TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.10 DEFINITIONS
Section 1291.10 Definitions
Terms not defined in this Section shall have the same
meaning as in the Cannabis Regulation and Tax Act [410 ILCS 705]. Nothing in
this Part is intended to confer a property or other right, duty, privilege or
interest entitling an applicant to an administrative hearing upon denial of a
dispensing organization application. The denial of a dispensing organization application
does not preclude judicial review of the denial. The following definitions are
applicable for purposes of this Part:
"Act" means the Cannabis
Regulation and Tax Act [410 ILCS 705].
"Address of record"
means the address recorded by the Department in the applicant’s application
file maintained by the Department.
"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 the Act and any administrative rule made
in furtherance of the Act. (Section 1-10 of the Act).
"Affiliate" means a person
who directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, that person.
"Affiliated entity"
means any business entity that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
the person.
"Agent-in-charge" or
"AIC" means a person licensed by the Department in charge of managing
the dispensing organization.
"Applicant" means any person
or entity who is applying to the Department for a Conditional Adult Use
Dispensing Organization License, Adult Use Dispensing Organization License or
an agent, agent-in-charge, or principal officer identification card issued
under the Act or this Part, or to be approved as a Responsible Vendor Provider
under the Act or this Part.
"Application points"
means the number of points a dispensary applicant receives on an application
for a Conditional Adult Use Dispensing Organization License. (Section 1-10
of the Act)
"Approved Vendor List"
means a list of service professionals approved by the Department to work or
perform services at a specific dispensing organization.
"Assign" or
"Assignment" means granting an allocation of ownership interest or
control in a dispensing organization to an existing principal officer or to a
non-licensed third party.
"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 regions in
Illinois are:
Bloomington (DeWitt County;
McLean County),
Cape Girardeau (Alexander
County),
Carbondale-Marion (Jackson
County; Williamson County),
Champaign-Urbana (Champaign
County; Ford County; Piatt County),
Chicago-Naperville-Elgin
(Cook County; DeKalb County; DuPage County; Grundy County; Kane County; Kendall
County; Lake County; McHenry Count; Will County),
Danville (Vermilion County),
Davenport-Moline-Rock Island
(Henry County; Mercer County; Rock Island County),
Decatur (Macon County),
Kankakee (Kankakee County),
Peoria (Marshall County;
Peoria County; Stark County; Tazewell County; Woodford County),
Rockford (Boone County;
Winnebago County),
St. Louis (Bond County;
Calhoun County; Clinton County; Jersey County; Madison County; Macoupin County;
Monroe County; St. Clair County),
Springfield (Menard County;
Sangamon County),
Northwest Illinois
nonmetropolitan area (Bureau County; Carroll County; Jo Daviess County;
LaSalle County; Lee County; Ogle County; Putnam County; Stephenson County;
Whiteside County),
West Central Illinois
nonmetropolitan area (Adams County; Brown County; Cass County; Christian
County; Fulton County; Greene County; Hancock County; Henderson County; Knox
County; Livingston County; Logan County; Mason County; McDonough County;
Montgomery County; Morgan County; Moultrie County; Pike County; Schuyler
County; Scott County; Shelby County; Warren County),
East Central Illinois
nonmetropolitan area (Clark County; Clay County; Coles County; Crawford
County; Cumberland County; Douglas County; Edgard County; Effingham County;
Fayette County; Iroquois County; Jasper County; Lawrence County; Marion County;
Richland County), and
South Illinois nonmetropolitan
area (Edwards County; Franklin County; Gallatin County; Hamilton County;
Hardin County; Jefferson County; Johnson County; Massac County; Perry County;
Pope County; Pulaski County; Randolph County; Saline County; Union County;
Wabash County; Wayne County; White County). (Section 1-10 of the Act)
"Bulk cannabis
inventory" means cannabis and cannabis-infused products stored in the
reinforced vault in clear, heat-sealed or taped shrink wrap bags or sheeting
that is labeled with the date the inventory is sealed, the last four digits of
the batch number, the number of items contained within the wrapping, and the
date the inventory was last counted. Bulk cannabis inventory is included in
the dispensing organization's total inventory available for sale.
"Buyer" means a
prospective or current dispensing organization intending to buy or receive the
license or licenses of a seller in accordance with the change of ownership
parameters of this Part.
"By lot" means a
randomized method of choosing between two or more applicants.
"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.
"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;
industrial hemp as defined and
authorized under the Industrial Hemp Act [505 ILCS 89].
"Cannabis" does
include cannabis flower, concentrate, and cannabis-infused products.
(Section 1-10 of the Act)
"Cannabis business
establishment" means a cultivation center, craft grower, processing
organization, infuser organization, dispensing organization, or transporting
organization. (Section 1-10 of the Act)
"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; and
raw kief, leaves, and buds.
(Section 1-10 of the Act)
"Cannabis flower" does
not include resin that has been extracted from any part of a plant, nor any
compound, manufacture, salt, derivative, mixture, or preparation of a plant,
its seeds, or resin. (Section 1-10 of the Act)
"Cannabis-Infused
product" means a beverage, food, oil, ointment, tincture, topical
formulation, or another product containing cannabis or cannabis concentrate
that is not intended to be smoked. (Section 1-10 of the Act)
"Collateral" means
pledging a license and/or any current ownership interest, such as a dispensing organization
license or a principal officer's license, ownership, or interest, in the
licenses, ownership, or interest as security against an existing or prospective
debt.
"Conditional Adult Use
Dispensing Organization License" or "conditional license"
means a contingent license awarded to 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 the
Act but does not entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products. (Section 1-10 of the Act)
"Conditional License
Phase" or "Conditional Phase" means the period after which an
entity is issued a Conditional Adult Use Dispensing Organization License prior
to the issuance of any associated Adult Use Dispensing Organization License as
described in Sections 15-25(e), 15-35(c); and 15-35.10(c) of the Act.
"Consultant or Conditional
Management Service Agreement" or "CMSA" means any agreement,
contract, arrangement, or other type of formal understanding between a conditional
licensee or dispensing organization and a management services contractor, where
the contractor provides professional staffing, administrative, operational,
advisory, management, or other general consulting services to the conditional licensee
or dispensing organization in exchange for remuneration.
"Department" means the
Department of Financial and Professional Regulation.
"Director" means the
Director of the Division of Professional Regulation within the Department.
"Dispensary
Applicant" means the proposed dispensing organization name as stated on an
application for a Conditional Adult Use Dispensing Organization License.
(Section 1-10 of the Act).
"Dispense" means to
interpret, verify computer entry of, select the cannabis or cannabis-infused
product for, prepare and/or hand-deliver cannabis or cannabis-infused product
to a purchaser, registered medical patient or caregiver.
"Dispensing
organization" means a facility operated by an organization or business
that is licensed by the Department 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 the Act to purchasers or to
qualified registered medical cannabis patients and caregivers. As used in this
Part, “dispensing organization” includes a registered medical cannabis
organization as defined in the Compassionate Use of Medical Cannabis Program
Act [410 ILCS 130] or its successor Act that has obtained an Early Approval
Adult Use Dispensing Organization License. (Section 1-10 of the Act)
"Dispensing organization
agent ID card" or "agent ID card" means a document issued by the
Department that identifies a person as a dispensing organization agent, agent-in-charge,
or principal officer.
"DOA" means the Illinois
Department of Agriculture.
"Early Approval Adult Use
Dispensing Organization at a Secondary Site" or "secondary
site" means a license that permits a medical cannabis dispensing
organization licensed under the Compassionate Use of Medical Cannabis Program
Act as of June 25, 2019 to begin selling cannabis or cannabis-infused
product to purchasers as permitted by the Act on January 1, 2020 at a
different dispensary location from its existing registered medical dispensary
location. (Section 1-10 of the Act)
"Early Approval Adult Use
Dispensing Organization License" or "Same-Site Licensee" means
a license that permits a medical cannabis dispensing organization licensed
under the Compassionate Use of Medical Cannabis Program Act as of June 25,
2019 to begin selling cannabis or cannabis-infused product to purchasers as
permitted by the Act as of January 1, 2020. (Section 1-10 of the
Act)
"Eligible applicant"
means a tied applicant eligible to participate in the process by which a
remaining available license is distributed by lot.
"Firearm injury" means a
gunshot wound or penetrating injury from a weapon that uses a powder charge to
fire a projectile. Weapons that use a power charge include handguns, rifles,
and shotguns. Injuries from air- and gas-powered guns, BB guns, and pellet
guns are not considered firearm injuries as these types of guns do not use a
powder charge to fire a projectile.
"Financial Interest"
means any actual or future right to ownership, investment or compensation
arrangement, either directly or indirectly, through business, investment,
spouse, parent or child, in the dispensing organization. Financial interest
does not include ownership of investment securities in a publicly-held
corporation that is traded on a national securities exchange or
over-the-counter market in the United States, provided the investment
securities held by the person and the person's spouse, parent or child, in the
aggregate, do not exceed 5% ownership in the dispensing organization.
"HIPAA" means the Health
Insurance Portability and Accountability Act of 1996 (P.L. 104-191) and the
HIPAA Privacy Rule as found at 45 CFR 164.
"Individual" means a
natural person.
"ISP" means the Illinois
State Police.
"Laboratory" means an
independent laboratory located in Illinois and approved by DOA to have custody
and use of controlled substances for scientific and medical purposes and for
purposes of instruction, research or analysis.
"Limited access area"
means a room or other area under the control of a cannabis dispensing
organization licensed under this Act and upon the licensed premises where
cannabis sales occur with access limited to purchasers, dispensing organization
owners and other dispensing organization agents, or service professionals
conducting business with the dispensing organization, or, if sales to
registered qualifying patients, caregivers, provisional patients, and Opioid Alternative
Pilot Program participants licensed pursuant to the Compassionate Use of
Medical Cannabis Program Act are also permitted at the dispensary, registered
qualifying patients, caregivers, provisional patients, and Opioid Alternative
Pilot Program participants. (Section 1-10 of the Act)
"Member of an impacted
family", "family member", or "impacted family
member" means an individual who has a parent, legal guardian, child,
spouse, or dependent, or was a dependent of an individual who, prior to
June 25, 2019, was arrested or convicted of, or adjudicated delinquent for
any offense that is eligible for expungement under the Act. (Section
1-10 of the Act)
"Management Services
Agreement" means any agreement, contract, arrangement, or other type of
formal understanding between a management services contractor and a dispensing organization
where the management services contractor and a dispensing organization where
the management services contractor provides professional staffing, such as,
administrative, operational, advisory, consulting or management services to a dispensing
organization.
"Management Services
Contractor" means a third-party vendor-contractor entity that provides
professional staffing, administrative, operational, advisory, consulting or
management services to a dispensing organization.
"Notify" means to send
via regular United States mail or email.
"Onsite Consumption
Lounge" means an establishment connected to a licensed early approval adult
use dispensing organization at a secondary site or a licensed adult use dispensing
organization in which cannabis or cannabis-infused product is heated, burned,
smoked, or consumed under section 55-25 of the Act.
"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. (Section 1-10 of the Act)
"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.
"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. This definition includes a person with authority to control the
cannabis business establishment or a person who assumes responsibility
for the debts of the cannabis business establishment. (Section 1-10 of the
Act)
"Point of Sale System"
means a computer system capable of completing cannabis purchases, tracking
cannabis inventory, and communicating cannabis inventory to the State Verification
System.
"Reinforced vault" means
a room built to the specifications listed in Section 1291.300(g).
"Remaining available
license" means a license in a BLS region that has not been awarded by the
Department at the conclusion of the scoring process period. There may be more
than one remaining available license in a BLS region. For example, if four
licenses are available in a BLS region and the five highest scoring dispensary
applicants receive scores of 245, 240, 235, 235, and 235 points, the applicants
receiving 245 and 240 application points will be awarded licenses and the three
applicants receiving 235 points may become eligible applicants. Likewise, if
one license is available in a BLS region and there are five dispensary
applicants with the highest score, all five dispensary applicants may become eligible
applicants.
"Responsible Vendor
Program" or "Program" means a training course or module offered
by an approved Responsible Vendor Provider that provides at least two hours of
class instruction on topics outlined in Section 1291.110.
"Responsible Vendor
Provider" or "Provider" means a person or entity approved by the
Department to offer a responsible vendor program and issue certifications
pursuant to Section 15-40(k) of the Act.
"Responsible Vendor
Trainer" or "Trainer" means an individual who is employed or
contracted by a responsible vendor provider to provide the instruction for a responsible
vendor program.
"Restricted access area"
means a building, room or other contiguous area under control of the dispensing
organization and upon the registered premises with access limited to dispensary
agents only, where cannabis is stored, packaged, sold or processed for sale.
"Scoring process period"
is the period of time between the conclusion of the submission period for a
conditional license application and when the Department publishes the names of
tied applicants that may become eligible applicants.
"Secretary" means the
Secretary of the Department of Financial and Professional Regulation.
"Seller" means a dispensing
organization that intends to change its ownership or sell or transfer its
license or licenses.
"Service professional"
means a person who must be present at the dispensary to perform work, including
but not limited to those installing or maintaining security devices, delivering
cannabis, providing construction services, and auditing or accounting services,
etc. It also means a person who is a prospective buyer or investor in a license
who has been approved in a form or manner prescribed by the Department.
"State verification
system" means a web-based system established and maintained by the State
of Illinois that is available to the Department, DOA, ISP, and dispensing
organizations for the tracking of the date of sale, amount, and price of
cannabis purchased by purchasers.
"Tied
applicant" means an application submitted by a dispensary applicant
pursuant to Section 15-30 of the Act that received the same number of
application points under Section 15-30 of the Act as the dispensary
applicant's final score as one or more top-scoring applications in the same BLS
region and would have been awarded a license but for the one or more other
top-scoring applications that received the same number of application points.
Each application for which a dispensary applicant was required to pay a
required application fee for the application period ending January 2, 2020
shall be considered an application of a separate tied applicant. (Section
1-10 of the Act)
"Top participant" means
an applicant drawn by lot in a winning slot such that it has the opportunity to
be issued a conditional license.
"Victim" means
a person injured as a result of a
firearm injury perpetrated or attempted against them;
the spouse, parent, or child of a
person killed or injured as a result of a firearm injury perpetrated or
attempted against the person, or anyone living in the household of a person
killed or injured in a relationship that is substantially similar to that of a
parent, spouse, or child;
a person injured while attempting
to assist a person against whom a firearm injury is being perpetrated or
attempted, if that attempt of assistance would be expected of a reasonable
person under the circumstances;
a person injured while assisting a
law enforcement official apprehend a person who has perpetrated a firearm
injury or prevent the perpetration of any such crime if that assistance was in
response to the express request of the law enforcement official; or
a person who personally witnessed
a firearm injury.
The victim must not be the
offender in the criminal act and must not have provoked or incited the crime.
(Source: Amended at 48 Ill. Reg. 13377,
effective August 20, 2024)
 | TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.11 GRANTING VARIANCES
Section 1291.11 Granting Variances
The Director may grant variances from this Part in
individual cases when the director finds that:
a) The provision from which
the variance is granted is not statutorily mandated;
b) No party will be injured
by the granting of that variance; and
c) The
rules from which the variance is granted would be unreasonable or unnecessarily
burdensome.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.15 DISPENSING ORGANIZATION FEES AND RENEWALS
Section 1291.15 Dispensing Organization Fees and
Renewals
a) Communication
with the Department. The Department will only communicate with the dispensing
organization's primary contact, alternate contact, or through an authorized
third-party. The primary and alternate contact information must be different
from each other and cannot be the same email address for each. In order to
change its primary or alternate contact information, a dispensing organization
must submit a request to change from the current primary or alternate contact
email address the Department has on record. If the current email addresses are
inaccessible, the dispensing organization must submit a certification attesting
to the inaccessibility and requesting the change.
b) Fees.
The following are the fees for dispensing organizations. All fees are
nonrefundable and all monies collected under the Act shall be deposited in the
Cannabis Regulation Fund in the State Treasury.
1) The
application fee for a change of ownership or sale or transfer of a license is
$5,000 for each license involved in the transaction. A fee shall be remitted
to the Department for each Adult Use Dispensing Organization License or
Registered Medical Cannabis Organization License involved in the transaction.
2) The
application fee for an exception to a change of ownership or sale or transfer
of a license, as those exceptions are defined in Section 1291.213, is $1,000.
If the Department determines that an exception does not apply and the
transaction is a change of ownership or sale or transfer of a license, then the
licensee shall pay the fees required under subsection (b)(1), minus any monies
already paid pursuant to this subsection (b)(2).
3) The
licensing fee for a dispensing organization is $60,000.
4) The
renewal fee for a dispensing organization is $60,000.
5) The
late fee for renewal of a dispensing organization is $5,000.
6) Licensing
fees may be paid on a pro-rated basis based on the following license issuance
dates:
Dispensing Organization
Licensing Fees – Pro-Rated Table
|
Month
|
Fee
|
|
January of even-numbered years
|
$5,000
|
|
February of even-numbered years
|
$2,500
|
|
March of even-numbered years
|
$60,000
|
|
April of even-numbered years
|
$57,500
|
|
May of even-numbered years
|
$55,000
|
|
June of even-numbered years
|
$52,500
|
|
July of even-numbered years
|
$50,000
|
|
August of even-numbered years
|
$47,500
|
|
September of even-numbered
years
|
$45,000
|
|
October of even-numbered years
|
$42,500
|
|
November of even-numbered years
|
$40,000
|
|
December of even-numbered years
|
$37,500
|
|
January of odd-numbered years
|
$35,000
|
|
February of odd-numbered years
|
$32,500
|
|
March of odd-numbered years
|
$30,000
|
|
April of odd-numbered years
|
$27,500
|
|
May of odd-numbered years
|
$25,000
|
|
June of odd-numbered years
|
$22,500
|
|
July of odd-numbered years
|
$20,000
|
|
August of odd-numbered years
|
$17,500
|
|
September of odd-numbered years
|
$15,000
|
|
October of odd-numbered years
|
$12,500
|
|
November of odd-numbered years
|
$10,000
|
|
December of odd-numbered years
|
$7,500
|
c) Hardship
Waiver. Dispensing organizations may seek a hardship waiver for 50% of a
dispensing organization's renewal fee under Section 15-45 of the Act.
1) In
order to qualify for a hardship waiver, dispensing organization licensees must:
A) Attest
to their status as a social equity applicant in a form or manner prescribed by
the Department.
B) Attest
that the dispensing organization or applicant for renewal, 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 that dispensing organization or
applicant for renewal, including all individuals and entities with 10% or
greater ownership and all parent companies, subsidiaries, and affiliates, have
no more than two other licenses for cannabis business establishments in the
State of Illinois.
C) Provide
income verification by the Illinois Department of Revenue.
2) Licensees
may only qualify for a hardship waiver for the licensee's first renewal cycle.
d) Renewals
1) An
Adult Use Dispensing Organization License will expire on March 31 of each
even-numbered year. (Section 15-45 of the Act) The licensee shall renew
the license during the 90 calendar days preceding the expiration date by
submitting a renewal application and paying the fee required by Section 1291.15
no later than March 1 of the renewal year. If a license is not renewed before
the license expires, the dispensing organization must cease operations until
the license has been renewed.
2) If a dispensing
organization does not renew its license, it shall notify the Department, not
less than three months prior to the closing date or as otherwise authorized by
the Department.
3) If a dispensing
organization does not renew its license within 90 calendar days after its
expiration, the Department may deem the license to be abandoned and issue a
Notice of Intent to Issue a Permanent Revocation Order. The Notice of Intent
to Issue a Permanent Revocation Order shall specify the reason for the intended
action and notify the licensee that it has 20 calendar days after the date the notice
is mailed or e-mailed to present to the Department a written response
contesting the Department's intended action. A written response will be
considered by the Department only if the dispensing organization provides
documentation that:
A) the
license was renewed within the required timeframe; or
B) a
renewal application was submitted prior to the Notice of Intent to Issue a Permanent
Revocation being issued.
4) If
the Department does not receive a written response from the licensee that
establishes one of the grounds provided in subsection (c)(1) or (2) and more
than 20 calendar days have lapsed since the date of the issuance of the Notice
of Intent to Issue a Permanent Revocation Order, the Director shall issue an
order permanently revoking the license of the licensee.
e) Dispensing Organization
Duties and Prohibitions
1) A dispensing
organization license shall be valid only for the specific dispensing organization
identified on the license and for the specific location proposed and approved
by the Department.
2) Early
Approval Adult Use Dispensing Organization Licensees ("same site")
issued pursuant to Section 15-15 of the Act or Early Approval Adult Use Dispensing
Organization License at secondary sites ("secondary site") issued
pursuant to Section 15-20 of the Act cannot be severed from the associated
medical registration. The ownership structures for a same-site or secondary site
shall remain identical to the associated medical registration. Same-site licensees
seeking relocation must relocate both the same-site license and associated medical
registration to the same location. Any change of ownership or sale or transfer
involving a medical registration must also include its associated same-site and
secondary site licenses and vice versa.
3) Dispensing
organizations are responsible for ensuring it and its agents adhere to the
codes of conduct and grounds for discipline identified in Sections 1291.60 and
1291.70.
4) Dispensing
organizations have a duty to report to the Department, within 14 calendar days,
any adverse action taken against the dispensing organization, or its agent, by
a licensing authority with 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;
5) Dispensing
organizations are prohibited from assigning a dispensing organization license. (See
Section 15-60(g) of the Act.)
6) Dispensing
organizations are prohibited from using a dispensing organization license as
collateral to secure an existing or prospective debt.
f) The
Department may suspend or revoke a dispensing organization license for a
violation of the Act or this Part in accordance with Section 1291.70.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.20 AGENT FEES, APPLICATION, AND CREDENTIALING
Section 1291.20 Agent Fees, Application, and
Credentialing
a) All individuals
who have access to a dispensing organization's restricted access area and who
are not otherwise registered as an agent-in-charge, a principal officer, or are
identified on the dispensary's approved vendor list, are required to be registered
by the Department as an agent and be issued an agent ID card. These individuals
include, but are not limited to:
1) Individuals
involved with in-take of cannabis or cannabis-infused product deliveries;
2) Individuals
fulfilling cannabis or cannabis-infused product orders;
3) Individuals
involved with the destruction of cannabis or cannabis-infused products;
4) Individuals
entering purchasers' cannabis or cannabis-infused product orders into any point
of sale system used by a dispensing organization; and
5) Individuals
employed by the dispensing organization that engage in inventory verifications.
b) Communications
with the Department. The Department will only communicate with the agent's
email address the Department has on record, or with a third-party so long as a
third-party authorization form is submitted. In order to change its contact
information, an agent must submit a request to the Department from the email
address the Department has on record. If the current email address is
inaccessible, the agent must submit a certification attesting to the
inaccessibility and request the change.
c) Fees.
The fees for an agent are as follows. All fees are nonrefundable and all
monies collected under the Act shall be deposited in the Cannabis Regulation
Fund in the State Treasury.
1) The
application fee for an agent ID card is $100. This fee includes the physical
card. (See Section 15-40(a)(5) of the Act.)
2) The
annual renewal fee for an agent ID card is $100. (See Section 15-45(d)(2) of
the Act.)
3) The
late fee for renewal of an agent ID card is $50.
4) The fee
for the issuance of a replacement agent ID card is $50.
5) The
fee to restore an agent ID card is $100. (See Section 15-40(b) of the Act.)
d) Agent
ID Card Application. Prior to performing the duties of an agent within a
dispensing organization, an agent ID card application shall be submitted by a
dispensing organization principal officer or agent-in-charge in a form or
manner provided by the Department.
1) Completed
applications shall include the following:
A) The
name of the dispensing organization employing the agent, and the address of the
dispensary;
B) A copy
of the applicant's valid driver's license or a State-issued identification;
C) Electronic
picture of applicant taken within 30 days of the application submission;
D) The
applicant's social security number;
E) The
application fee;
F) Department
background check authorizations in compliance with 410 ILCS 705/5-20. These
authorizations include Fingerprint Consent Forms and livescan vendor receipt
demonstrating that the agent applicant has applied for a fingerprint-based
criminal history records check. Applicants shall only have valid fingerprints taken
that are capable of being retrieved by the Department; and
G) Any
additional information requested by the Department necessary to verify the
identity of the applicant.
2) The
Department will issue an agent ID card if all of the criteria under subsection
(d)(1) is met and the applicant passes a background check. Applicants may
begin working at a dispensary once an application has been submitted. If the
applicant is notified of a deficiency in their application, the applicant must
submit the information or documentation requested within 30 calendar days of
the notification requesting the information or documents. If the applicant
fails to provide the requested documentation or information, the Department will
deny the issuing of the agent ID card, and the applicant may no longer enter
the dispensary except as a member of the public. Applicants may not work at
the dispensary after receiving a Notice of Intent to Deny Licensure as defined by
the Rules of Practice in Administrative Hearings (68 Ill. Adm. Code 1110.30).
3) The
Department will communicate with the applicant's contact information on file,
including the applicant's email address of record, the primary contact, and/or
the alternate contact associated with the application.
e) Agent Training
1) All individuals
who are required to apply as an agent shall annually complete eight hours of
training through an approved Responsible Vendor Program.
2) Individuals
required to apply as an agent shall complete the Responsible Vendor Program:
A) Within
90 calendar days of commencing initial employment at a dispensary; and
B) Within
45 calendar days before the individual's license renewal is due or within 45
calendar days after the individual's renewal has been approved; unless,
C) The individual
commences employment at a new dispensing organization within one year of that individual's
annual or renewal requirements in the above subsection (e)(2)(A) or (B).
3) Training
certifications from a provider who is not an approved responsible vendor provider
will not be accepted by the Department. An individual with a training
certificate that is not accepted by the Department is required to complete an
approved responsible vendor program within 20 days after the Department
provides notice of the deficiency. The Department will grant an extension to
the deadlines established in subsection (e) on an individual basis so long as
the individual demonstrates a good faith belief that a complete training
program was approved by the Department.
f) Agent Renewal and
Restoration
1) All
agent ID cards shall expire one year from the date the agent ID card is
issued. An agent shall submit an online renewal application to renew the agent
ID card no later than 30 calendar days preceding the card's expiration date.
2) As
part of an agent's renewal, the agent shall certify to the Department that they
are in compliance with the required annual responsible vendor program training.
3) An
agent seeking restoration of a license due to termination of employment or
expiration of the underlying license shall have the license restored upon
request to the Department and payment of the required fee. A restored agent
must comply with subsection (d) upon beginning employment.
4) At
any time after the successful completion of any term of suspension, placement
on probationary status or other disciplinary action taken by the Department
with regards to any agent ID card, the agent may file a petition for
restoration in accordance with 68 Ill. Adm. Code 1110.30.
g) Agent Duties and
Prohibitions
1) All individuals
registered as an agent are subject to the codes of conduct and grounds for
discipline identified in Sections 1291.60 and 1291.70. The Department may
suspend, revoke, or otherwise discipline an agent's license, registration,
and/or agent ID card for a violation of the Act or this Part.
2) An individual
registered as an agent shall not otherwise be registered as an agent-in-charge
under Section 1291.25.
3) An agent
shall not dispense cannabis or cannabis-infused products to other agents or
employees of the dispensing organization if the purchasing agent or employee is
on duty. For the purposes of this subsection, an
employee is on-duty when they are being compensated for their work, including
any paid lunch or break.
4) Agents
shall not consume cannabis or cannabis-infused products on the premises of the
dispensing organization.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.25 AGENT-IN-CHARGE FEES, APPLICATION, AND CREDENTIALING
Section 1291.25 Agent-In-Charge Fees, Application, and
Credentialing
a) The
agent-in-charge shall be a principal officer or 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 dispensary
agents, recordkeeping, inventory, dispensary agent training, and compliance
with the Act and this Part. Managing includes participation
in affairs also includes the responsibility for maintaining all files subject
to inspection by the Department at the dispensary. (Section 15-95 of the
Act) AICs may delegate some of their duties to agents registered under Section
1291.20.
b) Communications
with the Department. The Department will only communicate with the AIC's email
address the Department has on record, or with a third-party so long as a
third-party authorization form is submitted. In order to change its contact
information, an AIC must submit a request to the Department from the email
address the Department has on record. If the current email address is
inaccessible, the AIC must submit a certification attesting the inaccessibility
and requesting the change.
c) AIC
Fees. The fees for AIC are as follows. All fees are nonrefundable and all
monies collected under the Act shall be deposited in the Cannabis Regulation
Fund in the State Treasury.
1) The
application fee for an AIC identification card is $100. This fee includes the
physical card.
2) The
annual renewal fee for an AIC identification card is $100.
3) The
late fee for renewal of an AIC identification card is $50.
4) The fee
for the issuance of a replacement AIC identification card is $50.
5) The fee
to restore a terminated AIC identification card is $100.
d) AIC
Application. Prior to performing the duties of an AIC within a dispensing
organization, an AIC application shall be submitted by the applicant in a form
or manner provided by the Department.
1) The application
shall include, but not be limited to the following:
A) The
name of the dispensing organization employing the AIC, and the address of the
dispensary;
B) A copy
of the applicant's valid driver's license or a State issued identification;
C) Electronic
picture of applicant taken within 30 days of the application submission;
D) The
applicant's social security number;
E) The
application fee;
F) Department
background check authorizations in compliance with 410 ILCS 705/5-20. These
authorizations include Fingerprint Consent Forms and livescan vendor receipt
demonstrating that the applicant has applied for a fingerprint-based criminal
history records check. Applicants shall only have valid fingerprints taken
that are capable of being retrieved; and
G) Any
additional information requested by the Department necessary to verify the
identity of the applicant.
2) The
Department will issue an AIC identification card if all of the criteria under
subsection (d)(1) is met and the applicant passes a background check.
Applicants may begin working at a dispensary once an application has been
submitted. If the applicant is notified of a deficiency in their application,
the applicant must submit the information or documentation requested within 30
calendar days of the notification requesting the information or documents. If
the applicant fails to provide the requested documentation or information, the
Department will deny the issuing of the AIC identification card, and the
applicant may no longer enter the dispensary except as a member of the public.
Applicants may not work at the dispensary after receiving a Notice of Intent to
Deny Licensure as defined by the Rules of Practice in Administrative Hearings (68
Ill. Adm. Code 1110.30).
3) The
Department will communicate with the applicant's contact information on file,
including the applicant's email address of record, the primary contact, and/or
the alternate contact associated with the application.
e) AIC Training
1) AICs
shall annually complete eight hours of training through an approved responsible
vendor program.
2) AICs
shall complete the responsible vendor program:
A) Within
90 calendar days of commencing initial employment at a dispensary; and
B) Within
45 calendar days before the individual's annual renewal is due or within 45
calendar days after the individual's renewal has been approved; unless,
C) The individual
commences employment at a new dispensing organization within one year of that individual's
annual or renewal requirements in the above subsection (e)(1) or (e)(2).
3) Training
certifications from a provider who is not an approved responsible vendor provider
will not be accepted by the Department. An individual with a training
certificate that is not accepted by the Department is required to complete an
approved responsible vendor program within 20 days after the Department
provides notice of the deficiency. The Department will grant an extension to
the deadlines established in subsection (b) on an individual basis so long as
the individual demonstrates a good faith belief that a complete training
program was approved by the Department.
f) AIC Renewal and
Restoration
1) All
AIC identification cards shall expire one year after the date they are issued.
The holder of a card may renew the card 45 calendar days preceding the
expiration date by submitting a renewal application and paying the required
renewal fee.
2) AICs
shall certify to the Department that they are in compliance with the required
annual responsible vendor program training.
3) An
AIC seeking restoration of a license due to termination of employment or
expiration of the underlying license shall have the license restored upon
request to the Department and payment of fee required.
4) At
any time after the successful completion of any term of suspension, placement
on probationary status or other disciplinary action taken by the Department
with regards to any AIC license, the licensee may file a petition for
restoration in accordance with 68 Ill. Adm. Code 1110.30.
g) AIC Duties and
Prohibitions
1) All individuals
registered as an AIC are subject to the codes of conduct and grounds for
discipline identified in Sections 1291.60 and 1291.70, as well as subsection (h).
The Department may suspend, revoke, or otherwise discipline an AIC's license,
registration, and/or agent ID card for a violation of the Act or this Part.
2) An AIC
is responsible for notifying the Department of a change in the employment
status of all dispensing organization agents within five 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. (Section 15-95(e) of
the Act)
3) An
AIC shall work at least 32 hours per week at their assigned dispensary in order
to qualify as "full-time" for the purposes of this Part.
4) An AIC
is responsible for notifying the Department of a change in the employment
status of all dispensing organization agents within five 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. (Section 15-95(e) of the
Act)
5) An
AIC is responsible for notifying the Department of any changes made to the approved
vendor list.
6) An
AIC is responsible for ensuring the daily inventory count as required by
Section 1291.310(e) is completed.
7) An AIC
is responsible for managing the dispensary.
8) An
AIC is responsible for implementing the dispensary's records retention policy,
including: the preparation, obtaining, or keeping records, logs, reports, or
other documents in connection with Act and this Part; and for, upon request by
the Department, making any documents immediately available for inspection and
copying by the Department, the Department's authorized representative, or
others authorized by law to review the documents. (See Section 15-135(e) of
the Act.)
h) AIC
Disciplinary Actions. In addition to any action initiated pursuant to Sections
1291.60 and Section 2191.70, the Department may deny an application or
renewal or discipline or revoke an agent-in-charge identification card for any
of the following reasons in accordance with the Act and 20 ILCS
2105/2105-130:
1) Submission
of misleading, incorrect, false, or fraudulent information in the application
or renewal application;
2) Violation
of the requirements of the Act or this Part;
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 five 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 [20 ILCS 2105] or any incident listed in
the Act or this Part following the issuance of an agent-in-charge
identification card;
11) Dispensing
to purchasers in amounts above the limits provided in the Act; or
12) Delinquency
in filing any required tax returns or paying any amounts owed to the State of
Illinois. (Section 15-95(i) of the Act)
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.30 PRINCIPAL OFFICER FEES, APPLICATION, AND CREDENTIALING
Section 1291.30 Principal Officer Fees, Application, and
Credentialing
a) In
addition to any individuals identified in the dispensing organization's by-laws
as principal officers, the following individuals are considered principal officers
of a dispensing organization and shall register and be approved by the
Department:
1) Those
individuals who meet the definition of a "principal officer" as
defined in the Act and this Part, however, an individual does not need to
register as a Principal Officer solely because of that person's close
relationship or familial tie to the holder of a Financial Interest in a
dispensing organization;
2) Managers
of a management services contractor who have entered into an agreement with a dispensing
organization under Section 1291.210(f)(4). Managers include but are not
limited to board members and corporate officers.
3) If a
corporation, the officers of the corporation;
4) If a
partnership, the partners;
5) If a
limited liability company, the members and managers of the limited liability
company;
6) If an
association or cooperative, the members of the association or cooperative;
7) If a
joint venture, the individuals who signed the joint venture agreement; and
8) If a
business organization other than the types listed in subsections (a)(1) through
(5), the members of the business organization.
9) If a
trust has any interest in a dispensing organization license, the dispensing organization
must disclose to the Department the trustee and all beneficiaries of and participants
in the trust, on a form or manner prescribed by the Department. Trust
beneficiaries and participants may be required to register as principal officers
if they meet the definition of a principal officer. The Department may not
approve a trust if any trust beneficiary or participant is a person that is
otherwise prohibited from having an ownership interest in the entity.
b) Communications
with the Department. The Department will only communicate with the principal officer's
email address the Department has on record, or with a third-party so long as a
third-party authorization form is submitted. In order to change its contact
information, a principal officer must submit a request to the Department from
the email address the Department has on record. If the current email address
is inaccessible, the principal officer must submit a certification attesting to
the inaccessibility and requesting the change.
c) Principal
Officer Fees. The fees for a principal officer are as follows. All fees are
nonrefundable. All monies collected under the Act shall be deposited in the
Cannabis Regulation Fund in the State Treasury.
1) The
application fee for a principal officer agent identification card is $100.
This fee includes the physical card.
2) The
annual renewal fee for a principal officer agent identification card is $100.
3) The
late fee for renewal of a principal officer agent identification card is $50.
4) The
fee for the issuance of a replacement principal officer agent identification
card is $50.
5) The
fee to restore a terminated principal officer agent identification card is
$100.
d) A
principal officer is not required to complete a responsible vendor program if
the principal officer does not otherwise meet the requirements in Section
1291.20(a).
e) Principal
Officer Application. A principal officer application shall be submitted by the
dispensing organization in a form or manner provided by the Department. Principal
officer applications shall be submitted for all new principal officers and at
any time an application is needed pursuant to Section 1291.211. Principal officer
applications shall include, but not be limited to, the following:
1) The
name and license number of the dispensing organization employing or associated
with the principal officer, and the address of the dispensary;
2) Unless
the background check exception under subsection (f) applies, Department
background check authorizations in compliance with 410 ILCS 705/5-20. These
authorizations include fingerprint consent forms and livescan vendor receipt
demonstrating that the principal officer applicant has applied for a
fingerprint-based criminal history records check. Applicants shall only submit
valid fingerprints capable of being retrieved by the Department;
3) A
copy of the applicant's valid driver's license or a State-issued identification;
4) Electronic
picture of applicant taken within 30 days of the application;
5) The
applicant's social security number;
6) The
application fee;
7) A
certification that the individual is tax compliant pursuant to 410 ILCS
705/45-20.
8) A
certification that the individual is compliant with all other aspects of
Article 2105 of the Civil Administrative Code of Illinois [20 ILCS 2105/2105];
and
9) Any
additional information requested by the Department in the verification process.
f) For
all changes of ownership or sales of a license pursuant to subsection 1291.211,
each proposed principal officer must also submit to the Department background
check authorizations as part of its principal officer applications in
compliance with Section 1291.30(e).
1) The
Department may waive the requirement for fingerprint consent forms and livescan
vendor receipt if the underlying transaction is a transfer, as that term is
defined in this Part.
2) The
Department may also waive the requirement for fingerprint consent forms and
livescan vendor receipt if the principal officers have submitted principal officer
applications within the previous 12 months of the closing date of the change of
ownership or the sale of the license.
g) Principal Officer
Renewals and Restoration
1) All
principal officer agent identification cards shall expire one year from the
date they are issued. The holder of a card may renew the card 45 calendar days
preceding the expiration date by submitting a renewal application and paying
the required renewal fee.
2) A
principal officer agent seeking restoration of a license that has terminated or
expired shall have the license restored upon request to the Department and
payment of fee required.
3) At
any time after the successful completion of any term of suspension, placement
on probationary status or other disciplinary action taken by the Department
with regards to any agent license, the licensee may file a petition for
restoration in accordance with 68 Ill. Adm. Code 1110.30.
h) Principal Officer Duties
and Prohibitions
1) A
principal officer not in compliance with the requirements of the 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 in accordance with the Act and 20 ILCS
2105/2105-130. (Section 15-50(h) of the Act)
2) All individuals
registered as a principal officer are subject to Sections 1291.60 and 1291.70.
3) Principal
officers are prohibited from assigning their principal officer license.
4) Principal
officers are prohibited from using their principal officer license as
collateral to secure an existing or prospective debt.
i) Principal Officer
License Limitations
1) A person
or entity shall not be a principal officer, have a financial interest, or hold
any legal, equitable, ownership, or beneficial interest, directly or
indirectly, in more than 10 dispensing organizations. (See Section 15-36(c) of
the Act.)
2) The
Department will issue a Notice of Intent to Issue a Suspension Order to all dispensing
organizations held by any person or entity or entities that the Department
determines is a principal officer and/or holds a financial interest in more
than 10 Adult Use Dispensing Organization Licenses, as well as the individual principal
officer, in violation of Section 15-36(c) of the Act. The notice shall specify
the reason for the intended action and notify the dispensing organization and
the principal officer that they have 20 calendar days after the date the notice
is mailed or emailed to the address of record, to present the Department with a
written response contesting the intended action. The Department will rescind
the Notice of Intent to Issue a Suspension Order if the dispensing organization
and the principal officer demonstrate, and include documentation that supports,
one of the following scenarios:
A) The person
or entity has been incorrectly identified as a principal officer of more than
10 dispensing organizations and/or having a financial interest in more than 10 dispensing
organizations; or
B) The person
or entity is no longer a principal officer of more than 10 dispensing organizations
and/or no longer has financial interest in more than 10 dispensing organizations,
as supported by proof of resignation letters and current tables of organization,
ownership, and control.
3) If
the Department does not receive a written response that establishes one of the
grounds provided in subsection (i)(2) within 20 calendar days after the date
the notice was issued, the Director shall issue an order suspending the license
of each dispensing organization in which the person or entity is a principal officer
and/or has a financial interest.
4) The dispensing
organizations may file for restoration of its license as provided in Section
1291.90 once the person or entity is no longer a principal officer or has a
financial interest in more than 10 dispensing organizations.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.50 TIED APPLICANT LOTTERY CONDUCTED IN 2021
Section 1291.50 Tied Applicant Lottery Conducted in 2021
a) A
tied applicant may qualify as an eligible applicant subject to the following:
1) A
tied applicant is prohibited from becoming an eligible applicant if a principal
officer of the tied applicant is a principal officer of more tied applicants
than the number of remaining available licenses. For example, if an individual
is a principal officer of four tied applicants and there are two remaining
available licenses, no more than two of those tied applicants may become
eligible applicants.
2) A
tied applicant is prohibited from becoming an eligible applicant if a principal
officer of a tied applicant resigns after the conclusion of the scoring process
period.
3) A
tied applicant is prohibited from becoming an eligible applicant if, after the
conclusion of the declination period identified in subsection (b), a principal
officer of the applicant is a principal officer of more tied applicants than
the number of remaining available licenses.
b) A
tied applicant may decline to become an eligible applicant by informing the
Department within five business days after the conclusion of the scoring
process. The declination must be submitted on forms approved by the
Department.
c) If,
at the conclusion of the scoring process period, there are two or more eligible
applicants, the Department may distribute the remaining available licenses by
lot subject to the following:
1) The
Department shall publish a list of eligible applicants at least five business
days before the day the remaining available licenses are distributed.
2) The
drawing by lot for all remaining available licenses will occur on the same day.
3) For
each BLS region, the Department will draw a number of eligible applicants equal
to five times the number of remaining eligible applicants.
4) Within
each BLS region, the first eligible applicant drawn will have the first right
to a remaining available license. The second eligible applicant drawn will
have the second right to a remaining available license. The same pattern will
continue for each subsequent eligible applicant drawn.
5) The
process for distributing remaining available licenses will be recorded by the
Department in a format selected by the Department.
6) If,
upon being selected for a remaining available license, the eligible applicant
has a principal officer that is a principal officer in more than 10 Early
Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use
Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses,
the licensees and the eligible applicant listing that principal officer must
choose which license to abandon pursuant to Section 15-36(d) of the Act, and
notify the Department in writing within the timeframe identified in 1291.50(b).
If the eligible applicant or licensees do not notify the Department as
required, the Department will refuse to issue to the eligible applicants all
remaining available licenses obtained by lot in all BLS regions.
7) All
remaining available licenses that have been abandoned shall be distributed to
the next eligible applicant drawn by lot. If there are no additional eligible
applicants, the license shall be awarded to the applicant receiving the next
highest number of application points in the BLS region.
(Source: Amended at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.60 UNPROFESSIONAL, DISHONORABLE, OR UNETHICAL CONDUCT
Section 1291.60 Unprofessional, Dishonorable, or
Unethical Conduct
Unprofessional, dishonorable, or unethical conduct includes,
but is not limited to, the following actions and/or omissions:
a) Failing
to establish and maintain effective controls against the theft or diversion of
cannabis;
b) Committing, or
attempting to commit, theft or diversion of cannabis;
c) Failing
to follow rules and procedures established by the dispensing organization;
d) Failing
to comply with law enforcement agencies, other state, local or federal
agencies, or the Department;
e) Discriminating
in any manner against a person or group based on religion, race, creed, color,
gender, gender identity, sexual orientation, age, disability or national
origin;
f) Selling
products to a medical cannabis patient who is a minor in violation of the
Illinois Department of Public Health rules (77 Ill. Adm. Code 946.280);
g) Selling
or attempting to sell products to an individual under age 21 or failing to
establish or maintain effective controls against selling cannabis to an individual
under age 21;
h) Misuse
or attempted misuse of an agent ID card, and/or medical cannabis patient card,
including, but not limited to: operating under an expired agent ID card,
and/or medical cannabis patient card, falsely presenting oneself as a licensed
agent, AIC, principal officer, and/or medical cannabis patient;
i) Tampering
with, falsifying, altering, modifying or duplicating an agent ID card, and/or
medical cannabis patient card, or any attempt thereof;
j) Misrepresentation
or attempt to misrepresent cannabis and/or cannabis-infused product, including,
but not limited to, weight, quality, percentage of THC, or efficacy;
k) Failing
to report to the Department that the dispensing organization has received
notice in any form or from any person, that cannabis or cannabis-infused
products produced in a licensed cultivation center, craft grower, or infuser
organization has failed a test performed by a laboratory within two calendar
days. Tests may include, but are not limited to, all information contained
within the laboratory testing rules found at 8 Ill. Adm. Code 700;
l) Allowing
an individual into a limited access area who is not permitted into a limited
access area, as that term is defined in the Act;
m) Engaging
in activity that requires a license under the Act or this Part while not
holding an active license;
n) Making or filing a
report or record that the individual knows to be false;
o) Intentionally
or negligently failing to file a report or keep records as required by the Act
or this Part;
p) Knowingly
selling or transferring cannabis using a patient's medical cannabis card after
the death of the person who holds the medical cannabis card;
q) Failing
to keep a dispensary in sanitary condition, including, but not limited to,
failing to keep the dispensary free from insects, rodents and/or vermin; or
from mold and/or fungus; and/or complying with local health code requirements;
r) Billing or charging for
quantities of cannabis different than was dispensed;
s) Demonstrating
actual or potential inability to dispense under the Act or this Part with
reasonable skill, safety or judgment;
t) Engaging in activities
that cause actual harm to any member of the public;
u) Dispensing
cannabis after the use by date on the label of cannabis;
v) Dispensing
defective cannabis which shall include, but is not limited to, cannabis which
has failed any laboratory testing, cannabis that has expired, cannabis that has
been tampered with, or cannabis that otherwise poses a threat to public safety;
w) Knowingly aiding or
assisting another in any of the above violations; or
x) Any violation of the Act
or this Part.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.70 GROUNDS FOR DISCIPLINE
Section 1291.70 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
non-disciplinary action against any licensee, may impose a fine for any
of the actions listed in this subsection (a). Fines may not exceed $20,000
for each violation.
1) Material
misstatement in information furnished to the Department;
2) Violations
of the Act or this Part;
3) Obtaining
an authorization or license by fraud or misrepresentation;
4) A
pattern of conduct that demonstrates incompetence or that the applicant or
licensee 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 the Act or
this Part;
6) Failing
to respond to a written request for information by the Department within 30
calendar days;
7) Engaging
in unprofessional, dishonorable, or unethical conduct, such as those
criteria under Section 1291.60, or of a character likely to deceive,
defraud, or harm the public;
8) Adverse
action by another United States jurisdiction or foreign nation; a certified
copy of the record of the action taken by another jurisdiction being prima
facie evidence thereof. This includes, but is not limited to, an adverse
action by another state agency, U.S. jurisdiction, or foreign jurisdiction
against a principal officer of a dispensing organization;
9) A
finding by the Department that the licensee, after having their 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 AIC 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 [20
ILCS 2105/2105];
11) Excessive
use of or addiction to alcohol, narcotics, stimulants, or any other chemical
agent or drug demonstrating an inability to carry out the responsibilities
of a license-holder with reasonable skill, safety, and judgment under the Act;
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 14 calendar days, any adverse action
taken against the dispensing organization, or its agent, by a licensing
authority with 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, including email
addresses, within 10 business days of the change;
19) Disclosing
customer names, personal information, or protected health information in
violation of any State or federal law;
20) Operating
a dispensary without or prior to obtaining a license from the Department;
21) Performing
duties authorized by the Act prior to receiving a license to perform
such duties;
22) Dispensing
cannabis when prohibited by the Act or this Part;
23) Any
fact or condition that, if it had existed at the time of the original
application for the license, would have warranted denial of the license;
24) Permitting
a person without a valid agent ID card to perform licensed activities
under the Act;
25) Failure
to designate a full-time AIC as required by Article 15 under
the Act; for the purposes of the AIC, "full-time" means an employee
who works for at least 32 hours per week;
26) Failure
to provide the training required by Section 15-40(3)(i) of the Act
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;
29) Failing
to prevent diversion, theft, or loss of cannabis; (Section 15-145 of the
Act)
30) Shielding a dispensing organization's ownership
and control from the Department. (See Section 15-50(d) of the Act.) Shielding
ownership and control includes but is not limited to: failing to properly
disclose and register all individuals who meet the definition of a principal
officer; failing to submit current and accurate tables of organization, ownership,
and control; submitting false or misleading information regarding principal
officers, ownership and control, or tables of organization, ownership, and control
to the Department or to a unit of local government, State agency, other State,
third-party, or as otherwise required by law; or any other similar action; and
31) Carrying
more than 40% of products available for sale from a single source. (See Section
15-70(p)(5) of the Act.) The Department shall calculate inventory percentages
over a monthly average.
b) The
Department may approve a corrective action plan for any licensee. Any approval
of a corrective action plan is at the discretion of the Department. In
approving a corrective action plan, the Department may consider any remedial
actions undertaken by the licensee, including but not limited to: the licensee's
cooperation in resolving the matter; if the licensee has initiated any
mitigating actions; the licensee's past practices; the licensee's
self-reporting; and any other factors otherwise specified in 20 ILCS
2105/2105-130(c).
c) All
fines and fees imposed under this Section shall be paid within 60 calendar days
after the effective date of the order or citation imposing the fine or as
otherwise specified in the order or citation. (See Section 15-145(b) of the
Act.)
d) All
proceedings for disciplinary action shall adhere to the rules for practice in
Administrative Hearings under 68 Ill. Adm. Code 1110.
e) Upon
receipt of a circuit court order establishing that an AIC or principal officer
holding an agent ID 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 [405 ILCS 5], the Department shall suspend that card.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.90 DISCIPLINARY AND NON-DISCIPLINARY ACTIONS AND PETITIONS FOR REHEARING OR RECONSIDERATION PURSUANT TO SECTION 55-50 OF THE ACT
Section 1291.90 Disciplinary and Non-Disciplinary
Actions and Petitions for Rehearing or Reconsideration Pursuant to Section
55-50 of the Act
a) Disciplinary Action
Initiated by the Department
1) The
Department may initiate a disciplinary action against a dispensing organization
or any cannabis business establishment license under its jurisdiction,
including any license issued pursuant to Sections 1291.15, 1291.20, 1291.25, or
1291.30, for any violation of the Act or a rule adopted in accordance with the
Act, including Sections 1291.60 and 1291.70.
2) For
the purposes of this subsection (a), a "disciplinary action" includes
but is not limited to: a complaint filed by the Department, an intent to deny
a license, and a refusal to renew a license. Disciplinary actions may or may
not include the imposition of a monetary fine. All disciplinary actions taken
by the Department are a matter of public record.
3) If a
license issued pursuant to Sections 1291.15, 1291.20, 1291.25, or 1291.30, or
any other cannabis business establishment regulated by the Department has any
disciplinary action initiated against it by the Department, proceedings for
that disciplinary action and administrative hearings shall adhere to 68 Ill. Adm.
Code 1110 and the Administrative Review Law [735 ILCS 5/Art. III].
4) Notice
for any disciplinary action taken shall comply with the provisions of 68 Ill. Adm.
Code 1110.20.
5) At
any time after the successful completion of a minimum term of indefinite
probation or suspension issued by the Department, including those licenses
issued pursuant to Sections 1291.15, 1291.20, 1291.25, or 1291.30, the licensee
may file a petition for restoration in accordance with 68 Ill. Adm. Code
1130.30.
6) If
the Department suspends, permanently revokes, or otherwise disciplines 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 Program Act, the
Department may consider the suspension, permanent revocation, or other
discipline of the medical cannabis dispensing organization license. (Section
15-15(o) of the Act)
b) Non-Disciplinary Orders
and Non-Disciplinary Actions
1) In
lieu of or in addition to any disciplinary action initiated by the Department,
the Department may, in its discretion, negotiate the terms of and enter into
any non-disciplinary orders with a licensee. Non-disciplinary orders are
non-public.
2) In
lieu of or in addition to any disciplinary action initiated by the Department, the
Department may, in its discretion, issue a non-disciplinary
action, including a citation, for minor violations of the Act or this
Part. 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, and that a hearing is requested, the Department may
withdraw the citation and instead file a complaint. 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. (Section 15-140 of the Act)
c) Petitions for Rehearing
or Reconsideration Pursuant to Section 55-50 of the Act
1) Within
20 business days after notification of any order or decision by the Department
regarding a dispensing organization's license or a conditional license, a dispensing
organization or conditional licensee may file with the Department a Petition
for Rehearing or Reconsideration of the order or decision. This subsection
does not apply to any recommendations made by an Administrative Law Judge under
68 Ill. Adm. Code 1110, which are not orders or decisions.
2) Petitions
shall include a brief summary of the facts and legal arguments and shall not
exceed five pages unless for good cause shown.
3) Upon
receipt of a petition, the Department shall notify the petitioner of the
briefing schedule, which shall be as follows, unless otherwise extended:
A) Petitioner
has seven calendar days to file a brief or memorandum in support of its
petition. Briefs or memorandums must not exceed 10 pages, except for good cause
shown. This page limitation does not include any exhibits which may accompany
the brief or memorandum.
B) The
Department has seven calendar days to file its response. Responses must not
exceed 10 pages, except for good cause shown. This page limitation does not
include any exhibits which may accompany the brief or memorandum.
C) After
the Department files its response, the dispensing organization has seven
calendar days to file any reply. Replies must not exceed 10 pages, except for
good cause shown.
D) The
Department may extend the briefing schedule of subsections (c)(3)(A) through
(c)(3)(C) for an additional 30 calendar days upon good cause shown and prior
written notice to the petitioner.
4) After
the petitioner files its reply or if its response goes unanswered after 10
calendar days, the Director shall issue a final order. This final order is a final
administrative decision under Section 55-55 of the Act.
5) If
the Department fails to act on the petition within 30 calendar days, or the date
the time for rendering a decision was extended for good cause shown, the
original order or decision of the Department is a final administrative decision
under Section 55-55 of the Act. (See Section 55-50 of the Act.)
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SUBPART A: GENERAL PROVISIONS
SECTION 1291.95 TAX DELINQUENCY
Section 1291.95 Tax Delinquency
a) The
Department will deny issuance or renewal of a Conditional Adult Use Dispensing
Organization License or Adult Use Dispensing Organization License if any
principal officer, board member, and/or person having a financial or voting
interest of 5% or greater in the licensee or applicant is delinquent in filing
any required tax return or paying any amount owed to the State of Illinois.
b) The
Department will notify the applicant or licensee of any determination by the Illinois
Department of Revenue that any principal officers, board members, and/or
persons having a financial or voting interest of 5% or greater in the licensee
or applicant are delinquent in filing any required tax return or paying any
amount owed to the State of Illinois.
c) Upon
notification of tax delinquency being sent by the Department to the applicant
or licensee, the applicant or licensee shall have 60 days to provide the
Department proof that the applicant or licensee is no longer delinquent in
filing any required tax return or paying any amount owed to the State of
Illinois, as determined by the Illinois Department of Revenue.
d) If
after 60 days the applicant or licensee has not provided the Department proof
that the applicant or licensee is no longer delinquent in filing any tax return
or paying any amount owed to the State of Illinois, the Department will deny
issuance or renewal of a conditional license or Adult Use Dispensing
Organization License.
(Source: Amended at 45 Ill. Reg. 16320,
effective December 7, 2021)
SUBPART B: RESPONSIBLE VENDOR PROGRAM
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.100 APPLICATION AND APPROVAL PROCESS
Section 1291.100 Application and Approval Process
a) Before
any entity can offer a responsible vendor program, the entity shall first apply
to and receive approval for the program from the Department and pay the
applicable fee. The application submission window is the period between August
1st and August 15th of every odd-numbered year. If the
date falls on a holiday or weekend in which case the window is extended to the
next business day. The application submission window shall close at 5 PM
Central Time on the final day on which applications are accepted.
b) All responsible
vendor provider approvals will expire on September 30 of each odd-numbered
year. Approvals are not subject to renewal. All current responsible vendors
must reapply during the application submission window to remain an approved program.
c) Applications
for approval shall be submitted on forms provided by the Department and shall
include:
1) The
first and last name of each responsible vendor trainer currently employed by
the program and the following document for each current trainer:
A) A
resume and/or a curriculum vitae;
B) A
written statement detailing the trainer's relevant experience; and
C) A
signed certification from the trainer that they do not hold an ownership
interest in a cannabis business establishment, unless the trainer was approved
in the 2021 cycle in which case, the Department will allow the trainer to
proceed;
2) A
general outline of the responsible vendor program;
3) All training
materials and curriculum consistent with Section 1291.120;
4) A
blank copy of the pre-test and post-test required by Section 1291.120(a)(2);
5) A
signed statement from each individual with an ownership interest in the applicant
confirming that the individual does not hold an ownership interest in a cannabis
business establishment nor is the individual owner an agent, employee, or affiliate
of a cannabis business establishment or an affiliated entity of a cannabis
business establishment, unless the individual is a member of an applicant which
was approved in the 2021 cycle in which case, the Department will allow the an
Individual to be approved; and
6) The
application fee of $2,000.
d) The
application shall be signed by a representative of the entity applying to be a responsible
vendor provider certifying that all information contained in the application is
true and accurate.
e) All
required materials shall be submitted during the application submission
window. The Department will not accept applications any other time. Early or
late applications will not be accepted.
f) The
Department may refuse to issue an approval to any applicant:
1) Who is
unqualified to perform the duties required of a provider;
2) Who
fails to disclose or makes misrepresentations of any information called for in
the application;
3) Who
fails to provide all required application materials; or
4) Who
does not demonstrate knowledge of the rules and laws for dispensing cannabis in
Illinois or demonstrates a misunderstanding of the rules and laws.
5) If an
application is submitted in the application window, the Department may inform
the applicant of a deficiencies in the application. An applicant may modify
their training materials to meet the above requirements for 30 days following the
notice. If the applicant is unable or unwilling to modify the training
materials, then the Department shall deny the approval. If the Department
denies the approval, it shall provide a detailed description of the reasons for
the denial.
g) The
Department will send approval notices to successful applicants who meet the
requirements of this Section. Approved responsible vendor providers may begin
offering training upon receipt of the approval notice. Only responsible vendor
providers approved by the Department can provide a responsible vendor program.
h) An
approval for a responsible vendor provider shall be valid only for the provider
named in the application. An approval is not transferable or assignable.
i) A responsible
vendor provider may not subcontract or engage with an outside third-party to
offer any of its training.
j) If
the responsible vendor provider hires new trainers who were not previously
disclosed at the time of the provider's original application of subsection (c)(1),
the provider shall submit the required information and documents of any new
trainers to the Department within five calendar days after hiring the new
trainer.
k) The
Department may rescind its approval of a responsible vendor provider that
allows an individual or entity that has not been disclosed to the Department to
offer its training course.
l) The
Department shall deny a responsible vendor provider application where the
provider or proposed trainer holds an ownership interest in a cannabis business
establishment or is the individual owner an agent, employee, or affiliate of a cannabis
business establishment or an affiliated entity of a cannabis business
establishment.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.110 CURRICULUM REQUIREMENTS
Section 1291.110 Curriculum Requirements
a) The
curriculum for a responsible vendor program shall include, at a minimum, the
following topics:
1) 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 overconsumption, and appropriate responses in the event
of overconsumption. (Section 15-40(i)(3)(i) of the Act) This topic shall
specifically include information on the health risks associated with the use or
abuse of cannabis, how cannabis can affect an individual's health, dosing, the
criteria and severity for cannabis use disorder listed in the Diagnostic and
Statistical Manual of Mental Disorders, fifth edition ("DSM-5"), and
the contact information for the Illinois Poison Center. The criteria for
Cannabis Use Disorder listed in DSM-5 can be found at https://thriveworks.com/help-with/addiction/marijuana-addiction-cannabis-use-disorder/
and are also enumerated in this subsection (a)(1). The DSM-5 defines a mild
cannabis use disorder as having the presence of 2-3 of the criteria within the
last twelve months, moderate is 4-5 in the last twelve months, and severe is 6
or more within the last twelve months.
A) Cannabis
is often taken in larger amounts or over a longer period than was intended.
B) There
is a persistent desire or unsuccessful efforts to cut down or control cannabis
use.
C) A
great deal of time is spent in activities necessary to obtain cannabis, use
cannabis, or recover from its effects.
D) Craving,
or a strong desire or urge to use cannabis.
E) Recurrent
cannabis use results in failure to fulfill role obligations at work, school, or
home.
F) Continued
cannabis use despite having persistent or recurrent social or interpersonal
problems caused or exacerbated by the effects of cannabis.
G) Important
social, occupational, or recreational activities are given up or reduced
because of cannabis use.
H) Recurrent
cannabis use in situations in which it is physically hazardous.
I) Cannabis
use continues despite knowledge of having a persistent or recurrent physical or
psychological problem that is likely to have been caused or exacerbated by
cannabis.
J) Tolerance,
as defined by either:
i) a
need for markedly increased cannabis to achieve intoxication or desired effect;
or
ii) a
markedly diminished effect with continued use of the same amount of the
substance.
K) Withdrawal,
as manifested by either:
i) the characteristic
withdrawal syndrome for cannabis; or
ii) cannabis is taken to
relieve or avoid withdrawal symptoms.
2) Training
on laws and regulations on driving while under the influence and operating a
watercraft or snowmobile under the influence. (Section 15-40(i)(3)(ii) of
the Act) This topic shall specifically include information on possible
penalties for refusing a chemical test and the level of concentrations of
tetrahydrocannabinol that can form the basis for a driving under the influence
conviction;
3) Sales
to minors prohibition. (Section 15-40(i)(3)(iii) of the Act) This topic shall
include penalties levied under Section 10-20 of the Act and Section 6-20 of the
Illinois Liquor Control Act of 1934 [235 ILCS 5].
4) Quantity
limits on sales to purchasers. (Section 15-40(i)(3)(iv) of the Act) This
topic shall include information on the purchasers and patient limits as
provided in Section 10-10 of the Act and Section 10(a) of the Compassionate Use
of Medical Cannabis Program Act [410 ILCS 130];
5) Acceptable
forms of identification. (Section 15-40(i)(3)(v) of the Act) This topic shall
specifically include information on the acceptable forms of identification for:
A) Verifying
age as provided in Section 10-20(e) of the Act;
B) Verifying
residency;
C) The
forms of identification that cannot serve as evidence of the purchaser's state
of residence; and
D) Information
on the proper methods for checking an ID.
6) Safe
storage of cannabis, including information about preventing the accidental
consumption by minors by storing cannabis in a locked place and/or in child
resistant containers; (Section 15-40(i)(3)(vi) of the Act)
7) Compliance
with all inventory tracking system regulations. (Section 15-40(i)(3)(vii))
This topic shall include information regarding the requirements of Section
15-75 of the Act and shall explain the difference between the State
Verification System and any commercial inventory system a dispensing organization
may use to track inventory. Additionally, this topic must highlight the
importance of verifying the physical inventory in the dispensary against the
inventory reported in the State Verification System;
8) Waste
handling, management, and disposal. (Section 15-40(i)(3)(viii) of the Act)
This topic shall include information on the proper disposal and destruction of
cannabis waste in accordance with Section 15-90 of the Act;
9) Health
and safety standards. (Section 15-40(i)(3)(ix) of the Act) This topic
shall include information including, but not limited to, the following: safe
and healthy working conditions for employees including worker rights and
protections guidance issued by the Occupation Safety and Health Administration,
and health and safety guidelines issued by the Illinois Department of Public
Health and local health departments. It shall also include information
regarding any specific cannabis-related public health and safety standards,
guidelines, mandates, or orders that may be in place at the time of the training;
10) Security
surveillance requirements. (Section 15-40(i)(3)(xi) of the Act) This topic
shall specifically include information on where surveillance cameras should be
located in a dispensary to ensure that all required areas are covered and where
cameras are prohibited by law (e.g., bathrooms and locker rooms).
Additionally, this topic shall include information regarding the Department's
and Illinois State Police's (ISP's) ability to access all surveillance cameras
remotely and at any time, and that all recordings must be saved for a period of
a least 90 calendar days;
11) Permitting
inspections by State and local licensing and enforcement authorities. (Section
15-40(i)(3)(xii) of the Act) This topic shall specifically include instruction
on allowing inspections by the Department, ISP, and local law enforcement
officials, and the best practices for verifying with the relevant agencies that
those individuals are authorized to inspect the dispensary;
12) Purchaser
privacy. This topic shall specifically include instruction on HIPAA
protections for medical cannabis patients, the prohibition on collecting an
adult use purchaser's personal information without the purchaser's consent, and
maintaining a purchaser's confidentiality; and
13) Packaging
and labeling requirements. This topic shall include the packaging and labeling
information provided in Section 55-21 o the Act and 8 Ill. Adm. Code 1000.420
or their successor provisions.
b) Providers
have a continuing obligation after they are approved to update their curriculum
within 30 calendar days of the effective date of any amendment to the Act or this
Part that alters the accuracy of their curriculum. Any updates to the
curriculum shall be submitted to the Department for approval before the provider
includes the amended curriculum in its course.
c) After
a provider has been approved, it may update its curriculum to reflect changes
in the industry, scientific knowledge, or for any other reason. Any updates to
the curriculum must be submitted to the Department for approval before the provider
includes the amended curriculum in its course.
d) Failure
to submit any updated materials, as required in subsections (b) and (c), may
result in the Department rescinding its approval of the provider.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.120 PROGRAMMATIC REQUIREMENTS
Section 1291.120 Programmatic Requirements
a) To
maintain approval by the Department, a responsible vendor provider must meet
the following requirements:
1) Provide
a safe and secure environment for responsible vendor instruction, which may include
in-person, live-streamed, or pre-recorded classes, or a mix of the above.
2) Provide
a pre-test and post-test to participants to assess the program's effectiveness
and to assess any increase in knowledge in the curriculum areas described in
Section 1291.110. The responsible vendor provider shall make a copy of the
pre-test, post-test, or a copy of any individual's examination or related
records available to the Department upon request. Passage of the written
examination shall require a score of 70%. A participant who fails to score at
least 70% on the post-test shall not receive a certificate of proof of
completion.
3) Maintain
a roster of individuals who have completed a responsible vendor program. The
roster shall include the participant's name, address, telephone number,
employers, and date of birth of each individual who completed the program,
including those who passed and failed the program, and the date each individual
completed the program. The roster shall be made available to the Department
upon request.
4) Issue
a certification of completion to each individual who successfully completes the
program indicating that the individual has completed an approved Department responsible
vendor training program. The certification must include:
A) Individual's
first and last name;
B) Number
of completed hours of instruction;
C) Trainer's
name;
D) Date of
completion;
E) Name of
the approved responsible vendor provider; and
5) Submit
a semi-annual report to the Department by July 15 for the reporting period of
January 1 through June 30 and by January 15 for the reporting period of July 1
through December 31. Each report shall contain the following information:
A) The
number of participants trained during the reporting period;
B) The
number of classes scheduled and completed during the reporting period and the
locations of each class;
C) The
total fees charged by the provider during the reporting period; and
D) The
number of dispensaries represented by participants completing a responsible vendor
program and the respective counties of those dispensaries.
6) Submit
a fee schedule indicating the cost of the program, if any. The responsible vendor
provider must notify the Department within five business days of any change to
the fee schedule.
7) Notify
the Department before a new trainer begins providing instruction of the provider's
responsible vendor program. The notification shall include:
A) The
name of the responsible vendor provider;
B) The
name of the trainer;
C) The trainers'
resume and/or a curriculum vitae;
D) A
written statement detailing the trainer's relevant experience; and
E) A
signed statement from the trainer attesting that they do not hold an ownership
interest in a cannabis business establishment.
b) The
Department may attend any in-person or remote, real time online video
instruction at any time. Upon request, a provider must make any login
information or class places and times available to the Department.
c) Failure
to comply with this Section or any other provisions of the Act or this Part
will result in the Department withdrawing its approval.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.130 RESPONSIBLE VENDOR PROVIDER RECORDKEEPING
Section 1291.130 Responsible Vendor Provider
Recordkeeping
a) Responsible
vendor providers' records shall be maintained electronically and be available
for inspection by the Department upon request. The Department may audit any
records held by the responsible vendor at any time.
b) Responsible
vendor providers shall develop recordkeeping policies and procedures consistent
with this Part.
c) Responsible
vendor providers shall retain all records for at least three years from the
date of creation and shall include, but not be limited to, the following:
1) Program
training materials;
2) Enrollment
rosters and training records for registrants – records must include registrants
who successfully completed the program and those who did not complete or failed
the program;
3) Completed
program certificates for each successful individual;
4) Storage
and transfer of records. If a responsible vendor provider ceases operations
due to insolvency, revocation, bankruptcy or for any other reason, all records
must be preserved at the expense of the responsible vendor for at least three
years in a form and location in Illinois acceptable to the Department. The provider
shall retain the records longer if requested by the Department. The provider
shall notify the Department of the location where the records are stored or
transferred;
5) Approval
notifications from the Department; and
6) All
other records, policies, and procedures required by the Act and this Part.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.140 CLOSURE OF AN APPROVED PROGRAM
Section 1291.140 Closure of an Approved Program
The following procedures shall be followed for closure of an
approved responsible vendor provider and removal from the approved list. The responsible
vendor provider shall:
a) Notify
the Department, in writing, postmarked or emailed at least 30 calendar days in
advance of the closing date.
b) Notify
individuals who have completed or are in the process of completing the program
of the closure at least 15 calendar days in advance of the closing date and of
the location where their completion records will be maintained for at least three
years from the closing date.
c) Stop
enrolling individuals immediately and provide refunds in the full amount of the
program's fee to individuals who will be unable to complete the program.
d) Notify
the Department in writing the names of the persons responsible for the
maintenance of records for at least three years from the date of closure.
(Source: Added
at 48 Ill. Reg. 13377, effective August 20, 2024)
SUBPART C: CHANGES TO DISPENSING ORGANIZATIONS
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.200 COSMETIC AND NON-COSMETIC CHANGES TO DISPENSING ORGANIZATION OPERATIONS
Section 1291.200 Cosmetic and Non-Cosmetic Changes to
Dispensing Organization Operations
a) Cosmetic
changes to a dispensary do not require Department approval.
b) Cosmetic
changes are changes made to the physical appearance of the dispensing organization
not requiring structural changes to the building. Cosmetic changes include,
but are not limited to:
1) Painting;
2) Decorations;
3) Movement
of furniture or shelfing that does not block the view of an existing security
camera;
4) Movement
of any non-cannabis products such as clothing or stickers; or
5) Movement
of the storage of any non-cannabis products.
c) A dispensing
organization must obtain the Department's approval before making any
non-cosmetic changes to the dispensary.
d) Approval
for any proposed non-cosmetic change must be requested by the dispensing organization
in writing in a form or manner prescribed by the Department. If the Department
does not approve the proposed non-cosmetic changes, the dispensing organization
is prohibited from undertaking those changes.
e) For
the purposes of this Section, non-cosmetic changes include, but are not limited
to:
1) any
change which blocks the view of an existing security camera;
2) any
structural or non-structural change to the dispensing organization's floorplan;
3) any
change of the square footage of the dispensary;
4) any
structural change to the vault where cannabis or cannabis-infused products are
stored;
5) the
sealing off, creation of or relocation of a common entryway, doorway, passage
or other means of public ingress and/or egress, when the common entryway,
doorway, passage, or window alters or changes limited access areas, such as the
cultivation, harvesting, manufacturing, testing, or sale of cannabis within the
dispensing organization;
6) any
change which requires a local government permit; or
7) any
physical modification to the dispensary that impacts the operation of the dispensary
in a manner inconsistent with the plans previously submitted and approved by
the Department.
f) This Section
does not exempt dispensing organizations from complying with any local licensing
authority or local jurisdiction requirements regarding changes, alterations, or
modifications to the dispensary.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.210 CHANGE OF A LICENSE'S ENTITY OR OWNERSHIP OR CONTROL STRUCTURE AND THE SALE OR TRANSFER OF A LICENSE
Section 1291.210 Change of a License's Entity or
Ownership or Control Structure and the Sale or Transfer of a License
a) A
license issued by the Department shall be valid only for the specific dispensing
organization identified on the application and for the specific location
proposed and approved by the Department.
b) Any
proposed change of ownership or sale or transfer of a license must be requested
by the dispensing organization in a form or manner prescribed by the
Department. Upon review, the Department will approve a proposed change of
ownership or sale or transfer of a license that complies with the Act and this
Part. If the Department does not approve of the proposed changes, the dispensing
organization is prohibited from undertaking those changes.
c) The
Department shall receive approval from the current dispensing organization to
engage with the buyer regarding the Department's review and approval of any
change of ownership or sale or transfer of a license. Approval shall be on a
form or manner provided by the Department and made readily available on its
website.
d) As
used in this Section, a "sale" includes but is not limited to a
transaction to acquire at least 51% of the dispensing organization licenses
between an existing license holder and a buyer that is not already registered
as a principal officer on the affected licenses.
e) As
used in this Section, a "transfer" includes but is not limited to a
transaction to acquire a dispensing organization license, which results in a
change of at least 51% of the ownership structure of the dispensing organization,
between persons that are already registered as principal officers on the
affected licenses. A "transfer" shall not include a reallocation as
described in Section 1291.213(c).
f) As
used in this Section, a "change of ownership" means any or all of the
following, or any combination thereof:
1) Any
action which results in a change of at least 51% of the ownership structure of
the dispensing organization;
2) A
change in an employee identification number (EIN) associated with the dispensing
organization;
3) The
addition of a person that will have a revenue sharing arrangement with or
assume the responsibility for the debts of the dispensing organization;
4) Any
agreement or contract between a dispensing organization and a third-party MSC
in which the MSC offers its services or expertise to the dispensing organization
through an instrument, such as a management service agreement that does not
otherwise meet the exception for a consultant or conditional management service
agreement under Section 1291.214. If an agreement or contract between a dispensing
organization and a third-party exists that does not meet the limited exception
under Section 1291.214, then all individuals who meet the definition of a principal
officer under Section 1291.30 and the Act shall be approved by the Department
prior to the agreement or contract taking effect; or
5) Any
action which indicates a change in control over the dispensing organization.
In evaluating whether a person exerts "control" over a dispensing organization,
the Department will consider the totality of the evidence, including, but not
limited to, the following or any combination thereof:
A) Any
action which results in a person owning or controlling at least 51% of the dispensing
organization that does not otherwise qualify for an exemption under Section
1291.213, if any;
B) The person's
ability to materially influence and direct the operational and managerial
decisions of the dispensing organization including but not limited to corporate
decision-making, employment decisions, product selection, access to security
systems, advertisement decisions;
C) The
person is an immediate family member of one or more persons in control of the
dispensing organization and has a common purpose or motive relating to their
collective ability to materially influence and direct the operational and
managerial decisions of the dispensing organization. An "immediate family"
member as used herein shall mean a spouse (other than a spouse who is legally
separated from the individual under a decree of divorce or separate
maintenance), parents, siblings, and children whether by blood, marriage or
adoption; or
D) The person
has the ability to control the proxy machinery or to win a proxy contest;
E) The person
is a primary creditor or a guarantor, such as through a loan or guaranty
agreement, of the dispensing organization. As used in this subsection "primary
creditor" means a person who would receive an ownership interest requiring
registration as a Principal Officer in a dispensing organization upon a default
of a loan or other similar agreement.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.211 REQUIRED DOCUMENTS AND ACTIONS FOR CHANGE OF OWNERSHIP OR SALE OR TRANSFER OF A LICENSE APPLICATION
Section 1291.211 Required Documents and Actions for
Change of Ownership or Sale or Transfer of a License Application
a) When
requesting approval for a change of ownership or sale or transfer of a license,
the following documents or information shall be included as part of the
application for approval. The Department may request any other documents or
information to aid its review of the proposed transaction and dispensing organizations
are required to produce any document or information the Department requests.
1) Written
narrative identifying each impacted license, the current ownership of each
impacted license, the nature of the proposed transaction, and the proposed new
ownership structure as a result of the proposed transaction;
2) An
illustration of the proposed transaction that demonstrates the pre-transaction
structure, the transaction, and the post-sale structure;
3) Purchase
or transaction agreement;
4) Operating
agreement of the buyer that will hold the licenses if approved;
5) Articles
of incorporation of the buyer that will hold the licenses if approved;
6) If
the buyer operates any cannabis businesses within any non-Illinois
jurisdiction, certification from the jurisdiction of any non-Illinois
regulatory body stating the date of issuance of the license, and whether the
records of the regulatory body contain any record of disciplinary action taken
or pending, or proof from the buyer that after reasonable attempts the buyer
was unable to obtain certification;
7) Letters
of good standing from the jurisdiction in which the buyer is incorporated in,
or proof from the buyer that after reasonable attempts the buyer was unable to
obtain certification;
8) Table
of Organization, Ownership, and Control of the post-transaction ownership
structure. The table shall identify all intended proposed principal officers
and entities that through direct or indirect means, will manage, own, or
control the interest and assets of the license or medical registration holder.
If the entities have boards, all board members shall be identified. The Table
of Organization, Ownership and Control shall also identify the following
information:
A) The
proposed new management structure including:
i) the
name of each business entity;
ii) the
office or position held by each individual;
iii) the
percentage ownership interest of each individual and business entity; and
iv) if
the business entity has a parent company, the name of each parent company's principal
officers and the percentage ownership interest.
B) All business
entities identified in the table must identify each individual's title and
ownership share, regardless of whether they meet the definition of a principal officer.
C) If a business
entity identified in the table is a publicly traded company, the following
information shall be provided in the Table of Organization Ownership and
Control:
i) 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 the information is known or contained in 13D or 13G U.S. Securities and
Exchange Commission filings.
ii) 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.
9) All
proposed principal officers shall submit a principal officer application in
compliance with Section 1291.30;
10) If a
trust has any interest in a dispensing organization license, the dispensing organization
must disclose to the Department the trustee and all beneficiaries of/participants
in the trust, on a form or manner prescribed by the Department. Trust
beneficiaries and participants that meet the definition of a principal officer
must register as principal officers. The Department may not approve a trust if
any trust beneficiary or participant is a person that is otherwise prohibited
from having an ownership interest in the entity.
11) Any
relevant financial or ownership disclosures of the buyer, including, but not
limited, to any documents involving guaranties, trusts, financing agreements,
convertible debt arrangements, employment agreements, stock options, warrants,
grants, buy-sell agreements, inheritance, and/or gifting;
12) Updated
license materials, such as any amended policies and procedures, and any other
changes that may be made in accordance with Subpart D;
13) Any
dispensary name registrations, such as a DBA (doing-business-as);
14) Federal
tax identification issuance letter from the IRS for any entities holding
ownership of the licenses post-transfer;
15) If
change of ownership or sale or transfer involves a license that was required to
submit a community engagement plan as part of licensure, the buyer must provide
a community engagement plan that is the same or similar to the one provided as
part of the licensee's application (see Section 15-60(h) of the Act); and
16) The
Department may waive the submission of certain documents upon a showing of a
good faith attempt to comply, which may include a written explanation of the
steps taken to acquire those documents or why the submission of documents would
be not applicable.
b) If
the Department determines the application materials and proposed new principal officer
applications are complete, it will perform a site inspection of the dispensaries
before approving the sale and issuing the new dispensing organization
licenses. In determining the scope of this inspection, the Department may
consider the history for compliance of the dispensing organization and whether
the dispensing organization is subject to any ongoing monitoring.
c) All
outstanding Department-imposed fees and fines on the current license numbers
must be paid to the Department before the change of ownership or sale or
transfer of a license is approved.
d) The seller
shall deliver all business, training, and operational records to the buyer.
The buyer shall retain those records for five years from the transfer date.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.212 PROHIBITIONS AND DENIALS
Section 1291.212 Prohibitions and Denials
a) The
Department may deny a request for a change of ownership or sale or transfer of
a dispensing organization license for reasons including, but not limited to,
the following:
1) The
entity is attempting to sell or transfer a Conditional Adult Use Dispensing
Organization License.
2) The
entity is attempting to sell or transfer an Early Approval Adult Use Dispensing
Organization License ("same-site") issued under Section 15-15 of the
Act and Early Approval Adult Use Dispensing Organization Licenses at secondary
sites ("secondary site") issued under Section 15-20 of the Act.
3) The
proposed principal officers, entity, or entity's owners held a cannabis-related
registration and/or license that has been subjected to an adverse action by any
licensing jurisdiction in the United States or any foreign jurisdiction, any
governmental agency, any law-enforcement agency, or any court;
4) The
proposed principal officers, entity, or entity's owners, employees, agents or
representatives submitted information to the Department that was deceptive,
misleading, false, or fraudulent or that tended to deceive or create a
misleading impression whether directly or by omission or ambiguity;
5) The
proposed principal officers, entity, or entity's owner, employees, agents,
third-party agents, independent contractors, or representatives made statements
to any regulatory or governmental authority that are deceptive, misleading,
false, or fraudulent, or that tend to deceive or create a misleading
impression, whether directly, or by omission or ambiguity;
6) The
proposed principal officers, entity, or entity's owners have a conviction for
distribution of a controlled substance to a minor;
7) The
proposed principal officers, entity, or entity's owners conduct in Illinois or
another jurisdiction posed or could pose a risk to the public health, safety,
or welfare; and the risk posed by the proposed new ownership entity actions
relates or could relate to the operation of a cannabis business;
8) The
proposed principal officer's entity, or entity's owners have engaged in
unprofessional or unethical conduct in Illinois or any jurisdiction, regardless
of whether such conduct has resulted in any litigation, discipline, adverse
action, or settlement;
9) The
entity did not commit to the same or similar community engagement plan provided
as part of the original dispensing organization's application; or
10) The
change of ownership or sale or transfer of the license would result in a single
person or entity having a direct or indirect financial interest in more than 10
dispensing organization licenses, as prohibited by 410 ILCS 70/15-36(c).
b) Buyer
may agree to accept any Department-initiated encumbrances a dispensing
organization license may have besides a formal complaint initiated against the
license. If the dispensing organization licensee involved in a proposed change
of ownership or sale or transfer has a complaint filed against it by the
Department prior to or during the Department's review of the transaction, then the
Department's review of the change of ownership or sale or transfer of a license
shall cease until the corresponding case of the formal complaint is resolved.
c) If
the seller entered into an agreement with the Department, such as a consent order
or a non-disciplinary action as defined in Section 1291.60, the agreement may,
with the buyer's consent, transfer to the buyer and the new dispensing
organization license number unless otherwise resolved prior to the approval of
the change of ownership or sale or transfer of a license.
d) A buyer
or seller may withdraw a change of ownership or sale or transfer of a license
request at any time with notice provided to the Department in writing. The
Department shall inform the other party of the withdrawal in writing within
five calendar days after receiving the notice.
e) If a dispensing
organization fails to respond to a request or inquiry of the Department
regarding a proposed change of ownership or sale or transfer within 90 calendar
days of the request or inquiry, the change of ownership or sale or transfer of
a license will be considered withdrawn and the Department will provide written
notice to both buyer and seller. Any fees paid are non-refundable and shall be
paid at the time of application.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.213 EXCEPTIONS TO THE CHANGE OF OWNERSHIP REQUEST REQUIREMENT
Section 1291.213 Exceptions to the Change of Ownership
Request Requirement
The Department will consider the following to not be a
change of ownership or sale or transfer of a dispensing organization license:
a) Death,
Incapacity, and Receivership of a Principal Officer. The death, incapacity, or
receivership of a principal officer may not result in the change of ownership
or sale or transfer of the licenses for fee purposes, however; the dispensing organization
shall notify the Department of the affected principal officer within 10
business days of that principal officer's triggering event. The dispensing organization
shall provide the Department any updated necessary policies and procedures, Tables
of Organization, Ownership, and Control, and any other documents the Department
may require related to the change of ownership event.
b) Conversion.
A dispensing organization may combine with or convert, including, but not
limited to, under the Entity Omnibus Act [805 ILCS 415], for the exclusive
purpose of changing its entity jurisdiction to one of the states or territories
of the United States or the District of Columbia, its entity type or change the
legal name of an entity without filing a change of ownership or sale or
transfer of a license request. This exception applies only if the principal officers'
interests will remain the same after the combination, conversion, or change of
legal name, and there will not be any new principal officers (individuals or
entities). Within 14 calendar days of the combination, conversion, or change
of legal name the dispensing organization must submit the following to the
Department:
1) A copy
of the transaction documents;
2) A copy
of any documents submitted to the Illinois Secretary of State;
3) A
copy of any document submitted to the Secretary of State or similar regulator
of another state if the entity is organized under the laws of a state of the
United States other than Illinois, a territory of the United States, or the
District of Columbia;
4) Identification
of the dispensing organization's or principal owners' registered agents; and
5) Identification
of any principal officer for which disclosure is required by Section 1-10 of
Act and 68 Ill. Adm. Code 1291.10.
c) Reallocation
of Owner's Interests Among Remaining Principal Officers. A dispensing organization
may reallocate the ownership interests among existing principal officers if it
provides notification of the reallocation to the Department and there are no
new principal officers, or the reallocation does not otherwise result in a
change of ownership or sale or transfer of the license pursuant to Section
1291.210. A reallocation must meet the following requirements:
1) The
interests being reallocated results in a change of less than 51% of the
ownership structure of the dispensing organization;
2) All
interests are reallocated to other existing principal officers;
3) Only
consensual reallocations where all principal officers whose ownership
percentages will change agree to the reallocation. Proof that the transfer was
consensual may include that it was done in accordance with any bylaws,
membership agreement, or other similar business entity documents agreed to by
the owners or per affirmation.
4) If
any principal officer will not hold any interest or remain a principal officer
in a dispensing organization following the reallocation, that principal officer
shall return their dispensing organization agent ID card to the Department in
accordance with Section 15-40(d) of the Act; and
5) All principal
officers remain responsible for all actions of the dispensing organization
while they were a principal officer and are subject to administrative action
based on the same regardless of the reallocation.
d) Dissolution
of Intermediary Companies. The dissolution of any intermediary companies of a
licensee shall not be considered a change of ownership or sale or transfer of a
license so long as the ultimate parent company of the license holding entity or
entities remains the same, the ownership percentages of the existing principal officers
remain the same, and no new intermediary companies or principal officers are
added to the existing ownership structure. If any holding companies of a
dispensing organization are dissolved, the licensee shall submit an updated
Table of Organization, Ownership, and Control to the Department for the
Department's approval prior to any change taking effect.
e) Addition
of Intermediary Companies. The addition of any intermediary companies of a
licensee shall not be considered a change of ownership or sale or transfer of a
license so long as the ultimate parent company of the license holding entity or
entities remains the same, the ownership percentages of the existing principal officers
remain the same, and no new principal officers are added to the existing
ownership structure. If any holding companies are added to the ownership
structure of a dispensing organization, the licensee shall submit an updated
Table of Organization, Ownership, and Control to the Department for the Department's
approval prior to any change taking affect.
f) Change
of Executive Officer or Member of the Board of Directors. A change of
ownership or sale or transfer of a license application is not required for the
removal or addition of an executive officer or member of the board of directors
of a dispensing organization so long as the change does not otherwise qualify
as a change of ownership or sale or transfer of a license as outline in Section
1291.210. However, the addition of an executive officer or member of the board
of directors must be approved by the Department as a principal officer in
accordance with Section 15-60(b) of the Act prior to any change taking effect.
g) A
Consultant or Conditional Management Service Agreement ("CMSA") or Other
Similar Agreement That Is Executed Pursuant to Section 1291.214. If a CMSA or
similar agreement is submitted for review with terms that are not substantially
similar to those outlined in Section 1291.214, the agreement or contract will
be considered a change of ownership or sale or transfer of a license pursuant
to Section 1291.210 and must proceed through the process outlined in Section
1291.211.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.214 CONSULTANT AND CONDITIONAL MANAGEMENT SERVICE AGREEMENTS EXCEPTION
Section 1291.214 Consultant and Conditional Management
Service Agreements Exception
a) Pursuant
to this Section, a dispensing organization or conditional licensee and a management
services contractor may contract for a consultant or Conditional Management
Service Agreement ("CMSA") that does not qualify as a change of
ownership or sale or transfer of a license under Section 1291.210 such that any
contractors are required to register as a principal officer of the underlying
licenses.
b) Services
provided under a CMSA may include, but are not limited to, management or
supervision, operations, technical assistance, consulting, hiring employees,
accounting, recordkeeping, leasing of equipment or real or intellectual
property, and provision of goods or materials.
c) A
CMSA is prohibited from being sold, assigned, or otherwise transferred to a
third-party.
d) Prior
to the execution of any CMSA submitted pursuant to this Section, a dispensing organization
or conditional licensee shall submit to the Department:
1) A third-party
authorization form;
2) A copy
of the CMSA and any related agreements between the parties; and
3) The operating
agreement of the management services contractor.
e) Dispensing
organizations and conditional licensees must get approval from the Department
prior to execution of a CMSA.
f) Dispensing
organizations and conditional licensees must obtain approval from the
Department prior to making any material changes to a CMSA. Prior to any
material change to a CMSA, the dispensing organization or conditional licensee
must submit to the Department, a copy of any proposed material changes to the
Management Services Agreement and any related agreements between the parties,
any proposed material changes to information detailing any renumeration paid,
or to be paid, to the management services contractor by the dispensing organization;
and any proposed material changes to any previously required submissions.
g) A
CMSA must clearly identify the licenses it applies to and contain the following
provisions to be approved by the Department in order to qualify for this
exception:
1) The
terms of the CMSA shall include a single, fixed fee and are prohibited from
including percentage-based commissions, profit-sharing, or interest rates;
2) A
CMSA shall acknowledge that the management services contractor and its owners,
principals, and staff who are engaged, directly or indirectly, in operating the
cannabis business, are supervised in those operations by the dispensing organization
and its principal officers;
3) A
CMSA shall acknowledge that the management services contractor and its owners,
principals, and staff do not have a security interest in the conditional
license;
4) A
CMSA shall acknowledge that the management services contractor and its owners,
principals, and staff do not have an ownership interest or any right, including
a future or contingent right, to obtain any ownership interest in the dispensing
organization or conditional license; and
5) A
CMSA for a Conditional Licensee shall automatically terminate upon the
Conditional Licensee being issued its 15-36 License. The term of the CMSA for
a 15-36 Licensee shall not exceed five years.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.215 DEATH, INCAPACITY, AND RECEIVERSHIP OF A PRINCIPAL OFFICER
Section 1291.215 Death, Incapacity, and Receivership of
a Principal Officer
a) In
the event of the death, incapacity, receivership, or other event rendering one
or more principal officer incapable of performing the duties associated with
the license, the principal officer, principal officers' successor in interest
(e.g., appointed guardian, executor, administrator, receiver, trustee), or dispensing
organization shall notify the Department in writing within 10 business days of
the triggering event. The notification shall be supported by proof, such as a
death certificate or court order, and shall be on a form or manner prescribed
by the Department.
b) As
soon as reasonably possible after a triggering event described in subsection
(a), and in order to continue the operations of the dispensing organization,
the Department may approve a successor in interest to act on behalf of the
affected principal officer. As used in this subsection, "successor in
interest" is an individual who has the authority to act on behalf of the
affected principal officer (e.g., appointed guardian, executor, administrator,
receiver, custodian, trustee), as documented by a court order or other similar
document appointing guardianship, receivership, administration or through a
will or trust. The successor in interest is subject to all terms and
conditions under which a principal officer is held to, however, the
Department's approval of the successor in interest creates no vested right to
the future approval as a principal officer for the successor in interest. The
Department may approve a successor in interest if the individual or the dispensing
organization submits the following:
1) The
name of the successor in interest;
2) The
name of the principal officer for which the successor in interest is succeeding
along with the corresponding principal officer license numbers;
3) The
phone number, mailing address, and email address of the successor in interest;
and
4) Documentation
demonstrating the following:
A) That
the principal officer is incapable of performing the duties associated with the
license including, but not limited to, a death certificate or court order;
B) That
the successor in interest is at least 21 years of age;
C) That
the successor in interest is not delinquent in filing any required tax return
or paying any amount owed to the State of Illinois as evidenced by the Illinois
Department of Revenue;
D) That
the successor in interest is the principal officers' legal successor as
evidenced by documentation such as a court order appointing guardianship,
receivership, or a will or trust agreement;
E) An
attestation that naming the successor in interest will not have the effect of
granting any of the owners or principal officers, including the successor in
interest, direct or indirect ownership or control of more than 10 adult use
dispensing organization licenses; and
F) If
the affected principal officer's ownership interest is held by a trust, that trust
shall be disclosed to the Department within 10 business days of the trust
receiving the impacted ownership interest in compliance with the trust
disclosure parameters in Section 1291.30.
c) The
Department will provide an approved successor in interest written approval to
continue operations for a specific period of time.
d) The
Department may request an updated Table of Organization, Ownership, and Control
in order to reflect a successor in interest.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.220 RELOCATION OF AN EARLY APPROVAL ADULT USE DISPENSING ORGANIZATION
Section 1291.220 Relocation of an Early Approval Adult
Use Dispensing Organization
License at a Same Site
a) Early
Approval Adult Use Dispensing Organizations ("Same-site Licensee")
whose licenses were issued pursuant to Section 15-15 of the Act may submit an
application on forms provided by the Department to relocate their dispensary.
1) Same-site
Licensees who apply to relocate their dispensaries to a new location pursuant
to this Part may be approved, subject to all other statutory and administrative
requirements, if:
A) the
proposed location is within the same geographic district, as those geographic
districts are defined in 68 IAC 1290.20, as the Same-site Licensee’s existing
associated medical cannabis dispensing organization registration issued under
the Compassionate Use of Medical Cannabis Program Act is authorized to operate;
and
B) the
Same-site Licensee’s existing location is within the boundaries of a unit of
local government that prohibits the retail sales of adult use cannabis; or
C) the
Same-site Licensee has obtained a signed statement from a city manager, village
president, mayor, corporate counsel, or other official from the unit of local
government where it is located approving the Same-site Licensee to relocate to
another location within that unit of local government. If the unit of local
government is a county, it must obtain signed statements from the county
executive, county president, corporate counsel, or other official from the
county board where it is located approving the Same-Site Licensee to relocate
to another location within that county.
2) The
Same-site Licensee shall submit the fee required for the relocation of its
existing associated medical registration. This is the only fee required for
the Same-site Licensee to relocate under this Section.
b) The
Department shall approve or deny an application to relocate under subsection
(a) within 30 days after receiving a completed application.
c) If
the Department does not approve or deny an application to relocate under subsection
(a) within 30 days after receiving a completed application, the application
shall be deemed to be approved.
d) If
the Department denies an application to relocate pursuant to subsection (a), it
shall do so in writing and provide a specific reason for the denial.
e) An
application to relocate shall be deemed complete upon submission of all
documents (e.g., zoning approval) required by the application form provided by
the Department.
f) If,
upon reviewing the application, the Department discovers any documentation
required by the Department’s application to relocate are missing, the
Department may request the missing documentation. In this case, the
application is not complete until the missing documentation is submitted.
g) After
receiving the Department’s approval to relocate under subsection (a), the
Same-site Licensee shall submit floorplans of the new location for the
Department’s approval in a form or manner prescribed by the Department and the
Act. The Department shall approve or deny the floorplans within 10 business
days of the Department's receipt of the floorplans.
h) Prior
to the commencement of operations at a new location that was approved by the
Department under subsection (a), the Same-site Licensee must also pass a
building and site inspection conducted by the Department to ensure compliance
with the Act. The Same-site Licensee shall request a building and site
inspection of the new site on forms provided by the Department. The Department
shall schedule a building and site inspection within 10 business days upon
receiving the Same-site Licensee's request for a building and site inspection.
(Source: Added at 46 Ill. Reg. 2660,
effective January 28, 2022)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.225 RELOCATION OF AN ADULT USE DISPENSING ORGANIZATION LICENSE
Section 1291.225 Relocation of an Adult Use Dispensing
Organization License
a) Adult
use dispensing organization licenses issued in a specific BLS region shall
remain in that BLS region, even if the license changes its ownership or is sold
or transferred, unless the Act specifically allows a license to change BLS regions
pursuant to Section 15-25(e-5) of the Act.
b) Adult
use dispensing organizations whose licenses were issued pursuant to Section
15-15 or Section 15-36 of the Act may submit an application on forms provided
by the Department to relocate their dispensary.
c) Dispensing
organizations that apply to relocate a dispensary to a new location pursuant to
this Section will be approved, subject to all other statutory and
administrative requirements, if:
1) The
proposed location is within the same BLS region, as defined in 68 Ill. Adm. Code
1291.10 that the dispensing organization's corresponding conditional license
was awarded in; or
2) The
proposed location is in the same geographic district as those geographic
districts are defined in 68 Ill. Adm. Code 1290.20, if the original dispensing organization
license was issued pursuant to Section 15-15 of the Act; and
3) The adult
use dispensing organization shall submit the fee required for the relocation of
its existing associated medical registration. This shall be the only fee
required for the same-site licensee to relocate.
d) The
Department shall approve or deny an application to relocate under subsection (b)
within 30 calendar days of receiving a completed application.
e) If
the Department does not approve or deny an application to relocate under subsection
(a) within 30 calendar days of receiving a completed application, the
application shall be deemed to be approved.
f) If
the Department denies an application to relocate pursuant to subsection (a), it
shall do so in writing and provide a specific reason for the denial.
g) An
application to relocate shall be deemed complete upon submission of all
documents required by the application form provided by the Department.
h) If,
upon reviewing the application, the Department discovers any documentation
required by the Department's application to relocate is missing, the Department
will request the missing documentation. In this case, the application is not
complete until the missing documentation is submitted.
i) After
receiving the Department's approval to relocate under subsection (a), the adult
use dispensing organization license shall submit floorplans of the new location
for the Department's approval in a form or manner prescribed by the
Department. The Department shall approve or deny the floorplans within 10
business days of the Department's receipt of the floorplans.
j) Prior
to the commencement of operations at a new location that was approved by the
Department, the adult use dispensing organization license must also pass a
building and site inspection conducted by the Department in accordance with Section
15-60(j)(5) of the Act. The adult use dispensing organization license shall
request a building and site inspection of the new site on forms provided by the
Department. The Department shall schedule a building and site inspection
within 10 business days upon receiving the adult use dispensing organization license's
request for a building and site inspection.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.230 CHANGES TO A CONDITIONAL ADULT USE DISPENSING ORGANIZATION LICENSE AND LOCATION PARAMETERS
Section 1291.230 Changes to a Conditional Adult Use
Dispensing Organization License and Location Parameters
a) A conditional
adult use dispensing organization license cannot be sold, transferred, or
assigned and the conditional license holder cannot in any way change its
ownership structure, including by removing or adding any principal officers,
except in the event of the death of a principal officer.
b) Notwithstanding
subsection (a), this prohibition does not preclude third parties who are not
registered as principal officers from investing in, lending to, or otherwise
providing capital to the conditional adult use dispensing organization license
holder.
c) Pursuant
to this Section, third parties are not required to register as principal officers
of the conditional adult use dispensing organization license holder so long as
any third party interest cannot be realized or otherwise vest until the
Conditional Adult Use Dispensing Organization License holder is issued a
corresponding Adult Use Dispensing Organization License under Section 15-36.
In order to realize that interest or have the interest vest, all third parties
are subject to the Department's approval processes under Section
15-60(b) of the Act, either through the sale or transfer of the Adult Use
Dispensing Organization License to the third party or through the third party's
registration and approval as principal officer to the Adult Use Dispensing
Organization License holder.
d) In
order to become operational, a conditional licensee shall be issued an adult use
dispensing organization license pursuant to Section 15-36 of the Act by the
conditional license's expiration date.
e) In
order to identify or find a physical location, a conditional licensee shall
provide proof of its physical location to the Department at least 30 days prior
to the conditional license's expiration date. Proof shall include, but is not
limited to, one of the following:
1) proof
of building ownership by the conditional licensee;
2) agreement
to purchase building or lease that is dependent on zoning or state license
approval;
3) signed
lease for the term of the initial license; or
4) proof
of zoning approval or application for zoning approval.
f) The
Department may rescind a conditional license even after submitting proof in
accordance with subsection (e), if, after an unreasonable time and considering
the totality of the conditional license's steps towards becoming operational,
the conditional licensee has not become operational as identified in subsection
(d).
g) A
conditional license holder shall provide evidence that the location is not
within 1,500 feet of an existing dispensing organization.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
SUBPART D: DISPENSING ORGANIZATION REQUIREMENTS
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.300 SECURITY REQUIREMENTS
Section 1291.300 Security Requirements
a) A dispensing
organization shall develop and implement a security plan to deter and prevent
improper entry into the dispensary and theft of cannabis or currency.
b) Security measures in the
plan shall include, but not be limited to, the following:
1) Establishing
a locked door or barrier between the dispensary's public entrance and the
limited access area;
2) Preventing
individuals from remaining on the premises if they are not engaging in activity
permitted by the Act or this Part. Any physical removal shall comply with State
and federal laws;
3) Maintaining
a policy that addresses the maximum capacity;
4) Dispensing
all cannabis from the restricted access area, which may include a pass-through
window into the vaults. Any pass-through window from the vault to the
restricted access area shall be capable of being closed and locked when not in
use and shall not contain an opening greater than 9 inches;
5) Storing
cannabis during all hours in an enclosed locked room or cabinet that is
accessible only to dispensing organization agents;
6) Storing
cannabis during non-operational hours in a locked reinforced vault room;
7) Storing
currency during non-operational hours in a locked reinforced vault room or
other location in a manner as to prevent diversion, theft or loss;
8) Keeping
the reinforced vault room securely locked and protected from unauthorized entry
at all times;
9) Keeping
an electronic daily log of dispensing organization agents who access the reinforced
vault room;
10) Maintaining
all locks and security equipment in good working order including a manual lock
on all doors leading to the exterior of the dispensing organization;
11) Maintaining
an operational security and alarm system at all times;
12) Preventing
keys from being left in locks or stored in a location accessible to individuals
other than specifically authorized personnel;
13) Maintaining
integrity of security systems, including, but not limited to, limiting access
to combination numbers, passwords or other security measures to specifically
authorized agents;
14) Ensuring
the dispensary interior and exterior premises are sufficiently lit to
facilitate surveillance;
15) Ensuring
that trees, bushes and other foliage outside of the dispensary premises do not
allow for an individual or individuals to conceal themselves and that trees,
bushes, and other foliage outside of the dispensary premises do not obstruct
the view of the perimeter of the dispensary;
16) Developing
policies and procedures for immediately securing all product and currency
following any instance of diversion, theft or loss of cannabis; for conducting
an investigation into the cause of the diversion, theft, or loss; and to
remediate any deficiencies that may have allowed the diversion, theft, or loss
to occur;
17) Developing
sufficient additional safeguards in response to any special security concerns,
or as required by the Department; and
18) Installing
counters which separate limited access areas from restricted access areas which
are at least 48" in height, except counters spanning up to 36" in
length may be reduced to no lower than 33" and not higher than 36" in
height. Dispensing organizations operating before January 1, 2023, are exempt
from this requirement until the time that they move locations.
c) A dispensing
organization shall provide additional security measures as needed and
appropriate for the community where it operates. (Section 15-100(f) of the
Act)
d) Restricted Access
Areas
1) All
restricted access areas must be identified by the posting of a sign that shall
be a minimum of 12" x 12" and that states "Do Not Enter –
Restricted Access Area – Authorized Personnel Only" in lettering no
smaller than 1" in height.
2) All
restricted access areas shall be clearly described in the floor plan of the
dispensing organization, in the form and format directed 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. (Section 15-100(g) of the Act)
e) Security and Alarm
Systems
1) A dispensing
organization shall have a security system designed to monitor, prevent and
detect unauthorized intrusion, and theft or loss of cannabis or currency. The
system shall use commercial grade equipment and be installed by an
Illinois-licensed private alarm contractor or private alarm contractor agency.
The system shall include, at a minimum:
A) A
perimeter alarm on all entry points to the dispensary;
B) Glass
break protection and security shatterproof film on perimeter windows;
C) A
failure notification system that provides an alert to designated dispensing organization
agents within five minutes of any operational failure of the surveillance
system. The alert must be by phone or text message;
D) A
sufficient number of panic and hold up buttons and alarms, a duress alarm, and
an after-hours intrusion detection alarm, each of which will directly or
indirectly notify the Public Safety Answering Point ("PSAP") for the
law enforcement agency having primary jurisdiction;
E) Security
equipment to deter and prevent unauthorized entrance into the dispensary,
including electronic door locks on the doors in or providing access to limited
and restricted access areas, and devices or a series of devices to detect unauthorized
intrusion. Dispensing organizations must have video surveillance capable of
producing images that allow for facial recognition at each door leading to the
exterior of the dispensary;
F) Video
surveillance monitors with 19-inch screens or larger;
G) Video
surveillance that provides unobstructed views of all enclosed dispensary areas,
unless prohibited by law. The surveillance equipment used must capture the
image, with clear and certain identification, of any person entering or exiting
the limited access area;
H) Video
surveillance that provides unobstructed views of all outside areas, the
storefront, and the parking lot. The surveillance equipment used must capture
the image, with clear and certain identification, of any person entering or
exiting the dispensary, the immediate surrounding area, and the license plates
of vehicles in the parking lot;
I) Video
surveillance at each point-of-sale terminal which captures the sale, the individuals,
and the computer monitors used for the sale. The surveillance equipment used
must capture the image, with clear and certain identification of any person
involved in the sale;
J) Video
surveillance, available for immediate viewing by the Department, that provides
24-hour recordings which are correctly time and date stamped. Recordings shall
be retained for no less than 90 calendar days, and may not be deleted without
Department approval if the dispensing organization is aware of the loss or
theft of cannabis; a pending criminal, civil or administrative investigation;
or a legal proceeding for which the recording may contain relevant information;
K) Video
surveillance that will immediately and at any time produce a clear, color still
photo from the surveillance video, either live or recorded;
L) Video
surveillance that will export still images in a JPG, BMP, GIF, or JPEG image
format. Exported video shall have the ability to be archived in a 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 a file format that can be played on a standard computer operating
system.
M) Any
video surveillance that is required to produce facial recognition compliant
images shall be at a minimum of 80 pixels per camera.
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 that
are essential to surveillance operations, law enforcement, security system
service personnel and Department personnel. A current list of authorized
dispensary agents and service personnel that have access to the surveillance
equipment must be available to the Department upon request.
4) All
security and video surveillance equipment shall be inspected and tested at
regular intervals, not to exceed one month from the previous inspection and
test 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) In
the event of a power outage, the dispensary shall ensure all access doors
remain secure and any video surveillance system remains fully operational for
no less than four hours.
7) The dispensing
organization must immediately report any security system outage to the
Department, including, but not limited to, any loss of video recordings, and
must submit an outage report in the form and format directed by the Department
within five calendar days after the outage.
f) All
electronic video surveillance monitoring must record at least the equivalent of
8 frames per second and be available to the Department and ISP 24 hours a day
in real-time via a secure web-based portal with reverse functionality.
g) A
dispensary shall have a reinforced vault built to the specifications of this
subsection (g), unless it is a dispensing organization which operated before
January 1, 2023. Dispensing organizations which operated before January 1,
2023, are exempt from this subsection (g) until the time that they move
locations:
1) The
walls, floors, and ceilings of a vault shall be constructed of:
A) At
least 8" of reinforced concrete; or
B) All of
the following:
i) 18-gauge
studs made of galvanized sheet metal meeting requirements of American Society
for Testing and Materials (ASTM) A1003;
ii) 9-gauge,
Type II, Class 1 carbon steel security mesh and attachment clips meeting ASTM
F1267 on either side of the studs; and
iii) Comparable
materials and standards as approved by the Department.
2) The
door and frame unit of the vault shall conform to the following specifications
or the equivalent: 30 man-minutes against surreptitious entry, 10 man-minutes
against forced entry, 20 man-hours against lock manipulation and 20 man-hours
against radiological techniques;
3) A
vault, if operations require it to remain open for frequent access, shall be
equipped with a "day-gate" which is self-closing and self-locking, or
the equivalent, for use during the hours of operation in which the vault door
is open;
4) The
walls or perimeter of a vault shall be equipped with an alarm, which upon
unauthorized entry transmits a signal directly to a central station protection
company, a local or State police agency which has a legal duty to respond or a
24-hour control station operation by the registrant; and
5) The
door of a vault shall be equipped with contact switches.
h) Approved
Vendor List. A dispensing organization shall submit a list to the Department
of the names and contact information of all service professionals who will work
at the dispensary for approval. The list shall include a description of the
type of business or service provided. Changes to the approved vendor list
shall be provided to the Department within five calendar days after any changes
are made. No service professional shall work in the dispensary until the individual's
name is provided to the Department on the approved vendor list and the
Department confirms approval. A dispensing organization may permit a service
professional who is not otherwise on the approved vendor list in the event of
an emergency and after a good faith attempt to obtain the Department's
pre-approval. In an emergency, the dispensing organization shall inform the
Department as soon as possible of the event and the service professional's
role. Examples of service professionals include, but are not limited to,
cannabis transporters, IT professionals, security professionals, cleaning
services, and other individuals whose work requires them to be within the
actual dispensary.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.301 MINORS PROHIBITED IN DISPENSARY
Section 1291.301 Minors Prohibited in Dispensary
a) Unless
otherwise authorized pursuant to the Compassionate Use of Medical Cannabis
Program Act or the Act, no persons under the age of 21 shall be allowed entry
into a dispensing organization.
b) Each dispensing
organization is responsible for checking and verifying customer identification
prior to any customer entering the limited access area. Each dispensing organization
is responsible for all individuals entering the dispensing organization.
c) Each dispensing
organization shall use an electronic reader or electronic scanning device to
scan a purchaser's government-issued identification if scanning the identification
is possible in accordance with Section 10-20 of the Act. Government-issued
identification that cannot be scanned may still be accepted at the dispensing organization's
discretion.
d) Dispensing
organizations may accept identification that does not contain an expiration
date in order to verify the age of a purchaser, so long as the dispensing organization
is otherwise able to verify the validity of the identification. This does not
include an expired identification document, unless otherwise permitted by law.
e) As
used in this Section, "government-issued identification" means a
document issued by a unit of government, foreign or domestic, which identifies,
at a minimum, the name, image, and date of birth of the Individual.
"Government-issued identifications" include, but are not limited to,
passports; driver's licenses; temporary visitor driver's licenses; consular
identification cards; international election identification cards; tribal
identification cards and indigenous reservation government identification
cards; visas; permanent resident cards; and municipal, local, or state
identification cards.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.305 SIGNAGE
Section 1291.305 Signage
All of the required signage in this Part shall be hung no
lower than 4' and no higher than 9' from the floor unless the height
restrictions are not feasible to comply with and shall not be obstructed.
a) All dispensing organizations
must display placards that state the following:
1) "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.";
and
2) "Adult
Use Purchasers are not required to disclose personal information to the dispensing
organization in order to purchase cannabis or cannabis infused products.
Dispensing organizations must allow anonymous purchases, if requested."
b) Any dispensing
organization that sells edible cannabis-infused products must display placards
that state the following:
1) "Edible
cannabis-infused products were produced in a kitchen not subject to public
health inspections that may also process common food allergens."; and
2) "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."
c) All dispensing
organizations shall prominently post notices inside the dispensing organizations
identifying the following activities that are strictly prohibited and
punishable by law:
1) No
minors permitted on the premises unless the minor is a minor qualifying patient
under the Compassionate Use of Medical Cannabis Program Act;
2) Distribution
of adult use cannabis to persons under the age of 21 is prohibited;
3) Transportation
of cannabis or cannabis products across state lines is prohibited;
4) Cannabis
remains federally illegal; and
5) Smoking
cannabis in a public place is prohibited.
d) Dispensing
organizations licensed under Section 115 of the Compassionate Use of Medical
Cannabis Program Act shall post the signage in subsection (c)(1) notice as
written. Organizations licensed under Section 15-65 of the Cannabis Regulation
and Tax Act shall post the subsection (c)(1) notice stating, "no minors
permitted on the premises".
e) All
of the required signage in this Part shall be no smaller than 24" tall by
36" wide, with typed letters no smaller than 2". 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.
f) Handouts shall not be
used in place of the required signage.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.308 PURCHASER PRIVACY
Section 1291.308 Purchaser Privacy
a) Dispensing
organizations are prohibited from obtaining, collecting, maintaining,
recording, and/or storing a purchaser's personal information from the
transaction itself without the purchaser's consent. Any identifying or
personal information of a purchaser obtained or received during a transaction
shall not be retained, used, shared, or disclosed for any purpose except as
authorized by the Act or this Part. Dispensaries shall ensure their internal
systems delete all purchaser personal information within 24 hours after any
purchase is completed.
b) Personal
information includes, but is not limited to, a purchaser's name, address,
birthdate, and/or email address.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.310 INVENTORY CONTROL SYSTEM
Section 1291.310 Inventory Control System
a) A dispensing
organization AIC shall have primary oversight of the dispensing organization's
State Verification System and Point of Sale System. The inventory Point of
Sale System shall be real-time, web-based and accessible by the Department 24
hours a day, seven days a week.
b) A dispensing
organization shall establish an account with the State Verification System that
documents:
1) Each
sales transaction at the time of sale;
2) Each
day's beginning inventory, acquisitions, sales, disposal and ending inventory;
3) All
acquisitions of cannabis and cannabis-infused products from a cultivation
center, craft grower, infuser, transporter, or dispensary including:
A) A
description of the products including the quantity, strain, variety and batch
number of each product received;
B) The
name and license identification number of the cultivation center, craft grower,
infuser, transporter, or dispensary providing the cannabis and cannabis infused
products;
C) The
name and license identification number of the cultivation center or transporter
agent delivering the cannabis;
D) The
name and license identification number of the dispensing organization agent
receiving the cannabis; and
E) The
date of acquisition.
4) The
disposal of cannabis, including:
A) A
description of the products being disposed, including the quantity, strain, variety,
batch number and reason for the cannabis being disposed;
B) The
method of disposal; and
C) The
date and time of disposal.
c) A dispensing
organization shall use a point of sale system that establishes and maintains an
interface with the State Verification System to track the sale of cannabis,
consistent with the Act and this Part.
d) Upon
cannabis delivery, a dispensing organization shall confirm the product's name,
strain name, weight, identification number, and quantity on the manifest matches
the information on the cannabis product label and package. The product name
listed and the weight listed in the State Verification System shall match the
product packaging.
e) An
AIC shall conduct a daily physical count of all inventory, except as permitted
under subsection (e)(4) and also conduct a reconciliation documenting and
balancing cannabis inventory by confirming the State Verification System
matches the dispensing organization's point of sale system and the amount of
physical product at the dispensary. The daily physical count shall include
checking the use-by date for all inventory and quarantining any expired
product.
1) A dispensing
organization must receive Department approval prior to completing an inventory
adjustment. It shall provide a detailed reason for the adjustment. Inventory
adjustment documentation must be kept at the dispensary for two years from the
date performed.
2) If,
after the daily inventory reconciliation the dispensing organization identifies
an imbalance in the amount of cannabis 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 two 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. The dispensing organization
shall complete its investigation within 10 business days. If the investigation
is not complete within 10 business days, the dispensary shall notify the
Department of next steps and a contemplated deadline. The Department may
extend the investigation period upon a showing of good cause.
3) If,
after the daily inventory reconciliation or through other means, the dispensing
organization identifies an imbalance in the amount of cannabis due to theft,
criminal activity or suspected criminal activity, the dispensing organization
shall immediately determine the manner in which the theft or criminal activity
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
ISP in writing.
4) A dispensing
organization is not required to perform a daily physical count of bulk cannabis
inventory if stored pursuant to the requirements in this Part. The dispensing organization
must verify daily that any bulk cannabis inventory meets the storage
requirements of this subsection (e)(4). If the packaging of bulk
cannabis inventory becomes torn or tampered with it must be recounted and
resealed before the completion of the next daily physical count. Bulk cannabis
inventory must be counted monthly by physically removing each item from the
sealed containers, counting each item, and checking the expiration date. Bulk
cannabis inventory must then be resealed and labeled with the last date it was
counted. All expired product must be destroyed in accordance with Section
1291.325. For the purposes of this Section "bulk cannabis inventory"
means cannabis and cannabis-infused products stored in the reinforced vault in
clear, heat-sealed or taped shrink wrap bags or sheeting that is labeled with
the date the inventory is sealed, the last four digits of the batch number, the
number of items contained within the wrapping and the date the inventory was
last counted. Bulk cannabis inventory is included in the dispensing organization's
total inventory available for sale.
5) The
AIC shall certify their consideration of the factors in this subsection (e)(5) on
a form provided by the Department.
f) A dispensing
organization shall maintain the documentation required in this Section in a
secure locked location at the dispensing organization.
g) A dispensing
organization shall ensure the oldest stock of cannabis and cannabis-infused
product is dispensed first. A dispensing organization may deviate from this
requirement upon Department approval.
h) If
cannabis is abandoned at a dispensing organization, it shall be accounted for
and destroyed in compliance with this Part.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.320 RETURNS AND REFUNDS
Section 1291.320 Returns and Refunds
A dispensing organization may create a policy allowing for
the return and refund of damaged, inadequate or erroneously dispensed cannabis
subject to the following provisions:
a) The
policy shall not permit the resale of any returned cannabis product if the
tamper-evident seal has been broken or the product has left the premises.
b) Any
returned product must be entered into the State Verification System within five
calendar days after the return.
c) All
returned product that has either left the premises or has the tamper-evident
seal broken must be destroyed in accordance with Section 15-90 of the Act.
(Source: Added
at 48 Ill. Reg. 13377, effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.325 DESTRUCTION OF CANNABIS AND CANNABIS INFUSED PRODUCTS
Section 1291.325 Destruction of Cannabis and Cannabis
Infused Products
a) Any
cannabis and cannabis-infused products to be destroyed shall be destroyed by
rendering it unusable following the methods set forth in this Section.
b) Any
product to be destroyed shall be destroyed on the same day and time weekly
unless otherwise approved by the Department on a case-by-case basis. A dispensing
organization shall notify the Department and ISP of this day and time at the
initial registration inspection. Any change in the day and time must be
communicated to the Department and ISP at least three business days before the
implementation.
c) The
allowable method to render cannabis waste unusable is by grinding and
incorporating the cannabis waste with other ground materials so the resulting
mixture is at least 50% non-cannabis waste by volume. Other methods to render
cannabis waste unusable must be approved by the Department before
implementation. Material used to grind with the cannabis falls into two
categories, compostable waste and non-compostable waste.
1) Compostable
Mixed Waste: Cannabis waste to be disposed as compost feedstock or in another
organic waste method (e.g., anaerobic digester) may be mixed with the following
types of waste materials:
A) Food
waste;
B) Yard
waste; or
C) Other
wastes as approved by the Department (e.g., agricultural material,
biodegradable products and paper, clean wood, fruits and vegetables, plant
matter).
2) Non-compostable
Mixed Waste: Cannabis waste to be disposed in a landfill or by another
disposal method may be mixed with the following types of waste materials:
A) Paper
waste;
B) Cardboard
waste;
C) Plastic
waste;
D) Soil;
or
E) Other
wastes as approved by the Department (e.g., non-recyclable plastic, broken
glass, leather).
d) Cannabis
waste rendered unusable following the methods described in this Section can be
disposed. Disposal of the cannabis waste rendered unusable may be delivered to
a permitted solid waste facility for final disposition. Examples of acceptable
permitted solid waste facilities include:
1) Compostable
Mixed Waste: Compost, anaerobic digester or other facility with approval of
the jurisdictional health department.
2) Non-compostable
Mixed Waste: Landfill, incinerator or other facility with approval the
jurisdictional health department.
e) All
cannabis flower product shall be weighed, recorded and entered into the State
Verification System prior to rendering it unusable. This event shall be
performed by an AIC, or under the supervision of the AIC, and conducted under
video surveillance.
f) Electronic
documentation of destruction and disposal shall be maintained for a period of
at least five years.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.330 RECALLS AND PRODUCT SAFETY
Section 1291.330 Recalls and Product Safety
a) Voluntary Recalls
1) Each dispensing
organization shall have policies and procedures governing voluntary recalls of
cannabis products.
2) All
voluntary recall policies and procedures shall include the following at a
minimum:
A) 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. This may include outreach via media,
as necessary and appropriate;
B) A
mechanism to identify and contact the adult use cultivation center, craft
grower, or infuser that manufactured the cannabis;
C) 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;
D) Policies
for the collection of recalled product;
E) Policies
for destruction of any recalled cannabis product that comply with Section
1291.325; and
F) Entry
of recalled product into the State Verification System prior to destruction.
(Section 15-65 of the Act)
3) Voluntary
recalls may be initiated at any time as determined by the dispensing organization.
b) Mandatory Recalls
1) The
Department may require dispensing organizations to conduct a recall of a
cannabis product that is adulterated, misbranded, or otherwise poses a danger
to public safety.
2) The dispensing
organization shall maintain policies and procedures for a mandatory recall that
shall include, at a minimum:
A) 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. This may include outreach via media,
as necessary and appropriate;
B) A
mechanism to identify and contact the adult use cultivation enter, craft
grower, or infuser that manufactured the cannabis;
C) 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;
D) Policies
for the collection of recalled product;
E) Policies
for destruction of any recalled cannabis product that comply with Section
1291.325; and
F) Entry
of recalled product into the State Verification System prior to destruction.
(Section 15-65 of the Act)
3) The
Department may issue a mandatory recall and require dispensing organizations to
immediately cease distribution of a cannabis product and recall the cannabis if
the Department determines both of the following:
A) The
cultivation, manufacture, distribution, or sale of the cannabis or cannabis
product creates or poses an immediate and serious threat to human life or
health; and
B) A
recall is necessary to ensure the health and safety of affected cannabis
consumers.
4) The
Department may require a dispensing organization to quarantine product without
destruction for a minimum of 72 hours or until further notice of the
Department, whichever occurs later, if the Department suspects the product is
adulterated, misbranded, or otherwise poses a danger to public safety.
5) The
Department may require a dispensing organization to submit cannabis product
that is suspected to be adulterated, defective, misbranded, or otherwise poses
a danger to public safety to laboratory testing from a testing laboratory
approved by the Illinois Department of Agriculture. If the laboratory testing
demonstrates the cannabis product is safe for consumption the Department may
approve the dispensing organization to move the product back into active stock.
A) For
the purposes of this Section, "adulterated" shall include, but is not
limited to, cannabis that has been tampered with by having the tamper-proof
seal broken, cannabis that has been altered after it has been packaged, or
cannabis that has materially changed condition since laboratory testing.
B) For
the purposes of this Section, "defective" shall have the same meaning
as in Section 1291.60.
6) In
ordering a mandatory recall of cannabis pursuant to this Section, the director
of the Department shall issue an order to that effect, which shall also include
affidavits sufficient to lay out the factual basis for the recall.
7) Whenever
the Department issues a mandatory recall, an affected dispensing organization
may file a request for hearing within 30 days of the recall. All requests for
hearing and any associated proceedings shall follow the rules of Practice in
Administrative Hearings at 68 Ill. Adm. Code 1110.
A) In the
event a dispensing organization files a request for hearing, a formal hearing
shall begin within 30 days of the filing of the request and shall be completed
without appreciable delay.
B) The
Department shall bear the burden of proving the recalled cannabis is defective,
adulterated, misbranded, or otherwise poses a danger to public safety.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.335 SALE OF NON-CANNABIS ITEMS
Section 1291.335 Sale of Non-Cannabis Items
a) Dispensing
Organizations shall only sell items that are cannabis, cannabis paraphernalia,
or related supplies.
1) "Related
supplies" means branded merchandise including, but not limited to,
clothing, water bottles, or keychains. Merchandise may include the dispensing
organization's name and logo in compliance with Section 55-20 of the Act.
2) "Related
supplies" also includes non-branded decorative or material items such as
periodicals, ornaments, pins, or similar items.
3) "Related
supplies" also includes pre-packaged food and pre-packaged non-alcoholic
beverages.
4) The
Department may approve additional items not specifically identified above at a
licensed dispensing organization's request. In doing so, the Department shall
consider the similarity of the items to the criteria listed in this
subsection (a).
b) Dispensing
organizations may allow third-party vendors to promote or advertise in the
public access area of the dispensary. All advertisements by third-party
vendors must comply with Section 55-20 of the Act. The dispensing organization
is responsible for ensuring compliance with the Act and this Part for all
third-party vendors promoting or advertising inside of the dispensary. The dispensing
organization shall give the Department written notice of all third-party
vendors at least three business days in advance of promoting or advertising.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.340 ONSITE CONSUMPTION LOUNGES
Section 1291.340 Onsite Consumption Lounges
a) Dispensing
organizations may operate an onsite consumption lounge within its dispensary
only if its unit of local government has authorized it to do so pursuant to
Section 55-25 of the Act. Proof of authorization must be submitted to the
Department.
b) Dispensing
organizations may only operate an onsite consumption lounge at the dispensary's
address or in a building contiguous to the dispensary. If the dispensary's onsite
consumption lounge is within the dispensary, the dispensary shall maintain a
designated area for the purpose of the heating, burning, smoking, or consuming
activities that is separate from the remainder of the dispensary.
c) If
specially authorized by its unit of local government, dispensaries may operate
an outdoor onsite consumption lounge. Outdoor consumption shall not be visible
to the public (high fences, shrubs, etc., are permissible); and the interior of
the onsite consumption lounge and dispensary shall be separated from the
outdoor onsite consumption lounge by a locked and secured door. Patrons of the
outdoor onsite consumption lounge may re-enter the interior onsite consumption
lounge and dispensary's limited access area and bathrooms for the duration of
their visit so long as a security guard, licensed agent, AIC or principal
officer is stationed at the point of re-entry during all hours of the lounge's
hours of operation. Onsite consumption lounge and dispensary staff may enter
and exit all sections of the facility.
d) Dispensaries
which are authorized by their unit of local government to operate an onsite consumption
lounge at its dispensary shall abide by all local rules, regulations, and
ordinances, including, but not limited to: zoning regulations, local health
and safety standards, and fire safety regulations.
e) Dispensaries
seeking to operate an onsite consumption lounge at its dispensary must be
approved by the Department in a form or manner prescribed by the Department.
In seeking approval, the dispensary shall submit, at a minimum, the following:
1) A
copy of the unit of local government's authorization to operate an onsite consumption
lounge and any supporting documents thereof;
2) A copy
of the proposed floor plan of the onsite consumption lounge;
3) Identification
of all staff who will work at the onsite consumption lounge;
4) A
copy of the dispensary's policies and procedures for the onsite consumption lounge,
including, but not limited to, any policies and procedures regarding pricing,
security measures, staffing plans, hours of operation, etc. and those required
by subsection (g)(9);
5) A copy
of the security plan of the onsite consumption lounge;
6) A
copy of the lease or landlord consent to operate an onsite consumption lounge
or proof of ownership of the land the onsite consumption lounge is located; and
7) A
copy of the policies and procedures of the onsite consumption including all
information required by Sections 15-65 and 15-110 of the Act.
f) Dispensaries
are prohibited from initiating any material changes to the consumption lounge
without prior approval by the unit of local government and the Department.
g) A dispensary
may operate an onsite consumption lounge subject to the following conditions:
1) All
employees of an onsite consumption lounge shall be a licensed agent or agent-in-charge
of the dispensary;
2) Dispensaries
shall verify all individuals entering an onsite consumption lounge are in
compliance with Section 10-20 of the Act;
3) Cannabis
and cannabis infused products shall not be dispensed in the onsite consumption lounge
unless in accordance with 410 ILCS 705/15-100(c)(5);
4) Onsite
consumption lounges must be separate and distinct from the remainder of the dispensary,
including the public access area, the limited access area, and the restricted
access area, and is separated from the remainder of the dispensary by a door
capable of being locked;
5) Onsite
consumption lounges shall not be publicly accessible (except as otherwise
permitted as a point of re-entry under subsection (c)), unless the, entrance
also includes its own public access area and security guard during all hours of
operation;
6) Onsite
consumption lounges shall not hold any liquor license issued under 235 ILCS
5/5-1 or any gaming license issued under 230 ILCS 40/90;
7) Onsite
consumption lounges are permitted to serve food and drinks so long as the
following conditions are met:
A) The onsite
consumption lounge has obtained the necessary certifications or licenses to
serve food, other than cannabis-infused products, that are required by the unit
of local government and State law;
B) The onsite
consumption lounge complies with the Illinois Food Code (77 Ill. Adm. Code 750)
and the Food Handling Regulation Enforcement Act [410 ILCS 625]; and
C) Such
food or drink qualifies as a "related supply" as that term is defined
in Section 1291.335.
8) The onsite
consumption lounge shall have security cameras, which comply with Section
15-100(i)(2) of the Act, facing any areas of ingress or egress. Cameras are
not required to record those consuming products, only those entering and
leaving through areas of ingress or egress;
9) All
cash and currency collected at the onsite consumption lounge shall be treated
the same as cash and currency collected by the dispensary and shall be stored
securely in compliance with Section 15-100 of the Act;
10) Copy
of internal policies shall be kept onsite within the onsite consumption lounge
that shall include, at a minimum:
A) A
business plan that includes a description of the proposed hours of operation;
B) A
responsible operations plan that includes a detailed explanation of how
employees will monitor and prevent over-intoxication, underage access to the onsite
consumption lounge, the illegal sale or distribution of cannabis or
cannabis-infused products within the onsite consumption lounge, and any other
potential criminal activity on the premises. Operation plans may also identify
how to best prevent impaired driving by encouraging consumers to consider
alternative transportation options;
C) A
documented employee training plan that addresses all components of the
responsible operations plan; and
D) A
cannabis product destruction and waste management plan that meets the
requirements of this Part, as applicable, for destroying and disposing of
cannabis waste left at the onsite consumption lounge.
11) Only
persons 21 years of age or older shall be permitted access to onsite consumption
lounges;
12) The onsite
consumption lounge shall have a smoke-free area for both employees and the
Department to monitor the onsite consumption lounge;
13) The onsite
consumption lounge shall have a ventilation system that directs air from the
consumption area to the outside of the building through a filtration system
sufficient to remove visible smoke, consistent with all applicable building
codes and ordinances, and adequate to eliminate odor at the property line, if
consumption by inhalation is permitted;
14) If
cannabis is abandoned in the consumption lounge, it must be destroyed in
compliance with Section 1291.325;
15) Dispensaries
may charge a fee for entrance and usage of onsite consumption lounges; and
16) Any
other requirements that the Department deems necessary based on local zoning
authorities or unique security concerns.
h) Onsite
consumption lounges remain subject to random inspections by the Department.
i) If
Department inspectors or emergency personnel enter the onsite consumption
lounge and upon the inspector's or emergency personnel's direction, a dispensary
is responsible for ensuring that all consumption and other activities,
including sales within the dispensary, cease until the personnel have completed
their investigation or services and have left the premises.
j) 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 with onsite consumption lounges under the 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 the Act,
in addition to any penalties established by another unit of government.
(Source: Added at 48 Ill. Reg. 13377,
effective August 20, 2024)
SUBPART E: SOCIAL EQUITY CRITERIA LOTTERY
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.400 CONDITIONAL LICENSE LOTTERY UNDER SECTION 15-35.20(C) OF THE ACT
Section 1291.400 Conditional License Lottery under
Section 15-35.20(c) of the Act
a) The
Department may distribute no more than 55 conditional licenses by lot pursuant
to the requirements of Section 15-35.20(c) of the Act and this Part.
b) The
requirements contained in Sections 1291.400 through 1291.440 shall only apply
to the 55 conditional licenses issued pursuant to Section 15-35.20(c) of the
Act.
c) All
licenses issued pursuant to this Section shall be drawn by lot on the same day
to the extent possible.
d) Prior
to conducting any lottery pursuant to this Section, the Department shall
publish on its website a list of all applicants eligible to participate in the
lottery.
e) After
the Department publishes the list of applicants eligible to participate in the
lottery, all applicants shall have 5 business days to contest the Department’s
list of applicants eligible to participate in the lottery. Any contestation must
be filed on the form published on the Department's website and submitted in the
manner included on that form.
f) The
Department will revise and republish its list of applicants eligible to
participate in the lottery if it concludes that any applicants were improperly
included or excluded. The republished list of applicants is not subject to
contestation under subsection (e). The Department is not required to provide
any additional opportunities to contest the list of applicants eligible to
participate in the lottery beyond the initial contest period described in
subsection (e).
g) The
Department may conduct a lottery at any time after the 5-business day period to
contest the list of lottery participants has concluded.
h) The
publishing of the list of applicants to participate in the lottery, and any
revised list, is not a final agency decision. Any opportunity to contest the
list shall not be considered a rehearing or an action for administrative
review.
i) The
Department will publish the certified results of the lottery.
(Source: Added at 46 Ill. Reg. 20783,
effective December 13, 2022)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.405 CONDITIONAL LICENSE DISTRIBUTION UNDER SECTION 15-35.20(C) OF THE ACT
Section 1291.405 Conditional License Distribution under
Section 15-35.20(c) of the Act
a) To
ensure the geographic dispersion of conditional license holders, the following
number of licenses issued as a result of any lottery conducted pursuant to
Section 1291.400 shall be awarded in each BLS Region in the following amounts:
1) Bloomington:
1
2) Cape
Girardeau: 1
3) Carbondale-Marion:
1
4) Champaign-Urbana:
1
5) Chicago-Naperville-Elgin:
36
6) Danville:
1
7) Davenport-Moline-Rock
Island: 1
8) Decatur:
1
9) Kankakee:
1
10) Peoria:
2
11) Rockford:
1
12) St.
Louis: 3
13) Springfield:
1
14) Northwest
Illinois nonmetropolitan: 1
15) West
Central Illinois nonmetropolitan: 1
16) East
Central Illinois nonmetropolitan: 1
17) South
Illinois nonmetropolitan: 1. (Section 15-35(a) and 15-35.10(a) of the Act)
b) Applicants
are prohibited from applying in more than one BLS region and are limited to one
application in that BLS region. If an applicant submits more than one
application, the applicant forfeits all applications from entry into the
lottery and is prohibited from being a top participant.
c) Within
each BLS Region, the first applicant drawn will have the first opportunity to a
conditional license. The second applicant drawn will have the second
opportunity to a conditional license. The same pattern will continue for each
subsequent applicant drawn.
(Source: Added at 46 Ill. Reg. 20783,
effective December 13, 2022)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.410 CONDITIONAL LICENSE LOTTERY APPLICATION UNDER SECTION 15-35.20(C) OF THE ACT
Section 1291.410 Conditional License Lottery Application
under Section 15-35.20(c) of the Act
a) The
Department will publish an online application for applicants on the
Department's website. Paper applications will not be accepted.
b) After
publishing the online application, the application submission window shall
remain open for submissions for a minimum of 10 business days. Applications
must be submitted by 5:00 P.M. Central Time on the last day of the application submission
window and no applications will be accepted after the application submission window
closes.
c) A
principal officer cannot be on more than one application. The Department shall
require that all applicants provide each of its principal officers’ Social
Security Numbers or Individual Taxpayer Identification Number, and any other
unique, identifying information, required in the application to ensure that an
individual principal officer is not listed as a principal officer on more than
one application.
d) All
applicants shall pay a non-refundable application fee of $250, to be deposited
into the Cannabis Regulation Fund.
e) An
application shall be accepted only if it is complete. All incomplete
applications shall be denied. A completed application shall include the
nonrefundable fee and, at a minimum, the following information:
1) the applicant’s
proposed entity name;
2) the name of the persons
filling out the application;
3) the BLS Region in which
the applicant is applying;
4) the
names, Social Security Numbers or Individual Taxpayer Identification Number,
home addresses, birthdates, phone numbers, and email addresses, for all
proposed principal officers of the proposed entity;
5) the
identification of and contact information, including phone number and email address,
for a primary and alternate contact of the proposed entity, at least one of
whom must also be a principal officer;
6) an
acknowledgment that if awarded an opportunity for a conditional license in the
lottery, the business entity is 51% or more owned or controlled by one or more
individuals who each meet the combination of at least one or the criteria under
subsection (e)(6)(A) (Criteria A) and one of the criteria under subsection
(e)(6)(B) (Criteria B). This does not mean multiple individuals need to meet
identical criteria, but each individual must meet at least one criteria from
Criteria A and one criteria from Criteria B.
A) Criteria A (only 1
required):
i) An
individual who has resided for at least 5 of the preceding 10 years in a census
tract that has a poverty rate of at least 20% according to the latest 5-year
American Community Survey (Table S1701: Poverty Status in the Past 12 Months)
that is publicly available at the start of the application submission window
for the lottery conducted under Sections 1291.400 through 1291.440. The data
set is available at https://data.census.gov/cedsci/table?q=poverty%20rate&g=0100000US%241400000&tid=ACSST5Y2020.S1701;
ii) An
individual who has resided for at least 5 of the preceding 10 years in a census
tract where at least 20% of the households receive assistance under the
Supplemental Nutrition Assistance Program in the latest 5-year American
Community Survey (Table S2201: Food Stamps/Supplemental Nutrition Assistance
Program (SNAP)) that is publicly available at the start of the application
submission window for the lottery conducted under Sections 1291.400 through
1291.440. The data set is available at https://data.census.gov/cedsci/table?q=snap%20participation&g=0100000US%241400000&tid=ACSST5Y2020.S2201;
iii) An
individual who has resided for at least 5 of the preceding 10 years in a census
tract area classified as "low income and low access" where at least
100 households are more than one-half mile from the nearest supermarket and
have no access to a vehicle or a significant number (at least 500 people) or
share (at least 33%) of the population is greater than 1 mile from the nearest
supermarket, supercenter, or large grocery store for an urban area or greater
than 20 miles for a rural area, as classified by the latest United States
Department of Agriculture Economic Research Service's Food Access Research
Atlas data set that is publicly available at the start of the application submission
window for the lottery conducted under Sections 1291.400 through 1291.440. The
data set is available at the United States Department of Agriculture Economic
Research Service's Food Access Research Atlas, is available at https://www.ers.usda.gov/data-products/food-access-research-atlas/go-to-the-atlas;
iv) An
individual who has received Medicaid, Supplemental Security Income, Social
Security Disability, and/or subsidized housing for at least 5 of the preceding
10 years; and/or,
v) An
individual who has resided for at least 5 of the preceding 10 years in a census
tract in the top 15th percentile for the percent of residents in the
census tract failing to graduate from High School in that state, as classified
by the latest 5-year American Community Survey (Table S1501: Educational
Attainment) that is publicly available at the start of the application
submission window for the lottery conducted under Sections 1291.400 through
1291.440. The data set is available at
https://data.census.gov/cedsci/table?q=s1501&g=0100000US,%241400000
B) Criteria B (only 1
required);
i) An
individual who has been arrested for, convicted of, or adjudicated delinquent
for any offense, or substantially similar offense, of Illinois, federal or
other state law for:
• possession
of not more than 500 grams of cannabis; or
• manufacture,
delivery, or possession with intent to deliver, or manufacture of cannabis up
to 30 grams;
ii) An
individual who has a family member who has been arrested for, convicted of, or
adjudicated delinquent for any offense, or substantially similar offense, of
Illinois, federal, or other state law for:
• possession
of not more than 500 grams of cannabis; or
• manufacture,
delivery, or possession with intent to deliver, or manufacture or cannabis up
to 30 grams.
iii) An
individual who has been a victim of firearm injury, as those terms are defined
in this Part. This must be evidenced by either a police report or medical
record.
C) As
soon a reasonably possible, but no later than 5 business days prior to the
acceptance of applications, the Department shall make publicly available the
documents applicants may use to establish eligibility under both subsection
(e)(6)(A) (Criteria A) and subsection (e)(6)(B) (Criteria B).
7) An
acknowledgment that if awarded a conditional license, neither the entity nor
any of its principal officers will violate the Act’s license number
limitations.
8) The
acknowledgement will also include a statement or indication that the applicant
understands the timeframes to do so as required in this Part.
f) If an
applicant fails to meet and prove the criteria identified in subsection
(e)(6)(A) (Criteria A) and subsection (e)(6)(B) (Criteria B) within 45 calendar
days after the date of the notice of being a top participant from the
Department and any required 10 business day deficiency period or 5 business day
intent to deny periods as those periods are set forth in Section 1291.420, the
Department shall deny issuance of a conditional license and proceed to the next
top participant as described in Section 1291.405(c).
g) If
two or more applications include the same principal officer, the Department will
notify the applicant at its identified primary and alternate contacts and the
principal officer who is listed on two or more applications, via email. Upon
this notification, the identified principal officer has 3 business days to
notify the Department of its resignation from all but one of the proposed
entities. This notification shall be submitted to the Department in writing to
FPR.CannabisAdministration@illinois.gov. If the identified principal officer
does not notify the Department of the principal officer’s required resignation
within the required time period, each applicant notified shall forfeit its
application and nonrefundable fee.
h) False Information
1) If
the Department determines that any information on an application or in
supporting documents is not truthful, the applicant associated with that application
will be prohibited from:
A) participating
in the lottery;
B) being
a top participant; and
C) being
issued a conditional license or Adult Use Dispensing Organization License.
2) The
Department shall notify the next eligible top participant drawn by lot of its
opportunity for the conditional license, in accordance with Section
1291.405(c).
i) If a
principal officer identified on an application dies after the applicant has
submitted its application but prior to the conducting of any lottery, the
applicant does not need to inform the Department unless the applicant becomes a
top participant eligible for a conditional license after the lottery is
conducted. If the applicant becomes a top participant, the applicant is
required to follow the process identified in Section 1291.420.
j) The
Department will only communicate with the applicant or top participant’s
primary and alternate contact regarding the applicant or top participant’s
application. In order to change its primary or alternate contact information,
an applicant or a top participant must submit a request to change from the
current primary or alternate contact email address the Department has on
record.
(Source: Added at 46 Ill. Reg. 20783,
effective December 13, 2022)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.420 CONDITIONAL LICENSE POST LOTTERY PROOF REQUIREMENTS UNDER SECTION 15-35.20(C) OF THE ACT
Section 1291.420 Conditional License Post Lottery Proof
Requirements under Section 15-35.20(c) of the Act
a) The
Department will publish a list of supporting documents (e.g., mortgage
statements, bank statement, government-issued identification) that an applicant
must submit in order to prove it meets the criteria required in Section
1291.410(e)(6)(A) (Criteria A) and Section 1291.410(e)(6)(B) (Criteria B) to be
issued a conditional license. This list shall be published on the Department’s
website on the same day the Department opens the application submission window.
b) Top
participants shall have 45 calendar days after the day the lottery is certified
to submit all required supporting documents to the Department via FPR.CannabisAdministration@illinois.gov
or via the State file share system available upon request to the same email
address.
c) After
a top participant has submitted its supporting documents, the Department has at
least 60 calendar days to review the documentation.
d) If
the Department determines that the supporting documents are insufficient, the
Department shall issue a deficiency notice to that top participant. The top
participant shall have 10 business days after the date that appears on the
deficiency notice to submit sufficient documentation.
e) If
the top participant fails to provide sufficient documents after this deficiency
period, the Department shall inform a top participant of its intent to deny the
issuance of a conditional license prior to any denial of a conditional license.
f) Top
participants shall have 5 business days after the date that appears on the
notice of intent to deny to contest the Department’s decision. Any contestation
must be filed in accordance with 68 Ill. Adm. Code 1110.
g) The
Department’s final order to either affirm or revoke its intent to deny
constitutes a final agency decision and may be appealed under the
Administrative Review Law [735 ILCS 5/3-101].
h) If
the Department informs a top participant of a deficiency or of its intent to
deny the issuance of a conditional license because of one of the applicant’s
principal officers has violated the Act or this Part, the principal officer may
resign from the top participant (or another licensee) in order for the top
participant to remain eligible for a conditional license. Proof of this
resignation shall be submitted to the Department on the form published on the
Department's website and submitted in the manner included on that form.
i) If a
principal officer of a top participant resigns after that top participant has
been notified of the Department’s intent to deny, that top participant may not
replace the resigned principal officer. If a principal officer of a top participant
resigns after that top participant has been notified of the Department’s
deficiency notice or intent to deny, and that top participant therefore becomes
ineligible to meet the requirements of the Act and this Part, the Department
shall deny that top participant a conditional license.
j) If
the Department affirms its intent to deny, the Department shall deny issuance
of a conditional license and proceed to the next to participant as described in
Section 1291.420.
k) If
the Department denies issuance of a conditional license to a top participant,
the Department shall notify the next eligible top participant drawn by lot of
its opportunity for the conditional license, in accordance with Section
1291.405(c).
l) The
Department may issue conditional licenses to top participants in the order in
which they are received by the Department. Nothing in this subsection (l)
prevents the Department from issuing conditional licenses before all top
participants have submitted all necessary documentation.
m) If a
principal officer of an applicant dies after the submission of any application,
and that applicant is then selected as a top participant, the top participant
shall present proof of death to the Department. A deceased principal officer
may be replaced only if that principal officer was necessary for the top
participant to remain eligible to be issued a conditional license. If a
necessary principal officer of a top participant dies prior to issuance of the
conditional license, the top participant shall have 45 calendar days after the
death of that principal officer to submit proof of a replacement principal
officer to the Department in order to remain eligible for a conditional
license.
n) The Department shall deny issuance of a conditional
license if it 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 licenses, or Adult Use Dispensing
Organization Licenses. Any entity that is awarded a conditional 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 in accordance
with section 15-145 of the Act, unless the entity declines the license at
the time it is awarded. (Section 15-30(k) of the Act)
(Source: Added at 46 Ill. Reg. 20783,
effective December 13, 2022)
| TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1291
CANNABIS REGULATION AND TAX ACT
SECTION 1291.440 CONDITIONAL LICENSEE REQUIREMENTS UNDER SECTION 15-35.20(C) OF THE ACT
Section 1291.440 Conditional Licensee Requirements under
Section 15-35.20(c) of the Act
a) A
conditional license cannot be sold, transferred, or assigned and the
conditional license holder cannot in any way change its ownership structure, including
by removing or adding any principal officers, except for in the event of the
death of a principal officer.
b) If a
principal officer of a conditional license holder dies prior to the issuance of
any Adult Use Dispensing Organization License under Section 15-36 of the Act,
the conditional license holder shall inform the Department of the death and
submit an updated table of organization.
c) A
principal officer may be added to the ownership structure of a conditional
license holder only in the event of replacing a deceased principal officer,
subject to the Department’s approval of that principal officer. The Department
will consider, but is not limited to, the proposed principal officer's role,
qualifications, and the necessity of adding a principal officer when
considering the new principal officer.
d) The
death of a principal officer following issuance of a conditional license shall
not impact the conditional license holder’s eligibility to be issued an Adult
Use Dispensing Organization License under Section 15-36 of the Act.
e) Identifying a Physical
Location
1) A
conditional license holder who receives a conditional license through any
lottery conducted pursuant to Section 1291.400 has 365 calendar days after the
date of issuance of the conditional license to identify a physical location for
the dispensing organization retail storefront. For purposes of this subsection
(e), proof of identifying a physical location includes, but is not limited to,
one of the following:
A) proof
of building ownership by the top participant;
B) agreement
to purchase building or lease that is dependent on zoning or state license
approval;
C) signed
lease for the term of the initial license; or
D) proof
of zoning approval or application for zoning approval.
2) A
conditional license holder shall provide evidence that the location is not
within 1,500 feet of an existing dispensing organization.
3) If a
conditional license holder is unable to find a suitable physical address within
365 calendar days after the issuance of the conditional license, the Department
may extend the period for finding a physical address another 180 calendar days
if the conditional license holder demonstrates the steps it has taken to secure
a location and hardship. If the Department denies the request for an extension
or the conditional license holder is unable to become operational within 545
calendar days after being awarded a conditional license, the Department will rescind
the conditional license and may proceed to the next applicant drawn in
accordance with Section 121.405(c).
(Source: Added at 46 Ill. Reg. 20783,
effective December 13, 2022)
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