Department under this Article shall be deposited into the
Cannabis Regulation Fund.
 
    Section 60-35. Department administration and enforcement.
The Department shall have full power to administer and enforce
this Article, to collect all taxes, penalties, and interest due
hereunder, to dispose of taxes, penalties and interest so
collected in the manner hereinafter provided, and to determine
all rights to credit memoranda, arising on account of the
erroneous payment of tax, penalty, or interest hereunder. In
the administration of, and compliance with, this Article, the
Department and persons who are subject to this Article shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,
12, and 13 of the Retailers' Occupation Tax Act and all of the
provisions of the Uniform Penalty and Interest Act, which are
not inconsistent with this Article, as fully as if those
provisions were set forth herein. For purposes of this Section,
references in the Retailers' Occupation Tax Act to a "sale of
tangible personal property at retail" mean the "sale of
cannabis by a cultivator".
 
    Section 60-40. Invoices. Every sales invoice for cannabis
issued by a cultivator to a cannabis business establishment
shall contain the cultivator's certificate of registration
number assigned under this Article, date, invoice number,
purchaser's name and address, selling price, amount of
cannabis, concentrate, or cannabis-infused product, and any
other reasonable information as the Department may provide by
rule is necessary for the administration of this Article.
Cultivators shall retain the invoices for inspection by the
Department.
 
    Section 60-45. Rules. The Department may adopt rules
related to the enforcement of this Article.
 
ARTICLE 65.
CANNABIS PURCHASER EXCISE TAX

 
    Section 65-1. Short title. This Article may be referred to
as the Cannabis Purchaser Excise Tax Law.
 
    Section 65-5. Definitions. In this Article:
    "Adjusted delta-9-tetrahydrocannabinol level" means, for a
delta-9-tetrahydrocannabinol dominant product, the sum of the
percentage of delta-9-tetrahydrocannabinol plus .877
multiplied by the percentage of tetrahydrocannabinolic acid.
    "Cannabis" has the meaning given to that term in Article 1
of this Act, except that it does not include cannabis that is
subject to tax under the Compassionate Use of Medical Cannabis
Pilot Program Act.
    "Cannabis-infused product" means beverage food, oils,
ointments, tincture, topical formulation, or another product
containing cannabis that is not intended to be smoked.
    "Cannabis retailer" means a dispensing organization that
sells cannabis for use and not for resale.
    "Craft grower" has the meaning given to that term in
Article 1 of this Act.
    "Department" means the Department of Revenue.
    "Director" means the Director of Revenue.
    "Dispensing organization" or "dispensary" has the meaning
given to that term in Article 1 of this Act.
    "Person" means a natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
    "Infuser organization" or "infuser" means a facility
operated by an organization or business that is licensed by the
Department of Agriculture to directly incorporate cannabis or
cannabis concentrate into a product formulation to produce a
cannabis-infused product.
    "Purchase price" means the consideration paid for a
purchase of cannabis, valued in money, whether received in
money or otherwise, including cash, gift cards, credits, and
property and shall be determined without any deduction on
account of the cost of materials used, labor or service costs,
or any other expense whatsoever. However, "purchase price" does
not include consideration paid for:
        (1) any charge for a payment that is not honored by a
    financial institution;
        (2) any finance or credit charge, penalty or charge for
    delayed payment, or discount for prompt payment; and
        (3) any amounts added to a purchaser's bill because of
    charges made under the tax imposed by this Article, the
    Municipal Cannabis Retailers' Occupation Tax Law, the
    County Cannabis Retailers' Occupation Tax Law, the
    Retailers' Occupation Tax Act, the Use Tax Act, the Service
    Occupation Tax Act, the Service Use Tax Act, or any locally
    imposed occupation or use tax.
    "Purchaser" means a person who acquires cannabis for a
valuable consideration.
    "Taxpayer" means a cannabis retailer who is required to
collect the tax imposed under this Article.
 
    Section 65-10. Tax imposed.
    (a) Beginning January 1, 2020, a tax is imposed upon
purchasers for the privilege of using cannabis at the following
rates:
        (1) Any cannabis, other than a cannabis-infused
    product, with an adjusted delta-9-tetrahydrocannabinol
    level at or below 35% shall be taxed at a rate of 10% of the
    purchase price;
        (2) Any cannabis, other than a cannabis-infused
    product, with an adjusted delta-9-tetrahydrocannabinol
    level above 35% shall be taxed at a rate of 25% of the
    purchase price; and
        (3) A cannabis-infused product shall be taxed at a rate
    of 20% of the purchase price.
    (b) The purchase of any product that contains any amount of
cannabis or any derivative thereof is subject to the tax under
subsection (a) of this Section on the full purchase price of
the product.
    (c) The tax imposed under this Section is not imposed on
cannabis that is subject to tax under the Compassionate Use of
Medical Cannabis Pilot Program Act. The tax imposed by this
Section is not imposed with respect to any transaction in
interstate commerce, to the extent the transaction may not,
under the Constitution and statutes of the United States, be
made the subject of taxation by this State.
    (d) The tax imposed under this Article shall be in addition
to all other occupation, privilege, or excise taxes imposed by
the State of Illinois or by any municipal corporation or
political subdivision thereof.
    (e) The tax imposed under this Article shall not be imposed
on any purchase by a purchaser if the cannabis retailer is
prohibited by federal or State Constitution, treaty,
convention, statute, or court decision from collecting the tax
from the purchaser.
 
    Section 65-11. Bundling of taxable and nontaxable items;
prohibition; taxation. If a cannabis retailer sells cannabis,
concentrate, or cannabis-infused products in combination or
bundled with items that are not subject to tax under this Act
for one price in violation of the prohibition on this activity
under Section 15-70, then the tax under this Act is imposed on
the purchase price of the entire bundled product.
 
    Section 65-15. Collection of tax.
    (a) The tax imposed by this Article shall be collected from
the purchaser by the cannabis retailer at the rate stated in
Section 65-10 with respect to cannabis sold by the cannabis
retailer to the purchaser, and shall be remitted to the
Department as provided in Section 65-30. All sales to a
purchaser who is not a cardholder under the Compassionate Use
of Medical Cannabis Pilot Program Act are presumed subject to
tax collection. Cannabis retailers shall collect the tax from
purchasers by adding the tax to the amount of the purchase
price received from the purchaser for selling cannabis to the
purchaser. The tax imposed by this Article shall, when
collected, be stated as a distinct item separate and apart from
the purchase price of the cannabis.
    (b) If a cannabis retailer collects Cannabis Purchaser
Excise Tax measured by a purchase price that is not subject to
Cannabis Purchaser Excise Tax, or if a cannabis retailer, in
collecting Cannabis Purchaser Excise Tax measured by a purchase
price that is subject to tax under this Act, collects more from
the purchaser than the required amount of the Cannabis
Purchaser Excise Tax on the transaction, the purchaser shall
have a legal right to claim a refund of that amount from the
cannabis retailer. If, however, that amount is not refunded to
the purchaser for any reason, the cannabis retailer is liable
to pay that amount to the Department.
    (c) Any person purchasing cannabis subject to tax under
this Article as to which there has been no charge made to him
or her of the tax imposed by Section 65-10 shall make payment
of the tax imposed by Section 65-10 in the form and manner
provided by the Department not later than the 20th day of the
month following the month of purchase of the cannabis.
 
    Section 65-20. Registration of cannabis retailers. Every
cannabis retailer required to collect the tax under this
Article shall apply to the Department for a certificate of
registration under this Article. All applications for
registration under this Article shall be made by electronic
means in the form and manner required by the Department. For
that purpose, the provisions of Section 2a of the Retailers'
Occupation Tax Act are incorporated into this Article to the
extent not inconsistent with this Article. In addition, no
certificate of registration shall be issued under this Article
unless the applicant is licensed under this Act.
 
    Section 65-25. Tax collected as debt owed to State. Any
cannabis retailer required to collect the tax imposed by this
Article shall be liable to the Department for the tax, whether
or not the tax has been collected by the cannabis retailer, and
any such tax shall constitute a debt owed by the cannabis
retailer to this State. To the extent that a cannabis retailer
required to collect the tax imposed by this Act has actually
collected that tax, the tax is held in trust for the benefit of
the Department.
 
    Section 65-30. Return and payment of tax by cannabis
retailer. Each cannabis retailer that is required or authorized
to collect the tax imposed by this Article shall make a return
to the Department, by electronic means, on or before the 20th
day of each month for the preceding calendar month stating the
following:
        (1) the cannabis retailer's name;
        (2) the address of the cannabis retailer's principal
    place of business and the address of the principal place of
    business (if that is a different address) from which the
    cannabis retailer engaged in the business of selling
    cannabis subject to tax under this Article;
        (3) the total purchase price received by the cannabis
    retailer for cannabis subject to tax under this Article;
        (4) the amount of tax due at each rate;
        (5) the signature of the cannabis retailer; and
        (6) any other information as the Department may
    reasonably require.
    All returns required to be filed and payments required to
be made under this Article shall be by electronic means.
Cannabis retailers who demonstrate hardship in paying
electronically may petition the Department to waive the
electronic payment requirement.
    Any amount that is required to be shown or reported on any
return or other document under this Article shall, if the
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount if the fractional part of a dollar
is $0.50 or more and decreased to the nearest whole-dollar
amount if the fractional part of a dollar is less than $0.50.
If a total amount of less than $1 is payable, refundable, or
creditable, the amount shall be disregarded if it is less than
$0.50 and shall be increased to $1 if it is $0.50 or more.
    The cannabis retailer making the return provided for in
this Section shall also pay to the Department, in accordance
with this Section, the amount of tax imposed by this Article,
less a discount of 1.75%, but not to exceed $1,000 per return
period, which is allowed to reimburse the cannabis retailer for
the expenses incurred in keeping records, collecting tax,
preparing and filing returns, remitting the tax, and supplying
data to the Department upon request. No discount may be claimed
by a cannabis retailer on returns not timely filed and for
taxes not timely remitted. No discount may be claimed by a
taxpayer for any return that is not filed electronically. No
discount may be claimed by a taxpayer for any payment that is
not made electronically, unless a waiver has been granted under
this Section.
    Notwithstanding any other provision of this Article
concerning the time within which a cannabis retailer may file a
return, any such cannabis retailer who ceases to engage in the
kind of business that makes the person responsible for filing
returns under this Article shall file a final return under this
Article with the Department within one month after
discontinuing the business.
    Each cannabis retailer shall make estimated payments to the
Department on or before the 7th, 15th, 22nd, and last day of
the month during which tax liability to the Department is
incurred. The payments shall be in an amount not less than the
lower of either 22.5% of the cannabis retailer's actual tax
liability for the month or 25% of the cannabis retailer's
actual tax liability for the same calendar month of the
preceding year. The amount of the quarter-monthly payments
shall be credited against the final tax liability of the
cannabis retailer's return for that month. If any such
quarter-monthly payment is not paid at the time or in the
amount required by this Section, then the cannabis retailer
shall be liable for penalties and interest on the difference
between the minimum amount due as a payment and the amount of
the quarter-monthly payment actually and timely paid, except
insofar as the cannabis retailer has previously made payments
for that month to the Department in excess of the minimum
payments previously due as provided in this Section.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Article, as shown on an
original monthly return, the Department shall, if requested by
the taxpayer, issue to the taxpayer a credit memorandum no
later than 30 days after the date of payment. The credit
evidenced by the credit memorandum may be assigned by the
taxpayer to a similar taxpayer under this Article, in
accordance with reasonable rules to be prescribed by the
Department. If no such request is made, the taxpayer may credit
the excess payment against tax liability subsequently to be
remitted to the Department under this Article, in accordance
with reasonable rules prescribed by the Department. If the
Department subsequently determines that all or any part of the
credit taken was not actually due to the taxpayer, the
taxpayer's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest on
the difference. If a cannabis retailer fails to sign a return
within 30 days after the proper notice and demand for signature
by the Department is received by the cannabis retailer, the
return shall be considered valid and any amount shown to be due
on the return shall be deemed assessed.
 
    Section 65-35. Deposit of proceeds. All moneys received by
the Department under this Article shall be paid into the
Cannabis Regulation Fund.
 
    Section 65-36. Recordkeeping; books and records.
    (a) Every retailer of cannabis, whether or not the retailer
has obtained a certificate of registration under Section 65-20,
shall keep complete and accurate records of cannabis held,
purchased, sold, or otherwise disposed of, and shall preserve
and keep all invoices, bills of lading, sales records, and
copies of bills of sale, returns, and other pertinent papers
and documents relating to the purchase, sale, or disposition of
cannabis. Such records need not be maintained on the licensed
premises but must be maintained in the State of Illinois.
However, all original invoices or copies thereof covering
purchases of cannabis must be retained on the licensed premises
for a period of 90 days after such purchase, unless the
Department has granted a waiver in response to a written
request in cases where records are kept at a central business
location within the State of Illinois. The Department shall
adopt rules regarding the eligibility for a waiver, revocation
of a waiver, and requirements and standards for maintenance and
accessibility of records located at a central location under a
waiver provided under this Section.
    (b) Books, records, papers, and documents that are required
by this Article to be kept shall, at all times during the usual
business hours of the day, be subject to inspection by the
Department or its duly authorized agents and employees. The
books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a notice
of tax liability shall be preserved until the expiration of
that period.
 
    Section 65-38. Violations and penalties.
    (a) When the amount due is under $300, any retailer of
cannabis who fails to file a return, willfully fails or refuses
to make any payment to the Department of the tax imposed by
this Article, or files a fraudulent return, or any officer or
agent of a corporation engaged in the business of selling
cannabis to purchasers located in this State who signs a
fraudulent return filed on behalf of the corporation, or any
accountant or other agent who knowingly enters false
information on the return of any taxpayer under this Article is
guilty of a Class 4 felony.
    (b) When the amount due is $300 or more, any retailer of
cannabis who files, or causes to be filed, a fraudulent return,
or any officer or agent of a corporation engaged in the
business of selling cannabis to purchasers located in this
State who files or causes to be filed or signs or causes to be
signed a fraudulent return filed on behalf of the corporation,
or any accountant or other agent who knowingly enters false
information on the return of any taxpayer under this Article is
guilty of a Class 3 felony.
    (c) Any person who violates any provision of Section 65-20,
fails to keep books and records as required under this Article,
or willfully violates a rule of the Department for the
administration and enforcement of this Article is guilty of a
Class 4 felony. A person commits a separate offense on each day
that he or she engages in business in violation of Section
65-20 or a rule of the Department for the administration and
enforcement of this Article. If a person fails to produce the
books and records for inspection by the Department upon
request, a prima facie presumption shall arise that the person
has failed to keep books and records as required under this
Article. A person who is unable to rebut this presumption is in
violation of this Article and is subject to the penalties
provided in this Section.
    (d) Any person who violates any provision of Sections
65-20, fails to keep books and records as required under this
Article, or willfully violates a rule of the Department for the
administration and enforcement of this Article, is guilty of a
business offense and may be fined up to $5,000. If a person
fails to produce books and records for inspection by the
Department upon request, a prima facie presumption shall arise
that the person has failed to keep books and records as
required under this Article. A person who is unable to rebut
this presumption is in violation of this Article and is subject
to the penalties provided in this Section. A person commits a
separate offense on each day that he or she engages in business
in violation of Section 65-20.
    (e) Any taxpayer or agent of a taxpayer who with the intent
to defraud purports to make a payment due to the Department by
issuing or delivering a check or other order upon a real or
fictitious depository for the payment of money, knowing that it
will not be paid by the depository, is guilty of a deceptive
practice in violation of Section 17-1 of the Criminal Code of
2012.
    (f) Any person who fails to keep books and records or fails
to produce books and records for inspection, as required by
Section 65-36, is liable to pay to the Department, for deposit
in the Tax Compliance and Administration Fund, a penalty of
$1,000 for the first failure to keep books and records or
failure to produce books and records for inspection, as
required by Section 65-36, and $3,000 for each subsequent
failure to keep books and records or failure to produce books
and records for inspection, as required by Section 65-36.
    (g) Any person who knowingly acts as a retailer of cannabis
in this State without first having obtained a certificate of
registration to do so in compliance with Section 65-20 of this
Article shall be guilty of a Class 4 felony.
    (h) A person commits the offense of tax evasion under this
Article when he or she knowingly attempts in any manner to
evade or defeat the tax imposed on him or her or on any other
person, or the payment thereof, and he or she commits an
affirmative act in furtherance of the evasion. As used in this
Section, "affirmative act in furtherance of the evasion" means
an act designed in whole or in part to (i) conceal,
misrepresent, falsify, or manipulate any material fact or (ii)
tamper with or destroy documents or materials related to a
person's tax liability under this Article. Two or more acts of
sales tax evasion may be charged as a single count in any
indictment, information, or complaint and the amount of tax
deficiency may be aggregated for purposes of determining the
amount of tax that is attempted to be or is evaded and the
period between the first and last acts may be alleged as the
date of the offense.
        (1) When the amount of tax, the assessment or payment
    of which is attempted to be or is evaded is less than $500,
    a person is guilty of a Class 4 felony.
        (2) When the amount of tax, the assessment or payment
    of which is attempted to be or is evaded is $500 or more
    but less than $10,000, a person is guilty of a Class 3
    felony.
        (3) When the amount of tax, the assessment or payment
    of which is attempted to be or is evaded is $10,000 or more
    but less than $100,000, a person is guilty of a Class 2
    felony.
        (4) When the amount of tax, the assessment or payment
    of which is attempted to be or is evaded is $100,000 or
    more, a person is guilty of a Class 1 felony.
    Any person who knowingly sells, purchases, installs,
transfers, possesses, uses, or accesses any automated sales
suppression device, zapper, or phantom-ware in this State is
guilty of a Class 3 felony.
    As used in this Section:
    "Automated sales suppression device" or "zapper" means a
software program that falsifies the electronic records of an
electronic cash register or other point-of-sale system,
including, but not limited to, transaction data and transaction
reports. The term includes the software program, any device
that carries the software program, or an Internet link to the
software program.
    "Phantom-ware" means a hidden programming option embedded
in the operating system of an electronic cash register or
hardwired into an electronic cash register that can be used to
create a second set of records or that can eliminate or
manipulate transaction records in an electronic cash register.
    "Electronic cash register" means a device that keeps a
register or supporting documents through the use of an
electronic device or computer system designed to record
transaction data for the purpose of computing, compiling, or
processing retail sales transaction data in any manner.
    "Transaction data" includes: items purchased by a
purchaser; the price of each item; a taxability determination
for each item; a segregated tax amount for each taxed item; the
amount of cash or credit tendered; the net amount returned to
the customer in change; the date and time of the purchase; the
name, address, and identification number of the vendor; and the
receipt or invoice number of the transaction.
    "Transaction report" means a report that documents,
without limitation, the sales, taxes, or fees collected, media
totals, and discount voids at an electronic cash register and
that is printed on a cash register tape at the end of a day or
shift, or a report that documents every action at an electronic
cash register and is stored electronically.
    A prosecution for any act in violation of this Section may
be commenced at any time within 5 years of the commission of
that act.
    (i) The Department may adopt rules to administer the
penalties under this Section.
    (j) Any person whose principal place of business is in this
State and who is charged with a violation under this Section
shall be tried in the county where his or her principal place
of business is located unless he or she asserts a right to be
tried in another venue.
    (k) Except as otherwise provided in subsection (h), a
prosecution for a violation described in this Section may be
commenced within 3 years after the commission of the act
constituting the violation.
 
    Section 65-40. Department administration and enforcement.
The Department shall have full power to administer and enforce
this Article, to collect all taxes and penalties due hereunder,
to dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax
or penalty hereunder.
    In the administration of, and compliance with, this
Article, the Department and persons who are subject to this
Article shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,
12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and
Sections 1, 2-12, 2b, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5 (except
that the time limitation provisions on the issuance of notices
of tax liability shall run from the date when the tax is due
rather than from the date when gross receipts are received and
except that in the case of a failure to file a return required
by this Act, no notice of tax liability shall be issued on and
after each July 1 and January 1 covering tax due with that
return during any month or period more than 6 years before that
July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'
Occupation Tax Act and all of the provisions of the Uniform
Penalty and Interest Act, which are not inconsistent with this
Article, as fully as if those provisions were set forth herein.
References in the incorporated Sections of the Retailers'
Occupation Tax Act and the Use Tax Act to retailers, to
sellers, or to persons engaged in the business of selling
tangible personal property mean cannabis retailers when used in
this Article. References in the incorporated Sections to sales
of tangible personal property mean sales of cann