104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5582
 
Introduced 2/13/2026, by Rep. Sonya M. Harper
 
SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/7-20
    Amends the Cannabis Regulation and Tax Act. Requires waiver of 50% of any nonrefundable license application fees, any nonrefundable fees associated with purchasing a license to operate a cannabis business establishment, and any surety bond or other financial requirements for a Social Equity Applicant who promises to open and operate the business in a Disproportionately Impacted Area and who promises to hire and employ at least 40% of all employees and contracted labor from persons residing in or headquartered in the Disproportionately Impacted Area where the business will be located. Provides that a breach of a promise by an applicant under those provisions shall constitute a violation of the Act. Provides that fee waivers or other requirement waivers under 2 different specified provisions relating to Social Equity Applicants may not be cumulative, and an applicant who qualifies under both may only choose one.


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A BILL FOR
 
HB5582LRB104 18243 BDA 31682 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Cannabis Regulation and Tax Act is amended 
5by changing Section 7-20 as follows:
 
6    (410 ILCS 705/7-20)
7    Sec. 7-20. Fee waivers. 
8    (a) For Social Equity Applicants, the Department of 
9Financial and Professional Regulation and the Department of 
10Agriculture shall waive 50% of any nonrefundable license 
11application fees, any nonrefundable fees associated with 
12purchasing a license to operate a cannabis business 
13establishment, and any surety bond or other financial 
14requirements, provided a Social Equity Applicant meets the 
15following qualifications at the time the payment is due:
16        (1) the applicant, including all individuals and 
17    entities with 10% or greater ownership and all parent 
18    companies, subsidiaries, and affiliates, has less than a 
19    total of $750,000 of income in the previous calendar year; 
20    and 
21        (2) the applicant, including all individuals and 
22    entities with 10% or greater ownership and all parent 
23    companies, subsidiaries, and affiliates, has no more than 
 
 
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1    2 other licenses for cannabis business establishments in 
2    the State of Illinois. 
3    (a-5) For Social Equity Applicants, the Department of 
4Financial and Professional Regulation and the Department of 
5Agriculture shall waive 50% of any nonrefundable license 
6application fees, any nonrefundable fees associated with 
7purchasing a license to operate a cannabis business 
8establishment, and any surety bond or other financial 
9requirements, if the Social Equity Applicant meets the 
10following qualifications at the time the payment is due:
11        (1) the applicant promises to open and operate the 
12    business in a Disproportionately Impacted Area; and
13        (2) the applicant promises to hire and employ at least 
14    40% of all employees and contracted labor from persons 
15    residing in or headquartered in the Disproportionately 
16    Impacted Area where the business will be located.
17    A breach of a promise by an applicant under this 
18subsection shall constitute a violation of this Act.
19    (b) The Department of Financial and Professional 
20Regulation and the Department of Agriculture may require 
21Social Equity Applicants to attest that they meet the 
22requirements for a fee waiver as provided in subsection (a) or 
23(a-5) and to provide evidence of annual total income in the 
24previous calendar year or any other evidence or covenant 
25required. Fee waivers or other requirement waivers under 
26subsections (a) and (a-5) may not be cumulative, and an 
 
 
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1applicant who qualifies both under subsections (a) and (a-5) 
2may only choose one. 
3    (c) If the Department of Financial and Professional 
4Regulation or the Department of Agriculture determines that an 
5applicant who applied as a Social Equity Applicant is not 
6eligible for such status, the applicant shall be provided an 
7additional 10 days to provide alternative evidence that he or 
8she qualifies as a Social Equity Applicant. Alternatively, the 
9applicant may pay the remainder of the waived fee and be 
10considered as a non-Social Equity Applicant. If the applicant 
11cannot do either, then the Departments may keep the initial 
12application fee and the application shall not be graded.
13(Source: P.A. 101-27, eff. 6-25-19.)