SB0776sam001 103RD GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 5/9/2024

10300SB0776sam001 LRB103 03232 RJT 73288 a

AMENDMENT TO SENATE BILL 776

AMENDMENT NO. ______. Amend Senate Bill 776 by replacing everything after the enacting clause with the following:

"Article 1.

Short title; Definitions

Section 1-1. Short title. This Act may be cited as the Hemp Cannabinoid Products Act. References to "this Act" in Articles 1 through 40 of this Act mean Articles 1 through 40 of this Act.

Section 1-5. Definitions. In this Act:

"Accreditation body" means an impartial nonprofit organization that operates in conformance with the International Organization for Standardization (ISO)/International Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for Testing.

"Batch" means a specific quantity of a specific cannabinoid product that is manufactured during the same batch cycle.

"Batch cycle" means a specific quantity of a specific cannabinoid product that is manufactured using the same methods, equipment, and ingredients that is uniform and intended to meet specifications for identity, strength, purity, and composition and that is manufactured, packaged, and labeled according to a batch cycle production record executed and documented during the same cycle of manufacture.

"Broad spectrum" means a hemp extract or hemp extract derived product containing multiple hemp-derived cannabinoids, terpenes, and other naturally occurring compounds, processed with the intentional removal of delta-9 Tetrahydrocannabinol.

"Department" means the Department of Agriculture.

"Director" means the Director of Agriculture.

"Full spectrum" means a hemp concentrate or hemp concentrate product cannabinoid product containing multiple hemp-derived cannabinoids, terpenes, and other naturally occurring compounds processed without intentional complete removal of any compound and without the addition of isolated cannabinoids.

"Hemp business establishment" means a hemp cultivator, hemp processor, hemp distributor, hemp infuser, or any other business licensed by the Department of Agriculture under this Act.

"Hemp cannabinoid" means the chemical constituents of industrial hemp plants that are naturally occurring and derived from hemp plants with less than 0.3% delta-9 THC as tested on a dry weight basis.

"Hemp cannabinoid product" means a finished product for sale to consumer within the State that contains cannabinoids derived from industrial hemp, is intended for human consumption, and meets the packaging, labeling, and testing requirements of this Act.

"Hemp concentrate" means the extracts and resins of a hemp plant or hemp plant parts, including the extracts or resins of a hemp plant or hemp plant parts that are refined to increase or decrease the presence of targeted cannabinoids intended to cause an intoxicating effect or having a total milligram by volume over 0.5 milligrams per serving or 2 milligrams per packaging of delta-9-tetrahydrocannabinol or delta-8-tetrahydrocannabinol, including any other substance containing THC.

"Hemp concentrate derived products" means a product intended for human consumption that is derived from hemp concentrate and meets the labeling and potency requirements set forth in this Act.

"Hemp concentrate infuser" means the establishment that takes intermediate hemp products, hemp extract, or hemp concentrate and infuses it with products intended for human consumption that meets the labeling and potency limits set forth in this Act.

"Hemp concentrate infuser agent" means a principal officer, employee, or agent of a hemp concentrate infuser who is 21 years of age or older.

"Hemp concentrate infuser agent identification card" means a document issued by the Department of Agriculture that identifies a person as a hemp concentrate infuser agent.

"Hemp concentrate retailer" means the establishment where hemp cannabinoid products, hemp extract derived products, or hemp concentrate derived products may be sold to consumers.

"Hemp concentrate retail agent" means a principal officer, employee, or agent of a hemp concentrate retailer who is 21 years of age or older.

"Hemp concentrate retail agent identification card" means a document issued by the Department of Agriculture that identifies a person as a hemp concentrate retail agent.

"Hemp extract" means a substance or compound intended for ingestion or inhalations that is derived from or contains hemp and that does not contain other controlled substances or resins of a hemp plant or hemp plant parts that are refined to increase or decrease the presence of targeted cannabinoids.

"Hemp distributor" means a business that transports intermediate hemp product, hemp extract, hemp concentrate, or raw hemp to hemp infusers, processors, testing facilities, or retail locations licensed by the Department of Financial and Professional Regulation or Department of Agriculture.

"Hemp distributor agent" means a principal officer, employee, or agent of a hemp distributor who is 21 years of age or older.

"Hemp distributor agent identification card" means a document issued by the Department of Agriculture that identifies a person as a hemp distributor agent.

"Hemp extract derived products" means a product intended for human consumptions that is derived from hemp extract and meets the labeling and potency limits set forth in this Act and does not contain more than 0.5 milligrams per serving or 2 milligrams per package of delta-8 or delta-9 THC derived from any naturally occurring cannabinoids found in hemp.

"Hemp extract infuser" means the establishment that takes intermediate hemp products or hemp extract and infuses it with products intended for human consumption that meets the labeling and potency limits set forth in this Act for a hemp extract product.

"Hemp processor" means the establishment that removes the hemp extract from the hemp plant or refines or isomerizes the hemp extract into hemp concentrate for use in an intermediate hemp product.

"Hemp processor agent" means a principal officer, employee, or agent of a hemp processor who is 21 years of age or older.

"Hemp processor agent identification card" means a document issued by the Department of Agriculture that identifies a person as a hemp processor agent.

"Hemp retailer" means the establishment where hemp cannabinoid products or hemp extract derived products may be sold to consumers.

"Imported hemp" means industrial hemp that incorporates raw hemp or intermediate hemp products not produced in Illinois.

"Intermediate hemp product" means a product that is made from hemp concentrate that can only be sold to hemp business establishments to be used as ingredients for other intermediate hemp products or hemp concentrate derived products for human consumption.

"Scope of accreditation" means a document issued by an accreditation body that attests to the laboratory's competence to carry out specific testing and analysis.

"Social Equity Applicant" has the meaning given to that term in Section 1-10 of the Cannabis Regulation and Tax Act.

"Testing laboratory" means an independent, third-party laboratory contracted by a licensee to test hemp cannabinoid products.

"Tetrahydrocannabinol" or "THC" means any naturally occurring or synthetic tetrahydrocannabinol, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation and any preparation, mixture, or substance containing, or mixed or infused with, any detectable amount of tetrahydrocannabinol or tetrahydrocannabolic acid, including, but not limited to, delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid, tetrahydrocannabipherol, or hexahydrocannabinol, however derived, or any other substance determined to have similar intoxicating effects on the mind or body by the Department. For the purposes of this definition, "isomer" means the optical, position, and geometric isomers.

Article 5.

General Provisions

Section 5-5. Prohibitions.

(a) No person shall process, manufacture, label, distribute for sale, sell, offer for sale, market, or advertise any hemp cannabinoid product within this State without obtaining a license under this Act.

(b) No licensee shall distribute for sale, offer for sale, market, or advertise intermediate hemp products or hemp concentrate to a person or entity that is not a licensed hemp business establishment.

(c) No hemp retailer shall distribute for sale, offer for sale, market, or advertise hemp concentrate products.

(d) No licensee shall process, manufacture, distribute for sale, sell, offer for sale, market, or advertise any hemp cannabinoid product unless the product complies with the labeling, packaging, minimum testing, and other requirements of this Act and any administrative rules adopted by the Department.

(e) A product that has a THC concentration greater than the limits set forth for hemp cannabinoid products as defined in this Act shall be regulated as cannabis as defined in the Cannabis Regulation and Tax Act, whether or not the product is made with or derived from hemp, industrial hemp, or derived from natural or synthetic sources.

(f) No product intended for consumption by any means that is derived from hemp or marketed as hemp shall be distributed for sale, offered for sale, or sold to a consumer within this State unless it meets the minimum requirements of this Act.

Article 10.

Hemp Retailers

Section 10-5. Authority.

(a) The Department shall administer and enforce the provisions of this Act relating to the licensure and oversight of licensure of a hemp retailer unless otherwise provided in this Act.

(b) No person shall operate a hemp retailer organization for the purpose of serving purchasers of hemp extract derived products without a license issued under this Article by the Department.

(c) Subject to this Act, the Department may exercise the following powers and duties:

(1) Prescribe forms to be issued for the administration and enforcement of this Article.

(2) Examine, inspect, and investigate the premises, operations, and records of hemp retail organization applicants and licensees.

(3) Conduct investigations of possible violations of this Act pertaining to the hemp retail organization.

(4) Conduct hearings on proceedings to refuse to issue or renew licenses or to revoke, suspend, place on probation, reprimand, or otherwise discipline a license under this Article or take other nondisciplinary action.

(5) Adopt rules required for the administration of this Article.

Section 10-10. Application for hemp retailers. An applicant seeking issuance of a license as a hemp retailer shall submit an application on forms provided by the Department. An applicant must meet the following requirements:

(1) payment of a nonrefundable application fee of $100 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) certification that the applicant will comply with the requirements contained in this Act;

(3) the legal name of the proposed hemp retailer;

(4) a statement that the hemp retailer agrees to respond to the Department's supplemental requests for information;

(5) a resume for each principal officer, including whether that person has an academic degree, certification, or relevant experience with a hemp business establishment or in a related industry;

(6) a copy of the proposed operating bylaws;

(7) a copy of the proposed business plan that complies with the requirements in this Act;

(8) a proposed floor plan, including a square footage estimate;

(9) the name, address, social security number, and date of birth of each principal officer and board member of the retailer; each principal officer and board member shall be at least 21 years of age;

(10) the address, telephone number, and email address of the applicant's principal place of business, if applicable. A post office box is not permitted;

(11) written summaries of any information regarding instances in which a business or nonprofit organization that a prospective board member previously managed or served on was fined or censured or any instances in which a business or nonprofit organization that a prospective board member previously managed or served on had its registration suspended or revoked in any administrative or judicial proceeding;

(12) procedures to ensure accurate recordkeeping;

(13) a description of the features that will provide accessibility to purchasers as required by the Americans with Disabilities Act;

(14) the dated signature of each principal officer; and

(15) any other information deemed necessary by the Department.

Section 10-15. Renewal of licenses.

(a) A hemp retailer license issued under Section 10-10 shall expire 2 years after the date issued.

(b) A license holder shall submit a renewal application as provided by the Department and pay the required renewal fee. The Department shall require an agent, employee, contracting, and subcontracting diversity report and an environmental impact report with its renewal application. No license may be renewed if it is currently under revocation or suspension for violation of this Act, the Cannabis Regulation and Tax Act, or the Industrial Hemp Act or any rules that adopted under this Act, the Cannabis Regulation and Tax Act, or the Industrial Hemp Act or if the licensee, principal officer, board member, person having a financial or voting interest of 5% or greater in the licensee, or agent is delinquent in filing any required tax returns or paying any amounts owed to the State.

(c) For a hemp retailer license, $100 shall be paid as a renewal fee and shall be deposited into the Cannabis Regulation Fund.

(d) If a hemp retailer fails to renew its license before expiration, the hemp retailer shall cease operations until the license is renewed.

(e) A hemp retailer that continues to operate without renewal of its license is subject to penalty as provided in this Article or any rules that may be adopted pursuant to this Article.

(f) The Department shall not renew a license if the applicant is delinquent in filing required tax returns or paying amounts owed to the State.

Section 10-20 Denial of application.

(a) An application for a hemp retailer license must be denied if any of the following conditions are met:

(1) The applicant failed to submit the materials required by this Article.

(2) The applicant would not be in compliance with local zoning rules or permit requirements.

(3) One or more of the prospective principal officers or board members causes a violation of this Act.

(4) One or more of the principal officers or board members is under 21 years of age.

(5) The person has submitted an application for a license under this Act or this Article that contains false information.

(6) If the licensee, principal officer, board member, agent, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Article 15.

Hemp Concentrate Retailers

Section 15-5. Definitions; issuance of licenses.

(a) In this Article:

"Department" means the Department of Financial and Professional Regulation.

"Secretary" means the Secretary of Financial and Professional Regulation

(b) The Department shall issue licenses for hemp concentrate retailers through the process provided for in this Article no later than July 1, 2026.

(c) The Department may not issue more than 500 licenses for hemp concentrate retailers under this Article.

(d) The Department shall make the application to be licensed as a hemp concentrate retailer available on January 7, 2026 and shall receive any initial applications under this subsection no later than March 15, 2026.

(e) Upon completion of the disparity and availability study published by the Illinois Cannabis Regulation Oversight Officer under subsection (e) of Section 5-45 of the Cannabis Regulation and Tax Act, the Department may modify or change the licensing application process to reduce or eliminate barriers and remedy discrimination identified in the study.

(f) Beginning January 7, 2027, the Department shall make the applications available and on every January 7 thereafter or, if that date falls on a weekend or holiday, the business day immediately succeeding the weekend or holiday and shall receive any application no later than March 15 or the succeeding business day thereafter.

Section 15-10. Authority.

(a) The Department shall administer and enforce the provisions of this Act relating to the licensure and oversight of hemp concentrate retailer license holders and hemp concentrate retail agents unless otherwise provided in this Act.

(b) No person shall operate a hemp concentrate retail organization for the purpose of serving purchasers of hemp concentrate derived products or hemp extract derived products without a license issued under this Article by the Department. No person shall be an officer, director, manager, or employee of a hemp concentrate retail organization without having been issued a hemp concentrate retail agent card by the Department.

(c) Subject to this Act, the Department may exercise the following powers and duties:

(1) Prescribe forms to be issued for the administration and enforcement of this Article.

(2) Examine, inspect, and investigate the premises, operations, and records of hemp concentrate retail organization applicants and licensees.

(3) Conduct investigations of possible violations of this Act pertaining to hemp concentrate retail organization or hemp concentrate retail agents.

(4) Conduct hearings on proceedings to refuse to issue or renew licenses or to revoke, suspend, place on probation, reprimand, or otherwise discipline a license under this Article or take other nondisciplinary action.

(5) Adopt rules required for the administration of this Article.

Section 15-15. Application for hemp concentrate retailers. An applicant seeking issuance of a hemp concentrate retailer shall submit an application on forms provided by the Department. An applicant must meet the following requirements:

(1) payment of a nonrefundable application fee of $5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) certification that the applicant will comply with the requirements contained in this Act;

(3) the legal name of the proposed hemp concentrate retailer;

(4) a statement that the hemp concentrate retailer agrees to respond to the Department's supplemental requests for information;

(5) from each principal officer, a statement indicating whether that person:

(A) has previously held or currently holds an ownership interest in a cannabis business establishment or a hemp business establishment in this State; or

(B) has held an ownership interest in a cannabis dispensing organization, hemp retailer organization, or its equivalent in another state or territory of the United States that had the cannabis dispensing organization registration, hemp retailer organization, or license suspended, revoked, placed on probationary status, or subjected to other disciplinary action;

(6) disclosure of whether any principal officer has ever filed for bankruptcy or defaulted on spousal support or child support obligation;

(7) a resume for each principal officer, including whether that person has an academic degree, certification, or relevant experience with a hemp business establishment or in a related industry;

(8) a description of the training and education that will be provided to hemp concentrate retailer agents;

(9) a copy of the proposed operating bylaws;

(10) a copy of the proposed business plan that complies with the requirements in this Act, including, at a minimum, the following:

(A) a description of services to be offered; and

(B) a description of the process of dispensing hemp concentrate products;

(11) a copy of the proposed security plan that complies with the requirements in this Act, including:

(A) the process or controls that will be implemented to monitor the hemp concentrate retailer, secure the premises, agents, and currency, and prevent the diversion, theft, or loss of hemp concentrate products; and

(B) the process to ensure that access to the restricted access areas is restricted to, registered agents, service professionals, hemp distributor agents, Department inspectors, and security personnel;

(12) a proposed inventory control plan that complies with this Section;

(13) a proposed floor plan, including a square footage estimate, and a description of proposed security devices, including, without limitation, cameras, motion detectors, servers, video storage capabilities, and alarm service providers;

(14) the name, address, social security number, and date of birth of each principal officer and board member of the hemp concentrate retailer; each of those individuals shall be at least 21 years of age;

(15) the address, telephone number, and email address of the applicant's principal place of business, if applicable. A post office box is not permitted;

(16) written summaries of any information regarding instances in which a business or nonprofit organization that a prospective board member previously managed or served on was fined or censured or any instances in which a business or nonprofit organization that a prospective board member previously managed or served on had its registration suspended or revoked in any administrative or judicial proceeding;

(17) a plan for community engagement;

(18) procedures to ensure accurate recordkeeping and security measures that are in accordance with this Article and Department rules;

(19) the estimated volume of hemp concentrate products it plans to store at the hemp concentrate retailer;

(20) a description of the features that will provide accessibility to purchasers, as required by the Americans with Disabilities Act;

(21) a detailed description of air treatment systems that will be installed to reduce odors;

(22) a reasonable assurance that the issuance of a license will not have a detrimental impact on the community in which the applicant wishes to locate;

(23) the dated signature of each principal officer;

(24) a description of the enclosed, locked facility where hemp concentrate products will be stored by the hemp concentrate retailer;

(25) signed statements from each hemp concentrate retailer agent stating that he or she will not divert hemp concentrate products;

(26) a diversity plan that includes a narrative of at least 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity;

(27) a contract with a private security contractor that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 in order for the hemp concentrate retailer to have adequate security at its facility; and

(28) any other information deemed necessary by the Illinois Cannabis Regulation Oversight Officer to conduct the disparity and availability study referenced in subsection (e) of Section 5-45 of the Cannabis Regulation and Tax Act.

Section 15-20. Selection criteria for a hemp concentrate license.

(a) An applicant for a hemp concentrate license must submit all required information, including the information required under Section 15-15, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified.

(b) If the Department receives an application that fails to provide the required elements contained in this Section, the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to resubmit the incomplete information. Applications that are still incomplete after this opportunity to cure will not be scored and will be disqualified.

(c) The Department shall, by rule, develop a system to score hemp concentrate license applications to administratively rank applications based on the clarity, organization, and quality of the applicant's responses to required information. Applicants shall be awarded points based on the following categories:

(1) Suitability of employee training plan. The plan includes an employee training plan that demonstrates that employees will understand the rules and laws to be followed by hemp concentrate retail agents, have knowledge of any security measures and operating procedures of the hemp concentrate retailer, and are able to advise purchasers on how to safely consume hemp concentrate derived products and use individual products offered by the hemp concentrate retailers.

(2) Security and recordkeeping.

(A) The security plan accounts for the prevention of the theft or diversion of hemp concentrate derived product. The security plan demonstrates safety procedures for hemp concentrate retail agents and purchasers, and safe delivery and storage of hemp concentrate derived products and currency. It demonstrates compliance with all security requirements in this Act and rules.

(B) A plan for recordkeeping, tracking, and monitoring inventory, quality control, and other policies and procedures that will promote standard recordkeeping and discourage unlawful activity. This plan includes the applicant's strategy to communicate with the Department and the Illinois State Police on the destruction and disposal of hemp concentrate derived products. The plan must also demonstrate compliance with this Act and rules.

(C) The security plan shall also detail which private security contractor licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 the dispensary will contract with in order to provide adequate security at its facility.

(3) The applicant's business plan, finances, operating, and floor plan.

(A) The business plan shall describe, at a minimum, how the retailer will be managed on a long-term basis. This shall include a description of the retailer's point-of-sale system, purchases and denials of sale, confidentiality, and products and services to be offered. It must demonstrate compliance with this Act and rules.

(B) The operating plan shall include, at a minimum, best practices for day-to-day retailer operation and staffing. The operating plan may also include information about employment practices, including information about the percentage of full-time employees who will be provided a living wage.

(C) The proposed floor plan is suitable for public access, promotes safe sale of hemp concentrate derived products, is compliant with the Americans with Disabilities Act and the Environmental Barriers Act, and facilitates safe product handling and storage.

(4) Knowledge and experience.

(A) The applicant's principal officers must demonstrate experience and qualifications in business management or experience with the hemp industry. This includes ensuring optimal safety and accuracy in sale of hemp cannabinoid products.

(B) The applicant's principal officers must demonstrate knowledge of various hemp cannabinoids or varieties and describe the types and quantities of products planned to be sold. This includes confirmation of whether the hemp concentrate retailer plans to sell consumption paraphernalia or edibles.

(C) Knowledge and experience may be demonstrated through experience in other comparable industries that reflect on the applicant's ability to operate a hemp business establishment.

(5) Labor and employment practices. The applicant may describe plans to provide a safe, healthy, and economically beneficial working environment for its agents, including, but not limited to, codes of conduct, health care benefits, educational benefits, retirement benefits, living wage standards, and entering a labor peace agreement with employees.

(6) Environmental plan. The applicant may demonstrate an environmental plan of action to minimize the carbon footprint, environmental impact, and resource needs for the hemp concentrate retailer, which may include, without limitation, recycling hemp cannabinoid product packaging.

(7) Illinois owner. The applicant is 51% or more owned and controlled by an resident of this State who can prove residency in each of the past 5 years with tax records or 2 of the following:

(A) a signed lease agreement that includes the applicant's name;

(B) a property deed that includes the applicant's name;

(C) school records;

(D) a voter registration card;

(E) an Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card;

(F) a paycheck stub;

(G) a utility bill; or

(H) any other proof of residency or other information necessary to establish residence as provided by rule.

(8) Status as veteran. The applicant is 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran, as that term is defined by Section 45-57 of the Illinois Procurement Code.

(9) A diversity plan (5% of the total points that may be awarded). The plan includes a narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity.

(d) The Department may verify information contained in each application and accompanying documentation to assess the applicant's veracity and fitness to operate a hemp concentrate retail organization.

(e) The Department may, in its discretion, refuse to issue an authorization to any applicant who:

(1) is unqualified to perform the duties required of the applicant;

(2) fails to disclose or states falsely any information called for in the application;

(3) has been found guilty of a violation of this Act, who has had any disciplinary order entered against it by the Department, who has entered into a disciplinary or nondisciplinary agreement with the Department, or whose medical cannabis dispensing organization, medical cannabis cultivation organization, Early Approval Adult Use Dispensing Organization License, Early Approval Adult Use Dispensing Organization License at a secondary site, Early Approval Cultivation Center License, Conditional Adult Use Cannabis Dispensing Organization License, Adult Use Cannabis Dispensing Organization License, or hemp retail license was suspended, restricted, revoked, or denied for just cause or the applicant's cannabis business establishment license or hemp business establishment license was suspended, restricted, revoked, or denied in any other state; or

(4) has engaged in a pattern or practice of unfair or illegal practices, methods, or activities in the conduct of owning a cannabis business establishment, hemp business establishment or other business.

(f) The Department shall deny the license if any principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

(g) The Department shall verify an applicant's compliance with the requirements of this Article and rules before issuing a hemp concentrate retailer license.

(h) If an applicant is awarded a license, the information and plans provided in the application shall become a condition of the hemp concentrate retailer license except as otherwise provided by this Act or rule. Hemp concentrate retailer organizations shall have a duty to disclose any material changes to the application. The Department shall review all material changes disclosed by the hemp concentrate retailer and may reevaluate its prior decision regarding the awarding of a license, including, but not limited to, suspending or permanently revoking a license. Failure to comply with the conditions or requirements in the application may subject the hemp concentrate retailer to discipline, up to and including suspension or permanent revocation of its authorization or license by the Department.

Section 15-25. Hemp concentrate retailer agent identification card; agent training.

(a) The Department shall:

(1) verify the information contained in an application or renewal for a hemp concentrate retailer agent identification card submitted under this Article, and approve or deny an application or renewal, within 30 days of receiving a completed application or renewal application and all supporting documentation required by rule;

(2) issue a hemp concentrate retailer agent identification card to a qualifying agent within 15 business days of approving the application or renewal;

(3) enter the registry identification number of the hemp concentrate retailer where the agent works;

(4) within one year from the effective date of this Act, allow for an electronic application process and provide a confirmation by electronic or other methods that an application has been submitted; and

(5) collect a $100 nonrefundable fee from the applicant to be deposited into the Cannabis Regulation Fund.

(b) A hemp concentrate retailer agent must keep the agent's hemp concentrate retailer agent identification card visible at all times when in the hemp concentrate retailer.

(c) The hemp concentrate retailer agent identification card shall contain the following:

(1) the name of the cardholder;

(2) the date of issuance and expiration date of the hemp concentrate retailer agent identification card;

(3) a random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters that is unique to the cardholder; and

(4) a photograph of the cardholder.

(d) The hemp concentrate retailer agent identification card shall be immediately returned to the hemp concentrate retailer upon termination of employment.

(e) The Department shall not issue a hemp concentrate retailer agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

(f) Any card lost by a hemp concentrate retailer agent shall be reported to the Illinois State Police and the Department immediately upon discovery of the loss.

(g) An applicant shall be denied a hemp concentrate retailer agent identification card renewal if the applicant fails to complete the training provided for in this Section.

(h) Each owner, manager, employee, and agent of a hemp concentrate retailer shall successfully complete hemp concentrate retail sales training, including completing a responsible vendor program, as follows:

(1) 90 days after employment at a licensed hemp concentrate retailer or 90 days after the hemp concentrate retailers receives a license, all owners, managers, employees, and agents involved in the handling or sale of hemp concentrate derived products shall attend and successfully complete a responsible vendor program and annually thereafter.

(2) Responsible vendor program training modules shall include at least 2 hours of instruction time approved by the Department, including:

(A) Health and safety concerns of hemp concentrate derived products use, including the responsible use of hemp concentrate derived products, its physical effects, onset of physiological effects, recognizing signs of impairment, and appropriate responses in the event of overconsumption.

(B) Training on laws and regulations on driving while under the influence and operating a watercraft or snowmobile while under the influence.

(C) Sales to minors prohibition, including covering all relevant Illinois laws and rules.

(D) Quantity limitations on sales to purchasers, including covering all relevant Illinois laws and rules.

(E) Acceptable forms of identification, including:

(i) how to check identification; and

(ii) common mistakes made in verification.

(F) Safe storage of hemp concentrate derived products.

(G) Compliance with all inventory tracking system regulations.

(H) Waste handling, management, and disposal.

(I) Health and safety standards.

(J) Maintenance of records.

(K) Security and surveillance requirements.

(L) Permitting inspections by State and local licensing and enforcement authorities.

(M) Privacy issues.

(N) Packaging and labeling requirement for sales to purchasers.

(O) Other areas as determined by rule.

(i) Upon the successful completion of the responsible vendor program, the provider shall deliver proof of completion either through mail or electronic communication to the hemp concentrate retailer, which shall retain a copy of the certificate.

(j) The license of a hemp concentrate retailer whose owners, managers, employees, or agents fail to comply with this Section may be suspended, permanently revoked, or may face other disciplinary action.

(k) The regulation of hemp concentrate retail sale and employee training is an exclusive function of the State, and regulation by a unit of local government, including a home rule unit, is prohibited. This subsection (k) is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(l) Persons seeking Department approval to offer the training required by paragraph (2) of subsection (h) may apply for such approval between August 1 and August 15 of each odd-numbered year in a manner prescribed by the Department.

(m) Persons seeking Department approval to offer the training required by paragraph (2) of subsection (h) shall submit a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule. Any changes made to the training module shall be approved by the Department.

(n) The Department shall not unreasonably deny approval of a training module that meets all the requirements of paragraph (2) of subsection (h). A denial of approval shall include a detailed description of the reasons for the denial.

(o) Any person approved to provide the training required by subsection (h) shall submit an application for reapproval between August 1 and August 15 of each odd-numbered year and include a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule.

(p) All persons applying to become or renewing their registrations to be agents, including agents-in-charge and principal officers, shall disclose any disciplinary action taken against them that may have occurred in Illinois, another state, or another country in relation to their employment at a cannabis business establishment, hemp business establishment, or at any cannabis cultivation center, processor, infuser, dispensary, hemp processor, hemp infuser, or other hemp business establishment.

(q) An agent applicant may begin employment at a hemp concentrate retailer while the agent applicant's hemp concentrate retailer agent identification card application is pending. Upon approval, the Department shall issue the agent's hemp concentrate retailer agent identification card to the agent. If denied, the hemp concentrate retailer and the agent applicant shall be notified and the agent applicant must cease all activity at the hemp concentrate retailer immediately.

Section 15-30. Renewal.

(a) A hemp concentrate retailer license shall expire on March 31 of even-numbered years.

(b) A hemp concentrate retail agent identification card shall expire one year from the date it is issued.

(c) Any license holder and hemp concentrate retail agent shall submit a renewal application as provided by the Department and pay the required renewal fee. The Department shall require an agent, employee, contracting, and subcontracting diversity report and an environmental impact report with its renewal application. No license or agent identification card shall be renewed if it is currently under revocation or suspension for violation of this Article or any rules that may be adopted under this Article or the licensee, principal officer, board member, person having a financial or voting interest of 5% or greater in the licensee, or agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

(d) Renewal fees.

(1) For a hemp concentrate retailer license, $30,000, to be deposited into the Cannabis Regulation Fund.

(2) For a hemp concentrate retail agent identification card, $100, to be deposited into the Cannabis Regulation Fund.

(e) If a hemp concentrate retailer fails to renew its license before expiration, the hemp concentrate retailer shall cease operations until the license is renewed.

(f) If a hemp concentrate retail agent fails to renew the agent's registration before its expiration, the agent shall cease to perform duties authorized by this Article at a hemp concentrate retailer until the agent's registration is renewed.

(g) A hemp concentrate retailer that continues to operate without renewal of its license or a hemp concentrate retail agent that continues to perform duties authorized by this Article at a hemp concentrate retailer that has failed to renew its license is subject to penalty as provided in this Article or any rules that may be adopted pursuant to this Article.

(h) The Department shall not renew a license if the applicant is delinquent in filing required tax returns or paying amounts owed to the State of Illinois. The Department shall not renew a hemp concentrate retail agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 15-35. Disclosure of ownership and control.

(a) Each hemp concentrate retailer applicant and licensee shall file and maintain a table of organization, ownership, and control with the Department. The table of organization, ownership, and control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee.

(b) The table of organization, ownership, and control shall identify the following information:

(1) The management structure, ownership, and control of the applicant or license holder, including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and the percentage ownership interest in the parent company and the retailer.

(2) If the applicant or licensee is a business entity with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).

(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the table of organization, ownership, and control:

(1) The name and percentage of ownership interest of each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.

(2) To the extent known, the names and percentage of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.

(d) A hemp concentrate retailer with a parent company or companies, or partially owned or controlled by another entity, must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A hemp concentrate shall not shield its ownership or control from the Department.

(e) All principal officers must submit a complete online application with the Department within 14 days of the hemp concentrate retailer being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.

(f) A principal officer may not allow the principal officer's registration to expire.

(g) A hemp concentrate retailer separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.

(h) A principal officer not in compliance with the requirements of this Act shall be removed from the principal officer's position with the hemp concentrate retailer or shall otherwise terminate the principal officer's affiliation. Failure to do so may subject the hemp concentrate retailer to discipline, suspension, or revocation of its license by the Department.

(i) It is the responsibility of the hemp concentrate retailer and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the hemp concentrate retailer primary or secondary contact information. Any changes must be made to the Department in writing.

Section 15-40. Financial responsibility. Evidence of financial responsibility is a requirement for the issuance, maintenance, or reactivation of a license under this Article. Evidence of financial responsibility shall be used to guarantee that the hemp concentrate retailer timely and successfully completes construction, operates in a manner that provides an uninterrupted supply of hemp concentrate derived products, faithfully pays registration renewal fees, keeps accurate books and records, makes regularly required reports, complies with State tax requirements, and conducts the hemp concentrate retailer in conformity with this Act and rules. Evidence of financial responsibility shall be provided by one of the following:

(1) Establishing and maintaining an escrow or surety account in a financial institution in the amount of $50,000, with escrow terms, approved by the Department, that it shall be payable to the Department as provided in this Act and rules. The following applies to escrow or surety accounts:

(A) A financial institution may not return money in an escrow or surety account to the hemp concentrate retailer that established the account or a representative of the organization unless the organization or representative presents a statement issued by the Department indicating that the account may be released.

(B) The escrow or surety account shall not be canceled on less than 30 days' notice in writing to the Department, unless otherwise approved by the Department. If an escrow or surety account is canceled and the registrant fails to secure a new account with the required amount on or before the effective date of cancellation, the registrant's registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the escrow or surety account.

(2) Providing a surety bond in the amount of $50,000 and naming the hemp concentrate retailer as principal of the bond, with terms approved by the Department that the bond defaults to the Department in the event of circumstances outlined in this Act and rules. Bond terms shall include:

(A) The business name and registration number on the bond must correspond exactly with the business name and registration number in the Department's records.

(B) The bond must be written on a form approved by the Department.

(C) A copy of the bond must be received by the Department within 90 days after the effective date.

(D) The bond may not be canceled by a surety on less than 30 days' notice in writing to the Department. If a bond is canceled and the registrant fails to file a new bond with the Department in the required amount on or before the effective date of cancellation, the registrant's registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.

Section 15-45. Changes to a hemp concentrate retailer.

(a) A license shall be issued to the specific hemp concentrate retailer identified on the application and for the specific location proposed. The license is valid only as designated on the license and for the location for which it is issued.

(b) A hemp concentrate retailer may only add principal officers approved by the Department.

(c) A hemp concentrate retailer shall provide written notice of the removal of a principal officer within 5 business days after removal. The notice shall include the written agreement of the principal officer being removed, unless otherwise approved by the Department, and allocation of ownership shares after removal in an updated ownership chart.

(d) A hemp concentrate retailer shall provide a written request to the Department for the addition of principal officers. A hemp concentrate retailer shall submit proposed principal officer applications on forms approved by the Department.

(e) Any proposed new principal officer shall be subject to the requirements of this Act and any rules that may be adopted pursuant to this Act.

(f) The Department may prohibit the addition of a principal officer to a hemp concentrate retailer for failure to comply with this Act and any rules that may be adopted pursuant to this Act.

(g) A hemp concentrate retailer may not assign a license.

(h) A hemp concentrate retailer may not transfer a license without prior Department approval. Such approval may be withheld if the person to whom the license is being transferred does not commit to the same or a similar community engagement plan provided as part of the hemp concentrate retailer's application and such transferee's license shall be conditional upon that commitment.

(i) With the addition or removal of principal officers, the Department shall review the ownership structure to determine whether the change in ownership has had the effect of a transfer of the license. The hemp concentrate retailer shall supply all ownership documents requested by the Department.

(j) A hemp concentrate retailer may apply to the Department to approve a sale of the hemp concentrate retailer. A request to sell the hemp concentrate retailer must be on application forms provided by the Department and must comply with the following:

(1) New application materials shall comply with this Act and any rules that may be adopted pursuant to this Act.

(2) Application materials shall include a change of ownership fee of $5,000 to be deposited into the Cannabis Regulation Fund.

(3) The application materials shall provide proof that the transfer of ownership will not have the effect of granting any of the owners or principal officers direct or indirect ownership or control of more than 10 hemp business establishments.

(4) Any new principal officer shall each complete the proposed new principal officer application.

(5) If the Department approves the application materials and proposed new principal officer applications, it shall perform an inspection before approving the sale and issuing the hemp concentrate retailer license.

(6) If a new license is approved, the Department shall issue a new license number and certificate to the new hemp concentrate retailer.

(k) The hemp concentrate retailer shall provide the Department with the personal information for all new hemp concentrate retail agents as required in this Article and all new hemp concentrate retail agents shall be subject to the requirements of this Article. A hemp concentrate retail agent must obtain a hemp concentrate retail agent identification card from the Department before beginning work at a hemp concentrate retailer.

(l) Before remodeling, expansion, reduction, or other physical, noncosmetic alteration of a hemp concentrate retailer physical space, the hemp concentrate retailer must notify the Department and confirm the alterations are in compliance with this Act and any rules that may be adopted pursuant to this Act.

Section 15-50. Administration.

(a) A hemp concentrate retailer shall establish, maintain, and comply with written policies and procedures as submitted in the business, financial, and operating plan as required in this Article or by rules established by the Department, and approved by the Department, for the security, storage, inventory, and distribution of hemp concentrate derived products. The policies and procedures shall include methods for identifying, recording, and reporting diversion, theft, or loss, and for correcting errors and inaccuracies in inventories. At a minimum, hemp concentrate retailers shall ensure the written policies and procedures provide for the following:

(1) Mandatory and voluntary recalls of hemp concentrate derived products. The policies shall be adequate to deal with recalls due to any action initiated at the request of the Department and any voluntary action by the hemp concentrate retailer to remove defective or potentially defective hemp concentrate derived products from the market or any action undertaken to promote public health and safety, including:

(A) a mechanism reasonably calculated to contact purchasers who have, or likely have, obtained the product from the hemp concentrate retailer, including information on the policy for return of the recalled product;

(B) a mechanism to identify and contact the hemp concentrate infuser or hemp processor that manufactured the hemp concentrate derived product;

(C) policies for communicating with the Department and the Department of Public Health within 24 hours after discovering defective or potentially defective hemp concentrate derived products; and

(D) policies for destruction of any recalled hemp concentrate derived product.

(2) Responses to local, State, or national emergencies, including natural disasters, that affect the security or operation of a hemp concentrate retailer.

(3) Segregation and destruction of outdated, damaged, deteriorated, misbranded, or adulterated hemp concentrate derived products. This procedure shall provide for written documentation of the hemp concentrate derived products disposition.

(4) Ensure the oldest stock of a hemp concentrate derived product is distributed first. The procedure may permit deviation from this requirement, if such deviation is temporary and appropriate.

(5) Training of hemp concentrate retail agents in the provisions of this Act and any rules adopted to effectively operate the point-of-sale system and the State's verification system, proper inventory handling and tracking, specific uses of hemp concentrate derived products, instruction regarding regulatory inspection preparedness and law enforcement interaction, awareness of the legal requirements for maintaining status as an agent, and any other topics as specified by the hemp concentrate retailer or the Department. The hemp concentrate retailer shall maintain evidence of all training provided to each agent in its files that is subject to inspection and audit by the Department. The hemp concentrate retailer shall ensure agents receive at least 8 hours of training subject to the requirements in subsection (h) of Section 15-25 annually, unless otherwise approved by the Department.

(6) Maintenance of business records consistent with industry standards, including bylaws, consents, manual or computerized records of assets and liabilities, audits, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers. Records shall be maintained in a manner consistent with this Act and shall be retained for 5 years.

(7) Inventory control, including:

(A) tracking purchases and denials of sale; and

(B) disposal of unusable or damaged hemp concentrate derived products as required by this Act and rules.

(8) Purchaser education and support, including:

(A) current educational information issued by the Department of Public Health about the health risks associated with the use or abuse of hemp concentrate derived products;

(B) information about possible side effects;

(C) prohibition on smoking hemp concentrate derived products in public places; and

(D) offering any other appropriate purchaser education or support materials.

(b) A hemp concentrate retailer shall maintain copies of the policies and procedures on the hemp concentrate retailer premises and provide copies to the Department upon request. The hemp concentrate retailer shall review the hemp concentrate retailer policies and procedures at least once every 12 months from the issue date of the license and update as needed due to changes in industry standards or as requested by the Department.

(c) A hemp concentrate retailer shall ensure that each principal officer and each hemp concentrate retail agent has a current hemp concentrate retailer agent identification card in the agent's immediate possession when the agent is at the hemp concentrate retailer.

(d) A hemp concentrate retailer shall provide prompt written notice to the Department, including the date of the event, when a hemp concentrate retail agent no longer is employed by the hemp concentrate retailer.

(e) A hemp concentrate retailer and hemp concentrate retailer agent shall promptly document and report any loss or theft of hemp concentrate derived product from the hemp concentrate retailer to the Illinois State Police and the Department.

(f) A hemp concentrate retailer shall post the following information and signage in a conspicuous location in an area of the hemp concentrate retailer accessible to consumers:

(1) The hemp concentrate retailer's license.

(2) The hours of operation.

(3) A placard that states the following: "Hemp concentrate derived products 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.".

(4) A hemp concentrate retailer that sells edible hemp concentrate derived products must display a placard that states the following:

(A) "Edible hemp concentrate derived products were produced in a kitchen that may also process common food allergens."; and

(B) "The effects of hemp concentrate derived products can vary from person to person, and it can take as long as two hours to feel the effects of some hemp concentrate derived products. Carefully review the portion size information and warnings contained on the product packaging before consuming.".

All of the required signage in paragraphs (3) and (4) shall be no smaller than 24 inches tall by 36 inches wide, with typed letters no smaller than 2 inches. The signage shall be clearly visible and readable by customers. The signage shall be placed in the area where hemp concentrate derived products are sold and may be translated into additional languages as needed. The Department may require a hemp concentrate retailer to display the required signage in a different language, other than English, if the Secretary deems it necessary.

(g) A hemp concentrate retailer shall prominently post notices inside the hemp concentrate retailer that state activities that are strictly prohibited and punishable by law, including, but not limited to:

(1) no minors permitted on the premises; and

(2) distribution to persons under the age of 21 is prohibited.

Section 15-55. Operational requirements; prohibitions.

(a) A hemp concentrate retailer shall operate in accordance with the representations made in its application and license materials. It shall be in compliance with this Act and rules.

(b) A hemp concentrate retailer must include the legal name of the hemp concentrate retailer on the packaging of any hemp concentrate derived product it sells.

(c) Hemp concentrate derived product must be obtained from an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, adult use cannabis infuser that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or hemp processor.

(d) A hemp concentrate retailer may not sell any product containing alcohol except tinctures that are limited to containers no larger than 100 milliliters.

(e) A hemp concentrate retailer shall inspect and count product received from a State registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor before selling it.

(f) A hemp concentrate retailer may only accept hemp concentrate derived product deliveries into a restricted access area. Deliveries may not be accepted through the public or limited access areas unless otherwise approved by the Department.

(g) A hemp concentrate retailer shall maintain compliance with State and local building, fire, and zoning requirements or regulations.

(h) A hemp concentrate retailer shall submit a list to the Department of the names of any service professional that will work at the hemp concentrate retailer. The list shall include a description of the type of business or service provided. Changes to the service professional list shall be promptly provided. No service professional shall work in the hemp concentrate retailer until the name is provided to the Department on the service professional list.

(i) A hemp concentrate retailer license allows the hemp concentrate retailer to be operated only at a single location.

(j) A hemp concentrate retailer may operate between 6 a.m. and 10 p.m. local time.

(k) A hemp concentrate retailer must keep all lighting outside and inside the hemp concentrate retailer in good working order and at a wattage sufficient for security cameras.

(l) A hemp concentrate retailer must keep all air treatment systems that will be installed to reduce odors in good working order.

(m) A hemp concentrate retailer must contract with a private security contractor that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 to provide on-site security at all hours of the hemp concentrate retailer.

(n) A hemp concentrate retailer shall ensure that any building or equipment used by a hemp concentrate retailer for the storage or sale of hemp concentrate derived products is maintained in a clean and sanitary condition.

(o) The hemp concentrate retailer shall be free from infestation by insects, rodents, or pests.

(p) A hemp concentrate retailer may not:

(1) produce or manufacture hemp concentrate derived products;

(2) accept a hemp concentrate derived product from an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor;

(3) enter into an exclusive agreement with any Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or hemp processor. Hemp concentrate retailer shall provide consumers an assortment of products from various hemp business establishment licensees and hemp business establishment licensees such that the inventory available for sale at any hemp concentrate retailer from any single Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or hemp processor entity shall not be more than 40% of the total inventory available for sale. For the purpose of this subsection, an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or hemp processor shall be considered part of the same entity if the licensees share at least one principal officer. The Department may request that a hemp concentrate retailer diversify its products as needed or otherwise discipline a hemp concentrate retailer for violating this requirement;

(4) refuse to conduct business with an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor that has the ability to properly deliver the product and is permitted by the Department, on the same terms as other Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor with whom it is dealing;

(5) operate drive-through windows;

(6) allow for the sale of hemp concentrate derived products in vending machines;

(7) transport hemp concentrate derived products to residences or other locations where purchasers may be for delivery;

(8) enter into agreements to allow persons who are hemp concentrate retail agents to deliver hemp concentrate derived products or to transport hemp concentrate derived products to purchasers;

(9) operate a hemp concentrate retailer if its video surveillance equipment is inoperative;

(10) operate a hemp concentrate retailer if the point-of-sale equipment is inoperative;

(11) operate a hemp concentrate retailer if the State's hemp concentrate derived products electronic verification system is inoperative;

(12) have fewer than 2 people working at the hemp concentrate retailer at any time while the hemp concentrate retailer is open;

(13) be located within 1,500 feet of the property line of a preexisting cannabis dispensing organization or a hemp concentrate retailer unless the applicant is Qualifying Applicant or Social Equity Justice Involved Applicant under the Cannabis Regulation and Tax Act;

(14) sell hemp concentrate derived products in combination or bundled with each other or any other items for one price. Each item of hemp concentrate derived product must be separately identified by quantity and price on the receipt;

(15) sell cannabis, cannabis infused products, or cannabis concentrate that is regulated under the Cannabis Regulation and Tax Act; or

(16) violate any other requirements or prohibitions set by Department rules.

(q) It is unlawful for any person having a hemp concentrate retailer license or any officer, associate, member, representative, or agent of such licensee to accept, receive, or borrow money or anything else of value or accept or receive credit, other than merchandising credit in the ordinary course of business for a period not to exceed 30 days, directly or indirectly from any Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor in exchange for preferential placement on the shelves, display cases, or website of a hemp concentrate retailer or a Qualifying Applicant or Social Equity Justice Involved Applicant dispensary under the Cannabis Regulation and Tax Act. This includes anything received or borrowed or from any stockholders, officers, agents, or persons connected with an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor.

(r) It is unlawful for any person having a hemp concentrate retailer license to enter into any contract with any person licensed to infuse, process, or transport hemp concentrate derived products whereby such hemp concentrate retailer agrees not to sell any hemp concentrate derived product infused, processed, transported, manufactured, or distributed by any other Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor and any provision in any contract violative of this Section shall render the whole of such contract void and no action shall be brought thereon in any court.

Section 15-60. Inventory control system.

(a) A hemp concentrate retailer agent-in-charge shall have primary oversight of the hemp concentrate retailer hemp concentrate derived product inventory verification system, and its point-of-sale system. The inventory point-of-sale system shall be real-time, web-based, and accessible by the Department at any time. The point-of-sale system shall track, at a minimum the date of sale, amount, price, and currency.

(b) A hemp concentrate retailer shall establish an account with the State's verification system that documents the following:

(1) Each sales transaction at the time of sale and each day's beginning inventory, acquisitions, sales, disposal, and ending inventory.

(2) Acquisition of hemp concentrate derived products from an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor, including the following:

(A) A description of the products, including the quantity, variety, and batch number of each product received.

(B) The name and registry identification number of the Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or hemp processor providing the hemp concentrate derived product.

(C) The name and registry identification number of the Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor agent delivering the hemp concentrate derived product.

(D) The name and registry identification number of the hemp concentrate retail agent receiving the hemp concentrate derived products.

(E) The date of acquisition.

(3) The disposal of hemp concentrate derived product, including the following:

(A) A description of the products, including the quantity, variety, batch number, and reason for the hemp concentrate derived product being disposed.

(B) The method of disposal.

(C) The date and time of disposal.

(c) Upon hemp concentrate derived product delivery, a hemp concentrate retailer shall confirm the product's name, hemp concentrate, weight, and identification number on the manifest matches the information on the hemp concentrate derived product label and package. The product name listed and the weight listed in the State's verification system shall match the product packaging.

(d) The agent-in-charge shall conduct daily inventory reconciliation documenting and balancing hemp concentrate derived product inventory by confirming the State's verification system matches the hemp concentrate retailer's point-of-sale system and the amount of physical product at the hemp concentrate retailer as follows:

(1) A hemp concentrate retailer must receive Department approval before completing an inventory adjustment. It shall provide a detailed reason for the adjustment. Inventory adjustment documentation shall be kept at the dispensary for 2 years from the date performed.

(2) If the hemp concentrate retailer identifies an imbalance in the amount of hemp concentrate derived product after the daily inventory reconciliation due to mistake, the hemp concentrate retailer shall determine how the imbalance occurred and immediately, upon discovery, take and document corrective action. If the hemp concentrate retailer cannot identify the reason for the mistake within 2 calendar days after it first discovered the mistake, it shall inform the Department immediately in writing of the imbalance and the corrective action taken to date. The hemp concentrate retailer shall work diligently to determine the reason for the mistake.

(3) If the hemp concentrate retailer identifies an imbalance in the amount of hemp concentrate derived product after the daily inventory reconciliation or through other means due to theft, criminal activity, or suspected criminal activity, the hemp concentrate retailer shall immediately determine how the reduction occurred and take and document corrective action. Within 24 hours after the first discovery of the reduction due to theft, criminal activity, or suspected criminal activity, the hemp concentrate retailer shall inform the Department and the Illinois State Police in writing.

(4) The hemp concentrate retailer shall file an annual compilation report with the Department, including a financial statement that shall include, but not be limited to, an income statement, balance sheet, profit and loss statement, statement of cash flow, wholesale cost and sales, and any other documentation requested by the Department in writing. The financial statement shall include any other information the Department deems necessary in order to effectively administer this Act and all rules, orders, and final decisions adopted under this Act. Reports required by this paragraph shall be filed with the Department within 60 days after the end of the calendar year. The report shall include a letter authored by a licensed certified public accountant that it has been reviewed and is accurate based on the information provided. The hemp concentrate retailer's, financial statement, and accompanying documents are not required to be audited unless specifically requested by the Department.

(e) A hemp concentrate retailer shall:

(1) maintain the documentation required in this Section in a secure locked location at the retailer for 5 years from the date on the document;

(2) provide any documentation required to be maintained in this Section to the Department for review upon request; and

(3) if maintaining a bank account, retain for a period of 5 years a record of each deposit or withdrawal from the account.

(f) If a hemp concentrate retailer chooses to have a return policy for hemp concentrate derived product, the hemp concentrate retailer shall seek prior approval from the Department.

Section 15-65. Storage requirements.

(a) A hemp concentrate retailer must store inventory on its premises. All inventory stored on the premises must be secured in a restricted access area and tracked consistently with the inventory tracking rules.

(b) A hemp concentrate retailer shall be of suitable size and construction to facilitate cleaning, maintenance, and proper operations.

(c) A hemp concentrate retailer shall maintain adequate lighting, ventilation, temperature, humidity control, and equipment.

(d) Containers storing hemp concentrate derived products that have been tampered with, damaged, or opened shall be labeled with the date opened and quarantined from other hemp concentrate derived products in the vault until they are disposed.

(e) Hemp concentrate derived products that was tampered with, expired, or damaged shall not be stored at the premises for more than 7 calendar days.

(f) Hemp concentrate derived product samples shall be in a sealed container. Samples shall be maintained in the restricted access area.

(g) The hemp concentrate retailer storage areas shall be maintained in accordance with the security requirements in this Act and rules.

(h) Hemp concentrate derived products must be stored at appropriate temperatures and under appropriate conditions to help ensure that its packaging, strength, quality, and purity are not adversely affected.

Section 15-70. Dispensing hemp concentrate derived products.

(a) Before a hemp concentrate retail agent dispenses hemp concentrate derived products to a purchaser, the agent shall do all of the following:

(1) Verify the age of the purchaser by checking a government-issued identification card by use of an electronic reader or electronic scanning device to scan a purchaser's government-issued identification, if applicable, to determine the purchaser's age and the validity of the identification.

(2) Verify the validity of the government-issued identification card by use of an electronic reader or electronic scanning device to scan a purchaser's government-issued identification, if applicable, to determine the purchaser's age and the validity of the identification.

(3) Offer any appropriate purchaser education or support materials.

(4) Enter the following information into the State's hemp concentrate derived products electronic verification system:

(A) the hemp concentrate retail agent's identification number, or if the agent's card application is pending the Department's approval, a temporary and unique identifier until the agent's card application is approved or denied by the Department;

(B) the hemp concentrate retailer identification number;

(C) the amount and type of hemp concentrate derived product sold; and

(D) the date and time the hemp concentrate derived product was sold.

(b) A hemp concentrate retailer shall refuse to sell hemp concentrate derived product to any person unless the person produces a valid identification showing that the person is 21 years of age or older.

(c) For the purposes of this Section, valid identification must:

(1) be valid and unexpired; and

(2) contain a photograph and the date of birth of the person.

Section 15-75. Destruction and disposal of hemp concentrate derived products.

(a) Hemp concentrate derived products must be destroyed by rendering them unusable using methods approved by the Department that comply with this Act and rules.

(b) Hemp concentrate derived products waste rendered unusable must be promptly disposed according to this Act and rules. Disposal of the hemp concentrate derived products waste rendered unusable may be delivered to a permitted solid waste facility for final disposition. Acceptable permitted solid waste facilities include, but are not limited to, the following:

(1) Compostable mixed waste: Compost, anaerobic digester, or other facility with approval of the jurisdictional health department.

(2) Noncompostable mixed waste: landfill, incinerator, or other facility with approval of the jurisdictional health department.

(c) All waste and unusable product shall be weighed, recorded, and entered into the inventory system before rendering it unusable. All waste and unusable hemp concentrate derived products shall be recorded and entered into the inventory system before rendering it unusable. Verification of this event shall be performed by an agent-in-charge and conducted in an area with video surveillance.

(d) Electronic documentation of destruction and disposal shall be maintained for a period of at least 5 years.

Section 15-80. Agent-in-charge.

(a) Every hemp concentrate retailer shall designate, at a minimum, one agent-in-charge for each licensed hemp concentrate retailer. The designated agent-in-charge must hold a hemp concentrate retail agent identification card. Maintaining an agent-in-charge is a continuing requirement for the license, except as provided in subsection (f).

(b) The agent-in-charge shall be a principal officer or a full-time agent of the hemp concentrate retailer and shall manage the hemp concentrate retailer. Managing the hemp concentrate retailer includes, but is not limited to, responsibility for opening and closing the hemp concentrate retailer, delivery acceptance, oversight of sales and hemp concentrate retail agents, recordkeeping, inventory, hemp concentrate retail agent training, and compliance with this Act and rules. Participation in affairs also includes the responsibility for maintaining all files subject to audit or inspection by the Department at the hemp concentrate retailer.

(c) The agent-in-charge is responsible for promptly notifying the Department of any change of information required to be reported to the Department.

(d) In determining whether an agent-in-charge manages the hemp concentrate retailer, the Department may consider the responsibilities identified in this Section, the number of hemp concentrate retail agents under the supervision of the agent-in-charge, and the employment relationship between the agent-in-charge and the hemp concentrate retailer, including the existence of a contract for employment and any other relevant fact or circumstance.

(e) The agent-in-charge is responsible for notifying the Department of a change in the employment status of all hemp concentrate retail agents within 5 business days after the change, including notice to the Department if the termination of an agent was for diversion of product or theft of currency.

(f) If an agent-in-charge is separated due to death, incapacity, termination, or any other reason and if the hemp concentrate retailer does not have an active agent-in-charge, the hemp concentrate retailer shall immediately contact the Department and request a temporary certificate of authority allowing the continuing operation. The request shall include the name of an interim agent-in-charge until a replacement is identified, or shall include the name of the replacement. The Department shall issue the temporary certificate of authority promptly after it approves the request. If a hemp concentrate retailer fails to promptly request a temporary certificate of authority after the separation of the agent-in-charge, its registration shall cease until the Department approves the temporary certificate of authority or registers a new agent-in-charge. No temporary certificate of authority shall be valid for more than 90 days. The succeeding agent-in-charge shall register with the Department in compliance with this Article. Once the permanent succeeding agent-in-charge is registered with the Department, the temporary certificate of authority is void. No temporary certificate of authority shall be issued for the separation of an agent-in-charge due to disciplinary action by the Department related to the agent-in-charge's conduct on behalf of the hemp concentrate retailer.

(g) The hemp concentrate retail agent-in-charge registration shall expire one year from the date it is issued. The agent-in-charge's registration shall be renewed annually. The Department shall review the hemp concentrate retailer's compliance history when determining whether to grant the request to renew.

(h) Upon termination of an agent-in-charge's employment, the hemp concentrate retailer shall immediately reclaim the hemp concentrate retail agent identification card. The hemp concentrate retailer shall promptly return the identification card to the Department.

(i) The Department may deny an application or renewal or discipline or revoke an agent-in-charge's hemp concentrate retail agent identification card for any of the following reasons:

(1) Submission of misleading, incorrect, false, or fraudulent information in the application or renewal application.

(2) Violation of the requirements of this Act or rules.

(3) Fraudulent use of the agent-in-charge's hemp concentrate retail agent identification card.

(4) Selling, distributing, transferring in any manner, or giving hemp concentrate derived products to any unauthorized person.

(5) Theft of hemp concentrate derived products, currency, or any other items from a hemp concentrate retailer.

(6) Tampering with, falsifying, altering, modifying, or duplicating an agent-in-charge's hemp concentrate retail agent identification card.

(7) Tampering with, falsifying, altering, or modifying the surveillance video footage, point-of-sale system, or the State's verification system.

(8) Failure to notify the Department immediately upon discovery that the agent-in-charge identification card has been lost, stolen, or destroyed.

(9) Failure to notify the Department within 5 business days after a change in the information provided in the application for an agent-in-charge identification card.

(10) Conviction of a felony offense under Section 2105-131, 2105-135, or 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois or any incident listed in this Act or rules following the issuance of an agent-in-charge's hemp concentrate retail agent identification card.

(11) Selling to purchasers in amounts above the limits provided in this Act.

(12) Delinquency in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 15-85. Security.

(a) A hemp concentrate retailer shall implement security measures to deter and prevent entry into and theft of hemp concentrate derived products or currency.

(b) A hemp concentrate retailer shall submit any changes to the floor plan or security plan to the Department for preapproval. All hemp concentrate derived product shall be maintained and stored in a restricted access area during construction.

(c) The hemp concentrate retailer shall implement security measures to protect the premises, purchasers, and hemp concentrate retail agents including, but not limited to, the following:

(1) Establish a locked door or barrier between the facility's entrance and the limited access area.

(2) Prevent individuals from remaining on the premises if they are not engaging in activity permitted by this Act or rules.

(3) Develop a policy that addresses the maximum capacity and purchaser flow in the waiting rooms and limited access areas.

(4) Dispose of hemp concentrate derived products in accordance with this Act and rules.

(5) During hours of operation, store and sell all hemp concentrate derived product from the restricted access area. During operational hours, hemp concentrate derived product shall be stored in an enclosed locked room or cabinet and accessible only to specifically authorized hemp concentrate retail agents.

(6) When the hemp concentrate retailer is closed, store all hemp concentrate derived product and currency in a reinforced vault room in the restricted access area and in a manner as to prevent diversion, theft, or loss.

(7) Keep the reinforced vault room and any other equipment or hemp concentrate derived product storage areas securely locked and protected from unauthorized entry.

(8) Keep an electronic daily log of hemp concentrate retail agents with access to the reinforced vault room and knowledge of the access code or combination.

(9) Keep all locks and security equipment in good working order.

(10) Maintain an operational security and alarm system at all times.

(11) Prohibit keys, if applicable, from being left in the locks, or stored or placed in a location accessible to persons other than specifically authorized personnel.

(12) Prohibit accessibility of security measures, including combination numbers, passwords, or electronic or biometric security systems to persons other than specifically authorized hemp concentrate retail agents.

(13) Ensure that the hemp concentrate retailer interior and exterior premises are sufficiently lit to facilitate surveillance.

(14) Ensure that trees, bushes, and other foliage outside of the hemp concentrate retailer premises do not allow for a person or persons to conceal themselves from sight.

(15) Develop emergency policies and procedures form securing all product and currency following any instance of diversion, theft, or loss of hemp concentrate derived products, and conduct an assessment to determine whether additional safeguards are necessary.

(16) Develop sufficient additional safeguards in response to any special security concerns, or as required by the Department.

(d) The Department may request or approve alternative security provisions that it determines are an adequate substitute for a security requirement specified in this Article. Any additional protections may be considered by the Department in evaluating overall security measures.

(e) A hemp concentrate retailer shall provide additional security as needed and in a manner appropriate for the community where it operates.

(f) Restricted access areas must meet the following criteria:

(1) All restricted access areas must be identified by the posting of a sign that is a minimum of 12 inches by 12 inches and that states "Do Not Enter - Restricted Access Area - Authorized Personnel Only" in lettering no smaller than one inch in height.

(2) All restricted access areas shall be clearly described in the floor plan of the premises, in the form and manner determined by the Department, reflecting walls, partitions, counters, and all areas of entry and exit. The floor plan shall show all storage, disposal, and retail sales areas.

(3) All restricted access areas must be secure, with locking devices that prevent access from the limited access areas.

(g) A hemp concentrate retailer shall have an adequate security plan and security system to prevent and detect diversion, theft, or loss of hemp concentrate derived products, currency, or unauthorized intrusion using commercial grade equipment installed by a State-licensed private alarm contractor or private alarm contractor agency that shall, at a minimum, include the following:

(1) A perimeter alarm on all entry points and glass break protection on perimeter windows.

(2) Security shatterproof tinted film on exterior windows.

(3) A failure notification system that provides an audible, text, or visual notification of any failure in the surveillance system, including, but not limited to, panic buttons, alarms, and video monitoring system. The failure notification system shall provide an alert to designated hemp concentrate retail agents within 5 minutes after the failure, either by telephone or text message.

(4) A duress alarm, panic button, and alarm, or holdup alarm and after-hours intrusion detection alarm that by design and purpose will directly or indirectly notify, by the most efficient means, the public safety answering point for the law enforcement agency having primary jurisdiction.

(5) Security equipment to deter and prevent unauthorized entrance into the hemp concentrate retailer, including electronic door locks on the limited and restricted access areas that include devices or a series of devices to detect unauthorized intrusion, which may include a signal system interconnected with a radio frequency method, cellular, private radio signals or other mechanical or electronic device.

Security system equipment and recordings shall be maintained in good working order and in a secure location so as to prevent theft, loss, destruction, or alterations.

Access to surveillance monitoring recording equipment shall be limited to persons who are essential to surveillance operations, law enforcement authorities acting within their jurisdiction, security system service personnel, and the Department. A current list of authorized hemp concentrate retail agents and service personnel that have access to the surveillance equipment must be available to the Department upon request.

Any security equipment shall be inspected and tested at regular intervals, not to exceed one month from the previous inspection, and tested to ensure the systems remain functional.

The security system shall provide protection against theft and diversion that is facilitated or hidden by tampering with computers or electronic records.

The hemp concentrate retailer shall ensure all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

(h) To monitor the hemp concentrate retailer, the hemp concentrate retailer shall incorporate continuous electronic video monitoring, that shall include the following:

(1) All monitors must be 19 inches or greater.

(2) Unobstructed video surveillance of all enclosed hemp concentrate retailer areas, unless prohibited by law, including all points of entry and exit that shall be appropriate for the normal lighting conditions of the area under surveillance. The cameras shall be directed so all areas are captured, including, but not limited to, safes, vaults, sales areas, and areas where hemp concentrate retailer is stored, handled, sold, or destroyed. Cameras shall be angled to allow for facial recognition, the capture of clear and certain identification of any person entering or exiting the hemp concentrate retail area and in lighting sufficient during all times of night or day.

(3) Unobstructed video surveillance of outside areas, the storefront, and the parking lot, that shall be appropriate for the normal lighting conditions of the area under surveillance. Cameras shall be angled so as to allow for the capture of facial recognition, clear and certain identification of any person entering or exiting the hemp concentrate retailer and the immediate surrounding area, and license plates of vehicles in the parking lot.

(4) 24-hour recordings from all video cameras available for immediate viewing by the Department upon request. Recordings shall not be destroyed or altered and shall be retained for at least 90 days. Recordings shall be retained as long as necessary if the retailer is aware of the loss or theft of hemp concentrate derived product or a pending criminal, civil, or administrative investigation or legal proceeding for which the recording may contain relevant information.

(5) The ability to immediately produce a clear, color still photo from the surveillance video, either live or recorded.

(6) A date and time stamp embedded on all video surveillance recordings. The date and time shall be synchronized and set correctly and shall not significantly obscure the picture.

(7) The ability to remain operational during a power outage and ensure all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

(8) All video surveillance equipment shall allow for the exporting of still images in an industry standard image format, including .jpg, .bmp, and .gif. Exported video shall have the ability to be archived in a proprietary format that ensures authentication of the video and guarantees that no alteration of the recorded image has taken place. Exported video shall also have the ability to be saved in an industry standard file format that can be played on a standard computer operating system. All recordings shall be erased or destroyed before disposal.

(9) The video surveillance system shall be operational during a power outage with a 4-hour minimum battery backup.

(10) A video camera or cameras recording at each point-of-sale location allowing for the identification of the hemp concentrate retail agent distributing the hemp concentrate derived products and any purchaser. The camera or cameras shall capture the sale, the individuals, and the computer monitors used for the sale.

(11) A failure notification system that provides an audible and visual notification of any failure in the electronic video monitoring system.

(12) All electronic video surveillance monitoring must record at least the equivalent of 8 frames per second and be available as recordings to the Department and the Illinois State Police 24 hours a day via a secure web-based portal with reverse functionality.

(i) The requirements contained in this Article shall be the minimum requirements for operating a hemp concentrate retailer. The Department may establish additional requirements by rule.

Section 15-90. Recordkeeping.

(a) Hemp concentrate retailer records must be maintained electronically for 3 years and be available for inspection by the Department upon request. Required written records include, but are not limited to, the following:

(1) Operating procedures.

(2) Inventory records, policies, and procedures.

(3) Security records.

(4) Audit records.

(5) Staff training plans and completion documentation.

(6) Staffing plan.

(7) Business records, including, but not limited to:

(A) assets and liabilities;

(B) monetary transactions;

(C) written or electronic accounts, including bank statements, journals, ledgers, and supporting documents, agreements, checks, invoices, receipts, and vouchers; and

(D) any other financial accounts reasonably related to the hemp concentrate retailer operations.

(b) If a hemp concentrate retailer closes due to insolvency, revocation, bankruptcy, or for any other reason, all records must be preserved at the expense of the hemp concentrate retailer for at least 3 years in a form and location in this State in a format and location that is acceptable to the Department. The hemp concentrate retailer shall keep the records longer if requested by the Department. The hemp concentrate retailer shall notify the Department of the location where the hemp concentrate retailer records are stored or transferred.

Section 15-95. Closure of a dispensary.

(a) If a hemp concentrate retailer decides not to renew its license or decides to close its business, the hemp concentrate retailer shall promptly notify the Department not less than 3 months before the effective date of the closing date or as otherwise authorized by the Department.

(b) The hemp concentrate retailer shall work with the Department to develop a closure plan that addresses, at a minimum, the transfer of business records, transfer of hemp concentrate derived products, and anything else the Department finds necessary.

Section 15-100. Investigations.

(a) A hemp concentrate retailer is subject to random and unannounced hemp concentrate retailer inspections and hemp concentrate derived products testing by the Department, the Illinois State Police, local law enforcement, or as provided by rule.

(b) The Department and its authorized representatives may (i) enter any place, including a vehicle, in which hemp concentrate derived product is held, stored, sold, produced, delivered, transported, manufactured, or disposed of, (ii) inspect, in a reasonable manner, the place and all pertinent equipment, containers, and labeling and other pertinent things, including records, files, financial data, sales data, shipping data, pricing data, personnel data, research, papers, processes, controls, facilities, and (iii) inventory any stock of hemp concentrate derived product and obtain samples of any hemp concentrate derived product, any labels or containers for hemp concentrate derived product, or paraphernalia.

(c) The Department may conduct an investigation of an applicant, application, hemp concentrate retailer, principal officer, hemp concentrate retail agent, third party vendor, or any other party associated with a hemp concentrate retailer for an alleged violation of this Act or rules or to determine qualifications to be granted a registration by the Department.

(d) The Department may require an applicant or holder of any license issued pursuant to this Article to produce documents, records, or any other material pertinent to the investigation of an application or alleged violations of this Act or rules. Failure to provide the required material may be grounds for denial or discipline.

(e) Each person charged with preparation, obtaining, or keeping records, logs, reports, or other documents in connection with this Act and rules and every person in charge, or having custody, of those documents shall, upon request by the Department, make the documents immediately available for inspection and copying by the Department, the Department's authorized representative, or others authorized by law to review the documents.

Section 15-105. Citations. The Department may issue nondisciplinary citations for minor violations. Any such citation issued by the Department may be accompanied by a fee. The fee may not exceed $20,000 per violation. The citation shall be issued to the licensee and shall contain the licensee's name and address, the licensee's license number, a brief factual statement, the Sections of the law allegedly violated, and the fee, if any, imposed. The citation must clearly state that the licensee may choose, in lieu of accepting the citation, to request a hearing. If the licensee does not dispute the matter in the citation with the Department within 30 days after the citation is served, then the citation shall become final and not subject to appeal. The penalty shall be a fee or other conditions as established by rule.

Section 15-110. Grounds for discipline.

(a) The Department may deny issuance, refuse to renew or restore, or may reprimand, place on probation, suspend, revoke, or take other disciplinary or nondisciplinary action against any license or hemp concentrate retailer agent identification card or may impose a fine for any of the following:

(1) Material misstatement in furnishing information to the Department.

(2) Violations of this Act or rules.

(3) Obtaining an authorization or license by fraud or misrepresentation.

(4) A pattern of conduct that demonstrates incompetence or that the applicant has engaged in conduct or actions that would constitute grounds for discipline under this Act.

(5) Aiding or assisting another person in violating any provision of this Act or rules.

(6) Failing to respond to a written request for information by the Department within 30 days.

(7) Engaging in unprofessional, dishonorable, or unethical conduct of a character likely to deceive, defraud, or harm the public.

(8) Adverse action by another state or territory of the United States or foreign nation.

(9) A finding by the Department that the licensee, after having the license placed on suspended or probationary status, has violated the terms of the suspension or probation.

(10) Conviction, entry of a plea of guilty, nolo contendere, or the equivalent in a State or federal court of a principal officer or agent-in-charge of a felony offense under Section 2105-131, 2105-135, or 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.

(11) Excessive use of or addiction to alcohol, narcotics, stimulants, or any other chemical agent or drug.

(12) A finding by the Department of a discrepancy in a Department audit of hemp concentrate derived product.

(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 hemp concentrate derived product from a source other than an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, or hemp distributor.

(15) An inability to operate using reasonable judgment, skill, or safety due to physical or mental illness or other impairment or disability, including, without limitation, deterioration through the aging process or loss of motor skills or mental incompetence,

(16) Failing to report to the Department within the time frames established, or if not identified, 14 days, of any adverse action taken against the hemp concentrate retailer or an agent by a licensing jurisdiction in any state or any territory of the United States or any foreign jurisdiction, any governmental agency, any law enforcement agency, or any court.

(17) Any violation of the hemp concentrate retailer's policies and procedures submitted to the Department annually as a condition for licensure.

(18) Failure to inform the Department of any change of address within 10 business days.

(19) Disclosing customer names, personal information, or protected health information in violation of any State or federal law.

(20) Operating a hemp concentrate retailer before obtaining a license from the Department.

(21) Performing duties authorized by this Act prior to receiving a license to perform such duties.

(22) Selling hemp concentrate derived products when prohibited by this Act or rules.

(23) Any fact or condition that, if it had existed at the time of the original application for the license, would have warranted the denial of the license.

(24) Permitting a person without a valid hemp concentrate retailer agent identification card to perform licensed activities under this Act.

(25) Failure to assign an agent-in-charge as required by this Article.

(26) Failure to provide the training required under subsection (h) of Section 15-25 within the provided timeframe.

(27) Personnel insufficient in number or unqualified in training or experience to properly operate the hemp concentrate retailer.

(28) Any pattern of activity that causes a harmful impact on the community.

(29) Failing to prevent diversion, theft, or loss of hemp concentrate derived products.

(b) All fines and fees imposed under this Section shall be paid within 60 days after the effective date of the order imposing the fine or as otherwise specified in the order.

(c) A circuit court order establishing that an agent-in-charge or principal officer holding a hemp concentrate retailer agent identification card is subject to involuntary admission on an inpatient basis or outpatient basis, as those terms are defined in Sections 1-119 and 1-119.1 of the Mental Health and Developmental Disabilities Code, shall operate as a suspension of that card.

Section 15-115. Temporary suspension.

(a) The Department may temporarily suspend a hemp concentrate retailer license or an agent registration without a hearing if the Secretary finds that public safety or welfare requires emergency action. The Secretary shall cause the temporary suspension by issuing a suspension notice in connection with the institution of proceedings for a hearing.

(b) If the Secretary temporarily suspends a license or agent registration without a hearing, the licensee or agent is entitled to a hearing within 45 days after the suspension notice has been issued. The hearing shall be limited to the issues cited in the suspension notice, unless all parties agree otherwise.

(c) If the Department does not hold a hearing with 45 days after the date the suspension notice was issued, then the suspended license or registration shall be automatically reinstated and the suspension vacated.

(d) The suspended licensee or agent may seek a continuance of the hearing date, during which time the suspension remains in effect and the license or registration shall not be automatically reinstated.

(e) Subsequently discovered causes of action by the Department after the issuance of the suspension notice may be filed as a separate notice of violation. The Department is not precluded from filing a separate action against the suspended licensee or agent.

Section 15-120. Notice; hearing.

(a) The Department shall, before disciplining an applicant or licensee, at least 30 days before the date set for the hearing: (i) notify the accused in writing of the charges made and the time and place for the hearing on the charges; (ii) direct the applicant or licensee to file a written answer to the charges under oath within 20 days after service; and (iii) inform the applicant or licensee that failure to answer will result in a default being entered against the applicant or licensee.

(b) At the time and place fixed in the notice, the hearing officer appointed by the Department shall proceed to hear the charges, and the parties or their counsel shall be accorded ample opportunity to present any pertinent statements, testimony, evidence, and arguments. The hearing officer may continue the hearing from time to time. In case the person, after receiving the notice, fails to file an answer, the person's license may, in the discretion of the Secretary, having first received the recommendation of the hearing officer, be suspended, revoked, or placed on probationary status or be subject to whatever disciplinary action the Secretary considers proper, including a fine, without hearing, if that act or acts charged constitute sufficient grounds for that action under this Act.

(c) The written notice and any notice in the subsequent proceeding may be served by regular mail or email to the licensee's or applicant's address of record.

Section 15-125. Subpoenas; oaths. The Department may subpoena and bring before it any person, take testimony either orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed by law in judicial proceedings in civil cases in courts in this State. The Secretary or the hearing officer shall each have the power to administer oaths to witnesses at any hearings that the Department is authorized to conduct.

Section 15-130. Hearing; motion for rehearing.

(a) The hearing officer shall hear evidence in support of the formal charges and evidence produced by the licensee. At the conclusion of the hearing, the hearing officer shall present to the Secretary a written report of the hearing officer's findings of fact, conclusions of law, and recommendations.

(b) At the conclusion of the hearing, a copy of the hearing officer's report shall be served upon the applicant or licensee by the Department, either personally or as provided in this Act for the service of a notice of hearing. Within 20 calendar days after service, the applicant or licensee may present to the Department a motion in writing for rehearing, which shall specify the particular grounds for rehearing. The Department may respond to the motion for rehearing within 20 calendar days after service on the Department. If no motion for rehearing is filed, then, upon the expiration of the time specified for filing such motion or upon denial of a motion for rehearing, the Secretary may enter an order in accordance with the recommendation of the hearing officer. If the applicant or licensee orders from the reporting service and pays for a transcript of the record within the time for filing a motion for rehearing, the 20-day period within which a motion may be filed shall commence upon the delivery of the transcript to the applicant or licensee.

(c) If the Secretary disagrees in any regard with the report of the hearing officer, the Secretary may issue an order contrary to the report.

(d) Whenever the Secretary is not satisfied that substantial justice has been done, the Secretary may order a rehearing by the same or another hearing officer.

(e) At any point in any investigation or disciplinary proceeding under in this Article, both parties may agree to a negotiated consent order. The consent order shall be final upon signature of the Secretary.

Section 15-135. Review under the Administrative Review Law.

(a) All final administrative decisions of the Department are subject to judicial review under the provisions of the Administrative Review Law. As used in this subsection, "administrative decision" has the meaning given to that term in Section 3-101 of the Code of Civil Procedure.

(b) Proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides, but, if the party is not a resident of Illinois, the venue shall be in Sangamon County.

(c) The Department shall not be required to certify any record to the court, file any answer in court, or otherwise appear in any court in a judicial review proceeding unless and until the Department has received from the plaintiff payment of the costs of furnishing and certifying the record, which costs shall be determined by the Department. Failure on the part of the plaintiff to file a receipt in court shall be grounds for dismissal of the action.

Article 20.

Hemp Extract Infusers

Section 20-5. Hemp Extract Infusers application. When applying for a license, the applicant shall electronically submit the following in such form as the Department may direct:

(1) the nonrefundable application fee of $100 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) the legal name of the infuser;

(3) the proposed physical address of the infuser;

(4) the name, address, social security number, and date of birth of each principal officer and board member of the infuser. Each principal officer and board member shall be at least 21 years of age;

(5) the details of any administrative or judicial proceeding in which any of the principal officers or board members of the infuser (i) pled guilty, were convicted, fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or nonprofit organization that pled guilty, was convicted, fined, or had a registration or license suspended or revoked;

(6) proposed operating bylaws;

(7) a copy of the current local zoning ordinance and verification that the proposed infuser is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;

(8) proposed employment practices in which the applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;

(9) processing, inventory, and packaging plans;

(10) a description of the applicant's experience with operating a commercial kitchen or laboratory preparing products for human consumption;

(11) a list of any academic degrees, certifications, or relevant experience of all prospective principal officers, board members, and agents of the related business;

(12) a plan describing how the hemp extract infuser will address each of the following:

(A) Energy needs, including estimates of monthly electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation, and if it has or will adopt a sustainable energy use and energy conservation policy.

(B) Water needs, including estimated water draw, and if it has or will adopt a sustainable water use and water conservation policy.

(C) Waste management, including if it has or will adopt a waste reduction policy;

(13) a recycling plan that meets the following requirements:

(A) A commitment that any recyclable waste generated by the hemp extract infuser shall be recycled per applicable State and local laws, ordinances, and rules.

(B) A commitment to comply with local waste provisions. A hemp extract infuser commits to remain in compliance with applicable State and federal environmental requirements, including, but not limited to, storing, securing, and managing all recyclables and waste, including organic waste composed of or containing hemp extract products, in accordance with applicable State and local laws, ordinances, and rules; and

(14) any other information required by rule.

Section 20-10. Renewal of licenses.

(a) A hemp extract infuser license issued under Section 20-5 shall expire 2 years after the date issued.

(b) A license holder shall submit a renewal application as provided by the Department and pay the required renewal fee. The Department shall require an agent, employee, contracting, and subcontracting diversity report and an environmental impact report with its renewal application. No license may be renewed if it is currently under revocation or suspension for violation of this Act, the Cannabis Regulation and Tax Act, or the Industrial Hemp Act or any rules that adopted under this Act, the Cannabis Regulation and Tax Act, or the Industrial Hemp Act or if the licensee, principal officer, board member, person having a financial or voting interest of 5% or greater in the licensee, or agent is delinquent in filing any required tax returns or paying any amounts owed to the State.

(c) For a hemp extract infuser license, $100 shall be paid as a renewal fee and shall be deposited into the Cannabis Regulation Fund.

(d) If a hemp extract infuser fails to renew its license before expiration, the hemp extract infuser shall cease operations until the license is renewed.

(e) A hemp extract infuser that continues to operate without renewal of its license is subject to penalty as provided in this Article or any rules that may be adopted pursuant to this Article.

(f) The Department shall not renew a license if the applicant is delinquent in filing required tax returns or paying amounts owed to the State.

Section 20-15 Denial of application.

(a) An application for a hemp extract infuser license must be denied if any of the following conditions are met:

(1) The applicant failed to submit the materials required by this Article.

(2) The applicant would not be in compliance with local zoning rules or permit requirements.

(3) One or more of the prospective principal officers or board members causes a violation of this Act.

(4) One or more of the principal officers or board members is under 21 years of age.

(5) The person has submitted an application for a license under this Act or this Article that contains false information.

(6) If the licensee, principal officer, board member, agent, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Article 25.

Hemp Concentrate Infusers

Section 25-5. Hemp concentrate infuser application. When applying for a license, the applicant shall electronically submit the following in such form as the Department may direct:

(1) the nonrefundable application fee of $5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) the legal name of the hemp concentrate infuser;

(3) the proposed physical address of the hemp concentrate infuser;

(4) the name, address, social security number, and date of birth of each principal officer and board member of the hemp concentrate infuser. Each principal officer and board member shall be at least 21 years of age;

(5) the details of any administrative or judicial proceeding in which any of the principal officers or board members of the hemp concentrate infuser (i) pled guilty, were convicted, fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or nonprofit organization that pled guilty, was convicted, fined, or had a registration or license suspended or revoked;

(6) proposed operating bylaws that include procedures for the oversight of the hemp concentrate infuser, including the development and implementation of an intermediate hemp product monitoring system, accurate recordkeeping, staffing plan, and security plan approved by the Illinois State Police that are in accordance with the rules issued by the Department under this Act. A physical inventory of all intermediate hemp products, hemp concentrate, and hemp extract shall be performed on a weekly basis by the hemp concentrate infuser;

(7) verification from the Illinois State Police that all background checks of the prospective principal officers, board members, and agents of the hemp concentrate infuser organization have been conducted;

(8) a copy of the current local zoning ordinance and verification that the proposed hemp concentrate infuser is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;

(9) proposed employment practices, in which the applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;

(10) whether an applicant can demonstrate experience in or business practices that promote economic empowerment in disproportionately impacted areas, as that term is defined in Section 1-10 of the Cannabis Regulation and Tax Act;

(11) experience with infusing products with hemp concentrate;

(12) a description of the enclosed, locked facility where hemp concentrate will be infused, packaged, or otherwise prepared for distribution to a hemp concentrate retailer organization or other hemp concentrate infuser;

(13) processing, inventory, and packaging plans;

(14) a description of the applicant's experience with operating a commercial kitchen or laboratory preparing products for human consumption;

(15) a list of any academic degrees, certifications, or relevant experience of all prospective principal officers, board members, and agents of the related business;

(16) the identity of every person having a financial or voting interest of 5% or greater in the hemp concentrate infuser operation with respect to which license is sought, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person;

(17) a plan describing how the infuser will address each of the following:

(A) Energy needs, including estimates of monthly electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation, and if it has or will adopt a sustainable energy use and energy conservation policy.

(B) Water needs, including estimated water draw, and if it has or will adopt a sustainable water use and water conservation policy.

(C) Waste management, including if it has or will adopt a waste reduction policy;

(18) a recycling plan that meets the following requirements:

(A) A commitment that any recyclable waste generated by the hemp concentrate infuser shall be recycled per applicable State and local laws, ordinances, and rules.

(B) A commitment to comply with local waste provisions. A hemp concentrate infuser commits to remain in compliance with applicable State and federal environmental requirements, including, but not limited to, storing, securing, and managing all recyclables and waste, including organic waste composed of or containing finished hemp concentrate and hemp concentrate derived products, in accordance with applicable State and local laws, ordinances, and rules; and

(19) any other information required by rule.

Section 25-10. Issuing licenses.

(a) The Department shall, by rule, develop a system to score hemp concentrate infuser applications to administratively rank applications based on the clarity, organization, and quality of the applicant's responses to required information. Applicants shall be awarded points based on the following categories:

(1) Suitability of the proposed facility.

(2) Suitability of the employee training plan.

(3) Security and recordkeeping plan.

(4) Infusing plan.

(5) Product safety and labeling plan.

(6) Business plan.

(7) Community engagement plan.

(8) Labor and employment practices, which shall constitute no less than 2% of total available points.

(9) Environmental plan, as described in paragraphs (17) and (18) of Section 25-5.

(10) The applicant is 51% or more owned and controlled by an individual or individuals who have been an Illinois resident for the past 5 years as proved by tax records or 2 of the following:

(A) A signed lease agreement that includes the applicant's name.

(B) A property deed that includes the applicant's name.

(C) School records.

(D) A voter registration card.

(E) An Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card.

(F) A paycheck stub.

(G) A utility bill.

(H) Any other proof of residency or other information necessary to establish residence as provided by rule.

(11) The applicant is 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran, as that term is defined in Section 45-57 of the Illinois Procurement Code.

(12) A diversity plan that includes a narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity.

(13) Any other criteria the Department may set by rule for points.

(b) If the applicant is awarded a hemp concentrate infuser license, the information and plans that an applicant provided in its application shall be a mandatory condition of the license. Any variation from or failure to perform such plans may result in discipline, including the revocation or nonrenewal of a license.

(c) If the applicant is awarded a hemp concentrate infuser license, the applicant shall pay a fee of $5,000 prior to receiving the license, to be deposited into the Cannabis Regulation Fund.

Section 25-15. Denial of application. An application for a hemp concentrate infuser license shall be denied if any of the following conditions are met:

(1) The applicant failed to submit the materials required by this Article.

(2) The applicant would not be in compliance with local zoning rules or permit requirements.

(3) One or more of the prospective principal officers or board members causes a violation of Section 25-20.

(4) One or more of the principal officers or board members is under 21 years of age.

(5) The person has submitted an application for a license under this Act or this Article that contains false information.

(6) If the licensee, principal officer, board member, agent, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 25-20. Hemp concentrate infuser organization requirements; prohibitions.

(a) The operating documents of a hemp concentrate infuser shall include procedures for the oversight of the infuser, an inventory monitoring system including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A hemp concentrate infuser shall implement a security plan reviewed by the Illinois State Police that includes, but is not limited to: facility access controls; perimeter intrusion detection systems; personnel identification systems; and a 24-hour surveillance system to monitor the interior and exterior of the infuser facility and that is accessible to authorized law enforcement, the Department of Public Health, and the Department in real time.

(c) Any processing of hemp concentrate by a hemp concentrate infuser must take place in an enclosed, locked facility at the physical address provided to the Department during the licensing process. The hemp concentrate infuser location shall only be accessed by the agents working for the hemp concentrate infuser, Department staff performing inspections, Department of Public Health staff performing inspections, State and local law enforcement or other emergency personnel, contractors working on jobs unrelated to hemp concentrate, intermediate hemp products, or hemp concentrate derived products, such as installing or maintaining security devices or performing electrical wiring, hemp retailer agents as provided in this Act, participants in an incubator program, individuals in a mentoring or educational program approved by the State, local safety or health inspectors, or other individuals as provided by rule.

(d) A hemp concentrate infuser may not sell or distribute any intermediate hemp products, hemp concentrate, or hemp concentrate derived products to any person other than a hemp concentrate retailer, other hemp concentrate infuser, Qualifying Applicant or Social Equity Justice Involved Applicant under the Cannabis Regulation and Tax Act, or as otherwise authorized by rule.

(e) A hemp concentrate infuser may not either directly or indirectly discriminate in price between different hemp business establishments that are purchasing a like grade, brand, and quality of hemp concentrate derived product or intermediate hemp product. Nothing in this subsection prevents a hemp concentrate infuser from pricing hemp concentrate derived products or intermediate hemp products differently based on differences in the cost of manufacturing or processing, the quantities sold, such volume discounts, or the way the products are delivered.

(f) Any hemp concentrate or intermediate hemp product infused by an infuser and intended for distribution to a hemp concentrate retailer, other hemp concentrate infuser, or Qualifying Applicant or Social Equity Justice Involved Applicant defined by the Cannabis Regulation and Tax Act must be entered into a data collection system and packaged and labeled under Section 40-15. All hemp concentrate derived products or intermediate hemp products must be placed into a container for transport.

(g) A hemp concentrate infuser is subject to random inspections by the Department, the Department of Public Health, the Illinois State Police, local law enforcement, or as provided by rule.

(h) A hemp concentrate infuser agent shall notify local law enforcement, the Illinois State Police, and the Department within 24 hours of the discovery of any loss or theft. Notification shall be made by phone, in person, or by written or electronic communication.

(i) A hemp concentrate infuser may not be located in an area zoned for residential use.

(j) A hemp concentrate infuser or hemp concentrate infuser agent shall not transport hemp concentrate, hemp concentrate derived products or intermediate hemp products to any other hemp business establishment without a hemp distributor license except as follows:

(A) If the hemp concentrate infuser is located in a county with a population of 3,000,000 or more, the hemp business establishment receiving the hemp concentrate, hemp concentrate derived products, or intermediate hemp products is within 2,000 feet of the property line of the hemp concentrate infuser.

(B) If the hemp concentrate infuser is located in a county with a population of at least 700,000 but fewer than 3,000,000, the hemp business establishment receiving the hemp concentrate, hemp concentrate derived products or intermediate hemp products is within 2 miles of the infuser.

(C) If the hemp concentrate infuser is located in a county with a population of fewer than 700,000, the hemp business establishment receiving the hemp concentrate, hemp concentrate derived products, or intermediate hemp products is within 15 miles of the infuser.

(k) A hemp concentrate infuser may enter into a contract with a hemp distributor to transport hemp concentrate, hemp concentrate derived products, or intermediate hemp products to a hemp concentrate retailer, other hemp concentrate infuser, Qualifying Applicant or Social Equity Justice Involved Applicant defined by the Cannabis Regulation and Tax Act, or a laboratory.

(l) At no time shall a hemp concentrate infuser or a hemp concentrate infuser agent perform the extraction of hemp extract, hemp concentrate, or intermediate hemp products from industrial hemp.

Section 25-25. Hemp concentrate infuser agent identification card.

(a) The Department shall:

(1) establish, by rule, the information required in an initial application or renewal application for an agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;

(2) verify the information contained in an initial application or renewal application for a hemp concentrate infuser agent identification card submitted under this Act, and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;

(3) issue a hemp concentrate infuser agent identification card to a qualifying agent within 15 business days of approving the initial application or renewal application;

(4) enter the license number of the hemp concentrate infuser where the agent works; and

(5) allow for an electronic initial application and renewal application process, and provide a confirmation by electronic or other methods that an application has been submitted. The Department may by rule require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.

(b) A hemp concentrate infuser agent must keep the hemp concentrate infuser agent's hemp concentrate infuser agent identification card visible at all times when on the property of a hemp business establishment including the hemp business establishment for which the person is an agent for.

(c) Hemp concentrate infuser agent identification cards shall contain the following:

(1) The name of the cardholder.

(2) The date of issuance and expiration date of the identification card.

(3) A random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters that is unique to the holder.

(4) A photograph of the cardholder.

(5) The legal name of the hemp concentrate infuser employing the agent.

(d) A hemp concentrate infuser agent identification card shall be immediately returned to the hemp concentrate infuser of the agent upon termination of the agent's employment.

(e) A hemp concentrate infuser agent identification card lost by a hemp concentrate infuser agent shall be reported to the Illinois State Police and the Department immediately upon discovery of the loss.

(f) An agent applicant may begin employment at a hemp concentrate infuser while the agent applicant's hemp concentrate infuser agent identification card application is pending. Upon approval, the Department shall issue the agent's identification card to the agent. If denied, the hemp concentrate infuser and the agent applicant shall be notified and the agent applicant must cease all activity at the hemp concentrate infuser immediately.

Section 25-30. Hemp concentrate infuser organization background checks.

(a) Through the Illinois State Police, the Department shall conduct a background check of the prospective principal officers, board members, and agents of a hemp concentrate infuser applying for a license or a hemp concentrate infuser agent identification card under this Article. The Illinois State Police shall charge a fee set by rule for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each hemp concentrate infuser prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records during the application process and in a frequency thereafter as prescribed by the Department, to the extent allowed by law, filed in any relevant Illinois State Police and Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall furnish, following positive identification, all conviction information to the Department.

(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.

Section 25-35. Renewal of hemp concentrate infuser licenses and agent identification cards.

(a) A license or identification card issued under this Article shall be renewed annually. A hemp concentrate infuser shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department shall grant a renewal within 45 days of submission of a renewal application if:

(1) the hemp concentrate infuser submits a renewal application and the required nonrefundable renewal fee of $20,000, to be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or revoked the license of the hemp concentrate infuser for violating this Act or rules adopted under this Act;

(3) the hemp concentrate infuser has continued to operate in accordance with all plans submitted as part of its application and approved by the Department or any amendments thereto that have been approved by the Department;

(4) the hemp concentrate infuser has submitted an agent, employee, contracting, and subcontracting diversity report as required by the Department; and

(5) the hemp concentrate infuser has submitted an environmental impact report.

(b) If a hemp concentrate infuser fails to renew its license before expiration, the hemp concentrate infuser shall cease operations until its license is renewed.

(c) If a hemp concentrate infuser agent fails to renew the agent's hemp concentrate infuser agent identification card before its expiration, the agent shall cease to work as an agent of the hemp concentrate infuser until the agent's hemp concentrate infuser agent identification card is renewed.

(d) Any hemp concentrate infuser that continues to operate or any hemp concentrate infuser agent who continues to work as an agent after the applicable license or a hemp concentrate infuser agent identification card has expired without renewal is subject to the penalties provided under Section 25-20.

(e) The Department may not renew a license or a hemp concentrate infuser agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 25-40. Disclosure of ownership and control.

(a) Each hemp concentrate infuser applicant and licensee shall file and maintain a table of organization, ownership, and control with the Department. The table of organization, ownership, and control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee.

(b) The table of organization, ownership, and control shall identify the following information:

(1) The management structure, ownership, and control of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and the percentage ownership interest in the parent company and the hemp concentrate infuser.

(2) If the applicant or licensee is a business entity with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).

(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the table of organization, ownership, and control:

(1) The name and percentage of ownership interest of each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.

(2) To the extent known, the names and percentage of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.

(d) A hemp concentrate infuser with a parent company or companies, or partially owned or controlled by another entity, must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A hemp concentrate infuser organization shall not shield its ownership or control from the Department.

(e) A principal officer must submit a complete online application with the Department within 14 days of the hemp concentrate infuser organization being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.

(f) A principal officer may not allow the principal officer's registration to expire.

(g) A hemp concentrate infuser organization separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.

(h) A principal officer not in compliance with the requirements of this Act shall be removed from the principal officer's position with the hemp concentrate infuser or shall otherwise terminate the principal officer's affiliation. Failure to do so may subject the hemp concentrate infuser to discipline, suspension, or revocation of its license by the Department.

(i) It is the responsibility of the hemp concentrate infuser and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the hemp concentrate infuser's primary or secondary contact information. Any changes must be made to the Department in writing.

Article 30.

Hemp Processor

Section 30-5. Hemp processor application. When applying for a license, the applicant shall electronically submit the following in such form as the Department may direct:

(1) the nonrefundable application fee of $5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) the legal name of the hemp processor;

(3) the proposed physical address of the hemp processor;

(4) the name, address, social security number, and date of birth of each principal officer and board member of the hemp processor. Each principal officer and board member shall be at least 21 years of age;

(5) the details of any administrative or judicial proceeding in which any of the principal officers or board members of the hemp processor (i) pled guilty, were convicted, fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or nonprofit organization that pled guilty, was convicted, fined, or had a registration or license suspended or revoked;

(6) proposed operating bylaws that include procedures for the oversight of the hemp processor, including the development and implementation of a plant monitoring system, accurate recordkeeping, staffing plan, and security plan approved by the Illinois State Police that are in accordance with the rules issued by the Department under this Act;

(7) verification from the Illinois State Police that all background checks of the prospective principal officers, board members, and agents of the hemp processor have been conducted and those persons have not been convicted of an excluded offense;

(8) a copy of the current local zoning ordinance and verification that the proposed hemp processor is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;

(9) proposed employment practices in which the applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities and engage in fair labor practices and provide worker protections;

(10) whether an applicant can demonstrate experience in or business practices that promote economic empowerment in disproportionately impacted areas, as that term is defined in Section 1-10 of the Cannabis Regulation and Tax Act;

(11) experience with the extraction, processing, or infusing of oils similar to those derived from cannabis, hemp, or other business practices to be performed by the hemp processor;

(12) a description of the enclosed, locked facility where hemp will be processed, packaged, or otherwise prepared for distribution to a cannabis or hemp business establishment or other hemp processor;

(13) processing, inventory, and packaging plans;

(14) a description of the applicant's experience with manufacturing equipment and chemicals to be used in hemp processing;

(15) a list of any academic degrees, certifications, or relevant experience of all prospective principal officers, board members, and agents with related businesses;

(16) the identity of every person having a financial or voting interest of 5% or greater in the hemp processor operation with respect to which the license is sought, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person;

(17) a plan describing how the hemp processor will address each of the following:

(A) Energy needs, including estimates of monthly electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation and if it has or will adopt a sustainable energy use and energy conservation policy.

(B) Water needs, including estimated water draw, and if it has or will adopt a sustainable water use and water conservation policy.

(C) Waste management, including if it has or will adopt a waste reduction policy; and

(18) any other information required by rule.

Section 30-10. Inventory. A physical inventory shall be performed of all intermediate hemp products, hemp extract, or hemp concentrate on a weekly basis by the hemp processor.

Section 30-15. Issuance of licenses.

(a) The Department shall, by rule, develop a system to score hemp processor applications to administratively rank applications based on the clarity, organization, and quality of the applicant's responses to required information. Applicants shall be awarded points based on the following categories:

(1) Suitability of the proposed facility.

(2) Suitability of employee training plan.

(3) Security and recordkeeping plan.

(4) Processing plan.

(5) Product safety and labeling plan.

(6) Business plan.

(7) Community engagement plan.

(8) Environmental plan as described in paragraphs (18), (19), (20), and (21) of subsection (a) of Section 30-5.

(9) The applicant is 51% or more owned and controlled by an individual or individuals who have been an Illinois resident for the past 5 years as proved by tax records or 2 of the following:

(A) A signed lease agreement that includes the applicant's name.

(B) A property deed that includes the applicant's name;

(C) School records.

(D) A voter registration card.

(E) An Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card.

(F) A paycheck stub.

(G) A utility bill.

(H) Any other proof of residency or other information necessary to establish residence as provided by rule.

(10) The applicant is 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran as defined in Section 45-57 of the Illinois Procurement Code.

(11) A diversity plan that includes a narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity.

(12) Any other criteria the Department may set by rule for points. A person or entity awarded a license pursuant to this Section may sell its hemp processor licenses subject to the restrictions of this Act or as determined by administrative rule.

(b) The applicant shall demonstrate a desire to engage with its community by participating in one or more of, but not limited to, the following actions: (i) establishment of an incubator program designed to increase participation in the hemp industry by persons who would qualify as Social Equity Applicants as defined by the Cannabis Regulation and Tax Act; (ii) providing financial assistance to substance abuse treatment centers; (iii) educating children and teens about the potential harms of hemp concentrate derived products use; or (iv) other measures demonstrating a commitment to the applicant's community.

(c) If the applicant be awarded a hemp processor license, the information and plans that an applicant provided in its application, including any plans submitted in the application, shall be a mandatory condition of the license. Any variation from or failure to perform such plans may result in discipline, including the revocation or nonrenewal of a license.

(d) Upon the completion of the disparity and availability study pertaining to hemp processors by the Cannabis Regulation Oversight Officer pursuant to subsection (e) of Section 5-45 of the Cannabis Regulation and Tax Act, the Department may modify or change the licensing application process to reduce or eliminate barriers from and remedy evidence of discrimination identified in the disparity and availability study.

Section 30-20. Denial of application. An application for a hemp processor license must be denied if any of the following conditions are met:

(1) The applicant failed to submit the materials required by this Article.

(2) The applicant would not be in compliance with local zoning rules or permit requirements.

(3) One or more of the principal officers or board members is under 21 years of age.

(4) The person has submitted an application for a license under this Act or this Article that contains false information.

(5) If the licensee, principal officer, board member, agent, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 30-25. Hemp processor requirements; prohibitions.

(a) The operating documents of a hemp processor shall include procedures for the oversight of the hemp processor, an intermediate hemp product monitoring system, including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A hemp processor shall implement a security plan reviewed by the Illinois State Police that includes, but is not limited to, facility access controls, perimeter intrusion detection systems, personnel identification systems, and a 24-hour surveillance system to monitor the interior and exterior of the hemp processor facility and that is accessible to authorized law enforcement and the Department in real time.

(c) All processing of hemp into intermediate hemp products and hemp concentrate by a hemp processor must take place in an enclosed, locked facility at the physical address provided to the Department during the licensing process. The hemp processor location shall only be accessed by the agents working for the hemp processor, Department staff performing inspections, Department of Public Health staff performing inspections, State and local law enforcement or other emergency personnel, contractors working on jobs unrelated to hemp processing, such as installing or maintaining security devices or performing electrical wiring, transporting organization agents as provided in this Act, or participants in the incubator program, individuals in a mentoring or educational program approved by the State, or other individuals as provided by rule.

(d) A hemp processor may not sell or distribute any intermediate hemp product or hemp concentrate to any person other than an Illinois-registered adult use cannabis craft grower who meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or other hemp processors.

(e) A hemp processor may not be located in an area zoned for residential use.

(f) A hemp processor may not either directly or indirectly discriminate in price between different cannabis or hemp business establishments that are purchasing a like grade, brand, and quality of intermediate hemp products or hemp concentrate. Nothing in this subsection prevents a hemp processor from pricing intermediate hemp products or hemp concentrate differently based on differences in the cost of manufacturing or processing, the quantities sold, such as volume discounts, or the way the products are delivered.

(g) All intermediate hemp products or hemp concentrate processed by a hemp processor and intended for distribution to a hemp or cannabis business establishment must be entered into a data collection system and packaged and labeled under this Act before transport.

(h) Hemp processors are subject to random inspections by the Department, local safety or health inspectors, the Illinois State Police, or as provided by rule.

(i) A hemp processor agent shall notify local law enforcement, the Illinois State Police, and the Department within 24 hours of the discovery of any loss or theft. Notification shall be made by phone, in person, or written or electronic communication.

(j) A hemp processor or hemp processor agent shall not transport any intermediate hemp product or hemp concentrate to any other cannabis or hemp business establishment without a hemp distributor license unless:

(1) If the hemp processor is located in a county with a population of 3,000,000 or more, the cannabis or hemp business establishment receiving the intermediate hemp products or hemp concentrate is within 2,000 feet of the property line of the hemp processor;

(2) If the hemp processor is located in a county with a population of more than 700,000 but fewer than 3,000,000, the cannabis or hemp business establishment receiving the intermediate hemp products or hemp concentrate is within 2 miles of the hemp processor; or

(3) If the hemp processor is located in a county with a population of fewer than 700,000, the cannabis or hemp business establishment receiving the intermediate hemp products or hemp concentrate is within 15 miles of the hemp processor.

(k) A hemp processor may enter into a contract with a hemp distributor or an adult use cannabis transporter organization that meets the requirements of a Social Equity Applicant to transport intermediate hemp product or hemp concentrate to a cannabis or hemp business establishment allowed to process or infuse intermediate hemp product or hemp concentrate under this Act.

(l) A person or entity may not hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 3 hemp processor licenses. Further, a person or entity that is employed by, an agent of, or has a contract to receive payment from or participate in the management of a hemp processor, is a principal officer of a hemp processor, or entity controlled by or affiliated with a principal officer of a hemp processor may not hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a hemp processor license that would result in the person or entity owning or controlling in combination with any hemp processor, principal officer of a hemp processor, or entity controlled or affiliated with a principal officer of a hemp processor by which he, she, or it is employed, is an agent of, or participates in the management of more than 3 hemp processor licenses.

(m) A hemp processor shall not be located within 1,500 feet of another hemp processor.

(n) A hemp processor may process industrial hemp, as defined by the Industrial Hemp Act, intermediate hemp product, hemp concentrate, or full spectrum concentrate and broad spectrum extract that is to be used in either hemp extract derived products or hemp concentrate derived products.

(o) A hemp processor shall comply with any other requirements or prohibitions set by administrative rule of the Department.

Section 30-30. Hemp processor agent identification card.

(a) The Department shall:

(1) establish, by rule, the information required in an initial application or renewal application for a hemp processor agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;

(2) verify the information contained in an initial application or renewal application for a hemp processor agent identification card submitted under this Act and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;

(3) issue an hemp processor agent identification card to a qualifying agent within 15 business days of approving the initial application or renewal application;

(4) enter the license number of the hemp processor where the agent works; and

(5) allow for an electronic initial application and renewal application process, and provide a confirmation by electronic or other methods that an application has been submitted. The Department may, by rule, require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.

(b) A hemp processor agent must keep the hemp processor agent's hemp processor agent identification card visible at all times when on the property of a cannabis or hemp business establishment, including the hemp processor for which the person is an agent for.

(c) The hemp processor agent identification cards shall contain the following:

(1) The name of the cardholder.

(2) The date of issuance and expiration date of the identification card.

(3) A random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters that is unique to the holder.

(4) A photograph of the cardholder.

(5) The legal name of the hemp processor employing the agent.

(d) A hemp processor agent identification card shall be immediately returned to the hemp business establishment of the agent upon termination of the agent's employment.

(e) A hemp processor agent identification card lost by a hemp processor agent shall be reported to the Illinois State Police and the Department immediately upon discovery of the loss.

Section 30-35. Hemp processor background checks.

(a) Through the Illinois State Police, the Department shall conduct a background check of the prospective principal officers, board members, and agents of a hemp processor applying for a license or hemp processor agent identification card under this Article. The Illinois State Police shall charge a fee set by rule for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each hemp concentrate infuser prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records during the application process and in a frequency thereafter as prescribed by the Department, to the extent allowed by law, filed in any relevant Illinois State Police and Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall furnish, following positive identification, all conviction information to the Department.

(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.

Section 30-40. Renewal of hemp processor licenses and agent identification cards.

(a) A license or hemp processor agent identification card issued under this Article shall be renewed annually. A hemp processor shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department shall grant a renewal within 45 days of submission of a renewal application if:

(1) The hemp processor submits a renewal application and the required nonrefundable renewal fee of $40,000, or another amount as the Department may set by rule after January 1, 2025.

(2) The Department has not suspended the license of the hemp processor or suspended or revoked the license of the hemp processor for violating this Act or rules adopted under this Act.

(3) The hemp processor has continued to operate in accordance with all plans submitted as part of its application and approved by the Department or any amendments thereto that have been approved by the Department.

(4) The hemp processor has submitted an agent, employee, contracting, and subcontracting diversity report as required by the Department.

(5) The hemp processor has submitted an environmental impact report.

(b) If a hemp processor fails to renew its license before expiration, the hemp processor shall cease operations until its license is renewed.

(c) If a hemp processor agent fails to renew the agent's hemp processor agent identification card before its expiration, the agent shall cease to work as an agent of the hemp processor until his or her identification card is renewed.

(d) Any hemp processor that continues to operate or any hemp processor agent who continues to work as an agent after the applicable license or a hemp processor agent identification card has expired without renewal is subject to the penalties provided under this Act.

(e) All fees or fines collected from the renewal of a hemp processor license shall be deposited into the Cannabis Regulation Fund.

Section 30-45. Hemp processor taxes; returns.

(a) A tax is imposed upon the privilege of processing hemp into intermediate hemp products at the rate of 7% of the gross receipts from the sale of intermediate hemp products, hemp concentrate, or hemp extract by a hemp processor to a qualified cannabis or hemp business establishment. The sale of any hemp cannabinoid product that contains any amount of hemp cannabinoids or any derivative thereof is subject to the tax under this Section on the full selling price of the product. The proceeds from this tax shall be deposited into the Cannabis Regulation Fund. This tax shall be paid by the hemp processor who makes the first sale and is not the responsibility of a craft grower who meets the requirements of a Social Equity Applicant, an infuser that meets the requirements of Social Equity Applicant, a transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, a hemp extract infuser, or another hemp processor.

(b) In the administration of and compliance with this Section, the Department of Revenue and persons who are subject to this Section: (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in the Intermediate Hemp Product Processing Tax Law and the Uniform Penalty and Interest Act as if those provisions were set forth in this Section.

(c) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

Section 30-50. Disclosure of ownership and control.

(a) Each hemp processor applicant and licensee shall file and maintain a table of organization, ownership, and control with the Department. The table of organization, ownership, and control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee.

(b) The table of organization, ownership, and control shall identify the following information:

(1) The management structure, ownership, and control of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and the percentage ownership interest in the parent company and the hemp processor.

(2) If the applicant or licensee is a business entity with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).

(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the table of organization, ownership, and control:

(1) The name and percentage of ownership interest of each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.

(2) To the extent known, the names and percentage of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.

(d) A hemp processor with a parent company or companies, or partially owned or controlled by another entity, must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A hemp processor shall not shield its ownership or control from the Department.

(e) A principal officer must submit a complete online application with the Department within 14 days of the hemp processor being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.

(f) A principal officer may not allow the principal officer's registration to expire.

(g) A hemp processor separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.

(h) A principal officer not in compliance with the requirements of this Act shall be removed from the principal officer's position with the hemp processor or shall otherwise terminate the principal officer's affiliation. Failure to do so may subject the hemp processor to discipline, suspension, or revocation of its license by the Department.

(i) It is the responsibility of the hemp processor and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the hemp processor's primary or secondary contact information. Any changes must be made to the Department in writing.

Article 35.

Hemp Distributor

Section 35-5. Hemp distributor application. When applying for a hemp distributor license, the applicant shall electronically submit the following in such form as the Department may direct:

(1) the nonrefundable application fee of $5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;

(2) the legal name of the hemp distributor license;

(3) the proposed physical address of the hemp distributor, if one is proposed;

(4) the name, address, social security number, and date of birth of each principal officer and board member of the hemp distributor. Each principal officer and board member shall be at least 21 years of age;

(5) the details of any administrative or judicial proceeding in which any of the principal officers or board members of the hemp distributor (i) pled guilty, were convicted, fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or nonprofit organization that pled guilty, was convicted, fined, or had a registration or license suspended or revoked;

(6) proposed operating bylaws that include procedures for the oversight of the hemp distributor, including the development and implementation of an accurate recordkeeping plan, staffing plan, and security plan approved by the Illinois State Police that are in accordance with the rules issued by the Department under this Act;

(7) verification from the Illinois State Police that all background checks of the prospective principal officers, board members, and agents of the hemp distributor have been conducted;

(8) a copy of the current local zoning ordinance or permit and verification that the proposed hemp distributor is in compliance with the local zoning rules and distance limitations established by the local jurisdiction, if the hemp distributor has a business address;

(9) proposed employment practices, in which the applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;

(10) whether an applicant can demonstrate experience in or business practices that promote economic empowerment in disproportionately impacted areas, as that term is defined in Section 1-10 of the Cannabis Regulation and Tax Act;

(11) the number and type of equipment the hemp distributor will use to transport hemp extract derived products and hemp concentrate derived products;

(12) loading, transporting, and unloading plans;

(13) a description of the applicant's experience in the distribution or security business;

(14) the identity of every person having a financial or voting interest of 5% or more in the hemp distributor organization with respect to which the license is sought, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person; and

(15) any other information required by rule.

Section 35-10. Issuing licenses.

(a) The Department shall, by rule, develop a system to score distributor applications to administratively rank applications based on the clarity, organization, and quality of the applicant's responses to required information. Applicants shall be awarded points based on the following categories:

(1) suitability of employee training plan;

(2) security and recordkeeping plan;

(3) business plan;

(4) labor and employment practices, which shall constitute no less than 2% of total available points;

(5) environmental plan that demonstrates an environmental plan of action to minimize the carbon footprint, environmental impact, and resource needs for the distributor, which may include, without limitation, recycling hemp cannabinoid product packaging;

(6) the applicant is 51% or more owned and controlled by an individual or individuals who have been an Illinois resident for the past 5 years as proved by tax records or 2 of the following:

(A) A signed lease agreement that includes the applicant's name.

(B) A property deed that includes the applicant's name.

(C) School records.

(D) A voter registration card.

(E) An Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card.

(F) A paycheck stub.

(G) A utility bill.

(H) Any other proof of residency or other information necessary to establish residence as provided by rule;

(7) the applicant is 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran, as that term is defined in Section 45-57 of the Illinois Procurement Code;

(8) a diversity plan that includes a narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity; and

(9) any other criteria the Department may set by rule for points.

(b) Applicants for hemp distributor licenses that score at least 75% of the available points according to the system developed by rule and meet all other requirements for a hemp distributor license shall be issued a license by the Department within 60 days of receiving the application.

(c) If the applicant is awarded a hemp distributor license, the information and plans that an applicant provided in its application shall be a mandatory condition of the permit. Any variation from or failure to perform such plans may result in discipline, including the revocation or nonrenewal of a license.

(d) If the applicant is awarded a hemp distributor license, the applicant shall pay a prorated fee of $10,000 prior to receiving the license to be deposited into the Cannabis Regulation Fund.

Section 35-15. Denial of application. An application for a hemp distributor license shall be denied if any of the following conditions are met:

(1) The applicant failed to submit the materials required by this Article.

(2) The applicant would not be in compliance with local zoning rules or permit requirements.

(3) One or more of the prospective principal officers or board members causes a violation of this Article.

(4) One or more of the principal officers or board members is under 21 years of age.

(5) The person has submitted an application for a license under this Act that contains false information.

(6) The licensee, principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 35-20. Hemp distributor requirements; prohibitions.

(a) The operating documents of a hemp distributor shall include procedures for the oversight of the hemp distributor, an inventory monitoring system, including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.

(b) A hemp distributor may not distribute intermediate hemp products, hemp concentrate, or hemp concentrate derived products to any person other than an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, an adult use cannabis transporter that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, hemp processor, a testing facility, or as otherwise authorized by rule.

(c) A hemp cannabinoid product distributed by a hemp distributor must be entered into a data collection system and placed into a hemp container for distribution.

(d) Hemp distributors are subject to random inspections by the Department, the Department of Public Health, the Illinois State Police, or as provided by rule.

(e) A hemp distributor agent shall notify local law enforcement, the Illinois State Police, and the Department within 24 hours of the discovery of any loss or theft. Notification shall be made by phone, in person, or by written or electronic communication.

(f) No person under the age of 21 years shall be in a commercial vehicle or trailer distribution of hemp cannabinoid goods.

(g) No person or individual who is not a hemp distributor agent shall be in a vehicle while distributing hemp cannabinoid goods.

(h) Hemp distributors may not use commercial motor vehicles with a weight rating of over 10,001 pounds.

(i) It is unlawful for any person to offer or deliver money, or anything else of value, directly or indirectly, to any of the following persons to obtain preferential placement within the hemp concentrate retailer's or Qualifying Applicant's or a Social Equity Justice Involved Applicant's, as defined by the Cannabis Regulation and Tax Act, dispensary shelves, including, without limitation, on shelves and in display cases where purchasers can view products, or on the website of the hemp concentrate retailer or on the website of the Qualifying Applicant or on the website of the Social Equity Justice Involved Applicant dispensary under the Cannabis Regulation and Tax Act:

(1) a person having a hemp distributor license, or any officer, associate, member, representative, or agent of the licensee;

(2) a person having an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant hemp concentrate infuser, hemp extract infuser, or hemp processor license;

(3) a person connected with or in any way representing, or a member of the family of, a person holding an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, hemp concentrate infuser, hemp extract infuser, or hemp processor license; or

(4) a stockholder, officer, manager, agent, or representative of a corporation engaged in an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an adult use cannabis infuser that meets the requirements of a Social Equity Applicant, hemp concentrate infuser, hemp extract infuser, or hemp processor license.

(j) A hemp distributor agent must keep the agent's identification card visible at all times when on the property of a cannabis or hemp business establishment and during the distribution of hemp cannabinoid products when acting under the agent's duties as a hemp distributor agent. During these times, the hemp distributor agent must also provide the identification card upon request of any law enforcement officer engaged in the agent's official duties.

(k) A copy of the hemp distributor's registration and a manifest for the delivery shall be present in any vehicle distributing hemp cannabinoid products.

(l) Any hemp cannabinoid product shall be transported so it is not visible or recognizable from outside the vehicle.

(m) A vehicle distributing hemp cannabinoid products must not bear any markings to indicate the vehicle contains hemp cannabinoid products or bear the name or logo of the hemp business establishment.

(n) Hemp cannabinoid products must be transported in an enclosed, locked storage compartment that is secured or affixed to the vehicle.

(o) The Department may, by rule, impose any other requirements or prohibitions on the transportation of hemp cannabinoid products.

Section 35-25. Hemp distributor agent identification card.

(a) The Department shall:

(1) establish, by rule, the information required in an initial application or renewal application for a hemp distributor agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;

(2) verify the information contained in an initial application or renewal application for a hemp distributor agent identification card submitted under this Act and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;

(3) issue a hemp distributor agent identification card to a qualifying agent within 15 business days of approving the initial application or renewal application;

(4) enter the license number of the transporting organization where the agent works; and

(5) allow for an electronic initial application and renewal application process and provide a confirmation by electronic or other methods that an application has been submitted. The Department may, by rule, require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.

(b) An agent must keep the agent's hemp distributor agent identification card visible at all times when on the property of a cannabis or hemp business establishment, including the hemp business establishment for which the person is an agent.

(c) Hemp distributor agent identification cards shall contain the following:

(1) The name of the cardholder.

(2) The date of issuance and expiration date of the identification card.

(3) A random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters that is unique to the holder.

(4) A photograph of the cardholder.

(5) The legal name of the hemp distributor employing the agent.

(d) A hemp distributor agent identification card shall be immediately returned to the hemp distributor of the agent upon termination of the agent's employment.

(e) A hemp distributor agent identification card lost by a hemp distributor agent shall be reported to the Illinois State Police and the Department immediately upon discovery of the loss.

(f) An application for a hemp distributor agent identification card shall be denied if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

(g) An agent applicant may begin employment at a hemp distributor while the agent applicant's hemp distributor agent identification card application is pending. Upon approval, the Department shall issue the agent's hemp distributor agent identification card to the agent. If denied, the hemp distributor and the agent applicant shall be notified and the agent applicant must cease all activity at the transporting organization immediately.

Section 35-30. Hemp distributor organization background checks.

(a) Through the Illinois State Police, the Department shall conduct a background check of the prospective principal officers, board members, and agents of a hemp distributor applying for a license or a hemp distributor agent identification card under this Article. The Illinois State Police shall charge a fee set by rule for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each hemp distributor's prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records during the application process and in a frequency thereafter as prescribed by the Department, to the extent allowed by law, filed in any relevant Illinois State Police and Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall furnish, following positive identification, all conviction information to the Department.

(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the Department.

Section 35-35. Renewal of hemp distributor licenses and agent identification cards.

(a) Any license or hemp distributor agent identification card issued under this Article shall be renewed annually. A hemp distributor shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department shall grant a renewal within 45 days of submission of a renewal application if:

(1) the hemp distributor submits a renewal application and the required nonrefundable renewal fee of $10,000, or after January 1, 2025, another amount set by rule by the Department, to be deposited into the Cannabis Regulation Fund;

(2) the Department has not suspended or revoked the license of the hemp distributor for violating this Act or rules adopted under this Act;

(3) the hemp distributor has continued to operate in accordance with all plans submitted as part of its application and approved by the Department or any amendments thereto that have been approved by the Department; and

(4) the hemp distributor has submitted an agent, employee, contracting, and subcontracting diversity report as required by the Department.

(b) If a hemp distributor fails to renew its license before expiration, the hemp distributor shall cease operations until its license is renewed.

(c) If a hemp distributor agent fails to renew the agent's hemp distributor agent identification card before the card's expiration, the agent shall cease to work as an agent of the hemp distributor until the agent's hemp distributor agent identification card is renewed.

(d) Any hemp distributor that continues to operate, or any hemp distributor agent who continues to work as an agent, after the applicable license or identification card has expired without renewal is subject to the penalties provided under this Act.

(e) The Department shall not renew a license or a hemp distributor agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.

Section 35-40. Disclosure of ownership and control.

(a) Each hemp distributor applicant and licensee shall file and maintain a table of organization, ownership, and control with the Department. The table of organization, ownership, and control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee.

(b) The table of organization, ownership, and control shall identify the following information:

(1) The management structure, ownership, and control of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and the agent's percentage ownership interest in the parent company and the hemp distributor.

(2) If the applicant or licensee is a business entity with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).

(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the table of organization, ownership, and control:

(1) The name and percentage of ownership interest of each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.

(2) To the extent known, the names and percentage of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.

(d) A hemp distributor with a parent company or companies, or partially owned or controlled by another entity, must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A hemp distributor shall not shield its ownership or control from the Department.

(e) All principal officers must submit a completed online application with the Department within 14 days of the hemp distributor being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.

(f) A principal officer may not allow the principal officer's registration to expire.

(g) A hemp distributor separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.

(h) A principal officer not in compliance with the requirements of this Act shall be removed from the principal officer's position with the hemp distributor or shall otherwise terminate the principal officer's affiliation. Failure to do so may subject the transporting organization to discipline, suspension, or revocation of its license by the Department.

(i) It is the responsibility of the hemp distributor and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the transporting organization's primary or secondary contact information. Any changes must be made to the Department in writing.

Article 40.

Hemp Derived Products

Section 40-5. Hemp extract derived products.

(a) Any hemp cannabinoid products manufactured, processed, distributed, sold, or offered for sale in this State shall:

(1) be manufactured in accordance with this Act;

(2) be subject to the following minimum requirements:

(A) contain naturally occurring hemp phytocannabinoids;

(B) be intended for consumption by any means, including, but not limited to, oral ingestion, inhalation, smoking, or topical absorption;

(C) contain a total tetrahydrocannabinol concentration of no greater than:

(i) 0.3% for any intermediate or finished plant product or material or any hemp cannabinoid product intended for consumption by inhalation or smoking; or

(ii) 0.5 milligrams per serving or individual product unit, and 2 milligrams per package for products sold in multiple servings or units, for any beverage, food, oil, ointment, tincture, topical formation or any other product that is intended for human consumption by means other than inhalation or smoking;

(D) contain an amount of total hemp cannabinoid concentration that is at least 25 times greater than the amount of total tetrahydrocannabinol concentration per serving and per package;

(3) not contain liquor, wine, beer, or cider or meet the definition of alcoholic liquor under the Liquor Control Act of 1934;

(4) not contain tobacco or nicotine in the product;

(5) accurately reflect testing results and not contain less than 90% or more than 110% of the concentration of total cannabinoid content as listed on the product label;

(6) be prepackaged and not added to food or any other consumable products at the point of sale;

(7) comply with product testing standards set forth in this Act; and

(8) not contain hemp concentrate, artificially derived cannabinoids, or cannabinoids created through isomerization, including tetrahydrocannabinol created through isomerization.

(b) Any hemp extract derived product intended for inhalation or vaporization shall meet the following additional requirements:

(1) The product shall be a closed system with a pre-filled disposable cartridge that attaches to a rechargeable battery or a single-use product that cannot be recharged.

(2) Electronic vaporization devices shall have internal or external temperature controls to prevent combustion and have a heating element made of inert material, such as glass, ceramic, or stainless steel, and not plastic or rubber.

(3) Except for hemp-derived terpenes, excipients and ingredients must be pharmaceutical grade, unless otherwise approved by the Department, and shall not include:

(A) synthetic terpenes;

(B) polyethylene glycol (PEG);

(C) vitamin E acetate;

(D) medium chain triglycerides (MCT oil);

(E) medicinal compounds;

(F) illegal or controlled substances;

(G) artificial food coloring;

(H) benzoic acid;

(I) diketones; or

(J) any other compound or ingredient as determined by the Department in rules.

(4) The product may not contain any flavors or flavoring agents, except for hemp-derived terpenes.

(5) The packaging shall include a Department-approved symbol, as set out by rule, in a manner that is clear and conspicuous.

Section 40-10. Hemp concentrate derived products.

(a) Hemp concentrate derived products manufactured, processed, distributed, sold, or offered for sale in this State shall:

(1) be manufactured in accordance with this Act;

(2) be subject to the following minimum requirements:

(A) contain only cannabinoids derived from hemp;

(B) be intended for consumption by any means, including, but not limited to, oral ingestion, inhalation, smoking, or topical absorption;

(C) contain a total tetrahydrocannabinol concentration of no greater than:

(i) 0.3% for any intermediate or finished plant product or material or any hemp cannabinoid product intended for consumption by inhalation or smoking; or

(ii) 5 milligrams per serving or individual product unit, and 50 milligrams per package for products sold in multiple servings or units, for any beverage, food, oil, ointment, tincture, topical formation or any other product that is intended for human consumption by means other than inhalation or smoking;

(3) not contain liquor, wine, beer, or cider or meet the definition of alcoholic liquor under the Liquor Control Act of 1934;

(4) not contain tobacco or nicotine in the product;

(5) accurately reflect testing results and not contain less than 90% or more than 110% of the concentration of total cannabinoid content as listed on the product label;

(6) be prepackaged and not added to food or any other consumable products at the point of sale; and

(7) comply with product testing standards set forth in this Act.

(b) If the product is a hemp concentrate derived product intended for inhalation or vaporization, then the product shall meet the following additional requirements:

(1) The product shall be a closed system with a pre-filled disposable cartridge that attaches to a rechargeable battery or a single-use product that cannot be recharged.

(2) Electronic vaporization devices shall have internal or external temperature controls to prevent combustion and have a heating element made of inert material, such as glass, ceramic, or stainless steel, and not plastic or rubber.

(3) Except for hemp cannabinoids, hemp extract, and hemp concentrate, excipients and ingredients must be pharmaceutical grade, unless otherwise approved by the Department, and may not include;

(A) polyethylene glycol (PEG);

(B) vitamin E acetate;

(C) medium chain triglycerides (MCT oil);

(D) medicinal compounds;

(E) illegal or controlled substances;

(F) artificial food coloring

(G) benzoic acid;

(H) diketones; or

(I) any other compound or ingredient as determined by the Department in rules.

(4) The product may not contain any flavors or flavoring agents, except for hemp-derived terpenes.

(5) The packaging shall include a Department-approved symbol, as set out by rule, in a manner that is clear and conspicuous.

Section 40-15. Packaging and labeling of hemp extract derived products.

(a) A hemp extract derived product distributed or offered for retail sale in this State shall include the following information on the product label or packaging:

(1) information that complies with the requirements in 21 CFR 101 and include a nutritional or supplement fact panel that is based on the number of servings within the container;

(2) a list of all ingredients in descending order of predominance by weight in the product;

(3) The serving size and number of servings per package or container, including the milligrams per serving of:

(A) individual hemp cannabinoids;

(B) total hemp cannabinoids;

(C) individual THC cannabinoids;

(D) total THC;

(E) any other cannabinoids;

(F) an expiration date;

(G) a lot or batch number;

(H) the name of the hemp processor, craft grower, or cultivation center that is allowed to process hemp in accordance with this Act, whether in-state or out-of-state;

(I) a scannable QR code linked to download the certificate of analysis and testing results for the product;

(J) the state or country of origin from which the hemp used in the product was sourced;

(K) a means for reporting serious adverse events; and

(L) any other marking, statement, or symbol required by the Department.

(b) No hemp extract derived product offered for retail sale shall be made attractive to individuals under 21 years of age, imitate a candy label, or use cartoons or other images popularly used to advertise to children or otherwise be marketed to individuals under 21 years of age.

(c) No hemp extract derived product shall be marketed, advertised, or offered for sale in a manner that would cause a reasonable consumer:

(1) to be confused as to whether the hemp extract derived product is trademarked, marked, or labeled in a manner that violates any federal trademark law or regulation; or

(2) to believe that a hemp extract derived product is cannabis, medical cannabis, or that a licensee is authorized to sell or dispense cannabis or medical cannabis, as those terms are defined in the Cannabis Regulation and Tax Act or the Compassionate Use of Medical Cannabis Program Act.

(d) Hemp extract derived product offered for retail sale shall include the following warnings on the product label or packaging in a manner that is clear and conspicuous:

(1) this product must be kept out of the reach of children and pets;

(2) this product is derived from hemp and may contain THC which could result in a failed drug test; except that this warning may be omitted for a hemp extract derived product that has a certificate of testing analysis demonstrating 0% THC concentration in the finished product;

(3) this product has not been evaluated or approved by the Food and Drug Administration for safety or efficacy;

(4) if you are pregnant or nursing you should consult your health care provider before use;

(5) for a hemp extract derived product intended to be inhaled or vaporized, a warning stating that smoking or vaping is hazardous to your health; and

(6) any other warning required by the Department.

Section 40-20. Laboratory testing requirements for hemp cannabinoid products.

(a) The Department shall approve testing laboratories to be contracted by licensees under this Act for testing of hemp cannabinoid products.

(b) All approved testing laboratories shall meet the following minimum requirements:

(1) maintain ISO/IEC 17025 accreditation for the premises and for the testing of one or more of the analytes determined by the Department;

(2) maintain a valid scope of accreditation, issued by an accreditation body, that attests to the laboratory's competence to perform testing of hemp cannabinoid products;

(3) maintain method validation reports for all testing performed;

(4) maintain standard operating procedures for the sampling of hemp cannabinoid products; and

(5) maintain testing methodologies to ascertain the presence of intermediate hemp products, hemp extract, hemp concentrate, or cannabinoids created through isomerization, including tetrahydrocannabinol created through isomerization.

(c) Hemp cannabinoid products shall not be sold within this State if hemp cannabinoid, THC, or other contaminants are detected at levels greater than provided for by this Act or rules or guidance adopted by the Department.

(d) The Department may impose additional testing requirements, including, but not limited to, testing for additional analytes, setting stricter contaminant limits, and mandating the use of specific sampling methodologies per lot or batch manufactured.

(e) The Department shall make available a list of required analytes, their acceptable limits, and approved testing methods on the Department's website and in any other manner as determined by the Department.

(f) The total tetrahydrocannabinol concentration for hemp cannabinoid products shall not exceed the limits established in this Act.

(g) If a hemp cannabinoid product fails testing, the hemp processor may elect to reformulate the failing batch to reduce the total tetrahydrocannabinol of the batch to comply with the THC limits established by this Act. If the reformulated batch still exceeds the THC limits, the hemp processor shall destroy the batch.

(h) If a hemp cannabinoid product is found to contain levels of any pathogen, toxicant, residual solvent, metal, or pesticide not enumerated in this Section or by other State law, then the product shall not be sold in this State.

Section 40-25. Advertising requirements. An advertisement for a hemp cannabinoid product, hemp extract retailer, hemp concentrate retailer, hemp extract infuser, hemp concentrate infuser, or hemp processor may not:

(1) include any false or misleading statements, images, or other content, including, but not limited to, any health claims;

(2) contain claims that hemp consumption or a hemp cannabinoid product can or is intended to diagnose, cure, mitigate, treat, or prevent disease;

(3) lead a reasonable consumer to believe that a hemp cannabinoid product is cannabis or medical cannabis, including any product that exceeds the THC limits established under this Act for lawful hemp cannabinoid products, or that a licensee is authorized to sell or dispense cannabis or medical cannabis; or

(4) have the purpose or effect of targeting or being attractive to individuals under 21 years of age. The use of images of children or minors consuming hemp cannabinoid products and the use of words, designs, or brands that resemble products commonly associated with children, minors, or marketed to children or minors, is prohibited.

Section 40-30. Lawful transport of industrial hemp, hemp, and hemp materials.

(a) Nothing in this Act shall prohibit or interfere with the lawful transport of industrial hemp, hemp materials, or hemp products as authorized by the U.S. Department of Agriculture and the U.S. Food and Drug Administration and, in compliance with other federal law, regulation, or rule, through the State of Illinois for delivery to an out-of-state destination.

(b) No person shall transport industrial hemp, hemp, or hemp materials within the State unless the person is duly authorized under federal law and regulation to transport hemp and possesses a hemp manifest that includes the following information:

(1) the name and address of the owner of the hemp;

(2) the point of origin;

(3) the point of delivery, including name and address;

(4) the kind and quantity of packages or, if in bulk, the total quantity of hemp in the shipment; and

(5) the date of shipment.

Section 40-35. Penalties.

(a) Licensees under this Act shall comply with all applicable laws, rules, and regulations as it relates to such licensure.

(b) Failure to comply with a requirement of this Act or rules adopted by the Department may be punishable by a civil penalty, as follows:

(1) a fine of up to $1,000 for a first violation;

(2) a fine up to $5,000 for a second violation within 3 years; or

(3) a fine of up to $10,000 for a third violation and each subsequent violation thereafter within a 3-year period.

(c) If a licensee willfully violates or refuses or neglects to comply with one or more provisions of this Act, the Department may limit, suspend, revoke, or annul a license after providing notice and an opportunity for a hearing to the licensee. However, a license may be temporarily limited, suspended, revoked, or annulled without a hearing for a period not to exceed 30 days, upon notice to the licensee, following a finding by the Department that the public health, safety, or welfare is in imminent danger.

(d) A licensee who negligently violates this Act 3 times in a 5-year period shall be ineligible to process or sell hemp cannabinoid for a period of 5 years beginning on the date of the third violation. The Department may reduce the suspension for good cause shown.

Section 40-40. Administration and enforcement; rules; emergency rules; inspections.

(a) The Department shall administer and enforce this Act and may adopt rules under the Illinois Administrative Procedure Act for the purpose of administering and enforcing this Act.

(b) The Department shall develop rules setting forth labeling, packaging, and minimum testing requirements of hemp cannabinoid products.

(c) In order to provide for the expeditious and timely implementation of the provisions of this Act, the Department may adopt emergency rules in accordance with Section 5-45 of the Illinois Administrative Procedure Act to the extent necessary to administer the Department's responsibilities under this Act. The adoption of emergency rules authorized by this subsection (c) is deemed to be necessary for the public interest, safety, and welfare to regulate consumer safety over hemp cannabinoid products.

(d) The Department of Public Health, local health departments, the Illinois State Police, local sheriff's offices, municipal police departments, and the Department of Revenue may inspect a business that manufactures, processes, or offers for sale hemp cannabinoid products in the State if a formal complaint is registered with the appropriate agency in order to ensure compliance with this Act. The Department may inspect any business that manufactures, processes, or offers for sale hemp a cannabinoid product in the State to ensure compliance with this Act. The Department may enter into interagency agreements to regulate and enforce this Act and any rules or guidance adopted or promulgated.

Section 40-45. Publishing information. The Department shall make available to the public complaints about hemp cannabinoid products in violation of this Act, information regarding pending administrative hearings or court cases under this Act, or information regarding disciplinary actions taken against a hemp extract retailer, hemp concentrate retailer, hemp extract infuser, hemp concentrate infuser, or hemp processor.

Section 40-50. Temporary restraining order or injunction. The Director, through the Attorney General or any unit of local government, may file a complaint and apply to the circuit court for, and the court upon hearing and for cause shown may grant, a temporary restraining order or a preliminary or permanent injunction restraining any person from violating this Act.

Section 40-55. Preparation of hemp concentrate derived products.

(a) The Department may regulate the production of hemp concentrate derived products by an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, a dispensary that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser, or a hemp concentrate retailer and establish rules related to refrigeration, hot-holding, and handling of hemp concentrate derived products. Hemp concentrate derived products shall meet the packaging and labeling requirements contained in Section 40-65.

(b) Hemp concentrate derived products for sale or distribution at an Illinois-registered hemp retailer that meets the requirements of a Social Equity Applicant or a hemp concentrate retailer must be prepared by an approved agent of an Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, or a hemp concentrate infuser.

(c) An Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, a hemp concentrate infuser that prepares hemp concentrate derived products for sale or distribution by an Illinois-registered hemp retailer that meets the requirements of a Social Equity Applicant, or a hemp concentrate retailer shall be under the operational supervision of a Department of Public Health certified food service sanitation manager.

(d) An Illinois-registered hemp retailer that meets the requirements of a Social Equity Applicant or a hemp concentrate retailer may not manufacture, process, or produce hemp concentrate derived products.

(e) The Department of Public Health shall adopt and enforce rules for the manufacture and processing of hemp concentrate derived products, and, for that purpose, it may at all times enter every building, room, basement, enclosure, or premises occupied or used, or suspected of being occupied or used, for the production, preparation, manufacture for sale, storage, sale, processing, distribution, or transportation of hemp concentrate derived products and inspect the premises together with all utensils, fixtures, furniture, and machinery used for the preparation of these products.

(f) The Department shall, by rule, establish a maximum level of THC that may be contained in each serving of a hemp concentrate derived product and within the product package.

(g) If a local public health agency has a reasonable belief that a hemp concentrate derived product poses a public health hazard, it may refer the Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, or a hemp concentrate infuser that manufactured or processed the hemp concentrate derived product to the Department of Public Health. If the Department of Public Health finds that a hemp concentrate derived product poses a health hazard, it may bring an action for immediate injunctive relief to require that action be taken as the court deems necessary to meet the hazard of the cultivation facility or seek other relief as provided by rule.

Section 40-60. Destruction of hemp concentrate derived product, hemp concentrate, and intermediate hemp products.

(a) Any hemp concentrate derived product, hemp concentrate, and intermediate hemp product and scrap not intended for distribution must be destroyed and disposed of under rules adopted by the Department of Agriculture under this Act. Documentation of destruction and disposal shall be retained at the Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, infuser organization that meets the requirements of a Social Equity Applicant, hemp concentrate infuser, or testing facility as applicable for a period of not less than 5 years.

(b) An Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, or a hemp concentrate infuser shall, before destruction, notify the Department and the Illinois State Police. An Illinois-registered hemp retailer that meets the requirements of a Social Equity Applicant or a hemp concentrate retailer shall, before destruction, notify the Department of Financial and Professional Regulation and the Illinois State Police. The Department may, by rule, require that an employee of the Department or the Department of Financial and Professional Regulation be present during the destruction of any hemp concentrate derived product, hemp concentrate or intermediate hemp product, scrap, and harvested cannabis, as applicable.

(c) An Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, infuser organization that meets the requirements of a Social Equity Applicant, Illinois-registered hemp retailer that meets the requirements of a Social Equity Applicant, hemp concentrate infuser, or hemp concentrate retailer shall keep a record of the date of destruction and how much was destroyed.

(d) An Illinois-registered hemp retailer that meets the requirement of a Social Equity Applicant or a hemp concentrate retailer shall destroy all hemp concentrate derived products not sold to purchasers. Documentation of destruction and disposal shall be retained at the Illinois-registered hemp retailer that meets the requirement of a Social Equity Applicant or a hemp concentrate retailer for a period of not less than 5 years.

Section 40-65. Hemp concentrate derived product packaging and labeling.

(a) Each hemp concentrate derived product produced for sale shall be registered with the Department on forms provided by the Department. Each product registration shall include a label and the required registration fee at the rate established by the Department for a comparable medical cannabis or cannabis product, or as established by rule. The registration fee is for the name of the product offered for sale and one fee shall be sufficient for all package sizes.

(b) All hemp concentrate or intermediate hemp product intended for distribution to a cannabis or hemp business establishment must be packaged in a sealed, labeled container.

(c) A product containing hemp concentrate shall be sold in a sealed, odor-proof, and child-resistant hemp concentrate derived product container consistent with current standards, including the Consumer Product Safety Commission standards referenced by the Poison Prevention Act unless the sale is between cannabis or hemp business establishments.

(d) Hemp concentrate derived product shall be individually wrapped or packaged at the original point of preparation. The packaging of the hemp concentrate derived product shall conform to the labeling requirements of the Illinois Food, Drug and Cosmetic Act in addition to the other requirements set forth in this Section.

(e) Hemp concentrate derived product shall be labeled before sale and each label shall be securely affixed to the package and shall state the following in legible English and any other language required by the Department:

(1) The name and address where the item was manufactured by the Illinois-registered adult use craft grower that meets the requirements of a Social Equity Applicant, infuser organization that meets the requirements of a Social Equity Applicant, or hemp concentrate infuser.

(2) The common or usual name of the item and the registered name of the hemp concentrate derived product that was registered with the Department under subsection (a).

(3) A unique serial number that shall match the product with a craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, or a hemp concentrate infuser and a batch and lot number to facilitate any warnings or recalls by the Department, a craft grower that meets the requirements of a Social Equity Applicant, an infuser organization that meets the requirements of a Social Equity Applicant, or a hemp concentrate infuser.

(4) The date of final testing and packaging, if sampled, and the identification of the independent testing laboratory.

(5) The date the hemp was harvested and "use by" date.

(6) The quantity, in ounces or grams, of hemps concentrate or intermediate hemp product contained in the product;

(7) A pass or fail rating based on the laboratory's microbiological, mycotoxins, and pesticide and solvent residue analyses, if sampled.

(8) A list of the following, including the minimum and maximum percentage content by weight for the following:

(A) delta-9-tetrahydrocannabinol;

(B) delta-8- tetrahydrocannabinol;

(C) tetrahydrocannabinolic acid;

(D) cannabidiol (CBD);

(E) cannabidiolic acid (CBDA);

(F) all other ingredients of the item, including any colors, artificial flavors, and preservatives, listed in descending order by predominance of weight shown with common or usual names.

The acceptable tolerances for the minimum percentage printed on the label for any of subparagraphs (A) through (D) of paragraph (8) may not be below 85% or above 115% of the labeled amount.

(f) Packaging may not contain information that:

(1) is false or misleading;

(2) promotes excessive consumption;

(3) depicts a person under 21 years of age consuming cannabis or hemp concentrate derived products;

(4) includes the image of a cannabis leaf or hemp leaf;

(5) includes any image designed or likely to appeal to minors, including cartoons, toys, animals, or children, or any other likeness to images, characters, or phrases that are popularly used to advertise to children, or any packaging or labeling that bears reasonable resemblance to any product available for consumption as a commercially available candy or that promotes consumption of cannabis or hemp concentrate derived products; and

(6) contains any seal, flag, crest, coat of arms, or other insignia likely to mislead the purchaser to believe that the product has been endorsed, made, or used by the State or any of its representatives, except when authorized by this Act.

(g) Hemp concentrate derived products produced by concentrating or extracting ingredients from the industrial hemp plant shall contain the following information, when applicable:

(1) if solvents were used to create the concentrate or extract, a statement that discloses the type of extraction method, including any solvents or gases used to create the concentrate or extract; and

(2) any other chemicals or compounds used to produce or that were added to the concentrate or extract.

(h) All hemp concentrate derived products must contain warning statements established for purchasers of a size that is legible and readily visible to a consumer inspecting a package. The warning statements may not be covered or obscured in any way. The Department of Public Health shall define and update appropriate health warnings for packages including specific labeling or warning requirements for specific hemp concentrate derived products.

(i) Unless modified by rule to strengthen or respond to new evidence and science, the following warnings shall apply to all hemp concentrate derived products: "This product contains hemp concentrate or intermediate hemp product and is intended for use by adults 21 and over. Its use can impair cognition and may be habit forming. This product should not be used by pregnant or breastfeeding women. It is unlawful to sell or give this item to any individual. It is illegal to operate a motor vehicle while under the influence of hemp concentrate or intermediate hemp product. Possession or use of this product may carry significant legal penalties in some jurisdictions.".

(j) Warnings for each of the following product types must be present on labels when offered for sale to a purchaser:

(1) Hemp concentrate derived products that may be smoked must contain a statement that "Smoking is hazardous to your health.".

(2) Hemp concentrate derived products, other than those intended for topical application, must contain a statement "CAUTION: This product contains hemp concentrate or intermediate hemp product, and intoxication following use may be delayed 2 or more hours. This product was produced in a facility that may also process common food allergens.".

(3) Hemp concentrate derived products intended for topical application must contain a statement "DO NOT EAT" in bold, capital letters.

(k) Each hemp concentrate derived products intended for consumption must be individually packaged, must include the total milligram content of THC and CBD, and may not (i) include more than a total of 100 milligrams of THC per package if packaged by an Illinois-registered adult use craft grower that meets the requirement of a Social Equity Applicant or an infuser that meets the requirement of a Social Equity Applicant and (ii) contain more than 50 milligrams of THC per package if packaged by a hemp infuser. A package may contain multiple servings of (A) 10 milligrams of THC if packaged by an Illinois-registered adult use craft grower that meets the requirement of a Social Equity Applicant or an infuser that meets the requirement of a Social Equity Applicant or (B) 5 milligrams of THC if packaged by a hemp concentrate infuser, each indicated by scoring, wrapping, or by other indicators designating individual serving sizes. The Department may change the total amount of THC allowed for each package, or the total amount of THC allowed for each serving size, by rule.

(l) An individual other than the purchaser may not alter or destroy labeling affixed to the primary packaging of hemp concentrate derived products.

(m) For each commercial weighing and measuring device used at a facility, the cannabis or hemp business establishment must:

(1) ensure that the commercial device is licensed under the Weights and Measures Act and the associated administrative rules;

(2) maintain documentation of the licensure of the commercial device; and

(3) provide a copy of the license of the commercial device to the Department for review upon request.

(n) It is the responsibility of the Department to ensure that packaging and labeling requirements, including product warnings, are enforced at all times for products provided to purchasers. Product registration requirements and container requirements may be modified by rule by the Department.

(o) Any labeling under this Section, including warning labels and the specific wording of the labels, may be modified by rule by the Department.

Section 40-70. Local ordinances. Unless otherwise provided under this Act or otherwise in accordance with State law:

(1) A municipality or county, including a county within the unincorporated territory of the county, may enact reasonable zoning ordinances or resolutions, not in conflict with this Act or rules adopted pursuant to this Act, regulating hemp business establishments. The municipality or county may not prohibit home cultivation of hemp or unreasonably prohibit use of hemp authorized by this Act.

(2) The municipality or county may enact ordinances not in conflict with this Act or with rules adopted pursuant to this Act governing the time, place, manner, and number of hemp business establishment operations, including minimum distance limitations between hemp business establishments and locations it deems sensitive, including colleges and universities, through the use of conditional use permits. The municipality or county may establish civil penalties for violation of an ordinance governing the time, place, and manner of operation of a hemp business establishment or a conditional use permit in the jurisdiction of the municipality or county. The municipality or county may not unreasonably restrict the time, place, manner, and number of hemp business establishment operations authorized by this Act.

(3) The municipality or county may authorize or permit the on-premises consumption of hemp concentrate derived products at or in a hemp retailer that meets the requirements of a Social Equity Applicant, hemp concentrate retailer, or retail tobacco store, as defined under Section 10 of the Smoke Free Illinois Act, within its jurisdiction in a manner consistent with this Act. A hemp retailer that meets the requirements of a Social Equity Applicant, hemp concentrate retailer, or retail tobacco store authorized or permitted by the municipality or county to allow on-site consumption shall not be deemed a public place within the meaning of the Smoke Free Illinois Act.

(4) A home rule unit may not regulate the activities described in paragraph (1), (2), or (3) in a manner more restrictive than the regulation of those activities by the State under this Act. Paragraphs (1), (2), and (3) are a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

(5) The municipality or county may enact ordinances to prohibit or significantly limit a hemp business establishment's location.

Section 40-75. Confidentiality.

(a) Information provided by the hemp business establishment licensees or applicants to the Department, the Department of Public Health, the Department of Financial and Professional Regulation, or other agency shall be limited to information necessary for the purposes of administering this Act. The information provided is subject to the provisions and limitations contained in the Freedom of Information Act and may be disclosed in accordance with this Act.

(b) The following information received and records kept by the Department, the Department of Public Health, the Illinois State Police, and the Department of Financial and Professional Regulation for purposes of administering this Article are subject to all applicable federal privacy laws, are confidential and exempt from disclosure under the Freedom of Information Act, except as provided in this Act, and not subject to disclosure to any individual or public or private entity, except to the Department of Financial and Professional Regulation, the Department, the Department of Public Health, and the Illinois State Police as necessary to perform official duties under this Article and to the Attorney General as necessary to enforce the provisions of this Act. The following information received and kept by the Department of Financial and Professional Regulation or the Department may be disclosed to the Department of Public Health, the Department, the Department of Revenue, the Illinois State Police, or the Attorney General upon request:

(1) Applications and renewals, their contents, and supporting information submitted by or on behalf of a hemp business establishment, in compliance with this Article, including their physical addresses; however, this does not preclude the release of ownership information about hemp business establishment licenses, or information submitted with an application required to be disclosed pursuant to subsection (f).

(2) Any plans, procedures, policies, or other records relating to hemp business establishment security.

(3) Information otherwise exempt from disclosure by State or federal law, including State or national criminal history record information or the nonexistence or lack of such information, may not be disclosed by the Department of Financial and Professional Regulation or the Department, except as necessary to the Attorney General to enforce this Act.

(c) The name and address of a hemp concentrate retailer licensed under this Act shall be subject to disclosure under the Freedom of Information Act. The name and hemp business establishment address of the person or entity holding each cannabis business establishment license shall be subject to disclosure.

(d) All information collected by the Department of Financial and Professional Regulation or the Department in the course of an examination, inspection, or investigation of a licensee or applicant, including, but not limited to, a complaint against a licensee or applicant filed with the Department of Financial and Professional Regulation or the Department and information collected to investigate the complaint, shall be maintained for the confidential use of the Department of Financial and Professional Regulation or the Department and may not be disclosed, except as otherwise provided in this Act. A formal complaint against a licensee by the Department of Financial and Professional Regulation or the Department or any disciplinary order issued by the Department of Financial and Professional Regulation or the Department against a licensee or applicant shall be a public record, except as otherwise provided by law. Complaints from consumers or members of the general public received regarding a specific, named licensee or complaints regarding conduct by unlicensed entities shall be subject to disclosure under the Freedom of Information Act.

(e) The Department, the Illinois State Police, and the Department of Financial and Professional Regulation may not share or disclose any State or national criminal history record information, or the nonexistence or lack of such information, to any person or entity not expressly authorized by this Act.

(f) The Department and the Department of Financial and Professional Regulation shall publish on each Department website a list of the ownership information of cannabis business establishment licensees under each Department's jurisdiction. The list shall include, but is not limited to: the name of the person or entity holding each hemp business establishment license; and the address at which the entity is operating under this Act. This list shall be published and updated monthly.

Section 40-80. Suspension or revocation of a license.

(a) The Department of Financial and Professional Regulation or the Department may suspend or revoke a license for a violation of this Act or a rule adopted in accordance with this Act by the Department and the Department of Financial and Professional Regulation.

(b) The Department and the Department of Financial and Professional Regulation may suspend or revoke an agent identification card for a violation of this Act or a rule adopted in accordance with this Act.

Section 40-85. Contracts enforceable. It is the public policy of this State that contracts related to the operation of a lawful hemp business establishment under this Act are enforceable. It is the public policy of this State that no contract entered into by a lawful hemp business establishment or its agents on behalf of a hemp business establishment, or by those who allow property to be used by a hemp business establishment, shall be unenforceable on the basis that cultivating, obtaining, manufacturing, processing, distributing, dispensing, transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law.

Section 40-90. Annual reports.

(a) The Department of Financial and Professional Regulation shall submit to the General Assembly and Governor a report, by September 30 of each year, that does not disclose any information identifying information about hemp business establishments but does contain, at a minimum, all of the following information for the previous fiscal year:

(1) The number of licenses issued to hemp concentrate retailers by county, or, in counties with greater than 3,000,000 residents, by zip code.

(2) The total number of hemp concentrate retailers that are minority persons, women, or persons with disabilities, as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(3) The total amount of revenues received from hemp concentrate retailers or hemp retailers that meet the requirements of a Social Equity Applicant, segregated from revenues received from hemp retailers under the Cannabis Regulation and Tax Act or Compassionate Use of Medical Cannabis Program Act by county, separated by source of revenue.

(4) An analysis of revenue generated from taxation, licensing, and other fees for the State, including recommendations to change the tax rate applied.

(b) The Department shall submit to the General Assembly and Governor a report, by September 30 of each year, that does not disclose any information identifying information about hemp business establishment but does contain, at a minimum, all of the following information for the previous fiscal year:

(1) The number of licenses issued to hemp processors, hemp concentrate infusers, and hemp distributors by license type, and, in counties with more than 3,000,000 residents, by zip code.

(2) The total number of hemp processors, hemp concentrate infusers, and hemp distributors by license type minority persons, women, or persons with disabilities, as those terms are defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(3) The total amount of revenue received from hemp processors, hemp concentrate infusers, and hemp distributors separated by license types and source of revenue.

(4) The total amount of revenue received from craft growers and infusers that share a premises or majority ownership with a hemp retailer.

(5) The total amount of revenue received from Illinois-registered adult use craft growers that meet the requirements of a Social Equity Applicant and infusers that meet the requirements of a Social Equity Applicant, segregated from revenues received from hemp retailers under the Cannabis Regulation and Tax Act or Compassionate Use of Medical Cannabis Program Act by county, separated by source of revenue.

(6) An analysis of revenue generated from taxation, licensing, and other fees for the State, including recommendations to change the tax rate applied.

(c) The Illinois State Police shall submit to the General Assembly and Governor a report, by September 30 of each year that contains, at a minimum, all of the following information for the previous fiscal year:

(1) The effect of regulation and taxation of hemp concentrate derived products on law enforcement resources.

(2) The impact of regulation and taxation of hemp concentrate derived products on highway and waterway safety and rates of impaired driving or operating when impairment was determined based on failure of a field sobriety test.

(3) The available and emerging methods for detecting the metabolites for delta-9-tetrahydrocannabinol or delta-8-tetrahydrocannabinol in bodily fluids, including, without limitation, blood and saliva.

(4) The effectiveness of current laws regarding driving while intoxicated and recommendations for improvements to policy to better ensure safe highways and fair laws.

(d) The Adult Use Cannabis Health Advisory Committee shall submit to the General Assembly and Governor a report, by September 30 of each year, that does not disclose any identifying information about any individuals but does contain, at a minimum:

(1) Self-reported youth hemp concentrate derived product use, as published in the most recent Illinois Youth Survey available.

(2) Self-reported adult hemp concentrate derived product use, as published in the most recent Behavioral Risk Factor Surveillance Survey available.

(3) Hospital room admissions and hospital utilization rates caused by hemp concentrate derived product consumption, including the presence or detection of other drugs.

(4) Overdoses of hemp concentrate derived product and poison control data, including the presence of other drugs that may have contributed.

(5) Incidents of impaired driving caused by the consumption of hemp concentrate derived products, including the presence of other drugs or alcohol that may have contributed to the impaired driving.

(6) Prevalence of infants born testing positive for delta-9-tetrahydrocannabinol or delta-9-tetrahydrocannabinol, including demographic and racial information on which infants are tested.

(7) Public perceptions of use and risk of harm.

(8) Revenue collected from hemp concentrate derived products taxation and how that revenue was used.

(9) Cannabis and hemp concentrate retail licenses granted and locations.

(10) Hemp concentrate derived product-related arrests.

(11) The number of individuals completing required bud tender training.

(e) Each agency or committee submitting reports under this Section may consult with one another in the preparation of each report.

Section 40-95. Potency level. Nothing in this Act shall prohibit hemp concentrate or intermediate hemp product that is sold, offered for sale, or otherwise transferred from a cannabis or hemp business establishment to another cannabis or hemp business establishment from having a potency level above the potency requirements set forth in this Act.

Section 40-100. Home rule. Except as otherwise allowed in this Act, the regulation and licensing of the activities described in this Act are exclusive powers and functions of the State. Except as otherwise allowed in this Act, a unit of local government, including a home rule unit, may not regulate or license the activities described in this Act. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

Section 40-105. Conflict of interest. A person is ineligible to apply for, hold, or own financial or voting interest, other than a passive interest in a publicly traded company, in a cannabis or hemp business license under this Act if, within a 2-year period after the effective date of this Act, the person or the person's spouse or immediate family member was a member of the General Assembly or a State employee at an agency that regulates cannabis or hemp business establishment license holders who participated personally and substantially in the award of licenses under this Act. A person who violates this Section shall be guilty under subsection (b) of Section 50-5 of the State Officials and Employees Ethics Act.

Article 45.

Personal Use of Hemp Cannabinoid Products

Section 45-5. Possession limit.

(a) For a person who is 21 years of age or older and a resident of this State, the possession limit is as follows:

(1) 30 grams of hemp concentrate derived product in the form of flower; or

(2) no more than 500 milligrams of THC contained in a hemp concentrate derived products, 500 milligrams of THC contained in cannabis-infused products, or 500 milligrams of THC contained in both hemp concentrate derived products and cannabis-infused products.

(b) For a person who is 21 years of age or older and who is not a resident of this State, the possession limit is as follows:

(1) 15 grams of hemp concentrate derived product in the form of flower; or

(2) no more than 250 milligrams of THC contained in a hemp concentrate derived products, 250 milligrams of THC contained in cannabis-infused products, or 250 milligrams of THC contained in both hemp concentrate derived products and cannabis-infused products.

A person may not possess hemp concentrate or intermediate hemp products without being a licensed hemp business establishment.

(c) The possession limits under subsections (a) and (b) are cumulative. The possession limits under subsections (a) and (b) and the possession limits found in subsection (a) and (b) of Section 10-10 in the Cannabis Regulation and Tax Act are cumulative.

(d) A person shall not knowingly obtain, seek to obtain, or possess an amount of cannabis or hemp concentrate derived products or both from a hemp retailer, craft grower, or a hemp concentrate retailer that would cause the person to exceed the possession limit under this Section or the possession limits under the Cannabis Regulation and Tax Act or the Compassionate Use of Medical Cannabis Act.

Section 45-10. Age limit.

(a) Nothing in this Act permits the transfer of hemp concentrate product, with or without remuneration, to a person under 21 years of age or allows a person under 21 years of age to purchase, possess, use, process, transport, or consume hemp concentrate derived product.

(b) A person under 21 years of age with hemp concentrate derived products in the person's possession is liable under subsection (a) of Section 4 of the Cannabis Control Act.

(c) If the person under the age of 21 was in a motor vehicle at the time of the offense, the Secretary of State may suspend or revoke the driving privileges of any person for a violation of this Section under Section 6-206 of the Illinois Vehicle Code and the rules adopted under it.

(d) It is unlawful for any parent or guardian to knowingly permit the parent's or guardian's residence, any other private property under the parent's or guardian's control, or any vehicle, conveyance, or watercraft under the parent's or guardian's control, to be used by an invitee under the age of 21 who is an invitee of the parent's child or the guardian's ward in a manner that constitutes a violation of this Section. A parent or guardian is deemed to have knowingly permitted the parent's or guardian's residence, any other private property under the parent's or guardian's control, or any vehicle, conveyance, or watercraft under the parent's or guardian's control to be used in violation of this Section if the parent or guardian knowingly authorizes or permits consumption of hemp concentrate derived product by underage invitees. Any person who violates this subsection is guilty of a Class A misdemeanor and the person's sentence shall include, but shall not be limited to, a fine of not less than $500. If a violation of this subsection directly or indirectly results in great bodily harm or death to any person, the person violating this subsection is guilty of a Class 4 felony. In this subsection, where the residence or other property has an owner and a tenant or lessee, the trier of fact may infer that the residence or other property is occupied only by the tenant or lessee.

Section 45-15. Identification; false identification; penalty.

(a) To protect personal privacy, the Department may not require a purchaser to provide a hemp concentrate retailer or hemp retailer that meets the qualifications of a Social Equity Applicant with personal information other than government-issued identification to determine the purchaser's age, and a hemp concentrate retailer or hemp retailer that meets the qualifications of a Social Equity Applicant may not obtain and record personal information about a purchaser without the purchaser's consent. A hemp concentrate retailer or hemp retailer that meets the qualifications of a Social Equity Applicant shall use an electronic reader or electronic scanning device to scan a purchaser's government-issued identification, if applicable, to determine the purchaser's age and the validity of the identification. Any identifying or personal information of a purchaser obtained or received in accordance with this Section shall not be retained, used, shared or disclosed for any purpose except as authorized by this Act.

(b) A person who is under 21 years of age may not present or offer to a hemp business establishment or the hemp business establishment's principal or employee any written or oral evidence of age that is false, fraudulent, or not actually the person's own, for the purpose of:

(1) purchasing, attempting to purchase, or otherwise obtaining or attempting to obtain hemp concentrate derived products; or

(2) gaining access to a hemp business establishment.

(c) A violation of this Section is a Class A misdemeanor consistent with Section 6-20 of the Liquor Control Act of 1934.

(d) The Secretary of State may suspend or revoke the driving privileges of any person for a violation of this Section under Section 6-206 of the Illinois Vehicle Code and the rules adopted under it.

(e) An agent or employee of the licensee may not be disciplined or discharged for selling or furnishing hemp concentrate derived products to a person under 21 years of age if the agent or employee demanded and was shown, before furnishing hemp concentrate derived products to a person under 21 years of age, adequate written evidence of age and identity of the person. This subsection does not apply if the agent or employee accepted the written evidence knowing it to be false or fraudulent. Adequate written evidence of age and identity of the person is a document issued by a federal, State, county, or municipal government, or subdivision or agency thereof, including, but not limited to, a motor vehicle operator's license, a registration certificate issued under the Military Selective Service Act, or an identification card issued to a member of the Armed Forces. Proof that the licensee or his or her employee or agent was shown and reasonably relied upon such written evidence in any transaction forbidden by this Section is an affirmative defense in any criminal prosecution therefor or to any proceedings for the suspension or revocation of any license based thereon.

Section 45-20. Immunities and presumptions related to the use of hemp concentrate derived products by purchasers.

(a) A purchaser who is 21 years of age or older is not subject to arrest, prosecution, denial of any right or privilege, or other punishment, including, but not limited to, a civil penalty or disciplinary action taken by an occupational or professional licensing board, based solely on the use of hemp concentrate derived products if (i) the purchaser possesses an amount of hemp concentrate derived products or cannabis that does not exceed the possession limit under Section 45-5 and if the purchaser is licensed, certified, or registered to practice any trade or profession under any Act and (ii) the use of hemp concentrate derived products does not impair that person when he or she is engaged in the practice of the profession for which he or she is licensed, certified, or registered.

(b) A purchaser 21 years of age or older is not subject to arrest, prosecution, denial of any right or privilege, or other punishment, including, but not limited to, a civil penalty or disciplinary action taken by an occupational or professional licensing board, based solely for (i) selling hemp cannabinoid paraphernalia if employed and licensed as a hemp concentrate retail agent or dispensing agent by a hemp concentrate retailer or hemp retailer that meets the qualifications of a Social Equity Applicant, (ii) being in the presence or vicinity of the use of hemp concentrate derived product or hemp concentrate derived product paraphernalia as allowed under this Act, or (iii) possessing hemp concentrate derived product paraphernalia.

(c) Mere possession of, or application for, an agent identification card or license does not constitute probable cause or reasonable suspicion to believe that a crime has been committed, nor shall it be used as the sole basis to support the search of the person, property, or home of the person possessing or applying for the agent identification card. The possession of, or application for, an agent identification card does not preclude the existence of probable cause if probable cause exists based on other grounds.

(d) A person employed by the State is not subject to criminal or civil penalties for taking any action in good faith in reliance on this Act when acting within the scope of the person's employment. Representation and indemnification shall be provided to State employees as set forth in Section 2 of the State Employee Indemnification Act.

(e) A law enforcement or correctional agency, or a person employed by a law enforcement or correctional agency, is not subject to criminal or civil liability, except for willful and wanton misconduct, as a result of taking any action within the scope of the official duties of the agency or person to prohibit or prevent the possession or use of hemp concentrate derived product by a person incarcerated at a correctional facility, jail, or municipal lockup facility, on parole or mandatory supervised release, or otherwise under the lawful jurisdiction of the agency or person.

(f) For purposes of receiving medical care, including organ transplants, a person's use of hemp concentrate product under this Act does not constitute the use of an illicit substance or otherwise disqualify a person from medical care.

Section 45-25. Discrimination prohibited.

(a) The presence of cannabinoid components or metabolites in a person's bodily fluids, possession of hemp concentrate derived product-related paraphernalia, or conduct related to the use of hemp concentrate derived product or the participation in hemp concentrate derived product-related activities lawful under this Act by a custodial or noncustodial parent, grandparent, legal guardian, foster parent, or other person charged with the well-being of a child may not form the sole or primary basis or supporting basis for any action or proceeding by a child welfare agency or in a family or juvenile court, an adverse finding, adverse evidence, or a restriction of any right or privilege in a proceeding related to adoption of a child, acting as a foster parent of a child, or a person's fitness to adopt a child or act as a foster parent of a child, or serve as the basis of any adverse finding, adverse evidence, or restriction of any right of privilege in a proceeding related to guardianship, conservatorship, trusteeship, the execution of a will, or the management of an estate unless the person's actions in relation to hemp concentrate derived product created an unreasonable danger to the safety of the minor or otherwise show the person to not be competent as established by clear and convincing evidence. This subsection applies only to conduct protected under this Act.

(b) A landlord may not be penalized or denied any benefit under State law for leasing to a person who uses hemp concentrate derived product under this Act.

(c) Nothing in this Act may be construed to require a person or establishment in lawful possession of property to allow a guest, client, lessee, customer, or visitor to use hemp concentrate derived product on or in that property, including on any land owned in whole or in part or managed in whole or in part by the State.

Section 45-30. Limitations and penalties.

(a) This Act does not permit any person to engage in, and does not prevent the imposition of any civil, criminal, or other penalties for engaging in, any of the following conduct:

(1) Undertaking any task under the influence of hemp concentrate derived product when doing so would constitute negligence, professional malpractice, or professional misconduct.

(2) Possessing hemp concentrate derived product:

(A) in a school bus;

(B) on the grounds of any preschool or primary or secondary school;

(C) in any correctional facility;

(D) in a vehicle not open to the public unless the hemp concentrate derived product is in a reasonably secured, sealed, or resealable container and reasonably inaccessible while the vehicle is moving; or

(E) in a private residence that is used at any time to provide licensed child care or other similar social service care on the premises.

(3) Using hemp concentrate derived product:

(A) in a school bus;

(B) on the grounds of any preschool or primary or secondary school;

(C) in any correctional facility;

(D) in any motor vehicle;

(E) in a private residence that is used at any time to provide licensed child care or other similar social service care on the premises;

(F) in any public place; or

(G) knowingly in close physical proximity to anyone under 21 years of age.

(4) Smoking hemp concentrate derived products in any place where smoking is prohibited under the Smoke Free Illinois Act.

(5) Operating, navigating, or being in actual physical control of any motor vehicle, aircraft, watercraft, or snowmobile while using or under the influence of cannabis in violation of Section 11-501 or 11-502.1 of the Illinois Vehicle Code, Section 5-16 of the Boat Registration and Safety Act, or Section 5-7 of the Snowmobile Registration and Safety Act.

(6) Facilitating the use of hemp concentrate derived products by any person who is not allowed to use hemp concentrate derived products under this Act.

(7) Transferring hemp concentrate derived products to any person contrary to this Act.

(8) The use of hemp concentrate derived products by a law enforcement officer, corrections officer, probation officer, or firefighter while on duty. Nothing in this Act prevents a public employer of law enforcement officers, corrections officers, probation officers, paramedics, or firefighters from prohibiting or taking disciplinary action for the consumption, possession, sales, purchase, or delivery of hemp concentrate derived product substances while on-duty or off-duty unless provided for in the employer's policies. However, an employer may not take adverse employment action against an employee based solely on the lawful possession or consumption of hemp concentrate derived products substances by members of the employee's household.

(9) The use of hemp concentrate derived product by a person who has a school bus permit or a Commercial Driver's License while on duty.

As used in this subsection, "public place" means a place where a person could reasonably be expected to be observed by others. "Public place" includes all parts of buildings owned or leased, in whole or in part, by the State or a unit of local government and all areas in a park, recreation area, wildlife area, or playground owned, leased, or managed, in whole or in part, by the State or a unit of local government. "Public place" does not include a private residence unless the private residence is used to provide licensed child care, foster care, or other similar social service care on the premises.

(b) Nothing in this Act shall be construed to prevent the arrest or prosecution of a person for reckless driving or driving under the influence of hemp concentrate derived product, operating a watercraft under the influence of hemp concentrate derived product, or operating a snowmobile under the influence of hemp concentrate derived product if probable cause exists.

(c) Nothing in this Act prevents a private business from restricting or prohibiting the use of hemp concentrate derived product on its property, including areas where motor vehicles are parked.

(d) Nothing in this Act requires an individual or business entity to violate the provisions of federal law, including colleges or universities that must abide by the Drug-Free Schools and Communities Act Amendments of 1989, that require campuses to be drug free.

(e) To the extent that this Section conflicts with any applicable collective bargaining agreement, the provisions of the collective bargaining agreement prevails. Nothing in this Act shall be construed to limit in any way the right to collectively bargain over the subject matters contained in this Act.

Section 45-35. Employment; employer liability.

(a) Nothing in this Act prohibits an employer from adopting reasonable zero-tolerance or drug-free workplace policies or employment policies concerning drug testing, smoking, consumption, storage, or use of hemp concentrate derived products in the workplace or while on call if the policy is applied in a nondiscriminatory manner.

(b) Nothing in this Act requires an employer to permit an employee to be under the influence of or use hemp concentrate derived product in the employer's workplace or while performing the employee's job duties or while on call.

(c) Nothing in this Act limits or prevents an employer from disciplining an employee or terminating employment of an employee for violating an employer's employment policies or workplace drug policy.

(d) An employer may consider an employee to be impaired or under the influence of hemp concentrate derived product if the employer has a good faith belief that an employee manifests specific, articulable symptoms while working that decrease or lessen the employee's performance of the duties or tasks of the employee's job position, including symptoms of the employee's speech, physical dexterity, agility, coordination, demeanor, irrational or unusual behavior, or negligence or carelessness in operating equipment or machinery; disregard for the safety of the employee or others; involvement in any accident that results in serious damage to equipment or property; disruption of a production or manufacturing process; or carelessness that results in any injury to the employee or others. If an employer elects to discipline an employee on the basis that the employee is under the influence or impaired by hemp concentrate derived products, the employer must afford the employee a reasonable opportunity to contest the basis of the determination.

(e) Nothing in this Act shall be construed to create or imply a cause of action for any person against an employer for:

(1) actions taken pursuant to an employer's reasonable workplace drug policy, including, but not limited to, subjecting an employee or applicant to reasonable drug and alcohol testing, reasonable and nondiscriminatory random drug testing, and discipline, termination of employment, or withdrawal of a job offer due to a failure of a drug test;

(2) actions based on the employer's good faith belief that an employee used or possessed hemp concentrate derived products while in the employer's workplace, while performing the employee's job duties, or while on call in violation of the employer's employment policies;

(3) actions, including discipline or termination of employment, based on the employer's good faith belief that an employee was impaired as a result of the use of hemp concentrate derived products or under the influence of hemp concentrate derived products while at the employer's workplace or while performing the employee's job duties or while on call in violation of the employer's workplace drug policy; or

(4) injury, loss, or liability to a third party if the employer neither knew nor had reason to know that the employee was impaired.

(f) Nothing in this Act shall be construed to enhance or diminish protections afforded by any other law, including, but not limited to, the Compassionate Use of Medical Cannabis Program Act or the Opioid Alternative Pilot Program.

(g) Nothing in this Act shall be construed to interfere with any federal, State, or local restrictions on employment, including, but not limited to, the United States Department of Transportation regulation 49 CFR 40.151(e), or impact an employer's ability to comply with federal or State law or cause it to lose a federal or State contract or funding.

(h) As used in this Section:

"Workplace" means the employer's premises, including any building, real property, and parking area under the control of the employer or area used by an employee while in the performance of the employee's job duties and vehicles, whether leased, rented, or owned, while being used in the performance of the employee's duties for the employer. "Workplace" may be further defined by the employer's written employment policy if the policy is consistent with this Section.

An employee is deemed "on call" when the employee is scheduled with at least 24 hours' notice by the employer to be on standby or otherwise responsible for performing tasks related to the person's employment, either at the employer's premises or other previously designated location by the employee's employer or supervisor, to perform a work-related task.

Article 50.

Intermediate Hemp Product Processing Tax

Section 50-5. Definitions. In this Article:

"Cannabis" has the meaning given to that term in Article 1 of this Act, except that it does not include cannabis that is subject to tax under the Compassionate Use of Medical Cannabis Program Act.

"Craft grower" has the meaning given to that term in the Cannabis Regulation and Tax Act.

"Cultivation center" has the meaning given to that term in the Cannabis Regulation and Tax Act.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensary" has the meaning given to that term in the Cannabis Regulation and Tax Act.

"Gross receipts" from the sales of intermediate hemp products by a processor means the total selling price or the amount of such sales, as defined in this Article. In the case of charges and time sales, the amount thereof shall be included only when payments are received by the processor.

"Infuser" has the meaning given to that term in the Cannabis Regulation and Tax Act.

"Person" means a natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Processor" or "taxpayer" means a cultivation center, craft grower, or hemp processor who is subject to tax under this Article.

"Selling price" means the consideration for a sale valued in money whether received in money or otherwise, including cash, credits, property, and services, and shall be determined without any deduction on account of the cost of the property sold, the cost of materials used, labor or service cost, or any other expense whatsoever, but does not include separately stated charges identified on the invoice by cultivators to reimburse themselves for their tax liability under this Article.

Section 50-10. Tax imposed.

(a) Beginning September 1, 2024, a tax is imposed upon the privilege of processing hemp products into intermediate hemp products at the rate of 7% of the gross receipts from the first sale of intermediate hemp products by a processor. The sale of any product that contains any amount of intermediate hemp product or any derivative thereof is subject to the tax under this Section on the full selling price of the product. The Department may determine the selling price of the intermediate hemp product when the seller and purchaser are affiliated persons, when the sale and purchase of intermediate hemp products are not an arm's length transaction, or when intermediate hemp products are transferred by a craft grower to the craft grower's or infuser or processing organization and a value is not established for the cannabis. The value determined by the Department shall be commensurate with the actual price received for products of like quality, character, and use in the area. If there are no sales of intermediate hemp products of like quality, character, and use in the same area, then the Department shall establish a reasonable value based on sales of products of like quality, character, and use in other areas of the State, taking into consideration any other relevant factors.

(b) The intermediate hemp product procession tax imposed under this Article is solely the responsibility of the processor who makes the first sale and is not the responsibility of a subsequent purchaser, hemp retailer, hemp concentrate retailer, hemp extract retailer, hemp concentrate infuser, or an infuser. Persons subject to the tax imposed under this Article may, however, reimburse themselves for their tax liability hereunder by separately stating reimbursement for their tax liability as an additional charge.

(c) The tax imposed under this Article shall be in addition to all other occupation, privilege, or excise taxes imposed by the State of Illinois or by any unit of local government.

Section 50-15. Registration of processor. Every processor subject to the tax under this Article shall apply to the Department for a certificate of registration under this Article. All applications for registration under this Article shall be made by electronic means in the form and manner required by the Department. For that purpose, the provisions of Section 2a of the Retailers' Occupation Tax Act are incorporated into this Article to the extent not inconsistent with this Article. In addition, no certificate of registration shall be issued under this Article unless the applicant is licensed under this Act.

Section 50-20. Returns. Return and payment of intermediate hemp product processing tax. Each person who is required to pay the tax imposed by this Article shall make a return to the Department on or before the 20th day of each month for the preceding calendar month stating:

(1) the taxpayer's name;

(2) the address of the taxpayer's principal place of business and the address of the principal place of business, if that is a different address, from which the taxpayer is engaged in the business of processing hemp subject to tax under this Article;

(3) the total amount of receipts received by the taxpayer during the preceding calendar month from sales of intermediate hemp product subject to tax under this Article by the taxpayer during the preceding calendar month;

(4) the total amount received by the taxpayer during the preceding calendar month on charge and time sales of intermediate hemp product subject to tax imposed under this Article by the taxpayer before the month for which the return is filed;

(5) deductions allowed by law;

(6) gross receipts that were received by the taxpayer during the preceding calendar month and upon the basis of which the tax is imposed;

(7) the amount of tax due;

(8) the signature of the taxpayer; and

(9) any other information as the Department may reasonably require.

All returns required to be filed and payments required to be made under this Article shall be by electronic means. Taxpayers who demonstrate hardship in paying electronically may petition the Department to waive the electronic payment requirement. The Department may require a separate return for the tax under this Article or combine the return for the tax under this Article with the return for the tax under the Compassionate Use of Medical Cannabis Program Act, the Cannabis Regulation and Tax Act, or both. If the return for the tax under this Article is combined with the return for tax under the Compassionate Use of Medical Cannabis Program Act, the Cannabis Regulation and Tax Act, or both, then the vendor's discount allowed under this Section and any cap on that discount shall apply to the combined return. The taxpayer making the return provided for in this Section shall also pay to the Department, in accordance with this Section, the amount of tax imposed by this Article, less a discount of 1.75%, but not to exceed $1,000 per return period, which is allowed to reimburse the taxpayer for the expenses incurred in keeping records, collecting tax, preparing and filing returns, remitting the tax, and supplying data to the Department upon request. No discount may be claimed by a taxpayer on returns not timely filed and for taxes not timely remitted. No discount may be claimed by a taxpayer for any return that is not filed electronically. No discount may be claimed by a taxpayer for any payment that is not made electronically unless a waiver has been granted under this Section. Any amount that is required to be shown or reported on any return or other document under this Article shall, if the amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount if the fractional part of a dollar is $0.50 or more and decreased to the nearest whole-dollar amount if the fractional part of a dollar is less than $0.50. If a total amount of less than $1 is payable, refundable, or creditable, the amount shall be disregarded if it is less than $0.50 and shall be increased to $1 if it is $0.50 or more. Notwithstanding any other provision of this Article concerning the time within which a taxpayer may file a return, any such taxpayer who ceases to engage in the kind of business that makes the person responsible for filing returns under this Article shall file a final return under this Article with the Department within one month after discontinuing such business.

Each taxpayer under this Article shall make estimated payments to the Department on or before the 7th, 15th, 22nd, and last day of the month during which tax liability to the Department is incurred. The payments shall be in an amount not less than the lower of either 22.5% of the taxpayer's actual tax liability for the month or 25% of the taxpayer's actual tax liability for the same calendar month of the preceding year. The amount of the quarter-monthly payments shall be credited against the final tax liability of the taxpayer's return for that month. If any quarter-monthly payment is not paid at the time or in the amount required by this Section, then the taxpayer shall be liable for penalties and interest on the difference between the minimum amount due as a payment and the amount of the quarter-monthly payment actually and timely paid, except insofar as the taxpayer has previously made payments for that month to the Department in excess of the minimum payments previously due as provided in this Section.

If any payment provided for in this Section exceeds the taxpayer's liabilities under this Article, as shown on an original monthly return, the Department shall, if requested by the taxpayer, issue to the taxpayer a credit memorandum no later than 30 days after the date of payment. The credit evidenced by the credit memorandum may be assigned by the taxpayer to a similar taxpayer under this Act, in accordance with reasonable rules to be prescribed by the Department. If no such request is made, the taxpayer may credit the excess payment against tax liability subsequently to be remitted to the Department under this Act, in accordance with reasonable rules prescribed by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's discount shall be reduced, if necessary, to reflect the difference between the credit taken and that actually due, and that taxpayer shall be liable for penalties and interest on the difference.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the taxpayer, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Section 50-25. Infuser and hemp concentrate infuser information returns. If it is deemed necessary for the administration of this Article, the Department may adopt rules that require infusers or hemp concentrate infusers to file information returns regarding the sale of hemp concentrate derived products by infusers or hemp concentrate infusers to dispensaries or hemp concentrate retailers. The Department may require infusers or hemp concentrate infusers to file all information returns by electronic means.

Section 50-30. Deposit of proceeds. All moneys received by the Department under this Article shall be deposited into the Cannabis Regulation Fund.

Section 50-35. Department administration and enforcement. The Department shall administer and enforce this Article, collect all taxes, penalties, and interest due under this Article, dispose of taxes, penalties, and interest so collected in the manner provided in this Article, and determine all rights to credit memoranda arising on account of the erroneous payment of tax, penalty, or interest under this Article. In the administration of, and compliance with, this Article, the Department and persons who are subject to this Article shall have the same rights, remedies, privileges, immunities, powers, and duties, shall be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and shall employ the same modes of procedure as are prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and all of the provisions of the Uniform Penalty and Interest Act that are not inconsistent with this Article, as fully as if those provisions were set forth in this Article. As used in this Section, references in the Retailers' Occupation Tax Act to a "sale of tangible personal property at retail" mean the "sale of intermediate hemp product by a processor".

Section 50-40. Invoices. Every sales invoice for intermediate hemp product issued by a processor to a cannabis or hemp business establishment shall contain the processor's certificate of registration number assigned under this Article, date, invoice number, purchaser's name and address, selling price, amount of intermediate hemp product, hemp concentrate, hemp extract, hemp extract derived product, or hemp concentrate derived product and any other reasonable information as the Department may provide by rule is necessary for the administration of this Article. Processors shall retain the invoices for inspection by the Department.

Section 50-45. Rules. The Department may adopt rules related to the enforcement of this Article.

Article 55.

Hemp Concentrate Derived Product Excise Tax

Section 55-5. Definitions. In this Article:

"Adjusted delta-9-tetrahydrocannabinol level" means, for a delta-9-tetrahydrocannabinol dominant product, the sum of the percentage of delta-9-tetrahydrocannabinol plus .877 multiplied by the percentage of tetrahydrocannabinolic acid.

"Cannabis retailer" means a dispensing organization that sells cannabis or hemp concentrate derived product for use and not for resale.

"Department" means the Department of Revenue.

"Director" means the Director of Revenue.

"Dispensing organization" has the meaning given to that term in Article 1 of the Cannabis Regulation and Tax Act.

"Person" means a natural individual, firm, partnership, association, joint stock company, joint adventure, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Infuser organization" and "infuser" have the meanings given to those terms in Article 1 of the Cannabis Regulation and Tax Act.

"Purchase price" means the consideration paid for a purchase of cannabis, valued in money, whether received in money or otherwise, including cash, gift cards, credits, and property and shall be determined without any deduction on account of the cost of materials used, labor or service costs, or any other expense whatsoever. "Purchase price" does not include consideration paid for:

(1) any charge for a payment that is not honored by a financial institution;

(2) any finance or credit charge, penalty or charge for delayed payment, or discount for prompt payment; and

(3) any amounts added to a purchaser's bill because of charges made under the tax imposed by this Article, the Municipal Cannabis Retailers' Occupation Tax Law, the County Cannabis Retailers' Occupation Tax Law, the Retailers' Occupation Tax Act, the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, or any locally imposed occupation or use tax.

"Purchaser" means a person who acquires hemp concentrate derived products for a valuable consideration.

"Taxpayer" means a hemp concentrate derived product retailer who is required to collect the tax imposed under this Article.

Section 55-10. Tax imposed.

(a) Beginning January 1, 2024, a tax is imposed upon purchasers for the privilege of using hemp concentrate derived products at the following rates:

(1) A hemp concentrate derived product, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol, or delta-8-tetrahydrocannabinol level at or below 35% shall be taxed at a rate of 10% of the purchase price;

(2) A hemp concentrate derived product, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level or delta-8-tetrahydrocannabinol above 35% shall be taxed at a rate of 25% of the purchase price; and

(3) A hemp concentrate derived product shall be taxed at a rate of 20% of the purchase price.

(b) The purchase of any product that contains any amount of hemp concentrate is subject to the tax under subsection (a) on the full purchase price of the product.

(c) The tax imposed by this Article is not imposed with respect to any transaction in interstate commerce, to the extent the transaction may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

(d) The tax imposed under this Article shall be in addition to all other occupation, privilege, or excise taxes imposed by the State or by any municipal corporation or political subdivision thereof.

(e) The tax imposed under this Article may not be imposed on any purchase by a purchaser if the hemp concentrate retailer or dispensing organization is prohibited by federal or State Constitution, treaty, convention, statute, or court decision from collecting the tax from the purchaser.

Section 55-15. Bundling of taxable and nontaxable items; prohibition; taxation. If a hemp concentrate derived product retailer sells hemp concentrate derived products in combination or bundled with items that are not subject to tax under this Act for one price in violation of the prohibition on this activity in Article 15, then the tax under this Act is imposed on the purchase price of the entire bundled product.

Section 55-20. Collection of tax.

(a) The tax imposed by this Article shall be collected from the purchaser by the hemp concentrate derived product retailer at the rate stated in Section 55-10 with respect to hemp concentrate derived products sold by the hemp concentrate derived product retailer to the purchaser and shall be remitted to the Department as provided in Section 55-30. Hemp concentrate derived product retailers shall collect the tax from purchasers by adding the tax to the amount of the purchase price received from the purchaser for selling hemp concentrate derived products to the purchaser. The tax imposed by this Article shall, when collected, be stated as a distinct item separate and apart from the purchase price of the hemp concentrate derived products.

(b) If a hemp concentrate derived product retailer collects the hemp concentrate derived product excise tax measured by a purchase price that is not subject to the intermediate hemp product processing tax, or, if a hemp concentrate derived product retailer, in collecting hemp concentrate derived product excise tax measured by a purchase price that is subject to tax under this Act, collects more from the purchaser than the required amount of the hemp concentrate derived product excise tax on the transaction, the purchaser may request and obtain a refund of that amount from the hemp concentrate derived product retailer. If, however, that amount is not refunded to the purchaser for any reason, the hemp concentrate derived product retailer is liable to pay that amount to the Department.

(c) Any person purchasing hemp concentrate derived products subject to tax under this Article as to which there has been no charge made to the person of the tax imposed by Section 55-10 shall make payment of the tax imposed by Section 55-10 in the form and manner provided by the Department not later than the 20th day of the month following the month of purchase of the hemp concentrate derived products.

Section 55-25. Registration of hemp concentrate derived product retailers. Every hemp concentrate derived product retailer required to collect the tax under this Article shall apply to the Department for a certificate of registration under this Article. All applications for registration under this Article shall be made by electronic means in the form and manner required by the Department. For that purpose, the provisions of Section 2a of the Retailers' Occupation Tax Act are incorporated into this Article to the extent not inconsistent with this Article. In addition, no certificate of registration shall be issued under this Article unless the applicant is licensed under this Act.

Section 55-30. Tax collected as debt owed to State. A hemp concentrate derived product retailer required to collect the tax imposed by this Article is liable to the Department for the tax, whether or not the tax has been collected by the hemp concentrate derived product retailer, and the tax shall constitute a debt owed by the hemp concentrate derived product retailer to this State. To the extent that a hemp concentrate derived product retailer required to collect the tax imposed by this Act has actually collected that tax, the tax is held in trust for the benefit of the Department.

Section 55-35. Return and payment of tax by hemp concentrate derived product retailer. Each hemp concentrate derived product retailer that is required or authorized to collect the tax imposed by this Article shall make a return to the Department, by electronic means, on or before the 20th day of each month for the preceding calendar month stating the following:

(1) The hemp concentrate derived product retailer's name.

(2) The address of the hemp concentrate derived product retailer's principal place of business and the address of the principal place of business, if that is a different address, from which the hemp concentrate derived product retailer engaged in the business of selling hemp concentrate derived products subject to tax under this Article.

(3) The total purchase price received by the hemp concentrate derived product retailer for hemp concentrate derived products subject to tax under this Article.

(4) The amount of tax due at each rate.

(5) The signature of the cannabis retailer.

(6) Any other information as the Department may reasonably require.

All returns required to be filed and payments required to be made under this Article shall be by electronic means. Hemp concentrate derived product retailers who demonstrate hardship in paying electronically may petition the Department to waive the electronic payment requirement.

Any amount that is required to be shown or reported on any return or other document under this Article shall, if the amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount if the fractional part of a dollar is $0.50 or more and decreased to the nearest whole-dollar amount if the fractional part of a dollar is less than $0.50. If a total amount of less than $1 is payable, refundable, or creditable, the amount shall be disregarded if it is less than $0.50 and shall be increased to $1 if it is $0.50 or more.

The hemp concentrate derived product retailer making the return provided for in this Section shall also pay to the Department, in accordance with this Section, the amount of tax imposed by this Article, less a discount of 1.75%, but not to exceed $1,000 per return period, which is allowed to reimburse the hemp concentrate derived product retailer for the expenses incurred in keeping records, collecting tax, preparing and filing returns, remitting the tax, and supplying data to the Department upon request. No discount may be claimed by a hemp concentrate derived product retailer on returns not timely filed and for taxes not timely remitted. No discount may be claimed by a taxpayer for any return that is not filed electronically. No discount may be claimed by a taxpayer for any payment that is not made electronically unless a waiver has been granted under this Section.

Notwithstanding any other provision of this Article concerning the time within which a hemp concentrate derived product retailer may file a return, a hemp concentrate derived product retailer who ceases to engage in the kind of business that makes the person responsible for filing returns under this Article shall file a final return under this Article with the Department within one month after discontinuing the business.

Each hemp concentrate derived product retailer shall make estimated payments to the Department on or before the 7th, 15th, 22nd, and last day of the month during which tax liability to the Department is incurred. The payments shall be in an amount not less than the lower of either 22.5% of the hemp concentrate derived product retailer's actual tax liability for the month or 25% of the hemp concentrate derived product retailer's actual tax liability for the same calendar month of the preceding year. The amount of the quarter-monthly payments shall be credited against the final tax liability of the hemp concentrate derived product retailer's return for that month. If any such quarter-monthly payment is not paid at the time or in the amount required by this Section, then the hemp concentrate derived product retailer shall be liable for penalties and interest on the difference between the minimum amount due as a payment and the amount of the quarter-monthly payment actually and timely paid, except insofar as the hemp concentrate derived product retailer has previously made payments for that month to the Department in excess of the minimum payments previously due as provided in this Section.

If any payment provided for in this Section exceeds the taxpayer's liabilities under this Article, as shown on an original monthly return, the Department shall, if requested by the taxpayer, issue to the taxpayer a credit memorandum no later than 30 days after the date of payment. The credit evidenced by the credit memorandum may be assigned by the taxpayer to a similar taxpayer under this Article, in accordance with reasonable rules to be prescribed by the Department. If no such request is made, the taxpayer may credit the excess payment against tax liability subsequently to be remitted to the Department under this Article, in accordance with reasonable rules prescribed by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's discount shall be reduced, if necessary, to reflect the difference between the credit taken and that actually due, and that taxpayer shall be liable for penalties and interest on the difference. If a hemp concentrate derived product retailer fails to sign a return within 30 days after the proper notice and demand for signature by the Department is received by the hemp concentrate derived product retailer, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Section 55-40. Deposit of proceeds. All moneys received by the Department under this Article shall be paid into the Cannabis Regulation Fund.

Section 55-45. Recordkeeping; books and records.

(a) Every hemp concentrate derived product retailer, whether or not the retailer has obtained a certificate of registration under Section 55-20, shall keep complete and accurate records of cannabis held, purchased, sold, or otherwise disposed of, and shall preserve and keep all invoices, bills of lading, sales records, and copies of bills of sale, returns, and other pertinent papers and documents relating to the purchase, sale, or disposition of hemp concentrate derived products. The records need not be maintained on the licensed premises but must be maintained in the State of Illinois. However, all original invoices or copies thereof covering purchases of hemp concentrate derived products must be retained on the licensed premises for a period of 90 days after such purchase unless the Department has granted a waiver in response to a written request in cases where records are kept at a central business location within the State. The Department shall adopt rules regarding the eligibility for a waiver, revocation of a waiver, and requirements and standards for maintenance and accessibility of records located at a central location under a waiver provided under this Section.

(b) Books, records, papers, and documents that are required by this Article to be kept shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees. The books, records, papers, and documents for any period with respect to which the Department is authorized to issue a notice of tax liability shall be preserved until the expiration of that period.

Section 55-50. Violations and penalties.

(a) As used in this Section:

"Automated sales suppression device" means a software program that falsifies the electronic records of an electronic cash register or other point-of-sale system, including, but not limited to, transaction data and transaction reports. "Automated sales suppression device" includes the software program, any device that carries the software program, or an Internet link to the software program.

"Phantom-ware" means a hidden programming option embedded in the operating system of an electronic cash register or hardwired into an electronic cash register that can be used to create a second set of records or that can eliminate or manipulate transaction records in an electronic cash register.

"Electronic cash register" means a device that keeps a register or supporting documents through the use of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.

"Transaction data" includes: items purchased by a purchaser; the price of each item; a taxability determination for each item; a segregated tax amount for each taxed item; the amount of cash or credit tendered; the net amount returned to the customer in change; the date and time of the purchase; the name, address, and identification number of the vendor; and the receipt or invoice number of the transaction.

"Transaction report" means a report that documents, without limitation, the sales, taxes, or fees collected, media totals, and discount voids at an electronic cash register and that is printed on a cash register tape at the end of a day or shift, or a report that documents every action at an electronic cash register and is stored electronically.

(b) When the amount due is under $300, (i) a hemp concentrate derived product retailer that fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by this Article, or files a fraudulent return, (ii) an officer or agent of a corporation engaged in the business of selling hemp concentrate derived products to purchasers located in this State who signs a fraudulent return filed on behalf of the corporation, or (iii) an accountant or other agent who knowingly enters false information on the return of any taxpayer under this Article is guilty of a Class 4 felony.

(c) When the amount due is $300 or more, (i) a hemp concentrate derived product retailer who files, or causes to be filed, a fraudulent return, (ii) an officer or agent of a corporation engaged in the business of selling hemp concentrate derived products to purchasers located in this State who files or causes to be filed or signs or causes to be signed a fraudulent return filed on behalf of the corporation, or (iii) an accountant or other agent who knowingly enters false information on the return of any taxpayer under this Article is guilty of a Class 3 felony.

(d) A person who violates any provision of Section 55-20, fails to keep books and records as required under this Article, or willfully violates a rule of the Department for the administration and enforcement of this Article is guilty of a Class 4 felony. A person commits a separate offense on each day that he or she engages in business in violation of Section 55-20 or a rule of the Department for the administration and enforcement of this Article. If a person fails to produce the books and records for inspection by the Department upon request, a prima facie presumption arises that the person has failed to keep books and records as required under this Article. A person who is unable to rebut this presumption is in violation of this Article and is subject to the penalties provided in this Section.

(e) A person who violates any provision of Sections 55-20, fails to keep books and records as required under this Article, or willfully violates a rule of the Department for the administration and enforcement of this Article is guilty of a business offense and may be fined up to $5,000. If a person fails to produce books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Article. A person who is unable to rebut this presumption is in violation of this Article and is subject to the penalties provided in this Section. A person commits a separate offense on each day that the person engages in business in violation of Section 55-20.

(f) A taxpayer or agent of a taxpayer who, with the intent to defraud, purports to make a payment due to the Department by issuing or delivering a check or other order upon a real or fictitious depository for the payment of money knowing that it will not be paid by the depository is guilty of a deceptive practice in violation of Section 17-1 of the Criminal Code of 2012.

(g) A person who fails to keep books and records or fails to produce books and records for inspection, as required by Section 55-40, is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or failure to produce books and records for inspection, as required by Section 55-40, and $3,000 for each subsequent failure to keep books and records or failure to produce books and records for inspection, as required by Section 55-40.

(h) A person who knowingly acts as a hemp concentrate derived product retailer in this State without first having obtained a certificate of registration to do so in compliance with Section 55-20 of this Article shall be guilty of a Class 4 felony.

(i) A person commits the offense of tax evasion under this Article when he or she knowingly attempts in any manner to evade or defeat the tax imposed on him or her or on any other person, or the payment thereof, and he or she commits an affirmative act in furtherance of the evasion. As used in this subsection, "affirmative act in furtherance of the evasion" means an act designed in whole or in part to (i) conceal, misrepresent, falsify, or manipulate any material fact or (ii) tamper with or destroy documents or materials related to a person's tax liability under this Article. Two or more acts of sales tax evasion may be charged as a single count in any indictment, information, or complaint and the amount of tax deficiency may be aggregated for purposes of determining the amount of tax that is attempted to be or is evaded and the period between the first and last acts may be alleged as the date of the offense. Penalties for the offense of tax evasion under this subsection are as follows:

(1) When the amount of tax, the assessment, or payment of which is attempted to be or is evaded is less than $500, a person is guilty of a Class 4 felony.

(2) When the amount of tax, the assessment, or payment of which is attempted to be or is evaded is $500 or more but less than $10,000, a person is guilty of a Class 3 felony.

(3) When the amount of tax, the assessment, or payment of which is attempted to be or is evaded is $10,000 or more but less than $100,000, a person is guilty of a Class 2 felony.

(4) When the amount of tax, the assessment, or payment of which is attempted to be or is evaded is $100,000 or more, a person is guilty of a Class 1 felony.

A person who knowingly sells, purchases, installs, transfers, possesses, uses, or accesses an automated sales suppression device or phantom-ware in this State is guilty of a Class 3 felony.

A prosecution for any act in violation of this Section may be commenced at any time within 5 years of the commission of that act.

(j) The Department may adopt rules to administer the penalties under this Section.

(k) A person whose principal place of business is in this State and who is charged with a violation under this Section shall be tried in the county where the person's principal place of business is located unless the person asserts a right to be tried in another venue.

(l) Except as otherwise provided in subsection (g), a prosecution for a violation described in this Section may be commenced within 3 years after the commission of the act constituting the violation.

Section 55-55. Department administration and enforcement.

(a) The Department shall administer and enforce this Article, collect all taxes and penalties due under this Article, dispose of taxes and penalties so collected in the manner provided in this Article, and determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty under this Article.

(b) In the administration of, and compliance with, this Article, the Department and persons who are subject to this Article shall have the same rights, remedies, privileges, immunities, powers, and duties, shall be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and shall employ the same modes of procedure as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Sections 1, 2-12, 2b, 4, except that the time limitation provisions shall run from the date when the tax is due rather than from the date when gross receipts are received, 5, except that the time limitation provisions on the issuance of notices of tax liability shall run from the date when the tax is due rather than from the date when gross receipts are received and except that in the case of a failure to file a return required by this Act, no notice of tax liability shall be issued on and after each July 1 and January 1 covering tax due with that return during any month or period more than 6 years before that July 1 or January 1, respectively, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax Act and all of the provisions of the Uniform Penalty and Interest Act that are not inconsistent with this Article, as fully as if those provisions were set forth in this Article. References in the incorporated Sections of the Retailers' Occupation Tax Act and the Use Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean hemp concentrate derived product retailers when used in this Article. References in the incorporated Sections to sales of tangible personal property mean sales of hemp concentrate derived products subject to tax under this Article when used in this Article.

Section 55-60. Arrest; search and seizure without warrant. An authorized employee of the Department may: (i) arrest without warrant any person committing in the employee's presence a violation of any of the provisions of this Article; (ii) without a search warrant inspect all hemp concentrate derived products located in any place of business; (iii) seize any hemp concentrate derived products in the possession of the retailer in violation of this Act; and (iv) seize any hemp concentrate derived products on which the tax imposed by Article 50 of this Act has not been paid. Hemp concentrate derived products seized under this Section are subject to confiscation and forfeiture as provided in Sections 55-65 and 55-70.

Section 55-65. Seizure and forfeiture.

(a) After seizing any hemp concentrate derived products as provided in Section 55-60, the Department must hold a hearing and determine whether the retailer was properly registered to sell the hemp concentrate derived products at the time of its seizure by the Department. The Department shall give not less than 20 days' notice of the time and place of the hearing to the owner of the hemp concentrate derived products, if the owner is known, and also to the person in whose possession the hemp concentrate derived products was found, if that person is known and if the person in possession is not the owner of the hemp concentrate derived products. If neither the owner nor the person in possession of the hemp concentrate derived products is known, the Department must cause publication of the time and place of the hearing to be made at least once in each week for 3 weeks successively in a newspaper of general circulation in the county where the hearing is to be held.

(b) If, as the result of the hearing, the Department determines that the retailer was not properly registered at the time the hemp concentrate derived products was seized, the Department must enter an order declaring the hemp concentrate derived products confiscated and forfeited to the State, to be held by the Department for disposal by it as provided in Section 55-70. The Department must give notice of the order to the owner of the hemp concentrate derived products, if the owner is known, and also to the person in whose possession the hemp concentrate derived products was found, if that person is known and if the person in possession is not the owner of the hemp concentrate derived products. If neither the owner nor the person in possession of the hemp concentrate derived products is known, the Department must cause publication of the order to be made at least once in each week for 3 weeks successively in a newspaper of general circulation in the county where the hearing was held.

Section 55-70. Search warrant; issuance and return; process; confiscation of hemp concentrate derived products; forfeitures.

(a) If a peace officer of this State or an authorized officer or employee of the Department has reason to believe that any violation of this Article or a rule of the Department for the administration and enforcement of this Article has occurred and that the person violating this Article or rule has in that person's possession any hemp concentrate derived products in violation of this Article or a rule of the Department for the administration and enforcement of this Article, that peace officer or officer or employee of the Department may file or cause to be filed his or her complaint in writing, verified by affidavit, with any court within whose jurisdiction the premises to be searched are situated stating the facts upon which the belief is founded, the premises to be searched, and the property to be seized, and the peace officer or officer or employee of the Department may procure a search warrant and execute that warrant. Upon the execution of the search warrant, the peace officer or officer or employee of the Department executing the search warrant shall make due return of the warrant to the court issuing the warrant, together with an inventory of the property taken under the warrant. The court must then issue process against the owner of the property if the owner is known; otherwise, process must be issued against the person in whose possession the property is found, if that person is known. In case of inability to serve process upon the owner or the person in possession of the property at the time of its seizure, notice of the proceedings before the court must be given in the same manner as required by the law governing cases of attachment. Upon the return of the process duly served or upon the posting or publishing of notice made, as appropriate, the court or jury, if a jury is demanded, shall proceed to determine whether the property so seized was held or possessed in violation of this Article or a rule of the Department for the administration and enforcement of this Article. If a violation is found, judgment shall be entered confiscating the property and forfeiting it to the State and ordering its delivery to the Department. In addition, the court may tax and assess the costs of the proceedings.

(b) When any hemp concentrate derived products have been declared forfeited to the State by the Department, as provided in Section 55-65 and this Section, and, when all proceedings for the judicial review of the Department's decision have terminated, the Department shall, to the extent that its decision is sustained on review, destroy or maintain and use the hemp concentrate derived products in an undercover capacity.

(c) The Department may, before any destruction of hemp concentrate derived products, permit the holder of trademark rights in the hemp concentrate derived products to inspect the hemp concentrate derived products in order to assist the Department in any investigation regarding the hemp concentrate derived products.

Section 55-75. Hemp concentrate derived product retailers; purchase and possession of hemp concentrate derived products. Hemp concentrate derived product retailers shall purchase hemp concentrate derived products for resale only from cannabis or hemp business establishments as authorized by this Act.

Section 55-80. Rulemaking. The Department may adopt rules in accordance with the Illinois Administrative Procedure Act and prescribe forms relating to the administration and enforcement of this Article as it deems appropriate.

Article 800. Amendatory Changes

Section 800-5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.55 as follows:

(5 ILCS 100/5-45.55 new)

Sec. 5-45.55. Emergency rulemaking; Hemp Cannabinoid Products Act. To provide for the expeditious and timely implementation of the Hemp Cannabinoid Products Act, emergency rules implementing the Hemp Cannabinoid Products Act may be adopted in accordance with Section 5-45 by the Department of Agriculture. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 103rd General Assembly.

Section 800-10. The Use Tax Act is amended by changing Section 9 as follows:

(35 ILCS 105/9) (from Ch. 120, par. 439.9)

Sec. 9. Except as to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, each retailer required or authorized to collect the tax imposed by this Act shall pay to the Department the amount of such tax (except as otherwise provided) at the time when he is required to file his return for the period during which such tax was collected, less a discount of 2.1% prior to January 1, 1990, and 1.75% on and after January 1, 1990, or $5 per calendar year, whichever is greater, which is allowed to reimburse the retailer for expenses incurred in collecting the tax, keeping records, preparing and filing returns, remitting the tax and supplying data to the Department on request. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. In the case of retailers who report and pay the tax on a transaction by transaction basis, as provided in this Section, such discount shall be taken with each such tax remittance instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final. A retailer need not remit that part of any tax collected by him to the extent that he is required to remit and does remit the tax imposed by the Retailers' Occupation Tax Act, with respect to the sale of the same property.

Where such tangible personal property is sold under a conditional sales contract, or under any other form of sale wherein the payment of the principal sum, or a part thereof, is extended beyond the close of the period for which the return is filed, the retailer, in collecting the tax (except as to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State), may collect for each tax return period, only the tax applicable to that part of the selling price actually received during such tax return period.

Except as provided in this Section, on or before the twentieth day of each calendar month, such retailer shall file a return for the preceding calendar month. Such return shall be filed on forms prescribed by the Department and shall furnish such information as the Department may reasonably require. The return shall include the gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month, quarter, or year, as appropriate, and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700. The return shall also include the amount of tax that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700.

On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.

The Department may require returns to be filed on a quarterly basis. If so required, a return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of such calendar quarter. The taxpayer shall also file a return with the Department for each of the first two months of each calendar quarter, on or before the twentieth day of the following calendar month, stating:

1. The name of the seller;

2. The address of the principal place of business from which he engages in the business of selling tangible personal property at retail in this State;

3. The total amount of taxable receipts received by him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;

4. The amount of credit provided in Section 2d of this Act;

5. The amount of tax due;

5-5. The signature of the taxpayer; and

6. Such other reasonable information as the Department may require.

Each retailer required or authorized to collect the tax imposed by this Act on aviation fuel sold at retail in this State during the preceding calendar month shall, instead of reporting and paying tax on aviation fuel as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers collecting tax on aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on hemp concentrate, intermediate hemp products, or hemp concentrate derived products shall file all tax returns and shall make all tax payments on hemp concentrate, intermediate hemp products, and hemp concentrate derived products by electronic means in the manner and form required by the Department.

Beginning October 1, 1993, a taxpayer who has an average monthly tax liability of $150,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an average monthly tax liability of $100,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has an annual tax liability of $200,000 or more shall make all payments required by rules of the Department by electronic funds transfer. The term "annual tax liability" shall be the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year. The term "average monthly tax liability" means the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year divided by 12. Beginning on October 1, 2002, a taxpayer who has a tax liability in the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law shall make all payments required by rules of the Department by electronic funds transfer.

Before August 1 of each year beginning in 1993, the Department shall notify all taxpayers required to make payments by electronic funds transfer. All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1.

Any taxpayer not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

All taxpayers required to make payment by electronic funds transfer and any taxpayers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

The Department shall adopt such rules as are necessary to effectuate a program of electronic funds transfer and the requirements of this Section.

Before October 1, 2000, if the taxpayer's average monthly tax liability to the Department under this Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act was $10,000 or more during the preceding 4 complete calendar quarters, he shall file a return with the Department each month by the 20th day of the month next following the month during which such tax liability is incurred and shall make payments to the Department on or before the 7th, 15th, 22nd and last day of the month during which such liability is incurred. On and after October 1, 2000, if the taxpayer's average monthly tax liability to the Department under this Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act was $20,000 or more during the preceding 4 complete calendar quarters, he shall file a return with the Department each month by the 20th day of the month next following the month during which such tax liability is incurred and shall make payment to the Department on or before the 7th, 15th, 22nd and last day of the month during which such liability is incurred. If the month during which such tax liability is incurred began prior to January 1, 1985, each payment shall be in an amount equal to 1/4 of the taxpayer's actual liability for the month or an amount set by the Department not to exceed 1/4 of the average monthly liability of the taxpayer to the Department for the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability in such 4 quarter period). If the month during which such tax liability is incurred begins on or after January 1, 1985, and prior to January 1, 1987, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 27.5% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1987, and prior to January 1, 1988, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 26.25% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1989, and prior to January 1, 1996, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's liability for the same calendar month of the preceding year or 100% of the taxpayer's actual liability for the quarter monthly reporting period. The amount of such quarter monthly payments shall be credited against the final tax liability of the taxpayer's return for that month. Before October 1, 2000, once applicable, the requirement of the making of quarter monthly payments to the Department shall continue until such taxpayer's average monthly liability to the Department during the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability) is less than $9,000, or until such taxpayer's average monthly liability to the Department as computed for each calendar quarter of the 4 preceding complete calendar quarter period is less than $10,000. However, if a taxpayer can show the Department that a substantial change in the taxpayer's business has occurred which causes the taxpayer to anticipate that his average monthly tax liability for the reasonably foreseeable future will fall below the $10,000 threshold stated above, then such taxpayer may petition the Department for change in such taxpayer's reporting status. On and after October 1, 2000, once applicable, the requirement of the making of quarter monthly payments to the Department shall continue until such taxpayer's average monthly liability to the Department during the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability) is less than $19,000 or until such taxpayer's average monthly liability to the Department as computed for each calendar quarter of the 4 preceding complete calendar quarter period is less than $20,000. However, if a taxpayer can show the Department that a substantial change in the taxpayer's business has occurred which causes the taxpayer to anticipate that his average monthly tax liability for the reasonably foreseeable future will fall below the $20,000 threshold stated above, then such taxpayer may petition the Department for a change in such taxpayer's reporting status. The Department shall change such taxpayer's reporting status unless it finds that such change is seasonal in nature and not likely to be long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. If any such quarter monthly payment is not paid at the time or in the amount required by this Section, then the taxpayer shall be liable for penalties and interest on the difference between the minimum amount due and the amount of such quarter monthly payment actually and timely paid, except insofar as the taxpayer has previously made payments for that month to the Department in excess of the minimum payments previously due as provided in this Section. The Department shall make reasonable rules and regulations to govern the quarter monthly payment amount and quarter monthly payment dates for taxpayers who file on other than a calendar monthly basis.

If any such payment provided for in this Section exceeds the taxpayer's liabilities under this Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act and the Service Use Tax Act, as shown by an original monthly return, the Department shall issue to the taxpayer a credit memorandum no later than 30 days after the date of payment, which memorandum may be submitted by the taxpayer to the Department in payment of tax liability subsequently to be remitted by the taxpayer to the Department or be assigned by the taxpayer to a similar taxpayer under this Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in accordance with reasonable rules and regulations to be prescribed by the Department, except that if such excess payment is shown on an original monthly return and is made after December 31, 1986, no credit memorandum shall be issued, unless requested by the taxpayer. If no such request is made, the taxpayer may credit such excess payment against tax liability subsequently to be remitted by the taxpayer to the Department under this Act, the Retailers' Occupation Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, in accordance with reasonable rules and regulations prescribed by the Department. If the Department subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall be reduced by 2.1% or 1.75% of the difference between the credit taken and that actually due, and the taxpayer shall be liable for penalties and interest on such difference.

If the retailer is otherwise required to file a monthly return and if the retailer's average monthly tax liability to the Department does not exceed $200, the Department may authorize his returns to be filed on a quarter annual basis, with the return for January, February, and March of a given year being due by April 20 of such year; with the return for April, May and June of a given year being due by July 20 of such year; with the return for July, August and September of a given year being due by October 20 of such year, and with the return for October, November and December of a given year being due by January 20 of the following year.

If the retailer is otherwise required to file a monthly or quarterly return and if the retailer's average monthly tax liability to the Department does not exceed $50, the Department may authorize his returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which a retailer may file his return, in the case of any retailer who ceases to engage in a kind of business which makes him responsible for filing returns under this Act, such retailer shall file a final return under this Act with the Department not more than one month after discontinuing such business.

In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, except as otherwise provided in this Section, every retailer selling this kind of tangible personal property shall file, with the Department, upon a form to be prescribed and supplied by the Department, a separate return for each such item of tangible personal property which the retailer sells, except that if, in the same transaction, (i) a retailer of aircraft, watercraft, motor vehicles or trailers transfers more than one aircraft, watercraft, motor vehicle or trailer to another aircraft, watercraft, motor vehicle or trailer retailer for the purpose of resale or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers transfers more than one aircraft, watercraft, motor vehicle, or trailer to a purchaser for use as a qualifying rolling stock as provided in Section 3-55 of this Act, then that seller may report the transfer of all the aircraft, watercraft, motor vehicles or trailers involved in that transaction to the Department on the same uniform invoice-transaction reporting return form. For purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4 watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a personal watercraft, or any boat equipped with an inboard motor.

In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.

The transaction reporting return in the case of motor vehicles or trailers that are required to be registered with an agency of this State, shall be the same document as the Uniform Invoice referred to in Section 5-402 of the Illinois Vehicle Code and must show the name and address of the seller; the name and address of the purchaser; the amount of the selling price including the amount allowed by the retailer for traded-in property, if any; the amount allowed by the retailer for the traded-in tangible personal property, if any, to the extent to which Section 2 of this Act allows an exemption for the value of traded-in property; the balance payable after deducting such trade-in allowance from the total selling price; the amount of tax due from the retailer with respect to such transaction; the amount of tax collected from the purchaser by the retailer on such transaction (or satisfactory evidence that such tax is not due in that particular instance, if that is claimed to be the fact); the place and date of the sale; a sufficient identification of the property sold; such other information as is required in Section 5-402 of the Illinois Vehicle Code, and such other information as the Department may reasonably require.

The transaction reporting return in the case of watercraft and aircraft must show the name and address of the seller; the name and address of the purchaser; the amount of the selling price including the amount allowed by the retailer for traded-in property, if any; the amount allowed by the retailer for the traded-in tangible personal property, if any, to the extent to which Section 2 of this Act allows an exemption for the value of traded-in property; the balance payable after deducting such trade-in allowance from the total selling price; the amount of tax due from the retailer with respect to such transaction; the amount of tax collected from the purchaser by the retailer on such transaction (or satisfactory evidence that such tax is not due in that particular instance, if that is claimed to be the fact); the place and date of the sale, a sufficient identification of the property sold, and such other information as the Department may reasonably require.

Such transaction reporting return shall be filed not later than 20 days after the date of delivery of the item that is being sold, but may be filed by the retailer at any time sooner than that if he chooses to do so. The transaction reporting return and tax remittance or proof of exemption from the tax that is imposed by this Act may be transmitted to the Department by way of the State agency with which, or State officer with whom, the tangible personal property must be titled or registered (if titling or registration is required) if the Department and such agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

With each such transaction reporting return, the retailer shall remit the proper amount of tax due (or shall submit satisfactory evidence that the sale is not taxable if that is the case), to the Department or its agents, whereupon the Department shall issue, in the purchaser's name, a tax receipt (or a certificate of exemption if the Department is satisfied that the particular sale is tax exempt) which such purchaser may submit to the agency with which, or State officer with whom, he must title or register the tangible personal property that is involved (if titling or registration is required) in support of such purchaser's application for an Illinois certificate or other evidence of title or registration to such tangible personal property.

No retailer's failure or refusal to remit tax under this Act precludes a user, who has paid the proper tax to the retailer, from obtaining his certificate of title or other evidence of title or registration (if titling or registration is required) upon satisfying the Department that such user has paid the proper tax (if tax is due) to the retailer. The Department shall adopt appropriate rules to carry out the mandate of this paragraph.

If the user who would otherwise pay tax to the retailer wants the transaction reporting return filed and the payment of tax or proof of exemption made to the Department before the retailer is willing to take these actions and such user has not paid the tax to the retailer, such user may certify to the fact of such delay by the retailer, and may (upon the Department being satisfied of the truth of such certification) transmit the information required by the transaction reporting return and the remittance for tax or proof of exemption directly to the Department and obtain his tax receipt or exemption determination, in which event the transaction reporting return and tax remittance (if a tax payment was required) shall be credited by the Department to the proper retailer's account with the Department, but without the 2.1% or 1.75% discount provided for in this Section being allowed. When the user pays the tax directly to the Department, he shall pay the tax in the same amount and in the same form in which it would be remitted if the tax had been remitted to the Department by the retailer.

Where a retailer collects the tax with respect to the selling price of tangible personal property which he sells and the purchaser thereafter returns such tangible personal property and the retailer refunds the selling price thereof to the purchaser, such retailer shall also refund, to the purchaser, the tax so collected from the purchaser. When filing his return for the period in which he refunds such tax to the purchaser, the retailer may deduct the amount of the tax so refunded by him to the purchaser from any other use tax which such retailer may be required to pay or remit to the Department, as shown by such return, if the amount of the tax to be deducted was previously remitted to the Department by such retailer. If the retailer has not previously remitted the amount of such tax to the Department, he is entitled to no deduction under this Act upon refunding such tax to the purchaser.

Any retailer filing a return under this Section shall also include (for the purpose of paying tax thereon) the total tax covered by such return upon the selling price of tangible personal property purchased by him at retail from a retailer, but as to which the tax imposed by this Act was not collected from the retailer filing such return, and such retailer shall remit the amount of such tax to the Department when filing such return.

If experience indicates such action to be practicable, the Department may prescribe and furnish a combination or joint return which will enable retailers, who are required to file returns hereunder and also under the Retailers' Occupation Tax Act, to furnish all the return information required by both Acts on the one form.

Where the retailer has more than one business registered with the Department under separate registration under this Act, such retailer may not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.

Beginning January 1, 1990, each month the Department shall pay into the State and Local Sales Tax Reform Fund, a special fund in the State Treasury which is hereby created, the net revenue realized for the preceding month from the 1% tax imposed under this Act.

Beginning January 1, 1990, each month the Department shall pay into the County and Mass Transit District Fund 4% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property which is purchased outside Illinois at retail from a retailer and which is titled or registered by an agency of this State's government.

Beginning January 1, 1990, each month the Department shall pay into the State and Local Sales Tax Reform Fund, a special fund in the State Treasury, 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property, other than (i) tangible personal property which is purchased outside Illinois at retail from a retailer and which is titled or registered by an agency of this State's government and (ii) aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuels Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the State and Local Sales Tax Reform Fund 100% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 3-6, is imposed at the rate of 1.25%, then the Department shall pay 100% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the State and Local Sales Tax Reform Fund.

Beginning January 1, 1990, each month the Department shall pay into the Local Government Tax Fund 16% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property which is purchased outside Illinois at retail from a retailer and which is titled or registered by an agency of this State's government.

Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.

Beginning July 1, 2011, each month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Retailers' Occupation Tax Act shall not exceed $2,000,000 in any fiscal year.

Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.

Beginning July 1, 2015, of the remainder of the moneys received by the Department under this Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.

Of the remainder of the moneys received by the Department pursuant to this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall be paid into the Build Illinois Fund; provided, however, that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the moneys received by the Department and required to be paid into the Build Illinois Fund pursuant to Section 3 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys being hereinafter called the "Tax Act Amount", and (2) the amount transferred to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall be less than the Annual Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax Act), an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and further provided, that if on the last business day of any month the sum of (1) the Tax Act Amount required to be deposited into the Build Illinois Bond Account in the Build Illinois Fund during such month and (2) the amount transferred during such month to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall have been less than 1/12 of the Annual Specified Amount, an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and, further provided, that in no event shall the payments required under the preceding proviso result in aggregate payments into the Build Illinois Fund pursuant to this clause (b) for any fiscal year in excess of the greater of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such fiscal year; and, further provided, that the amounts payable into the Build Illinois Fund under this clause (b) shall be payable only until such time as the aggregate amount on deposit under each trust indenture securing Bonds issued and outstanding pursuant to the Build Illinois Bond Act is sufficient, taking into account any future investment income, to fully provide, in accordance with such indenture, for the defeasance of or the payment of the principal of, premium, if any, and interest on the Bonds secured by such indenture and on any Bonds expected to be issued thereafter and all fees and costs payable with respect thereto, all as certified by the Director of the Bureau of the Budget (now Governor's Office of Management and Budget). If on the last business day of any month in which Bonds are outstanding pursuant to the Build Illinois Bond Act, the aggregate of the moneys deposited in the Build Illinois Bond Account in the Build Illinois Fund in such month shall be less than the amount required to be transferred in such month from the Build Illinois Bond Account to the Build Illinois Bond Retirement and Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an amount equal to such deficiency shall be immediately paid from other moneys received by the Department pursuant to the Tax Acts to the Build Illinois Fund; provided, however, that any amounts paid to the Build Illinois Fund in any fiscal year pursuant to this sentence shall be deemed to constitute payments pursuant to clause (b) of the preceding sentence and shall reduce the amount otherwise payable for such fiscal year pursuant to clause (b) of the preceding sentence. The moneys received by the Department pursuant to this Act and required to be deposited into the Build Illinois Fund are subject to the pledge, claim and charge set forth in Section 12 of the Build Illinois Bond Act.

Subject to payment of amounts into the Build Illinois Fund as provided in the preceding paragraph or in any amendment thereto hereafter enacted, the following specified monthly installment of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority provided under Section 8.25f of the State Finance Act, but not in excess of the sums designated as "Total Deposit", shall be deposited in the aggregate from collections under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into the McCormick Place Expansion Project Fund in the specified fiscal years.

Beginning July 20, 1993 and in each month of each fiscal year thereafter, one-eighth of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority for that fiscal year, less the amount deposited into the McCormick Place Expansion Project Fund by the State Treasurer in the respective month under subsection (g) of Section 13 of the Metropolitan Pier and Exposition Authority Act, plus cumulative deficiencies in the deposits required under this Section for previous months and years, shall be deposited into the McCormick Place Expansion Project Fund, until the full amount requested for the fiscal year, but not in excess of the amount specified above as "Total Deposit", has been deposited.

Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Subject to payment of amounts into the Build Illinois Fund and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property.

Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Energy Infrastructure Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.

Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.

Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim, and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.

Fiscal Year............................Total Deposit

2024....................................$200,000,000

2025....................................$206,000,000

2026....................................$212,200,000

2027....................................$218,500,000

2028....................................$225,100,000

2029....................................$288,700,000

2030....................................$298,900,000

2031....................................$309,300,000

2032....................................$320,100,000

2033....................................$331,200,000

2034....................................$341,200,000

2035....................................$351,400,000

2036....................................$361,900,000

2037....................................$372,800,000

2038....................................$384,000,000

2039....................................$395,500,000

2040....................................$407,400,000

2041....................................$419,600,000

2042....................................$432,200,000

2043....................................$445,100,000

Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of this Act.

Of the remainder of the moneys received by the Department pursuant to this Act, 75% thereof shall be paid into the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.

As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Motor Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized under this Act for the second preceding month. Beginning April 1, 2000, this transfer is no longer required and shall not be made.

Net revenue realized for a month shall be the revenue collected by the State pursuant to this Act, less the amount paid out during that month as refunds to taxpayers for overpayment of liability.

For greater simplicity of administration, manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, and who wish to do so, may assume the responsibility for accounting and paying to the Department all tax accruing under this Act with respect to such sales, if the retailers who are affected do not make written objection to the Department to this arrangement.

(Source: P.A. 102-700, Article 60, Section 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. 7-28-23.)

Section 800-15. The Service Use Tax Act is amended by changing Section 9 as follows:

(35 ILCS 110/9) (from Ch. 120, par. 439.39)

Sec. 9. Each serviceman required or authorized to collect the tax herein imposed shall pay to the Department the amount of such tax (except as otherwise provided) at the time when he is required to file his return for the period during which such tax was collected, less a discount of 2.1% prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per calendar year, whichever is greater, which is allowed to reimburse the serviceman for expenses incurred in collecting the tax, keeping records, preparing and filing returns, remitting the tax and supplying data to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final. A serviceman need not remit that part of any tax collected by him to the extent that he is required to pay and does pay the tax imposed by the Service Occupation Tax Act with respect to his sale of service involving the incidental transfer by him of the same property.

Except as provided hereinafter in this Section, on or before the twentieth day of each calendar month, such serviceman shall file a return for the preceding calendar month in accordance with reasonable Rules and Regulations to be promulgated by the Department. Such return shall be filed on a form prescribed by the Department and shall contain such information as the Department may reasonably require. The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Occupation Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under this amendatory Act of the 102nd General Assembly.

On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.

The Department may require returns to be filed on a quarterly basis. If so required, a return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of such calendar quarter. The taxpayer shall also file a return with the Department for each of the first two months of each calendar quarter, on or before the twentieth day of the following calendar month, stating:

1. The name of the seller;

2. The address of the principal place of business from which he engages in business as a serviceman in this State;

3. The total amount of taxable receipts received by him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;

4. The amount of credit provided in Section 2d of this Act;

5. The amount of tax due;

5-5. The signature of the taxpayer; and

6. Such other reasonable information as the Department may require.

Each serviceman required or authorized to collect the tax imposed by this Act on aviation fuel transferred as an incident of a sale of service in this State during the preceding calendar month shall, instead of reporting and paying tax on aviation fuel as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, servicemen collecting tax on aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on hemp concentrate, intermediate hemp products, or hemp concentrate derived products shall file all tax returns and shall make all tax payments on hemp concentrate, intermediate hemp products, and hemp concentrate derived products by electronic means in the manner and form required by the Department.

Beginning October 1, 1993, a taxpayer who has an average monthly tax liability of $150,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an average monthly tax liability of $100,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has an annual tax liability of $200,000 or more shall make all payments required by rules of the Department by electronic funds transfer. The term "annual tax liability" shall be the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year. The term "average monthly tax liability" means the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year divided by 12. Beginning on October 1, 2002, a taxpayer who has a tax liability in the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law shall make all payments required by rules of the Department by electronic funds transfer.

Before August 1 of each year beginning in 1993, the Department shall notify all taxpayers required to make payments by electronic funds transfer. All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1.

Any taxpayer not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

All taxpayers required to make payment by electronic funds transfer and any taxpayers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

The Department shall adopt such rules as are necessary to effectuate a program of electronic funds transfer and the requirements of this Section.

If the serviceman is otherwise required to file a monthly return and if the serviceman's average monthly tax liability to the Department does not exceed $200, the Department may authorize his returns to be filed on a quarter annual basis, with the return for January, February and March of a given year being due by April 20 of such year; with the return for April, May and June of a given year being due by July 20 of such year; with the return for July, August and September of a given year being due by October 20 of such year, and with the return for October, November and December of a given year being due by January 20 of the following year.

If the serviceman is otherwise required to file a monthly or quarterly return and if the serviceman's average monthly tax liability to the Department does not exceed $50, the Department may authorize his returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which a serviceman may file his return, in the case of any serviceman who ceases to engage in a kind of business which makes him responsible for filing returns under this Act, such serviceman shall file a final return under this Act with the Department not more than 1 month after discontinuing such business.

Where a serviceman collects the tax with respect to the selling price of property which he sells and the purchaser thereafter returns such property and the serviceman refunds the selling price thereof to the purchaser, such serviceman shall also refund, to the purchaser, the tax so collected from the purchaser. When filing his return for the period in which he refunds such tax to the purchaser, the serviceman may deduct the amount of the tax so refunded by him to the purchaser from any other Service Use Tax, Service Occupation Tax, retailers' occupation tax or use tax which such serviceman may be required to pay or remit to the Department, as shown by such return, provided that the amount of the tax to be deducted shall previously have been remitted to the Department by such serviceman. If the serviceman shall not previously have remitted the amount of such tax to the Department, he shall be entitled to no deduction hereunder upon refunding such tax to the purchaser.

Any serviceman filing a return hereunder shall also include the total tax upon the selling price of tangible personal property purchased for use by him as an incident to a sale of service, and such serviceman shall remit the amount of such tax to the Department when filing such return.

If experience indicates such action to be practicable, the Department may prescribe and furnish a combination or joint return which will enable servicemen, who are required to file returns hereunder and also under the Service Occupation Tax Act, to furnish all the return information required by both Acts on the one form.

Where the serviceman has more than one business registered with the Department under separate registration hereunder, such serviceman shall not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.

Beginning January 1, 1990, each month the Department shall pay into the State and Local Tax Reform Fund, a special fund in the State Treasury, the net revenue realized for the preceding month from the 1% tax imposed under this Act.

Beginning January 1, 1990, each month the Department shall pay into the State and Local Sales Tax Reform Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on transfers of tangible personal property, other than (i) tangible personal property which is purchased outside Illinois at retail from a retailer and which is titled or registered by an agency of this State's government and (ii) aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the State and Local Sales Tax Reform Fund 100% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol.

Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.

Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.

Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, this Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.

Of the remainder of the moneys received by the Department pursuant to this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall be paid into the Build Illinois Fund; provided, however, that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the moneys received by the Department and required to be paid into the Build Illinois Fund pursuant to Section 3 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys being hereinafter called the "Tax Act Amount", and (2) the amount transferred to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall be less than the Annual Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax Act), an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and further provided, that if on the last business day of any month the sum of (1) the Tax Act Amount required to be deposited into the Build Illinois Bond Account in the Build Illinois Fund during such month and (2) the amount transferred during such month to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall have been less than 1/12 of the Annual Specified Amount, an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and, further provided, that in no event shall the payments required under the preceding proviso result in aggregate payments into the Build Illinois Fund pursuant to this clause (b) for any fiscal year in excess of the greater of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such fiscal year; and, further provided, that the amounts payable into the Build Illinois Fund under this clause (b) shall be payable only until such time as the aggregate amount on deposit under each trust indenture securing Bonds issued and outstanding pursuant to the Build Illinois Bond Act is sufficient, taking into account any future investment income, to fully provide, in accordance with such indenture, for the defeasance of or the payment of the principal of, premium, if any, and interest on the Bonds secured by such indenture and on any Bonds expected to be issued thereafter and all fees and costs payable with respect thereto, all as certified by the Director of the Bureau of the Budget (now Governor's Office of Management and Budget). If on the last business day of any month in which Bonds are outstanding pursuant to the Build Illinois Bond Act, the aggregate of the moneys deposited in the Build Illinois Bond Account in the Build Illinois Fund in such month shall be less than the amount required to be transferred in such month from the Build Illinois Bond Account to the Build Illinois Bond Retirement and Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an amount equal to such deficiency shall be immediately paid from other moneys received by the Department pursuant to the Tax Acts to the Build Illinois Fund; provided, however, that any amounts paid to the Build Illinois Fund in any fiscal year pursuant to this sentence shall be deemed to constitute payments pursuant to clause (b) of the preceding sentence and shall reduce the amount otherwise payable for such fiscal year pursuant to clause (b) of the preceding sentence. The moneys received by the Department pursuant to this Act and required to be deposited into the Build Illinois Fund are subject to the pledge, claim and charge set forth in Section 12 of the Build Illinois Bond Act.

Subject to payment of amounts into the Build Illinois Fund as provided in the preceding paragraph or in any amendment thereto hereafter enacted, the following specified monthly installment of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority provided under Section 8.25f of the State Finance Act, but not in excess of the sums designated as "Total Deposit", shall be deposited in the aggregate from collections under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into the McCormick Place Expansion Project Fund in the specified fiscal years.

Beginning July 20, 1993 and in each month of each fiscal year thereafter, one-eighth of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority for that fiscal year, less the amount deposited into the McCormick Place Expansion Project Fund by the State Treasurer in the respective month under subsection (g) of Section 13 of the Metropolitan Pier and Exposition Authority Act, plus cumulative deficiencies in the deposits required under this Section for previous months and years, shall be deposited into the McCormick Place Expansion Project Fund, until the full amount requested for the fiscal year, but not in excess of the amount specified above as "Total Deposit", has been deposited.

Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Subject to payment of amounts into the Build Illinois Fund and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property.

Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.

Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.

Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim, and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.

Fiscal Year............................Total Deposit

2024....................................$200,000,000

2025....................................$206,000,000

2026....................................$212,200,000

2027....................................$218,500,000

2028....................................$225,100,000

2029....................................$288,700,000

2030....................................$298,900,000

2031....................................$309,300,000

2032....................................$320,100,000

2033....................................$331,200,000

2034....................................$341,200,000

2035....................................$351,400,000

2036....................................$361,900,000

2037....................................$372,800,000

2038....................................$384,000,000

2039....................................$395,500,000

2040....................................$407,400,000

2041....................................$419,600,000

2042....................................$432,200,000

2043....................................$445,100,000

Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the State and Local Sales Tax Reform Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.

Of the remainder of the moneys received by the Department pursuant to this Act, 75% thereof shall be paid into the General Revenue Fund of the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.

As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Motor Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized under this Act for the second preceding month. Beginning April 1, 2000, this transfer is no longer required and shall not be made.

Net revenue realized for a month shall be the revenue collected by the State pursuant to this Act, less the amount paid out during that month as refunds to taxpayers for overpayment of liability.

(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)

Section 800-20. The Service Occupation Tax Act is amended by changing Section 9 as follows:

(35 ILCS 115/9) (from Ch. 120, par. 439.109)

Sec. 9. Each serviceman required or authorized to collect the tax herein imposed shall pay to the Department the amount of such tax at the time when he is required to file his return for the period during which such tax was collectible, less a discount of 2.1% prior to January 1, 1990, and 1.75% on and after January 1, 1990, or $5 per calendar year, whichever is greater, which is allowed to reimburse the serviceman for expenses incurred in collecting the tax, keeping records, preparing and filing returns, remitting the tax, and supplying data to the Department on request. When determining the discount allowed under this Section, servicemen shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700 this amendatory Act of the 102nd General Assembly. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for servicemen whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.

Where such tangible personal property is sold under a conditional sales contract, or under any other form of sale wherein the payment of the principal sum, or a part thereof, is extended beyond the close of the period for which the return is filed, the serviceman, in collecting the tax may collect, for each tax return period, only the tax applicable to the part of the selling price actually received during such tax return period.

Except as provided hereinafter in this Section, on or before the twentieth day of each calendar month, such serviceman shall file a return for the preceding calendar month in accordance with reasonable rules and regulations to be promulgated by the Department of Revenue. Such return shall be filed on a form prescribed by the Department and shall contain such information as the Department may reasonably require. The return shall include the gross receipts which were received during the preceding calendar month or quarter on the following items upon which tax would have been due but for the 0% rate imposed under Public Act 102-700 this amendatory Act of the 102nd General Assembly: (i) food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption); and (ii) food prepared for immediate consumption and transferred incident to a sale of service subject to this Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. The return shall also include the amount of tax that would have been due on the items listed in the previous sentence but for the 0% rate imposed under Public Act 102-700 this amendatory Act of the 102nd General Assembly.

On and after January 1, 2018, with respect to servicemen whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. Servicemen who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.

The Department may require returns to be filed on a quarterly basis. If so required, a return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of such calendar quarter. The taxpayer shall also file a return with the Department for each of the first two months of each calendar quarter, on or before the twentieth day of the following calendar month, stating:

1. The name of the seller;

2. The address of the principal place of business from which he engages in business as a serviceman in this State;

3. The total amount of taxable receipts received by him during the preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;

4. The amount of credit provided in Section 2d of this Act;

5. The amount of tax due;

5-5. The signature of the taxpayer; and

6. Such other reasonable information as the Department may require.

Each serviceman required or authorized to collect the tax herein imposed on aviation fuel acquired as an incident to the purchase of a service in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, servicemen transferring aviation fuel incident to sales of service shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Notwithstanding any other provision of this Act to the contrary, servicemen subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on hemp concentrate, intermediate hemp products, or hemp concentrate derived products shall file all tax returns and shall make all tax payments on hemp concentrate, intermediate hemp products, and hemp concentrate derived products by electronic means in the manner and form required by the Department.

Prior to October 1, 2003, and on and after September 1, 2004 a serviceman may accept a Manufacturer's Purchase Credit certification from a purchaser in satisfaction of Service Use Tax as provided in Section 3-70 of the Service Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-70 of the Service Use Tax Act. A Manufacturer's Purchase Credit certification, accepted prior to October 1, 2003 or on or after September 1, 2004 by a serviceman as provided in Section 3-70 of the Service Use Tax Act, may be used by that serviceman to satisfy Service Occupation Tax liability in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a qualifying purchase. A Manufacturer's Purchase Credit reported on any original or amended return filed under this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's Purchase Credit may be used after September 30, 2003 through August 31, 2004 to satisfy any tax liability imposed under this Act, including any audit liability.

Beginning on July 1, 2023 and through December 31, 2032, a serviceman may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Service Use Tax as provided in Section 3-72 of the Service Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-72 of the Service Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a serviceman in accordance with this paragraph may be used by that serviceman to satisfy service occupation tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, servicemen must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the serviceman and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-72 of the Service Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.

If the serviceman's average monthly tax liability to the Department does not exceed $200, the Department may authorize his returns to be filed on a quarter annual basis, with the return for January, February, and March of a given year being due by April 20 of such year; with the return for April, May, and June of a given year being due by July 20 of such year; with the return for July, August, and September of a given year being due by October 20 of such year, and with the return for October, November, and December of a given year being due by January 20 of the following year.

If the serviceman's average monthly tax liability to the Department does not exceed $50, the Department may authorize his returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which a serviceman may file his return, in the case of any serviceman who ceases to engage in a kind of business which makes him responsible for filing returns under this Act, such serviceman shall file a final return under this Act with the Department not more than one 1 month after discontinuing such business.

Beginning October 1, 1993, a taxpayer who has an average monthly tax liability of $150,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an average monthly tax liability of $100,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has an annual tax liability of $200,000 or more shall make all payments required by rules of the Department by electronic funds transfer. The term "annual tax liability" shall be the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year. The term "average monthly tax liability" means the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year divided by 12. Beginning on October 1, 2002, a taxpayer who has a tax liability in the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law shall make all payments required by rules of the Department by electronic funds transfer.

Before August 1 of each year beginning in 1993, the Department shall notify all taxpayers required to make payments by electronic funds transfer. All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1.

Any taxpayer not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

All taxpayers required to make payment by electronic funds transfer and any taxpayers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

The Department shall adopt such rules as are necessary to effectuate a program of electronic funds transfer and the requirements of this Section.

Where a serviceman collects the tax with respect to the selling price of tangible personal property which he sells and the purchaser thereafter returns such tangible personal property and the serviceman refunds the selling price thereof to the purchaser, such serviceman shall also refund, to the purchaser, the tax so collected from the purchaser. When filing his return for the period in which he refunds such tax to the purchaser, the serviceman may deduct the amount of the tax so refunded by him to the purchaser from any other Service Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or Use Tax which such serviceman may be required to pay or remit to the Department, as shown by such return, provided that the amount of the tax to be deducted shall previously have been remitted to the Department by such serviceman. If the serviceman shall not previously have remitted the amount of such tax to the Department, he shall be entitled to no deduction hereunder upon refunding such tax to the purchaser.

If experience indicates such action to be practicable, the Department may prescribe and furnish a combination or joint return which will enable servicemen, who are required to file returns hereunder and also under the Retailers' Occupation Tax Act, the Use Tax Act, or the Service Use Tax Act, to furnish all the return information required by all said Acts on the one form.

Where the serviceman has more than one business registered with the Department under separate registrations hereunder, such serviceman shall file separate returns for each registered business.

Beginning January 1, 1990, each month the Department shall pay into the Local Government Tax Fund the revenue realized for the preceding month from the 1% tax imposed under this Act.

Beginning January 1, 1990, each month the Department shall pay into the County and Mass Transit District Fund 4% of the revenue realized for the preceding month from the 6.25% general rate on sales of tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the County and Mass Transit District Fund 20% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol.

Beginning January 1, 1990, each month the Department shall pay into the Local Government Tax Fund 16% of the revenue realized for the preceding month from the 6.25% general rate on transfers of tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the Local Government Tax Fund 80% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol.

Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.

Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Retailers' Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.

Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, this Act, and the Retailers' Occupation Tax Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.

Of the remainder of the moneys received by the Department pursuant to this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall be paid into the Build Illinois Fund; provided, however, that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the moneys received by the Department and required to be paid into the Build Illinois Fund pursuant to Section 3 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys being hereinafter called the "Tax Act Amount", and (2) the amount transferred to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall be less than the Annual Specified Amount (as defined in Section 3 of the Retailers' Occupation Tax Act), an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and further provided, that if on the last business day of any month the sum of (1) the Tax Act Amount required to be deposited into the Build Illinois Account in the Build Illinois Fund during such month and (2) the amount transferred during such month to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall have been less than 1/12 of the Annual Specified Amount, an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and, further provided, that in no event shall the payments required under the preceding proviso result in aggregate payments into the Build Illinois Fund pursuant to this clause (b) for any fiscal year in excess of the greater of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such fiscal year; and, further provided, that the amounts payable into the Build Illinois Fund under this clause (b) shall be payable only until such time as the aggregate amount on deposit under each trust indenture securing Bonds issued and outstanding pursuant to the Build Illinois Bond Act is sufficient, taking into account any future investment income, to fully provide, in accordance with such indenture, for the defeasance of or the payment of the principal of, premium, if any, and interest on the Bonds secured by such indenture and on any Bonds expected to be issued thereafter and all fees and costs payable with respect thereto, all as certified by the Director of the Bureau of the Budget (now Governor's Office of Management and Budget). If on the last business day of any month in which Bonds are outstanding pursuant to the Build Illinois Bond Act, the aggregate of the moneys deposited in the Build Illinois Bond Account in the Build Illinois Fund in such month shall be less than the amount required to be transferred in such month from the Build Illinois Bond Account to the Build Illinois Bond Retirement and Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an amount equal to such deficiency shall be immediately paid from other moneys received by the Department pursuant to the Tax Acts to the Build Illinois Fund; provided, however, that any amounts paid to the Build Illinois Fund in any fiscal year pursuant to this sentence shall be deemed to constitute payments pursuant to clause (b) of the preceding sentence and shall reduce the amount otherwise payable for such fiscal year pursuant to clause (b) of the preceding sentence. The moneys received by the Department pursuant to this Act and required to be deposited into the Build Illinois Fund are subject to the pledge, claim and charge set forth in Section 12 of the Build Illinois Bond Act.

Subject to payment of amounts into the Build Illinois Fund as provided in the preceding paragraph or in any amendment thereto hereafter enacted, the following specified monthly installment of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority provided under Section 8.25f of the State Finance Act, but not in excess of the sums designated as "Total Deposit", shall be deposited in the aggregate from collections under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into the McCormick Place Expansion Project Fund in the specified fiscal years.

Beginning July 20, 1993 and in each month of each fiscal year thereafter, one-eighth of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority for that fiscal year, less the amount deposited into the McCormick Place Expansion Project Fund by the State Treasurer in the respective month under subsection (g) of Section 13 of the Metropolitan Pier and Exposition Authority Act, plus cumulative deficiencies in the deposits required under this Section for previous months and years, shall be deposited into the McCormick Place Expansion Project Fund, until the full amount requested for the fiscal year, but not in excess of the amount specified above as "Total Deposit", has been deposited.

Subject to payment of amounts into the Capital Projects Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Subject to payment of amounts into the Build Illinois Fund and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property.

Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.

Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.

Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.

Fiscal Year............................Total Deposit

2024....................................$200,000,000

2025....................................$206,000,000

2026....................................$212,200,000

2027....................................$218,500,000

2028....................................$225,100,000

2029....................................$288,700,000

2030....................................$298,900,000

2031....................................$309,300,000

2032....................................$320,100,000

2033....................................$331,200,000

2034....................................$341,200,000

2035....................................$351,400,000

2036....................................$361,900,000

2037....................................$372,800,000

2038....................................$384,000,000

2039....................................$395,500,000

2040....................................$407,400,000

2041....................................$419,600,000

2042....................................$432,200,000

2043....................................$445,100,000

Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.

Of the remainder of the moneys received by the Department pursuant to this Act, 75% shall be paid into the General Revenue Fund of the State treasury Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.

The Department may, upon separate written notice to a taxpayer, require the taxpayer to prepare and file with the Department on a form prescribed by the Department within not less than 60 days after receipt of the notice an annual information return for the tax year specified in the notice. Such annual return to the Department shall include a statement of gross receipts as shown by the taxpayer's last federal Federal income tax return. If the total receipts of the business as reported in the federal Federal income tax return do not agree with the gross receipts reported to the Department of Revenue for the same period, the taxpayer shall attach to his annual return a schedule showing a reconciliation of the 2 amounts and the reasons for the difference. The taxpayer's annual return to the Department shall also disclose the cost of goods sold by the taxpayer during the year covered by such return, opening and closing inventories of such goods for such year, cost of goods used from stock or taken from stock and given away by the taxpayer during such year, pay roll information of the taxpayer's business during such year and any additional reasonable information which the Department deems would be helpful in determining the accuracy of the monthly, quarterly or annual returns filed by such taxpayer as hereinbefore provided for in this Section.

If the annual information return required by this Section is not filed when and as required, the taxpayer shall be liable as follows:

(i) Until January 1, 1994, the taxpayer shall be liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.

(ii) On and after January 1, 1994, the taxpayer shall be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.

The chief executive officer, proprietor, owner, or highest ranking manager shall sign the annual return to certify the accuracy of the information contained therein. Any person who willfully signs the annual return containing false or inaccurate information shall be guilty of perjury and punished accordingly. The annual return form prescribed by the Department shall include a warning that the person signing the return may be liable for perjury.

The foregoing portion of this Section concerning the filing of an annual information return shall not apply to a serviceman who is not required to file an income tax return with the United States Government.

As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Motor Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized under this Act for the second preceding month. Beginning April 1, 2000, this transfer is no longer required and shall not be made.

Net revenue realized for a month shall be the revenue collected by the State pursuant to this Act, less the amount paid out during that month as refunds to taxpayers for overpayment of liability.

For greater simplicity of administration, it shall be permissible for manufacturers, importers and wholesalers whose products are sold by numerous servicemen in Illinois, and who wish to do so, to assume the responsibility for accounting and paying to the Department all tax accruing under this Act with respect to such sales, if the servicemen who are affected do not make written objection to the Department to this arrangement.

(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; 103-363, eff. 7-28-23; revised 9-25-23.)

Section 800-25. The Retailers' Occupation Tax Act is amended by changing Section 3 as follows:

(35 ILCS 120/3) (from Ch. 120, par. 442)

Sec. 3. Except as provided in this Section, on or before the twentieth day of each calendar month, every person engaged in the business of selling tangible personal property at retail in this State during the preceding calendar month shall file a return with the Department, stating:

1. The name of the seller;

2. His residence address and the address of his principal place of business and the address of the principal place of business (if that is a different address) from which he engages in the business of selling tangible personal property at retail in this State;

3. Total amount of receipts received by him during the preceding calendar month or quarter, as the case may be, from sales of tangible personal property, and from services furnished, by him during such preceding calendar month or quarter;

4. Total amount received by him during the preceding calendar month or quarter on charge and time sales of tangible personal property, and from services furnished, by him prior to the month or quarter for which the return is filed;

5. Deductions allowed by law;

6. Gross receipts which were received by him during the preceding calendar month or quarter and upon the basis of which the tax is imposed, including gross receipts on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) which were received during the preceding calendar month or quarter and upon which tax would have been due but for the 0% rate imposed under Public Act 102-700;

7. The amount of credit provided in Section 2d of this Act;

8. The amount of tax due, including the amount of tax that would have been due on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) but for the 0% rate imposed under Public Act 102-700;

9. The signature of the taxpayer; and

10. Such other reasonable information as the Department may require.

On and after January 1, 2018, except for returns required to be filed prior to January 1, 2023 for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act shall be filed electronically. On and after January 1, 2023, with respect to retailers whose annual gross receipts average $20,000 or more, all returns required to be filed pursuant to this Act, including, but not limited to, returns for motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, shall be filed electronically. Retailers who demonstrate that they do not have access to the Internet or demonstrate hardship in filing electronically may petition the Department to waive the electronic filing requirement.

If a taxpayer fails to sign a return within 30 days after the proper notice and demand for signature by the Department, the return shall be considered valid and any amount shown to be due on the return shall be deemed assessed.

Each return shall be accompanied by the statement of prepaid tax issued pursuant to Section 2e for which credit is claimed.

Prior to October 1, 2003, and on and after September 1, 2004, a retailer may accept a Manufacturer's Purchase Credit certification from a purchaser in satisfaction of Use Tax as provided in Section 3-85 of the Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit certification, accepted by a retailer prior to October 1, 2003 and on and after September 1, 2004 as provided in Section 3-85 of the Use Tax Act, may be used by that retailer to satisfy Retailers' Occupation Tax liability in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a qualifying purchase. A Manufacturer's Purchase Credit reported on any original or amended return filed under this Act after October 20, 2003 for reporting periods prior to September 1, 2004 shall be disallowed. Manufacturer's Purchase Credit reported on annual returns due on or after January 1, 2005 will be disallowed for periods prior to September 1, 2004. No Manufacturer's Purchase Credit may be used after September 30, 2003 through August 31, 2004 to satisfy any tax liability imposed under this Act, including any audit liability.

Beginning on July 1, 2023 and through December 31, 2032, a retailer may accept a Sustainable Aviation Fuel Purchase Credit certification from an air common carrier-purchaser in satisfaction of Use Tax on aviation fuel as provided in Section 3-87 of the Use Tax Act if the purchaser provides the appropriate documentation as required by Section 3-87 of the Use Tax Act. A Sustainable Aviation Fuel Purchase Credit certification accepted by a retailer in accordance with this paragraph may be used by that retailer to satisfy Retailers' Occupation Tax liability (but not in satisfaction of penalty or interest) in the amount claimed in the certification, not to exceed 6.25% of the receipts subject to tax from a sale of aviation fuel. In addition, for a sale of aviation fuel to qualify to earn the Sustainable Aviation Fuel Purchase Credit, retailers must retain in their books and records a certification from the producer of the aviation fuel that the aviation fuel sold by the retailer and for which a sustainable aviation fuel purchase credit was earned meets the definition of sustainable aviation fuel under Section 3-87 of the Use Tax Act. The documentation must include detail sufficient for the Department to determine the number of gallons of sustainable aviation fuel sold.

The Department may require returns to be filed on a quarterly basis. If so required, a return for each calendar quarter shall be filed on or before the twentieth day of the calendar month following the end of such calendar quarter. The taxpayer shall also file a return with the Department for each of the first 2 two months of each calendar quarter, on or before the twentieth day of the following calendar month, stating:

1. The name of the seller;

2. The address of the principal place of business from which he engages in the business of selling tangible personal property at retail in this State;

3. The total amount of taxable receipts received by him during the preceding calendar month from sales of tangible personal property by him during such preceding calendar month, including receipts from charge and time sales, but less all deductions allowed by law;

4. The amount of credit provided in Section 2d of this Act;

5. The amount of tax due; and

6. Such other reasonable information as the Department may require.

Every person engaged in the business of selling aviation fuel at retail in this State during the preceding calendar month shall, instead of reporting and paying tax as otherwise required by this Section, report and pay such tax on a separate aviation fuel tax return. The requirements related to the return shall be as otherwise provided in this Section. Notwithstanding any other provisions of this Act to the contrary, retailers selling aviation fuel shall file all aviation fuel tax returns and shall make all aviation fuel tax payments by electronic means in the manner and form required by the Department. For purposes of this Section, "aviation fuel" means jet fuel and aviation gasoline.

Beginning on October 1, 2003, any person who is not a licensed distributor, importing distributor, or manufacturer, as defined in the Liquor Control Act of 1934, but is engaged in the business of selling, at retail, alcoholic liquor shall file a statement with the Department of Revenue, in a format and at a time prescribed by the Department, showing the total amount paid for alcoholic liquor purchased during the preceding month and such other information as is reasonably required by the Department. The Department may adopt rules to require that this statement be filed in an electronic or telephonic format. Such rules may provide for exceptions from the filing requirements of this paragraph. For the purposes of this paragraph, the term "alcoholic liquor" shall have the meaning prescribed in the Liquor Control Act of 1934.

Beginning on October 1, 2003, every distributor, importing distributor, and manufacturer of alcoholic liquor as defined in the Liquor Control Act of 1934, shall file a statement with the Department of Revenue, no later than the 10th day of the month for the preceding month during which transactions occurred, by electronic means, showing the total amount of gross receipts from the sale of alcoholic liquor sold or distributed during the preceding month to purchasers; identifying the purchaser to whom it was sold or distributed; the purchaser's tax registration number; and such other information reasonably required by the Department. A distributor, importing distributor, or manufacturer of alcoholic liquor must personally deliver, mail, or provide by electronic means to each retailer listed on the monthly statement a report containing a cumulative total of that distributor's, importing distributor's, or manufacturer's total sales of alcoholic liquor to that retailer no later than the 10th day of the month for the preceding month during which the transaction occurred. The distributor, importing distributor, or manufacturer shall notify the retailer as to the method by which the distributor, importing distributor, or manufacturer will provide the sales information. If the retailer is unable to receive the sales information by electronic means, the distributor, importing distributor, or manufacturer shall furnish the sales information by personal delivery or by mail. For purposes of this paragraph, the term "electronic means" includes, but is not limited to, the use of a secure Internet website, e-mail, or facsimile.

If a total amount of less than $1 is payable, refundable or creditable, such amount shall be disregarded if it is less than 50 cents and shall be increased to $1 if it is 50 cents or more.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on cannabis shall file all cannabis tax returns and shall make all cannabis tax payments by electronic means in the manner and form required by the Department.

Notwithstanding any other provision of this Act to the contrary, retailers subject to tax on hemp concentrate, intermediate hemp products, or hemp concentrate derived products shall file all tax returns and shall make all tax payments on hemp concentrate, intermediate hemp products, and hemp concentrate derived products by electronic means in the manner and form required by the Department.

Beginning October 1, 1993, a taxpayer who has an average monthly tax liability of $150,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1994, a taxpayer who has an average monthly tax liability of $100,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 1995, a taxpayer who has an average monthly tax liability of $50,000 or more shall make all payments required by rules of the Department by electronic funds transfer. Beginning October 1, 2000, a taxpayer who has an annual tax liability of $200,000 or more shall make all payments required by rules of the Department by electronic funds transfer. The term "annual tax liability" shall be the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year. The term "average monthly tax liability" shall be the sum of the taxpayer's liabilities under this Act, and under all other State and local occupation and use tax laws administered by the Department, for the immediately preceding calendar year divided by 12. Beginning on October 1, 2002, a taxpayer who has a tax liability in the amount set forth in subsection (b) of Section 2505-210 of the Department of Revenue Law shall make all payments required by rules of the Department by electronic funds transfer.

Before August 1 of each year beginning in 1993, the Department shall notify all taxpayers required to make payments by electronic funds transfer. All taxpayers required to make payments by electronic funds transfer shall make those payments for a minimum of one year beginning on October 1.

Any taxpayer not required to make payments by electronic funds transfer may make payments by electronic funds transfer with the permission of the Department.

All taxpayers required to make payment by electronic funds transfer and any taxpayers authorized to voluntarily make payments by electronic funds transfer shall make those payments in the manner authorized by the Department.

The Department shall adopt such rules as are necessary to effectuate a program of electronic funds transfer and the requirements of this Section.

Any amount which is required to be shown or reported on any return or other document under this Act shall, if such amount is not a whole-dollar amount, be increased to the nearest whole-dollar amount in any case where the fractional part of a dollar is 50 cents or more, and decreased to the nearest whole-dollar amount where the fractional part of a dollar is less than 50 cents.

If the retailer is otherwise required to file a monthly return and if the retailer's average monthly tax liability to the Department does not exceed $200, the Department may authorize his returns to be filed on a quarter annual basis, with the return for January, February, and March of a given year being due by April 20 of such year; with the return for April, May, and June of a given year being due by July 20 of such year; with the return for July, August, and September of a given year being due by October 20 of such year, and with the return for October, November, and December of a given year being due by January 20 of the following year.

If the retailer is otherwise required to file a monthly or quarterly return and if the retailer's average monthly tax liability with the Department does not exceed $50, the Department may authorize his returns to be filed on an annual basis, with the return for a given year being due by January 20 of the following year.

Such quarter annual and annual returns, as to form and substance, shall be subject to the same requirements as monthly returns.

Notwithstanding any other provision in this Act concerning the time within which a retailer may file his return, in the case of any retailer who ceases to engage in a kind of business which makes him responsible for filing returns under this Act, such retailer shall file a final return under this Act with the Department not more than one month after discontinuing such business.

Where the same person has more than one business registered with the Department under separate registrations under this Act, such person may not file each return that is due as a single return covering all such registered businesses, but shall file separate returns for each such registered business.

In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, except as otherwise provided in this Section, every retailer selling this kind of tangible personal property shall file, with the Department, upon a form to be prescribed and supplied by the Department, a separate return for each such item of tangible personal property which the retailer sells, except that if, in the same transaction, (i) a retailer of aircraft, watercraft, motor vehicles, or trailers transfers more than one aircraft, watercraft, motor vehicle, or trailer to another aircraft, watercraft, motor vehicle retailer, or trailer retailer for the purpose of resale or (ii) a retailer of aircraft, watercraft, motor vehicles, or trailers transfers more than one aircraft, watercraft, motor vehicle, or trailer to a purchaser for use as a qualifying rolling stock as provided in Section 2-5 of this Act, then that seller may report the transfer of all aircraft, watercraft, motor vehicles, or trailers involved in that transaction to the Department on the same uniform invoice-transaction reporting return form. For purposes of this Section, "watercraft" means a Class 2, Class 3, or Class 4 watercraft as defined in Section 3-2 of the Boat Registration and Safety Act, a personal watercraft, or any boat equipped with an inboard motor.

In addition, with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every person who is engaged in the business of leasing or renting such items and who, in connection with such business, sells any such item to a retailer for the purpose of resale is, notwithstanding any other provision of this Section to the contrary, authorized to meet the return-filing requirement of this Act by reporting the transfer of all the aircraft, watercraft, motor vehicles, or trailers transferred for resale during a month to the Department on the same uniform invoice-transaction reporting return form on or before the 20th of the month following the month in which the transfer takes place. Notwithstanding any other provision of this Act to the contrary, all returns filed under this paragraph must be filed by electronic means in the manner and form as required by the Department.

Any retailer who sells only motor vehicles, watercraft, aircraft, or trailers that are required to be registered with an agency of this State, so that all retailers' occupation tax liability is required to be reported, and is reported, on such transaction reporting returns and who is not otherwise required to file monthly or quarterly returns, need not file monthly or quarterly returns. However, those retailers shall be required to file returns on an annual basis.

The transaction reporting return, in the case of motor vehicles or trailers that are required to be registered with an agency of this State, shall be the same document as the Uniform Invoice referred to in Section 5-402 of the Illinois Vehicle Code and must show the name and address of the seller; the name and address of the purchaser; the amount of the selling price including the amount allowed by the retailer for traded-in property, if any; the amount allowed by the retailer for the traded-in tangible personal property, if any, to the extent to which Section 1 of this Act allows an exemption for the value of traded-in property; the balance payable after deducting such trade-in allowance from the total selling price; the amount of tax due from the retailer with respect to such transaction; the amount of tax collected from the purchaser by the retailer on such transaction (or satisfactory evidence that such tax is not due in that particular instance, if that is claimed to be the fact); the place and date of the sale; a sufficient identification of the property sold; such other information as is required in Section 5-402 of the Illinois Vehicle Code, and such other information as the Department may reasonably require.

The transaction reporting return in the case of watercraft or aircraft must show the name and address of the seller; the name and address of the purchaser; the amount of the selling price including the amount allowed by the retailer for traded-in property, if any; the amount allowed by the retailer for the traded-in tangible personal property, if any, to the extent to which Section 1 of this Act allows an exemption for the value of traded-in property; the balance payable after deducting such trade-in allowance from the total selling price; the amount of tax due from the retailer with respect to such transaction; the amount of tax collected from the purchaser by the retailer on such transaction (or satisfactory evidence that such tax is not due in that particular instance, if that is claimed to be the fact); the place and date of the sale, a sufficient identification of the property sold, and such other information as the Department may reasonably require.

Such transaction reporting return shall be filed not later than 20 days after the day of delivery of the item that is being sold, but may be filed by the retailer at any time sooner than that if he chooses to do so. The transaction reporting return and tax remittance or proof of exemption from the Illinois use tax may be transmitted to the Department by way of the State agency with which, or State officer with whom the tangible personal property must be titled or registered (if titling or registration is required) if the Department and such agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

With each such transaction reporting return, the retailer shall remit the proper amount of tax due (or shall submit satisfactory evidence that the sale is not taxable if that is the case), to the Department or its agents, whereupon the Department shall issue, in the purchaser's name, a use tax receipt (or a certificate of exemption if the Department is satisfied that the particular sale is tax exempt) which such purchaser may submit to the agency with which, or State officer with whom, he must title or register the tangible personal property that is involved (if titling or registration is required) in support of such purchaser's application for an Illinois certificate or other evidence of title or registration to such tangible personal property.

No retailer's failure or refusal to remit tax under this Act precludes a user, who has paid the proper tax to the retailer, from obtaining his certificate of title or other evidence of title or registration (if titling or registration is required) upon satisfying the Department that such user has paid the proper tax (if tax is due) to the retailer. The Department shall adopt appropriate rules to carry out the mandate of this paragraph.

If the user who would otherwise pay tax to the retailer wants the transaction reporting return filed and the payment of the tax or proof of exemption made to the Department before the retailer is willing to take these actions and such user has not paid the tax to the retailer, such user may certify to the fact of such delay by the retailer and may (upon the Department being satisfied of the truth of such certification) transmit the information required by the transaction reporting return and the remittance for tax or proof of exemption directly to the Department and obtain his tax receipt or exemption determination, in which event the transaction reporting return and tax remittance (if a tax payment was required) shall be credited by the Department to the proper retailer's account with the Department, but without the 2.1% or 1.75% discount provided for in this Section being allowed. When the user pays the tax directly to the Department, he shall pay the tax in the same amount and in the same form in which it would be remitted if the tax had been remitted to the Department by the retailer.

Refunds made by the seller during the preceding return period to purchasers, on account of tangible personal property returned to the seller, shall be allowed as a deduction under subdivision 5 of his monthly or quarterly return, as the case may be, in case the seller had theretofore included the receipts from the sale of such tangible personal property in a return filed by him and had paid the tax imposed by this Act with respect to such receipts.

Where the seller is a corporation, the return filed on behalf of such corporation shall be signed by the president, vice-president, secretary, or treasurer or by the properly accredited agent of such corporation.

Where the seller is a limited liability company, the return filed on behalf of the limited liability company shall be signed by a manager, member, or properly accredited agent of the limited liability company.

Except as provided in this Section, the retailer filing the return under this Section shall, at the time of filing such return, pay to the Department the amount of tax imposed by this Act less a discount of 2.1% prior to January 1, 1990 and 1.75% on and after January 1, 1990, or $5 per calendar year, whichever is greater, which is allowed to reimburse the retailer for the expenses incurred in keeping records, preparing and filing returns, remitting the tax and supplying data to the Department on request. On and after January 1, 2021, a certified service provider, as defined in the Leveling the Playing Field for Illinois Retail Act, filing the return under this Section on behalf of a remote retailer shall, at the time of such return, pay to the Department the amount of tax imposed by this Act less a discount of 1.75%. A remote retailer using a certified service provider to file a return on its behalf, as provided in the Leveling the Playing Field for Illinois Retail Act, is not eligible for the discount. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 1% rate but for the 0% rate imposed under Public Act 102-700. When determining the discount allowed under this Section, retailers shall include the amount of tax that would have been due at the 6.25% rate but for the 1.25% rate imposed on sales tax holiday items under Public Act 102-700. The discount under this Section is not allowed for the 1.25% portion of taxes paid on aviation fuel that is subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to Section 2d of this Act shall be included in the amount on which such 2.1% or 1.75% discount is computed. In the case of retailers who report and pay the tax on a transaction by transaction basis, as provided in this Section, such discount shall be taken with each such tax remittance instead of when such retailer files his periodic return. The discount allowed under this Section is allowed only for returns that are filed in the manner required by this Act. The Department may disallow the discount for retailers whose certificate of registration is revoked at the time the return is filed, but only if the Department's decision to revoke the certificate of registration has become final.

Before October 1, 2000, if the taxpayer's average monthly tax liability to the Department under this Act, the Use Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax to be remitted in accordance with Section 2d of this Act, was $10,000 or more during the preceding 4 complete calendar quarters, he shall file a return with the Department each month by the 20th day of the month next following the month during which such tax liability is incurred and shall make payments to the Department on or before the 7th, 15th, 22nd and last day of the month during which such liability is incurred. On and after October 1, 2000, if the taxpayer's average monthly tax liability to the Department under this Act, the Use Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act, excluding any liability for prepaid sales tax to be remitted in accordance with Section 2d of this Act, was $20,000 or more during the preceding 4 complete calendar quarters, he shall file a return with the Department each month by the 20th day of the month next following the month during which such tax liability is incurred and shall make payment to the Department on or before the 7th, 15th, 22nd and last day of the month during which such liability is incurred. If the month during which such tax liability is incurred began prior to January 1, 1985, each payment shall be in an amount equal to 1/4 of the taxpayer's actual liability for the month or an amount set by the Department not to exceed 1/4 of the average monthly liability of the taxpayer to the Department for the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability in such 4 quarter period). If the month during which such tax liability is incurred begins on or after January 1, 1985 and prior to January 1, 1987, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 27.5% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1987 and prior to January 1, 1988, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 26.25% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1988, and prior to January 1, 1989, or begins on or after January 1, 1996, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's liability for the same calendar month of the preceding year. If the month during which such tax liability is incurred begins on or after January 1, 1989, and prior to January 1, 1996, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's liability for the same calendar month of the preceding year or 100% of the taxpayer's actual liability for the quarter monthly reporting period. The amount of such quarter monthly payments shall be credited against the final tax liability of the taxpayer's return for that month. Before October 1, 2000, once applicable, the requirement of the making of quarter monthly payments to the Department by taxpayers having an average monthly tax liability of $10,000 or more as determined in the manner provided above shall continue until such taxpayer's average monthly liability to the Department during the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability) is less than $9,000, or until such taxpayer's average monthly liability to the Department as computed for each calendar quarter of the 4 preceding complete calendar quarter period is less than $10,000. However, if a taxpayer can show the Department that a substantial change in the taxpayer's business has occurred which causes the taxpayer to anticipate that his average monthly tax liability for the reasonably foreseeable future will fall below the $10,000 threshold stated above, then such taxpayer may petition the Department for a change in such taxpayer's reporting status. On and after October 1, 2000, once applicable, the requirement of the making of quarter monthly payments to the Department by taxpayers having an average monthly tax liability of $20,000 or more as determined in the manner provided above shall continue until such taxpayer's average monthly liability to the Department during the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability) is less than $19,000 or until such taxpayer's average monthly liability to the Department as computed for each calendar quarter of the 4 preceding complete calendar quarter period is less than $20,000. However, if a taxpayer can show the Department that a substantial change in the taxpayer's business has occurred which causes the taxpayer to anticipate that his average monthly tax liability for the reasonably foreseeable future will fall below the $20,000 threshold stated above, then such taxpayer may petition the Department for a change in such taxpayer's reporting status. The Department shall change such taxpayer's reporting status unless it finds that such change is seasonal in nature and not likely to be long term. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 0% in Public Act 102-700 on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, and food that has been prepared for immediate consumption) had not occurred. For quarter monthly payments due under this paragraph on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 0% in Public Act 102-700 had not occurred. Quarter monthly payment status shall be determined under this paragraph as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. For quarter monthly payments due on or after July 1, 2023 and through June 30, 2024, "25% of the taxpayer's liability for the same calendar month of the preceding year" shall be determined as if the rate reduction to 1.25% in Public Act 102-700 on sales tax holiday items had not occurred. If any such quarter monthly payment is not paid at the time or in the amount required by this Section, then the taxpayer shall be liable for penalties and interest on the difference between the minimum amount due as a payment and the amount of such quarter monthly payment actually and timely paid, except insofar as the taxpayer has previously made payments for that month to the Department in excess of the minimum payments previously due as provided in this Section. The Department shall make reasonable rules and regulations to govern the quarter monthly payment amount and quarter monthly payment dates for taxpayers who file on other than a calendar monthly basis.

The provisions of this paragraph apply before October 1, 2001. Without regard to whether a taxpayer is required to make quarter monthly payments as specified above, any taxpayer who is required by Section 2d of this Act to collect and remit prepaid taxes and has collected prepaid taxes which average in excess of $25,000 per month during the preceding 2 complete calendar quarters, shall file a return with the Department as required by Section 2f and shall make payments to the Department on or before the 7th, 15th, 22nd and last day of the month during which such liability is incurred. If the month during which such tax liability is incurred began prior to September 1, 1985 (the effective date of Public Act 84-221), each payment shall be in an amount not less than 22.5% of the taxpayer's actual liability under Section 2d. If the month during which such tax liability is incurred begins on or after January 1, 1986, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 27.5% of the taxpayer's liability for the same calendar month of the preceding calendar year. If the month during which such tax liability is incurred begins on or after January 1, 1987, each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 26.25% of the taxpayer's liability for the same calendar month of the preceding year. The amount of such quarter monthly payments shall be credited against the final tax liability of the taxpayer's return for that month filed under this Section or Section 2f, as the case may be. Once applicable, the requirement of the making of quarter monthly payments to the Department pursuant to this paragraph shall continue until such taxpayer's average monthly prepaid tax collections during the preceding 2 complete calendar quarters is $25,000 or less. If any such quarter monthly payment is not paid at the time or in the amount required, the taxpayer shall be liable for penalties and interest on such difference, except insofar as the taxpayer has previously made payments for that month in excess of the minimum payments previously due.

The provisions of this paragraph apply on and after October 1, 2001. Without regard to whether a taxpayer is required to make quarter monthly payments as specified above, any taxpayer who is required by Section 2d of this Act to collect and remit prepaid taxes and has collected prepaid taxes that average in excess of $20,000 per month during the preceding 4 complete calendar quarters shall file a return with the Department as required by Section 2f and shall make payments to the Department on or before the 7th, 15th, 22nd, and last day of the month during which the liability is incurred. Each payment shall be in an amount equal to 22.5% of the taxpayer's actual liability for the month or 25% of the taxpayer's liability for the same calendar month of the preceding year. The amount of the quarter monthly payments shall be credited against the final tax liability of the taxpayer's return for that month filed under this Section or Section 2f, as the case may be. Once applicable, the requirement of the making of quarter monthly payments to the Department pursuant to this paragraph shall continue until the taxpayer's average monthly prepaid tax collections during the preceding 4 complete calendar quarters (excluding the month of highest liability and the month of lowest liability) is less than $19,000 or until such taxpayer's average monthly liability to the Department as computed for each calendar quarter of the 4 preceding complete calendar quarters is less than $20,000. If any such quarter monthly payment is not paid at the time or in the amount required, the taxpayer shall be liable for penalties and interest on such difference, except insofar as the taxpayer has previously made payments for that month in excess of the minimum payments previously due.

If any payment provided for in this Section exceeds the taxpayer's liabilities under this Act, the Use Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act, as shown on an original monthly return, the Department shall, if requested by the taxpayer, issue to the taxpayer a credit memorandum no later than 30 days after the date of payment. The credit evidenced by such credit memorandum may be assigned by the taxpayer to a similar taxpayer under this Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act, in accordance with reasonable rules and regulations to be prescribed by the Department. If no such request is made, the taxpayer may credit such excess payment against tax liability subsequently to be remitted to the Department under this Act, the Use Tax Act, the Service Occupation Tax Act, or the Service Use Tax Act, in accordance with reasonable rules and regulations prescribed by the Department. If the Department subsequently determined that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or 1.75% of the difference between the credit taken and that actually due, and that taxpayer shall be liable for penalties and interest on such difference.

If a retailer of motor fuel is entitled to a credit under Section 2d of this Act which exceeds the taxpayer's liability to the Department under this Act for the month for which the taxpayer is filing a return, the Department shall issue the taxpayer a credit memorandum for the excess.

Beginning January 1, 1990, each month the Department shall pay into the Local Government Tax Fund, a special fund in the State treasury which is hereby created, the net revenue realized for the preceding month from the 1% tax imposed under this Act.

Beginning January 1, 1990, each month the Department shall pay into the County and Mass Transit District Fund, a special fund in the State treasury which is hereby created, 4% of the net revenue realized for the preceding month from the 6.25% general rate other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the County and Mass Transit District Fund 20% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 20% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the County and Mass Transit District Fund.

Beginning January 1, 1990, each month the Department shall pay into the Local Government Tax Fund 16% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property other than aviation fuel sold on or after December 1, 2019. This exception for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

For aviation fuel sold on or after December 1, 2019, each month the Department shall pay into the State Aviation Program Fund 20% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of aviation fuel, less an amount estimated by the Department to be required for refunds of the 20% portion of the tax on aviation fuel under this Act, which amount shall be deposited into the Aviation Fuel Sales Tax Refund Fund. The Department shall only pay moneys into the State Aviation Program Fund and the Aviation Fuel Sales Tax Refund Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Beginning August 1, 2000, each month the Department shall pay into the Local Government Tax Fund 80% of the net revenue realized for the preceding month from the 1.25% rate on the selling price of motor fuel and gasohol. If, in any month, the tax on sales tax holiday items, as defined in Section 2-8, is imposed at the rate of 1.25%, then the Department shall pay 80% of the net revenue realized for that month from the 1.25% rate on the selling price of sales tax holiday items into the Local Government Tax Fund.

Beginning October 1, 2009, each month the Department shall pay into the Capital Projects Fund an amount that is equal to an amount estimated by the Department to represent 80% of the net revenue realized for the preceding month from the sale of candy, grooming and hygiene products, and soft drinks that had been taxed at a rate of 1% prior to September 1, 2009 but that are now taxed at 6.25%.

Beginning July 1, 2011, each month the Department shall pay into the Clean Air Act Permit Fund 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of sorbents used in Illinois in the process of sorbent injection as used to comply with the Environmental Protection Act or the federal Clean Air Act, but the total payment into the Clean Air Act Permit Fund under this Act and the Use Tax Act shall not exceed $2,000,000 in any fiscal year.

Beginning July 1, 2013, each month the Department shall pay into the Underground Storage Tank Fund from the proceeds collected under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act an amount equal to the average monthly deficit in the Underground Storage Tank Fund during the prior year, as certified annually by the Illinois Environmental Protection Agency, but the total payment into the Underground Storage Tank Fund under this Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act shall not exceed $18,000,000 in any State fiscal year. As used in this paragraph, the "average monthly deficit" shall be equal to the difference between the average monthly claims for payment by the fund and the average monthly revenues deposited into the fund, excluding payments made pursuant to this paragraph.

Beginning July 1, 2015, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, each month the Department shall deposit $500,000 into the State Crime Laboratory Fund.

Of the remainder of the moneys received by the Department pursuant to this Act, (a) 1.75% thereof shall be paid into the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on and after July 1, 1989, 3.8% thereof shall be paid into the Build Illinois Fund; provided, however, that if in any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, as the case may be, of the moneys received by the Department and required to be paid into the Build Illinois Fund pursuant to this Act, Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, and Section 9 of the Service Occupation Tax Act, such Acts being hereinafter called the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case may be, of moneys being hereinafter called the "Tax Act Amount", and (2) the amount transferred to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall be less than the Annual Specified Amount (as hereinafter defined), an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; the "Annual Specified Amount" means the amounts specified below for fiscal years 1986 through 1993: and means the Certified Annual Debt Service Requirement (as defined in Section 13 of the Build Illinois Bond Act) or the Tax Act Amount, whichever is greater, for fiscal year 1994 and each fiscal year thereafter; and further provided, that if on the last business day of any month the sum of (1) the Tax Act Amount required to be deposited into the Build Illinois Bond Account in the Build Illinois Fund during such month and (2) the amount transferred to the Build Illinois Fund from the State and Local Sales Tax Reform Fund shall have been less than 1/12 of the Annual Specified Amount, an amount equal to the difference shall be immediately paid into the Build Illinois Fund from other moneys received by the Department pursuant to the Tax Acts; and, further provided, that in no event shall the payments required under the preceding proviso result in aggregate payments into the Build Illinois Fund pursuant to this clause (b) for any fiscal year in excess of the greater of (i) the Tax Act Amount or (ii) the Annual Specified Amount for such fiscal year. The amounts payable into the Build Illinois Fund under clause (b) of the first sentence in this paragraph shall be payable only until such time as the aggregate amount on deposit under each trust indenture securing Bonds issued and outstanding pursuant to the Build Illinois Bond Act is sufficient, taking into account any future investment income, to fully provide, in accordance with such indenture, for the defeasance of or the payment of the principal of, premium, if any, and interest on the Bonds secured by such indenture and on any Bonds expected to be issued thereafter and all fees and costs payable with respect thereto, all as certified by the Director of the Bureau of the Budget (now Governor's Office of Management and Budget). If on the last business day of any month in which Bonds are outstanding pursuant to the Build Illinois Bond Act, the aggregate of moneys deposited in the Build Illinois Bond Account in the Build Illinois Fund in such month shall be less than the amount required to be transferred in such month from the Build Illinois Bond Account to the Build Illinois Bond Retirement and Interest Fund pursuant to Section 13 of the Build Illinois Bond Act, an amount equal to such deficiency shall be immediately paid from other moneys received by the Department pursuant to the Tax Acts to the Build Illinois Fund; provided, however, that any amounts paid to the Build Illinois Fund in any fiscal year pursuant to this sentence shall be deemed to constitute payments pursuant to clause (b) of the first sentence of this paragraph and shall reduce the amount otherwise payable for such fiscal year pursuant to that clause (b). The moneys received by the Department pursuant to this Act and required to be deposited into the Build Illinois Fund are subject to the pledge, claim and charge set forth in Section 12 of the Build Illinois Bond Act.

Subject to payment of amounts into the Build Illinois Fund as provided in the preceding paragraph or in any amendment thereto hereafter enacted, the following specified monthly installment of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority provided under Section 8.25f of the State Finance Act, but not in excess of sums designated as "Total Deposit", shall be deposited in the aggregate from collections under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act into the McCormick Place Expansion Project Fund in the specified fiscal years.

Beginning July 20, 1993 and in each month of each fiscal year thereafter, one-eighth of the amount requested in the certificate of the Chairman of the Metropolitan Pier and Exposition Authority for that fiscal year, less the amount deposited into the McCormick Place Expansion Project Fund by the State Treasurer in the respective month under subsection (g) of Section 13 of the Metropolitan Pier and Exposition Authority Act, plus cumulative deficiencies in the deposits required under this Section for previous months and years, shall be deposited into the McCormick Place Expansion Project Fund, until the full amount requested for the fiscal year, but not in excess of the amount specified above as "Total Deposit", has been deposited.

Subject to payment of amounts into the Capital Projects Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, for aviation fuel sold on or after December 1, 2019, the Department shall each month deposit into the Aviation Fuel Sales Tax Refund Fund an amount estimated by the Department to be required for refunds of the 80% portion of the tax on aviation fuel under this Act. The Department shall only deposit moneys into the Aviation Fuel Sales Tax Refund Fund under this paragraph for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

Subject to payment of amounts into the Build Illinois Fund and the McCormick Place Expansion Project Fund pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, beginning July 1, 1993 and ending on September 30, 2013, the Department shall each month pay into the Illinois Tax Increment Fund 0.27% of 80% of the net revenue realized for the preceding month from the 6.25% general rate on the selling price of tangible personal property.

Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Illinois Tax Increment Fund pursuant to the preceding paragraphs or in any amendments to this Section hereafter enacted, beginning on the first day of the first calendar month to occur on or after August 26, 2014 (the effective date of Public Act 98-1098), each month, from the collections made under Section 9 of the Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the Service Occupation Tax Act, and Section 3 of the Retailers' Occupation Tax Act, the Department shall pay into the Tax Compliance and Administration Fund, to be used, subject to appropriation, to fund additional auditors and compliance personnel at the Department of Revenue, an amount equal to 1/12 of 5% of 80% of the cash receipts collected during the preceding fiscal year by the Audit Bureau of the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and associated local occupation and use taxes administered by the Department.

Subject to payments of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, the Energy Infrastructure Fund, and the Tax Compliance and Administration Fund as provided in this Section, beginning on July 1, 2018 the Department shall pay each month into the Downstate Public Transportation Fund the moneys required to be so paid under Section 2-3 of the Downstate Public Transportation Act.

Subject to successful execution and delivery of a public-private agreement between the public agency and private entity and completion of the civic build, beginning on July 1, 2023, of the remainder of the moneys received by the Department under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and this Act, the Department shall deposit the following specified deposits in the aggregate from collections under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, as required under Section 8.25g of the State Finance Act for distribution consistent with the Public-Private Partnership for Civic and Transit Infrastructure Project Act. The moneys received by the Department pursuant to this Act and required to be deposited into the Civic and Transit Infrastructure Fund are subject to the pledge, claim and charge set forth in Section 25-55 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act. As used in this paragraph, "civic build", "private entity", "public-private agreement", and "public agency" have the meanings provided in Section 25-10 of the Public-Private Partnership for Civic and Transit Infrastructure Project Act.

Fiscal Year.............................Total Deposit

2024.....................................$200,000,000

2025....................................$206,000,000

2026....................................$212,200,000

2027....................................$218,500,000

2028....................................$225,100,000

2029....................................$288,700,000

2030....................................$298,900,000

2031....................................$309,300,000

2032....................................$320,100,000

2033....................................$331,200,000

2034....................................$341,200,000

2035....................................$351,400,000

2036....................................$361,900,000

2037....................................$372,800,000

2038....................................$384,000,000

2039....................................$395,500,000

2040....................................$407,400,000

2041....................................$419,600,000

2042....................................$432,200,000

2043....................................$445,100,000

Beginning July 1, 2021 and until July 1, 2022, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 16% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2022 and until July 1, 2023, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 32% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2023 and until July 1, 2024, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 48% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning July 1, 2024 and until July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 64% of the net revenue realized from the taxes imposed on motor fuel and gasohol. Beginning on July 1, 2025, subject to the payment of amounts into the County and Mass Transit District Fund, the Local Government Tax Fund, the Build Illinois Fund, the McCormick Place Expansion Project Fund, the Illinois Tax Increment Fund, and the Tax Compliance and Administration Fund as provided in this Section, the Department shall pay each month into the Road Fund the amount estimated to represent 80% of the net revenue realized from the taxes imposed on motor fuel and gasohol. As used in this paragraph "motor fuel" has the meaning given to that term in Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the meaning given to that term in Section 3-40 of the Use Tax Act.

Of the remainder of the moneys received by the Department pursuant to this Act, 75% thereof shall be paid into the State treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of the monthly transfer from the General Revenue Fund in accordance with Section 8a of the State Finance Act.

The Department may, upon separate written notice to a taxpayer, require the taxpayer to prepare and file with the Department on a form prescribed by the Department within not less than 60 days after receipt of the notice an annual information return for the tax year specified in the notice. Such annual return to the Department shall include a statement of gross receipts as shown by the retailer's last federal Federal income tax return. If the total receipts of the business as reported in the federal Federal income tax return do not agree with the gross receipts reported to the Department of Revenue for the same period, the retailer shall attach to his annual return a schedule showing a reconciliation of the 2 amounts and the reasons for the difference. The retailer's annual return to the Department shall also disclose the cost of goods sold by the retailer during the year covered by such return, opening and closing inventories of such goods for such year, costs of goods used from stock or taken from stock and given away by the retailer during such year, payroll information of the retailer's business during such year and any additional reasonable information which the Department deems would be helpful in determining the accuracy of the monthly, quarterly, or annual returns filed by such retailer as provided for in this Section.

If the annual information return required by this Section is not filed when and as required, the taxpayer shall be liable as follows:

(i) Until January 1, 1994, the taxpayer shall be liable for a penalty equal to 1/6 of 1% of the tax due from such taxpayer under this Act during the period to be covered by the annual return for each month or fraction of a month until such return is filed as required, the penalty to be assessed and collected in the same manner as any other penalty provided for in this Act.

(ii) On and after January 1, 1994, the taxpayer shall be liable for a penalty as described in Section 3-4 of the Uniform Penalty and Interest Act.

The chief executive officer, proprietor, owner, or highest ranking manager shall sign the annual return to certify the accuracy of the information contained therein. Any person who willfully signs the annual return containing false or inaccurate information shall be guilty of perjury and punished accordingly. The annual return form prescribed by the Department shall include a warning that the person signing the return may be liable for perjury.

The provisions of this Section concerning the filing of an annual information return do not apply to a retailer who is not required to file an income tax return with the United States Government.

As soon as possible after the first day of each month, upon certification of the Department of Revenue, the Comptroller shall order transferred and the Treasurer shall transfer from the General Revenue Fund to the Motor Fuel Tax Fund an amount equal to 1.7% of 80% of the net revenue realized under this Act for the second preceding month. Beginning April 1, 2000, this transfer is no longer required and shall not be made.

Net revenue realized for a month shall be the revenue collected by the State pursuant to this Act, less the amount paid out during that month as refunds to taxpayers for overpayment of liability.

For greater simplicity of administration, manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, and who wish to do so, may assume the responsibility for accounting and paying to the Department all tax accruing under this Act with respect to such sales, if the retailers who are affected do not make written objection to the Department to this arrangement.

Any person who promotes, organizes, or provides retail selling space for concessionaires or other types of sellers at the Illinois State Fair, DuQuoin State Fair, county fairs, local fairs, art shows, flea markets, and similar exhibitions or events, including any transient merchant as defined by Section 2 of the Transient Merchant Act of 1987, is required to file a report with the Department providing the name of the merchant's business, the name of the person or persons engaged in merchant's business, the permanent address and Illinois Retailers Occupation Tax Registration Number of the merchant, the dates and location of the event, and other reasonable information that the Department may require. The report must be filed not later than the 20th day of the month next following the month during which the event with retail sales was held. Any person who fails to file a report required by this Section commits a business offense and is subject to a fine not to exceed $250.

Any person engaged in the business of selling tangible personal property at retail as a concessionaire or other type of seller at the Illinois State Fair, county fairs, art shows, flea markets, and similar exhibitions or events, or any transient merchants, as defined by Section 2 of the Transient Merchant Act of 1987, may be required to make a daily report of the amount of such sales to the Department and to make a daily payment of the full amount of tax due. The Department shall impose this requirement when it finds that there is a significant risk of loss of revenue to the State at such an exhibition or event. Such a finding shall be based on evidence that a substantial number of concessionaires or other sellers who are not residents of Illinois will be engaging in the business of selling tangible personal property at retail at the exhibition or event, or other evidence of a significant risk of loss of revenue to the State. The Department shall notify concessionaires and other sellers affected by the imposition of this requirement. In the absence of notification by the Department, the concessionaires and other sellers shall file their returns as otherwise required in this Section.

(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, eff. 7-28-23; revised 9-27-23.)

Section 800-35. The Counties Code is amended by changing Section 5-1009 and by adding Section 5-1189 as follows:

(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)

Sec. 5-1009. Limitation on home rule powers. Except as provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007, and 5-1008, and 5-1189, on and after September 1, 1990, no home rule county has the authority to impose, pursuant to its home rule authority, a retailers' occupation tax, service occupation tax, use tax, sales tax or other tax on the use, sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property. Notwithstanding the foregoing, this Section does not preempt any home rule imposed tax such as the following: (1) a tax on alcoholic beverages, whether based on gross receipts, volume sold or any other measurement; (2) a tax based on the number of units of cigarettes or tobacco products; (3) a tax, however measured, based on the use of a hotel or motel room or similar facility; (4) a tax, however measured, on the sale or transfer of real property; (5) a tax, however measured, on lease receipts; (6) a tax on food prepared for immediate consumption and on alcoholic beverages sold by a business which provides for on premise consumption of said food or alcoholic beverages; or (7) other taxes not based on the selling or purchase price or gross receipts from the use, sale or purchase of tangible personal property. This Section does not preempt a home rule county from imposing a tax, however measured, on the use, for consideration, of a parking lot, garage, or other parking facility.

On and after December 1, 2019, no home rule county has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax Act, unless the tax revenue is expended for airport-related purposes. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. Aviation fuel shall be excluded from tax only for so long as the revenue use requirements of 49 U.S.C. 47017(b) and 49 U.S.C. 47133 are binding on the county.

This Section is a limitation, pursuant to subsection (g) of Section 6 of Article VII of the Illinois Constitution, on the power of home rule units to tax. The changes made to this Section by Public Act 101-10 are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)

(55 ILCS 5/5-1189 new)

Sec. 5-1189. County Hemp Concentrate derived product retailers' Occupation Tax Law.

(a) This Section may be referred to as the County Hemp Concentrate derived product retailers' Occupation Tax Law.

(b) The corporate authorities of any county may, by ordinance, impose a tax upon all persons engaged in the business of selling hemp concentrate derived products, as that term is defined in Section 1-5 of the Hemp Cannabinoid Products Act, at retail in the county on the gross receipts from these sales made in the course of that business. If imposed, the tax shall be imposed only in 0.25% increments. The tax rate may not exceed: (i) 3.75% of the gross receipts of sales made in unincorporated areas of the county; and (ii) 3% of the gross receipts of sales made in a municipality located in the county. The tax imposed under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The Department of Revenue shall administer and enforce this Section; collect all taxes and penalties due under this Section; dispose of taxes and penalties so collected in the manner provided in this Section; and determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty under this Section. In the administration of and compliance with this Section, the Department of Revenue and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, shall be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and shall employ the same modes of procedure as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 in respect to all provisions therein other than the State rate of tax, 2a, 2b, 2c, 2i, 3 except as to the disposition of taxes and penalties collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act as fully as if those provisions were set forth in this Section.

(c) Persons subject to a tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax liability under this Section by separately stating that tax as an additional charge, which charge may be stated in combination, in a single amount, with any State tax that sellers are required to collect.

(d) Whenever the Department of Revenue determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department of Revenue shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department of Revenue.

(e) The Department of Revenue shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section for deposit into the Local Cannabis Retailers' Occupation Tax Trust Fund.

(f) On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the Comptroller the amount of money to be disbursed from the Local Cannabis Retailers' Occupation Tax Trust Fund to counties from which retailers have paid taxes or penalties under this Section during the second preceding calendar month. The amount to be paid to each county shall be the amount, not including credit memoranda, collected under this Section from sales made in the county during the second preceding calendar month, plus an amount the Department of Revenue determines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such county, and not including any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the county, less 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the counties, shall prepare and certify the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days after receipt by the Comptroller of the disbursement certification to the counties and the Tax Compliance and Administration Fund provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification.

(g) An ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof that is adopted on or after the effective date of this amendatory Act of the 103rd General Assembly for which a certified copy is filed with the Department on or before April 1, 2025 shall be administered and enforced by the Department beginning on July 1, 2025. For ordinances filed with the Department after April 1, 2025, an ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as of the first day of January next following the adoption and filing.

Section 800-40. The Illinois Municipal Code is amended by changing Section 8-11-6a and by adding Section 8-11-24 as follows:

(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)

Sec. 8-11-6a. Home rule municipalities; preemption of certain taxes. Except as provided in Sections 8-11-1, 8-11-5, 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on and after September 1, 1990, no home rule municipality has the authority to impose, pursuant to its home rule authority, a retailer's occupation tax, service occupation tax, use tax, sales tax or other tax on the use, sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property. Notwithstanding the foregoing, this Section does not preempt any home rule imposed tax such as the following: (1) a tax on alcoholic beverages, whether based on gross receipts, volume sold or any other measurement; (2) a tax based on the number of units of cigarettes or tobacco products (provided, however, that a home rule municipality that has not imposed a tax based on the number of units of cigarettes or tobacco products before July 1, 1993, shall not impose such a tax after that date); (3) a tax, however measured, based on the use of a hotel or motel room or similar facility; (4) a tax, however measured, on the sale or transfer of real property; (5) a tax, however measured, on lease receipts; (6) a tax on food prepared for immediate consumption and on alcoholic beverages sold by a business which provides for on premise consumption of said food or alcoholic beverages; or (7) other taxes not based on the selling or purchase price or gross receipts from the use, sale or purchase of tangible personal property. This Section does not preempt a home rule municipality with a population of more than 2,000,000 from imposing a tax, however measured, on the use, for consideration, of a parking lot, garage, or other parking facility. This Section is not intended to affect any existing tax on food and beverages prepared for immediate consumption on the premises where the sale occurs, or any existing tax on alcoholic beverages, or any existing tax imposed on the charge for renting a hotel or motel room, which was in effect January 15, 1988, or any extension of the effective date of such an existing tax by ordinance of the municipality imposing the tax, which extension is hereby authorized, in any non-home rule municipality in which the imposition of such a tax has been upheld by judicial determination, nor is this Section intended to preempt the authority granted by Public Act 85-1006. On and after December 1, 2019, no home rule municipality has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax Act, unless the tax is not subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133, or unless the tax revenue is expended for airport-related purposes. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. Aviation fuel shall be excluded from tax only if, and for so long as, the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality. This Section is a limitation, pursuant to subsection (g) of Section 6 of Article VII of the Illinois Constitution, on the power of home rule units to tax. The changes made to this Section by Public Act 101-10 are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(65 ILCS 5/8-11-24 new)

Sec. 8-11-24. Municipal Hemp Concentrate derived product retailers' Occupation Tax Law.

(a) This Section may be referred to as the Municipal Hemp Concentrate derived product retailers' Occupation Tax Law.

(b) The corporate authorities of any municipality may, by ordinance, impose a tax upon all persons engaged in the business of selling hemp concentrate derived products, as that term is defined in Section 1-5 of the Hemp Cannabinoid Products Act, at retail in the municipality on the gross receipts from these sales made in the course of that business. If imposed, the tax may not exceed 3% of the gross receipts from these sales and shall only be imposed in 1/4% increments. The tax imposed under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The Department of Revenue shall administer and enforce this Section; collect all taxes and penalties due under this Section; dispose of taxes and penalties so collected in the manner hereinafter provided; and determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty under this Section. In the administration of and compliance with this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, shall be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and shall employ the same modes of procedure as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 in respect to all provisions therein other than the State rate of tax, 2a, 2b, 2c, 2i, 3 except as to the disposition of taxes and penalties collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act, as fully as if those provisions were set forth in this Section.

(c) Persons subject to a tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax liability under this Section by separately stating that tax as an additional charge, which charge may be stated in combination, in a single amount, with any State tax that sellers are required to collect.

(d) Whenever the Department of Revenue determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department of Revenue shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department of Revenue.

(e) The Department of Revenue shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section for deposit into the Local Cannabis Retailers' Occupation Tax Trust Fund.

(f) On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the Comptroller the amount of money to be disbursed from the Local Cannabis Retailers' Occupation Tax Trust Fund to municipalities from which retailers have paid taxes or penalties under this Section during the second preceding calendar month. The amount to be paid to each municipality shall be the amount, not including credit memoranda, collected under this Section from sales made in the municipality during the second preceding calendar month, plus an amount the Department of Revenue determines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such municipality, and not including any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the municipality, less 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities and the Tax Compliance and Administration Fund provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification.

(g) An ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof that is adopted on or after the effective date of this amendatory Act of the 103rd General Assembly and for which a certified copy is filed with the Department on or before April 1, 2025 shall be administered and enforced by the Department beginning on July 1, 2025. For ordinances filed with the Department after April 1, 2025, an ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as of the first day of January next following the adoption and filing.

Section 800-45. The Cannabis Regulation and Tax Act is amended by changing Sections 1-10, 5-11, 5-45, 10-10, 15-155, and 55-35 and by adding Sections 15-35.5, 15-35.11, 20-60, and 35-22 as follows:

(410 ILCS 705/1-10)

Sec. 1-10. Definitions. In this Act:

"Adult Use Cultivation Center License" means a license issued by the Department of Agriculture that permits a person to act as a cultivation center under this Act and any administrative rule made in furtherance of this Act.

"Adult Use Dispensing Organization License" means a license issued by the Department of Financial and Professional Regulation that permits a person to act as a dispensing organization under this Act and any administrative rule made in furtherance of this Act.

"Advertise" means to engage in promotional activities including, but not limited to: newspaper, radio, Internet and electronic media, and television advertising; the distribution of fliers and circulars; billboard advertising; and the display of window and interior signs. "Advertise" does not mean exterior signage displaying only the name of the licensed cannabis business establishment.

"Application points" means the number of points a Dispensary Applicant receives on an application for a Conditional Adult Use Dispensing Organization License.

"BLS Region" means a region in Illinois used by the United States Bureau of Labor Statistics to gather and categorize certain employment and wage data. The 17 such regions in Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, Champaign-Urbana, Chicago-Naperville-Elgin, Danville, Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria, Rockford, St. Louis, Springfield, Northwest Illinois nonmetropolitan area, West Central Illinois nonmetropolitan area, East Central Illinois nonmetropolitan area, and South Illinois nonmetropolitan area.

"By lot" means a randomized method of choosing between 2 or more Eligible Tied Applicants or 2 or more Qualifying 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; however, "cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted from it), fiber, oil or cake, or the sterilized seed of the plant that is incapable of germination. "Cannabis" does not include industrial hemp as defined and authorized under the Industrial Hemp Act. "Cannabis" also means cannabis flower, concentrate, and cannabis-infused products and any product whether derived from natural or synthetic sources with a THC concentration greater than the THC limit set forth in the Hemp Cannabinoid Products Act.

"Cannabis business establishment" means a cultivation center, craft grower, processing organization, infuser organization, dispensing organization, or transporting organization.

"Cannabis concentrate" means a product derived from cannabis that is produced by extracting cannabinoids, including tetrahydrocannabinol (THC), from the plant through the use of propylene glycol, glycerin, butter, olive oil, or other typical cooking fats; water, ice, or dry ice; or butane, propane, CO₂, ethanol, or isopropanol and with the intended use of smoking or making a cannabis-infused product. The use of any other solvent is expressly prohibited unless and until it is approved by the Department of Agriculture.

"Cannabis container" means a sealed or resealable, traceable, container, or package used for the purpose of containment of cannabis or cannabis-infused product during transportation.

"Cannabis flower" means marijuana, hashish, and other substances that are identified as including any parts of the plant Cannabis sativa and including derivatives or subspecies, such as indica, of all strains of cannabis; including raw kief, leaves, and buds, but not resin that has been extracted from any part of such plant; nor any compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or resin.

"Cannabis-infused product" means a beverage, food, oil, ointment, tincture, topical formulation, or another product containing cannabis or cannabis concentrate that is not intended to be smoked.

"Cannabis paraphernalia" means equipment, products, or materials intended to be used for planting, propagating, cultivating, growing, harvesting, manufacturing, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, ingesting, or otherwise introducing cannabis into the human body.

"Cannabis plant monitoring system" or "plant monitoring system" means a system that includes, but is not limited to, testing and data collection established and maintained by the cultivation center, craft grower, or processing organization and that is available to the Department of Revenue, the Department of Agriculture, the Department of Financial and Professional Regulation, and the Illinois State Police for the purposes of documenting each cannabis plant and monitoring plant development throughout the life cycle of a cannabis plant cultivated for the intended use by a customer from seed planting to final packaging.

"Cannabis testing facility" means an entity registered by the Department of Agriculture to test cannabis for potency and contaminants.

"Clone" means a plant section from a female cannabis plant not yet rootbound, growing in a water solution or other propagation matrix, that is capable of developing into a new plant.

"Community College Cannabis Vocational Training Pilot Program faculty participant" means a person who is 21 years of age or older, licensed by the Department of Agriculture, and is employed or contracted by an Illinois community college to provide student instruction using cannabis plants at an Illinois community college Community College.

"Community College Cannabis Vocational Training Pilot Program faculty participant Agent Identification Card" means a document issued by the Department of Agriculture that identifies a person as a Community College Cannabis Vocational Training Pilot Program faculty participant.

"Conditional Adult Use Dispensing Organization 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 this Act, but does not entitle the recipient to begin purchasing or selling cannabis or cannabis-infused products.

"Conditional Adult Use Cultivation Center License" means a license awarded to top-scoring applicants for an Adult Use Cultivation Center License that reserves the right to an Adult Use Cultivation Center License if the applicant meets certain conditions as determined by the Department of Agriculture by rule, but does not entitle the recipient to begin growing, processing, or selling cannabis or cannabis-infused products.

"Craft grower" means a facility operated by an organization or business that is licensed by the Department of Agriculture to cultivate, dry, cure, and package cannabis and perform other necessary activities to make cannabis available for sale at a dispensing organization or use at a processing organization. A craft grower may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering state. The Department of Agriculture may authorize an increase or decrease of flowering stage cultivation space in increments of 3,000 square feet by rule based on market need, craft grower capacity, and the licensee's history of compliance or noncompliance, with a maximum space of 14,000 square feet for cultivating plants in the flowering stage, which must be cultivated in all stages of growth in an enclosed and secure area. A craft grower may share premises with a processing organization or a dispensing organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership.

"Craft grower agent" means a principal officer, board member, employee, or other agent of a craft grower who is 21 years of age or older.

"Craft Grower Agent Identification Card" means a document issued by the Department of Agriculture that identifies a person as a craft grower agent.

"Cultivation center" means a facility operated by an organization or business that is licensed by the Department of Agriculture to cultivate, process, transport (unless otherwise limited by this Act), and perform other necessary activities to provide cannabis and cannabis-infused products to cannabis business establishments.

"Cultivation center agent" means a principal officer, board member, employee, or other agent of a cultivation center who is 21 years of age or older.

"Cultivation Center Agent Identification Card" means a document issued by the Department of Agriculture that identifies a person as a cultivation center agent.

"Currency" means currency and coins coin of the United States.

"Dispensary" means a facility operated by a dispensing organization at which activities licensed by this Act may occur.

"Dispensary Applicant" means the Proposed Dispensing Organization Name as stated on an application for a Conditional Adult Use Dispensing Organization License.

"Dispensing organization" means a facility operated by an organization or business that is licensed by the Department of Financial and Professional Regulation to acquire cannabis from a cultivation center, craft grower, processing organization, or another dispensary for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia, or related supplies under this Act to purchasers or to qualified registered medical cannabis patients and caregivers. As used in this Act, "dispensing organization" includes a registered medical cannabis organization as defined in the Compassionate Use of Medical Cannabis Program Act or its successor Act that has obtained an Early Approval Adult Use Dispensing Organization License.

"Dispensing organization agent" means a principal officer, employee, or agent of a dispensing organization who is 21 years of age or older.

"Dispensing organization agent identification card" means a document issued by the Department of Financial and Professional Regulation that identifies a person as a dispensing organization agent.

"Disproportionately Impacted Area" means a census tract or comparable geographic area that satisfies the following criteria as determined by the Department of Commerce and Economic Opportunity, that:

(1) meets at least one of the following criteria:

(A) the area has a poverty rate of at least 20% according to the latest federal decennial census; or

(B) 75% or more of the children in the area participate in the federal free lunch program according to reported statistics from the State Board of Education; or

(C) at least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program; or

(D) the area has an average unemployment rate, as determined by the Illinois Department of Employment Security, that is more than 120% of the national unemployment average, as determined by the United States Department of Labor, for a period of at least 2 consecutive calendar years preceding the date of the application; and

(2) has high rates of arrest, conviction, and incarceration related to the sale, possession, use, cultivation, manufacture, or transport of cannabis.

"Early Approval Adult Use Cultivation Center License" means a license that permits a medical cannabis cultivation center licensed under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act to begin cultivating, infusing, packaging, transporting (unless otherwise provided in this Act), processing, and selling cannabis or cannabis-infused product to cannabis business establishments for resale to purchasers as permitted by this Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization License" means a license that permits a medical cannabis dispensing organization licensed under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act to begin selling cannabis or cannabis-infused product to purchasers as permitted by this Act as of January 1, 2020.

"Early Approval Adult Use Dispensing Organization at a secondary site" means a license that permits a medical cannabis dispensing organization licensed under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act to begin selling cannabis or cannabis-infused product to purchasers as permitted by this Act on January 1, 2020 at a different dispensary location from its existing registered medical dispensary location.

"Eligible Tied Applicant" means a Tied Applicant that is eligible to participate in the process by which a remaining available license is distributed by lot pursuant to a Tied Applicant Lottery.

"Enclosed, locked facility" means a room, greenhouse, building, or other enclosed area equipped with locks or other security devices that permit access only by cannabis business establishment agents working for the licensed cannabis business establishment or acting pursuant to this Act to cultivate, process, store, or distribute cannabis.

"Enclosed, locked space" means a closet, room, greenhouse, building, or other enclosed area equipped with locks or other security devices that permit access only by authorized individuals under this Act. "Enclosed, locked space" may include:

(1) a space within a residential building that (i) is the primary residence of the individual cultivating 5 or fewer cannabis plants that are more than 5 inches tall and (ii) includes sleeping quarters and indoor plumbing. The space must only be accessible by a key or code that is different from any key or code that can be used to access the residential building from the exterior; or

(2) a structure, such as a shed or greenhouse, that lies on the same plot of land as a residential building that (i) includes sleeping quarters and indoor plumbing and (ii) is used as a primary residence by the person cultivating 5 or fewer cannabis plants that are more than 5 inches tall, such as a shed or greenhouse. The structure must remain locked when it is unoccupied by people.

"Financial institution" has the same meaning as "financial organization" as defined in Section 1501 of the Illinois Income Tax Act, and also includes the holding companies, subsidiaries, and affiliates of such financial organizations.

"Flowering stage" means the stage of cultivation where and when a cannabis plant is cultivated to produce plant material for cannabis products. This includes mature plants as follows:

(1) if greater than 2 stigmas are visible at each internode of the plant; or

(2) if the cannabis plant is in an area that has been intentionally deprived of light for a period of time intended to produce flower buds and induce maturation, from the moment the light deprivation began through the remainder of the marijuana plant growth cycle.

"Individual" means a natural person.

"Infuser organization" or "infuser" means a facility operated by an organization or business that is licensed by the Department of Agriculture to directly incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis-infused product.

"Kief" means the resinous crystal-like trichomes that are found on cannabis and that are accumulated, resulting in a higher concentration of cannabinoids, untreated by heat or pressure, or extracted using a solvent.

"Labor peace agreement" means an agreement between a cannabis business establishment and any labor organization recognized under the National Labor Relations Act, referred to in this Act as a bona fide labor organization, that prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the cannabis business establishment. This agreement means that the cannabis business establishment has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis business establishment's employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis business establishment's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

"Limited access area" means a 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.

"Member of an impacted family" means an individual who has a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the effective date of this Act, was arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act.

"Mother plant" means a cannabis plant that is cultivated or maintained for the purpose of generating clones, and that will not be used to produce plant material for sale to an infuser or dispensing organization.

"Ordinary public view" means within the sight line with normal visual range of a person, unassisted by visual aids, from a public street or sidewalk adjacent to real property, or from within an adjacent property.

"Ownership and control" means ownership of at least 51% of the business, including corporate stock if a corporation, and control over the management and day-to-day operations of the business and an interest in the capital, assets, and profits and losses of the business proportionate to percentage of ownership.

"Person" means a natural individual, firm, partnership, association, joint stock company, joint venture, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court.

"Possession limit" means the amount of cannabis under Section 10-10 that may be possessed at any one time by a person 21 years of age or older or who is a registered qualifying medical cannabis patient or caregiver under the Compassionate Use of Medical Cannabis Program Act.

"Principal officer" includes a cannabis business establishment applicant or licensed cannabis business establishment's board member, owner with more than 1% interest of the total cannabis business establishment or more than 5% interest of the total cannabis business establishment of a publicly traded company, president, vice president, secretary, treasurer, partner, officer, member, manager member, or person with a profit sharing, financial interest, or revenue sharing arrangement. The definition includes a person with authority to control the cannabis business establishment, a person who assumes responsibility for the debts of the cannabis business establishment and who is further defined in this Act.

"Primary residence" means a dwelling where a person usually stays or stays more often than other locations. It may be determined by, without limitation, presence, tax filings; address on an Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card; or voter registration. No person may have more than one primary residence.

"Processing organization" or "processor" means a facility operated by an organization or business that is licensed by the Department of Agriculture to either extract constituent chemicals or compounds to produce cannabis concentrate or incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis product.

"Processing organization agent" means a principal officer, board member, employee, or agent of a processing organization.

"Processing organization agent identification card" means a document issued by the Department of Agriculture that identifies a person as a processing organization agent.

"Purchaser" means a person 21 years of age or older who acquires cannabis for a valuable consideration. "Purchaser" does not include a cardholder under the Compassionate Use of Medical Cannabis Program Act.

"Qualifying Applicant" means an applicant that submitted an application pursuant to Section 15-30 that received at least 85% of 250 application points available under Section 15-30 as the applicant's final score and meets the definition of "Social Equity Applicant" as set forth under this Section.

"Qualifying Social Equity Justice Involved Applicant" means an applicant that submitted an application pursuant to Section 15-30 that received at least 85% of 250 application points available under Section 15-30 as the applicant's final score and meets the criteria of either paragraph (1) or (2) of the definition of "Social Equity Applicant" as set forth under this Section.

"Qualified Social Equity Applicant" means a Social Equity Applicant who has been awarded a conditional license under this Act to operate a cannabis business establishment.

"Resided" means an individual's primary residence was located within the relevant geographic area as established by 2 of the following:

(1) a signed lease agreement that includes the applicant's name;

(2) a property deed that includes the applicant's name;

(3) school records;

(4) a voter registration card;

(5) an Illinois driver's license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card;

(6) a paycheck stub;

(7) a utility bill;

(8) tax records; or

(9) any other proof of residency or other information necessary to establish residence as provided by rule.

"Smoking" means the inhalation of smoke caused by the combustion of cannabis.

"Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria:

(1) an applicant with at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area;

(2) an applicant with at least 51% ownership and control by one or more individuals who:

(i) have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act; or

(ii) is a member of an impacted family;

(3) for applicants with a minimum of 10 full-time employees, an applicant with at least 51% of current employees who:

(i) currently reside in a Disproportionately Impacted Area; or

(ii) have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act or member of an impacted family.

Nothing in this Act shall be construed to preempt or limit the duties of any employer under the Job Opportunities for Qualified Applicants Act. Nothing in this Act shall permit an employer to require an employee to disclose sealed or expunged offenses, unless otherwise required by law.

"Tetrahydrocannabinol" or "THC" means any naturally occurring or synthetic tetrahydrocannabinol, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation and any preparation, mixture, or substance containing, or mixed or infused with, any detectable amount of tetrahydrocannabinol or tetrahydrocannabolic acid, including, but not limited to, delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid, tetrahydrocannabipherol, or hexahydrocannabinol, however derived, or any other substance determined to have similar intoxicating effects on the mind or body by the Department. For the purposes of this definition, "isomer" means the optical, position, and geometric isomers.

"Tied Applicant" means an application submitted by a Dispensary Applicant pursuant to Section 15-30 that received the same number of application points under Section 15-30 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.

"Tied Applicant Lottery" means the process established under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult Use Dispensing Organization Licenses pursuant to Sections 15-25 and 15-30 among Eligible Tied Applicants.

"Tincture" means a cannabis-infused solution, typically comprised of alcohol, glycerin, or vegetable oils, derived either directly from the cannabis plant or from a processed cannabis extract. A tincture is not an alcoholic liquor as defined in the Liquor Control Act of 1934. A tincture shall include a calibrated dropper or other similar device capable of accurately measuring servings.

"Transporting organization" or "transporter" means an organization or business that is licensed by the Department of Agriculture to transport cannabis or cannabis-infused product on behalf of a cannabis business establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program.

"Transporting organization agent" means a principal officer, board member, employee, or agent of a transporting organization.

"Transporting organization agent identification card" means a document issued by the Department of Agriculture that identifies a person as a transporting organization agent.

"Unit of local government" means any county, city, village, or incorporated town.

"Vegetative stage" means the stage of cultivation in which a cannabis plant is propagated to produce additional cannabis plants or reach a sufficient size for production. This includes seedlings, clones, mothers, and other immature cannabis plants as follows:

(1) if the cannabis plant is in an area that has not been intentionally deprived of light for a period of time intended to produce flower buds and induce maturation, it has no more than 2 stigmas visible at each internode of the cannabis plant; or

(2) any cannabis plant that is cultivated solely for the purpose of propagating clones and is never used to produce cannabis.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

(410 ILCS 705/5-11 new)

Sec. 5-11. Hemp and hemp derivatives in medical and adult use cannabis products.

(a) In this Section, "industrial hemp" has the meaning given to it under the Industrial Hemp Act.

(b) Cannabis business establishments that are licensed by the Department of Agriculture as a craft grow organization or an infuser organization and that meet the criteria set forth in this Act as a Social Equity Applicant may infuse medical or adult use cannabis products pursuant to this Act or the Compassionate Use of Medicinal Cannabis Program Act with hemp extract or hemp concentrate derived from industrial hemp as an ingredient in cannabis-infused products offered for sale at a dispensary licensed under this Act, including Section 15-35 or Section 15-35.10.

(c) All hemp obtained through this policy must be used in extracted form and in infused cannabis products only.

(d) Industrial hemp may be procured from hemp organizations licensed under the Hemp Cannabinoid Products Act from within the State or any other state with a regulated industrial hemp program.

(e) All hemp and hemp derivatives shall be obtained from a licensed or registered hemp grower or processor, regardless of the home state of the grower or processor. Cannabis producers shall provide a copy of the hemp grower's or processor's state-issued license upon demand of the Department of Agriculture or the Illinois State Police.

(f) A licensed craft grower organization or infuser organization that meets the criteria set forth in this Act as a Social Equity Applicant must notify the Department of Agriculture, on forms prescribed by the Department, of the organization's intention to infuse or process intermediate hemp products, hemp extract, or hemp concentrate, as those terms are defined under the Hemp Cannabinoid Products Act. Hemp concentrate derived product, as that term is defined under the Hemp Cannabinoid Products Act, infused by a licensed graft grower organization or infuser organization that meets the criteria set forth in this Act as a Social Equity Applicant may not contain more than 10 milligrams per serving or 100 milligrams per packaging of delta-8 tetrahydrocannabinol or delta-9 tetrahydrocannabinol.

(g) Industrial hemp flower and biomass may be purchased and extracted by licensed craft growers that meet the criteria set forth in this Act as a Social Equity Applicant.

(h) Licensed cannabis cultivation centers and licensed craft growers that meet the criteria set forth in this Act as a Social Equity Applicant may procure or process industrial hemp in the form of industrial hemp products, hemp extract, or hemp concentrate, as those terms are defined under the Hemp Cannabinoid Products Act. Licensed infusers may procure industrial hemp in the form of industrial hemp, hemp extract, or hemp concentrate, as those terms are used under the Hemp Cannabinoid Products Act. All processed hemp derivatives must be accompanied by a certificate of analysis showing potency levels for THC, THCa, CBD, and CBDa, and any other cannabinoids required by the Department by rule or guidance. No hemp concentrate derived product, as that term is defined under the Hemp Cannabinoid Products Act, shall contain more than 10 milligrams per serving or 100 milligrams per packaging of delta-8-tetrahydrocannabinol or delta-9-tetrahydrocannabinol.

(i) A representative sample of all final products containing industrial hemp or hemp derivatives must undergo testing pursuant to the Compassionate Use of Medical Cannabis Act, the Cannabis Regulation and Tax Act, and any applicable administrative rules.

(j) Final products containing hemp or hemp derivatives are subject to the requirements of the Compassionate Use of Medical Cannabis Act, the Cannabis Regulation and Tax Act, and any applicable administrative rules.

(410 ILCS 705/5-45)

Sec. 5-45. Illinois Cannabis Regulation Oversight Officer.

(a) The position of Illinois Cannabis Regulation Oversight Officer is created within the Department of Financial and Professional Regulation under the Secretary of Financial and Professional Regulation. The Cannabis Regulation Oversight Officer serves a coordinating role among State agencies regarding this Act and the Compassionate Use of Medical Cannabis Program Act. The Illinois Cannabis Regulation Oversight Officer shall be appointed by the Governor with the advice and consent of the Senate. The term of office of the Officer shall expire on the third Monday of January in odd-numbered years provided that he or she shall hold office until a successor is appointed and qualified. In case of vacancy in office during the recess of the Senate, the Governor shall make a temporary appointment until the next meeting of the Senate, when the Governor shall nominate some person to fill the office, and any person so nominated who is confirmed by the Senate shall hold office during the remainder of the term and until his or her successor is appointed and qualified.

(b) The Illinois Cannabis Regulation Oversight Officer has the authority to:

(1) maintain a staff;

(2) make recommendations for administrative and statutory changes;

(3) collect data both in Illinois and outside Illinois regarding the regulation of cannabis;

(4) compile or assist in the compilation of any reports required by this Act;

(5) ensure the coordination of efforts between various State agencies involved in regulating and taxing the sale of cannabis in Illinois; and

(6) encourage, promote, suggest, and report best practices for ensuring diversity in the cannabis industry in Illinois.

(c) The Illinois Cannabis Regulation Oversight Officer and the Officer's staff shall not:

(1) participate in the issuance or award of any cannabis business establishment license; or

(2) participate in discipline related to any cannabis business establishment.

The Illinois Cannabis Regulation Officer is not prohibited from coordinating with and making recommendations to agencies regarding licensing and disciplinary policies and procedures.

(d) Any funding required for the Illinois Cannabis Regulation Oversight Officer, its staff, or its activities shall be drawn from the Cannabis Regulation Fund.

(e) The Illinois Cannabis Regulation Oversight Officer shall commission and publish one or more disparity and availability studies that: (1) evaluates whether there exists discrimination in the State's cannabis industry; and (2) if so, evaluates the impact of such discrimination on the State and includes recommendations to the Department of Financial and Professional Regulation and the Department of Agriculture for reducing or eliminating any identified barriers to entry in the cannabis market. Such disparity and availability studies shall examine each license type issued pursuant to Sections 15-25, 15-30.1, or 15-35.20, subsection (a) of Section 30-5, or subsection (a) of Section 35-5, or Article 15 of the Hemp Cannabinoid Products Act, and shall be initiated within 180 days from the issuance of the first of each license authorized by those Sections. The results of each disparity and availability study shall be reported to the General Assembly and the Governor no later than 12 months after the commission of each study.

The Illinois Cannabis Regulation Oversight Officer shall forward a copy of its findings and recommendations to the Department of Financial and Professional Regulation, the Department of Agriculture, the Department of Commerce and Economic Opportunity, the General Assembly, and the Governor.

(f) The Illinois Cannabis Regulation Oversight Officer may compile, collect, or otherwise gather data necessary for the administration of this Act and to carry out the Officer's duty relating to the recommendation of policy changes. The Illinois Cannabis Regulation Oversight Officer may direct the Department of Agriculture, Department of Financial and Professional Regulation, Department of Public Health, Department of Human Services, and Department of Commerce and Economic Opportunity to assist in the compilation, collection, and data gathering authorized pursuant to this subsection. The Illinois Cannabis Regulation Oversight Officer shall compile all of the data into a single report and submit the report to the Governor and the General Assembly and publish the report on its website.

(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)

(410 ILCS 705/10-10)

Sec. 10-10. Possession limit.

(a) Except if otherwise authorized by this Act, for a person who is 21 years of age or older and a resident of this State, the possession limit is as follows:

(1) 30 grams of cannabis flower;

(2) no more than 500 milligrams of THC contained in cannabis-infused product, 500 milligrams of THC contained in a hemp concentrate derived products, or 500 milligrams of THC contained in both cannabis-infused products and hemp concentrate derived products;

(3) 5 grams of cannabis concentrate; and

(4) for registered qualifying patients, any cannabis produced by cannabis plants grown under subsection (b) of Section 10-5, provided any amount of cannabis produced in excess of 30 grams of raw cannabis or its equivalent must remain secured within the residence or residential property in which it was grown.

(b) For a person who is 21 years of age or older and who is not a resident of this State, the possession limit is:

(1) 15 grams of cannabis flower;

(2) 2.5 grams of cannabis concentrate, 250 milligrams of THC contained in a hemp concentrate derived products, or 250 milligrams of THC contained in both cannabis-infused products and hemp concentrate derived products; and

(3) 250 milligrams of THC contained in a cannabis-infused product.

(c) The possession limits found in subsections (a) and (b) of this Section are to be considered cumulative.

(d) No person shall knowingly obtain, seek to obtain, or possess an amount of cannabis from a dispensing organization or craft grower that would cause him or her to exceed the possession limit under this Section, including cannabis that is cultivated by a person under this Act or obtained under the Compassionate Use of Medical Cannabis Program Act.

(e) Cannabis and cannabis-derived substances regulated under the Industrial Hemp Act are not covered by this Act.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-35.5 new)

Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer Products Safety Committee.

(a) The General Assembly finds that an Intoxicating Hemp-Derived THC Consumer Products Safety Committee is necessary to evaluate the public health impacts, product formulations, manufacturing standards, and consumer safety standards for intoxicating THC products derived or produced from the industrial hemp, and make recommendations to the General Assembly, the Governor, the Attorney General, and State regulatory agencies on a regulatory framework for the manufacture, distribution, and sale of hemp-derived THC consumer products within Illinois.

(b) The Committee shall consist of the following members:

(1) a member of the Senate, designated by the President of the Senate;

(2) a member of the House of Representatives, designated by the Speaker of the House of Representatives;

(3) a member of the Senate, designated by the Minority Leader of the Senate;

(4) a member of the House of Representative, designated by the Minority Leader of the House of Representatives;

(5) the Illinois Cannabis Regulation and Oversight Officer, or a designee;

(6) the Director of Agriculture, or a designee;

(7) the Secretary of Financial and Professional Regulation, or a designee;

(8) the Director of Public Health, or a designee;

(9) the Director of Revenue, or a designee;

(10) the Attorney General, or a designee;

(11) the Director of the Illinois State Police, or a designee;

(12) one member who is an attorney with expertise in the regulation of cannabis, appointed by the Director of Agriculture;

(13) one member who is an individual with expertise in the processing of cannabis, appointed by the Director of Agriculture;

(14) one member who is an individual with expertise in consumer safety over hemp and cannabis product formulations, appointed by the Director of Public Health;

(15) one member who is a physician with expertise in the consumer safety impacts of hemp and cannabis product consumption and its effects on the mind and body, appointed by the Director of Public Health;

(16) one member who is a laboratory technician or scientist with expertise in the testing and evaluation of cannabis product safety, appointed by the Director of Agriculture;

(17) one member who is an individual with expertise in consumer product approvals and requirements under the Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by the Director of Public Health;

(18) one member who is a school superintendent or principal, appointed by the State Superintendent of Education; and

(19) one member who is a college or university representative with expertise in research and development of consumer safety standards and products, appointed by the State Superintendent of Education.

(c) The Committee shall produce a report on or before January 1, 2025 with recommendations on appropriate consumer safety standards, including product formulations, manufacturing standards, advertising standards, and a comprehensive regulatory framework for the safe manufacture, distribution, and sale of hemp-derived THC products within this State.

(d) The Department of Agriculture, the Department of Financial and Professional Regulation, the Cannabis Oversight Officer, the Department of Public Health, the Illinois State Police, and the Attorney General shall issue a report with any legislative recommendations, if deemed necessary, to the General Assembly on or before March 1, 2025 to establish a regulatory and enforcement framework for hemp-derived THC products to be manufactured, distributed, and sold to consumers within this State.

(410 ILCS 705/15-155)

Sec. 15-155. Unlicensed practice; violation; civil penalty.

(a) In addition to any other penalty provided by law, any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a licensed dispensing organization owner, principal officer, agent-in-charge, or agent, cultivates, processes, distributes, sells, or offers for sale cannabis, cannabis-infused products, cannabis concentrates, or cannabis flower without being licensed under this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department of Financial and Professional Regulation in an amount not to exceed $10,000 for each offense as determined by the Department. Each day a person engages in unlicensed practice in violation of the provisions of this Section constitutes a separate offense. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding the provision of a hearing for the discipline of a licensee.

(b) The Department, the Attorney General, any State or local law enforcement agency, or any State's Attorney may has the authority and power to investigate any and all unlicensed activity.

(b-5) If a person is convicted of unlicensed activity under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, the clerk of the court in which the conviction is had shall, within 5 days after the conviction, forward to the Secretary of Financial and Professional Regulation a report of the conviction, and the court may recommend the suspension of any licenses awarded to the convicted person under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act.

(b-10) If a person is convicted for a third or subsequent violation in a 3-year period of unlicensed activity under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, the judge of the court in which the conviction is had shall require the immediate surrender to the clerk of the court of all licenses or conditional licenses awarded to the convicted person under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, and the clerk of the court shall, within 5 days after the conviction, forward the surrendered licenses, together with a report of the conviction, to the Secretary of Financial and Professional Regulation.

(c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty or in accordance with the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of this State.

(d) A violation of subsection (a) is an unlawful practice under Section 2Z of the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General under that Act shall be available for the enforcement of this Act.

(e) Nothing in this Section prohibits a unit of local government from enacting a local law or ordinance to carry out enforcement activities and assess civil penalties against unlicensed cannabis sales.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/20-60 new)

Sec. 20-60. Unlicensed practice; violation; civil penalty.

(a) In addition to any other penalty provided by law, a person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a licensed cultivation center, infuser, craft grower organization, hemp concentrate infuser, hemp extract enforcer, or hemp processor or a principal officer, agent-in-charge, or agent or who cultivates, processes, distributes, sells, or offers for sale cannabis, cannabis-infused products, cannabis concentrates, cannabis flower, intermediate hemp products, hemp concentrate, hemp extract, hemp extract derived products, or hemp concentrate derived products without being licensed under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department of Agriculture in an amount not to exceed $10,000 for each offense. Each day any person engages in unlicensed practice in violation of the provisions of this Section constitutes a separate offense. The civil penalty shall be assessed by the Department after a hearing is held under the provisions set forth in this Act regarding hearings for the discipline of a licensee.

(b) The Department, the Attorney General, a State or local law enforcement agency, or a State's Attorney may investigate any and all unlicensed activity.

(b-5) If a person is convicted of unlicensed activity under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, the clerk of the court in which the conviction is had shall, within 5 days after the conviction, forward to the Director of Agriculture a report of the conviction, and the court may recommend the suspension of any licenses awarded to the convicted person under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act,

(b-10) If a person is convicted, for a third subsequent violation in a 3-year period, of unlicensed activity under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, the judge of the court in which the conviction is had shall require the surrender to the clerk of the court of all licenses or conditional license awarded to the convicted person under this Act, the Hemp Cannabinoid Products Act, or the Compassionate Use of Medical Cannabis Act, and the clerk of the court shall, within 5 days after the conviction, forward the surrendered licenses, together with a report of the conviction, to the Director of Agriculture.

(c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty or in accordance with the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of this State.

(d) In addition to any other remedies or penalties provided by law, upon a third or subsequent revocation or suspension of a license, a unit of local government may suspend or revoke any locally established licenses held by the person and prohibit the person from further operations and seize any cannabis or THC product.

(410 ILCS 705/55-35)

Sec. 55-35. Administrative rulemaking.

(a) No later than 180 days after the effective date of this Act, the Department of Agriculture, the Illinois State Police, the Department of Financial and Professional Regulation, the Department of Revenue, the Department of Commerce and Economic Opportunity, and the Treasurer's Office shall adopt permanent rules in accordance with their responsibilities under this Act. The Department of Agriculture, the Illinois State Police, the Department of Financial and Professional Regulation, the Department of Revenue, and the Department of Commerce and Economic Opportunity may adopt rules necessary to regulate personal cannabis use through the use of emergency rulemaking in accordance with subsection (gg) of Section 5-45 of the Illinois Administrative Procedure Act. The General Assembly finds that the adoption of rules to regulate cannabis use is deemed an emergency and necessary for the public interest, safety, and welfare.

(b) The Department of Agriculture rules may address, but are not limited to, the following matters related to cultivation centers, craft growers, infuser organizations, and transporting organizations with the goal of protecting against diversion and theft, without imposing an undue burden on the cultivation centers, craft growers, infuser organizations, or transporting organizations:

(1) oversight requirements for cultivation centers, craft growers, infuser organizations, and transporting organizations;

(2) recordkeeping requirements for cultivation centers, craft growers, infuser organizations, and transporting organizations;

(3) security requirements for cultivation centers, craft growers, infuser organizations, and transporting organizations, which shall include that each cultivation center, craft grower, infuser organization, and transporting organization location must be protected by a fully operational security alarm system;

(4) standards for enclosed, locked facilities under this Act;

(5) procedures for suspending or revoking the identification cards of agents of cultivation centers, craft growers, infuser organizations, and transporting organizations that commit violations of this Act or the rules adopted under this Section;

(6) rules concerning the intrastate transportation of cannabis from a cultivation center, craft grower, infuser organization, and transporting organization to a dispensing organization;

(7) standards concerning the testing, quality, cultivation, and processing of cannabis; and

(7.5) standards and rules for the investigation and enforcement of unregulated and unlicensed sale of cannabis, cannabis products, and hemp cannabinoid products; and

(8) any other matters under oversight by the Department of Agriculture as are necessary for the fair, impartial, stringent, and comprehensive administration of this Act.

(b-5) Notwithstanding any standards and rules developed under paragraph (7.5) of subsection (b), the Department of Agriculture shall update through official guidance and publish publicly on its website the cannabinoids that it deems tetrahydrocannabinol or THC on or before each January 1 and July 1.

(c) The Department of Financial and Professional Regulation rules may address, but are not limited to, the following matters related to dispensing organizations, with the goal of protecting against diversion and theft, without imposing an undue burden on the dispensing organizations:

(1) oversight requirements for dispensing organizations;

(2) recordkeeping requirements for dispensing organizations;

(3) security requirements for dispensing organizations, which shall include that each dispensing organization location must be protected by a fully operational security alarm system;

(4) procedures for suspending or revoking the licenses of dispensing organization agents that commit violations of this Act or the rules adopted under this Act;

(4.5) standards and rules for the investigation and enforcement of unregulated and unlicensed sale of cannabis, cannabis products, and hemp cannabinoid products; and

(5) any other matters under oversight by the Department of Financial and Professional Regulation that are necessary for the fair, impartial, stringent, and comprehensive administration of this Act.

(d) The Department of Revenue rules may address, but are not limited to, the following matters related to the payment of taxes by cannabis business establishments:

(1) recording of sales;

(2) documentation of taxable income and expenses;

(3) transfer of funds for the payment of taxes; or

(4) any other matter under the oversight of the Department of Revenue.

(e) The Department of Commerce and Economic Opportunity rules may address, but are not limited to, a loan program or grant program to assist Social Equity Applicants access the capital needed to start a cannabis business establishment. The names of recipients and the amounts of any moneys received through a loan program or grant program shall be a public record.

(f) The Illinois State Police rules may address enforcement of its authority under this Act. The Illinois State Police shall not make rules that infringe on the exclusive authority of the Department of Financial and Professional Regulation or the Department of Agriculture over licensees under this Act.

(g) The Department of Human Services shall develop and disseminate:

(1) educational information about the health risks associated with the use of cannabis; and

(2) one or more public education campaigns in coordination with local health departments and community organizations, including one or more prevention campaigns directed at children, adolescents, parents, and pregnant or breastfeeding women, to inform them of the potential health risks associated with intentional or unintentional cannabis use.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)

Section 800-50. The Illinois Vehicle Code is amended by changing Sections 2-118.2 and 11-501.2 and by adding Section 11-502.20 as follows:

(625 ILCS 5/2-118.2)

Sec. 2-118.2. Opportunity for hearing; cannabis-related and hemp concentrate derived products-related suspension under Section 11-501.9.

(a) A suspension of driving privileges under Section 11-501.9 of this Code shall not become effective until the person is notified in writing of the impending suspension and informed that he or she may request a hearing in the circuit court of venue under subsection (b) of this Section and the suspension shall become effective as provided in Section 11-501.9.

(b) Within 90 days after the notice of suspension served under Section 11-501.9, the person may make a written request for a judicial hearing in the circuit court of venue. The request to the circuit court shall state the grounds upon which the person seeks to have the suspension rescinded. Within 30 days after receipt of the written request or the first appearance date on the Uniform Traffic Ticket issued for a violation of Section 11-501 of this Code, or a similar provision of a local ordinance, the hearing shall be conducted by the circuit court having jurisdiction. This judicial hearing, request, or process shall not stay or delay the suspension. The hearing shall proceed in the court in the same manner as in other civil proceedings.

The hearing may be conducted upon a review of the law enforcement officer's own official reports; provided however, that the person may subpoena the officer. Failure of the officer to answer the subpoena shall be considered grounds for a continuance if in the court's discretion the continuance is appropriate.

The scope of the hearing shall be limited to the issues of:

(1) Whether the officer had reasonable suspicion to believe that the person was driving or in actual physical control of a motor vehicle upon a highway while impaired by the use of cannabis or hemp concentrate derived products; and

(2) Whether the person, after being advised by the officer that the privilege to operate a motor vehicle would be suspended if the person refused to submit to and complete field sobriety tests or validated roadside chemical tests, did refuse to submit to or complete field sobriety tests or validated roadside chemical tests authorized under Section 11-501.9; and

(3) Whether the person after being advised by the officer that the privilege to operate a motor vehicle would be suspended if the person submitted to field sobriety tests or validated roadside chemical tests that disclosed the person was impaired by the use of cannabis or hemp concentrate derived products, did submit to field sobriety tests or validated roadside chemical tests that disclosed that the person was impaired by the use of cannabis or hemp concentrate derived products.

Upon the conclusion of the judicial hearing, the circuit court shall sustain or rescind the suspension and immediately notify the Secretary of State. Reports received by the Secretary of State under this Section shall be privileged information and for use only by the courts, police officers, and Secretary of State.

(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19; 101-593, eff. 12-4-19.)

(625 ILCS 5/11-501.2) (from Ch. 95 1/2, par. 11-501.2)

Sec. 11-501.2. Chemical and other tests.

(a) Upon the trial of any civil or criminal action or proceeding arising out of an arrest for an offense as defined in Section 11-501 or a similar local ordinance or proceedings pursuant to Section 2-118.1, evidence of the concentration of alcohol, other drug or drugs, or intoxicating compound or compounds, or any combination thereof in a person's blood or breath at the time alleged, as determined by analysis of the person's blood, urine, breath, or other bodily substance, shall be admissible. Where such test is made the following provisions shall apply:

1. Chemical analyses of the person's blood, urine, breath, or other bodily substance to be considered valid under the provisions of this Section shall have been performed according to standards promulgated by the Illinois State Police by a licensed physician, registered nurse, trained phlebotomist, licensed paramedic, or other individual possessing a valid permit issued by that Department for this purpose. The Director of the Illinois State Police is authorized to approve satisfactory techniques or methods, to ascertain the qualifications and competence of individuals to conduct such analyses, to issue permits which shall be subject to termination or revocation at the discretion of that Department and to certify the accuracy of breath testing equipment. The Illinois State Police shall prescribe regulations as necessary to implement this Section.

2. When a person in this State shall submit to a blood test at the request of a law enforcement officer under the provisions of Section 11-501.1, only a physician authorized to practice medicine, a licensed physician assistant, a licensed advanced practice registered nurse, a registered nurse, trained phlebotomist, or licensed paramedic, or other qualified person approved by the Illinois State Police may withdraw blood for the purpose of determining the alcohol, drug, or alcohol and drug content therein. This limitation shall not apply to the taking of breath, other bodily substance, or urine specimens.

When a blood test of a person who has been taken to an adjoining state for medical treatment is requested by an Illinois law enforcement officer, the blood may be withdrawn only by a physician authorized to practice medicine in the adjoining state, a licensed physician assistant, a licensed advanced practice registered nurse, a registered nurse, a trained phlebotomist acting under the direction of the physician, or licensed paramedic. The law enforcement officer requesting the test shall take custody of the blood sample, and the blood sample shall be analyzed by a laboratory certified by the Illinois State Police for that purpose.

3. The person tested may have a physician, or a qualified technician, chemist, registered nurse, or other qualified person of their own choosing administer a chemical test or tests in addition to any administered at the direction of a law enforcement officer. The failure or inability to obtain an additional test by a person shall not preclude the admission of evidence relating to the test or tests taken at the direction of a law enforcement officer.

4. Upon the request of the person who shall submit to a chemical test or tests at the request of a law enforcement officer, full information concerning the test or tests shall be made available to the person or such person's attorney.

5. Alcohol concentration shall mean either grams of alcohol per 100 milliliters of blood or grams of alcohol per 210 liters of breath.

6. Tetrahydrocannabinol concentration means either 5 nanograms or more of delta-9-tetrahydrocannabinol or delta-8-tetrahydrocannabinol per milliliter of whole blood or 10 nanograms or more of delta-9-tetrahydrocannabinol or delta-8-tetrahydrocannabinol per milliliter of other bodily substance.

(a-5) Law enforcement officials may use validated roadside chemical tests or standardized field sobriety tests approved by the National Highway Traffic Safety Administration when conducting investigations of a violation of Section 11-501 or similar local ordinance by drivers suspected of driving under the influence of cannabis or hemp concentrate derived products. The General Assembly finds that (i) validated roadside chemical tests are effective means to determine if a person is under the influence of cannabis or hemp concentrate derived products and (ii) standardized field sobriety tests approved by the National Highway Traffic Safety Administration are divided attention tasks that are intended to determine if a person is under the influence of cannabis or hemp concentrate derived products. The purpose of these tests is to determine the effect of the use of cannabis or hemp concentrate derived products on a person's capacity to think and act with ordinary care and therefore operate a motor vehicle safely. Therefore, the results of these validated roadside chemical tests and standardized field sobriety tests, appropriately administered, shall be admissible in the trial of any civil or criminal action or proceeding arising out of an arrest for a cannabis-related or hemp concentrate derived products-related offense as defined in Section 11-501 or a similar local ordinance or proceedings under Section 2-118.1 or 2-118.2. Where a test is made the following provisions shall apply:

1. The person tested may have a physician, or a qualified technician, chemist, registered nurse, or other qualified person of their own choosing administer a chemical test or tests in addition to the standardized field sobriety test or tests administered at the direction of a law enforcement officer. The failure or inability to obtain an additional test by a person does not preclude the admission of evidence relating to the test or tests taken at the direction of a law enforcement officer.

2. Upon the request of the person who shall submit to validated roadside chemical tests or a standardized field sobriety test or tests at the request of a law enforcement officer, full information concerning the test or tests shall be made available to the person or the person's attorney.

3. At the trial of any civil or criminal action or proceeding arising out of an arrest for an offense as defined in Section 11-501 or a similar local ordinance or proceedings under Section 2-118.1 or 2-118.2 in which the results of these validated roadside chemical tests or standardized field sobriety tests are admitted, the person may present and the trier of fact may consider evidence that the person lacked the physical capacity to perform the validated roadside chemical tests or standardized field sobriety tests.

(b) Upon the trial of any civil or criminal action or proceeding arising out of acts alleged to have been committed by any person while driving or in actual physical control of a vehicle while under the influence of alcohol, the concentration of alcohol in the person's blood or breath at the time alleged as shown by analysis of the person's blood, urine, breath, or other bodily substance shall give rise to the following presumptions:

1. If there was at that time an alcohol concentration of 0.05 or less, it shall be presumed that the person was not under the influence of alcohol.

2. If there was at that time an alcohol concentration in excess of 0.05 but less than 0.08, such facts shall not give rise to any presumption that the person was or was not under the influence of alcohol, but such fact may be considered with other competent evidence in determining whether the person was under the influence of alcohol.

3. If there was at that time an alcohol concentration of 0.08 or more, it shall be presumed that the person was under the influence of alcohol.

4. The foregoing provisions of this Section shall not be construed as limiting the introduction of any other relevant evidence bearing upon the question whether the person was under the influence of alcohol.

(b-5) Upon the trial of any civil or criminal action or proceeding arising out of acts alleged to have been committed by any person while driving or in actual physical control of a vehicle while under the influence of alcohol, other drug or drugs, intoxicating compound or compounds or any combination thereof, the concentration of cannabis or hemp concentrate derived products in the person's whole blood or other bodily substance at the time alleged as shown by analysis of the person's blood or other bodily substance shall give rise to the following presumptions:

1. If there was a tetrahydrocannabinol concentration of 5 nanograms or more in whole blood or 10 nanograms or more in another an other bodily substance as defined in this Section, it shall be presumed that the person was under the influence of cannabis or hemp concentrate derived product.

2. If there was at that time a tetrahydrocannabinol concentration of less than 5 nanograms in whole blood or less than 10 nanograms in another an other bodily substance, such facts shall not give rise to any presumption that the person was or was not under the influence of cannabis or hemp concentrate derived products, but such fact may be considered with other competent evidence in determining whether the person was under the influence of cannabis or hemp concentrate derived product.

(c) 1. If a person under arrest refuses to submit to a chemical test under the provisions of Section 11-501.1, evidence of refusal shall be admissible in any civil or criminal action or proceeding arising out of acts alleged to have been committed while the person under the influence of alcohol, other drug or drugs, or intoxicating compound or compounds, or any combination thereof was driving or in actual physical control of a motor vehicle.

2. Notwithstanding any ability to refuse under this Code to submit to these tests or any ability to revoke the implied consent to these tests, if a law enforcement officer has probable cause to believe that a motor vehicle driven by or in actual physical control of a person under the influence of alcohol, other drug or drugs, or intoxicating compound or compounds, or any combination thereof has caused the death or personal injury to another, the law enforcement officer shall request, and that person shall submit, upon the request of a law enforcement officer, to a chemical test or tests of his or her blood, breath, other bodily substance, or urine for the purpose of determining the alcohol content thereof or the presence of any other drug or combination of both.

This provision does not affect the applicability of or imposition of driver's license sanctions under Section 11-501.1 of this Code.

3. For purposes of this Section, a personal injury includes any Type A injury as indicated on the traffic crash report completed by a law enforcement officer that requires immediate professional attention in either a doctor's office or a medical facility. A Type A injury includes severe bleeding wounds, distorted extremities, and injuries that require the injured party to be carried from the scene.

(d) If a person refuses validated roadside chemical tests or standardized field sobriety tests under Section 11-501.9 of this Code, evidence of refusal shall be admissible in any civil or criminal action or proceeding arising out of acts committed while the person was driving or in actual physical control of a vehicle and alleged to have been impaired by the use of cannabis or hemp concentrate derived products.

(e) Illinois State Police compliance with the changes in this amendatory Act of the 99th General Assembly concerning testing of other bodily substances and tetrahydrocannabinol concentration by Illinois State Police laboratories is subject to appropriation and until the Illinois State Police adopt standards and completion validation. Any laboratories that test for the presence of cannabis or hemp concentrate derived products or other drugs under this Article, the Snowmobile Registration and Safety Act, or the Boat Registration and Safety Act must comply with ISO/IEC 17025:2005.

(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21; 102-982, eff. 7-1-23.)

(625 ILCS 5/11-502.20 new)

Sec. 11-502.20. Possession of hemp concentrate derived products in a motor vehicle.

(a) No driver may use hemp concentrate derived products within the passenger area of any motor vehicle upon a highway in this State.

(b) No driver may possess hemp concentrate derived products within any area of any motor vehicle upon a highway in this State except in a secured, sealed or resealable, child-resistant hemp concentrate derived products container that is inaccessible.

(c) No passenger may possess hemp concentrate derived products within any passenger area of any motor vehicle upon a highway in this State except in a secured, sealed or resealable, child-resistant hemp concentrate derived products container that is inaccessible.

(d) Any person who knowingly violates subsection (a), (b), or (c) of this Section commits a Class A misdemeanor.

Section 800-55. The Juvenile Court Act of 1987 is amended by changing Section 5-401 as follows:

(705 ILCS 405/5-401)

Sec. 5-401. Arrest and taking into custody of a minor.

(1) A law enforcement officer may, without a warrant,

(a) arrest a minor whom the officer with probable cause believes to be a delinquent minor; or

(b) take into custody a minor who has been adjudged a ward of the court and has escaped from any commitment ordered by the court under this Act; or

(c) take into custody a minor whom the officer reasonably believes has violated the conditions of probation or supervision ordered by the court.

(2) Whenever a petition has been filed under Section 5-520 and the court finds that the conduct and behavior of the minor may endanger the health, person, welfare, or property of the minor or others or that the circumstances of the minor's home environment may endanger the minor's health, person, welfare or property, a warrant may be issued immediately to take the minor into custody.

(3) Except for minors accused of violation of an order of the court, any minor accused of any act under federal or State law, or a municipal or county ordinance that would not be illegal if committed by an adult, cannot be placed in a jail, municipal lockup, detention center, or secure correctional facility. Juveniles accused with underage consumption and underage possession of alcohol, or cannabis, or hemp concentrate derived products cannot be placed in a jail, municipal lockup, detention center, or correctional facility.

(Source: P.A. 103-22, eff. 8-8-23.)

Section 800-60. The Cannabis Control Act is amended by changing Sections 3, 4, 5, and 5.1 as follows:

(720 ILCS 550/3) (from Ch. 56 1/2, par. 703)

Sec. 3. As used in this Act, unless the context otherwise requires:

(a) "Cannabis" includes marihuana, hashish and other substances which are identified as including any parts of the plant Cannabis Sativa, whether growing or not; the seeds thereof, the resin extracted from any part of such plant; and any compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds, or resin, including tetrahydrocannabinol (THC) and all other cannabinol derivatives, including its naturally occurring or synthetically produced ingredients, whether produced directly or indirectly by extraction, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis; but shall not include the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil or cake, or the sterilized seed of such plant which is incapable of germination.

(b) "Casual delivery" means the delivery of not more than 10 grams of any substance containing cannabis without consideration.

(c) "Department" means the Illinois Department of Human Services (as successor to the Department of Alcoholism and Substance Abuse) or its successor agency.

(d) "Deliver" or "delivery" means the actual, constructive or attempted transfer of possession of cannabis, with or without consideration, whether or not there is an agency relationship.

(e) (Blank).

(e-5) "Hemp concentrate derived products" means a product intended for human consumption that is derived from hemp concentrate and meets the labeling and potency requirements set forth in this Act of delta-8-tetrahydrocannabinol or delta-9-tetrahydrocannabinol derived from any naturally occurring cannabinoids found in hemp.

(f) "Director" means the Director of the Illinois State Police or his designated agent.

(g) "Local authorities" means a duly organized State, county, or municipal peace unit or police force.

(h) "Manufacture" means the production, preparation, propagation, compounding, conversion or processing of cannabis, either directly or indirectly, by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of cannabis or labeling of its container, except that this term does not include the preparation, compounding, packaging, or labeling of cannabis as an incident to lawful research, teaching, or chemical analysis and not for sale.

(i) "Person" means any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other entity.

(j) "Produce" or "production" means planting, cultivating, tending or harvesting.

(k) "State" includes the State of Illinois and any state, district, commonwealth, territory, insular possession thereof, and any area subject to the legal authority of the United States of America.

(l) "Subsequent offense" means an offense under this Act, the offender of which, prior to his conviction of the offense, has at any time been convicted under this Act or under any laws of the United States or of any state relating to cannabis, or any controlled substance as defined in the Illinois Controlled Substances Act.

(Source: P.A. 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)

(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)

Sec. 4. Except as otherwise provided in the Cannabis Regulation and Tax Act, and the Industrial Hemp Act, and the Hemp Cannabinoid Products Act, it is unlawful for any person knowingly to possess cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products.

Any person who violates this Section with respect to:

(a) not more than 10 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a civil law violation punishable by a minimum fine of $100 and a maximum fine of $200. The proceeds of the fine shall be payable to the clerk of the circuit court. Within 30 days after the deposit of the fine, the clerk shall distribute the proceeds of the fine as follows:

(1) $10 of the fine to the circuit clerk and $10 of the fine to the law enforcement agency that issued the citation; the proceeds of each $10 fine distributed to the circuit clerk and each $10 fine distributed to the law enforcement agency that issued the citation for the violation shall be used to defer the cost of automatic expungements under paragraph (2.5) of subsection (a) of Section 5.2 of the Criminal Identification Act;

(2) $15 to the county to fund drug addiction services;

(3) $10 to the Office of the State's Attorneys Appellate Prosecutor for use in training programs;

(4) $10 to the State's Attorney; and

(5) any remainder of the fine to the law enforcement agency that issued the citation for the violation.

With respect to funds designated for the Illinois State Police, the moneys shall be remitted by the circuit court clerk to the Illinois State Police within one month after receipt for deposit into the State Police Operations Assistance Fund. With respect to funds designated for the Department of Natural Resources, the Department of Natural Resources shall deposit the moneys into the Conservation Police Operations Assistance Fund;

(b) more than 10 grams but not more than 30 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class B misdemeanor;

(c) more than 30 grams but not more than 100 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class A misdemeanor; provided, that if any offense under this subsection (c) is a subsequent offense, the offender shall be guilty of a Class 4 felony;

(d) more than 100 grams but not more than 500 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 4 felony; provided that if any offense under this subsection (d) is a subsequent offense, the offender shall be guilty of a Class 3 felony;

(e) more than 500 grams but not more than 2,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 3 felony;

(f) more than 2,000 grams but not more than 5,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 2 felony;

(g) more than 5,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 1 felony.

Fines and assessments, such as fees or administrative costs, authorized under this Section shall not be ordered or imposed against a minor subject to Article III, IV, or V of the Juvenile Court Act of 1987, or a minor under the age of 18 transferred to adult court or excluded from juvenile court jurisdiction under Article V of the Juvenile Court Act of 1987, or the minor's parent, guardian, or legal custodian.

(Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.)

(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)

Sec. 5. Except as otherwise provided in the Cannabis Regulation and Tax Act, and the Industrial Hemp Act, and the Hemp Cannabinoid Products Act, it is unlawful for any person knowingly to manufacture, deliver, or possess with intent to deliver, or manufacture, cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products. Any person who violates this Section with respect to:

(a) not more than 2.5 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class B misdemeanor;

(b) more than 2.5 grams but not more than 10 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class A misdemeanor;

(c) more than 10 grams but not more than 30 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 4 felony;

(d) more than 30 grams but not more than 500 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 3 felony for which a fine not to exceed $50,000 may be imposed;

(e) more than 500 grams but not more than 2,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 2 felony for which a fine not to exceed $100,000 may be imposed;

(f) more than 2,000 grams but not more than 5,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class 1 felony for which a fine not to exceed $150,000 may be imposed;

(g) more than 5,000 grams of any substance containing cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein is guilty of a Class X felony for which a fine not to exceed $200,000 may be imposed.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)

Sec. 5.1. Cannabis or hemp cannabinoid trafficking.

(a) Except for purposes authorized by this Act, the Industrial Hemp Act, or the Cannabis Regulation and Tax Act, or the Hemp Cannabinoid Products Act, any person who knowingly brings or causes to be brought into this State for the purpose of manufacture or delivery or with the intent to manufacture or deliver 2,500 grams or more of cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein in this State or any other state or country is guilty of cannabis or hemp cannabinoid trafficking.

(b) A person convicted of cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products trafficking shall be sentenced to a term of imprisonment not less than twice the minimum term and fined an amount as authorized by subsection (f) or (g) of Section 5 of this Act, based upon the amount of cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein brought or caused to be brought into this State, and not more than twice the maximum term of imprisonment and fined twice the amount as authorized by subsection (f) or (g) of Section 5 of this Act, based upon the amount of cannabis, hemp concentrate, intermediate hemp products, or hemp concentrate derived products or any combination therein brought or caused to be brought into this State.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

Section 800-65. The Consumer Fraud and Deceptive Business Practices Act is amended by changing Section 2Z as follows:

(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)

Sec. 2Z. Violations of other Acts. Any person who knowingly violates the Automotive Repair Act, the Automotive Collision Repair Act, the Home Repair and Remodeling Act, the Dance Studio Act, the Physical Fitness Services Act, the Hearing Instrument Consumer Protection Act, the Illinois Union Label Act, the Installment Sales Contract Act, the Job Referral and Job Listing Services Consumer Protection Act, the Travel Promotion Consumer Protection Act, the Credit Services Organizations Act, the Automatic Telephone Dialers Act, the Pay-Per-Call Services Consumer Protection Act, the Telephone Solicitations Act, the Illinois Funeral or Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care Act, the Safe and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales Act, the High Risk Home Loan Act, the Payday Loan Reform Act, the Predatory Loan Prevention Act, the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the Internet Caller Identification Act, paragraph (6) of subsection (k) of Section 6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois Vehicle Code, Article 3 of the Residential Real Property Disclosure Act, the Automatic Contract Renewal Act, the Reverse Mortgage Act, Section 25 of the Youth Mental Health Protection Act, the Personal Information Protection Act, or the Student Online Personal Protection Act, or subsection (a) of Section 15-155 of the Cannabis Regulation and Tax Act commits an unlawful practice within the meaning of this Act.

(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18; 100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)

Section 800-70. The Right to Privacy in the Workplace Act is amended by changing Section 5 as follows:

(820 ILCS 55/5) (from Ch. 48, par. 2855)

Sec. 5. Discrimination for use of lawful products prohibited.

(a) Except as otherwise specifically provided by law, including Section 10-50 of the Cannabis Regulation and Tax Act the Hemp Cannabinoid Products Act, and except as provided in subsections (b) and (c) of this Section, it shall be unlawful for an employer to refuse to hire or to discharge any individual, or otherwise disadvantage any individual, with respect to compensation, terms, conditions or privileges of employment because the individual uses lawful products off the premises of the employer during nonworking and non-call hours. As used in this Section, "lawful products" means products that are legal under state law. For purposes of this Section, an employee is deemed on-call when the employee is scheduled with at least 24 hours' notice by his or her employer to be on standby or otherwise responsible for performing tasks related to his or her employment either at the employer's premises or other previously designated location by his or her employer or supervisor to perform a work-related task.

(b) This Section does not apply to any employer that is a non-profit organization that, as one of its primary purposes or objectives, discourages the use of one or more lawful products by the general public. This Section does not apply to the use of those lawful products which impairs an employee's ability to perform the employee's assigned duties.

(c) It is not a violation of this Section for an employer to offer, impose or have in effect a health, disability or life insurance policy that makes distinctions between employees for the type of coverage or the price of coverage based upon the employees' use of lawful products provided that:

(1) differential premium rates charged employees reflect a differential cost to the employer; and

(2) employers provide employees with a statement delineating the differential rates used by insurance carriers.

(Source: P.A. 101-27, eff. 6-25-19.)

Article 999.

Effective Date

Section 999-99. Effective date. This Act takes effect upon becoming law.".