Section 1300.40  Operation of a Cannabis Business Establishment

a)         Only a cannabis business establishment that has been issued a license by the Department under the Act and this Part shall own or operate a cultivation center, craft grower, infuser, processor, or transporter.

b)         A cannabis business establishment, including each principal officer, board member, agent and employee, shall not:

1)         Produce, manufacture, or store cannabis or cannabis product in any place except in those areas designated in the license;

2)         Produce, manufacture, or store cannabis or cannabis product for use outside of Illinois;

3)         Sell, deliver, transport or distribute cannabis or cannabis product to any person or entity other than a cannabis business establishment licensed by the Department, a dispensing organization registered with DFPR, a testing laboratory approved by the Department, or a State regulatory entity or law enforcement;

4)         Enter into an exclusive agreement with any other cannabis business establishment;

5)         Refuse to conduct business with any other cannabis business establishment that has the financial ability to pay for products or services, except when prohibited by law;

6)         Either directly or indirectly discriminate in price among different cannabis business establishments.  Nothing in this subsection (b) prevents pricing cannabis differently based on differences in the cost of production, the quantities sold (such as volume discounts), the way the products are delivered, or delivery costs relative to distance travelled.

c)         Except as provided in subsections (d) and (e), a Department licensed cannabis business establishment shall not obtain or otherwise permit or facilitate the entry to their facility of any cannabis, hemp, industrial hemp, and any other cannabis plant derived material that is not cultivated by a licensed Illinois cannabis business establishment. On or after July 1, 2026 a Department licensed cannabis business establishment shall not incorporate, manufacture or transport any cannabis product that contains cannabis, hemp, industrial hemp, or any cannabis plant material unless such material was cultivated by a licensed Illinois cannabis business establishment.

d)         A cultivation center, craft grower, or infuser may obtain cannabidiol (CBD), cannabigerol (CBG), tetrahydrocannabivarin (THCV), or cannabinol (CBN) inputs subject to the following requirements:

1)         Approval:

A)        Prior to the arrival of the input at the licensee facility, the licensee shall submit a request to the Department to accept the input at the facility. The Department shall approve or deny the request within 5 calendar days of receipt of a request.

B)        Licensee cannot accept the input into their facility unless and until Department approves the request. The Department shall approve requests for inputs that meet the requirements of this Section.

C)        If the request is approved, the licensee must receive the input at their facility and record such in the cannabis plant monitoring system within the timeframe specified in the Department's approval.

D)        If the Department denies the request, the licensee cannot accept the input at their facility.

E)        Licensee shall not use the input in any cannabis product until it is approved and recorded in the cannabis plant monitoring system.

2)         Requests for Approval:

A)        Requests shall be submitted through the cannabis plant monitoring system, or other Department-approved method.

B)        Requests shall include the type and quantity of the input.

3)         The input was cultivated by a hemp grower licensed by the United States Department of Agriculture, or a state or tribal plan approved by the United States Department of Agriculture;

4)         The input is in the form of isolate;

5)         The input is to be used as an ingredient in a cannabis-infused product;

6)         The input is stored in an amount not to exceed 1 kilogram and shall be entered into the cannabis plant monitoring system in grams;

7)         The input shall be made available for an employee of an approved laboratory to select a representative sample;

8)         The sample must pass all required tests under Section 1300.700 prior to usage of the input;

9)         The certificate of analysis for the input, and the name and license number of the licensed hemp grower, shall be readily available at the licensee's facility for inspection, in a physical or digital format; and

10)       The input shall be naturally derived from the plant cannabis sativa L.

e)         A cultivation center or craft grower may obtain seeds, clones, or new genetics from an entity other than a cannabis business establishment upon approval of the Department. A request for approval shall be made through the cannabis plant monitoring system, unless otherwise designated by the Department, and must include the quantity and the transfer must be made within the time window stated in the system. The Department shall approve or deny the request within 5 calendar days after receipt of a request.

f)         A cultivation center, craft grower, or infuser shall not be required to obtain a hemp processor registration under 8 Ill. Adm. Code 1200 to utilize inputs under subsection (d).

(Source:  Amended at 50 Ill. Reg. 7050, effective May 1, 2026)